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HomeMy WebLinkAboutRDA Min 1981-07-14 7-13-81 / 7-14-81 Seal Beach, California July 13, 1981 The Seal. Beach Redevelopment Agency regular adjourned rneeting of July 13, 1981 is hereby cancelled due to lack of quorum and adjourned to July 14, 1981 at 6:45 p.m. I Seal Beach, California July 14, 1981 The Redevelopment Agency of the City of Seal Beach met in regular adjourned session at 6:45 p.m. with Chairman Supple calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Chairman Supple Agency Members Kredell, Laszlo, Seitz Absent: Agency Member Vanderstaay (Mrs. Vanderstaay arrived at 6:48 p.m.) Also present: Mr. Parker, Executive Director Mr. Coughlan, City Attorney Mr. Parrington, Special Legal Counsel Mr. Sorensen, Special Legal Counsel Mrs. Yeo, Secretary I APPROVAL OF MINUTES Laszlo moved, second by Kredell, to approve the minutes of the regular meeting of June 22, 1981 as presented. AYES: NOES: ABSENT: Kredell, Laszlo, Seitz, Supple None Vanderstaay Motion carried Councllmember Vanderstaay arrived at 6:48 p.m. AGENDA AMENDED Laszlo moved, second by Vanderstaay, to amend the agenda to include a Closed Session to discuss matters of litigation. AYES: HOES: Kredell, Laszlo, Seitz, Supple, Vanderstaay None Motion carried I it was the order of the Chair with consent of the Agency to adjourn to Closed Session at 6:50 p.m. The Agency recessed from their Closed Session at 8:45 p.m. to convene the City Council meeting. At 10:13 p.m. the Agency reconvened in Closed Session and reconvened in public session at 10:29 p.m. with 'Chairman ~upple calling the meeting to order. RESOLUTION NUMBER 81-8 - SETTLEMENT AGREEMENT FOR PENDING LITIGATION - AMENDED PARTICIPATiON AND DISPOSITiON AGREEMENT - TRAILER PARK Resolution Number 81-8 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, CALIFORNiA, APPROViNG SETTLEMENT AGREEMENT FOR PENDING LITiGATION AND APPROVING AN AMENDED PARTICIPATiON AND DISPOSITiON AGREEMENT FOR .THE SEAL BEACH TRAILER PARK." Executive Director, Mr. Parker, reviewed the items presented for Agency consideration resulting from extensive negotiations 7-14-81 between the Agency and Seal Beach Associates to resolve differences relating to the Trailer Park development, the Townhomes Project and pending litigation on the Department of Water and Power property. Mr. Parker summarized the proposed Settlement Agreement between Seal Beach Associates, Riverbeach Associates, Seal Beach Partners, Ltd. and the Redevelopment Agency as follows: Provision for the Agency to Initiate and Implement S.B. 99 mortgage revenue bonds for the ~Iverbeach Town- homes Project, an amended Participation and Disposition Agreement which includes all provisions of the original agreement and amendments thereto, raises the cost allocation limit of the Trailer Park project to $1,500,000 and increases and base rent formula to $25,168 which accurately reflects the current monthly rental charge, but does not increase rental payments for Park residents, provides for cost formula/rent adjustment based on Grand Jury determination, recognizes the actual number of spaces within the Trailer Park to be 126, requires Mr. Oawson to offer for sale the Trailer Park with a qualified broker for the duration of said agreement or until April 1982 for a net price of $2,025,569, provides for the Townhomes Project to be constructed no later than March I, 1982 and reimbursement by Riverbeach Associates to the Agency of the Oifference between $165,000 tax increment and the tax actually received should construction not be completed by said date, and requires that Seal Beach Associates dismiss the lawsuit pending against the Agency on the Oepartment of Water and Power property. The Executive Oirector stated further that it is assumed the Townhome construction deadline date will be extended for six months from the time the bonds are issued and reported Riverbeach Associates has agreed to place a letter of credit or other instrument in effect that will guarantee payment of the $165,000 for a period of three years. Mr. Parrington, Special Legal Counsel to the Agency, read for the record amendments to the Settlement Agreement between Seal Beach Associates, Riverbeach Associates and the Redevelopment Agency of the City of Seal Beach as follows: Second sentence of Section 2, paragraph 2, delete the words "bearing an interest rate which wi 11 provide a mortgage rate of 13% or less", said sentence to read "In the event bonds are unable to be sold, issued or delivered on or before October 15, 1981, then this Agreement and the time for sale, issuance or delivery of said bonds shall be extended for 180 days from October 15, 1981." That a new sentence be added to the end of that paragraph to read "If in the opinion of Miller and Schroeder Municipals, Inc., the Agency and the City Council of the City of Seal Beach have taken all actions (including the adoption of all resolutions and the execution of all documents) required for the sale, issuance and delivery of such bonds, regardless of whether such bonds are sold, issued or delivered, or, in the opinion of Miller and Schroeder Municipals, Inc., the bonds cannot be sold, issued, and delivered by April 15, 1982, regardless of Agency or City Council action, then Miller and Schroeder Municipals, Inc., shall furnish a written statement to the Agency and to Royal M. Sorensen of such fact." In the first sentence of the following paragraph, delete the words "Seal Beach Associates" and Seal Beach Partners, Ltd." and change the word "agree" to "agrees"; in the second sentence delete "Seal Beach Associates" and "Seal Beach Partners, Ltd.", and add the words "....and the bonds have been so sold, Issued, and delivered..."; a sentence to be added to the end of that paragraph to read "Rlverbeach Associates shall secure its obligation hereunder with a set-aside letter from its construction lender or a letter of credit in an amount of $490,000.00, for a