HomeMy WebLinkAbout2009-08-25 RDA Item No. 2CITY Oh
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'I DREAM EXTREME
REPORT TO THE REDEVELOPMENT AGENCY
TO:
FROM:
DATE:
SUBJECT:
Discussion
HONORABLE CHAIRMAN
AND MEMBERS OF THE REDEVELOPMENT AGENCY
ROBERT A. BRADY
EXECUTIVE DIRECTOR
AUGUST 25, 2009
APPROVAL OF MINUTES
The following Redevelopment Agency Minutes are submitted for approval as follows:
(a) Joint Study Session City Council / Redevelopment Agency
August 11, 2009
(b) Redevelopment Agency Regular Meeting
August 11, 2009
Recommendation
Approve the Minutes as submitted.
Prepared by: Debora Thomsen
UUU"""
Agency Secretary
Approved by: Robert A. Brady
Executive Director
RDA August 25, 2009 Item No. 2
Page 1 of 20
Page 1 of 11
CITY OF LAKE ELSINORE
JOINT CITY COUNCIL / REDEVELOPMENT AGENCY
STUDY SESSION - AGENDA REVIEW
MINUTES
August 11th, 2009
(not official until approved)
CITY COUNCIL
CALL TO ORDER - 4:00 PM
Mayor Magee called the regular meeting of the Lake Elsinore Joint City Council /
Redevelopment Agency Agenda Review Study Session to order at 4:00 p.m. on
Tuesday, August 11`h, 2009 in the Cultural Center, located at 183 N. Main Street,
Lake Elsinore, CA 92530.
PRESENT: Mayor Magee, Mayor Pro Tern Melendez Councilmember
Bhutta (4:02), Councilmember Hickman.
ABSENT: Councilmember Buckley.
Also present: City Manager Brady, City Attorney Leibold, and City Clerk
Thomsen.
Staff members present included, Acting Community Development Director
Weiner, Public Works Director / City Engineer Seumalo, Director of Lake and
Aquatics Kilroy, Parks and Recreation Director Gonzales, and Building and Code
Enforcement Manager Chipman.
PRESENTATIONS / CEREMONIALS
Help Our People of Elsinore (HOPE) Quarterly Update
The Mayor confirmed with City Manager Brady Ron Hewison would be
representing HOPE.
PUBLIC COMMENTS - NON-AGENDIZED ITEMS -1 MINUTE
None.
RDA August 25, 2009 Item No. 2
Page 2 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 2 of 11
PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES
None.
CONSENT CALENDAR
(2) Approval of City Council Minutes NO COMMENTS / QUESTIONS
Recommendation: Approve the following minute(s):
(a) Joint Study Session City Council / Redevelopment Agency
July 14, 2009 and July 28, 2009
(b) Regular City Council Meeting Minutes
July 14, 2009 and July 28, 2009
(3) Warrant List Dated July 30, 2009
Recommendation: Authorize payment of Warrant List dated
July 30, 2009.
Councilmember Hickman questioned the following item:
Warrant No. 100299 AmeriPride Service
City Manager Brady responded the company was responsible for the
cleaning and servicing of City Uniforms. Councilmember Hickman
questioned if this was for purchasing as well as the cleaning, to which
Mr. Brady responded they did both, when a uniform was too worn or
needed repair or replacing, they performed whichever task was needed.
Mayor Magee questioned the following Item:
Revenue Item No. 620:
Cost Recovery System Fund reflects a deposit of $60,000. Mayor Magee
wanted to know if this was from one deposit or if this was the balance from
multiple deposits. City Manager Brady stated he would have to obtain
further information.
RDA August 25, 2009 Item No. 2
Page 3 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 3 of 11
Mayor Pro Tern Melendez questioned the following items:
Warrant No. 100307 Bloomfield Group, Inc.
City Manager Brady responded the detail states Certificate Form for
Graphics Services for Park Signage; and did not have further details.
Warrant No. 100310 Burke, Williams & Sorensen, LLP
City Attorney Leibold stated they were the firm who was responsible for
collecting what was owed to the City regarding the Community Facilities
Districts (CFD).
