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HomeMy WebLinkAboutRDA Agenda Packet 032409CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY AGENDA Tuesday, March 24, 2009 REGULAR SESSION 6 00 P M City Hall Council Chambers 6907 EI Camino Real Atascadero, California REGULAR SESSION 6 00 P M ROLL CALL. Chairperson O'Malley Vice Chairperson Kelley Board Member Beraud Board Member Clay Board Member Fonzi APPROVAL OF AGENDA. Roll Call COMMUNITY FORUM (This portion of the meeting is reserved for persons wanting to address the Board on any matter not on this agenda and over which the Board has jurisdiction Speakers are limited to three minutes Please state your name and address for the record before making your presentation The Board may take action to direct the staff to place a matter of business on a future agenda A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Board ) A. CONSENT CALENDAR. (All items on the consent calendar are considered to be routine and non -controversial by City staff and will be approved by one motion if no member of the Agency Board or public wishes to comment or ask questions If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Agency Board concerning the item before action is taken DRAFT MINUTES Agency meeting draft minutes are listed on the Consent Calendar for approval of the minutes Should anyone wish to request an amendment to draft minutes, the item will be removed from the Consent Calendar and their suggestion will be considered by the Agency Board If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of this meeting ) 1 Community Redevelopment Agency Draft Minutes —January 13, 2009 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of January 13, 2009 [Board Secretary] B PUBLIC HEARINGS None C MANAGEMENT REPORTS 1 Purchase of Chamber of Commerce Building - (6550 EI Camino Real) ■ Recommendations. The City Council recommends the Agency Board 1 Authorize the purchase of the building at 6550 EI Camino Real for $10,000 00, and, 2 Appropriate $11,225 00 in Redevelopment Agency Funds for the purchase and maintenance of the building, and 3 Authorize the Executive Director to execute an agreement with Atascadero Main Street for the lease of the building at 6550 EI Camino Real for $1 00 annually ■ Fiscal Impact: The total cost to the Agency is expected to be $11,225, $10,000 for the purchase of the building, $500 in repairs to the building, and $725 in sales tax for the purchase The City will also experience a loss of the $1,000 lease payment annually The Redevelopment Agency will receive a lease income of $1 00 annually from Atascadero Main Street. Consistent with Board policy to "Not approve any new appropriations without the elimination or reduction of a currently budgeted project or program," the Board eliminated the Downtown Pedestrian Bridge Project for a net reduction of $280,000 This proposed purchase falls within that net reduction and thus complies with the policy [Executive Director] BOARD ANNOUNCEMENTS AND REPORTS (On their own initiative, the Board Members may make a brief announcement or a brief report on their own activities Board Members may ask a question for clarification, make a referral to staff or take 2 action to have staff place a matter of business on a future agenda The Board may take action on items listed on the Agenda.) D ADJOURNMENT TO CITY COUNCIL MEETING 3 9 n n ITEM NUMBER RA A-1 DATE. 03/24/09 CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY DRAFT MINUTES Tuesday, January 13, 2009 REGULAR SESSION Chairperson O'Malley called the meeting of the Atascadero Community Redevelopment Agency to order at 6 00 p m ROLL CALL. Present: Board Members Beraud, Fonzi, Kelley and Chairperson O'Malley Absent: Board Member Clay was not present at opening due to a family matter, but will join the meeting in session Others Present: Board Secretary Manager Marcia McClure Torgerson and Recording Secretary Susanne Anshen Staff Present: Executive Director Wade McKinney, Assistant Executive Director Jim Lewis, Interim Director of Public Works Geoff English, Community Services Director Brady Cherry, Police Chief Jim Mulhall, Deputy Public Works Director David Athey, Administrative Services Director Rachelle Rickard, and City Attorney Brian Pierik. APPROVAL OF AGENDA. MOTION By Board Member Beraud and seconded by Board Member Fonzi to approve the agenda. Motion passed 4.0 by a roll -call vote. RDA Draft Minutes