period of not to exceed three (3) years, to be reduced by such amounts as the developer actually pays hereunder to the Agency and by the amount the Agency receives from tax increment revenue from the Project." The fol lowing words to be added to Section 2 of the Agreement to read "...provided that II 3.03 and 3.04 of the Amended Participation and Disposition Agreement shall not apply and shall be of no force and effect if the bonds are sold, issued and delivered by Apri 1 15, 1982. In no event shall the penalty of 113.03 and 3.04 apply if the penalty under paragraph 1 above is imposed." The last sentence of Section 3, delete the words "for a period of two years from the date hereof", and add ". ..unti 1 Apri 1 15, 1982." Section 6, delete the words ". ..and shall be held by him unti 1 the sale of the bonds occurs" and adding "...and shall be held by him until either 1) the sale, I I I 7-14-81 I issuance and delivery of the bonds occurs or 2) Miller and Schroeder Municipals, Inc. issues a written statement as provided in paragraph 1 above." The first sentence of Section 7 be amended to read "Upon the sale, issuance and delivery of the bonds, or upon receipt of such written statement from Miller and Schroeder Municipals, Inc., referred to in paragraph 1 above, the escrow holder, Royal M. Sorensen, shall do the following:" and that Section 8 be amended to read "In the event the bonds are not sold, issued and delivered by April 15, 1982, or Miller and Schroeder Municipals, Inc. does not deliver its written statement as referred to in paragraph I above, this Agreement shall be null and void and none of the documents executed pursuant to this agreement shall be of any force or effect." Mr. Parrington recommended that an acknowledgement be added stating that the City of Seal Beach accepts and agrees to said Agreement. Mr. Parrington continued, setting forth for the record, changes to the Amended Participation and Disposition Agreement as follows: All reference to any cost of living increase on the return on Investment is deleted from Section 2.06, paragraph 3; Section 2.06, paragraph 4, relating to permanent financing is hereby amended to read "Permanent financing has been obtained for the Trailer Park, the monthly rental shall be adjusted to reflect any increase or decrease in monthly debt service, since permanent financing is a variable Interest rate loan. The monthly rental shall be increased or decreased to reflect any increase or decrease in the monthly debt service."; the last sentence of Section 2.10 be amended to read "...and the Agency has issued revenue bonds for the Condominium Parcel or said bonds have not been issued by April 15, 1982."; Sections 3.03 and 3.04 be amended to include the statement "subject to the terms of the Settlement Agreement referred to previously"; and that all reference to "plus return on investment" be deleted from Section 2.02(3) of Exhibit F. Mr. Parrington stated all of the amend- ments to the Agreement and the Participation and Disposition Agreement had been worked out with Agency's Special Council, Royal M. Sorensen, that the documents have been executed by the developer, Riverbeach Associates and approved by Seal Beach Associates and Seal Beach Partners, Ltd., and recommended approval of the documents by the Agency and the City Counci 1. I Seltz moved, second by Laszlo, to waive further reading and adopt Resolution Number 81-8 as amended. Members of the audience expressed their views on this item; Agency discussion followed. Vote on the motion to adopt Resolution Number 81-8 as amended: AYES: NOES: Laszlo, Seitz, Supple Kredell, Vanderstaay Motion carried As requested by Special Legal Counsel, Mr. Sorensen, Seitz moved, second by Vanderstaay, to approve the mutual Release, Agreement Exhibit B, and authorize the Executive Director to execute the Release on behalf of the Agency. AYES: NOES: Laszlo, Seltz, Supple, Vanderstaay Kredell Motion carried I. RESOLUTION NUMBER 81-9 - MILLER AND SCHROEDER MUNICIPALS, INC. - INVESTMENT BANKING SERVICES Reso'lution Number 81-9 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, CALIFORNIA, EMPLOYING THE FIRM OF MILLER & SCHROEDER MUNICIPALS, INC. TO PROVIDE INVESTMENT BANKING SERVICES." Mr. Parrington, Special Legal Counsel, stated the agreement with Miller & Schroeder is to be amended to include the following statement: "If in the opinion of Miller and Schroeder Municipals, Inc., the Agency and the City Council of the City of Seal Beach have taken all actions (including the adoption of all resolutions and execution of all documents) required for the sale, issuance and delivery of such bonds, regardless of whether such bonds are sold, issued or delivered, or, in the opinion of Miller & Schroeder Municipals, Inc., the bonds cannot be sold, issued and delivered by April 15, 1982, ]-14-81 regardless of Agency or City Council action, then Miller & Schroeder Municipals, Inc. shall furnish a written statement to the Agency and to Royal M. Sorensen of such fact." Seitz moved, second by Vanderstaay, to waive further reading, adopt Resolution Number 81-9 and the attached agreement with Miller & Schroeder Municipals, Inc. as amended. AYES: NOES: Laszlo, Seitz, Supple, Vanderstaay Krede 11 Motion carried I RESOLUTION NUMBER 81-10 - SETTING JOINT PUBLIC HEARING - AMENDMENT NO. 3 - REDEVELOPMENT PLAN Resolution Number 81-10 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH CONSENTING TO THE HOLDING OF A JOINT PUBLIC HEARING ON PROPOSED AMENDMENT NUMBER 3 TO THE REDEVELOPMENT PLAN FOR THE RIVERFRONT REDEVELOPMENT PROJECT." Laszlo moved, second by Vanderstaay, to adopt Resolution Number 81-10 as presented. AYES: NOES: Laszlo, Seitz, Supple, Vanderstaay Krede 11 Motion carri ed ORAL COMMUNICATIONS There were no oral communications from the audience. ADJOURNMENT Laszlo moved, p.m. second by Vanderstaay, to adjourn the meeting at 11:24 AYES: NOES: Kredell, Laszlo, Seitz, Supple, Vanderstaay None Motion carried ~~ I I