CRA 95-09-11MINUTES OF A REGULAR MEETING OF THE
CYPRESS REDEVELOPMENT AGENCY
HELD
September 11, 1995
Agency Chairman Age called the meeting of the Cypress Redevelopment Agencv to
order at 12:50 a.m., Tuesday, September 12, 1995, in the Council Chamber, 5275 Orange
Avenue, Cypress.
MINUTES: It was moved bv Agencv Member Kerry and seconded Agency Member Carroll
to approve the Minutes of August 28, 1995. The motion carried bv the following roll call
vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
4 AGENCY MEMBERS: Bowman, Carroll, Kerry and Age
0 AGENCY MEMBERS: None
0 AGENCY MEMBERS: None
I AGENCY MEMBERS: Jones
Agency Member Jones abstained from the vote due to her absence at the August 28,
1995 meeting.
CONSIDERATION OF CLARIFICATION REGARDING THE DEVELOPMENT OF HOTELS WITHIN THE
CYPRESS BUSINESS AND PROFESSIONAL CENTER SPECIFIC PLAN AREA: The Executive Director
asked the Deputy Executive Director to present the staff report dated September 5,
1995 describing the three alternatives which could be used to test the interest and
feasibility of a hotel on the property surrounding the Race Track and Golf Course. These
alternatives included the Request for Proposal, a focused marketing study and/or
sending out interest letters to hotel owners and developers. Agency Member Kerry
asked which alternative was the most effective and the costs involved. The Executive
Director reported that the City has had some success with market studies on Lincoln
Avenue wherein letters were sent, responses received and the City is now moving
forward.
The Community Development Director said that a few years ago, studies indicated that
the entire Business Park could support two additional hotel uses, one a higher class and
a moderately priced establishment. At this point, the potential is unknown; however,
the vacancy factors of the two hotels in the Business Park are low. Mayor Age
commented that a previous Council had in mind a very nice large hotel, including large
banquet facilities. Agency Member Kerry expressed an inclination to pursue a marketing
study.
The Executive Director reported that an interest has been expressed in another type of
hotel use and it would be important to include an analysis of its impact in the study.
Agency Member Bowman suggested that a letter be sent to those hotels that the City is
attempting to attract and, at the same time, conduct a market study and notify the
property owner what is occurring.
It was moved by Agency Member Bowman and seconded by Agency Member Carroll to
proceed with the market analysis, send out interest letters to hotel owners and
developers, and notify the property owner asking for their input within 15 days. The
motion unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
5 AGENCY MEMBERS: Bowman, Carroll, Jones, Kerry and Age
0 AGENCY MEMBERS: None
0 AGENCY MEMBERS: None
CONSIDERATION OF OBTAINING SERVICES OF A PROFESSIONAL FACILITATOR FOR THE WICKER
DRIVE LAND USE ADVISORY COMMITTEE: The staff report dated September 5, 1995
described Mr. Dave Wilcox' proposal for the facilitation of a 34 person advisory
committee beginning in mid-September. A status report will be presented at the first
City Council/Agency meeting of December 1995, and the final report and
recommendations at the first City Council/Agency meeting in April 1996. The main
committee will be divided into six subcommittees which will each be responsible for the
study of a certain issue. The issues are: public needs, general plan, zoning, land use,
fiscal impacts and interim uses.
It was moved bv Agencv Member Jones and seconded bV Agency Member Kerry to take
the following actions:
Direct staff to enter into a contract with Mr. Dave Wilcox for the facilitation of
the Wicker Drive Land Use Advisory Committee in an amount not to exceed
$10,000; and
Appropriate $10,000 from the fund balance of the Redevelopment Agency's Civic
Center Project Area Fund to ACCOUnt NO. 4189-35-194-06.
The motion unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
5 AGENCY MEMBERS:
0 AGENCY MEMBERS:
0 AGENCY MEMBERS:
Bowman, Carroll, Jones, Kerry and Age
None
None
CONSIDERATION OF PROMISSORY NOTES BETWEEN THE CYPRESS REDEVELOPMENT AGENCY AND
THE CITY OF CYPRESS AND THE CYPRESS LIGHTING DISTRICT NO. 2: The Executive Director
requested that the Finance Director present the staff report dated August 29, 1995,
which indicated that an agreement has been negotiated between the Cypress
Redevelopment Agency and Cypress Homes, Inc. to pay off the Agency's Liability under
the Owners Participation Agreement (OPA). The note was issued to construct on-site
improvements in the project area. The recommendation is that the Redevelopment
Agency authorize staff to execute a Repayment Agreement in the total amount of
$3,600,000 between the City of Cypress and the cypress Lighting District NO. 2 and the
Agency to allow for the early retirement of the OPA at a savings to the Agency of
$344,979 and to issue two promissory notes to finance the payoff. These notes would
be repaid by tax increment from the Agency. It is projected that a tax increment bond
could be issued in four to five years, based on revenue flows, which could repay the City
or the notes could be repaid earlier if the Wicker Drive Properties are sold.
Agency Member Jones said she felt that there were too many uncertainties and
assumptions in the proposed Repayment Agreement. She was concerned about taking
the money out of the Lighting District when there might be other uses for it.
Agency Member Carroll commented that paying off the note now instead of waiting for
over nine years for repayment means about $500,000 to $1 million to cypress Homes.
He would consider a quick pay out if it meant additional benefits to the City.
Agency Member Bowman asked if the agreement could be negotiated and would a
counter offer be considered. He would not want to offer Cypress Homes this amount
for a discount.
It was moved by Agency Member Jones and seconded by Agency Member Bowman to
deny the recommendation to execute the Repayment Agreement and the two
Promissory Notes. The motion unanimously 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
ADJOURNMENT:
Agency Chairman Age adjourned the meeting at 1:00 a.m.
REDEVELOPMENT AGENCY
ATTEST:
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SECRETARY OF ~JE CYPRE~8~R'EDEVELOPMENT
AGENCY