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HomeMy WebLinkAboutRDA Min 1986-03-10 3-10-86 Seal Beach, California March 10, 1986 The Redevelopment Agency of the City of Seal Beach met in special session at 6:45 p.m. with Chairman Brownell calling the meeting to order with the Salute to the Flag. I Chairman Brownell read the Notice of Special Meeting in full as follows: "Oscar Brownell, 13261 southport Lane, 184-F, Seal Beach Edna Wilson, 13260 st. Andrews Drive, 255-1, Seal Beach Frank Clift, 4489 Dogwood Avenue, Seal Beach victor Grgas, 216 - 15th street, Seal Beach Joyce Risner, 845 Driftwood Avenue, Seal Beach NOTICE IS HEREBY GIVEN that Oscar Brownell as presiding officer of the Redevelopment Agency of the City of Seal Beach hereby calls and gives notice of a special meeting of the Redevelopment Agency of the City of Seal Beach to be held and convened at the hour of 6:45 p.m., Monday, March 10, 1986 in Cit Council Chambers, 211 - 8th street, Seal Beac , Call ornla, or t e purpose 0 conSl er ng: Approval of Revised Subordination Agreement between the Redevelopment Agency of the City of Seal Beach and Seal Beach Partners, Ltd. I and to take any other measures or actions that may be deemed necessary relating to this matter. DATED THIS 5th day of March, 1986. (signed) Oscar Brownell, Chairman Seal Beach Redevelopment Agency (signed) Joanne M. Yeo, Secretary Seal Beach Redevelopment Agency" ROLL CALL present: Chairman Brownell Agency Members Clift, Risner, Wilson Absent: Agency Member Grgas Mr. Grgas arrived at 6:57 p.m. Also present: Mr. Joseph, Acting Executive Director Mr. parrington, Special Legal Counsel Mrs. Yeo, Secretary I WAIVER OF FULL READING Wilson moved, second by Clift, to waive the reading in full of all resolutions and that consent to the waiver of reading shall be deemed to be given by all Agency members after reading of the title unless specific request is made at that time for the reading of such resolution. AYES: NOES: ABSENT: Brownell, Clift, Risner, Wilson None Grgas Motion carried 3-10-86 PROPOSED RESOLUTION NUMBER 86-2 - SUBORDINATION AGREEMENT and AGREEMENT FOR LOAN - SEAL BEACH TRAILER PARK proposed Resolution Number 86-2 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, CALIFORNIA, APPROVING A SUBORDINATION AGREEMENT AND AN AGREEMENT FOR LOAN FOR THE SEAL BEACH TRAILER PARK." By unanimous consent, full reading of proposed Resolution Number 86-2 was waived. The Acting Executive I Director presented the staff report and reviewed the background of previous Agency actions relating to the refinancing of the loan for purchase of the Trailer park. Mr. Joseph reported that upon review of the previously approved Subordination Agreement by a Coast Savings & Loan staff attorney, Coast is now requiring that the Subordination Agreement provide that in the event of a default by the borrower, none of the rent control provisions would bind either Coast or any successor in interest through Coast. He stated this to be a substantial change from the previously approved Subordination Agreement which only permitted increases in the rental charged in an amount sufficient to cover the debt service on the loan or any refinancing upon the sale to a third party. He pointed out however, that rent control would remain in tact if the loan is not in default. Members of the Agency expressed concern that the interest of the residents of the Trailer park are not being taken into consideration. Mrs. Risner stated she would like to see a more in depth review of this matter, suggesting a meeting between the City Attorney, Mr. stepanicich, Special Legal Counsel, Mr. parrington, Mr. Dawson and the City Manager to consider the impact on the residents of the Trailer park, she also questioned whether or not the original financing of the Trailer Park improvements would prohibit lifting the rent controls in any event. Mr. parrington I responded that as proposed, the agreement contains no provision for rent control, however there are restrictions in the agreement as to maintenance of the mobile home and trailer park for low and moderate income persons, that requirement contained in the previously approved Declaration of Covenants, Restrictions and Conditions. He clarified that the income qualifications for park residents would remain under the revised agreement, however the rents that could be charged to those persons would not be restricted in the case of a default where Coast or a third party would acquire the park, and that party would be free to charge market rents even though the only persons to whom he could rent would be in the low and moderate income category. In response to Mrs. Risner's question regarding a previous conflict of interest by the City's legal firm in dealing with Trai.ler Park matters, the City Attorney explained that the conflict stemmed from the representation of a partner of Mr. Dawson's, and stated he was uncertain whether or not an interest in the park by that individual continues to exist. Mrs. Risner suggested that this matter be held over pending a discussion between Special Legal Counsel, in conjunction with the city Attorney, and the Coast attorney, to arrive at a resolution of this matter that would allow the City to retain its rent control rights, noting the support for the purchase of the park by the tenants which I will then allow long term leases of the trailer spaces. Chairman Brownell recalled the intent of the Trailer Park development to benefit low and moderate income tenants, with controlled rents, and any increase of those rents based upon a specific formula and subject to Agency approval, and stated he felt it would be out of order for the Agency to direct legal counsel to negotiate this matter with Coast to the benefit of the loan recipient. 3-10-86 Ccuncilman Grgas arrived at 6:57 p.m. I Mr. parrington stated that the negotiations with Mr. Dawson, with input from his office, previously provided a reasonable compromise, which was that the lender, in the event of a forclosure and resale of the property, could pass on, in the form of rent, the extraordinary cost of acquiring the property and the cost of a new loan obtained by the buyer of the park, which he stated he felt was a fair and equitable formula. He explained that Coast's loan officers had previously approved this provision, the Coast attorneys in turn saying that all rent control provisions are required to be removed in the'event of a default in order to obtain approval of the loan. Mr. parrington stated he would inform Coast's attorneys that they must communicate with the Agency on this matter. Brownell moved, second by Clift, to hold this item over pending further discussion between Special Legal Counsel and Coast Savings and Loan, the result of those discussions to be presented to the Agency. AYES: NOES: Brownell, Clift, Grgas, Risner, wilson None Motion carried ORAL COMMUNICATIONS There were no Oral Communications. ADJOURNMENT Wilson moved, second by Clift, to adjourn the meeting at 7:01 p.m. I AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried ~-- .~4J-~-~-I- airman ~ I