Councilmember Hickman questioned Dennis Anderson regarding how
Burke, Williams & Sorensen made their money:
CFD Consultant Dennis Anderson came forward to state the firm collected
both Burke, Williams & Sorensen's fees and the delinquent CFD fees.
They turn over all of the funds they collected to the City and then invoiced
the City for their services.
Mayor Pro Tem Melendez continued with her questions related to the
following items:
Warrant No. 100325 Down's Commercial Fueling, Inc.
She questioned if this was a line item charge for fuel used by departments
or if this was a charge for City equipment's fuel coverage. City Manager
Brady responded all vehicles are under the Public Works Department,
therefore fuel charges are not broken down by department. This charge is
for the total amount of fuel used by the City and is covered by the annual
budget.
Warrant No. 100414 Select Staffing
City Manager stated this charge is for the temporary receptionist. He
further clarified the previous receptionist was in another department filling
in for an employee who is out on maternity leave.
Mayor Pro Tern Melendez questioned the following item:
Warrant No. 100448 West Coast Motor Sports
City Manager Brady stated this was for replacement motorcycle covers.
Councilmember Hickman questioned why 5, to which City Manager Brady
confirmed the motorcycles are rotated.
RDA August 25, 2009 Item No. 2
Page 4 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 4 of 11
(4) Claims Against the City NO COMMENTS / QUESTIONS
Recommendation: Reject the claims listed and direct the City Clerk's
office to send a letter informing the claimants of the decision.
(5)
Uses of Open Fire NO COMMENTS / QUESTIONS
Recommendation: Consider the attached proclamation suspending the
issuance of burn permits and other uses of open fire.
(6) Purchase of Pressure Washer / Vacuum and Filtration Unit
Recommendation: Authorize the City Manager to execute any and all
documentation on behalf of the City in Connection with the purchase of
the pressure washer / vacuum and filtration unit.
Mayor Pro Tern Melendez asked what the total balance was for the NPES
funds. Public Works Director / City Engineer Seumalo stated he did not
know the exact amount but it was several hundred thousands of dollars
(7) Gravel Road Paving FY 2009 / 2010 - Notice of Inviting Bids
Recommendation: Direct staff to advertise the Phase II Gravel Roads
Paving project for construction bids.
Councilmember Hickman asked if the majority of roads were in Country
Club Heights. Public Works Director / City Engineer Seumalo responded
yes, however, this did not include all of the roads, the work would be done
in 2 Phases, and this was just related to Phase 1.
(8) Residential Antidisplacement and Relocation Plan for The Pottery Court
Project NO COMMENTS / QUESTIONS
Recommendation: Adopt the attached Resolution No. 2009-
approving the Residential Antidisplacement and Relocation Assistance
Plan for Pottery Court, Lake Elsinore, California (on file with the City
Clerk).
PUBLIC HEARING(S)
None.
RDA August 25, 2009 Item No. 2
Page 5 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 5 of 11
APPEAL(S)
(9) AP29
(Continued from the July 14m, 2009 City Council Meeting)
Recommendation: Deny the appeal and uphold the decision to place the
property into Structure Abatement.
Councilmember Hickman requested input from Erik Lunde, the current
property owner regarding what his plans were regarding the property.
Erik Lunde, stated he had filed the appeal giving history of the conflicts.
He stated in October 2006 a lessee took the liberty of removing interior
walls, all plumbing and electrical systems, and started construction on a
major remodel without City approval or Building permits. Once
discovered, the City worked with the owner, who evicted the tenant, and
stopped the work. The house has been left in this state.
He clarified he had been notified by the City starting in 2007 requesting
removal of Graffiti and rubbish. He stated he has spent $15,000. cleaning
the property, removing trash, boarding up the windows, installing K-rails to
prevent future access, etc. The City contacts him periodically when graffiti
needs to be removed, which he has taken care of immediately. He
thought all issues were resolved.
