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HomeMy Public PortalAboutMinutes - 2008/10/21 - RegularCOMMUNITY REDEVELOPMENT AGENCY TEMPLE CITY, CALIFORNIA REGULAR MEETING MINUTES OCTOBER 21, 2008 1. CALL TO ORDER Chairman Wilson called the Community Redevelopment Agency Regular Meeting to order at 7:44 p.m. in the Council Chambers located at 5938 Kauffman Avenue, Temple City. 2. ROLL CALL PRESENT: ABSENT: Member- Gillanders, Vizcarra, Wong, Capra, Wilson Member -None ALSO PRESENT: Executive Director /Agency Counsel Martin, Assistant Executive Director Lambert, Agency Secretary Flandrick PRESENTATION REGARDING PROGRESS ON THE PIAZZA PROJECT Enrique Medina, Principal of EMX Public & International Relations and spokesperson for Randy Wang, President of TCD Enterprises, introduced members of the Temple City Piazza Team: Howard Poyourow, Project Manager, and John Hsu, STC Management for tenant recruitment and marketing. HTH Architects (Jane Housden) is the primary architectural firm heading the project. Jim Ebrahim is the structural engineer working for the project and Paul Bettenhausen is the Civil Engineer. Via a power point presentation, Mr. Medina provided a status update on the project and requested a modification of the project and direction from the Agency. Mr. Medina stated the City and its Redevelopment Agency approved a development proposal for retail and mixed usage. The City did not approve a request for change to the original project of no residential condos. The developer continues to invest money into the project, and although there have been some delays, wishes to move forward with the project. The designs have been submitted and approved and the City has granted the entitlements and full construction documentation has been submitted to the Department of Building and Safety for building and plan check. The City has partially reviewed the plans and returned the comments to the architects and engineers who continue to respond. This process is lengthy and is still ongoing. The developer is willing to develop retail only and is considering re- submittal of the hotel proposal since it is financially feasible. John Hsu, Officer for STC Management, said he would be helping to recruit tenants. Over the past couple of months, STC has met with local business owners and sent out information packages to identify national retailers. The major concern of tenants is to know the exact date of groundbreaking and the timeframe of tenancy. Their purpose is to secure good tenants and the team will work with the City and are putting in a lot of effort. They have a team of six people dedicated just for this project to have a very dynamic mix of tenants that will bring tax dollars to the City as well. In response to Chairman Wilson, Mr. Hsu indicated they had a handful of letters of intent secured since last year, but because of the delay, there are questions about the project not being finished on time. They still have constant contact with these prospective tenants. They do have a letter of intent from Tesco, parent company for Fresh and Easy and he mentioned other restaurants expressing interest also. Chairman Wilson said the businesses mentioned were mostly those who had previously submitted letters of intent. Mr. Hsu stated they continued with the old letters of intent and Agency Minutes October21, 2008 Page 2 also secured new ones, but the national franchises want to know more information before they issue that commitment. Mr. Medina submitted the brochure sent out to prospective tenants describing the property and opportunities for coming into the project including demographic and traffic information. Howard Poyourow, Project Manager, provided information on the financial condition of the project. He stressed the commitment this team brings to the project, stating Mr. Wang is ready, willing, and able financially and otherwise to complete this project. He has demonstrated this financial ability and commitment from 2005 to the present day by spending millions of dollars to develop this project to where it is today. A new bank authorized and certified an appraisal completed two weeks ago and values the property as it currently exists at $14.3M. Mr. Wang has spent an additional $5M on architects, engineers, management, legal and other soft costs to develop designs and construction plans and obtain entitlements. As part of the development process he has invested hundreds of thousands of dollars in taxes, government fees and special reports. In late 2007, he invested another $300,000 on plan check fees to submit architectural and engineering documents to plan check review in order to qualify to pull the building permits needed to start construction. Mr. Wang is prepared to go forward with actual construction of this project, and asked for the Agency's consideration of this proposal to modify the residential elements of the project thereby enhancing the financial feasibility and ensuring its success. Mr. Medina provided the following options for consideration: 1) do away with the residential condos and convert to retail space 2) go with all retail including banquet facilities and restaurant options 3) hotel use All three options are feasible and financially viable, and the