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HomeMy WebLinkAbout04-12-2011 ORA MinutesAPPROVED BY THE DIRECTORS ON APRIL 26, 2011 ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA MINUTES OF A REGULAR MEETING April 12, 2011 The Orange Redevelopment Agency of the City of Orange, California convened on April 12, 2011 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. ROLL CALL PRESENT - Whitaker, Smith, Cavecche, Dumitru, Bilodeau ABSENT - None 2. PUBLIC COMMENTS - None 3. CONSENT CALENDAR 3.1 Confirmation of warrant registers dated March 17, March 24, and March 31, 2011. ACTION: Approved. 3.2 Redevelopment Agency Minutes, Regular Meeting of March 22, 2011. RC2500.D.4) ACTION: Approved. 3.3 First Amendment to Consultant Services Agreement between the Agency and GLP Engineering, Inc. for additional Engineering Services for the Santa Fe Depot Improvement Project. (RA2100.0 Agr- 5545.1) ACTION: Approved First Amendment to Consultant Services Agreement with GLP Engineering, Inc.; and Authorized the Chairman and Agency Clerk to execute on behalf of the Agency. MOTION - Dumitru SECOND - Whitaker AYES - Whitaker, Smith, Cavecche, Dumitru, Bilodeau All items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR 4. REPORTS FROM DIRECTORS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None PAGE ORANGE REDEVELOPMENT AGENCY MINUTES April 12, 2011 6. REPORTS FROM EXECUTIVE DIRECTOR 6.1 Update of the Governor's Budget Proposal to Eliminate Redevelopment. Status report of the proposed legislation to implement the Governor's Budget proposal to eliminate redevelopment and potential impacts to the Orange Redevelopment Agency (ORA). Discussion - Senior Project Manager Lisa Kim described the Governor's plan to implement elimination of redevelopment agencies through passage of A13101 and S1377. She also provided information on the current ORA unencumbered fund balance, projects funded, where money would go if the ORA is eliminated, what can be paid for with unencumbered funds, what assets the ORA currently owns, possible transfer of ORA properties to the City, and where things stand today. She further stated staff continues to monitor and will report on future legislative action, and what other cities are doing on this issue. Director Whitaker stated the need to schedule a public hearing to encumber funds for public works projects and cooperation agreements to maintain ORA assets. He commented on not wanting to give money back to the State, but use it for infrastructure. Director Bilodeau requested documentation to understand the necessary findings that the Board would need to make. In response, Assistant General Counsel Ted Reynolds offered to provide a draft cooperation agreement that sets forth the necessary sections of the redevelopment law that is being followed. Chairman Cavecche stated that the City has used ORA funds for public infrastructure, and that she is concerned about keeping the City's unencumbered reserves and securing the properties owned by the ORA. She also mentioned the need to consider the $11 million debt the ORA owes the City. In speaking to the debt mentioned, Assistant General Counsel Ted Reynolds stated that the promissory notes allow for pre - payment with authorization by the Board. He verified for Chairman Cavecche that, if AB 101 and SB77 are passed, the tax increment would no longer be given to the ORA in excess of amounts necessary to pay for existing indebtedness. Director Bilodeau suggested the ORA could call the bonds and pay off the existing debt. Chairman Cavecche stated her interest in how paying off debt would then affect the City's receipt of property taxes into the City's general fund. She further commented on a compromise bill being proposed in the state legislature. She confirmed with staff that the City is following this issue. Assistant General Counsel Ted Reynolds stated that, under the proposed legislation, the Agency's bonds would be an enforceable obligation and that the tax increments would continue to flow to retire the obligations. He stated the Board should consider encumbering the reserve funds for public improvements prior to enactment of the proposed legislation. Director Bilodeau stated that the money is needed to fund the school system without raising taxes. Director Smith stated she, too, wants to protect the money that the City