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HomeMy WebLinkAboutRDA Min 1980-09-22 ~40 9-22-80 Seal Beach, California September 22, 1980 The Redevelopment Agency of the City of Seal Beach met in regular session at 6:47 p.m. with Chairman Seitz calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Chairman Seitz Agency Members Kredell, Laszlo, Supple, Vanderstaay I Absent: None Also present: Mr. Courtemarche, Executive Director Mr. Coughlan, City Attorney Mr. Parrington, Legal Counsel Mrs. Yeo, Secretary APPROVAL OF MINUTES Kredell moved, second by Vanderstaay, to approve the minutes of the regular adjourned meeting of September 8, 1980 as presented. AYES: NOES: Kredell, Laszlo, Seitz, Supple, Vanderstaay None Motion carried REPORT - STATE LANDS COMMISSION - MARINA PALACE SITE The Executive Director stated that as requested by the Agency he had contacted the State Lands Commission regarding the proposed development of the Marina Palace site located at First Street and Pacific Coast Highway. Mr. Courtemarche reported he was informed the lease had been provided to the potential lessors of the site and that the State Lands Canmission feels they are bound by the proposed agreement. The Executive Director reported further that the developer has submItted plans for the I proposed recreation complex to the city for preliminary review. Mr. Courtemarche explained that should the proposed development not go forth, it ~ould be necessary for the State Lands Commission to go through the competitive bid process to acquire another tenant for the parcel and noted some interest has been expressed by other developers to propose plans for the site. The Agency briefly discussed legal Implications should the city not approve the project as proposed, and potential revenue from this recreation complex versus another use. At the request of Mr. Laszlo, the Agency reviewed a rendering of another proposal for development of the site, and the Planning Director explained the proposal was only a concept and not a formal development plan or an application. Agency member Seitz suggested that the State Lands Commission be requested to reconsider use of the parcel. Mr. Alan Scott, member of the State Lands Commission staff, reviewed the background of the proposed racquetball facility, explained the procedures and time spent in selecting a tenant, that the project has been redesigned by the proposed developer, parking has been revised, difficulties in obtaining access rights to the property, and explained the lease is for a period of twenty years with two options to renew. The Planning Director explained the legal process for review and ultimate approval of any plan for development of the site, and reviewed previous Planning Commission action relating to development of this site and subsequent withdrawal of the application by the developer. Agency Member Supple inquired if the development agreement is an enforceable contract at this time. The City Attorney I explained that it was his impression the State Lands Commission feels they have an enforceable contract and moral obligation to the potential developer of the recreation complex and suggested the Agency may wish to express the city's concerns directly to the Commlttion. Mr. Supple stated he felt continued discussion would be of no value if the Commission' developer agreement has been finalized. Agency Member Seitz recommended that a letter be forwarded to the State Lands Commission expressing the city's concern regarding the proposed development and requesting Commission reconsideration of another project for the site. Mr. Scott 9-22-80 4l~1_ I requested that a copy of any communication from the city also be for- warded to Mr. Wm. Northrop, Executive Officer for the Commission. Mr. Bruce Conn, potential developer of the site, explained in detail the facilities to be available in the proposed recreation complex. Mr. Conn stated a feasibility study had been prepared for the development and offered to provide copies of the study for information of the Agency. Agency Member Laszlo spoke regarding city authority in selection of a development, requested a copy of the proposed plans for review, and recommended the city seek a greater revenue producing project. It was the order of the Chair with consent of the Agency Members, that the City Attorney be directed to draft a letter to the State Lands Commission for signature of the Chairman, expressing the city's concerns regarding the proposed development of a recreation complex, request delay of the final execution of the leaseand renewed discussions between State Lands Commission and the city regarding this site development. Seitz moved, second by Laszlo, to adjourn the Redevelopment Agency meeting at this time to call the City Council meeting to order. AYES: NOES: Kredell, Laszlo, Seitz, Supple, Vander.staay None Motion carried The meeting adjourned at 7:51 p.m. The meeting reconvened at 8:03 p.m. with Chairman Seitz calling the meeting to order. I REPORT - SPECIAL AUDIT - SEAL BEACH TRAILER PARK The