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HomeMy WebLinkAboutRDA Min 1986-12-08 12-:8. -86 Seal Beach, California December 8", 1986 The Redevelopment Agency of the City of Seal Beach met in regular adjourned session at 6:47 p.m. with Chairman Wilson calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Chairman wilson Agency Members Clift, Grgas, Hunt, Risner I Absent: None Also present: Mr. Nelson, Executive Director Mr. parrington, Special Legal Counsel Mr. Stepanicich, City Attorney Mr. Knight, Director of Development Services Mrs. Yeo, Secretary WAIVER OF FULL READING Clift moved, second by Grgas, 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: Clift, Grgas, Hunt, Risner, Wilson None Motion carried AGENCY MINUTES Mr. Grgas advised he was absent from the November 24th meeting, therefore would abstain from voting on this item. Clift moved, second by Risner, to approve the minutes of the November 24th regular meeting. I AYES: NOES: ABSTAIN: Clift, Hunt, Risner, Wilson None Grgas Motion carried RESOLUTION NUMBER 86-18 - AUTHORIZING APPROVAL - SECOND AMENDED/RESTATED DECLARATION OF COVENANTS - SEAL BEACH TRAILER PARK Revised Resolution Number 86-18 was presented to the Agency entitled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING APPROVAL OF A SECOND AMENDED AND RESTATED DECLARATION OF ESTABLISHMENT OF COVENANTS FOR THE SEAL BEACH TRAILER PARK." By unanimous consent, full reading of Resolution Number 86-18 was waived. The Executive Director presented the staff report relating to the proposed sale of the Seal Beach Trailer Park to a corporation formed by the Park tenants known as Seal Beach Trailer ParK, Inc. He explained that the Corporation is proposing to purchase the Park for $2,700,000, financed by a new loan with an institutional lender for $2,140,000 and a second loan from the State of California, Department I of Housing and Community Development, for $560,000. Mr. Nelson advised that the amended Resolution authorizes the Executive Director to sign certain documents and take any action necessary in order to complete the sale by December 31st, however should the sale not be completed by that date, revised documents would be resubmitted to the Agency for consideration. He clarified that should the sale not be consummated, the rent control provisions would not be lost, that action of the Agency to subordinate rent control 12-8-86 I would only take effect if the tenants purchase the property. Agency Member Risner stated she had been informed that rents would increase approximately fifty dollars per year, part of which would be due to increased taxes, noting that it has been rumored that there had been an assurance from the State that taxes would not be increased. She also inquired that if the Agency were to forego rent control, how that would affect any commitment that has been made or received from the State regarding special circumstances of the Park that now exist, such as second story cabanas. Mr. Parrington clarified that the current loan and lender are subject to the rent control provisions of the Covenants, that prior attempts to refinance the Trailer Park all required that the Agency agree that the rent control formula would be subject to the rights of the lender in the case of a foreclosure, the Agency, to date, having been unwilling to agree to that provision in the interest of the tenants. He explained that most all lending institutions will require the rent control waiver provision for consideration of a loan to purchase the Trailer Park, the question then being whether or not subordinating the rent control formula to the lender is an acceptable concept to the Agency/Council if the tenants do pursue purchase of the Park. Mr. Parrington stated he was uncertain as to any specific requirements that may be imposed by the State, however the City will require that all nonconforming uses be brought into compliance with the Code prior to finalization of the sale, and advised that the use restriction for maintenance of the property as a low and moderate income Trailer Park would also be subject to the rights of the lender. Mr. Parrington explained that the Trailer Park resident corporation proposed is known as a non-profit stock cooperative, allowing one vote per parcel or space, governed by an elected Board of Directors who would, in turn, select its officers who would be empowered to conduct transactions on behalf of the corporation. He clarified that it would be necessary for the entire Trailer Park corporation to approve the Amended Declaration before it would take effect. Mr. Scott wildman, 99 Welcome Lane, stated he was the incorporator for the Trailer Park, formed as a non-profit mutually benefitting corporation with the intent to purchase the Park from the existing owner and title holder and to maintain low income housing. After discussion and with unanimous agreement by the Agency, all reference in the Resolution to "Seal Beach Homeowners Association" was directed to be changed to "Seal Beach Trailer Park, Inc." Mr. Wildman stated there was no objection to the Resolution proposed authorizing the Executive Director to review and execute documents on behalf of the Agency provided that the sale takes place prior to December 31st, however reported the Corporation's intent to have any change to the Covenants reviewed by their legal counsel prior to any agreement on the part of the residents. Mr. Wildman reported that a survey had been conducted to determine the resident's opinion regarding the proposed purchase, one hundred fifteen of one hundred twenty-five surveys returned with one hundred ten in favor, five undecided, and no one opposed. He noted the $560,000 predevelopment loan from the State will be used as a downpayment, and to cover closing costs and attorney fees. In response to Agency Member Grgas, the Director of Development Services responded that the limited equity cooperative would be under a resale restriction, applied to each parcel (stock), and limited to a percentage increase per year. He also advised that there is a State requirement for a twenty percent low and moderate income housing set aside. Mr. wildman stated it was his understanding that the resale I I 1-2-8-86 restriction is limited to ten percent of the downpayment on the share, excluding improvements. Clift moved, second by Grgas, to adopt Resolution Number 86-18 as amended. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried ANIMAL CARE CENTER The Executive Director presented an update regarding the proposed construction of an animal care facility. He reported the Friends of the Seal Beach Animal Care Center have raised $37,000 towards construction and operation of the facility to be located on Agency-owned property westerly of the Public Works Yard, and that local contractors have agreed to contribute the labor and materials to the project. Mr. Nelson advised of the need to enter into an agreement with the FSBACC in order to proceed with this project. At the request of the Agency, he reviewed the current and proposed future use of the seven acre Agency-owned property adjacent to Regency Drive, advising that approximately three quarters of an acre will remain after setting aside the land for the animal care center, noting that there have been informal discussions with regard to development of a park and sports complex on the remaining land. Risner moved, second' by-Clift, to authorize the Executive Director to enter into a contract with the Friends of the Seal Beach Animal Care Center, Inc. for the construction and operation of the animal care center, the terms of said contract to be reviewed and approved by the City Attorney. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried ORAL COMMUNICATIONS There were no Oral Communications. ADJOURNMENT Clift moved, 7:15 p.m. second by Risner, to adjourn the meeting at AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried - f~ Of) ~~~O.-J Chairman 'I I I