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HomeMy WebLinkAbout1993-10-28MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, OCTOBER 28, 1993 CIVIC L.V.A I 'rat COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Vice Chairman Wilson convened the meeting at 4:25 p.m. H. ROLL CALL Present: Member Buford A. Crites Member Richard S. Kelly Member Walter H. Snyder Vice Chairman S. Roy Wilson Excused Absence: Chairman Jean M. Benson Also Present: Carlos L. Ortega, ACM/Director of Redevelopment Agency Bruce A. Altman, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Agency Secretary Ramon A. Diaz, ACM/Director of Community Development Richard J. Folkers, ACM/Director of Public Works Paul Shillcock, ACM/Director of Economic Development Pat Conlon, Director of Building and Safety Paul Gibson, City Treasurer/Director of Finance Dave Millheim, Director of Human Resources With Agency Board concurrence, Vice Chairman Wilson suspended the remainder of the Agenda to consider the following item: A. PORTOLA PALMS MOBILEHOME PARK Member Crites moved to add this item to the Agenda for discussion. Motion was seconded by Snyder and carried by unanimous vote. Mr. Ortega noted the memorandum dated October 28, 1993, that proposed a plan by which the Redevelopment Agency can directly assist those people in Portola Palms Mobilehome MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Park to realize what they have been trying to do for several years — have individual ownership of their spaces. He reviewed the memorandum, noting that the Park was purchased by the owners with a combination of State funds ($850,000), Redevelopment Agency funds ($600,000), and a private loan (Ring Financial - $3,000,000 - due within one year - expiring October 1, 1993). One of the conditions placed by the Agency and the State was that no individual spaces were to be released until 67 % of the tenants were ready to purchase (a total of 95 spaces). He noted that this had not happened. He said Ring Financial had indicated it would be willing to extend the loan and not begin foreclosure proceedings provided that the Agency step in and undertake financing to purchase the unsold spaces that would remain at the end of the year. He added that at the present time, 47 spaces remained unsold. Member Kelly moved to, by Minute Motion, authorize the Executive Director to execute an agreement between the Palm Desert Redevelopment Agency, Ring Financial, Inc., the State of California, and park owners Joseph and Anna J. Natter (Contract No. R080701. Motion was seconded by Snyder and carried by unanimous vote of the Agency Board Members present. NOTE: The remainder of the Redevelopment Agency Agenda was considered following completion of the City Council Agenda. III. CONSENT CALENDAR A. MINUTES of the Regular Meeting of the Redevelopment Agency of October 14, 1993. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant No. 14. Rec: Approve as presented. C. QQNSIDERATION OF REQUEST from Paul Murphy for Use of Public Land for Christmas Tree Lot. Rec: By Minute Motion, approve the lease of the lot at the southeast corner of Portola Avenue and Highway 111 to Mr. Paul Murphy subject to the conditions set forth in the staff report dated October 28, 1993. 2 POSTED AGENDA PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * D. REOUEST FOR AUTHORIZATION of an Amendment to the Redevelopment Agency Dues Budget for Fiscal Year 1993/94. Rec: By Minute Motion, authorize an increased,r•.,r.;ation of $1,143.00 to Account Number 850-4195-466-3630 (Dues). Member Crites removed Item C for separate discussion under Section VI, Consent Items Held Over, of the Agenda. Upon motion by Snyder, second by Crites, the remainder of the Consent Calendar was approved as presented by unanimous vote of the Agency Board. IV. ORAL COMMUNICATIONS None V. RESOLUTIONS None VI. CONSENT ITEMS HELD OVER C. CONSIDERATION OF REQUEST from Paul Murphy for Use of Public Land for Christmas Tree Lot. Rec: By Minute Motion, approve the lease of the lot at the southeast corner of Portola Avenue and Highway 111 to Mr. Paul Murphy subject to the conditions set forth in the staff report dated October 28, 1993. Member Crites stated that the letter from Mr. Murphy indicated he would be willing to operate a Christmas tree recycling facility if the City wished, and this had not been included as a condition of approval. Mr. Ortega responded that this had been discussed with City staff and that Mr. Wohlmuth had a different plan for recycling of the trees; however, if the Agency Board wished, the condition could be added. Member Crites suggested that it be included in the conditions of approval and that it could always be removed at a later time if the City decided it did not wish for him to operate such a facility. 3 POSTED AGENDA PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Crites moved to, by Minute Motion, approve the lease of the lot at the southeast corner of Portola Avenue and Highway 111 to Mr. Paul Murphy subject to the conditions set forth in the staff report dated October 28, 1993, with the added condition relative to the applicant operating a Christmas tree recycling facility. Motion was seconded by Snyder and carried by unanimous vote. VII. NEW BUSINESS A. REQUEST FOR APPROVAL OF RENTAL REHABILITATION/SUBSIDY PROGRAM GUIDELINES AND RECOMMENDATION ON DIXON LOAN REQUEST FOR REHABILITATION LOAN FOR 11 UNIT COMPLEX AT 73-922 SHADOW MOUNTAIN. Associate Planner Phil Drell reviewed the staff report, noting that in the time since the report was written, staff had received a current credit report on the owner, Mr. Dixon, and that it was positive. He stated that as a condition of the loan, the owner had