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HomeMy WebLinkAboutMinutes - October 4, 2012 - OBa a AMENDED MINUTES OF THE AZUSA OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY October 4, 2012, 3:54 p.m. The Oversight Board of the Successor Agency to the Former Redevelopment Agency of the City of Azusa met in Special Session, at the above date and time, at the Azusa Library Auditorium, located at 729 N. Dalton Avenue, Azusa, California. A. PRELIMINARY BUSINESS CALL TO ORDER — Chairman Robert Gonzales called the meeting to order. PRESENT: BOARD MEMBERS: Gonzales, Lowe, Paragas, Woods ABSENT: BOARD MEMBERS: Frick, Englund, Romero ALSO PRESENT CITY OF AZUSA STAFF City Attorney Priest, Director of Economic and Community Development Christiansen, Assistant Director of Economic and Community Development McNamara, Administrative Technician Acting Assistant City Clerk Hernandez. Assistant director of Economic and Community Development McNamara led in the Salute to the Flag. B. PUBLIC COMMENT Mr. Jorge Rosales addressed the meeting questioning items D-1, if the note is not paid after the 3 year extension expires; and requested clarification on D-2 regarding exhibit A as noted on the resolution. He submitted copies of a summary of questions and answers, which were the responses to his questions submitted at the July 26 meeting. C. CONSENT CALENDAR Boardmember Woods offered a resolution entitled: A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING AND ADOPTING THE MINUTES FROM SPECIAL MEETING OF MAY 31, 2012 AND THE REGULARLY SCHEDULED MEETING OF JULY 26, 2012. Moved by Boardmember Woods, seconded by Boardmember Paragas, and *unanimously carried to adopt Resolution No. OB -09-12. D. SCHEDULED ITEMS 1. EXTENSION OF PROMISSORY NOTE FOR PROPERTY LOCATED AT 613 N. AZUSA AVENUE. Community Development Director Christiansen addressed the item stating that a loan was made to Dr. Ryes by the Former Redevelopment Agency, and one of the terms was a balloon payment after seven (7) years; in 2009 he refinanced his property, but the value of the building was not enough to pay off the loan; after the balloon payment was due, he continued to make interest payments; staff notified him of the expiration of the loan, and Dr. Reyes requested a 3 year extension. If the loan is not extended it would cost the Agency to foreclose, or if he files for bankruptcy the Agency will not be able to recover its investment. Discussion was held regarding Dr. Reyes possibility of filing for bankruptcy, the loan currently being defaulted, the 2009 appraisal value, subordination of the loan, and maturity of the loan to be in 10 years with the 3 year extension; Boardmember Lowe suggested that this item be continued in order to get additional information. Attorney Priest explained that due to the Estoppel provision on the agreement, if the extension is approved, there is no default if he has continued to make his regular payments. Moved by Boardmember Lowe seconded by Boardmember Woods and *unanimously carried to continue the item to the regular scheduled meeting of October 25, in order to get additional information ** and supporting documentation from Mr. Reyes Loan regarding evaluation of the property, borrowers current finances, and justification for the 3 year extension request. 2. TERMINATION AND MUTUAL RELEASE OF CLAIMS AGREEMENT FOR EXCLUSIVE NEGOTIATION AGREEMENT WITH KAL PACIFIC & ASSOCIATES FOR 229 S. AZUSA AVENUE. Community Development Director addressed the item stating that prior to the dissolution of Redevelopment, the Agency entered into an Exclusive Negotiation Agreement (ENA) with Kal Pacific & Associates, for property 229 S. Azusa Ave. There was a $15,000 deposit given to the City, which is in a deposit account, with the condition that it was to be refunded if a DDA (Disposition and Development Agreement) was not executed by a specified time. This process will terminate that agreement and re -pay the deposit. Discussion was held regarding the feasibility study, which was received and reviewed by the Agency, but the study showed a no cost sale; the study was not acceptable because the Agency expected some sort of negotiated purchase for some value and responded to Kai Pacific its concerns; the Agency decided to wait for the ENA to expire instead of violating the stay in order to terminate the agreement. 2 0 0 It was consensus of the board that there was performance from the developer in terms of the feasibility study; the Agency had problems with the feasibility study and communicated such to the developer; due to the circumstances of the stay that was in existence, the Agency did not terminate the ENA; and in order to avoid potential litigation, it is in the best interest to terminate the agreement and refund the deposit. Boardmember Woods offered a Resolution entitled: A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING A TERMINATION AD MUTUAL RELEASE OF CLAIMS AGREEMENT FOR EXCLUSIVE NEGOTIATION AGREEMENT WITH KAL PACIFIC & ASSOCIATES FOR 229 S. AZUSA AVENUE. Moved by Board Member Woods, Seconded by Board Member Paragas, and *unanimously carried to adopt Resolution No. OB -11-12. 