Loading...
HomeMy WebLinkAbout05-18-1995 Special City Council Minutes MINUTES SPECIAL CITY COUNCIL MEETING CITY OF LAKE ELSINORE 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, MAY 18, 1995 ~ ***************************************************************** CALL TO ORDER The special city council Meeting was called to order by Mayor Washburn at 8:30 a.m. PLEDGE OF ALLEGIANCE The Pledge Of Allegiance was led by city Attorney Harper. ROLL CALL PRESENT: COUNCILMEMBERS: ALONGI, BENDER, BRINLEY, PAPE, WASHBURN ABSENT: COUNCILMEMBERS: NONE Also present w~re: City Manager Molendyk, City Attorney Harper and city Clerk Kasad. PUBLIC COMMENTS - AGENDIZED ITEMS None. - BUSINESS ITEMS 1. Sports ComDlex & Entertainment Center Understandinq. (F:131.1) Memorandum of city Manager Molendyk gave an overview of the Sports Complex and Entertainment Center and pointed out some changes that should be addressed in the MOU. He noted that after the MOU was submitted the City Attorney made some changes and there are a few errors in the document. City Manager Molendyk explained that the project is proposed to be located at 1-15 & Lake Street. He pointed out that the property in question has been in the community for a long time and is severely scarred from years of mining, since the 1800's, and the city has been looking at different types of uses that might be appropriate for this piece of land. He noted that it has been considered for residential and in 1986 it was part of a study to relocate the Riverside International Raceway; at that time the developers looked at other sites and now they have returned to this site. city Manager Molendyk stated that environmentally this is a scarred piece of land and could be cleaned up through this type of project. He noted that it is bowl shape which would eliminate sound problems. He explained that this would be a 940 acre park u~ +-"', '" ....."',...0 +.....".,...1r ; n ; t- r1nn woul d take care of a lot of PAGE TWO - SPECIAL CITY COUNCIL MEETING - MAY 18, 1995 Sam Bowlby introduced the other participants in the project and detailed their qualifications. He explained that the race course will not run at night and will be used approximately 18 days a year. He noted that the entire project will look like a park and they will utilize the secondary water to enhance the park theme. He pointed out that there will be no portable potties on site because all the facilities will be permanent. He noted that there will be lots of trees and a major buffer zone which will block sound from the surrounding areas. He explained that Horsethief Canyon is the only area that might get some small amount of noise; and the impact of this project is minimal in comparison to the proposed residential project which consisted of 3,700 homes. Mr. Bowlby gave an overview of the different facilities which will be found on the site. Mr. Dean stated that the major issue in regard to this project is the fact that there are many opportunities for providing public amenities. He explained that this is a positive development and will help the city grow. He pointed out the site and its condition and what will become an asset to one of the major entry ways into the City and set a high standard for the City as well as providing jobs. City Manager Molendyk stated that the purpose of this meeting is to introduce Council to the project; and the developer would like the endorsement by the Council through an MOU. He explained that the MOU states that the City will make its best effort to fast track the project so that they can get underway. Ne noted that there is no money commitment by the City and there are a few corrections that should be made to the agreement. City Manager Molendyk explained that the City is considering an entertainment tax and this project would provide that type of revenue as well as providing jobs and sales tax increment. He noted that the events would generate $1.00 per ticket to $3.00 per ticket for the community. City Manager Molendyk noted changes to the MOU as follows: Section A 2 (5) should read: The City will assist in making available, if needed by the proj ect, tax eXE!mpt municipal financing secured by a lien on the sUbject site or other collateral as appropriate for construction of project off sites and public improvements only. This commitment is constrained by the specifics of any proposed financing and the applicable Federal and State laws. This includes off-sites for streets, water sewer etc. This potential financing amount is limited to a maximum of fifteen million dollars ($15,000,000). Section B 1 (c) should read: The Partnership will provide public relations and advertising for the Project. City Manager Molendyk explained that the purpose of the MOU is to be sure that Council approves of the project before they go out and spend large amounts of money. He further explained +-'h::a+- +-h.o 'Mf"'\TT ~~~M~ ~ _______ ._ .'L.._':_ .:_____.L.