has worked to save. PAGE 2 ORANGE REDEVELOPMENT AGENCY MINUTES April 12, 2011 7. ADMINISTRATIVE REPORTS - None 8. LEGAL AFFAIRS - None 9. RECESS TO CLOSED SESSION - The Redevelopment Agency recessed at 7:15 p.m. to a Closed Session for the following purposes: a. Conference with Real Property Negotiator - Real property negotiations pursuant to Government Code Section 54956.8: 1) Property: 129 N. Cypress Street (Assessor's Parcel No. 039 - 172 -08 and 039 - 172 -09). Agency negotiators: Jim Reichert, Assistant Executive Director, Lisa Kim, Senior Project Manager, and Barbara Messick, Project Manager. Negotiating Parties: Orange Redevelopment Agency and Donald Delano and/or his agents. Under Negotiation: Price and terms of payment. 2) Property: 164 -170 South Water Street. Agency's negotiators: Jim Reichert, Assistant Executive Director, and Lisa Kim, Senior Project Manager. Negotiating Parties: Orange Redevelopment Agency and James Beam, Craig Beam, Jason Cooke, and Bryce Stafford doing business as BPS WATER, LLC, a California limited liability company. Under Negotiation: Price and terms of payment. b. 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. PAGE 3 ORANGE REDEVELOPMENT AGENCY MINUTES April 12, 2011 7:00 P.M. SESSION 10. PUBLIC COMMENTS - None 11. PUBLIC HEARINGS 11.1 COOPERATION AND REIMBURSEMENT AGREEMENT — CONSTRUCTION OF THE PROPOSED METROLINK PARKING STRUCTURE. (RA2100.0 Agr -5750) Time set for a joint public hearing of the City Council of the City of Orange and the Board of Directors of the Orange Redevelopment Agency to consider a Cooperation and Reimbursement Agreement relating to the construction of the proposed Metrolink Parking Structure project. See related City Council Minutes Item No. 13.2) NOTE: Director Whitaker recused himself from the meeting due to a conflict of interest with his employment; and left the dais. Discussion — Project Manager Barbara Messick gave the staff report. Assistant Counsel Ted Reynolds clarified the Agency did not need to make a blight finding since the area in question was determined to be blighted when the redevelopment plan was created. He further stated that the Agency is required to find that the project would help eliminate blight, which could be found from the synergistic effect that the project would have upon surrounding land uses. Director Dumitru asked whether a private investor had been sought to develop the components of the project that City staff described as a possible grocery store and retail components. Ms. Messick stated that private investors would have to own the land to invest in it, and that working with a consultant it was determined that a grocery store would be feasible, and that once the City found a tenant, the building of the shell could begin. Chairman Cavecche clarified that the focus of the discussion was on the parking and retail components; stated the need for more parking in the downtown area, and stated her support for the recommendation of utilizing future funding. Director Bilodeau stated opposition to obligating funds for the core and shell, but agreed to building the parking structure. Director Smith agreed with utilizing future funds, stating that there is a need for more parking and a retail component has always been part of the plan. Director Dumitru offered agreement with the parking structure, but stated private investors should be looking into retail opportunities, and that he would not support the retail portion without clearly identifying the funding. PAGE 4 ORANGE REDEVELOPMENT AGENCY MINUTES April 12, 2011 11. PUBLIC HEARINGS (Continued) Ms. Messick stated staff could obtain community input on designs of the parking structure and continue efforts to contact private developers to build the core and shell for retail uses. She explained the requirements for connecting to the historic neighborhood according to the Secretary of the Interior standards, and reiterated that the Orange County Transportation Authority would fund the parking structures. MOTION - Cavecche SECOND - Smith AYES - Smith, Cavecche, Dumitru, Bilodeau ABSENT (RECUSED) - Whitaker Moved to continue to no date certain. 12. ADJOURNMENT — The Agency Adjourned at 8:50 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 April 12, 2011 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. L_ a M Y E. URPHY AGENCY CLERK PAGE 5