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HomeMy WebLinkAbout2000-08-24MINUTES REGULAR PALM DESERT REDEVELOPMENT AGENCY MEETING THURSDAY, AUGUST 24, 2000 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman Crites convened the meeting at 4:00 p.m. II. PLEDGE OF ALLEGIANCE - Member Robert A. Spiegel III. INVOCATION - Member Richard S. Kelly IV. ROLL CALL Present: Member Jean M. Benson Member Richard S. Kelly Member Robert A. Spiegel Chairman Buford A. Crites Excused Absence: Vice Chairman Jim Ferguson Also Present: Carlos L. Ortega, City Manager and RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, Assistant City Manager Richard J. Folkers, ACM/Director of Public Works and Acting Director of Building & Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Carolyn J. Miller, Community Arts Manager Teresa LaRocca, Housing Manager Noreen Bouchard, Records Technician V. ORAL COMMUNICATIONS MS. BONNIE GARCIA, representing Assemblyman Jim Battin, stated that her office had taken an interest in helping develop housing in the Coachella Valley, and they had partnered with Habitat for Humanity on a project designated for the City of Palm Desert. She said they had worked with local government and local organizations, including Marriott Corporation, Time Warner Cable, and three area churches to make sure this project moves forward, moves forward in a timely manner, and is completed to meet Palm Desert's standards. She offered to answer any questions. 1 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * VI. CONSENT CALENDAR A. MINUTES of the Regular Meetings of the Redevelopment Agency of July 13, July 27, and August 10, 2000, and the Adjourned Joint Meetings of the City Council/Redevelopment Agency of July 31, August 2, August 4, and August 7, 2000. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant Nos. 1 ORDA, 11RDA, 12RDA, 14RDA, 15RDA, 16RDA, 19RDA, 12-Housing, 14-Housing, 15-Housing, 16-Housing, 17-Housing, 19-Housing, and 14HA. Rec: Approve as presented. C. AGENCY'S PORTFOLIO MANAGEMENT SUMMARY for the Month Ending June 30, 2000. Rec: Receive and file. Upon motion by Kelly, second by Benson, the Consent Calendar was approved as presented by a 4-0 vote, with Vice Chairman Ferguson ABSENT. VII. CONSENT ITEMS HELD OVER None VIII.RESOLUTIONS None IX. NEW BUSINESS A. CONSIDERATION OF MULTI -FAMILY DEVELOPMENT CONCEPT. Housing Manager Terre LaRocca reviewed the staff report, noting that this request was for the development of a 140-unit, multi -family affordable project. She said the project would be located on approximately 12 acres of the 40-acre site currently owned by the City between Merle and 42nd Street, with industrial to the east and Portola Country Club to the west. She added that this project would help the City meet its requirements in providing affordable housing. She noted that approval of the recommendation would allow staff to enter into an Exclusive Right to Negotiate with Palm Desert Development Company in order to put together a Development and Disposition Agreement to be brought back to the Agency at a future date. She offered to answer any questions. 2 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Chairman Crites asked whether the area to the west of this proposed area, adjacent to Portola Country Club, was under consideration. Ms. LaRocca responded that the northerly east -most portion of that 40-acre site was under consideration. Chairman Crites asked whether the other portion, the southerly and westerly portion, was designed for single-family. Ms. LaRocca responded that it could perhaps be single-family in the future, or some self- help, or senior housing. She added that it was yet to be determined, but it would most definitely be a single-family project. She noted that as a point of information, she had received some calls from Portola Country Club residents and had attempted to answer them. She said she had provided James Lewis of Desert Management the information, along with the map, regarding the project and had advised that staff would be happy to meet with homeowners at their request to answer any questions or concerns they might have. Upon question by Chairman Crites relative to whether such a meeting had taken place, Ms. LaRocca responded that it was her understanding that Desert Management was going to meet with the Board of Portola Country Club earlier in the day; however, she was not sure whether or not that meeting had taken place. Chairman Crites stated it was his understanding that Agency Board approval of staff's recommendation would not approve a project but would simply give the right to negotiate for a potential project and that some time in the next six months a project would be brought back to the Agency Board for approval, modification, or rejection. Ms. LaRocca agreed. MR. BUD RUGGIERO, resident of Portola Country Club, 74-499 Mercury Circle East, expressed concern about the rapid growth that is occurring throughout this area. He said he was concerned with traffic, power, and water, and two of these were already problems. He said the traffic was already horrendous, even though it was not yet "the season." With