____ __ _~_...... - - PAGE THREE - SPECIAL CITY COUNCIL MEETING - MAY 18, 1995 "'"' Mayor Pro Tem Bender stated that the project in itself he supports due to the increase of jobs and the services that will spillover into the community. He noted that the site is not suitable for a housing tract and this proposal provides a much more realistic approach to the use of that site. He explained that he does not have a problem with the MOU and stated his understanding of the language of the MOU. Councilman Pape stated that from what he has seen this seems to be a great project and he has heard favorable comments from the community. He asked what FIA is. Mr. Bowlby stated that it is Federation International Automobile and they control automobile races and part of motor cycle racing. He explained that the track would be FIA approved to provide international races which are televised allover the world. Currently no track in the United states meets these standards for track safety and this will be the first. He explained that in the past some tracks have met the standards, then did not choose to maintain them and lost their FIA approval. city Manager Molendyk stated that architecturally they are following a theme similar to the Stadium, with fixed seating and suites. Councilman Pape asked what they expected the seating capacity of the amphitheater. Mr. Bowlby stated that they have not decided what the amphitheater would seat since it is not terribly large. Mr. Dean stated that it would be a more intimate setting since it is intended to be used for orchestras and plays. - City Manager Molendyk stated that the amphitheater would be small and not suitable for any large scale event. Councilman Pape asked if the developers were going to utilize funds from NASDAQ. Mr. Bowlby stated that it is one of the options but it not the direction they choose to use. He explained that they will try to gain funding through the private sector. Councilman Pape noted that the option can be extended for one year and six months, and asked if both parties have to agree on the extension. City Attorney Harper stated that it is part of the MOU and as the project progresses it will automatically extend. He reminded Council that this is a Memorandum of Understanding and not a Development Agreement. Councilwoman Brinley asked if 760 acres was going to be natural park. Mr. Bowlby stated that most of the 760 acres will be landscaped and natural area and will not be hard surfaces. Councilwoman Brinley asked if there would be horse trails and walking trails. Mr. Bowlby explained the development and how the facilities are laid out. Councilwoman Brinley stated that this is an issue that will be addressed at Planning commission level, since the county has a trails program and each trail system is compatible with the next. - PAGE FOUR - SPECIAL CITY COUNCIL MEETING - MAY 18, 1995 Councilwoman Brinley clarified the process that the developer would have to go through, and stated that she was in favor of the project. Councilman Pape asked when the race track would be completed. Mr. Dean stated that it would be completed in the first phase and that would be approximately August, 1996. Councilman Alongi asked if in item 5 if that is the same financing that the City used in Tuscany Hills. City Attorney Harper stated that it is the same legislation, and explained that Tuscany Hills was a residential development secured by individual residential lots and this would be secured by the entire project area. Councilman Alongi asked if they don't perform or something happens and the City has to foreclose would it come out of the City's Marks-Roos Bond pool. City Attorney Harper stated that he did not know if it would come out of the same pool, and that is under the assumption that there is any financing at all. He pointed out that the laws are changing the Mello-Roos laws. Councilman Alongi stated that he feels that this is a good project and is in favor of any project that will promote revenue to the City. He stated that the City is understaffed and is at maximum load and questioned item 4 which promotes fast tracking and asked how staff will be able to handle this when they are over worked to begin with. City Manager Molendyk stated that this is like any other development that requests fast tracking, since the developer pays for the time and the City will make its best efforts to meet their needs, but it is not one for free. Councilman Alongi asked who did the paper work and engineering for the Wal-Mart and asked if it was sent to BSI. ci ty Manager Molendyk explained that there are two ways that the City can go depending on how fast they develop the project. He further explained that if the work can be done in house, then the time will be charged off to the Planning and Engineering Departments and if they wanted to pay extra to use an outside consultant to expedite their time schedule they can have that opportunity as well. Councilman Alongi stated that if they are looking for approval from the City Council to go forward with the project, then he does not have a problem with it, however he does have a problem with a MOU sitting in front of him that already has an approval date on it, which would lead the public to believe that the Council has already made a decision on the item and is in violation of the Brown Act. He explained that he feels that with the losses of the Diamond and the problems with the Lake this program would balance the issue, but he does have a problem with the way the City is doing business. He further explained that he has been told that there have been some meetings with the Developer, city Manager and the Mayor and now all of a sudden there is a MOU presented with today's date. Councilman Alongi stated that he would like to see this project go forward without being handled like the ball field and the Lake were done. He commented that he feels that it is unfair to ~hp ~lhli~ ~n hp~n~ ~~ ~~ ~~._~~, ~_ ~~~_ ______ - - PAGE FIVE - SPECIAL CITY COUNCIL MEETING - MAY 18, 1995 - same type of financing as was used on the Stadium and is a Mello-Roos bond which the city has no responsibility for. He explained that if the city does not provide funds, and the project does not pay their taxes, then the obligation of the city is to assist the bond holders by foreclosing for the benefit