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2003-07-21 Special CIC MinutesMINUTES OF THE SPECIAL COMMUNITY IMPROVEMENT COMMISSION MEETING MONDAY- -JULY 21, 2003- -5:30 P.M. Chair Johnson convened the Special Meeting at 5:41 p.m. Commissioner Matarrese led the Pledge of Allegiance. ROLL CALL - Present: Commissioners Daysog, Kerr, Matarrese, and Chair Johnson - 4. Absent: None. AGENDA ITEMS (03 -039) Resolution No. 03 -113, "Approving the Purchase by the Community Improvement Commission of 2531 -2819 Blanding Avenue and Authorizing the Executive Director to Execute the Certificate of Acceptance and Any Other Necessary Documents." Adopted. Commissioner Daysog inquired whether the City received letters from the prospective purchaser guaranteeing that the company will purchase the property from the City after the City purchases the property from the current owner. The Economic Development Division Manager responded staff has not received a specific correspondence in the form of a letter; however, additional discussions have led to actions by the company showing commitment to the project; the company has gone through an internal process, has committed to financing the project, and is pursuing additional regional permits. Commissioner Daysog stated there was a question about the asbestos; inquired whether the matter was further examined. The Economic Development Division Manager responded in the affirmative; stated additional information determining the extent of asbestos was provided; the revised estimate is less than the previous remediation amount. Commissioner Daysog inquired whether the price of the transaction would be disclosed. Legal Counsel responded the price and terms of the purchase remain confidential until the property closes escrow, which is a term of the Settlement Agreement. Chair Johnson inquired about the status of the Bay Conservation and Development Commission (BCDC) process; further inquired whether the process is further along and remaining positive. Special Meeting Community Improvement Commission 1 July 21, 2003 The Economic Development Division Manager responded in the affirmative; stated the prospective developer is proceeding with a application to BCDC's Design Review Board; the City should receive confirmation of the date the Board will consider the plans. Commissioner Matarrese requested an outline of the next steps in the process. Legal Counsel stated the agenda item is a procedural issue; the County Recorder will not permit the recordation of the deed for the property without a resolution stating that the governmental entity has approved the purchase of the property and has authorized the certificate of acceptance to be signed; the matter on the agenda tonight is said procedural requirement of the County Recorder. Commissioner Kerr stated two prices and terms are involved: one is the price at which the City will purchase the property from the present owner and second, the price at which the City will sell the property to the developer; inquired whether there is any reason why the public should not know the intended purchase price since the City is voting on a resolution to purchase the property tonight. Legal Counsel responded an express term of the Settlement Agreement is that said information is to remain confidential until the property closes escrow; with the Commission's action tonight, the City expects that escrow will close tomorrow or the following day; the information will be available soon; however, by the terms of the Settlement Agreement the information is not available tonight. Commissioner Matarrese stated the action is a long time coming and is the best resolution to take care of blight at one of the main entrances to the City; the property is not contributing property and sales tax revenue. Commissioner Matarrese moved adoption of the resolution. Chair Johnson seconded the motion. Under discussion, Commissioner Kerr stated the community, in particular the neighborhood, wants the City to clean up the property; there have been past suggestions for housing on the property; however, the property is adjacent to an M -2 zone, which is the City's heaviest industrial zoning; that she will support the motion with a certain sadness that everything desired for the property could not be attained. Special Meeting Community Improvement Commission 2 July 21, 2003 Commissioner Daysog stated that he abstained on the issue in the past because the City should make a decision with the price stated [publicly]; the City will become the owner of a shopping center; the City has a lot of good information from the future purchaser; however, he is concerned about the purchaser not sending a letter for the record, rather than just making verbal commitments; everyone agrees the Bridgeside shopping center should be the best neighborhood shopping area possible; however, the goal should not obscure the means; noted the [purchase] amount seems reasonable. Chair Johnson stated that she would prefer all of the details of the transaction be made public; the City has been working on the project for at least four years; the community has an interest in the project; the site is a blight, is not productive and has not been contributing to the City for at least ten years. Commissioner Kerr stated the City does not have optimal choices; dealing with the current owner has not been successful; the resolution tonight has the possibility of a positive outcome even though the City will own the shopping center briefly. On the call for the question, the motion carried by unanimous voice vote - 4. Chair Johnson stated staff should inform the developer that the Commission wants the deals as soon as possible. The Executive Director stated staff is aware of the Commission's direction; the negotiations have been challenging; staff will do everything possible to bring the deal to fruition as quickly as possible. Commissioner Matarrese stated the process began with the Economic Development Commission making a recommendation to the Council about the property being a blight; without a continued aggressive approach the property would remain the same and continue to deteriorate. ADJOURNMENT There being no further business, Chair Johnson adjourned the Special Meeting at 5:58 p.m. Respectfully submitted, Lara Weisiger Secretary Agenda for meeting was posted in accordance with the Brown Act. Special Meeting Community Improvement Commission 3 July 21, 2003