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HomeMy WebLinkAboutAG RPTS 2001 0321 RDA REGJ `/ ESTABLISHED l KUM it tin elf — of Resolution No. 2001 -97 MOORPARK REDEVELOPMENT AGENCY REGULAR MEETING AGENDA WEDNESDAY, MARCH 21, 2001 6:30 P.M. Moorpark Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3. PUBLIC COMMENT: 4. PUBLIC HEARING: 5. PRESENTATION /ACTION /DISCUSSION: A. Consider Relocation of Chamber of Commerce Offices to High Street. Staff Recommendation: Direct staff as deemed appropriate. B. Consider the Purchase of Real Property at 500 Spring Road from M. V. Smith for a Site for a City Police Facility, Determine that the Use of Redevelopment Funds Complies with Section 33445 of the Community Redevelopment Law, and Adopt Resolution No. 2001 - Amending the Agency Budget and Appropriating $1,868,714 from Agency Tax Increment Bond Proceeds. Staff Recommendation: 1) Determine that the proposed use of Redevelopment funds is consistent with applicable Redevelopment Law Section 33445; and 2) Adopt Resolution No. 2001- appropriating $1,848,714 in Agency Tax Increment Bond Proceeds for the purchase of said property. (ROLL CALL VOTE REQUIRED) NOTE: THIS ITEM WILL BE CONSIDERED JOINTLY BY THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY. 6. CONSENT CALENDAR: Redevelopment Agency Agenda March 21, 2001 Page 2 A. Consider Approval of Minutes of Regular Meeting of February 7, 2001. Consider Approval of Minutes of Special Meeting of February 21, 2001. Staff Recommendation: Approve minutes as processed. B. Consider the Fiscal Year 1999 /2000 Annual Financial Statements. Staff Recommendation: Receive and file the Agency's annual financial statements for the year ended June 30, 2000. 7. CLOSED SESSION: A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Subdivision (c) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) B. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9) Mission Bell Plaza Phase II, LLC, a California limited partnership vs. Redevelopment Agency of the City of Moorpark. (Case No. SCO28906) 8. ADJOURNMENT: -------------------------------------------------------------------------------------------- Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or a Presentation /Action /Discussion item. Speakers who wish to address the Agency concerning a Public Hearing or Presentations /Action/ Discussion item must do so during the Public Hearing or Presentations /Action /Discussion portion of the Agenda for that item. Speaker cards must be received by the City Clerk for Public Comments prior to the beginning of the Public Comments portion of the meeting and for Presentation /Action /Discussion items prior to the beginning of the first item of the Presentation /Action /Discussion portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Presentation /Action /Discussion item speaker. A limitation of three to five minutes shall be imposed upon each Public Hearing item speaker. Written Statement Cards may be submitted in lieu of speaking orally for open Public Hearings and Presentation /Action /Discussion items. Copies of each item of business on the agenda are on file in the office of the City Clerk and are available for public review. Any questions concerning any agenda item may be directed to the City Clerk at (805) 517 -6223. In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk's Department at (805) 517 -6223. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (CFR 35.102 - 35.104 ADA Title II). STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss CITY OF MOORPARK AFFIDAVIT OF POSTING I, La-Dell VanDeren, declare as follows : That I am the Deputy City Clerk of the City of Moorpark and that a notice for a Regular meeting of the Moorpark Redevelopment Agency to be held March 21, 2001, at 6 : 30 p.m. in the Council Chambers of the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California, was posted on March 16, 2001, at a conspicuous place at the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California. I declare under penalty of perjury that the foregoing is true and correct . Executed on March 16 , 2001 . La-Dell VanDeren, Deputy City Clerk MOORPARK REDEVELOPMENT AGENDA REPORT ITEM 5• A• W� CITY OF MOORPARK, CALIFORNIA Redevelopment Agency Meeting of— 3— c;�1 -aoo/ ACTION: tn/RCLS715l-1 snagcc70 move, !