respect to power, he said he had been on the air conditioning recycling system since the time it began over ten years ago, and he had never been cut off until this year, and he had already been cut off four times so far. He asked that the Council be very careful about not running out of utilities. MS. KITTY MC COY, President of the Portola Homeowners Association, asked that the Council consider the situation of the residents in this area. She expressed concern with the traffic and schools in the area. MS. EILEEN HARRISON, two-year resident of Palm Desert, commended the Council for doing a wonderful job in developing the City. She said she was impressed with the City of Palm Desert and with Portola Country Club; however, she wondered why notification of this proposal was presented to only a mere handful of adjacent property 3 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * owners less than 48 hours prior to this Council meeting. She said she would like to know who initiated the proposal, whether it was the developer or the Council. She added that she would also like to know why this property would not be considered for a higher and better use of real estate. She noted that she and her husband were surprised when their small lot was assessed at $75,000, and this meant that 12.5 acres developed with utilities and streets would be assessed by the County at more than $10 million. She asked whether a lot of thought had gone into this proposal and whether these points had been considered. She expressed concern with the fact that the nearest elementary school was more than two miles away, with the middle and high schools being across the wash. The closest public transportation was on Cook Street, a half -mile walk down an unlit street. In addition, the Police and Fire Departments must take a very circuitous route to service the area. She also was concerned that consideration of this project was scheduled for a Council meeting during the summer months when more than half of the adjacent property owners are out of the Valley. She said she had some alternatives for a higher and better use of the land, such as industrial/commercial use (which would produce taxes) or a home for the elderly which would be affordable. Chairman Crites noted that approval of staff's recommendation at this time would begin a process of looking whether or not such a proposal would be accepted. He said it would give up to six months for the process of consultation with neighbors and homeowners, looking at financing, etc. It would then come back to the Agency Board for approval. Member Kelly stated that the residents would then have an opportunity to be part of the committees working on this project, and Chairman Crites agreed. Chairman Crites stated that with regard to the issue of power, when power was deregulated a short number of years ago, the Palm Desert City Council sent out a special newsletter to all of its citizens to make everyone aware that what they thought they were receiving in terms of utility deregulation was unlikely to be what they ended up with. He said the Coachella Valley Association of Governments was also going to go back and look at what the Valley can do about this issue, and it would primarily be to bring appropriate pressure upon the State of California, since the decision making in terms of power regulation was both Federal and State rather than local in nature. He said the Council would do its part to try and convince people that perhaps some hasty decisions were made that were a great deal for the power industry but not particularly a good deal for the citizens of the State of California. Member Benson stated that the City of Palm Desert had owned this piece of property for over ten years, and it was first designed for multiple housing/apartments of a much greater density. She said the City had looked for years to find the right project to put in there. She noted that the reason the project was being started with the single-family homes in the middle was to lessen the impact on the Portola Country Club residents. 4 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Member Spiegel stated he felt it was imperative that the residents of Portola Country Club be included in the planning of this project. Member Benson moved to, by Minute Motion, concur with the concept and preliminary site plan for the development of approximately 12.5 acres of the City -owned 40-acre site located east of Portola Country Club, between 42nd Avenue and Merle Drive, and authorize staff to enter into an Exclusive Right to Negotiate with Palm Desert Development Company (PDDC) for a period not to exceed six months for the development of a 144-unit affordable multi -family housing project on the 12.5 acre site. Motion was seconded by Kelly, with the clear understanding that this is only the start of a process, and the residents will be a vital part of the process. Motion carried by 4-0 vote, with Vice Chairman Ferguson ABSENT. Chairman Crites stated that he would assume that the residents of Portola Country Club would be contacted relative to discussion of this project and to obtain their input. Ms. LaRocca