The URL can be used to link to this page

Home My WebLink About05-26-1998 ORA MinutesAPPROVED BY THE AGENCY BOARD ON JUNE 9, 1998 ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA MINUTES OF A REGULAR MEETING May 26, 1998 The Orange Redevelopment Agency of the City of Orange, California convened on May 26, 1998 at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 4:30 P.M. SESSION 1. ROLLCALL PRESENT ABSENT Murphy, Slater, Coontz, Spurgeon, Alvarez None 2.CONSENT CALENDAR Tape 5736 2.1 Declaration of the Clerk of the Orange Redevelopment Agency, Cassandra J. Cathcart, declaring posting of Orange Redevelopment Agency Agenda of regular meeting of May 26, 1998 at Orange Civic Center, Taft Branch Library at 740 E. Taft Avenue, Police Facility at 1107 N.Batavia, Eisenhower Park Bulletin Board, and summarized on Time Warner Communications,all of said locations being in the City of Orange and freely accessible to members of the public at least 72 hours before commencement of said regular meeting.ACTION: Accepted Declaration of Agency posting and authorized its retention as a public record in the Office of the Agency Clerk.2.2 Request Agency confirmation of warrant registers dated May 7 and 14, 1998.ACTION: Approved. 2.3 Request approval of Redevelopment Agency Minutes, Regular Meeting, May 12, 1998.ACTION: Approved. MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez Director Alvarez abstained on Item No. 2.3. Item Nos. 2.1 and 2.2 were approved as recommended.END OF CONSENT CALENDAR PAGE 1 l ii ORANGE REDEVELOPMENT AGENCY MINUTES May 26,1998 3.REPORTS FROM DIRECTORS Tape 5782 3.1 Report from the Assistant Executive Director regarding: l)Restaurant Improvement Program for the Old Towne area; 2) First Amendment to Participation Agreement between the Orange Redevelopment Agency and Citrus City Grille, Limited; and 3) First Amendment to Disposition and Development Agreement between the Orange Redevelopment Agency and J. R. Guerin Co., LLC (Old Towne Brewing Company).. (RA2100.0 AGR-2609.1) (RA2100.0 AGR-2593. 1)SUMMARY: Restructuring of existing restaurant loans under the proposed Restaurant Improvement Program FISCAL IMP ACT: Sufficient funds are available in Fund 920 (Southwest Project and Loan Administration) to be transferred to Account No. 920-0000-840000- 0000-20043 ( Southwest -Citrus City Grille Loan).The Assistant Executive Director presented the report. The Restaurant Improvement Program was formulated to restructure debt owed to the Agency so that payments to the Agency would be made after the restaurants have paid theirregular expenses, including 2 1'2% of their gross sales on advertising,particularly highlighting the Old Towne area.In return for the restructuring, the restaurants must agree to make available all financial records including monthly operating statements and tax returns; consult with and implement the recommendations of the Agency's restaurant consultant on a quarterly basis unless otherwise approved by the Agency; maintain continuous operation of the restaurant at least five days a week during the term of the loan; expend not less than 2.5% of gross sales on advertising and clearly identify Old Towne in each advertising effort; limit management fees for on and off-site management to an amount not more than the industry standard for restaurants of their type and size as determined by the Agency and its restaurant consultant; agree that no "profit" distributions will be made to principals or investors until the Agency receives fully amortized payments; and execute all required documents, including re-executed promissory notes and personal guaranties reflecting the new loan structures and amounts.NOTE: Director Alvarez requested an abstention be recorded due to ownership of property located at 152 N. Olive and 138 N. Olive. He stepped down from the dais at 7:25 p.m.SPEAKING IN SUPPORT:Judy Schroder, 1041 N. Elizabeth Place Anne Siebert, 340 S. Olive Lisa Ackerman" 151 N. Glassell Cheryl Turner, 132 S. Glassell REASONS FOR SUPPORT INCLUDE: Businesses need to be given the chance to succeed and ORANGE REDEVELOPMENT AGENCY MINUTES May 26,1998 3. REPORTS FROM DIRECTORS (Continued) SPEAKING IN OPPOSITON: Barbara DeNiro, (address on file), asked if only restaurants in Old Towne are eligible for the