=o Rcu.4 w, cu;7H Trl&-- cNr,�mB�e of Co,y /NG/_t./O /N6 fi/Y+enPrrienTS RE(oAAdirAb B � y AGENCY G `�� ✓ TO: The Honorable City Council FROM: Steven Kueny, City Manager DATE: March 15, 2001 (CC Meeting of March 21, 2001) SUBJECT: Relocation of Chamber of Commerce Offices to High Street At the February 7, 2001 meeting, the proposal to lease 18 High Street to the Moorpark Chamber of Commerce was tabled at the request of the Chamber. Since that time, both parties have evaluated the various options and related information. Mayor Hunter and the Moorpark Chamber of Commerce Chairman of the Board, Scott Green, have had discussions on this matter and have prepared a new proposal that appears to be acceptable to the Chamber of Commerce Board and Charles Abbott Associates. Additional information will be provided at the meeting. A copy of the prior report is attached. STAFF RECOMMENDATION: Direct staff as deemed appropriate. SK:db Attachment M: \ccagenda \Relocation of Chamber 03 2001 r ti ITEM S7 e • i" MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT TO: Honorable Chair and Board Members From: 1. Hugh R. Riley, Assistant Executive Director 1 DATE: February 1, 2001 (Meeting of 2/7/01) SUBJECT: Relocation of Chamber of Commerce Offices to High Street Background: Staff has examined the feasibility of locating the Moorpark Chamber of Commerce Offices in the Redevelopment Agency - owned building at 18 High Street. Two scenarios for such a move were analyzed. These were the Chamber's independent lease of the building and the sharing of the building space with certain city staff to be assigned. Either scenario would require Abbott & Associates, the current tenant in the building to relocate. Discussion: EXISTING OFFICES - The Chamber of Commerce office is presently located at 225 W. Los Angeles Avenue. This site has 885 square feet. The Chamber pays rent at a rate of $.90 per square foot ($796.50) plus a charge for common area maintenance of $250. The current total rent is $ 1,046 per month. The existing lease is on a month -to -month basis. The Chamber's monthly cost for utilities and services is $196.50 including electricity, gas and security system. 000?. Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 2 EXCLUSIVE USE OF 18 HIGH ST. - the Moorpark Redevelopment Agency owns the office building at 18 High Street. The building has a usable area of approximately 1,600 square feet and is presently leased to Charles Abbott & Associates (Abbott) for the City's Engineering and Building Safety services. Abbott pays the Agency $1,500/ month rent ($.94 /sq. ft.) . Generally accepted market rates for office space in this area is $.95 to $1.00/ Sq. Ft. The building has adequate parking for staff and customers and can be remodeled for use by the Chamber of Commerce. Current utility and service costs for 18 High Street are $293 per month ($3,516 /year) including $183 per month paid by Abbott for electric service. This is somewhat more than the Chamber's current monthly utility cost ($196.50) for electricity, gas and security at the existing location. The Agency pays about $42 per month for water and sewer service and $68 per month for landscape maintenance at the building. There are no charges for trash pick -up at this building as per the City's Franchise Agreement. Rent for the entire 1,600 Sq. Ft. at the market rate ($1.00/ Sq. Ft.) would be $1,600 per month or $19,200 per year. This exceeds the existing office rent by $554 per month. Rent for the entire building at the rate being paid by the current tenant ($.9375/sq. ft.) would be $1,500 which exceeds the Chamber's existing rent by $454 per month. Rent at $1,000 per month plus the utilities now being paid by the Agency estimated at $110 per month would be exceed the Chambers current monthly cost by only $46 excluding tenant improvements. An estimate of the cost to remodel the building for use by the Chamber of Commerce is $10,000 including new walls and doorways to provide separate conference room space, new carpeting, ceiling and lighting modifications, signs and other minor improvements. The Chamber owns sufficient serviceable office partitions and equipment including a copier to permit them to duplicate their existing office arrangements at 18 High Street. If the Chamber of Commerce is not in a position to pay for