CRA 95-10-10MINUTES OF A REGULAR MEETING OF THE
CYPRESS REDEVELOPMENT AGENCY
HELD
October 10, 1995
Agency Chairman Age called the meeting of the Cypress Redevelopment Agency to
order at 12:00 midnight, Tuesday, October 10, 1995, In the Council Chamber, 5275 Orange
Avenue, Cypress.
PRESENT:
ABSENT:
Agency Members Bowman, Carroll, Jones, Kerry and Age
None
MINUTES: It was moved by Agency Member Bowman and seconded by Agency Member
Kerry to approve the Minutes of September 25, 1995. The motion carried by the
following roll call vote:
AYES: 5 AGENCY MEMBERS:
NOES: 0 AGENCY MEMBERS:
ABSENT: 0 AGENCY MEMBERS:
Bowman, Carroll, Jones, Kerry and Age
None
None
RECONSIDERATION OF REDEVELOPMENT LOAN (CYPRESS HOMES): The Executive Director
called upon the Finance Director to present the staff report dated October 6, 1995, to
which was attached a letter from Cypress Homes outlining a proposal on the retirement
of the Owners Participation Agreement Note. The Items were discussed at the
Redevelopment Agency Board's workshop on October 2, 1995 and If the Agency Board
accepts the proposal, staff recommended the financing be authorized through two
promissory notes. The Agency had a concern on the paying off of the note when it
comes due based on current tax Increment. The economic benefit to the
Redevelopment Agency is to pay off the note. The proposal would save the Agencv
approximately $7 million over the next 30 years.
Mr. Mike Stewart, representing Cypress Homes, responded to questions from Council.
Councilmember Jones felt that the Council was being asked to make a recommendation
without all the Information. She would be glad to meet within the next week to spend
some time going through the numbers again to resolve this.
After additional discussion, Councilmember Carroll remarked that the offer before the
Agency was to discount $500,000 on a $3.9 million note. It seemed to be beneficial for
the City of Cypress to take the discount and close the note out October 31, 1995.
Councilmember Bowman referred to the letter from Cypress Homes dated October 6,
1995 indicating they would discount the note $582,000 with the exclusive right to
negotiate on the Wicker Drive properties. The letter received today Indicated they
would discount it $500,000 and forget the exclusive right to negotiate on the Wicker
Drive properties.
Mr. Stewart felt that there was an advantage to Cypress Homes because it is timely.
response is that they have had a long-standing relationship with the City. He would
reluctantly agree to $582,000 discount, but his preference would be to split the
difference with the City In some fashion.
His
It was moved by Agency Member Bowman and seconded by Agency Member Carroll to
authorize Staff to execute the Repayment Agreement and two Promissory Notes In the
amount of $3,400,000 with the City of cypress and the cypress Lighting District NO. 2,
with the repayment by the Agencv to be made from future tax Increments or other
sources from the Civic Center Project area discounting the total note liability $582,000.
The motion unanimously carried by the following roll c.~11 vote:
AYES: 5 COUNCILMEMBERS:
NOES: 0 COUNCILMEMBERS:
ABSENT: 0 COUNCILMEMBERS:
Bowman, Carroll, Jones, Kerry and Age
None
None
Agency Member Carroll complimented the City Manager and Financial staff for bringing
the negotiations to the Board's attention.
ADJOURNMENT: Agency Chairman Age adjourned the meeting at 12:15 a.m.
ATTEST:
CHAIRMAN OF THE CYPRESS
REDEVELOPMENT AGENCY
SECRETARY OF THE CYPRESS REDEVELOPMENT AGENCY