He noted he has received conflicting information from the City, the
Planning Department felt keeping the house and incorporating it into the
future development was a positive plan. Mr. Lunde stated previously
when the original Environmental Impact Report was done; the house was
referenced as Historic. He would still like to keep the property, and
incorporate it as planned into the future development.
Starting in October 2008, Mr. Lunde stated he started receiving notices
the property structurally was unsafe and was being placed in Abatement
proceedings. Mr. Lunde stated the house is structurally sound.
Councilmember Hickman requested verification Mr. Lunde wanted to
incorporate the structure into the new development, Spyglass Ranch to
which Mr. Lunde responded positively.
RDA August 25, 2009 Item No. 2
Page 6 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 6 of 11
Eric Lunde noted the newspaper stated the house has been vacant for
20 years, which is false. He displayed a letter from the previous owner,
Realty Center, Inc. in Lake Elsinore stating from October 1982 to February
2004, "the Villa was leased over those years as a residence and was
never vacant in between tenants more than a month or two or so." He
stated most of the speculation is who lived there; rumor has Johnny
Weissmuller, former Olympian and television actor living and visiting the
house.
Mayor Magee noted the location of the house has made it a prime focal
point when the property is painted as a canvas for graffiti. He noted if the
house were to remain, the response time of cleanup needed to be quicker.
He questioned Mr. Lunde regarding his plans on He noted previously the
plans called for 9 estate lots, now plans reflected only 2 lots. Mayor
Magee asked if the building remained; a structural evaluation and proper
permitting would be requested, and asked what stage the future project
(Spyglass Ranch) was at. Mr. Lunde responded the plans were ready to
submit to the Planning Commission in several weeks.
Councilmember Bhutta requested Mr. Lunde to keep at a minimum the
amount of time City staff would need to spend monitoring the property.
Councilmember Hickman responded, noting the staff report states the City
has only spent 10 hours to date. Councilmember Hickman requested
clarification of what the hours were used on. Building and Code
Enforcement Manager Chipman stated the hours were administrative
hours, and confirmed when graffiti abatement was needed Mr. Lunde took
care of the abatement.
Mayor Pro Tem Melendez requested a copy of the letter from the previous
owner, which was provided to the City Clerk.
Mr. Lunde noted the house lately has received ample exposure in
newspapers and has drawn the interest of many. What he would like to
receive tonight is clear direction from the Council for the future.
BUSINESS ITEM(S)
(10)
Levy of a Special Tax
RDA August 25, 2009 Item No. 2
Page 7 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 7 of 11
Recommendation: Adopt a resolution of intention to form Community
Facilities District No. 2009-01 (Park and Street Lighting Maintenance) and
to levy of a special tax within said district and scheduling the public
hearing for September 22, 2009.
City Manager stated Pardee Homes had requested this item be continued
off calendar.
PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
None.
REDEVELOPMENT AGENCY
Vice Chair Bhutta led the meeting in the absence of Chairman Buckley.
PUBLIC COMMENTS - NON-AGENDIZED ITEMS -1 MINUTE
None.
PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES
None.
CONSENT CALENDAR
(2) Approval of Redevelopment Agency Minutes
NO COMMENTS / QUESTIONS
Recommendation: Approve the following minute(s):
(a) Joint Study Session City Council / Redevelopment Agency
July 14, 2009 and July 28, 2009
(b) Redevelopment Agency Regular Meeting
July 14, 2009 and July 28, 2009
RDA August 25, 2009 Item No. 2
Page 8 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 8 of 11
(3) Warrant List Dated July 30. 2009
Recommendation: Authorize payment of Warrant List dated
July 30, 2009.
Agency member Melendez questioned the following item:
Warrant No. 6698 Cooper Carry, Inc.
She questioned the large dollar amount, asking the total funds which had
been spent to date. Acting Community Development Director Weiner
stated to date 85 percent had been spent of the total approved amount of
$201,000.
(4) Residential Antidisplacement and Relocation Plan for The Pottery Court
Project
Recommendation: Adopt the attached Resolution No. 2009-
approving the Residential Antidisplacement and Relocation Assistance
Plan for Pottery Court, Lake Elsinore, California (on file with the Agency
Secretary).