the required remodeling, the Redevelopment Agency could consider advancing the cost of the necessary tenant 000),3 Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 3 improvements. In this instance a financing provision with 5% simple interest could be incorporated into the lease that would amortize the $10,000 remodeling costs over a 5- year period. SUMMARY OF MONTHLY COSTS FOR EXCLUSIVE USE COST /SQ. FT. RENT UTILITIES TOTAL Existing Offices: $ .90 +Com. Area $1,046 $ 196.50 $1,243 , 18 High Street : $1.00 (market) $1,600 $ 293.00 $1,889 $ .9375 (Abbott) $1,500 $ 293.00 $1,789 $ .90 $1,440 $ 293.00 $1,729 $ .63 $1,000 $ 293.00 $1,289 If the Redevelopment Agency rents the entire building at 18 High Street to the Chamber of Commerce for the same monthly rent and utilities being paid by Abbott, there would be no fiscal impact to the Agency. If the Agency provided the space for the same rent now being paid by the Chamber at LA Avenue ($ .90/ sq. ft.) the Agency would receive $454 per month or $5,448 per year less assuming the Chamber paid the utilities costs. This cost would increase if the agency accepted a lesser rent and does not include cost to finance tenant improvements at an interest rate that is less than the City's current investment rates. SHARED USE OF 18 HIGH STREET - An alternative to renting the entire building at 18 High Street to the Chamber would be to divide the building and provide common areas to be shared by the Chamber with certain City staff. This alternative provides two advantages. 1) It provides needed office space for the city and, 2) it helps offset the lower rent associated with providing space to the Chamber. The disadvantages of sharing space include: 1) separating 4 or 5 City Staff from City Hall; 2) sharing space with a non - government agency; and 3) the increased cost. Depending on the number of City staff to be located in the building, the space might be arranged as follows: Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 4 Chamber of Commerce - City Staff Shared Space TOTAL 450 square feet 592 square feet 560 square feet 1,600 square feet Shared space would include a conference room, restrooms and storage area. `The two agencies could maintain separate entrance and reception areas with joint -use parking. An example of the rent provision for shared space scenario could be, rental of 450 square feet (exclusive space) to the Chamber 'at $.90 and 560 square feet (shared space) at $.45 for a monthly rent of $657. The Chamber would pay 50% of the utility costs for the building ($148), reducing their overall monthly cost from $1,243 to $ 805. When the rent and utilities, excluding telephone, are added to the five year amortized cost of the tenant improvements ($192.50), the monthly cost is $ 997.50 compared to the current monthly cost of $ 1,243. Remodeling the building for use by City staff would require additional partitions and alterations to ceiling, lighting carpeting. Costs for these improvements are estimated to be $25,000 over and above the $10,000 needed for improvements for exclusive occupancy by the Chamber. Additional furnishing and equipment costs including the installation of the city's telephone and data processing systems are detailed as follows: Furnishings $12,000 Network Cable (data) $ 6,000 Phone System $ 3,500 Fax, printer etc. $ 2,000 TOTAL $21,000 The additional monthly cost for telephone service for city staff would be $250. The shared use alternative presents the following cost features to the City /Agency: TOTAL COSTS: Annual Recurring costs (phone & utilities $ 4,758 One time remodel costs $ 25,000 Furnishings $ 12,000 ( 'I. , 0 r- L Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 5 Equipment costs $ 11,500 First year cost $ 53,758 Net Loss Annual Revenue $ 10,116 Annual Cost to Agency -5 years $ 24,574* * One -time remodeling, furnishing and equipment costs amortized over 5 years + Annual Recurring Costs + Net Increase /loss in Annual Revenue ANNUAL COST TO CHAMBER COMPARISON Existing 18 High St. 18 High St Location (sole tenant) Shared /City Rent $ 12,552 $ 12,000* $ 7,884 @ $1,000 /mo.) Util $ 2,358 $ 3,516 $ 1,776 T.I. -0- $ 2,310 $ 2,310 TOTAL $ 14,910 $ 17,826 $ 11,970 * Chamber to pay costs for water, sewer and landscape maintenance at a current cost of $110 per month. These