responded that staff would follow up with this. Chairman Crites also asked that everyone in Portola Country Club be notified when this project comes back to the Agency Board for approval. B. REOUEST FOR APPROVAL OF PAYMENT FOR UNDERGROUND UTILITY CONVERSION ALONG HIGHWAY 74 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Ortega noted the report in the packets, noting that these resolutions would allow the Redevelopment Agency to have the ability at a later time to reimburse the City for the underground work. Councilman/Member Spiegel moved to waive further reading and adopt: 1) City Council Resolution No. 00-99, approving payment by the Palm Desert Redevelopment Agency for the cost of the conversion of existing overhead communication and electrical facilities to underground locations along Highway 74; 2) Redevelopment Agency Resolution No. 399, approving payment by the Agency for the cost of the conversion of existing overhead communication and electrical facilities to underground locations along Highway 74. Motion was seconded by Benson and carried by a 4-0 vote with Mayor Pro-Tem/Vice Chairman Ferguson ABSENT. C. REOUEST FOR APPROVAL OF REVISED AND EXPANDED HOME IMPROVEMENT PROGRAM GUIDELINES (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Rehabilitation Construction Specialist Bryce White reviewed the staff report, noting that the revised and expanded guidelines included in the packets were approved by the Housing Commission at its meeting of May 10, 2000. He said staff's recommendation was that the City Council/Agency Board approve the guidelines. He noted that in the 5 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Fiscal Year 2000/01, $300,000 was approved from the 20% unobligated housing set - aside funds for the home improvement program, and staff was requesting that the City Council/Agency Board specifically appropriate those funds to the home improvement program at this time, as well. Mayor/Chairman Crites noted that the program limits itself to owner -occupied housing. He said when he looked at some of the issues where cities are trying to encourage the rehabilitation of homes (i.e. downtown Palm Springs), one of the difficulties faced by the City of Palm Springs was properties owned by people who do not live there and which are leased out. He asked what would be done for, in essence, rental housing with this kind of program or if it was just a blank. Mr. White responded that at this point in time, it was a blank; however, staff would take this under consideration. Councilman/Member Spiegel stated the problem, as he saw it, was that the income of most of the property owners who rent out the properties was such that they would not be qualified for the loan. Mayor/Chairman Crites stated that a lot of times those are the properties which are most in need of this kind of program. Councilman/Member Kelly stated it was important to find a different way to get at them. Mayor/Chairman Crites stated that he supported this program; however, he asked whether staff would be bringing back some way to attempt to do what Councilman/Member Kelly just stated. Ms. LaRocca stated that staff could look at some type of program where an absentee landlord would do a "matching" in consideration for a low -interest loan from the City. She said it could be in the form of a low -interest loan program providing that their tenants are 80% or below median income. Councilman/Member Spiegel suggested that staff also work with Code Enforcement to try to get some of the areas cleaned up that need cleaning. Ms. LaRocca stated that staff would come back with recommendations. Councilman/Member Kelly stated that a lot of people who are having trouble landscaping their yards and keeping them up have the problems because they own them but do not have the resources. He said where it is a rental and people are making money on them, they do have the money, and it seemed that the City could be more strict with those people. 6 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Councilman/Member Spiegel moved to, by Minute Motion, approve the revised and expanded guidelines for the "Make A Difference Home Improvement Program" (HIP) as recommended and outlined in the accompanying report. Motion was seconded by Kelly and carried by a 4-0 vote, with Mayor Pro-Tem/Vice Chairman Ferguson ABSENT. X. CONTINUED BUSINESS None XL OLD BUSINESS None XII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AGENCY COUNSEL Request for Closed Session: Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: Land located in Section 4 - Desert Willow - Palm Desert, CA Negotiating Parties: Agency: Carlos L. Ortega Property Owner: Palm Desert Redevelopment Agency Under Negotiation: x Price x Terms of Payment 2) Property: 43-740 Kelsey Circle South, Palm Desert, CA Negotiating Parties: Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency Property Owner: Joshua and Kari Atchley Under Negotiation: x Price x Terms of Payment 7 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * C. CHAIRMAN AND MEMBERS OF THE AGENCY Member Spiegel stated that he was informed the previous day that Shelter From the Storm had