of 01/13/09 Page 1 of 5 5 ITEM NUMBER RA A-1 DATE. 03/24/09 COMMUNITY FORUM Pastor Tom Farrell, Atascadero Bible Church, offered a prayer Eric Greening spoke on the current economic slide and how the Redevelopment Agency will operate when land values are falling Chairperson O'Malley closed the Community Forum period. A. CONSENT CA LENDAR 1 Community Redevelopment Agency Draft Minutes — November 25, 2008 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of November 25, 2008 [Board Secretary] 2. Community Redevelopment Agency Draft Minutes — December 9, 2008 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of December 9, 2008 [Board Secretary] 3. Annual Report from Atascadero Main Street ■ Recommendation. Agency Board receive the Annual Report and Supplemental Report from Atascadero Main Street. ■ Fiscal Impact: None [Executive Director] MOTION By Board Member Beraud and seconded by Board Member Fonzi to approve the Consent Calendar Item #A-1 Motion passed 3:0 by a roll -call vote. (Board Members Beraud & O'Malley voted yes, and Kelley and Fonzi abstained; "In the event that one less than the necessary number of "aye" votes has been cast, then an abstention will constitute concurrence with the affirmative votes. '; as per AMC 2-1 15) Items #A-2&3 Motion passed 4.0 by a roll -call vote. Note Board Member Clay joined the meeting late Chairperson O'Malley called for a revote on Item No. A-1 MOTION By Board Member Clay and seconded by Board Member Beraud to approve the Consent Calendar Item No. A-1 Motion passed 3:0 by a roll -call vote. (Board Member Fonzi and Vice Chairperson Kelley abstained.) RDA Draft Minutes of 01/13/09 Page 2 of 5 n 9 ITEM NUMBER RA A-1 DATE. 03/24/09 B PUBLIC HEARINGS None. C MANAGEMENT REPORTS 1 Fiscal Year 2007-2008 Audit ■ Recommendation. Agency Board review and accept the financial audit for the period ending June 30, 2008 • Fiscal Impact: None [Executive Director] Administrative Services Director Rachelle Rickard gave the staff report and answered questions of the Board PUBLIC COMMENT - None MOTION By Board Member Clay and seconded by Board Member Fonzi to accept the financial audit for the period ending June 30, 2008. Motion passed 5.0 by a roll -call vote. 2. Purchase of Chamber of Commerce Building - (6550 EI Camino Real ■ Recommendation. Agency Board 1 Authorize the purchase of the building at 6550 EI Camino Real for $10,000 00, and, 2 Appropriate $11,500 in Redevelopment Agency Funds for the purchase and maintenance of the building ■ Fiscal Impact: The total cost to the Agency is expected to be $11,500, $10,000 for the purchase of the building, $500 in repairs to the building and $1,000 for the lease of land under the building from the City [Executive Director] City Manager Wade McKinney gave the staff report. Joanne Main Executive Director of the Atascadero Chamber of Commerce, Executive Director of the Atascadero Main Street Association Steve Martin, City Attorney Brian Pierik, and City Manager Wade McKinney answered questions Joanne Main, Executive Director of the Atascadero Chamber of Commerce, stated her concern with subleasing the building because of the expense the City may incur in relocating that tenant once the City requires use of the building Chairperson O'Malley asked the City Attorney about the City's potential liability should they require use of the property in the near future and need to relocate a tenant. City Attorney Brian Pierik stated the City would have the potential to pay relocation expenses RDA Draft Minutes of 01/13/09 Page 3 of 5 7 ITEM NUMBER RA A-1 DATE. 03/24/09 Steve Martin, Executive Director of the Atascadero Main Street Association, stated his board is aware of the potential for the City to use this property in the near future, however, they are willing to occupy the building, and they would find another location once the City required the premises Council Member Clay asked City Attorney Brian Pierik if a lease to Main Street could include their willingness to relocate should the City require the property City Attorney Brian Pierik stated he would have to research this issue as he is not clear whether the City could contract away that legal right. PUBLIC COMMENT Eric Greening asked about the timing of funding for the transit system tunnel project that would impact this location Sandy Jack asked if there could be a dollar limit placed on relocation expenses should the City renegotiate the