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HomeMy WebLinkAboutMIN 2000 0405 RDA REGMINUTES OF THE REDEVELOPMENT AGENCY Moorpark, California April 5, 2000 A Regular Meeting of the Redevelopment Agency of the City of Moorpark was held on April 5, 2000 in the Community Center of said City located at 799 Moorpark Avenue, Moorpark, California. 1. CALL TO ORDER: Chair Hunter called the meeting to order at 7:06 p.m. 2. ROLL CALL: Present: Agency Members Evans, Harper, Rodgers, Wozniak and Chair Hunter Staff Present: Steven Kueny, Executive Director; Nancy Burns, Senior Management Analyst; and Deborah Traffenstedt, Agency Secretary. 3. PUBLIC COMMENT: None. 4. PRESENTATION /ACTION /DISCUSSION: A. Consider Report on the Disposition and Development Agreement (DDA) with Cabrillo Economic Development Corporation (CEDC). Staff Recommendation: Amend Disposition and Development Agreement (DDA) to reflect requested changes in the project schedule and identified concerns, including the following: 1) Require lottery drawing for selection of low and very low income buyers; 2) Require all affordable units to be restricted to low or very low income households for thirty (30) years or until the year 2032, whichever is later; 3) Require final language of the following to be subject to approval by Executive Director and Agency Counsel, in order to protect the Agency's interest in the site and in this project: (A) Construction loan documents (Item 41 in this report); (B) Any and all subordination agreements that may be developed for this project (Item 42 in this report); (C) All loan documents and associated documents as itemized below for the purchase of the property by CEDC: (i.) escrow instructions, (ii.) title insurance policy, (iii.) promissory note; (D) All loan documents as itemized below for the purchase of the affordable units by eligible low income buyers: (i.) promissory note, (ii.) deed of trust, (iii.) resale restriction agreement; Minutes of the Redevelopment Agency Moorpark, California Page 2 April 5, 2000 4) As part of the amended DDA, require interest accrual to be effective April 1, 2000, on the purchase price of the site. Ms. Burns gave the staff report. In response to Chair Hunter, Ms. Burns explained the previously unmet components indicated in the staff report of March 1, 2000, which were currently complete. She stated it was the City's practice to review the CC &Rs. Mr. Kueny stated review of CC &Rs may not be called out in the DDA but was typically a standard condition of the tract map or Residential Planned Development (RPD) Permit. Mr. Loftus confirmed that it was a condition of the tract map and RPD Permit. In response to Agency Member Harper, Mr. Kueny stated he had brought up the lottery process at the March 14, 2000 meeting. He stated Cabrillo had indicated they would think about it. Agency Member Harper stated the selection process was well underway and at this point, it would be difficult to impose the lottery. Mr. Kueny stated he had asked that the process be delayed but Cabrillo had moved ahead. Karen Flock, 11011 Azahar Street, Saticoy, California, 93004, Housing Development Director with CEDC, discussed the progress made on the project. She expressed excitement for CEDC and families in Moorpark. She stated the DDA did not address marketing of the homes. She explained that the homes were offered on first -come, first - served basis. She stated they did not think it would be fair to change the process at this point. In response to Agency Member Harper, Ms. Flock stated she had reviewed the staff report and concurred with the requests. She stated they accepted the time line changes. She stated they had initially indicated that preference would be given to residents of Moorpark, but they did not feel they could give preference to City employees. She stated she did not recall the issue of the lottery being brought up previously. She stated there were 136 applicants. In response to Chair Hunter, Ms. Flock explained that there were a total of 136 applicants, including those Minutes of the Redevelopment Agency Moorpark, California Page 3 April 5, 2000 previously on the waiting list who submitted an application. She stated there were some applicants left from the Villa Campesina project, but they were not being given preferential treatment. She discussed marketing for the project. She stated there was no specific outreach to Moorpark residents. She stated she felt the first -come, first - served approach was the fairest process. In response to Agency Member Wozniak, Ms. Flock explained how preference would be provided to Moorpark residents. She explained the pre - qualification process, verifying income and loan qualifications. In response to Agency Member Evans, Ms. Flock estimated several of the 136 applicants had attended home ownership counseling. She stated attending a seminar was a requirement to purchase a home. In response to Chair Hunter, Ms. Flock explained the process of advertising for the homebuyer seminars. In response to Agency Member Rodgers, Ms. Flock stated applicants would have to attend a seminar prior to purchasing a home. She stated the mortgage lender would conduct the pre - qualifying process. In response to Agency Member Rodgers, Ms. Burns explained the Agency's control in event of default. In response to Chair Hunter, Ms. Flock discussed pre- screening of the 136 applicants. She stated the bank would require separate pre - qualification. In response to Mr. Kueny, Ms. Flock stated they considered a Moorpark resident one with a Moorpark address. She stated they had not considered a minimum residency period. Mr. Kueny stated the purpose of the program was to assist Moorpark residents who were in need at the time of the DDA. Ms. Flock stated the City did not include preference to Moorpark residents. Mr. Kueny stated it was the intent to benefit City of Moorpark residents. In response to Agency Member Evans, Ms. Burns explained staff's request regarding preferential treatment of City Minutes of the Redevelopment Agency Moorpark, California Page 4 April 5, 2000 employees. Mr. Kueny stated staff had dropped the idea of priority for City employees. In response to Agency Member Rodgers, Ms. Flock stated two City employees had applied. Kathleen Ireland Stacey, 15750 Los Angeles Avenue, #107, discussed the application process. She stated they stood in line for 3 days to apply for a home. She stated it would be unfair to be placed in the lottery at this point. Agency Member Harper stated it appeared that most of the items were close to resolution. He stated the selection