3. A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ACKNOWLEDGING RECEIPT OF THE DUE DILIGENCE REVIEW CONDUCTED FOR THE LOW AND MODERATE INCOME HOUSING FUND. Community Development Director Christiansen addressed the item stating that the Due Diligence Review (DDR) is required by AB 1484; the requirement was to have this report done by October 1, but state guide lines were not ready; the Agency will still be in compliance with the DOF (Department of Finance) if it is submitted by October 15. It is required to hold a public hearing to accept public comment for a period of 5 days before its adoption. It was consensus of the Board to open the item for public comment. Mr. Jorge Rosales addressed the item requesting clarification on the approval to hire Simpson and Simpson, budget items RDA Special Funding amounting to $1,082,088, and the 2.9 million invested properties being held for resale. Moved by Boardmember Woods seconded by Boardmember Paragas and *unanimously carried to close the public comment portion for this meeting only. Written public comment will be accepted by the Finance Department up until the next special meeting of October 11, and at which meeting additional comment will also be accepted. The Board requested clarification on Exhibit D items 4, 5, 6, 7, 21, 24, 25, 26 and footnote amount of $243,179.40. Boardmember Paragas offered a Resolution entitled: A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ACKNOWLEDGING RECEIPT OF THE DUE DILIGENCE REVIEW CONDUCTED FOR THE LOW AND MODERATE INCOME HOUSING FUND. 3 0 0 Moved by Boardmember Paragas, Seconded by Boardmember Woods, and *unanimously carried to adopt Resolution No. OB -12-12. E. BOARD MEMBERS COMMENTS Boardmember Lowe stated that the board is entering an extensive review period due to the Agency's assets and expenses; the review will involve real estate developments of complicated transactions, and the Board should look into securing its own independent legal counsel, **and requested that this item be placed on the agenda of the next regular scheduled meeting of October 25, 2012. Boardmember Gonzales responded that this issue should be reviewed by the full board at a future meeting. Boardmember Gonzales requested that Dr. Reyes be invited to the next regular meeting to speak on his item. F. ADJOURNMENT Moved by Boardmember Woods, seconded by Boardmember Lowe and unanimously carried to adjourn. Next Special Meering, October 11, 2012, Light & Water Conference Room. TIME OF ADJOURNMENT: 5:04 p.m. ity Staff Member NEXT RESOLUTION NO. OB -13-12 * Indicates Board Members Frick, Englund and Romero were absent. **Indicates that at the Regular meeting of October 25, 2012, Boardmember Lowe requested additional language be added as it was discussed at the Special Meeting of October 4. El RESOLUTION NO. OB -14-12 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING AND ADOPTING THE MINUTES FROM THE SPECIAL MEETINGS OF OCTOBER 4, AND OCTOBER 11, 2012. WHEREAS, pursuant to Health and Safety Code section 34173(d), the City of Azusa ("Successor Agency") is the successor agency to the Redevelopment Agency of the City of Azusa; and WHEREAS, pursuant to Health and Safety Code section 34179(a), the Oversight Board has been appointed for the Successor Agency; and WHEREAS, the Oversight Board held two special meetings on October 4, and October 11, 2012. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1. Recitals. The Recitals set �fortb above are true and correct and are incorporated into this Resolution by this reference. Section 2. Approval of the Minutes. The Oversight Board hereby approves and adopts the minutes, in substantially the form attached to this Resolution as Exhibit A APPROVED AND ADOPTED THIS 25th day of October, 2012. Ro er��i�on Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa ATTEST jlxana Hernandez, Administrative Technician Assistant City Clerk Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa 0 0 CERTIFICATION I HEREBY CERTIFY that the foregoing Resolution No. OB -14-12 was duly adopted by the Board Members of the Oversight Board of the City of Azusa at a regular meeting thereof on the 25th day of October 2012, by the following vote of Board Members: AYES: BOARD MEMBERS: GONZALES, FRICK, LOWE, PARAGAS, ROMERO, WOODS NOES: BOARD MEMBERS: NONE ABSENT: BOARD MEMBERS: ENGLUND uana Hernandez, Administrative Technician Acting Assistant City Clerk Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa PAGE TWO E EXHIBIT A AMENDED MINUTES 0 SPECIAL MEETINGS OCTOBER 4, 2012, AND SPECIAL MEETING OCTOBER 11, 2012 [Attached behind this page]