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Home My WebLink AboutAG RPTS 2002 1016 RDA REG'—( ESTABLISHED * Umm,1.Isar � /F0 GytV OF MJ Resolution No. 2002 -110 MOORPARK REDEVELOPMENT AGENCY REGULAR MEETING AGENDA WEDNESDAY, OCTOBER 16, 2002 6:30 P.M. Moorpark Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3. PUBLIC COMMENT: 4. PRESENTATION /ACTION /DISCUSSION A. Consider Authorizing $400,000 Loan from Redevelopment Agency Capital Improvement Tax Increment Fund Account No. 2902 to Janss IV Recreation for Acquisition of 11 -17 East High Street. Staff Recommendation: Approve $400,000 loan from Redevelopment Agency Capital Projects Fund 2902 to Janss IV Recreation for the acquisition of 11 -17 East High Street, terms of which loan to be three percent (3 %) fixed for five (5) years, providing interest rate to be based on LAIF rate following the initial five years, and capped for the remainder of the term at six percent (6 %), such loan to be secured by a First Trust Deed on the subject property with additional security in the form of corporate and personal financial guarantees, with loan terms and security agreement subject to final language approval by the Executive Director and Agency Counsel, and terms of such loan to be identified in Promissory Note and Loan Agreement. 5. CONSENT CALENDAR: A. Consider Approval of Minutes of Regular Meeting of June 5, 2002. Staff Recommendation: Approve minutes. Redevelopment Agency Agenda October 16, 2002 Page 2 6. CLOSED SESSION: A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Subdivision (b) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) B. 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) C. 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) D. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Pursuant to Government Code Section 54956.8) Property: 203 E. Los Angeles Ave., Moorpark, CA 93021 and 213 E. Los Angeles Ave., Moorpark, CA 93021 Agency Negotiator: Steven Kueny, Executive Director Negotiating Parties: The Redevelopment Agency of the City of Moorpark and Wayne Colmer Under Negotiation: Price and terms of payment 6. 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 Xou 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 (28 CFR 35.102- 35.104 ADA Title II). ITEM 4 A MUNW-Womm g ' •��3. �,ar 9, ee R�RK, CALIFORNIA irment Agency Meeting u� A( -'fit' MOORPARK REDEVELOMENT AGENCY, -- AGENDA REPORT BY. To: Honorable Agency Board of Directors From: Nancy Burns, Senior Management Analyst Date: October 10, 2002 (MRA Board Mtg. of October 17, 2002) Subject: CONSIDER AUTHORIZING $400,000 LOAN FROM REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT TAX INCREMENT FUND ACCOUNT NO. 2902 TO JANSS IV RECREATION FOR ACQUISITION OF 11- 17 EAST HIGH STREET BACKGROUND The Theater on High Project, which includes the acquisition of 11 -17 East High Street, was initially considered to be a candidate for a HUD Section 108 loan or for funding through the City's annual Community Development Block Grant (CDBG) grant. At the City's Budget and Finance Committee Special Meeting of October 8, 2002, the Committee recommended the City Council refer this matter to the Moorpark Redevelopment Agency, to be considered at its October 17, 2002 Regular Meeting. DISCUSSION The project, as it was initially considered, included the rehabilitation of the theater at 45 East High Street and the acquisition of 11 -17 East High Street. The 11 -17 building will provide space for set design, rehearsal, and other support services for the theater. The building will continue to provide commercial space for small commercial enterprises, such as those currently occupying space in that building. The owner of the theater has incurred costs of approximately two hundred eighty -three thousand dollars ($283,000) to date, for architectural fees, deposits on furniture, fixtures, and equipment (FF &E), environmental and feasibility studies, and other miscellaneous items. This amount does not include the CJ01 () 01, Honorable Agency Board Meeting of October 17, 2002 Page 2 purchase price of the theater, which was two hundred seventy - five thousand dollars ($275,000) . The theater was acquired in August 2001. The owner has indicated ability to fund the remaining costs for furnishings, fixtures, and equipment (FF &E) needed for the theater, but requests assistance with the acquisition of 11 -17 East High Street. Financing for the acquisition of the 11 -17 building could be provided from Tax Increment funds in the Redevelopment Agency's Capital Projects Fund, in keeping with the purpose of such funds to revitalize blighted commercial neighborhoods. This fund balance is currently $1,481,788. The market value of 11 -17 East High Street is estimated to be four hundred thousand dollars ($400,000) . As this full sum is needed for the purchase of this property, and to enable the project to proceed to completion, security will be provided by a Deed of Trust, as