process had progressed too far to change to a lottery. He suggested a discussion occur on selection processes for future projects. Chair Hunter expressed discomfort with the selection process. He stated he was not sure that Moorpark residents would receive priority. He stated it was necessary to ensure that everybody received an equal chance to live in the homes. He stated he was dissatisfied with the limited advertisement of the project. In response to Chair Hunter, Mr. Kueny explained the City's subsidy of the project. Agency Member Harper stated the marketing could have been wider broadcast and the lottery would have been more fair. He trusted Cabrillo to give Moorpark residents priority. Agency Member Evans stated he viewed the families in line to apply for the homes. He agreed with Chair Hunter that the process was not as fair and objective as possible. He stated Cabrillo had met most of the objections presented by the City. He stated the Agency was investing in the project and the money would be recouped. He discussed the need for more first time buyer housing in Moorpark. He stated he had faith in Cabrillo that as many people would be put into homes as possible. He stated the process should move forward because it would be unfair to those who waited in line. Minutes of the Redevelopment Agency Moorpark, California Page 5 April 5, 2000 In response to Agency Member Rodgers, Mr. Kueny indicated staff was requesting moving the process forward. He expressed disappointment that the revised schedule was not provided until late in the day. He recommended the Council allow staff to prepare an amendment to the DDA to be brought back to the Council. He requested clarification on the definition of Moorpark residents. He suggested approving the documents subject to final language approval of the Agency Counsel and Executive Director. Agency Member Rodgers stated outreach was inadequate based on the number of applicants. She recommended that, if Moorpark residents did not fill the 15 homes, the application process be reopened. Mr. Kueny requested Ms. Flock confirm that the program was for first -time homebuyers. Ms. Flock stated it was a first -time homebuyer program. Mr. Kueny stated that first -time homebuyer meant no home ownership within the past three years. Ms. Flock stated that was not a problem. Chair Hunter suggested tightening the language restricting affordable units to remain low or very low for 30 years. Mr. Kueny stated the language would be clarified. MOTION: Agency Member Harper moved and Agency Member Wozniak seconded a motion to amend Disposition and Development Agreement (DDA) to reflect requested changes in the project schedule and identified concerns, including the following: 1) Require all affordable units to be restricted to low or very low income households for thirty (30) years or until the year 2032, whichever is later; 2) Require final language of the following to be subject to approval by Executive Director and Agency Counsel, in order to protect the Agency's interest in the site and in this project: (A) Construction loan documents (Item #1 in this report); (B) Any and all subordination agreements that may be developed for this project (Item #2 in this report); (C) All loan documents and associated documents as itemized below for the purchase of the property by CEDC: (i.) escrow instructions, (ii.) title insurance policy, (iii.) promissory note; (D) All loan documents as itemized below for the purchase of the affordable units by eligible low income buyers: (i.) promissory note, (ii.) deed of trust, Minutes of the Redevelopment Agency Moorpark, California Page 6 April 5, 2000 (iii.) resale restriction agreement; 4) As part of the amended DDA, require interest accrual to be effective April 1, 2000, on the purchase price of the site and that 1) a revised schedule should be adopted; 2) a definition of Moorpark residency is required; and 3) Housing and Urban Development (HUD) definition for first time home buyer to be used. The motion carried 4 -0, Chair Hunter abstaining. 5. CONSENT CALENDAR: MOTION: Agency Member Wozniak moved and Agency Member Rodgers seconded a motion to approve the Consent Calendar. The motion carried by unanimous roll call vote. A. Consider Approval of Minutes of Regular Redevelopment Agency Meeting of January 5, 2000. Consider Approval of Minutes of Regular Redevelopment Agency Meeting of January 19, 2000. Consider Approval of Minutes of Regular Redevelopment Agency Meeting of February 16, 2000. Staff Recommendation: Approve minutes as processed. 6. CLOSED SESSION: Mr. Kueny suggested the Agency recess the meeting to go into Closed Session for a discussion of all items listed, following the City Council meeting. At this point in the meeting, a recess was declared. The time was 7:55 p.m. The meeting reconvened at 9:00 p.m. with all Agency Members present. Ms. Kane announced that the Agency would be going into closed session for discussion of Item Nos. 6.B. and 6.C. on the agenda. MOTION: Chair Hunter moved and Agency Member Harper seconded a motion to adjourn to closed session for a discussion of Item Nos. 6.B. and 6.C. on the agenda. The motion carried by unanimous voice vote. The time was 9:00 p.m. B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Subdivision (c) of Minutes of the Redevelopment Agency Moorpark, California Page 7 April 5, 2000 Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) C. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Pursuant to Government Code Section 54956.8) Property: 285 High Street, Moorpark, CA 93021 Agency Negotiator: Steven Kueny, Executive Director Negotiating Parties: The Redevelopment Agency of the City of Moorpark and Randall - Tracy Marsh Under Negotiation: Price and terms of payment Property: 297 High Street, Moorpark, CA 93021 Agency Negotiator: Steven Kueny, Executive Director Negotiating Parties: The Redevelopment Agency of the City of Moorpark and Randall - Tracy E. Marsh Under Negotiation: Price and terms of payment Present in closed session were Agency Members Evans, Harper, Rodgers, and Wozniak; Steven Kueny, Executive Director; Deborah Traffenstedt, Agency Secretary; Cheryl Kane, Agency Counsel; Wayne Loftus, Director of Community Development and Ken Gilbert, Public Works Director. Chair Hunter arrived at 9:08 p.m., following the discussion of Item No. 6.B. The Agency reconvened into open session at 9:10 p.m. Mr. Kueny indicated there was no action to report. 7. ADJOURNMENT: Chair Hunter adjourned the meeting at 9:10 p.m ATTEST: Deborah S. Traffenstedt r..qESTAL,SHE Agency Secretary O 18, 1987 �*