Agency member Hickman requested Redevelopment Agency (RDA)
Manager Steve McCarthy to come forward. Manager McCarthy is working
to finding comparable units for the tenants to rent. Agency member
Hickman questioned if there have been any problems. Mr. McCarthy noted
there have been no complaints to date.
Agency member Magee confirmed with Manager McCarthy if the
relocation housing would be an upgrade to their current living conditions,
to which he received a positive response.
PUBLIC HEARING(S)
None.
BUSINESS ITEM(S)
(5) Resolution Authorizing a Commitment of Low and Moderate Income
Housing Funds to Provide Financing for the Neighborhood Stabilization
Program
RDA August 25, 2009 Item No. 2
Page 9 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 9 of 11
Recommendation: Approve Resolution No. 2009-_ authorizing a
commitment of $898,250. from the Redevelopment Agency's 20 percent
Low / Mod Housing Set-Aside Fund for purposes of providing temporary
financing for the acquisition / rehabilitation of foreclosed properties within
the City of Lake Elsinore pursuant to the County's Neighborhood
Stabilization Program and authorize the Executive Director to enter into a
loan agreement with RHDC and related ancillary documents.
It was noted representatives from RHDC would be available to answer
questions at the City Council meeting.
(6) Buxton Retail List Assessment NO COMMENTS / QUESTIONS
Recommendation: Select ten companies to be provided with
professionally prepared marketing packages.
Executive Director Brady confirmed Buxton would not be present for the
7 p.m. meeting.
PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
None.
CLOSED SESSION
Regarding the Redevelopment items, Agency Counsel Leibold stated there were
only 2 items, not a total of 4. She clarified there was one potential case for Item
1 A and 1 B or you could interpret Item 1 B as deleted.
REDEVELOPMENT AGENCY CLOSED SESSION
(1A) CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION
Initiation of litigation pursuant to subdivision (c) of Gov't Code
Section 54956.9: 2- 1 cases
RDA August 25, 2009 Item No. 2
Page 10 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 10 of 11
(113) CONFERENCE WITH LEGAL COUNSEL --ANTICIPATED LITIGATION
Initiation of litigation pursuant to subdivision (c) of Gov't Code
Section 54956.9: 2 1 cases
THE MEETING WAS RECONVENED at 4:20 P.M. BY THE CITY COUNCIL
PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
Mr. Sam Gregory noted he would like to start a RV Dry Camping "Seasonal"
business on the corner of right side of Spring Street and Lakeshore Drive.
Mayor Magee requested of Acting Community Development Director Weiner if
what was being requested was permissible. It was confirmed the existing
Municipal Code would not allow his request; therefore, there would be 2 options:
1 Submit an application to amend the Municipal Code; or
2 Submit an application to the Planning Commission for a Conditional Use
Permit.
City Attorney Liebold noted this item was not Agendized and therefore no
discussion or decision could be made. Mr. Gregory was advised to follow up on
his request at City Hall, and noted there would be a fee assessed with the
permits.
Councilmember Hickman requested where the location of the property was, it
was noted it was on Spring Street where the house on the corner was located.
Mayor Magee noted this subject was not on the Agenda; therefore no decision
could be made, and ended any further discussion.
CITY COUNCIL CLOSED SESSION
City Attorney Leibold gave an overview of the scheduled Closed Session items
identified on the City Council Agenda.
(1) CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to subdivision (b) of Gov't Code
Section 54956.9: 1 potential case
RDA August 25, 2009 Item No. 2
Page 11 of 20
Lake Elsinore City Council / Redevelopment Agenda
Joint Study Session for Agenda Review
Meeting Minutes of August 11, 2009
Page 11 of 11
ADJOURNMENT
The City Council and the Redevelopment Agency completed the business before
them at 4:35 p.m. and both adjourned to the Closed Session meeting scheduled
to be held at 5:00 p.m.
