CRA 2008-11-10 MINUTES OF A REGULAR MEETING OF THE
CYPRESS REDEVELOPMENT AGENCY
HELD
November 10, 2008
Agency Chair Seymore called the meeting to order at 7:00 p.m. in the Executive Board
Room, 5275 Orange Avenue, Cypress, California.
Members present:
Mayor/Agency Chair Todd Seymore
Council/Agency Board Member Doug Bailey
Council/Agency Board Member Phil Luebben
Council/Agency Board Member Prakash Narain
Members absent:
Mayor Pro Tem/Agency Vice Chair Leroy Mills
Staff present:
City Manager John Bahorski
City Attorney William Wynder
Assistant City Manager/Director of Finance and Administrative Services Richard Storey
Director of Community Development Ted Commerdinger
Public Works Director Doug Dancs
Recreation and Community Services Director June Liu
Police Captain Mike Idom
Assistant City Engineer Kamran Dadbeh
Redevelopment Project Manager Steve Clarke
Senior Civil Engineer Alvin Papa
Associate Engineer Dario Simoes
Administrative Services Manager Andrew Tse
Recreation Supervisor Jeff Draper
City Clerk Denise Basham
PUBLIC HEARINGS: 7:00 P.M. (PUBLIC COMMENTS RESTRICTED TO TEN
MINUTES PER SPEAKER, UNLESS EXTENDED BY THE CITY COUNCIL).
Item No. 2: PUBLIC HEARING REGARDING APPROVAL OF AN AGREEMENT TO
PURCHASE AFFORDABILITY COVENANTS AT 5201 LINCOLN AVENUE.
The Redevelopment Project Manager provided background information on this item.
Agency Chair Seymore stated that in 2004 he had an opportunity to review the site.
Agency Member Bailey asked about the City's current deficiency in inclusionary units.
The Redevelopment Project Manager stated that the current inclusionary deficit is 80
units, with 40 units reserved for households with low incomes and 40 units with
households with very low incomes.
Agency Member Bailey asked about the court validation process.
Allison Lemoine-Bui, Redevelopment Agency Counsel, responded that the purchasing
covenant is a unique provision in the redevelopment law in that it is not used very
frequently. The reason for seeking validation for this transaction is due to piggy-
backing on existing covenants. Redevelopment law requires covenants for a period of
55 years, and these units already have covenants for 30 years.
Council Member Bailey asked what the initial per unit cost was in 2004.
The Redevelopment Project Manager stated the current covenant agreements are
substantially less.
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Agency Vice Chair Mills asked for clarification of the process for the benefit of the
audience.
m nt Pro'ect Mana er stated that Redevelo ment law requires that a
The Redevelop e ~ g p
certain portion of the funds that the redevelopment Agency earns needs to be
expended for affordable housing purposes. Those funds cannot accumulate.
The City Attorney stated that housing set-aside money is being used to provide our
regional fair share of low and very low income housing.
The public hearing was opened.
Agency Chair Seymore asked if there was anyone who wished to speak in favor of the
item.
Agency Chair Seymore asked if there was anyone who wished to speak against the
item.
The public hearing was closed.
Agency Member Luebben stated that what is being paid for the affordable units is
significantly less than the $250,000 average cost.
It was moved by Agency Member Luebben and seconded by Agency Chair Seymore,
that the Cypress Redevelopment Agency Board: 1) Hold a public hearing to consider
approval of an agreement to purchase affordability covenants at 5201 Lincoln Avenue;
and 2) Adopt the Resolution by title only, approving the Loan Agreement and
Agreement to Acquire Covenants, and authorize the Executive Director to execute the
Agreement on behalf of the Agency.
The motion was unanimously carried by the following roll call vote:
AYES: 5 AGENCY MEMBERS: Bailey, Luebben, Narain, Mills and Seymore
NOES: 0 AGENCY MEMBERS: None
ABSENT: 0 AGENCY MEMBERS: None
RESOLUTION NO. CRA - 133
A RESOLUTION OF THE CYPRESS REDEVELOPMENT AGENCY,
APPROVING A LOAN AGREEMENT AND AGREEMENT TO ACQUIRE
COVENANTS BY AND AMONG THE AGENCY, AFFORDABLE HOUSING
ACCESS, INC., AND CYPRESS-TV, LLC, FOR THE AGENCY'S
ACQUISITION OF LONG-TERM AFFORDABILITY COVENANTS.
CONSENT CALENDAR:
It was moved by Agency Member Luebben and seconded by Agency Member Narain,
that the Redevelopment Agency approve Consent Calendar Items No. 14 and 15.
The motion was unanimously carried by the following roll call vote:
AYES: 5 AGENCY MEMBERS: Bailey, Luebben, Narain, Mills, and Seymore
NOES: 0 AGENCY MEMBERS: None
ABSENT: 0 AGENCY MEMBERS: None
Item No. 14: EXECUTION OF PROMISSORY NOTE BETWEEN THE CYPRESS
REDEVELOPMENT AGENCY AND THE CITY OF CYPRESS.
Recommendation: That the Cypress Redevelopment Agency Board authorize Agency
staff to execute the Repayment Agreement and Promissory Note (Exhibit "B") in the
amount of $20,000,000 with the City of Cypress to renew a maturing Promissory Note
that was used for the purchase of land, with the repayment by the Agency being made
from the proceeds resulting from reselling the land for development.
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Item No. 15: EXECUTION OF PROMISSORY NOTES BETWEEN THE CYPRESS
REDEVELOPMENT AGENCY AND THE CITY OF CYPRESS.
Recommendation: That the Cypress Redevelopment Agency Board authorize Agency
staff to execute the Repayment Agreement and two Promissory Notes (Exhibit "B") in
the amount of $10,600,000 with the City of Cypress, with the repayment to the City to
be made from future tax increments or other available project area revenue sources.
END OF CONSENT CALENDAR
ADJOURNMENT: Agency Chairperson Seymore adjourned the meeting at 8:06 p.m.
CHAIRPERSON OF HE CYPRESS
REDEVELOPMENT AGENCY
ATTEST:
SECRETARY OF THE CYPRESS
REDEVELOPMENT AGENCY
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