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Home My WebLink AboutMinutes - May 27, 2008 - CC, Special MeetingCITY OF AZUSA MINUTES OF THE CITY COUNCIL, THE REDEVELOPMENT AGENCY, AND THE AZUSA PUBLIC FINANCING AUTHORITY SPECIAL MEETING TUESDAY, MAY 27, 2008 — 6:08. P.M. The City Council of the City of Azusa met in special session at the above date and time at Magnolia Elementary School, 945 E. Nearfield, Azusa. CLOSED SESSION The City Council recessed to Closed at 6:09 p.m. to discuss the following: 1. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Property Address: 428 - 432 N. San Gabriel, Azusa, CA 91702 Agency Negotiators: City Manager Delach and Interim Assistant City Manager Makshanoff Negotiating Parties: LTA LLC Under Negotiation: Price and Terms of payment BLOCK 36 Closed Session Recess Real Prop Neg 428 — 432 N. San Gabriel Block 36 2. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Real Prop Neg Address: 152 E. Foothill Boulevard, Azusa, CA 91702 152 E. Foothill Agency Negotiators: City Manager Delach and Interim Assistant City Manager Makshanoff Negotiating Parties: Bank of America 8- LOWE Enterprises Real Estate Group Under Negotiation: Price and Terms of Payment 3. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Real Prop Neg Address: 100 E. Foothill Boulevard, Azusa, CA 91702 100 E. Foothill Agency Negotiators: City Manager Delach and Interim Assistant City Manager Makshanoff Negotiating Parties: LOWE Enterprises Real Estate Group Under Negotiation: Price and Terms of Payment 4. REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Real Prop Neg Address: 614 - 640 N. Azusa Avenue, Azusa, CA 91702 614-640 N. Agency Negotiators: City Manager Delach and Interim Assistant City Manager Makshanoff Azusa Negotiating Parties: LOWE Enterprises Real Estate Group Under Negotiation: Price and Terms of Payment The City Council reconvened at 6:20 p.m. City Attorney Hull advised that there was no Reconvened reportable action taken in Closed Session. No Rpts Cncl recess THE CITY COUNCIL RECESSED AT 6:30 P.M. IN ORDER TO CONDUCT THE UTILITY UB Mtg rcvne 1 BOARD MEETING. THE CITY COUNCIL RECONVENED AT 6:57 P.M. Mayor Rocha called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA ABSENT: COUNCILMEMBERS: NONE r i ALSO PRESENT: City Attorney Hull, City Manager Delach, Director of Utilities Hsu, Director of Resource Management Tang, Assistant to the Utilities Director I(alscheuer, Assistant Director of Water Operations Anderson, Associate Electrical Engineer Vuong, Senior Electrical Engineer Langit, Azusa Police Captain Gonzalez, Library Director Tovar, Administrative Services Director -Chief financial Officer Kreimeier, Finance Controller Aguilar, Budget Analyst Paragas, Interim Assistant City Manager Makshanoff, Public Information Officer Quiroz, City Treasurer Hamilton, Director of Information Services Graf, Director Recreation and Family Services Jacobs, Management Analyst Del Toro, Tierra West Consultant Otemeod, City Clerk Mendoza, Deputy City Clerk Toscano. PUBLIC PARTICIPATION Also Present Pub Part Mr. Mike Lee addressed Council thanking them for the Memorial Day Celebration; invited all to M. Lee the Mayor's Breakfast on Wednesday, May 281h, thanked them for the work at Foothill comments Gardens. AGENDA ITEMS Agenda Items JOINT PUBLIC HEARING - CONSIDERATION OF THE FIRST AMENDMENT TO THE AMENDED Joint Pub Hrg AND RESTATED 2006 DISPOSITION AND DEVELOPMENT AGREEMENT (BLOCK 36 PROJECT) Blocl< 36 WITH REG AZUSA, LLC, A SUBSIDIARY OF LOWE ENTERPRISES, INC. — FOR REAL PROPERTY LOCATED AT 100, 112, 116, AND 134 EAST FOOTHILL BOULEVARD AND 626, 628, 630, 632, 634, 636, 638, AND 640 NORTH AZUSA AVENUE, AZUSA. City Manager/Executive Director Delach addressed the issue stating that REG AZUSA, an City Mgr/Exe Dir affiliate of Lowe Enterprises, Inc. is requesting a 120 day extension