Debora Thomsen
Debora Thomsen, CIVIC
City Clerk / Redevelopment Agency Secretary
City of Lake Elsinore, California
RDA August 25, 2009 Item No. 2
Page 12 of 20
Page 1 of 8
CITY OF LAKE ELSINORE
REDEVELOPMENT AGENCY MEETING
MINUTES
August 11th, 2009
(not official until approved)
CALL TO ORDER
Chairman Buckley called the regular meeting of the Lake Elsinore City Council
held on Tuesday, August 11th, 2009 to order at 5:00 p.m. in the Cultural Center,
located at 183 N. Main Street, Lake Elsinore, CA 92530.
PRESENT: Chairman Buckley, Vice Chair Bhutta, Agency member
Hickman, Agency member Magee, Agency member Melendez.
ABSENT: None.
Also present: Executive Director Brady, Agency Counsel Leibold, and Agency
Secretary Thomsen.
Staff members present included Acting Community Development Director
Weiner, Public Works Director / City Engineer Seumalo, Director of Lake and
Aquatics Kilroy, Parks and Recreation Director Gonzales, Building and Code
Enforcement Manager Chipman, and Police Lieutenant Wilson.
5:00 P.M. CONVENE THE MEETING
There was no one who wished to speak regarding a Closed Session item.
CALL TO ORDER - 5:00 P.M.
RECESS TO CLOSED SESSION
CLOSED SESSION
(1A) CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION
Initiation of litigation pursuant to subdivision (c) of Gov't Code
Section 54956.9: 2 1 cases
RDA August 25, 2009 Item No. 2
Page 13 of 20
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of August 11, 2009
Page 2 of 8
(113) CONFERENCE WITH LEGAL COUNSEL --ANTICIPATED LITIGATION
Initiation of litigation pursuant to subdivision (c) of Gov't Code
Section 54956.9: 2- 1 cases
CALL BACK TO ORDER - 7:00 P.M.
The meeting was called to order at 7:33 p.m. by Chairman Buckley who noted all
Agency members were present.
ROLL CALL
Roll call stood as previously read.
CLOSED SESSION REPORT
Regarding the Redevelopment items, Agency Counsel Leibold stated there were
only 2 items, not a total of 4. She clarified there was one potential case for Item
1A and 1 B or you could interpret Item 1 B as deleted. She noted there was no
reportable action.
PUBLIC COMMENTS - NON-AGENDIZED ITEMS -1 MINUTE
There was no one present who wished to speak regarding a non-agenized item.
PUBLIC COMMENTS - AGENDIZED ITEMS - 3 MINUTES
There was no one present who wished to speak regarding an agenized item.
CONSENT CALENDAR
(2) Approval of Redevelopment Agency Minutes
Recommendation:
Approved the following minute(s):
(a) Joint Study Session City Council / Redevelopment Agency
July 14, 2009 and July 28, 2009
RDA August 25, 2009 Item No. 2
Page 14 of 20
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of August 11, 2009
Page 3 of 8
(b) Redevelopment Agency Regular Meeting
July 14, 2009 and July 28, 2009
(3) Warrant List Dated July 30, 2009
Recommendation:
Authorized payment of Warrant List dated July 30, 2009.
MOTION was made by Agency member Magee, second by Agency member
Hickman and unanimously carried to adopt the Consent Calendar with the
exception of Item No. 4 which was pulled for discussion.
Agency member Melendez pulled Item No. 4 for discussion.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
CONSENT ITEM PULLED FOR DISCUSSION:
(4) Residential Antidisplacement and Relocation Plan for The Pottery Court
Project
Recommendation:
Adopted Resolution No. 2009-13 approving the Residential
Antidisplacement and Relocation Assistance Plan for Pottery Court, Lake
Elsinore, California.
Agency member Melendez had questions for clarification. Page 15 of 40,
the last paragraph states income can be pro-rated and asked if the
individual was required by law to state their income and if this was
enforced. She questioned Page 19 Item N and asked for clarification of
self-certify.
Agency Counsel Leibold responded stating Page 15 interprets that a claim
cannot be processed if income is not provided, this is a requirement of the
law and yet it is not enforced. Regarding Page 19, a person must state
under penalty of perjury their legal status and a 3rd party is not required to
certify.