been notified that the money from HUD ($750,000) was now available. He said the organization should be going forward the beginning of September. XIII.AWARDS, PRESENTATIONS, AND APPOINTMENTS None With Agency Board concurrence, Chairman Crites adjourned the meeting at 6:00 p.m. for dinner and Closed Session. He reconvened the meeting at 7:00 p.m. XIV. PUBLIC HEARINGS A. REOUEST FOR APPROVAL OF THE SALE OF MOBILE HOME LOT NO. 35 (APN 622-351-035) LOCATED AT 43-155 PORTOLA AVENUE (PORTOLA PALMS MOBILE HOME PARK) AT FAIR MARKET VALUE (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Housing Manager Terre LaRocca noted that with this sale, there were 13 vacant lots left. Mayor/Chairman Crites declared the public hearing open and invited testimony in FAVOR of or OPPOSED to this request. No testimony was offered, and he declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt City Council Resolution No. 00-100, authorizing the Palm Desert Redevelopment Agency to sell at fair market value mobile home lot number 35 (APN 622-351-035) for $24,500; the lot is located at 43-155 Portola Avenue (Portola Palms Mobile Home Park); 2) waive further reading and adopt Redevelopment Agency Resolution No. 400, making and finding that the sales price for the lots and mobile home is not less than its fair market value in accordance with the highest and best use under the Redevelopment Plan for Project Area No. 1 Amended. Motion was seconded by Kelly and carried by 4-0 vote, with Mayor Pro-Tem/Vice Chairman Ferguson ABSENT. B. REOUEST FOR APPROVAL OF THE SALE OF 75-357 KELSEY CIRCLE SOUTH AND 42-740 REBECCA ROAD AT FAIR MARKET VALUE (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Housing Manager Terre LaRocca reviewed the staff report, noting that the Rebecca Road sale would be brought back to the Council/Redevelopment Agency Board at the September 14th meeting because the buyers decided to buy the other house in the middle of this process. She said that property was being deleted from this request, and the one that stands is the 75-357 Kelsey Circle South. 8 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mayor/Chairman Crites declared the public hearing open and invited testimony in FAVOR of or OPPOSED to this request. No testimony was offered, and he declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt City Council Resolution No. 00-101, authorizing the Palm Desert Redevelopment Agency to sell 75-357 Kelsey Circle South at fair market value; 2) waive further reading and adopt Redevelopment Agency Resolution No. 401, making a finding that the sale price for 75-357 Kelsey Circle South is not less than fair market value in accordance with the highest and best use under the Redevelopment Plan for Project Area No. 1 Amended. Motion was seconded by Kelly and carried by a 4-0 vote, with Mayor Pro-Tem/Vice Chairman Ferguson ABSENT. C. REOUEST FOR APPROVAL OF THE CONVEYANCE OF A SINGLE FAMILY LOT TO HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., AND APPROVAL OF A DISPOSITION AND DEVELOPMENT AGREEMENT (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Ms. LaRocca noted that Bonnie Garcia from Assemblyman Jim Battin's office was present at the earlier portion of the meeting to speak on this matter. She said staff had received a proposal from Assemblyman Battin's office, and they were working in conjunction with Habitat for Humanity on the construction of a home in Palm Desert. She said the City had a lot located on Catalina Way, which could be donated for that purpose. Mayor/Chairman Crites declared the public hearing open and invited testimony in FAVOR of or OPPOSED to this request. No testimony was offered, and he declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt City Council Resolution No. 00-102, approving the conveyance by the Palm Desert Redevelopment Agency of a single family residential lot known as APN 627-052-010-1 and located on Catalina Way, Palm Desert, California, to Habitat for Humanity of the Coachella Valley, Inc., for the purpose of constructing a single family dwelling to be made available to a family of lower income; 2) waive further reading and adopt Redevelopment Agency Resolution No. 402, approving the conveyance of a single family residential lot known as APN 627-052-010-1 and located on Catalina Way, Palm Desert, California, to Habitat for Humanity of the Coachella Valley, Inc., for the purpose of constructing a single family dwelling to be made available to a family of lower income and approve both the Disposition and Development Agreement and Declaration of Conditions, Covenants, and Restrictions that will effectuate this plan. Motion was seconded by Kelly and carried by a 4-0 vote, with Mayor Pro-Tem/Vice Chairman Ferguson ABSENT. 9 MINUTES PALM DESERT REDEVELOPMENT AGENCY MEETING AUGUST 24, 2000 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * XV. ADJOURNMENT Upon motion by Spiegel, second by Kelly, and 4-0 vote of the Agency Board, with Vice Chairman Ferguson ABSENT, Chairman Crites adjourned the meeting at 8:22 p.m. ATTEST: / 47 BUFORD A CRITES, CHAIRMAN > SHEILA . �_LLIGAN, RETARY TO THE tij / PALM DESERT REDEV OPMENT AGENCY 10