of the DDA and allow for Comments the date of September 29" and language that would give discretion to the agency with regard to the milestones for completion of the project. The Mayor/Chairman declared the Hearing open. The City Clerk/Secretary read the affidavit of Hrg Open proof of publication of notice of said Hearing published in the Azusa Herald on May 15'h and May 22". Mr. Tom Wulf, Applicant, responded to questions posed by Councilmembers/Boardmembers T. Wulf regarding letter of intent, extension, and tax credit application. He read into the record a letter Applicant regarding his commitment to the City; economic climate; need for extension; addition of a Comments milestone; he cited as follows: a) July 15'h developer to execute a term letter with a senior construction lender, b) July 31" Developer demonstrate has applied for New Market Tax Credits, c) September 28'h Developer demonstrate it has received Investment Committee approval by a CDE (Community Development Entity) to fund new Market Tax Credits and d) November 28`h Developer shall secure commitments for all necessary funding; he requested the six month extension and stated if any milestone is not met, Council could terminate at any time. City Manager Delach added that another change is the reduction of 30% to 20% of the retail City Mgr/Exe Dir leases in order to activate the sale of the property; he talked about Letters of Intent from Comments various retailers. Moved by Councilmember/Director Gonzales, seconded by Councilmember/Di rector Hanks Hrg Closed and unanimously carried to Close the Public Hearing. Discussion was held regarding the process/mechanism for an extension; time allotted to Discussion secure new market tax credit and signed documents, four months versus six months. Councilmember Macias offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, RATIFYING Res. 08-39 CERTAIN FINDINGS PREVIOUSLY MADE REGARDING THE DISPOSITION OF AGENCY DDA REG PROPERTY PURSUANT TO THE AMENDED AND RESTATED 2006 DISPOSITION AND AZUSA DEVELOPMENT AGREEMENT WITH REG AZUSA, LLC AND APPROVING THE FIRS AMENDMENT TO THE AMENDED AND RESTATED 2006 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND REG AZUSA, LLC, A DELAWARE LIMITED LIABILITY COMPANY. 05/27/08 PAGE TWO Moved by Councilmember Macias, seconded by Councilmember Gonzales to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: CARRILLO, GONZALES, MACIAS, HANKS, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Director Hanks offered a Resolution entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, CALIFORNIA, Res. 08-1121 APPROVING THE FIRST AMENDMENT TO THE FIRST AMENDED AND RESTATED DISPOSITION Approving AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF First Amend AZUSA AND REG AZUSA, LLC, A DELAWARE LIMITED LIABILITY COMPANY. DDA Moved by Director Hanks, seconded by Director Carrillo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Board Members: AYES: DIRECTORS: CARRILLO, GONZALES, MACIAS, HANKS, ROCHA NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE (The motion included the change of September 28", to September 29th, Developer shall Motion to demonstrate to the Agency that it has received Investment Committee Approval by a CDE to Include find new Market Tax Credits to the project, and to include that it will come with a sixty-day extension at the discretion of the Board Members.) Moved by Board Member Hanks, seconded by Board Member Gonzales and unanimously Authorize Exe carried to authorize the Executive Director to execute the First Amendment to the Amended Dir to execute and Restated 2006 Disposition and Development Agreement with REG AZUSA, LLC, an affiliate First Amendment of Lowe Enterprises, Inc. Restated DDA PUBLIC HEARING - CONSIDERATION OFASECOND AMENDMENT TO COMMERCIAL LEASE Pub Hrg AGREEMENTS FOR THE AGENCY OWNED PARCELS LOCATED AT 809 