Agency member Hickman verified the individual must be legally residing in
the residence to receive assistance.
RDA August 25, 2009 Item No. 2
Page 15 of 20
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of August 11, 2009
Page 4 of 8
MOTION was made by Agency member Melendez, second by Agency
member Magee and unanimously carried to approve the Residential
Antidisplacement and Relocation Assistance Plan for Pottery Court and
adopt Resolution No. 2009-13.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
Passed and adopted the following Resolution:
"Resolution No. 2009-013 - A Resolution the Redevelopment Agency of the
City of Lake Elsinore, California, approving the Residential
Antidisplacement and Relocation Assistance Plan for Pottery Court, Lake
Elsinore, California."
PUBLIC HEARING(S)
None.
BUSINESS ITEM(S)
(5) Resolution Authorizing a Commitment of Low and Moderate Income
Housing Funds to Provide Financing for the Neighborhood Stabilization
Program
Recommendation:
Approved Resolution No. 2009-14 authorizing a commitment of $898,250.
from the Redevelopment Agency's 20 percent Low / Mod Housing
Set-Aside Fund for purposes of providing temporary financing for the
acquisition / rehabilitation of foreclosed properties within the City of Lake
Elsinore pursuant to the County's Neighborhood Stabilization Program
and authorize the Executive Director to enter into a loan agreement with
the Riverside Housing Development Corporation and related ancillary
documents.
Agency Counsel Leibold gave a detailed overview of the Program which is
a benefit to the City of Lake Elsinore, Riverside County as a whole and the
homebuyer. She noted the overall benefits, there would be fewer empty
homes in neighborhoods that are sifting empty due to foreclosure, first
time buyers have an opportunity to purchase a home, the Redevelopment
Agency is meeting their need to offer 20 percent of low to moderate
housing and the County and the City is receiving a benefit due to the taxes
that will be now paid.
RDA August 25, 2009 Item No. 2
Page 16 of 20
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of August 11, 2009
Page 5 of 8
Chairman Buckley noted Bruce Kelpa was available to respond to
questions as needed.
Agency member Melendez had questions for clarification, such as which
Agency is responsible for purchasing the homes and for the rehabilitation
when needed. She also requested information on how and when the
selling price is determined, before or after the rehabilitation. She
requested if stipulations could be required by the City for the homes
purchased in Lake Elsinore, such as local companies being responsible
for the rehabilitation, and if local real estate agencies could be used.
Agency member Melendez wanted to know who had oversight of the
process, from purchase to rehabilitation to selling; if there was a
requirement for the length of time the purchaser had to stay in the house.
Her questions were answered both by Agency Counsel Leibold and by
Bruce Kelpa from Riverside Housing Development Corporation (RHDC).
RHDC is responsible for purchasing and oversight of the rehabilitation. It
was not determined if the purchase price (appraisal) was before or after
the rehabilitation, however the RDA low to moderate purchasing
requirements can not be greater than 25 percent of the purchase price. A
purchase Agreement would be required stating the stipulations of the sell,
such as the residence must be owner-occupied, they must live at the
residence for20 years (eliminates house flipping). It was noted this also
provided an advantage for the City and Riverside County to work together,
individually, each Agency had less of a risk while providing an advantage
to both. It was also noted the market will determine the price of the home,
which eliminates risk for each Agency; due to lack of a dictated price.
Agency member Hickman had several questions. He requested
clarification that RHDC would go to the banks for a listing of foreclosed
homes and then would purchase blighted low income homes. He stated
his concern for first time home buyers who did not previously have
knowledge on how to maintain and manage properly a home. He
questioned if there was any type of service for the buyers.
RHDC and Agency Counsel confirmed there were classes for all
purchasers, from how to manage their finances to home maintenance.
RHDC recently opened an office in Lake Elsinore for anyone who had
questions or needed information to qualify for homes. Their address is
31641 Auto Center Drive, Lake Elsinore. It was noted the current
structure of the loans stipulated the rehabilitation could not be substantial,
30 percent of the purchase price offered a silent second for the down
payment. If a house sold for $100,000. there would be a silent second of
$30,000 to the purchaser.