Agency was asked to provide direction. To continue expending resources with the project as it stands with the residential component is counterproductive at this time. Chairman Wilson stated that this has been brought to us before and all we really want to do is develop that property. She didn't mind going without the condos, but she did want to see it as expressed before with a banquet room, restaurants, and retail. She was not ready to say she would like to see hotels there. She would like to see an all- retail facility as was expressed before, eliminating the condos. Vice Chairman Capra asked, if we do away with condos and go all retail, when is the earliest that the project could start and how close are the plans to being completed'? And how long will it take, roughly from start to finish? Mr. Medina estimated that the plans are 60 -75% complete and the parking structure is 100% complete. Mr. Poyourow stated, although Phase I could be started, we really need to solidify Phase 2 to finalize the design element so we know_ exactly where we are going and can complete plan check. From start to finish, it should take approximately 2 - 2% years. It will remain Venetian design style. If they get the go.ahead, they can get together with staff and resolve the issues and come back in 4 -6 weeks, then get with the architect and engineer to get the elements into plan check and finalize. Plan check may take 4 -6 months and then they could break ground in June or July of 2009 and complete in 2011. Ms. Wong asked if there were anything concrete from Hilton regarding the hotel portion, that they will definitely do this. 1 1 1 1 Agency Minutes October 21, 2008 Page 3 Mr. Medina responded that the Hilton expressed interest and communicated in writing some 2 -3 weeks ago that they wanted to go forward. As a team, it was decided not to move too fast until there was a clear picture of desire on the part of the Agency. Without the hotel, the timeframe would be less. Mr. Gillanders stated it would be suggested that the changes, individually and collectively, are major, thereby requiring amendments to the development agreement and CEQA compliance. Without any plans, we have no way of knowing what difference there may be to height, but limitations could be built in, if the City is amenable to the idea of a 100 room hotel at that location. The proposal is almost too sketchy to act on, as that detail has not been answered. He has a problem with delegating our ordinance parking standards to a third party and being bound thereby. This would be possible under MUZ zoning, but if it is repealed, the zoning goes back to C -2 or C -3 and we would have to grant variances and comply with CEQA. At the moment, he did not feel the Agency knows enough to do anything. We currently have not been recompensed in any way for the sales tax the City has lost over the last 4 years. Paying no penalties is unthinkable and unconscionable. We want this to be as little impact on the community as a whole. The City will have to have the power of absolute veto over parking on that property. He wished to have the details flushed out a bit more so we know what we are talking about. And what happens if they renege again — who will pay the City for all the additional years of lost sales tax? Mr. Medina responded all of the concerns that have been voiced is what they want to sit down and talk about. They would like direction from the Agency to authorize the Executive Director and staff to meet to discuss the details, and then come back to the Agency. They are not asking for approval tonight. Mr. Vizcarra said early on when we decided to litigate regarding this project, it was our frustration that things were not happening, that we had hit a point where it appeared that they could not possibly complete this project. Now they are back saying they are going to complete the project. They sound very professional, but they are saying what the previous team was saying and so have a very big credibility problem with him. He was very hesitant to embrace whatever it is they are bringing to us. All of a sudden they are going to go retail, no condos. What happened to what we were talking about 6 months ago when nothing was happening and we went to court to get the land back to do' something with it. Now we are back full circle and he found it very frustrating. He is not hearing anything from Mr. Wang's team that is making him feel that anything is going to happen this time. Mr. Medina stated the reality is that Mr. Wang made some mistakes in bringing some of the people he brought in initially. This is a new team which is why he wanted to present some of the members and some information to the Agency so that you can research and find these are highly reputable firms. The idea is at this time that we want to sit with staff and go over the details and plans that will give you answers and address your comfort level. Mr. Vizcarra said he would be very concerned if a year and a half down the road and they imploded again and in the meantime we have the hole in the ground. Mr. Medina stated that is one of the concerns and all of these issues could be addressed in a meeting with staff, including the financial concerns. Then staff can come back to you with