Council Special Meeting

MINUTES CITY COUNCIL SPECIAL MEETING CITY OF MONTEREY Wednesday, March 30, 2011 4:00 - 6:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haferman, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, Assistant City Manager, Chief of Planning, Engineering, & Present: Environmental Compliance, Assistant Finance Director, Housing & Property Manager, Senior Assistant City Clerk CALL TO ORDER Mayor Della Sala called the meeting to order at 4:03 p.m. Adjourn to Redevelopment Agency Meeting REDEVELOPMENT AGENCY - PUBLIC APPEARANCE 1. Receive Report and Recommendation to Implement Direction on Housing by Authorizing the Following: (Plans & Public Works - 406-05) Housing and Property Manager Marvin presented the agenda report, noting that the purpose of this meeting is to ensure funds are available for important housing projects in the City and is in response to potential redevelopment agency changes at the State level. Mr. Marvin indicated he had divided this agenda item into 4 actions, noting that Chair Della has a conflict on the final action item. Mr. Marvin emphasized that approval today would protect housing projects. a. Authorize $102,000 Housing Set-Aside Funds to Fund Six (6) Community Service Grants for Non-profit Organizations providing Housing Services in FY 2011/2012 (Continued from March 23, 2001 RDA Meeting) Action: Adopted RDA Resolution 852 (5-0) Agencymembers Selfridge and Downey asked if the City is obligated to fund these agreements if the State abolishes redevelopment agencies. Mr. Marvin and Assistant City Manager Cohn stated that these agreements are between the Redevelopment Agency and these agencies and in no way obligate the City. Mr. Cohn stated that language could be added to the agreements declaring that the City would not fund these agreements should the State abolish redevelopment agencies. Agencymembers Downey and Selfridge supported including such language and Chair Della Sala concurred. Agency Chair Della Sala opened public comment on this item and seeing no requests to speak closed public comment. On a motion by Councilmember Downey, seconded by Councilmember Selfridge, and carried by the following vote, the Redevelopment Agency approved Authorization of $102,000 Housing Set-Aside Funds to Fund Six (6) Community Service Grants for Non-profit Organizations providing Housing Services in FY 2011/2012 and included an additional clause in these agreements that if the State does not honor RDA funding that funding would not be forthcoming to these agencies from the City:  City Council Minutes Wednesday, March 30, 2011 AYES: 5 AGENCYMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 AGENCYMEMBERS: None ABSENT: 0 AGENCYMEMBERS: None ABSTAIN: 0 AGENCYMEMBERS: None RECUSED: 0 AGENCYMEMBERS: None b. Authorize an Affordable Housing Cooperation Agreement between the City of Monterey and the Redevelopment Agency of the City of Monterey; Action: Adopted RDA Resolution 853 (5-0) In response to questions by Agencymember Selfridge, Mr. Marvin explained that this action is recommended to protect the funds from being taken by the State, keeping funding locally to support housing projects. Agencymember Selfridge requested data on how much money has been spent on outside counsel on the redevelopment agency issue. Chair Della Sala opened public comment on this item and seeing no requests to speak closed public comment. On a motion by Councilmember Sollecito, seconded by Councilmember Haferman, and carried by the following vote, the Redevelopment Agency authorized an Affordable Housing Cooperation Agreement between the City of Monterey and the Redevelopment Agency of the City of Monterey: AYES: 5 AGENCYMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 AGENCYMEMBERS: None ABSENT: 0 AGENCYMEMBERS: None ABSTAIN: 0 AGENCYMEMBERS: None RECUSED: 0 AGENCYMEMBERS: None c. Authorize Amendments to the Construction Loan Agreement between Redevelopment Agency of the City of Monterey and PRI, LLC to Increase Loan Amount to $4,300,000 for Purpose of Completing Eighteen (18) Affordable Apartment Units in the Monterey Hotel Mixed-Use Project Action: Authorized Amendments to the Construction Loan Agreement (5-0) Chair Della Sala opened public comment on this item and Ron Cheshire, President of the Monterey/Santa Cruz Building Trades Council, spoke in support of the item and asked the Agency to use prevailing wages for the affordable housing projects. Mr. Cheshire indicated the Agency could be challenged if prevailing wages were not used. Carl Outzen asked the status of several issues with the property and City Attorney Mall and Housing and Property Manager Marvin responded to those items and described the status of the receivership and potential foreclosure issues. City Manager Meurer stressed that the Agency's goal is to go forward and find an adequate partner for completion of the project. Seeing no requests to speak, Chair Della Sala closed public comment. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the Redevelopment Agency authorized Amendments to the Construction Loan Agreement between Redevelopment Agency of the City of Monterey and PRI, LLC to Increase Loan Amount to $4,300,000 for Purpose of Completing Eighteen (18) Affordable Apartment Units in the Monterey Hotel Mixed-Use Project and required inclusion in the agreement that no disbursement of Redevelopment Agency funds can be done without Agency approval: 2  City Council Minutes Wednesday, March 30, 2011 AYES: 5 AGENCYMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 AGENCYMEMBERS: None ABSENT: 0 AGENCYMEMBERS: None ABSTAIN: 0 AGENCYMEMBERS: None RECUSED: 0 AGENCYMEMBERS: None d. Authorize A Loan Commitment Letter for $1,200,000 between the Redevelopment Agency of the City of Monterey and Foothill Partners. Inc. and Carl Outzen for the purpose of Funding Development of Ten (10) Affordable Apartment Units in a New Mixed-Use Building at 595 Munras Avenue Action: Authorized Loan Commitment Letter (4-0-1; Della Sala Recused) Agency Chair Della Sala recused himself from voting on this item, stating he owns property within 500 feet of 595 Munras. Chair Della Sala turned the meeting over to Vice Chair Haferman and left the Chamber. Mr. Marvin presented the agenda report. In response to questions by Agencymember Selfridge he indicated that the Agency's last action on this item only set aside funds and noted that action is not sufficient to protect the funds should the State abolish redevelopment agencies. Agencymember Downey said she could support the commitment letter if language were added to indicate it is contingent on Foothill Partners and Carl Outzen coming to an agreement with the City. Vice Chair Haferman opened public comment on this item. Mr. Cheshire stated he is not opposed to moving forward on this project and asked that prevailing wages be used. Carl Outzen spoke in favor of the item and expressed his desire to move forward. Seeing no requests to speak Vice Chair Haferman closed public comment. On a motion by Councilmember Downey, seconded by Councilmember Sollecito, and carried by the following vote, the Redevelopment Agency authorized a Loan Commitment Letter for $1,200,000 between the Redevelopment Agency of the City of Monterey and Foothill Partners. Inc. and Carl Outzen for the purpose of Funding Development of Ten (10) Affordable Apartment Units in a New Mixed-Use Building at 595 Munras Avenue and required the inclusion of language that the loan is only valid if an agreement can be reached with Foothill Partners and Carl Outzen: AYES: 4 AGENCYMEMBERS: Downey, Haferman, Selfridge, Sollecito NOES: 0 AGENCYMEMBERS: None ABSENT: 0 AGENCYMEMBERS: None ABSTAIN: 0 AGENCYMEMBERS: None RECUSED: 1 AGENCYMEMBERS: Della Sala Vice Chair Haferman asked Chair Della Sala to rejoin the meeting and handed the gavel back to Chair Della Sala. Adjourn to City Council Meeting PUBLIC APPEARANCE 2. Approval of an Affordable Housing Cooperation Agreement between the Redevelopment Agency of the City of Monterey and the City Council (Plans and Public Works) (Plans & Public Works - 406-05) Action: Adopted Resolution 11-030 C.S. (5-0) approving Affordable Housing Cooperation Agreement and Related Findings 3 City Council Minutes Wednesday, March 30, 2011 Mr. Marvin presented the agenda report. Mayor Della Sala opened public comment on this item and seeing no requests to speak closed public comment. Councilmember Selfridge requested staff prepare a report detailing how RDA funds helped the community in 2010. On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council approved an Affordable Housing Cooperation Agreement between the Redevelopment Agency of the City of Monterey and the City Council: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None ADJOURNMENT Having no more business before the Council, Mayor Della Sala adjourned the meeting at 5:19 p.m. Respectfully Submitted, Approved, /s/ /s/ Catherine A. Raynor Chuck Della Sala Senior Assistant City Clerk Mayor 4