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1996 09 17 RDA Minutes: LA QUINTA REDEVELOPMENT AGENCY MINUTES SEPTEMBER 17, 1996 Regular meeting of the La Quinta Redevelopment Agency was called to order by Chairman Sniff. PRESENT: Board Members Adolph, Henderson, Holt, Perkins, Chairman Sniff ABSENT: None PUBLIC COMMENT None CONFIRMATION OF AGENDA Confirmed APPROVAL OF MINUTES MOTION It was moved by Board Members Henderson/Holt to approve the Minutes of August 6, 1996 as submitted. Motion carried with Board Member Adolph abstaining. MOTION It was moved by Board Members Adolph/Holt to approve the Minutes of August 20 and September 3,1996 as submitted. Motion carried unanimously. BUSINESS SESSION 1. CONSIDERATION OF AN EXCLUSIVE NEGOTIATION AGREEMENT WITH CATELLUS RESIDENTIAL GROUP REGARDING 48 AVENUE AND JEFFERSON STREET DEVELOPMENT AND AUTHORIZING THE EXECUTIVE DIRECTOR TO SIGN THE AGREEMENT. Mr. Spevacek, Consultant with Rosenow, Spevacek Group, advised that on July 22, 1 996, the Agency Board directed staff to enter into negotiations with the Catellus Residential Group regarding the planning and development of approximately 39 acres owned by the Agency at 48th Avenue and Jefferson Street. The agreement provides that the Agency will exclusively negotiate with Catellus Residential Group for a period of ninety-days or until December 23, 1 996 for the Agency and Developer to formulate a development plan, identify BIB] 10-31-1996-U01 03:57:10PM-U01 RDAMIN-U02 09-U02 17-U02 1996-U02 :Redevelopment Agency Minutes Page 2 September 17,1996 development needs and costs, and outline funding and implementation responsibilities in connection with site development. The agreement also provides that two community meetings will be held to gain input during plan development and finalization activities. The agreement also allows for another 1 20 days from the Board's acceptance of the site development plan to negotiate a disposition and development agreement and prepare and process required environmental and other land-use applications. Thirdly, it also calls for a final 30-day period during which time, the Agency and Developer will consider a ODA. He noted that the action before the Board will, in no way, obligate the agency. MOTION It was moved by Board Members Adoiph/Holt to authorize execution of an Exclusive Negotiation Agreement between La Quinta Redevelopment Agency and the Catellus Group regarding the 48th/Jefferson Street development and authorize the Chairman to sign the agreement. Motion carried unanimously. CONSENT CALENDAR 1. APPROVAL OF DEMAND REGISTERS DATED AUGUST 20, SEPTEMBER 3 & 17, 1996. 2. TRANSMITTAL OF TREASURY REPORTS DATED JUNE 30 & JULY 31, 1996. MOTION It was moved by Board Members Henderson/Holt to approve the Consent Calendar as recommended. Motion carried unanimously. STUDY SESSION 1. DISCUSSION OF A BUSINESS DEVELOPMENT AND RETENTION PROGRAM. Mr. Weiss, Assistant City Manager, advised that the City/Agency has undertaken a number of efforts to enhance its economic development planning efforts including enhancements to the staffing levels, adoption of an Economic Development Plan and within that plan, adoption of specific plan implementation policies. Included within those implementation policies is one entitled Facilitation of Business Retention & Expansion." It has been suggested that staff pursue the Plan and Policies by developing and/or itemizing programs that might be available to the Agency in support of business retention. BIB] 10-31-1996-U01 03:57:10PM-U01 RDAMIN-U02 09-U02 17-U02 1996-U02 :Redevelopment Agency Minutes Page 3 September 17,1996 Mr. Spevacek, Consultant with Rosenow, Spevacek Group, proceeded to review a number of programs which could be customized to fit specific circumstances in La Quinta. The programs reviewed included: 1) a partnership with private lending institutions in which the Agency could fund closing costs; buy down interest rates, or serve as the lender of last resort; 2) a partnership with Inland Empire Lender's Community Development Corporation, in which the Agency could issue standby letters of credit or make micro loans to fund fixtures, equipment, inventory, or working capital; 3) establish a Business Incubator Program, which would involve underwriting some or all of the costs associated with building a business facility which could provide low-rent office or industrial