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HomeMy WebLinkAbout8_22_2006 - ORA MinutesAPPROVED BY THE DIRECTORS ON SEPTEMBER 12,2006 ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA MINUTES OF A REGULAR MEETING August 22, 2006 The Orange Redevelopment Agency of the City of Orange, California convened on August 22, 2006 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 -ABSENT - Smith, Murphy, Cavecche, Dumitru None 2. PUBLIC COMMENTS - None.3. CONSENT CALENDAR 3.1 Request Agency confirmation of warrant registers dated August 3, 8 and 10, 2006.ACTION:Approved.3. 2 Request approval of Redevelopment Agency Minutes, Regular Meeting, August 8, 2006.ACTION:Approved.3. 3 Cooperation Agreement between the City of Orange and the Orange Redevelopment Agency for the Agency to pay a portion of the costs associated with a Consultant Services Agreement with Hogle-Ireland, Inc. to provide expedited planning services for economic development and redevelopment projects.RA2100.0 Agr-4954)See related City Council Minutes Item No. 3.9)SUMMARY: In a companion agenda report, the City Council is considering approval ofa Consultant Services Agreement with Hogle-Ireland, Inc. to provide current and advance planning services for the Planning Division. The proposed Cooperation Agreement would provide for the Agency to pay for a portion of the costs associated with Hogle-Ireland, Inc.to expedite planning review and processing in an amount not to exceed $50, 000. ACTION:I. Approved the Cooperation Agreement between the City and Agency for the Agency to pay for a portion of costs associated with a Consultant Services Agreement with Hogle-Ireland, Inc. and authorized the Chairman and the Agency Clerk to execute all necessary documents on behalf of the Agency.2. Appropriated $40,000 from the unreserved fund balance of the Orange Merged Capital Projects Fund to account 940-9800- 426700 (Other Professional and Consulting Services) and appropriate $10,000 from the unreserved fund balance of the Orange Merged Housing Fund to account 941-9800- ORANGE REDEVELOPMENT AGENCY MINUTES August 22, 2006 3. CONSENT CALENDAR (CONTINUED) FISCAL IMPACT: Sufficient funds are available in the Orange Merged Capital Projects Fund and Orange Merged Housing Fund. MOTION -SECOND AYES Dumitru Smith Smith, Murphy, Cavecche, Dumitru All items were approved as recommended.END OF CONSENT CALENDAR 4. REPORTS FROM DIRECTORS - None.5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None.6. REPORTS FROM EXECUTIVE DIRECTOR - None.7. ADMINISTRATIVE REPORTS 7. 1 Report from the Community Development Director - Second Amendment to Development Agreement by and between the City of Orange and CA- The City Limited Partnership. (Note: This item was heard at the 7:00 p.m. session. See related City Council Minutes Item No. 13.1) ( RA2100.0 Agr-4545.2)SUMMARY: CA- The City Limited Partnership, an affiliate of Equity Office Properties (EOP)is requesting approval of a Second Amendment to Development Agreement. (DA) to extend certain dates related to reaching an agreement with Orange City Mills Limited Partnership Mills) regarding development adjacent to properties owned by EOP and for the payment of certain Public Benefit Fees related to approved projects. The proposed Second Amendment to the DA retains the same development rights for the original 10-year period.MOTION - Murphy SECOND - Cavecche AYES - Smith, Murphy, Cavecche, Dumitru Moved that the proposed Second Amendment to the Development Agreement promotes the policies and purposes of the Amended and Restated Redevelopment Plan for the Orange Merged and Amended Redevelopment Project and recommended that the City Council take action on the request for the Second Amendment to Development Agreement. ORANGE REDEVELOPMENT AGENCY MINUTES August 22, 2006 7. ADMINISTRATIVE REPORTS (CONTINUED) FISCAL IMPACT: Approving the Second Amendment to Development Agreement and implementation of the projects will not have any adverse impact on Agency Funds or the City's General Fund for the following reasons: l. The two projects are subject to fees so that the cost of the on-site and public improvements related to site development shall be borne by the applicant and/or site developer.2. The applicant/developer shall assign sales tax point of sales locations to the City of Orange so that the City will receive assignment of the local allocation of sales tax (this applies to taxable purchases related to the construction of the new office buildings and installation of new office equipment).7.2 Report from the Assistant Executive Director - Establishment of Small Business Assistance Programs for the Orange Merged and Amended Redevelopment Project Area and termination of the West Chapman Reinvestment Program and Old Towne Restaurant Minor Rehabilitation Program. (C2500.G.1.10) SUMMARY: The adoption of Resolution No. ORA-0456 will (1) establish six Small Business Assistance Programs to provide loans to property owners or tenants for the purpose of rehabilitating commercial buildings or structures within the Orange Merged and Amended Redevelopment Project Area; (2) appropriate $500,000 for use for the programs; and ( 3)terminate the Agency's West