lease with the Chamber of Commerce Chairperson O'Malley closed the Public Comment period. Chairperson O'Malley asked staff if it would be possible to include some of these costs in a transit center plan should this site be selection for a new transit center, because the Redevelopment Agency would have more flexibility here than a private party City Attorney Brian Pierik stated this is correct. Board Member Fonzi indicated the rental would cover the City's expense and it would be beneficial to the City to have the Atascadero Main Street's office in this location Vice Chairperson Kelley spoke in favor of rewriting the lease agreement, negotiating the terms of any sublease with Main Street, and thereby saving the City $10,000 at this time Chairperson O'Malley cautioned the Board that it would better serve the Agency to have staff research these issues and bring it back to the Agency at another time MOTION By Chairperson O'Malley to 1 Authorize the purchase of the building at 6550 EI Camino Real for $10,000 00, and, 2 Appropriate $11,500 in Redevelopment Agency Funds for the purchase and maintenance of the building Motion failed due to a lack of a second MOTION By Board Member Kelley and seconded by Board Member Clay to 1 Decline the purchase of the building at 6550 EI Camino Real for $10,000, RDA Draft Minutes of 01/13/09 Page 4 of 5 ITEM NUMBER RA A-1 DATE. 03/24/09 2. Renegotiate the lease agreement with the Atascadero **Wo l Chamber of Commerce to would allow for a sublease to Atascadero Main Street, revising the lease rate from the City to the Chamber of Commerce to a $100 a year, which would be conditioned upon legal review; 3. Direct staff to complete this process as soon as possible. Motion passed 3.2 on a roll -call vote. (Board Member Fonzi and Chairperson O'Malley opposed.) BOARD ANNOUNCEMENTS AND REPORTS None D ADJOURNMENT Chairperson O'Malley adjourned the Redevelopment Agency to the regularly scheduled City Council meeting at 6 47 p m MINUTES PREPARED BY Susanne Curtis Anshen, Recording Secretary RDA Draft Minutes of 01/13/09 Page 5 of 5 I en W" n ITEM NUMBER RA C-1 DATE. 3/24/09 Community Redevelopment Agency of Atascadero Staff Report - Executive Director Purchase of Chamber of Commerce Building (6550 EI Camino Real) RECOMMENDATIONS The City Council recommends the Agency Board 1 Authorize the purchase of the building at 6550 EI Camino Real for $10,000 00; and, 2. Appropriate $11,225 00 in Redevelopment Agency Funds for the purchase and maintenance of the building; and 3 Authorize the Executive Director to execute an agreement with Atascadero Main Street for the lease of the building at 6550 EI Camino Real for $1 00 annually DISCUSSION The Atascadero Chamber of Commerce has relocated to a new location, leaving their previous location vacant. The Chamber owns the building located at 6550 EI Camino Real and the City owns the property The Chamber pays an annual lease of $1,000 00 for the site The Chamber offered to sell the building to the Agency in August 2008 The Agency Board reviewed the offer and directed Staff to return to the Board with the cost of demolition, the cost of relocation, and whether Main Street or another possible tenant is willing to sign a flexible lease agreement such as a month-to-month Agency Staff returned to the Board in January 2009 with three quotes for demolition of the Chamber building. Main Street had expressed to Staff an interest in utilizing the facility and was flexible about terms. Staff recommended the Agency Board purchase the Chamber Building 11 ITEM NUMBER RA C-1 DATE. 3/24/09 The Agency Board declined the purchase of the Chamber Building and voted to recommend the City re -negotiate the lease agreement with the Chamber to allow for a sublease to Main Street, and revising the lease rate for the property to $1 00 annually Subsequently, Board Members of the Chamber of Commerce and Atascadero Main Street met to discuss possible options They approached City Staff with the following proposal Atascadero Main Street will purchase the Chamber building for $10,000 00, with a guaranteed 5 -year lease, with an additional 5 -year option, of the City property at $1 00 annually If the City chooses to terminate the lease of the property before the 5 -year lease is fulfilled, the City will be responsible for a pro -rated portion of the building's initial cost. For example, if the City terminates the 5 -year lease in 4 years, the