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HomeMy WebLinkAbout08-11-2009 RDA Page 1 of 8 CITY OF LAKE ELSINORE F11, REDEVELOPMENT AGENCY MEETING MINUTES August 11th, 2009 CALL TO ORDER Chairman Buckley called the regular meeting of the Lake Elsinore City Council held on Tuesday, August 11`h, 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. I 5:00 P.M. CONVENE THE MEETING There was no one who wished to speak regarding the Closed Session items. 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 F I Lake Elsinore Redevelopment Agency Meeting Regular Meeting Minutes of August 11, 2009 Page 2 of 8 i (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 j only 2 items, not a total of 4. She clarified there was one potential case for Item 1 A and 1B or you could interpret Item 1B as deleted. She noted there was no reportable action. PUBLIC COMMENTS - NON-AGENDIZED ITEMS -1 MINUTE I 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 Lake Elsinore Redevelopment Agency Meeting Regular Meeting Minutes of August 11, 2009 Page 3 of 8 Fill (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. I Lake Elsinore Redevelopment Agency Meeting Regular Meeting Minutes of August 11, 2009 Page 4 of 8 i i I 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. I AYES: Bhutta, Buckley, Hickman, Magee, Melendez. NOES: None. Passed and adopted the following Resolution: "Resolution No. 2009-13 - 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." I 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 ~i housing and the County and the City is receiving a benefit due to the taxes that will be now paid. Lake Elsinore Redevelopment Agency Meeting Regular Meeting Minutes of August 11, 2009 Page 5 of 8 I 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 r requirements can not be greater than 25 percent of the purchase price. A l ( 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 for 2 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, 1 i 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. 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. I 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." I 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. Executive Director 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. i I 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. 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 j 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. Thomas uckley Redevelopment ency Chair City of Lake sinore, California Attest: Debora Thomsen, CIVIC Redevelopment Agency Secretary City of Lake Elsinore, California