space for start-up businesses that would relocate once the business was established and 4) Enterprise Zone, which provides federal tax incentives to businesses that export goods and who employ the disadvantaged. Mr. Weiss advised that if the Council wishes for staff to pursue any one of these programs they can come back to the Board with the cost parameters. Chairman Sniff advised that his vision of this issue is to: 1) encourage the location and initiation of new businesses to fill our vacant store-fronts; 2) a means or method to work with lending institutions hopefully, local) to provide the bulk of the loan in which the Agency would buy-down the interest fees; and 3) help to keep existing businesses that may be struggling. He hoped to involve the Chamber of Commerce in developing a business support menu with multiple options they could present to business owners. Board Member Holt wished to see the Agency move forward with a plan. She asked if the Agency can issue letters of credit and Mr. Spevacek advised that the Agency cannot unless it deals with a property rehabilitation loan. A letter of credit would be equal to the loan amount given, so we would have to establish a criteria as to the amount. Ms. Honeywell, Agency Counsel, advised thai the Agency is somewhat limited in helping in these different areas. She noted that the City, as a general law city, is faced with much the same problem, however, converting to a charter city would be a great benefit in developing these kinds of programs. Board Member Henderson advised that she isn't real pleased with the Inland Empire Lender's Community Development Corporation because they support minority and women owned businesses and she felt that everyone should be supported on an equal basis. Nor was she impressed with the Enterprise Zone and wished to see some kind of report from them before pursuing that avenue. Chairman Sniff felt that should the charter not pass, there are still some things we can do and he hoped that the Chamber of Commerce will be included. BIB] 10-31-1996-U01 03:57:10PM-U01 RDAMIN-U02 09-U02 17-U02 1996-U02 :Redevelopment Agency Minutes Page 4 September 17, 1 996 In response to Board Member Holt, Mr. Spevacek advised that we could provide a capital pool to a lending institution and they would then issue a letter of credit to guarantee payment on a loan that could either be issued by the SBA or some other lending institution. Also, the City could issue a letter of credit to act as a co-signer on a loan. Micro loans for equipment, etc. cannot be RDA funds. Board Member Perkins stated that, he too, was not enthused with the Enterprise Zone. He expressed strong support for lending assistance toward business retention. He didn't see any sense in bringing in a new business and losing two. Board Member Adolph expressed concern about the City becoming a financial institution although he understood that we need to be supportive of existing businesses, but he didn't want to see the City get in a position of having to open a new department of the City to run such a program. The Board directed staff to establish a more detailed. program for presentation possibly in early November. DEPARTMENT REPORTS 1. TRANSMITTAL OF REVENUE & EXPENDITURES REPORTS DATED JUNE 30. and JULY 31,1998. MOTION It was moved by Board Members Holt/Henderson to receive and file the Revenue & Expenditures Reports dated June 30, and July 31, 1996. Motion carried unanimously. CHAIR AND BOARD MEMBERS' ITEMS None BIB] 10-31-1996-U01 03:57:10PM-U01 RDAMIN-U02 09-U02 17-U02 1996-U02 : CLOSED SESSION 1. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING POTENTIAL TERMS AND CONDITIONS OF ACQUISITION AND/OR DISPOSITION OF REAL PROPERTY LOCATED AT THE NORTHEAST CORNER OF 48TH AVENUE AND ADAMS STREET. PROPERTY OWNER NEGOTIATOR: TOM BIENEK. 2. CONFERENCE WITH AGENCY'S REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 CONCERNING PROPERTY LOCATED AT 78-250 HIGHWAY 111 INSTRUCTING THE NEGOTIATOR CONCERNING AN AMENDMENT TO THE OWNER/PARTICIPATION AGREEMENT. NEGOTIATOR: TS RESTAURANTS. The Board reconvened with no decision being made which requires reporting pursuant to Section 54957.1 of the Government Code Brown Act). There being no further business, the meeting was adjourned. Ajj;;;II;;ubm;;; secretary La Quinta Redevelopment Agency BIB] 10-31-1996-U01 03:57:10PM-U01 RDAMIN-U02 09-U02 17-U02 1996-U02