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HomeMy WebLinkAboutRDA Min 1987-11-02 11-2-87 I Seal Beach, California November 2, 1987 The Redevelopment Agency of the City of Seal Beach met in special session at 6:45 p.m. with Chairman Hunt calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Chairman Hunt Agency Members Clift, Risner, Wilson Absent: Agency Member Grgas Mr. Grgas arrived at the meeting at 6:48 p.m. Also present: Mr. Nelson, Executive Director Mr. Stepanicich, City Attorney Mr. Rennett, Assistant City Attorney Mr. Joseph, Assistant City Manager Mrs. Yeo, Secretary Chairman Hunt read the Notice of Special Meeting for the record as follows: I nJoe Hunt, 1180 Oakmont Road, 51-D Joyce Risner, 845 Driftwood Avenue Frank Clift, 4489 Dogwood Avenue Victor Grgas, 211 - 15th Street Edna Wilson, 13260 St. Andrews Drive, 255-I NOTICE IS HEREBY GIVEN that Joe Hunt 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, November 2, 1987 in City Council Chambers, 211 - 8th Street, Seal Beach, California, for the purpose of considering: Purchase agreement between Los Alamitos Unified School District and the Redevelopment Agency of the City of Seal Beach for purchase of_-Zoeter- School site, Pacific Coast Highway frontage and-_: -Master-Lease between Agency and Gemtel/Mackay for dev~lopment and operation of retail commercial center on Zoeter School site, Pacific Coa~t Highway frontage. - .' DATED THIS 28th day of October, 1987 Joe Hunt, Chairman Seal Beach Redevelopment Agencyn I WAIVER OF FULL READING No action was taken on the waiver of full reading. ZOETER SCHOOL SITE - PARCEL 1 - PURCHASE AGREEMENT and MASTER LEASE Agency Member Risner inquired as to the status of the recommended changes to the Master Lease that were brought forth at the last meeting by Mr. Grgas, and suggested that the Master Lease be discussed prior to acting on the Purchase Agreement with the Los Alamitos Unified School District. The Executive Director reported that the item 11-2-87 relative to a renegotiated lease-payment program if the Zoeter building were destroyed early in the lease term was not acceptable to the other negotiating party, and he interpreted their position to be that without specific outline as to how that would take effect, difficulties would arise with their potential lenders. Mr. Nelson reported language has been added to the Master Lease for legal clarification, wording and clarification added with regard to commencement date, clearly sets forth the parking easement agreement under the conditions, and clarifies the security deposit limitations relative to non-recourse and I time limits that would take effect, additional language added to Sections 20.1 and 20.2 with regard to the first right of refusal, stating however that the Agency's request to reduce the two year time period was not achieved, and with reference to Section 20.l(b) the words "in the aggregate" were inserted prior to the words "be more favorable". Agency Member Grgas indicated he was prepared to approve the Purchase Agreement with the School District, however would not be willing to approve the Master Lease at this time as he felt that the items that were requested to be included have not as yet been adequately addressed. He stated his intent to request that the Executive Director return to negotiations with a strong message to Gemtel with regard to the requests previously set forth, particularly with regard to the time period of the first right of refusal. He also noted it may be worthwhile to again seek requests for proposals. Agency Member Risner expressed her concern with entering into a purchase agreement for the property prior to concluding negotiation of the master lease since the lease payments are to be covered by the lessee. Mr. Nelson explained that if the Agency were to enter into agreement for the purchase of the property with the effective date of I the sale December 1st, the City would make the down payment of $76,334.40, those monies set aside in the General Fund, - and no further payment would be due for one year. Under the terms of the Gemtel lease, he reported that their payment would commence after certain items had been accomplished, possibly within six months and most likely no more than one year. Mr. Nelson noted that should the Gemtel lease not be approved, the City could seek another developer within the one year period, that process taking approximately six months, and explaining further that the second year payment to the School District would be approximately $240,000 less any lease payments that are realized. With regard to potential penalties if the City determined to not purchase the property, the Assistant City Attorney explained that if the Agency did not go forward with the purchase it would be in breach of the contract, that the measure of damages would be the difference between the purchase price in the agreement under consideration and the amount the School District could sell the property to another party. The Executive Director stated that the risk to the City in purchasing the property is very slight, that this prime parcel of property is presently available for purchase at a competitive market price, that the price will not be less a year from now, and over and above the financial return to the City over the term of the lease, the property will I become an asset to the community in fifty-five years at its appreciated value. Agency Member Risner inquired about her previous request for a written opinion as to whether or not the Agency would be an appropriate purchasing agent of the property since it is not within the Redevelopment Agency project area. The City Attorney advised that a written opinion had been provided to the staff some months past, that opinion being that the Agency could acquire the property. 11-2-87 Grgas moved, second by Hunt, to approve the Purchase Agreement between the Los Alamitos Unified School District and the Redevelopment Agency for purchase of the Zoeter School site, Pacific Coast Highway frontage. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I Grgas moved, second by Clift, to hold over consideration of the Master Lease and direct that the Executive Director return to negotiations to address the recommendations as set forth at the last meeting, the major elements of concern specific to the first right of refusal and percentage rents in the event of partial or total destruction of the building. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried ORAL COMMUNICATIONS There were no Oral Communications. ADJOURNMENT By unanimous consent of the Agency members, the meeting was adjourned at 7:12 p.m. I (2~~zL Chai~ Seal Beach, California November 16, 1987 The Redevelopment Agency of the City of Seal Beach met in regular session at 6:47 p.m. with Chairman Hunt calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Chairman Hunt Agency Members Clift, Grgas, Risner, Wilson Absent: None I Also present: Mr. Nelson, Executive Director Mr. Joseph, Assistant City Manager Mr. Stepanicich, City Attorney Mr. Rennett, Assistant City Attorney Mrs. Yeo, Secretary 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.