alternatives are based on current costs and projected for an occupancy period of five years without CPI increases that would normally be included in a new Agency property lease. CONCLUSION: Sharing the office space at the 18 High Street building presents the least costly alternative for the Chamber to locate its offices on High Street. However it increases cost to the Agency /City and requires the relocation of certain City Staff away from City Hall. The Chamber would be paying less rent than they pay now , and could afford the amortization for the non - agency share of the remodeling costs. Rent, utilities and copier sharing arrangements would be negotiable. /. {. _ ,t: -► Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 6 Exclusive use of the building would mean higher costs the Chamber by $2,916 more annually than they currently pay, however they would have almost twice the square footage and 12 parking spaces. Staff Recommnendation: 1. Offer a lease of the building at 18 High Street with the following provisions: a. Monthly rent fixed at $1,000 per month for three years. b. . Review after three years. C.1 Chamber to pay for all utilities and landscape maintenance. d. No subletting provision. 2. Advance up to $10,000 for tenant improvements to be repaid over a 5 -year period at 5% simple interest. If the building is vacated by the Chamber at the Agency's request prior to the end of the five year period, the Agency would absorb the balance due. If the Chamber vacates the premises at other than the Agency's request prior to the end of the five years the balance would be due and payable to the Agency. 3. Provide Notice to Charles Abbott & Associates to relocate by April 30, 2001 or before if mutually convenient for interested parties. ITE M • Be W� CITY OF MOORPARK, CALIFORNIA Redevelopment Agenev Meeting of ACTION: APPROu&--0 a7RF-r- �Q�Comm�nOR7�or75, / /7Ct.c�o�/1!a ADDPT70N P REST RV: � MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT TO: Honorable Chair and Board Members From: Hugh R. Riley, Assistant Executive Director DATE: March 13, 2001 (for 3/21/01 meeting) SUBJECT: Consider the Purchase of Real Property at 500 Spring Road from M.V. Smith for a Site for a City Police Facility, Determine that the use of Redevelopment funds complies with Section 33445 of the Community Redevelopment Law and Adopt Resolution No. 2001 - Amending the Agency Budget and Appropriating $1,868,714 From Agency Tax Increment Bond Proceeds 4W1yTtA The City of Moorpark proposes to acquire the 7.52 -acre site owned by M.V. Smith at the northeast corner of Spring Road and Flinn Avenue as the site for the City' s planned police facility. Approximately three acres of the site will be used for this purpose with about three acres available for a use consistent with the Downtown Specific Plan and the remaining acreage is needed for street related purposes. The acquisition will also allow realignment of Flinn Avenue to intersect Spring Road directly across from Second Street to facilitate installation of a traffic signal at this modified intersection. DISCUSSION: To comply with Section 33445 of the Community Redevelopment Law, when considering the use redevelopment funds for the acquisition of land or for the construction of public facilities the agency board must determine the following: L �,'0CF> Redevelopment Agency Agenda Report Acquire Site for Police Facility March 13, 2001 Page 2 1. The facility is of benefit to the project area. 2. There is no other reasonable means of financing the facility available to the community. 3. The payment of funds for the acquisition of land or the cost of buildings will assist will assist in the elimination of blighted conditions within the project area and is consistent with the implementation plan adopted pursuant to Section 33490 of the Community Redevelopment Law. According to the Five -Year Implementation Plan for 1999- 2004 for the City of Moorpark, Redevelopment Project, the Agency's financing resources including tax increment bond proceeds may be used to achieve the Agency's Non - Housing goals and objectives. The applicable, non - housing goal contained in the approved implementation plan states that, "In order to make improvements to project area infrastructure and public facilities which benefit the project area, the