well as personal and corporate guarantees by the Owner. At a later date, the Committee also recommends an additional loan of one hundred thousand dollars ($100,000) for the theater. If the Agency loans funds prior to occupancy of the rehabilitated theater, provisions of SB 975, pertaining to prevailing wage requirements, would be applicable. A loan of $100,000 is proposed to assist with startup and initial operating costs for the theater. This loan would be secured by a Promissory Note, Deed of Trust (First Trust Deed) and personal guarantee from Mr. Janss and Janss IV Recreation. Future construction on either property would require conformance with SB 975 so long as the Moorpark Redevelopment Agency has loans on the property. The Committee recommends a thirty (30) year loan with interest fixed at three per cent (3 %) for five (5) years, and interest at the LAIF rate, with a cap of six per cent (6 %), for the remaining twenty -five (25) year term. The Committee also recommended that the Agency allow renegotiation of the loan on the 11 -17 building in the future, if this is to the Agency's benefit. Honorable Agency Board Meeting of October 17, 2002 Page 3 STAFF RECOMMENDATION 1. Approve $400,000 loan from Redevelopment Agency Capital Projects Fund 2902 to Janss IV Recreation for the acquisition of 11 -17 East High Street, terms of which loan to be three per cent (3 %) fixed for five (5) years, providing interest rate to be based on LAIF rate following the initial five years, and capped for the remainder of the term at six per cent (6 %), such loan to be secured by a First Trust Deed on the subject property with additional security in the form of corporate and personal financial guarantees, with loan terms and security agreement subject to final language approval by the Executive Director and Agency Counsel, and terms of such loan to be identified in Promissory Note and Loan Agreement. £J- 100:3 CT— , „ ;71 P.A R K. CALIFORNIA P, _ ° pment .Agenev Meeting Yt -/,o e a a, pry A A(_r ION: L-- ctc.c� -`'J MINUTES OF THE REDEVELOPMENT AGENCY Moorpark, California June 5, 2002 A Regular Meeting of the Redevelopment Agency of the City of Moorpark was held on June 5, 2002, in the Council Chambers of said City located at 799 Moorpark Avenue, Moorpark, California. 1. CALL TO ORDER: Vice Chair Mikos called the meeting to order at 7:11 p.m. 2. ROLL CALL: Present: Agency Members Harper, Millhouse, Wozniak and Vice Chair Mikos Absent: Chair Hunter Staff Present: Steven Kueny, Executive Director; Joseph Montes, General Counsel; Hugh Riley, Assistant Executive Director; and Deborah Traffenstedt, Agency Secretary 3. PUBLIC COMMENT: None. 4. PRESENTATION /ACTION /DISCUSSION: A. Consider Resolution Adopting an operating and Capital Improvements Budget for the City of Moorpark Redevelopment Agency for the Fiscal Year 2002/2003. Staff Recommendation: Adopt Resolution No. 2002 -107. No staff report was given. MOTION: Agency Member Harper moved and Agency Member Wozniak seconded a motion to adopt Resolution No. 2002 -107 adopting an operating and capital improvements budget for the City of Moorpark Redevelopment Agency for the Fiscal Year 2002/2003. The motion carried by roll call vote 4 -0, Chair Hunter absent. B. Consider Loan Agreement Between the City of Moorpark and the Moorpark Redevelopment Agency. Staff Recommendation: Adopt Resolution No. 2002 -108, approving a Loan Agreement with the City of Moorpark. Ms. Shigley gave the staff report. C j000 -1 Minutes of the Redevelopment Agency Moorpark, California Page 2 June 5, 2002 MOTION: Agency Member Wozniak moved and Agency Member Harper seconded a motion to adopt Resolution No. 2002 -108, approving a Loan Agreement with the City of Moorpark. The motion carried by roll call vote 4 -0, Chair Hunter absent. 5. CLOSED SESSION: Mr. Kueny recommended that the Agency recess at this time and go into closed session under Item S.C. following the City Council meeting. MOTION: Agency Member Harper moved and Agency Member Wozniak seconded a motion to adjourn to closed session for discussion of Item 5.C. following the City Council meeting. The motion carried by voice vote 4 -0, Chair Hunter absent. - C. 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) AT THIS POINT in the meeting, the Agency meeting was recessed to reconvene the City Council meeting. The time was 7:13 p.m. The Agency reconvened into closed session at 8:53 p.m. Present in closed session were Agency Members Harper, Millhouse, and Wozniak and Vice Chair Mikos; Steven Kueny, Executive Director; Joseph Montes, General Counsel; Hugh Riley, Assistant Executive Director; and Deborah Traffenstedt, Agency Secretary. The Agency reconvened into open session at 9:13 p.m. Mr. Kueny announced that only Item 5.C. was discussed and that there was no action to report. 6. ADJOURNMENT: Vice Chair Mikos adjourned the meeting at 9:13 p.m. ATTEST: Deborah S. Traffenstedt Agency Secretary Patrick Hunter, Chair