City would be responsible for 1/5 of the building's initial cost, or $2,000 00 Main Street would waive any relocation benefits Main Street will not be responsible for removing the building at termination of the lease, this responsibility will transfer to the City Main Street's purchase of the building would impact their operating budget and possibly reduce the number of events they are able to manage The City Council reviewed this proposal on March 10, 2009 and recommended the Agency Board purchase the building and have Atascadero Main Street occupy the building for $1 00 annually FISCAL IMPACT The total cost to the Agency is expected to be $11,225, $10,000 for the purchase of the building, $500 in repairs to the building, and $725 in sales tax for the purchase The City will also experience a loss of the $1,000 lease payment annually The Redevelopment Agency will receive a lease income of $1 00 annually from Atascadero Main Street. Consistent with Board policy to "Not approve any new appropriations without the elimination or reduction of a currently budgeted project or program," the Board eliminated the Downtown Pedestrian Bridge Project for a net reduction of $280,000 This proposed purchase falls within that net reduction and thus complies with the policy ALTERNATIVES 1 The Agency could elect to not purchase the building. 2 The Agency could purchase the building and rent it to a private business at the current market rate 12 ITEM NUMBER RA C-1 DATE 3/24/09 ATTACHMENT Purchase Agreement 13 Attachment 1 PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT ("Agreement"), dated as of March , 2009, is entered into between the City of Atascadero Community Redevelopment Agency, California, a municipal corporation (hereinafter referred to as "Buyer") and Atascadero Chamber of Commerce, a California non-profit corporation (hereinafter referred to as "Seller"), with reference to the following facts RECITALS WHEREAS, Seller owns a modular building on land owned by the City of Atascadero, and has operated said modular building as a Chamber of Commerce at this location since on or about July 21,1973, and, WHEREAS, pursuant to the terms and conditions set forth herein, Seller desires to sell, and Buyer desires to purchase said modular building residing on said land located at 6550 EI Camino Real, Atascadero, California (hereinafter referred to "Owned Property"), and, WHEREAS, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, NOW, THEREFORE, the parties hereto agree as follows AGREEMENT 1 Sale of Owned Property Seller hereby sells, transfers, conveys and quitclaims to Buyer, and Buyer hereby purchases, accepts and assumes, all of Seller's right, title and interest in and to the Owned Property In consideration, Buyer shall pay $10,000 to Seller upon the execution and delivery of this Agreement by Seller Such sum shall be paid by check within thirty (30) days following the Execution Date The purchase and sale of the Owned Property shall be deemed effective as of the Effective Date The transfer of the Owned Property shall be evidenced by the parties' concurrent execution of a Bill of Sale, the form of which is attached hereto as Exhibit C All risk of loss with respect to the Tangible Personal Property shall be deemed transferred to Seller as of the Effective Date 2. Status of the Propertv — "As Is", No Representations or Warranties. Seller represents and warrants that it has good and marketable title to the Owned Property and that the Owned Property is sold and transferred to Buyer free and clear of all liens, claims and/or encumbrances of whatever kind or nature, other than usual and customary liens for property taxes not yet due and payable and for transfer taxes that may arise upon the sale of the Owned Property 14 3. Indemnification Obligations. a. Seller indemnifies Buyer against, and holds Buyer harmless from, any and all losses, claims, expenses, costs, causes of action or obligations (including reasonable attorneys fees) incurred in connection with, or arising from (i) Seller's ownership, possession, use or operation of the Owned Property during any period ending on or prior to the Effective Date, or (ii) Seller's breach of any of its representations, warranties or covenants under this Agreement. b Buyer indemnifies Seller against, and holds Seller harmless from, any losses, claims, expenses, costs, causes of action or obligations (including reasonable attorneys fees) incurred in connection with, or arising from (i) Buyer's ownership, possession, use, operation or disposition of the Owned Property during any period commencing on or after January , 2009, or (ii) Buyer's breach of any of its representations, warranties or covenants under this Agreement. 