a recommendation, but he felt they needed an opportunity to meet with staff to discuss the project and how they can make it a reality. Vice Chairman Capra stated he felt one of the biggest problems was trying to get the financing at the time because of the economy, etc. He had the same concerns as Mr. Vizcarra as to getting this done and the credibility. But primarily they are asking to meet with staff and hammer out some details. As an Agency Member, he has had a lot of concerns Agency Minutes October 21, 2008 Page 4 since day one, but here we are today and he was not going to go back and think what should have happened. The residents of this City are dying for something. Whether we get compensated or not, he would let the City Attorney handle that. He would say that this City and all his constituents want to develop that corner. Here is anew team and he hears they have financing and the credentials. He felt they have to at least be given an opportunity to sit down with staff and the City Attorney to get direction. If we litigate this thing, it can go on and on. If you look at the economic times, there are zero malls being built. It is detrimental that we do something.. We have nothing else penciled out and we need this. Mary Kokayko, Temple City resident, said she was very angry and wondered what the big hurry was. Nobody knew this was going to be on the agenda. They went crying to the Chamber, as she learned from the paper. Anything going on in the City she learns from the paper. She was upset to see them presenting this and nobody in Temple City knew this was coming. They came to you and you stuck it on the agenda for today. Isn't there a 72 hour Brown Act? It wasn't on the agenda when she picked it up on Thursday. Chairman Wilson said it was on the Community Redevelopment agenda. Ms. Kokayko said nobody in town knows about this. We have a court case in July and Mr. Wang is suing you for $10M. He is blackmailing you, he has bribed the Chamber for them to back him up. The Chamber has nothing to do with this. She was very upset with what is happening. What about the bribe? Are you going to give in to him so he won't go any further? Are you guilty of the bribe? What do you think the people of Temple City are going to think? Are you giving in so nothing else comes up? The only one not involved is Mr. Vizcarra as he wasn't on the Council then. The City Manager answered everything they were crying to the Chamber about and he was correct. Chairman Wilson explained that this item was on the Agency agenda and was posted 72 hours before the meeting. Agency Secretary Flandrick responded the agenda was posted on the bulletin board outside of the Chambers and also posted on the website. Mary Burke, Temple City resident, said she was also perturbed as she also picked up the agenda and this was not on it. There are so many lawsuits going on back and forth. The City as a whole is not keeping the citizens informed. We no longer have a local newspaper and she did not know what newspaper we are using. She attended every meeting in regard to this project and is voicing her own opinion in saying she did not have faith in Mr. Wang and his organization because we would not be here today if it had been kept on schedule. We hear he does not have any money way back and now he has $14.3M and another $5M. She didn't get a CRA agenda either. Very few people even get the agenda or Manager's comments. It is about time to live up to the shenanigans. Joan Vizcarra, Temple City resident, said she was frustrated. If the Agency Members wonder why the referendum went through, this is the kind of stuff that sets you guys up for this. People don't trust you. Mary Kokayko picked up the agenda, and she went on line and downloaded it. This is not attached — you have to search for it independently. It looks like you are trying to do stuff so people don't know and you should want the people on board for this. She didn't want to do another referendum. Keep it straight. Linda Payne, President of Chamber of Commerce, responded to the comment made by Ms. Kokayko regarding the Chamber of Commerce being bribed. That statement is absolutely untrue; there have been no bribes. At the Chamber meeting with Mr. Wang, the City was represented by Community Development Manager Lambert as the City's Liaison, Councilmember Gillanders, was not present. Nothing was done behind closed doors or in 1 1 1 Agency Minutes October 21, 2008 Page 5 secret. This is a development that did come up within a week and all of the Councilmembers knew that this was going to be on the agenda. She also knows that Ms. Kokayko is involved in a group, TCNA, which Councilmember Vizcarra and Mrs. Vizcarra all are involved in. So there should be no reason why Ms. Kokayko did not know about it. Her representatives that are here on Council should let her know about it. The Chamber's Board of Directors were e- mailed about the meeting this evening. She realized some people do not realize what is on the agenda if they don't have computers and it is not published in the newspaper. But it is not anyone's fault that they have not made themselves available to what goes on in their community. That is all our responsibility ourselves to find out what is going