N. AZUSA AVENUE, 802 Second Amend N. SAN GABRIEL AVENUE, 120, AND 150/190 WEST 9TH STREET, AZUSA. Commercial Lease Agmts Executive Director Delach addressed the Hearing stating that It will extend the lease F. Delach agreements with the businesses in the Ranch Market Center; it will be extended for four Comments months and the terms shall remain the same. He stated that Target Project Is still on track and moving forward. The Chairman declared the Hearing open. The Secretary read the affidavit of proof of Hrg Open publication of notice of said Hearing published in the Azusa Herald on May 15`h and May 22ntl Mr. Jorge Rosales addressed the Hearing with concerns regarding the extension of the lease J. Rosales agreements stating that they expired on December 31, 2007, but there was no extension. City Comments Attorney Hull advised that at the December 17, 2007 meeting there was a first amendment to the lease agreements extending it to March 31, 2008. Moved by Board Member Carrillo, seconded by Board Member Gonzales and unanimously Hrg Closed carried to close the Public Hearing. Moved by Board Member Han[ (s, seconded by Board Member Carrillo and unanimously carried Second Amend to authorize the Executive Director to execute the Second Amendment to the Commercial approved Lease Agreements with the following businesses: Alondra's Bakery, Broderick's Auto Body, Community Garage, and E&T Foods. It was consensus of the City Council/Board Members to recess at 7:41 P.M. The City Recess Council/Board Members reconvened at 7:51 P.M. Reconvened Moved by Councilmember Gonzales, seconded by Councilmember Hanks and unanimously Proc A. Connelly carried to approve the request for proclamation for Alexander Connelly for attaining the Rank Eagle Scout of Eagle Scout. Discussion was held regarding a proposed delegate to the Transportation Board; It was Dis Trans Brd suggested that Councilmembers e-mail City Manager to volunteer for the position, but not E-mail City Mgr discuss it among themselves. for volunteers 05/27/08 PAGE THREE [L FISCAL YEAR 2008/09 CITY, AZUSA PUBLIC FINANCING AUTHORITY, AND REDEVELOPMENT Budget 08/09 AGENCY PRELIMINARY BUDGET REVIEW. Review Administrative Services Director -Chief Financial Officer Kreimeier presented the proposed A. Kreimeler budget for City, Redevelopment Agency and Azusa Public Financing Authority, noting the Budget emphasis on maintaining service levels, status quo budget and with no big increases unless Presentation mandated. He detailed the following: budget background,. new and replacement capital equipment purchases, staffing changes, modest increase in Fire Safety Contract, reduced contribution from General Fund to Liability, Pension Obligation Bond Issue, Redevelopment Bond Issue and CIP. He and other Department Staff/Heads responded to questions posed regarding reclassifications, Fireworks Permit balance, strategic goals, Humane Contract- better service, Chamber Contract - 10% decrease instead of 20% for this year, public safety grants, addition of recreation programs, sewer requirement - NDPS, roadway maintenance, Downtown Business Association program, Downtown Parking Court possible paving, concrete improvements - sidewalks, City Hall renovation, contract with National Guard Armory - by Memorial Park and the CIP budget. It was noted that the Chamber of Commerce contract amount reduction would be 10% for this year only and that the CIP budget questions could be discussed with City Manager and/or Administrative Services Director -Chief Financial Officer Kreimeier on a one on one basis. Moved by Councilmember/D!rector Gonzales, seconded by Mayor Pro-Tem/Director Carrillo, Adjourn and unanimously carried to adjourn. TIME ADJOURNMENT: 9:30 P.M. NEXT RESOLUTION NO. 08-C26 (City). NEXT RESOLUTION NO. 08-R22 (Agency). NEXT RESOLUTION NO. 08-P2 (Authority). 05/27/08 PAGE FOUR