4 Governing Law The parties agree that the laws of the State of California shall govern this Agreement. Buyer and Seller agree that any suit brought by either party against the other arising out of the performance of this Agreement shall be brought and maintained in the Superior Court.of California, In and For the County of San Luis Obispo 5 Notices. Any notices, payments or consents required or desired to be served or given by either party upon the other shall be addressed to the respective parties as set forth below - Buyer Seller Executive Director Executive Director Atascadero Community Redevelopment Agency Chamber of Commerce 6907 EI Camino Real 6904 EI Camino Real Atascadero, CA 993422 Atascadero, CA 993422 Or the respective parties shall designate such addresses as from time to time 6. Heading Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement. 7 Multiple Counterparts. This Agreement may be executed in any number of counterparts and the signatures delivered by telecopy, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 15 8. Further Assurances. The parties agree to cooperate with each other and to execute, deliver and record such other agreements and documents and to take such other actions as are reasonably necessary or helpful to more effectively consummate the transactions contemplated under this Agreement and to carry out its purpose and intent. Upon reasonable notice, Seller shall provide Buyer with reasonable access to, and allow it to copy, any books and records concerning the Tangible Personal Property as are in Seller's possession or control 9 Entire Agreement: This Agreement and exhibits contains the entire agreement between Buyer and Seller All previous proposals and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement No future waiver of, or exception to any of the terms, conditions, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by all the parties 10. Partial Invalidity If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way 11 Waiver. The waiver by any party to this Agreement of a breach of any provision hereof, shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof, unless specifically stated in writing 12. Execution. The undersigned acknowledge having read and understood the foregoing IN WITNESS WHEREFORE, the parties hereto have executed this agreement on the day and year above and below written. Community Redevelopment Agency Atascadero Chamber of Commerce Date , 2009 Date By- By - Wade McKinney, Executive Director ATTEST By - Marcia Torgerson, City Clerk 16 0I11;'7 Joanne Main, Executive Director EXHIBIT A BILL OF SALE For valuable consideration, the receipt of which is acknowledged, Atascadero Chamber of Commerce, a California non-profit corporation ("Seller"), hereby sells, conveys, transfers and quitclaims to City of Atascadero Community Redevelopment Agency, California, a municipal corporation ("Buyer"), all of Seller's right, title and interest in and to the "Owned Property" Such sale, conveyance, transfer and quitclaim shall be deemed effective as of March , 2009 The Owned Property is being transferred "as is," "where is" and with "all faults," and Buyer shall have no recourse against Seller The Owned Property is being delivered free and clear of all liens, claims and/or encumbrances of whatever kind other than transfer taxes due and owing as a result of the transfer of ownership of the Owned Property Seller expressly disclaims any representations or warranties as to the value, condition or functionality of the Owned Property or its suitability for any particular purpose This Bill of Sale shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts made and to be performed wholly within such State, without giving effect to the conflict of laws principles thereof This Bill of Sale may be executed in any number of counterparts and the signatures delivered by telecopy, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Community Redevelopment Agency Date , 2009 0 Wade G McKinney, Executive Director ATTEST Marcia McClure Torgerson, City Clerk Atascadero Chamber of Commerce Date is , 2009 Joanne Main, Executive Director 17 0