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HomeMy WebLinkAbout08-10-2010 ORA MinutesAPPROVED BY THE DIRECTORS ON AUGUST 24, 2010 ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA MINUTES OF A REGULAR MEETING August 10, 2010 The Orange Redevelopment Agency of the City of Orange, California convened on August 10, 2010 at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange California. 4:3U P.M. SESSION 1. ROLL CALL PRESENT - Smith, Murphy, Cavecche, Dumitru, Bilodeau ABSENT - None 2. PUBLIC COMMENTS -None 3. CONSENT CALENDAR 3.1 Confirmation of Warrant Registers dated July 22, 27 and 29, 2010.ACTION: Approved. 3.2 RedevelopmentAgency Minutes, Regular Meeting of July 27, 2010. (RC2500.D.4)ACTION: Approved. 3.3 LicenseAgreement between the City of Orange and the Orange Redevelopment Agency for the use of Agency-owned Parking Lots for the Orange International Street Fair. (RA2100.0 Agr-5612) See related City Council Minutes Item No. 3.8.) ACTION: Approved the License Agreement and authorized the Chairman and Agency Clerk to execute on behalf of the Agency. MOTION - Dumitru SECOND - Murphy AYES - Smith, Murphy, Cavecche, Dumitru, Bilodeau All items on the Consent Calendar were approved as recommended.END OF CONSENT CALENDAR 4. REPORTS FROM DIRECTORS -None PAGE1 ORANGE REDEVELOPMENT AGENCY MINUTES August 10, 2010 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS -None 6. REl?ORTS FROM EXIJCUTIVE DIRECTOR -None 7. ADMINISTRATIVE REPORTS 7.1 Fourth Amendment to Loan Agreement with 234 West Chapman, LLC, for a loan modification to defer payment for one additional year and extend the loan term from 16 years to 20 years and incorporate terms for a new loan to 234 West Chapman, LLC, in the amount of $500,000 to perform certain seismic-related work at the Vineland Hotel property (Wahoo's). (Continued from July 27, 2010) (RA2100.0 Agr- 5286.4)Discussion -Senior Project Manager Lisa Kim gave the staff report, providing a history of three different years in which the building had additions and expansions made to it. She stated that any waiving of conditions on the disbursement of funds must be approved by the Agency. She stated the project architect is David Holman, along with Susan Secoy serving as historic consultant. She further detailed the project and construction plans ensuring preservation of the historic building features; and noted a condition of the loan agreement is that LLC needs to deliver a signed lease with Wahoo's. She also summarized four revised terms to the proposed loan; and noted this is a $500,000 seismic loan in addition to the original $800, 000 loan.However, the $500,000 would be loaned only after the developer provides evidence that it has spent $1,060,000 toward completion of the project.Speaker -Wayne King spoke in opposition to the project.Ed Lee, representing 234 West Chapman LLC, noted this was a loan and that they are committed to a long term partnership with the city and will continue to work with the city to ensure the building is what the city wants.Councilmember Bilodeau noted the recent change in terms is more favorable to the City, but there is still a risk involved.Mayor pro tem Smith stated her support for the project with the following comments:This proposal is an appropriate use of redevelopment funds, as the purpose of redevelopment funds is to clean up blighted areas and enhance business. It does use taxpayer funds, but for abenefit - to enhance areas and benefit the community; and it is important to renovate, renew and rehab this building.Wahoo's is a corporation with an excellent reputation, and will be a good addition to the area,accomplishing the rehabilitation of an 1886 historic building.She agreed there is a risk involved - but a risk that should be taken, noting a previous seismic retrofit program for many of the buildings downtown, which was done years ago and helped to revitalize the downtown area. PACE 2 ORANGE F.EDEVELOPMENT AGENCY MINUTES August 10, 2010 7. ADMINISTRATIVE REPORTS (Continued) City Attorney David DeBerry noted the previous seismic retrofit program -the Unreinforced Masonry program - in the downtown area occurred many years ago and many of those loans had been forgiven upon successful completion of the work.Economic Development Director Jim Reichert added that a component of the loans in the previous Unreinforced Masonry program was that 50% of the amount to undertake improvements was loaned to property owners and about 57 buildings participated in the program.He added that the State required this work be done, and was accomplished through grants and loans. Chairman Cavecche reiterated that the Wahoo's Fish Tacos operation would have to be in place before the loan is disbursed.RESOLUTION NO. ORA-0520 A Resolution of the Orange Redevelopment Agency approving a fourth amendment to Loan Agreement with 234 West Chapman, LLC, A California Limited Liability Company, relating to redevelopment of property commonly known as 234-238 W. Chapman Avenue in the Orange Merged and Amended Redevelopment Project Area.MOTION - Smith SECOND - Dumitru AYES -Smith, Murphy, Dumitru NOES -Cavecche, Bilodeau Moved to: 1) Adopt Resolution No. ORA-0520, as revised; and 2) authorize the transfer of 500,000 from Unreserved Fund Balance in the Merged Debt Service Fund (987) to Merged Capital Projects Fund (940); and appropriate funds in the amount of $500,000 to Account 940.9810.56571.19231 (Wahoo's-234 W. Chapman, LLC project).Chairman Cavecche expressed support for the project, but voted No due to this being the developer's second request for financial assistance.8. LEGAL AFFAIRS -None ORANGE REDEVELOPMENT AGENCY MINUTES August 10, 2010 9. PUBLIC HEARINGS 9.1 PROPOSED FISCAL YEAR 2010-2011 (FY 11) ORANGE REDEVELOPMENT AGENCY BUDGET. (C2500.J.1. 1)The public hearing to consider the Final Fiscal Year 2010-11 Operating Budget for the Orange Redevelopment Agency, was continued to this time from July 27, 2010. (See related City Council Minutes Item No. 10.3.)THE CHAIRMAN OPENED THE PUBLIC HEARING. THERE BEING NO SPEAKERS,THE CHAIRMAN CLOSED THE PUBLIC HEARING.RESOLUTION NO.ORA-0521 A Resolution of the Orange Redevelopment Agencyadopting said Agency's Budget for the Fiscal year 2010-2011 and relating to transfers of funds between and within appropriations,transfers between funds, and additional appropriations. MOTION -Murphy SECOND -Cavecche AYES -Smith, Murphy, Cavecche, Dumitru, Bilodeau Moved to al7prove Resolution No. ORA-0521. 10. RECESS TO CLOSED SESSION NOTE: The Agency did not recess.a. To consider and take possible action upon such other matters as are orally announced by the General Counsel, Executive Director of the Board of Directors prior to such recess unless the motion to recess indicates any of the matters will not be considered in Closed Session.11. ADJOURNMENT -The Agency adjourned at 6:35 p.m.Declaration of the Clerk of the Orange Redevelopment Agency, Mary E. Murphy, declaring posting of Orange Redevelopment Agency Agenda of a regular meeting of August 10, 2010 at Orange Civic Center kiosk, Police facility at 1107 North Batavia, and the Main Public Library at 407 E.Chapman; 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.MURPHY AGENCY CLERK CARD