on. She encouraged Council to just meet with the Piazza people as there are many empty buildings around town. The Alpha Beta site has been there 28 years with nothing happening on that property. She would hope that the community would be extremely happy that the Chamber has been a part of this trying to get everyone together to get something done in town. We do not want to see that piece of property sit for 28 years while we are in litigation or we are figuring out what we might want to do. And to take it back from someone who has so much money into it and turn around and sell it or give it to another developer is really futile. She would hope that Mr. Wang can come and show the Agency that he has the money to do this project and follow through with the new team that he has. Jerry Jambasian, Temple City businessman, said he was confused by the agendas sent to him in the mail that shows City Council meeting of October 21st and then the Community Redevelopment Agency meeting agenda shows October 7th with the item for "Presentation Regarding Progress on the Piazza Project ". He asked if that was an error. Agency Secretary Flandrick stated it was an administrative error. The other two agendas show the correct date of October 21, 2008. Executive Director Martin asked the Agency Secretary to comment on the agendas. Agency Secretary Flandrick said there was an incorrect date on the CRA agenda. The date was the only thing to be corrected. If you picked up an agenda, you will see there is an item on the CRA regarding the Piazza presentation. It is not on the City Council agenda; it is on the CRA agenda. Anyone who picked up an agenda at the City Clerk's counter gets all three agendas. Executive Director Martin stated, from a legal standpoint, the item was on the agenda. Everything that goes on the agenda on Thursday afternoon is legal to hear on the following Tuesday night. It may not have been the best way but it is the fastest way to get the matter before the Agency again. No decisions are going to be made on the issue tonight. This was for discussion only because they have a new team. He recognized that team number one failed and team number two failed and this is team number three. But they have a right to be heard and they have a right to sit down with staff and try to work out a settlement of a very expensive and long- lasting lawsuit and it behooves all of us to try to settle every litigation if we can. There are a million hurdles to go through before this matter is settled and before a different agreement can come before the Agency. He felt we owe it to the people to try to settle the case if something can be settled. If it is to be a hotel there are even more matters to go before the populace. We cannot enact a Transit Occupancy Tax (TOT) without a vote of the people. Nothing is going to be done on the hotel until that is done if the TOT is to be recognized and divided in some fashion. The Agency has already turned down a hotel application once, and it will not decide on it tonight because there will be no decisions tonight. He would advise Mr. Medina and others that the retail alternative is probably acceptable to the Agency, but there are questions even on that. They have used the words interchangeably -. commercial and retail. We are talking about retail from this point, not necessarily commercial. He would be willing to sit down with staff to try to overcome a raft of hurdles which he felt may be difficult to do. But in order to settle matters, we owe it to Mr. Agency Minutes October 21, 2008 Page 6 Wang and to the populace and to this Agency to settle the matter if we can. He is willing to do that if the Agency so authorizes. Chairman Wilson said she felt that was a great idea. Ms. Wong said she felt the same way. Executive Director Martin summarized the direction was to authorize the Executive Director and staff to sit down and see whether the new team can go through all the hurdles and problems that he outlined and come up with a proposal that would be acceptable to this Agency. 3. CONSENT CALENDAR Ms. Wong moved to approve the Consent Calendar, seconded by Capra and unanimously carried by the following roll call vote: AYES: Member - Gillanders, Vizcarra, Wong, Capra, Wilson NOES: Member -None ABSENT: Member -None ABSTAIN: Member -None Vice Chairman A. APPROVAL OF MINUTES Approved the Minutes of the Regular Meeting of October 7, 2008, as presented. B. FIRST QUARTER TREASURER'S REPORT, REVENUE AND EXPENDITURE SUMMARY REPORTS Received and filed the September 2008 Treasurer's Report and First Quarter Revenue and Expenditure Reports. C. ADOPTION OF RESOLUTION NO. CRA 08 -952 — APPROVAL OF PAYMENT OF BILLS Adopted Resolution No. CRA 08 -952, a RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMPLE CITY ALLOWING CLAIMS AND DEMANDS IN THE SUM OF $118,326.17 DEMAND NOS. 3577 THROUGH 3580. 4. UNFINISHED BUSINESS — None 5. NEW BUSINESS — None 6. COMMUNICATIONS — None 7. PUBLIC COMMENTS — None 8. UPDATE FROM EXECUTIVE DIRECTOR — None 9. MATTERS FROM AGENCY MEMBERS — None 10. CLOSED SESSION — None 11. ADJOURNMENT The Community Redevelopment Agency Regular Meeting was adjourned at 8:47 p.m. Octbi2Z- Chairman 1 1 1 Agency Minutes October 21, 2008 Page 7 ATTEST: muu_ Agency Secary