program? Were addendum's made to previous contracts so that payment are not made for a year? Have any payments been made; what and when were the amounts? Where is Restaurant Management Services located and do they have any relation to Citrus City Grille or Old Towne Brewing Company? What has been the cost so far for Janet Lowder to review and analyze the operations? What were the internal changes to the menus? Are advertising and promotions part of the service that will be provided for the establishments by this service? Are either of the restaurants now making payment to Orange Redevelopment Agency? Will unpaid interest be forgiven if they remain open until July, 2000? How long and how many times is debt deferred? Nick Lall, 6231 Mabury Avenue, expressed concern with the purpose of the Redevelopment Agency and that the City is getting in the business of business. It is not in the best interest of the City to be funding businesses. The Assistant Executive Director responded the Restaurant Improvement Program is for restaurants previously assisted by the Agency. The purpose of redevelopment is to make things happen that would not otherwise happen. She will provide MS.DeNiro with the payment information she requested. Ms. Lowder has no involvement with any ofthe restaurants in Old Towne and was paid $7,500 by the Agency for her services. Advice was provided to the restaurants relative to menus, food costs in relation to price, cost controls, service, and labor in relation to service. COUNCIL COMMENTS: Director Slater commented both restaurants are doing well. It should not be communicated that they are struggling. Chairman Coontz commented people have come throughout the County to Citrus City Grille and the Old Towne Brewing Company. Supportive people in the community have offered their own ideas about menus, prices, decor, hours, etc. It was essential to find a professional who would know the answers. The restaurants in the Plaza area are getting together to form an organization of their own to promote each other. Director Murphy commented a pro-active marketing program will affect major returns for both restaurants.Director Spurgeon suggested shuttle buses be coordinated with the west end of Orange, i.e. "The Block at Orange" to advertise the Plaza area, Chapman University, and all areas of the City.PAGE ORANGE REDEVELOPMENT AGENCY MINUTES May 26, 1998 3. REPORTS FROM DIRECTORS (Continued) MOTION- Slater SECOND- Coontz AYES - Murphy, Slater, Coontz, Spurgeon ABSENT - Alvarez Moved to 1) approve the Restaurant Improvement Program; 2) direct the City Attorney's Office to prepare the necessary documents to implement the Restaurant Improvement Program for Citrus City Grille, Limited, and J. R. Guerin Co., LLC (Old Towne Brewing Company); 3) authorize the Executive Director to execute all necessary documentation; and 4) approve loan in the amount of $60,000 from Fund 920 ( Southwest Project and Loan Administration) to implement the Program.Director Alvarez returned to the dais at 7:45 p.m.4. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS - None 5. ADMINISTRATIVE REPORTS - None 6. REPORTS FROM EXECUTIVE DIRECTOR - None 7. LEGAL AFFAIRS - None 8. ORAL PRESENTATIONS - None 7:00 P.M. SESSION 9. PUBLIC HEARINGS 9.1 1998/99 FISCAL YEAR BUDGET, ORANGE REDEVELOPMENT AGENCY Tape 2052 Time set for a public hearing to consider adoption of the 1998-99 Fiscal Year Orange Redevelopment Agency Budget.NOTE: Refer to Item No. 13. 1 of the City Council Minutes for discussion on this item.RESOLUTION NO. ORA-0342 A Resolution of the Orange Redevelopment Agency adopting said Agency's Budget for the Fiscal Year 1998-99 and relating to transfers of funds between and within appropriations, transfers between funds,and additional appropriations.MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez PAGE 4 r ORANGE REDEVELOPMENT AGENCY MINUTES 9. PUBLIC HEARINGS (Continued) May 26,1998 Moved that Resolution No. ORA-0342 as introduced, be adopted and same was passed and adopted by the preceding vote.10. ORAL PRESENTATIONS - None 11. ADJOURNMENT MOTION - Murphy SECOND - Coontz AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez The Orange Redevelopment Agency adjourned at 9:30 p.m.CASSANDRA J. A CART, CMC, CLERK OFTHEREDEV OPMENTAGENCY rTI PAGE 5