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Home My WebLink About10-12-2010 RDAMINUTES REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CA 92530 TUESDAY, OCTOBER 12, 2010 CALL TO ORDER Chairman Magee called the meeting to order at 7:38 p.m. ROLL CALL PRESENT: CHAIR MAGEE VICE-CHAIR BUCKLEY AGENCY MEMBER BHUTTA AGENCY MEMBER HICKMAN AGENCY MEMBER MELENDEZ ABSENT: NONE Also present: Executive Director Brady, Agency Counsel Leibold and Agency Secretary Cowley. CLOSED SESSION (1a) CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Initiation of litigation pursuant to subdivision (c) of Gov't Code Section 54956.9: 1 potential case CLOSED SESSION REPORT Agency Counsel Leibold announced that Item (1a) was discussed during closed session and there is no reportable action. CONSENT CALENDAR (2) Approval of Redevelopment Agency Minutes Lake Elsinore Redevelopment Agency Regular Meeting Minutes of October 12, 2010 Page 2 of 5 Recommendation: Approve the following minute(s): a) Regular Meeting -September 28, 2010 b) Joint City Council/Redevelopment Agency Meeting - September 28, 2010. (3) Warrant List Dated September 30. 2010 Recommendation: Authorize payment of Warrant List dated September 30, 2010. It was moved by Agency Member Bhutta and seconded by Vice-Chair Buckley to approve the Consent Calendar Items No. 2 through 3. The motion unanimously carried by the following vote: AYES: Agency Members: Bhutta, Hickman, Melendez, Vice-Chair Buckley and Chairman Magee. Noes: None. PUBLIC HEARING(S) No public hearings scheduled. BUSINESS ITEM(S) (4) Consideration of Resolution No. 2010-005 RDA Authorizing the Issuance of Bonds and Approving Bond Documents in Connection with the Issuance of the Lake Elsinore Public Financing Authority Tax Allocation Revenue Bonds (1999 Series A Refunding) 2010 Series C in the Aggregate Principal Amount Not To Exceed $31,000,000; and Authorizing the Taking of Certain Other Actions Related Thereto Recommendation: It is recommended that the Agency Board adopt Resolution No. 2010-005 RDA Authorizing Issuance of bonds and Authorizing Bond Documents. Director of Administrative Services Riley provided an overview of the item to the Agency Board, the Authority Board and the City Council adopt a City resolution authorizing the issuance of bonds and bond documents. He stated the finance team has determined that it is feasible to refinance the Authority's 1999A Bonds and related loans to the Agency at an estimated savings in the first year ranging from $625,000 to $675,000 and thereafter annual savings ranging from $75,000 to $100,000. He stated the proposed refunding bonds would be issued by the Authority and the repayment is by way of tax increment from the Redevelopment Project Areas No. 1 and 2. He indicated because of the uncertainty of interest rates, staff recommends that the City and Agency authorize the issuance of bonds in an amount not to exceed $31,000,000. Lake Elsinore Redevelopment Agency Regular Meeting Minutes of October 12, 2010 Page 3 of 5 It was moved by Redevelopment Agency Member Melendez and seconded by Redevelopment Agency Member Hickman to adopt Resolution No. 2010-064, approving loan agreements to be entered into by the Redevelopment Agency of the City of Lake Elsinore in connection with the issuance of the Lake Elsinore Public Financing Authority Tax Allocation Revenue Bonds (1999 Series a refunding), 2010 series C, in the aggregate principal amount not to exceed $31,000,000; and authorizing the taking of certain other actions related thereto. The motion unanimously carried by the following vote: Ayes: Agency Members: Bhutta, Hickman, Melendez, Vice-Chair Buckley and Chairman Magee. Noes: Agency Members: None. Absent: None (5) Affordable Housing Loan Agreement (Lakeview Apartments) Recommendation: It is recommended that the Agency Board take the following actions: (1) Approve the Affordable Housing Loan Agreement in substantially the form provided and authorize the Executive Director to execute the final form of the Loan Agreement subject to such minor modifications as approved by Agency Counsel; and (2) Authorize the Executive Director to execute any other ancillary documents necessary to effectuate the Agency loan and affordability covenants. Agency Counsel Leibold provided an overview of the project to the Agency Members. She requested the Agency authorize the Executive Director to execute the final form of the Affordable Housing Loan Agreement and allow the Executive Director to execute the agreement and any other ancillary any documents necessary to effectuate the Agency loan and affordability covenants. Chairman Magee asked Mr. Shawn Burrows who represented the new owners of the project if they would comply with the federal loan requirements that prohibits the occupancy of the units by un-documented or illegal aliens. Mr. Burrows stated both phases I and II are subject to existing federal regulatory agreements that have been enforced since the projects were developed in 1980. Agency Member Melendez confirmed with Mr. Burrows that the Lakeview Apartments were originally built with government money. She then expressed her concerns about why the apartments were not maintained over the past. She noted that more government money would be going into the complex to bring it up to standard and asked what was to prevent the deterioration of this complex again. Mr. Burrows advised Council that they are taking over the project from a prior owner and he could not answer from the prior owner. He agreed that there were repairs on the list that should have been taken care of before it got to this point; however, this project was thirty-years old and the project had been inspected by HUD annually. Vice-Chair Buckley pointed out that the new owner will improve the property, and guarantees that every occupant will be verified that they are legally able to live in the Lake Elsinore Redevelopment Agency Regular Meeting Minutes of October 12, 2010 Page 4 of 5 establishment. He stated this property has been deemed affordable housing which is a benefit to the Redevelopment Agency. Agency Member Bhutta asked Mr. Burrows if they had any money set aside for Capital improvements. Mr. Burrows stated the engineer's report shows a thirty-year table of possible improvements. He stated the owners would be reserving funds annually for the capital improvements listed in the engineer's report. Agency Member Hickman asked if the units are showing excessive need for repairs. Mr. Burrows indicated the units are in need of repairs but not major. Agency Counsel Leibold advised the Agency Members that the Redevelopment Agency's Regulatory Agreement and Loan Agreement also requires that the developer maintains a reserve for capital improvements. It was moved by Vice-Chair Buckley and seconded by Agency Member Bhutta to authorize the Executive Director to execute the final form of the Affordable Housing Loan Agreement and authorize the Executive Director to execute any other ancillary documents necessary to effectuate the Agency loan and affordability covenants. The motion unanimously carried by the following vote: Ayes: Agency Members: Bhutta, Hickman, Melendez, Vice-Chair Buckley and Chairman Magee. Noes: None. PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE There were none. PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES There were none. EXECUTIVE DIRECTOR COMMENTS There were none. LEGAL COUNSEL COMMENTS There were none. BOARD MEMBER COMMENTS Vice-Chair Buckley pointed out that the Redevelopment Agency saved $2.5 million tonight. Lake Elsinore Redevelopment Agency Regular Meeting Minutes of October 12, 2010 Page 5 of 5 Agency Member Melendez requested a listing of all projects that the Redevelopment Agency has spent money on since the Agency was formed and would like to receive the document, if at all possible, by the next meeting. ADJOURNMENT There being no further business to come before the Agency Board, the meeting adjourned at 8:05 p.m. to a regular meeting be held on Tuesday, October 26, 2010, at 7:00 p.m. in the Cultural Cent loc ed 18„n Main Street, Lake Elsinore, CA 92530. - v R MAGE , IRMAI DEVELOPMEN, GENCY A LAKE ELSINORE REDEVEL PMENT AGENCY I