Chapman Reinvestment Program and the Old Towne Restaurant Minor Rehabilitation Program.Discussion -Assistant Executive Director Jim Reichert and Project Manager, Barbara Messick presented information on the six Small Business Assistance Programs that would replace the West Chapman Reinvestment and Old Towne Restaurant Minor Rehabilitation Programs:Property Improvement Loan Program - Interest free loan providing up to $250,000 for exterior fayade and other on-site property improvements;Old Towne Retail loan Program - Providing loans up to $60,000 at a very low 3% interest for new or existing businesses in the Old Towne Historic District to address interior deficiencies, e.g., ADA improvements, etc.; Signage Incentive Program - Interest free, matching loan, up to $30,000-Agency contributes 60% and applicant contributes 40% of funding for design and replace signs; Landscape Enhancement Incentive Program - Interest free, matching loan up to $60,000-Agency contributes 60% and applicant contributes 40% for enhancements to commercial properties; Restaurant Equipment Incentive Program-Interest free, up to $30,000 to install or upgrade grease traps for food service establishments to capture fats, oils and grease before entering the City's sewer line; Fee Reduction Incentive Program-Interest free, up to $15,000 to offset the cost for the City's development fees, e.g., planning, parking, fire/police facility, etc. ORANGE REDEVELOPMENT AGENCY MINUTES August 22, 2006 7. ADMINISTRATIVE REPORTS (CONTINUED) Ms. Messick stated that a portion or the entire loan can be forgiven upon meeting performance conditions, negotiated with the applicant at the time of application. A brochure will be created to market the programs in areas where the demand is greatest and establishment of an Internal Loan Committee consisting of the Economic Development Director; Finance Director, or designee; City Attorney, or designee; and two members of the Economic Development project staff. This committee would review the loan application, recommend approval and determine the appropriate funding amounts and loan terms. Ms. Messick requested approval for the Economic Development Director to approve loans up to 60,000. She concluded her remarks stating that notification to Council would occur upon review of each application and upon direction, Council would consider the application at a future meeting. Speakers - Those speaking in favor of the programs:Cheryl Turner, Old Towne business owner, 119 S. Glassell Steve Thorp, Burnham USA Equities Al Ricci, 940 W. Chapman Avenue John Aschieris, 401 and 403 W. Chapman Avenue.Mayor pro tem Cavecche wanted to ensure that the Council be notified as applicants come forward. She also requested that the Public Works Department identify the sewer system hot spots and target those businesses for this program. She added that the West Chapman area is in need of attention and the fee incentive program would greatly help the blighted area; noting that this is a good use for redevelopment funds.Councilmember Smith indicated her support of the program, suggesting that the planned brochure be very clear about the established Design Review and permit process, and emphasize sensitivity to existing historic buildings. She suggested publicizing incentives for those who use the fayade restoration designs developed by the Design Collaborative-a 20- member architectural team that designed a storefront fayade restoration for each storefront in the historic district. She noted that upgrades for ADA requirements do not need to destroy historic buildings. She encouraged the collaboration between the Economic Development, Community Development and Public Works Departments to move the incentive loan projects through the system smoothly and quickly; and suggested Mr. Al Ricci be included on the committee to develop the vision for the area.Mayor Murphy commented that he is encouraged by the revisions to the program, noting that staff talked with businesses and gathered input before developing this program. ORANGE REDEVELOPMENT AGENCY MINUTES August 22, 2006 7. ADMINISTRATIVE REPORTS (CONTINUED) RESOLUTION NO. ORA- 0456 A Resolution of the Orange Redevelopment Agency establishing Small Business Assistance Programs under Health and Safety Code Section 33444.5 for the Orange Merged and Amended Redevelopment Project Area and terminating the West Chapman Reinvestment Program and Old Towne Restaurant Minor Rehabilitation Program.MOTION - Murphy SECOND - Cavecche AYES - Smith, Murphy, Cavecche, Dumitru Moved to 1) Approve Resolution No. ORA-0456, noting additional suggestions made by Council; and 2) Appropriate $500,000 from unappropriated reserves in the Orange Merged Capital Projects Fund (940) to Account No. 940-9800-485702-9874 (Orange Small Business Assistance Programs).8. LEGAL AFFAIRS - None.9. 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.10. ADJOURNMENT - The Agency adjourned at 7:50 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 August 22, 2006 at Orange Civic Center kiosk, Police facility at 1107 North Batavia, Shaffer Park; 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. ft. ~ M~5:HY AGENCY CLERK I/{AfA r::i~ CHAIRMAN 5