RDA August 25, 2009 Item No. 2
Page 17 of 20
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of August 11, 2009
Page 6 of 8
Agency member Melendez questioned the process for finding homes that
would qualify for this program.
Chairman Buckley noted many of the foreclosed homes were in need of
repair, but the RHDC and the RDA would be interested in the homes that
were abused and not battered, again, the limit they could invest into the
property could not be greater than 25 percent. They would not be the
worst or the best house in foreclosure status.
Vice Chair Bhutta stated there was a limit that could be reimbursed,
$898,250. to which Agency Counsel Leibold confirmed the dollar limit
would effect the number of homes purchased.
Agency member Magee noted the private sector is busy buying the best
foreclosures, and this program will clean up the other homes in the
neighborhood.
MOTION was made by Agency member Magee, second by Agency member
Hickman and unanimously carried to adopt Resolution No. 2009-14
authorizing a commitment of Low and Moderate Income Housing Funds to
provide financing for the Neighborhood Stabilization Program as
recommended with the specification of using local realtors, craftsman and
labors whenever possible and a 2 year residency requirement.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
Passed and adopted the following Resolution:
"Resolution No. 2009-14 - A Resolution of the Redevelopment Agency of
the City of Lake Elsinore, California, authorizing a commitment of $898,250.
from the Redevelopment Agency's 20 percent Low / Mod Housing
Set-Aside Fund for purposes of providing temporary financing for the
acquisition / rehabilitation of foreclosed properties within the City of Lake
Elsinore pursuant to the County's Neighborhood Stabilization Program and
authorize the Executive Director to enter into a loan agreement with RHDC
and related ancillary documents."
RDA August 25, 2009 Item No. 2
Page 18 of 20
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of August 11, 2009
Page 7 of 8
(6) Buxton Retail List Assessment
Recommendation:
Selected ten companies to be provided with professionally prepared
marketing packages.
City Manager Brady noted a representative from Buxton was not present.
A lengthy discussion was held with Council and City Staff. Points of
concern were the final companies recommended by Buxton. Staff gave a
detailed overview of the selection process to the final determination noting
there was a review committee. Council did not agree with the
recommended companies noting some of the franchises were previously
doing business in the area and due to the economy had since closed their
stores.
It was determined since the perspective of the City is to "Dream Extreme"
business which support this concept should be invited to do business
here. Examples were given such as electronics, business who support
active sports, such as motorcycles and their accessories and recreational
vehicles. Council determined to approve Buxton's recommended
companies, and then for the City to send out to prospective business they
determine appropriate.
MOTION was made by Agency member Magee, second by Vice Chair
Bhutta and unanimously carried to approve the ten companies
recommended by City Staff and Buxton and for City Staff to pursue the
companies that match our "Dream Extreme" logo.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
There was no one present who wished to speak regarding a non-agenized item.
EXECUTIVE DIRECTOR COMMENTS
None.
RDA August 25, 2009 Item No. 2
Page 19 of 20
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of August 11, 2009
Page 8 of 8
LEGAL COUNSEL COMMENTS
None.
BOARDMEMBER(S) COMMENTS
None.
ADJOURNMENT
There being no further business to come before the Redevelopment Agency
(RDA) Chairman Buckley adjourned the Redevelopment Agency portion of the
meeting at 8:20 p.m. for the City Council to conclude their meeting.
Mayor Magee reconvened the City Council meeting at 8:20 p.m. and proceeded
with the rest of the City Council Meeting.
The Lake Elsinore Redevelopment Agency will adjourn to a regular meeting to be
held on Tuesday, August 25, 2009, at 5:00 p.m. to be held in the Cultural Center
located at 183 N. Main Street, Lake Elsinore, CA 92530.
Debora ?homsen
Debora Thomsen, CIVIC
Redevelopment Agency Secretary
City of Lake Elsinore, California
RDA August 25, 2009 Item No. 2
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