SALINAS
REDEVELOPMENT AGENCY
MINUTES OF MEETING
JANUARY
23, 2007
The Agency convened in the Rotunda at 4 p.m.
Present:
Chairperson
Dennis Donohue
Agency Member Tony Barrera
Agency Member Gloria De La Rosa
Agency Member Jyl Lutes
Agency Member Sergio Sanchez
Agency Member Steven Villegas
Absent:
Agency Member Janet Barnes
Also present:
Agency
Counsel Vanessa Vallarta
Secretary
Clerk Ann Camel
PRESENTATION
1. Development in the
100 Block of Main Street
AGENCY MEMBER SANCHEZ ANNOUNCED
THAT HE HAS A POTENTIAL CONFLICT OF INTEREST DUE TO HIS WIFE’S MANAGEMENT OF A
DOWNTOWN BUSINESS. HE LEFT THE MEETING
ROOM DURING DISCUSSION ON THIS ITEM.
Brian Finegan provided a status report on the hotel/condominium project
on behalf of the Salinas City Center Partners .
David Zinner, Management Principles, Financial Consultant, stated that
the fiscal benefits to the City’s General Fund would generate a net of $720,000
per year, in addition to tax increment funding. The project would generate 250 full-time jobs directly associated
with the project and an additional 230 indirectly induced jobs for an economic
impact of payroll and spending of $62.4 million per year to Monterey
County. The development costs exceed
the value, which is not surprising for a project that is creating activity in a
new area and due to escalating construction costs. There is a challenge due to current residential trends, but they
believe they can be met through a collaborative approach with the City and
Redevelopment Agency to narrow financial gaps.
Ways to make the project financially feasible include tax increment
financing; deferral of compensation for property acquisition to take pressure
off of the front end of the project; infrastructure/parking financing strategy;
fee deferral or reduction, and other mechanisms. The underlying assumption is that City General fund contributions
would not be required under any condition.
Mr. Finegan stated that the preliminary project schedule includes
completion of development program and project conceptual design and City/Agency
approval of the Business Term Sheet by the end of the third quarter of
2007. Prior to the third quarter of
2008, the project EIR would be certified, the Disposition and Development
Agreement (DDA) would be approved, and the Agency would have approved
entitlements. By the second quarter of
2009, the project bidding process would be completed, and building permits and
pre-sale of the for-sale units would begin.
Construction would begin by the 2nd quarter of 2009 and end
by the second quarter of 2011.
They would like the City/Agency’s commitment to move forward, including
the willingness to fill the financial gap, appointment of a City Council/Agency
Committee to develop a conceptual agreement on the Business Term Sheet;
authorize the conceptual design process; commence the DDA negotiations, and
initiate THE EIR process at the earliest possible stage after the project
application is filed, which is currently being prepared. The aggressive time limit would be feasible
with the City’s/Agency’s assistance.
Agency member De La Rosa stated that the City/Agency needs to work with
the developers and remove barriers.
Chairperson Donohue stated that this is the transformational event and
catalyst to rearrange the community’s image.
Organizer of Unite Here! stated that they want to ensure the job creation
provides good jobs for residents. He
requested the City to adopt a labor peace agreement.
Daniel Dodge, Monterey Bay Central Labor Council Political Director,
spoke in support of a labor peace agreement.
Mr. Mora noted that the February 6 agenda includes a recommendation to
extend the agreement for the Exclusive Right to Negotiate, which will
incorporate many of the immediate follow up items raised in the
presentation. The City is not prepared
to enter into a DDA so it is premature to negotiate a labor peace agreement.
Agency member Sanchez returned to the dais.
Upon motion by Agency member De La Rosa and second by Agency member
Barrera, the Council voted to approve the Consent Resolution.
1.
Approved minutes of
January 16, 2007 meeting.
ADJOURNMENT
The
meeting adjourned at 5:15 p.m..
APPROVED:
___________________________________
Chairperson
ATTEST:
________________________________
Secretary
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