Executive Director presented the staff report regarding the special audit of the Seal Beach Trailer Park, stated that the audit had been reviewed, that all conditions of the audit agreement had been met and that members of the auditing firm were present to answer any questions from the Agency. Agency Member Supple asked the source of the estimated construction costs. The Executive Director reported the estimated costs were provided by the developer and that the award of construction contracts were the sole responsibility of the developer. Mr. Parrington, Legal Counsel, explained how redevelopment of the Trailer Park was formulated, reviewed provisions of the participation and disposition agreements and the procedures followed for the Trailer Park land acquisition. Mr. Parrington clarified that by agreement, all construction and improvements to the Trailer Park were to be performed by the developer, that the Agency was responsible for relocation and inspections. Lengthy discussion followed regarding Trailer Park rental schedules with Legal Counsel explaining the current Park rentals were established by a formula based on estimated construction costs and approved by agreement prior to commencement of the Trailer Park development. Mr. Parrington verified that a request has been received requesting the Agency consider revision of the rental schedules based on actual costs. Mr. Bradford, partner of the auditing firm Linford, Jensen, Bradford and Company, presented a review of the completed audit stating that all accounts and records were properly accounted for and that nothing emerged during the investigation that would qualify the audit. Agency Member Kredell requested a copy of the original cost estimates provided by the developer to the city. It was the consensus of the Agency to postpone this discussion until after an Executive Session. I EXECUTIVE SESSION It was the order of the Chair with consent of the Agency to recess to Executive Session at 8:44 p.m. The meeting reconvened at 9:30 p.m. with Chairman Seitz callIng the meeting to order and reporting that the Agency had given direction to the Executive Director to pursue certain actions relating to the purchase of the Department of Water and Power property. REPORT - SPECIAL AUDIT - SEAL BEACH TRAILER PARK - CONTINUED Agency Member Laszlo requested the identity of those parties involved in Urban West Communities during the Trailer Park development. Mr. Bradford reported that information was not available to their firm during the course of the audit, and stated confirmation of interests 442 9-22-BO were included in the audit from Mr. Dawson and Urban West as Exhibits 12 and 13. Mr. Parrington stated he may be able to provide that information to the Agency pending discussion with legal counsel for Riverbeach Associates and Urban West. A member of the audience spoke regarding principal interests in the Trailer Park during redevelopment, payment of relocation costs, questioned a commission cost recorded in the audit, and stated he had been informed Chevron Oil had paid the entire cost of their pipeline removal. Mr. Bradford stated relocation costs reflected in the audit had been repaid to the developer by tbe Agency, explained that contract confirmations had been sent to all contractors and reported five responses had been received. Discussion continued. Chairman Seitz expressed appreciation to the auditors for attending this meeting. Agency Member Kredell asked if Legal Counsel would advise the Agency to adjust the rental scale at this time based on the actual construction costs. Mr. Parrington recommended that the Agency consider rental adjustments after receipt of responses from the remaining contractors and after verification of pipeline removal costs from Chevron Oil and again verified that provision for rental schedule adjustments are contained within the participation/ disposition agreements previously approved by the Agency. I ORAL COMMUNICATIONS Chairman Seitz declared or,al communications open. Mr. Scheele, 25 Cottonwood Lane, spoke regarding current rental schedules. Mr. Parrington explained that the present rent structure is based on original estimated construction costs and actual financing costs, and do not reflect actual construction costs verified by this audit. Chairman Seitz asked that the Agency be provided a report showing the formulation of current rentals. Mr. Jeffers, B Cottonwood Lane, requested clarification of financing costs and asked if points and interests had been examined by the audit. Mr. Parrington affirmed that this item had been reviewed. Mr. Jeffers also stated he felt rents should be based on the size of the trailer lot. The Agency discussed eligibility for rental subsidies in the Park. There were no other oral communications; Chairman Seitz declared oral communi- cations closed. I ADJOURNMENT Laszlo moved, second by Kredell, to adjourn until Monday, October 13, 19BO at 6:45 p.m. AYES: NOES: Kredell, Laszlo, Seitz, Supple, Vanderstaay None Motion carried The meeting adjourned at 10:23 p.m. ~ ~ I