The URL can be used to link to this page

Home My WebLink AboutRDA 071409Approved September 22, 2009 1918 _ 19 9 CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY MINUTES Tuesday, July 14, 2009 REGULAR SESSION 6 00 P M City Hall Council Chambers 6907 EI Camino Real, Atascadero, California REGULAR SESSION 6 00 P M Chairperson O'Malley called the meeting to order at 6 08 p m ROLL CALL Present: Board Members Beraud, Clay, Fonzi, Vice Chairperson Kelley and Chairperson O'Malley Others Present: Board Secretary Marcia McClure Torgerson Staff Present: Executive Director Wade McKinney, Assistant Executive Director Jim Lewis, Police Chief Jim Mulhall, Community Development Director Warren Frace, Administrative Services Director Rachelle Rickard, Public Works Director Russ Thompson, and City Attorney Brian Pierik. APPROVAL OF AGENDA. MOTION By Board Member Beraud and seconded by Board Member Clay to approve the agenda. am Motion passed 5.0 by a roll -call vote. RDA Minutes 7/14/09 Page 1 of 7 Approved September 22, 2009 COMMUNITY FORUM Jerry Hickman, pastor of New Hope Christian Fellowship, led those present in prayer Chairperson O'Malley closed the COMMUNITY FORUM period. A. CONSENT CALENDAR 1 Community Redevelopment Agency Draft Minutes —June 9, 2009 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of June 9, 2009 [Board Secretary] MOTION By Board Member Beraud and seconded by Board Member Fonzi to approve the Consent Calendar Motion passed 5.0 by a roll -call vote. B PUBLIC HEARINGS None. C MANAGEMENT REPORTS 1 Colony Square Loan Guarantee Agreements ■ Fiscal Impact: Up to $1 5 million of budgeted Redevelopment Agency funds will be pledged ■ Recommendations. Agency 1 Authorize the Executive Director to execute a Loan Guarantee Agreement subject to approval by the City Attorney as to form of the bank's loan agreement and related loan documents, and, 2 Authorize the Executive Director to execute a Reimbursement and Indemnification Agreement between the Atascadero Redevelopment Agency and James Harrison and Peter Hilf, the owners of the Colony Square project. [Executive Director] Assistant Executive Director Jim Lewis gave the staff report and answered questions of the Board During the staff report, Mr Lewis introduced Anita Robinson, President and Chief Executive Officer of Mission Community Bank. Ms Robinson thanked the Agency Board for allowing her to work with them on coordinating these agreements She answered additional questions from the Board Mr Lewis explained that the original theatre owner dropped out of the project last week and another theatre owner has stepped in Mr Lewis introduced Frank Rimkus, Chief RDA Minutes 7/14/09 Page 2 of 7 Approved September 22, 2009 Executive Officer of Galaxy Theatres Mr Rimkus stated that he and his company are excited to build a theatre in Atascadero He explained about his company and the am services they will provide City Attorney Brian Pierik explained his two recommended amendments to the agreements Loan Guarantee Agreement There is a provision that needs to be added to this agreement regarding a deposit by the Agency of $1 5M with Mission Community Bank that was referenced in the staff report but was not included in the Agreement. Mr Pierik stated that he and Ms. Robinson will work together on this language Staff's recommendation should read Board authorize the Executive Director to execute a Loan Guarantee Agreement subject to approval by the City Attorney as to form of the bank's loan agreement and related loan documents and to an additional provision to the Loan Guarantee Agreement regarding a deposit by the Agency with Mission Community Bank and other non -substantive revisions to the Loan Guarantee Agreement. Reimbursement and Indemnification Agreement Staff's recommendation should read Board authorize the Executive Director to execute a Reimbursement and Indemnification Agreement between the Atascadero Redevelopment Agency and James Harrison and Peter Hilf, the owners of the Colony Square project, subject to approval by the City Attorney of language to be added the Agreement regarding the bank sharing financial information with the Agency in the event of default on the loan and other non - substantive revisions to the Reimbursement and Indemnification Agreement. Chairperson O'Malley asked the City Attorney if the Board needed to announce Ex Parte communications The City Attorney responded that they are not required to, but they can if they wish Ex Parte Communications. Vice Chairperson Kelley announced that he has been in contact with Mr Harrison, he met with Mr Rimkus today, and he has met with Ms Robinson a few times Board Member Fonzi announced that she has met with Mr Harrison, Mr Rimkus, and various members of the community Board Member Clay announced that he has spoken with Dr Harrison Chairperson O'Malley announced that he has had meetings over the last seven years concerning this project. He has spoken to Dr Harrison, Mr Hilf, and Mr Rimkus RDA Minutes 7/14/09 Page 3 of 7 Approved September 22, 2009 PUBLIC COMMENT David Bentz expressed his concern if there are any plans to handle cost overruns Len Colamarino said that he is excited about this project but urged the Board to make sure that the risks are minimized Mike Jackson stated that he is concerned with the short term construction loan He asked that if the construction takes longer than expected, are we prepared Bob Wilkins stated that Atascadero has needed an attitude adjustment for some time He expressed his pleasure with the persistence everyone has exhibited in getting this project moving ahead Joanne Main, Atascadero Chamber, said she has