HomeMy WebLinkAbout030795AM-rda_CCv0001.pdf MINUTES of a special meeting of the Redevelopment Agency of the City of Redlands held
in the Council Chambers, Civic Center, 35 Cajon Street, at 9:00 A.M. on March
7, 1995.
PRESENT Swen Larson, Chairman
Jim Foster, Vice Chairman
William E. Cunningham, Member
Gilberto Gil, Member
Pat Gilbreath, Member
Gary M. Luebbers, Executive Director
Daniel J. McHugh, Agency Attorney
Lorrie Poyzer, Agency Secretary
Ted Thomaidis, Redlands Daily Facts
Steven Church, The Sun
ABSENT None
Redevelopment Agency Workshop - Administrative Services Director Pettus
reported several questions and issues have been raised recently regarding the
status of the Redevelopment Agency. In addition, it was discovered that each
course of action has the potential to impact decision on the sale of property,
development and/or housing programs. Mr. Stephen Deitsch, special counsel
with Best, Best and Krieger, provided an overview on redevelopment
discussing the expiration of the Agency's plan and options and powers
following termination of the plan. He also addressed legal issues concerning
the sale of property, housing, and the AB 1290 report requirements. Finance
Director Steven M. Chapman provided an analysis of tax increment receipts
and projections, debt service obligations, and the subsidy the Redevelopment
Agency receives from the City's General Fund. Board members desired more
information such as revenue projections if the Plan is expanded, modified, or
terminated and the status of set-aside funds.
Civic Center Disposition - Administrative Services Director Pettus reported the
City of Redlands Redevelopment Agency acquired the Redlands Plaza on
December 1, 1977, for $2,000,000.00. The Plaza housed a variety of
commercial and office uses which provided tenant income to the
Redevelopment Agency. Redevelopment Agency administrative officers were
also located in the facility. As City office needs increased and tenant leases
expired, City departments were relocated to the Plaza. In July, 1994, all City
administrative offices and the City Council Chambers were located in the
Redlands Plaza which was then renamed Civic Center. The City pays rent to
the Redevelopment Agency each year. The 1994-95 budget calls for a total
rent payment of $358,589.00. In an effort to eliminate this general fund rental
payment and continue with the disposition of Redevelopment Agency assets,
staff examined a number of alternatives. Two options (direct sale and bond
Redevelopment Agency
Special Meeting
March 7, 1995
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issuance) were deemed infeasible due to financial and legal constraints. Two
alternates remain:
1. Donation -- The Redevelopment Agency can donate the property to the City
of Redlands for use as a public facility. This would entail a public hearing
during which the Redevelopment Agency Board would make findings
pertinent to the use of the property and elimination of blight.
2. Trade City Property - With this alternative, all City-owned housing and other
miscellaneous properties would be given to the Redevelopment Agency in
exchange. The City housing units (in "as is" condition) and vacant land
have an estimated value of$1,000,000.00 to $1,250,000.00. The Redlands
Plaza was appraised for$4,500,000.00 by Gerald Stafford in October 1994.
Mr. Cunningham indicated he would like to explore the donation option and
asked if there was some way the City's General Fund could assume the
Redevelopment Agency debt for amortization over the Utilities Fund.
Mr. Foster was opposed to giving away the Redevelopment Agency assets and
writing off its debt. Mrs. Gilbreath wanted to explore the donation option. Mr.
Gil asked about the effect this would have on development impact fees. Mayor
Larson wanted a cost analysis of all options. An in depth study will be
prepared for a future meeting.
The meeting briefly recessed at 10:10 A.M. and reconvened at 10:18 A.M. and
discussed City-owned housing (See City Council minutes dated March 7,
1995.)
ADJOURNMENT
There being no further business, the Redevelopment Agency meeting
adjourned at 10:18 A.M. The next regular meeting will be held on March 7,
1995, at 3:00 P.M. or as soon thereafter as City Council business permits.
Secretary
Redevelopment Agency
Special Meeting
March 7, 1995
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