of the bond holders and there is no city financial obligation. Councilman Alongi stated that he would like to see the Council approve the project in concept so that it can go forward pertaining to the EIR' s and the rest of the necessary steps and this MOU set aside. He explained that he does not appreciate approving a MOU before he has a chance to sit down with the developer, as others have, and be given the opportunity to ask questions that he would like to have answered about the proj ect. Ci ty Manager Molendyk stated that the meeting today is for that purpose. councilman Alongi stated that the meeting today should have been a study session to give all the members of Council the opportunity to present issues that they feel are important, then put a Memorandum of Understanding together and then come back for a meeting to make the final decision. He stated that he understood why the developer wished to fast track the project, but he feels that he has a responsibility to the community to represent them in a fair and equitable manner. He explained that this attitude is in regard to every developer that comes to the ci ty . Councilman Alongi stated that he felt that no one should get special treatment such as fast tracking. He noted that a small restaurant came to the city and it took him four months to get his project done, and because this is a large project it is asked that the Council give the developer special entitlement and indicated that is why he has a problem with this. ~ city Attorney Harper stated that the financing, if it is used, can only be used for publicly owned improvements. He explained that there is no way that the financing can be used inside the project. Mayor Washburn stated that the Ri verside County Economic Development Agency brought the project to the City and asked that he sit in on the meeting with City Manager Molendyk. He explained that they talked about the project, the proposed site and asked if he felt Council would like to go forward with it. He noted that the meeting today is to address Council's concerns and to hear what the public has to say, however it will take months for the process to occur and there is plenty of time to put in mitigation measures. Councilwoman Brinley asked if the noise from the project would travel out over the freeway into the hill area on the other side of the freeway. Mr. Bowlby stated that they are comfortable with the 35 decibel level because their sound engineers through all their testing stated that the loudest the sound level reached was 35 decibels which is more than acceptable. _. u.....u........ T..T.........l-.'hn....... ~-ho.... ,....1101"'1 n.r t-hn.q,:o n,:orqnnq whn wi sh~d to PAGE SIX - SPECIAL CITY COUNCIL MEETING - MAY 18, 1995 serious financial problem in the city. She questioned the section regarding damages in the MOU. City Attorney Harper stated that if they do not finish the project, then the City can sue them for damages to the City and not the other way around. She stated that she felt that this should go before the public in a Regular City Council Meeting before the Council votes yes or no. Joe Garcia asked to have Lakeshore Drive and Lake Street pointed out on the map. He questioned the traffic circulation problems that the project could create and stated that he hoped that there would be no money involved from the City since it is already hard to get service from the City and a greater drain on the budget would only hurt the residents. He commented on the problems his neighborhood has had and the lack of Code Enforcement to address the problems. Norm Tanguay, representative of the Lake Elsinore Unified School District, stated that the School District likes the concept of the project and expressed his concerns regarding traffic circulation, noise and how it will affect their attempt to acquire bonding. Vicki Webber, Principal of the Luiseno Elementary School, expressed her concern regarding traffic circulation and the impact it will have on the school both during the construction period and at the time of the events. Mayor Washburn stated that this issue will be addressed at the time of the E.I.R. City Manager Molendyk stated that the City has worked with the School District in the past to mitigate problems and no major roads will be closed. He pointed out the fact that the entryway to the City will be approved because of the project since they will address drainage and improve the entire area. City Manager Molendyk addressed the fact that a possibility of utility tax was raised and. a project of this type will generate the income to the City to eliminate the need for a utility tax. vicki Webber stated that she feels that this will impact public services and questioned the impact it will have on the schools and residents. City Manager Molendyk stated that this is why it will have to go to public hearing and during the formation of the Development Agreement it would be conditioned to provide security and any extra service will be paid by the developer. Ken Young, Lake Elsinore Unified School District stated his concerns in regarding the fast tracking and pointed out that future development would occur in the sound area of the race track and it is also the site of a future school. He asked that Council consider this when they hold their public hearing and develon thA nAvPlnnmpn~ nN~Oo~on~ ~~~ ~h~ ~~~4~~~ - - PAGE SEVEN - SPECIAL CITY COUNCIL MEETING - HAY 18, 1995 ,..... Jeep Shelton, General Manager of the Chamber of Commerce stated that she is in favor of the meeting today to get the process started and she expressed confidence that the city to will have