agreed to provide the Agency with evidence of competent management, and he would be turning the property over to a local management company with the Agency's approval. He recommended that the Agency authorize the loan, and he noted that staff would come back with the actual loan documents and terms of the specific assistance agreement. Member Snyder expressed concern that the might continue to deteriorate even after the Agency approves the loan, and he asked what assurances we would have that that would not happen. Mr. Drell stated that there was some risk involved in this situation. The Agency, as a condition of the loan, must be satisfied with the management contract that the owner will execute for the property. He added that the owner's credit rating indicates that he is financially responsible, and with just this one exception he is current on all other obligations shown on the report. He stated that part of the owner's problem is that no one will loan money on rental property at this point in time. Upon question by Member Wilson, Mr. Drell responded that staff recommended that the Agency move forward with this loan. He added that it would solve a problem that no one else is willing to step forward to solve. Member Kelly asked whether the Agency could end up owning the Mr. Drell responded that if the bank decided to foreclose due to non-payment of the loan, the Agency would have a one-third ownership of the r. Mr. Ortega added that this is a neighborhood program, and the Agency is going to help someone get back on his feet and improve the neighborhood to make the area a better place. Member Kelly stated that he felt one of the best possible ways to use our Redevelopment monies was to improve existing neighborhoods in the community. 4 POSTED AGENDA PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Kelly moved to, by Minute Motion: 1) Approve the Rehabilitation Rental Assistance Guidelines attached to the staff report dated October 28, 1993; 2) authorize a maximum loan of $185,000 for rehabilitation of the r.ur;,.,), at 73-922 Shadow Mountain pending satisfaction of the conditions set forth in the staff report dated October 28, 1993, concerning credit worthiness and rental ownership track record. Motion was seconded by Wilson. Upon question by Wilson, Mr. Drell responded that the owner had agreed to commit the entire 11 units to the Agency's low and moderate housing stock. He added that the contract would be set up in such a way that he would be able to pay his bills. Member Kelly stated he felt that through the City's affordable housing projects, it has become competitors with private business; this has caused it to be very difficult for people who own apartment houses. Member Crites disagreed and stated that the rental market is not good at this time, no matter what the City is doing or not doing. Member Snyder expressed concern with who would be supervising the disbursement of the almost $200,000 to make sure it is used for rehabilitation. Mr. Drell responded that disbursement of the funds would go to the contractor when he completes the work, not to the owner, and it would be disbursed like a construction loan. Vice Chairman Wilson called for the vote. Motion carried by a 3-1-1 vote, with Member Crites voting NO and Chairman Benson ABSENT. B. PRESENTATION BY JOANNE LEONESIO OF THE RIVERSIDE COUNTY HOUSING AUTHORITY CONCERNING THE COMMUNITY LIAISON SPECIALIST POSITION AND PROGRAM SERVING THE 725 HOUSING AUTHORITY UNITS IN PALM DESERT. Mr. Drell reviewed the staff report, noting that the Housing Authority had created a new position of Community Liaison Specialist to specifically develop programs, involve and coordinate local community service resources, and construct appropriate amenities to address the unique needs of all Housing Authority projects in Palm Desert. He introduced Joanne Leonesio, Community Liaison Specialist. MS. JOANNE LEONESIO addressed the Agency Board and reviewed the Palm Desert Housing Community Liaison Specialist Goals and Budget (attached to the October 28, 1993, staff report as Exhibit "A"). She noted that Phase One would include establishment of resident councils, subcommittees, and advisory groups in existing resident populations. She stated that two members of the teen council of One Quail Place were present in the audience. She added that among many other items, this first phase would include construction of a playground at One Quail Place and establishment of Club One Quail, a meeting place for 5 POSTED AGENDA PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 28, 1993 * * * * .* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * children after school. She added that grants had been applied for and that they had been successful in securing other monies. Member Crites stated he felt this was definitely a "winner", and he moved to, by Minute Motion, appropriate $122,495 from the Housing Fund to cover projected increased rent subsidy costs resulting from Community Liaison Specialist Program as described in Attachment A to the staff report dated October 28, 1993. Motion was seconded by Snyder and carried by unanimous vote. VIII. CONTINUED BUSINESS None IX. OLD BUSINESS None X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AGENCY COUNSEL Absent C. CHAIRMAN AND MEMBERS OF THE AGENCY None 6 POSTED AGENDA PALM DESERT REDEVELOPMENT AGENCY MEETING OCTOBER 28, 1993 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XI. ADJOURNMENT Member Crites moved to adjourn the Redevelopment Agency meeting at 5:50 p.m. to 3:30 p.m. on Tuesday, November 2, 1993. Motion was seconded by Kelly and carried by unanimous vote. ATTEST: SHEILA R. GILLIGAN, SEC PALM DESERT REDEVELO ARY TO THE AGENCY 7