faith in the banks involved, and encouraged the Board to move ahead Tino Santos said he is happy to see this project moving ahead Chairperson O'Malley closed the Public Comment period. Ms Robinson answered additional questions from the Board MOTION By Board Member Beraud and seconded by Vice Chairperson Kelley to 1 Authorize the Executive Director to execute a Loan Guarantee Agreement subject to approval by the City Attorney as to form of the bank's loan agreement and related loan documents and to an additional provision to the Loan Guarantee Agreement regarding a deposit by the Agency with Mission Community Bank and other non - substantive revisions to the Loan Guarantee Agreement; and, 2. Authorize the Executive Director to execute a Reimbursement and Indemnification Agreement between the Atascadero Redevelopment Agency and James Harrison and Peter Hilf, the owners of the Colony Square project, subject to approval by the City Attorney of language to be added the Agreement regarding the bank sharing financial information with the Agency in the event of default on the loan and other non -substantive revisions to the Reimbursement and Indemnification Agreement. Motion passed 5.0 by a roll -call vote. (#1 RA 002-2009, #2 RA 003-2009) RDA Minutes 7/14/09 Page 4 of 7 Approved September 22, 2009 2. Determination for Low/Moderate Income Housing Fund ■ Fiscal Impact: None ■ Recommendation Agency Board adopt the Draft Resolution determining that the planning and administrative expenses funded from the Low and Moderate Income Housing Fund are necessary for the production, improvement, and/or preservation of affordable housing for low and moderate income households [Administrative Services] Administrative Services Director Rachelle Rickard gave the staff report and answered questions from the Board PUBLIC COMMENT None MOTION By Board Member Clay and seconded by Board Member Beraud to adopt the Draft Resolution determining that the planning and administrative expenses funded from the Low and Moderate Income Housing Fund are necessary for the production, improvement, and/or preservation of affordable housing for low and moderate income households. Motion passed 5.0 by a roll -call vote. (Resolution No. 2009- 003) 3. Tourism, Events and Marketing Action Plan ■ Fiscal Impact: Current budgeted funds will be redirected to this effort. Total funding will be $125,000 This is a pilot program and AdPro is uniquely qualified to provide these services because of its relationship with Atascadero Main Street. Therefore staff is asking the Council to waive the formal process consistent with Section 3 0(f) of the City's purchasing policy ■ Recommendations. Agency Board 1 Authorize the Executive Director to execute a contract with AdPro for a pilot program for Tourism, Marketing and Event services not to exceed $133,000 and waive the formal process consistent with Section 3 0(f) of the City's purchasing policy; and, 2 Authorize the Executive Director to execute a revised services agreement with Atascadero Main Street. [Executive Director] Executive Director Wade McKinney gave the staff report and answered questions of the Board PUBLIC COMMENT Ann Ketcherside questioned why Main Street is getting additional funding when people are being laid off RDA Minutes 7/14/09 Page 5 of 7 7-1 Approved September 22, 2009 David Bentz suggested that the Board not waive the formal bidding process on this proposal Barbie Butz, representing the Main Street Board, read a prepared statement from the Main Street Board asking the Agency Board to postpone taking action tonight to allow them more time to determine how this new program would affect their ability to become a Certified Main Street. (Exhibit A) Len Colamarino stated that he was glad to hear that the Main Street Board was asking for this process to slow down He also recommended that it should be City staff that manages the tourism effort. Joanne Main stated that the Chamber and Main Street have developed a great working relationship over the years She said that Steve Martin is very qualified to take on this project. Ms Main stated that this consultant needs to continue the regional efforts already in place She urged the Board to implement this program Sandy Jack agreed with Joanne Main's comments He also agreed with the Main Street Board's request to postpone the decision on this proposal tonight Steve Martin summarized the history of the tourism efforts in Atascadero He stated that since there is some concern with the City choosing him to head this program, he would be glad to submit his proposal to an RFP process and challenge any other group or individual to do the type of work that he intends to do for that amount of money Mr Martin said that regardless of the Board's action tonight, he will continue to promote Atascadero as an individual and as a business person Mr Martin answered questions of the Board Chairperson O'Malley closed the Public Comment period. There was Board consensus to direct Executive Director McKinney to continue towards the proposed program by meeting with Main Street and the Chamber and come back to the Board with a united proposal. BOARD ANNOUNCEMENTS AND REPORTS None RDA Minutes 7/14/09 Page 6 of 7 Approved September 22, 2009 D ADJOURNMENT TO CITY COUNCIL MEETING Chairperson O'Malley adjourned the meeting at 8.23 p m MINUTES PREPARED BY Marcia McClure Torgerson, C M C Board Secretary / City Clerk / Assistant to the City Manager The following exhibit is available for review in the City Clerk's office Exhibit A — Letter dated July 14, 2009 to Board from Atascadero Main Street Board of Directors RDA Minutes 7/14/09 Page 7 of 7