information available to the public as the project progresses. She stated that she does have some concern regarding traffic, but was very happy that the entry to the city on that end of the Valley would be improved. Ms. Shelton explained that when an economy is based on outside dollars, such as tourism dollars, it lowers the expense to do business in the community as well as the cost of living and increases the opportunity for more recreation in the area. She explained that she would encourage the city to proceed. City Manager Molendyk stated that in regard to traffic, Mr. Bowlby has met with Cal Trans and they will require all right hand turns into the site. He explained that the developers would have to improve the off-ramps, widen the roadway and use Nichols Road as the main entrance to the project. He noted that Cal-Trans will not allow the major traffic to exit on Lake Street which would eliminate some of the concern expressed. - Dale Neill stated that it is important to understand that this is not the same type of project as the stadium. He noted that this is a private funded and developed project and they are not interested in a short cut process which would prevent input from the public. Mr. Neill stated that money is not the main object because if they cannot get involved and better the community and make a difference then they would rather not pursue the project and that requires public input. He explained that they would like the project to move as rapidly as possible and legal to do. He reminded the public that this is a private project not a public project and this action today is just the first step. Lila Cardoza stated that she felt that the input should come before the decision is made and she noted that in this instance the decision is being made before the input and asked if Council was going to proceed with this action. Mayor Washburn stated that, the project will still going forward and there will be the project EIR to be approved as well as mitigation measures and other documentation. -- City Attorney Harper explained that this is a conceptual approval of that use as opposed to any specific project. councilman Alongi commented that if the developer is looking for conceptual approval, this could be addressed with a letter from each Councilperson indicating his support of the project and having the developer go forward with it. City Attorney Harper stated that he would not let the Council take that action. Councilman Alongi stated that he would write a letter to the developer if he approves or disapproves of the project without anyone telling him what to do. He explained that if the develoner is lookina for annroval from the citv. then the PAGE EIGHT - SPECIAL CITY COUNCIL MEETING - MAY 18, 1995 project should be processed like any other project is processed. He noted that there appears to be a time constraint and that is why it has been pre-approved before coming to Council. He explained that he wants to support this project, but not with getting into legal documents. City Manager Molendyk explained that the attempt of the MOU is not to commit the City in anything other than interest and that the City will make staff available on a paid basis as the developer needs services. He noted that the intent of the document, from the stand point of the developer, to have the Council act on the document and sign it is to provide an official document to take to their investors. He further explained that the intent of this document is to show that the Council as a whole supports the project, but they must still go through the process. Councilman Alongi suggested that a vote to approve the project and a letter sent to the developer indicating that would be adequate. He noted that the Council does not need to approve the Memorandum of Understanding. Councilman Alongi read #7 of the MOU and stated that this section obligates the City. - Mayor Pro Tem Bender stated that a lot of people have brought a lot of both big and small ideas to the City, but this is a project that has a skeleton and some meat on the bones. He explained that sometimes these ideas are brought to the city and the City is requested to somehow put together a project for the person or groups idea which is backwards. He pointed out that this group has done their homework and has now presented a nice project. Mayor Pro Tem Bender stated that if the City is going to try to encourage jobs, which he has heard all the Councilmembers talk about, then this project meets those standards and if he can help the project go forward in a timely manner, he will do so. - Councilwoman Brinley stated that to her an MOU is like an estimate, and after an agreement has been reached, then the contract can be drawn up. She explained that this is just the concept and next it will have to go before Planning Commission for the Disposition & Development Agreement and then the Specific Plan and on to Council level so there will be plenty of time for input. Councilman Pape stated that he would like to add one item to the MOU on behalf of the ci ty which would be under B. Partnership's Responsibility item (h) to read: The partnership will make its best effort to hire local citizens to work on the project during the construction phase as well as after completion in the facilities. MOVED BY PAPE, SECONDED BY BENDER AND CARRIED BY A 4-1 VOTE WITH ALONGI ABSTAINING TO APPROVE THE MOU WITH THE ADDITION OF Bl (h) TO READ AS FOLLOWS: THE PARTNERSHIP WILL MAKE ITS BEST EFFORT TO HIRE LOCAL CITIZENS TO WORK ON THE PROJECT DURING THE CONSTRUCTION PHASE l\~ WRT,T, l\~ l\FTRR C'()MPT,RTT()N TN THR Fl\C'TT,TTV_