Agency has adopted the following objectives: 1. Provide funding, as appropriate and feasible, for public facilities such as parking facilities, which serve properties in the Project Area. 2. Continue funding for infrastructure improvements in the public way (including sewer, storm drain, water systems and surface improvements which benefit the project area. 3. Reduce traffic congestion, improve public safety, and reduce parking deficiencies within the project area. 4. Expand area of Poindexter Park 5. Provide funding, as appropriate and feasible, for public service facilities such as a library, senior center and public safety facility." Redevelopment Agency Agenda Report Acquire Site for Police Facility March 13, 2001 Page 3 The proposed use of redevelopment funds for this project complies with Section 33445 based on the following: Benefit to Project Area - The project benefits properties within the adjacent project area because the law enforcement activity based in the facility protects and serves these properties and citizens. No Other Means of Financing development of the police acquisition of land exceeds $ Moorpark is unable to finance facility along with other needs the Redevelopment Agency. - Total cost for the facility including the 7,000,000. The City of the entire cost of the without the assistance of Eliminates Blight and Conforms to Implementation Plan - The street widening, realignment and traffic signal improvements proposed as part of the project will reduce traffic congestion and improve traffic safety in the project area. Traffic congestion and unsafe intersections are forms of blight. The proposed project is consistent with objectives 1, 2, 3 and 5 for the reasons stated above. If there is residual property from the project site that becomes the object of a development proposal that does not conform to the above objectives, the Agency would be able to resell that property at the purchase price or higher. Staff Recommendation: 1) Determine that the proposed use of Redevelopment funds is consistent with applicable Redevelopment Law Section 33445; and 2) Adopt Resolution No. 2001- appropriating $1,868,714 in Agency Tax Increment Bond Proceeds for the purchase of said property. (ROLL CALL VOTE REQUIRED) Attachment: Resolution No. 2001- l,�p -A- RESOLUTION 2001- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2000/2001 ADOPTED OPERATING BUDGET FOR THE PURCHASE OF REAL PROPERTY WHEREAS, on June 21, 2000, the Board of Directors adopted the operating budget for fiscal year 2000/2001; and WHEREAS, the Board of Directors now wishes to approve the purchase of real property located at the corner of Spring Road and Flinn Avenue for a total cost of $2,100,000; and WHEREAS, the Board of Directors now wishes to amend the adopted budget to reflect this purchase by appropriating $1,868,714 from agency bond proceeds. NOW, THEREFORE, THE AGENCY BOARD OF DIRECTORS OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment as described in Exhibit "A" attached hereto is hereby approved. SECTION 2. The Agency Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 218t Day of March, 2001. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary Resolution No. 2001 - Page 2 Exhibit "A" Budget Amendment Detail r uiiuiily Jvut� ca Funding Source Fund Amount Redevelopment Agency Bond 2903 $1,868,714 Proceeds Appropriazions. Current New Budget Budget Budget Unit Object Amount Change Amount 2903.5410.5012 9610 $0 $1,868,714 $1,868,714 10. ITEM b' CITY OF MOORPARK, CALIFORNIA Redevelopment Agency 'Meeting of 3 at -o�00/ ACTION: MOORPARK REDEVELOPMENT AGEN V�_,� AGENDA REPORT TO: Honorable Board of Directors FROM: Dana Shigley, Administrative Services Direc DATE: March 12, 2001 (meeting of March 21, 2001) SUBJECT: CONSIDER THE FISCAL YEAR 1999/2000 ANNUAL FINANCIAL STATEMENTS BACKGROUND The Agency is required to conduct an annual independent audit of its financial statements. nTQr`iTQQr%?J For the second year, the audit firm of Vavrinek, Trine, Day & Co., has conducted the annual audit and prepared the necessary financial statements. These reports have been provided to the Board of Directors under separate cover and are available to the public on request. STAFF RECOMMENDATION Receive and file the Agency's annual financial statements for the year ended June 30, 2000.