DRAFT MINUTES*

 REDEVELOPMENT AGENCY

 December 21, 2004

 7:30 p.m.

The Redevelopment Agency of the City of Sunnyvale met in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 7:30 pm., with Agency Chair Chu presiding.

ROLL CALL

CONSENT CALENDAR

Agency Member Miller moved, and Agency Member Howe seconded, approval of the Consent Calendar. The motion carried with Agency Member Hamilton abstaining due to her absence at that meeting, and Agency Member Lee absent.

CITIZENS TO BE HEARD

There were no comments.

PUBLIC HEARINGS/GENERAL BUSINESS

Robert Paternoster, Agency Secretary, assisted by Lee Rosenthal of Goldfarb and Lipman, presented the staff report.

Staff responded to questions posed by the Agency regarding the parking garage ownership, City events in the Redwood Plaza, construction permit timing, concern over the time the Agency has to review the document regarding corrections to the report, Inland Real Estate Group, the development entity, the flow of tax increment to the developer, and Redevelopment Agency assets.

Agency Chair Chu opened the Public Hearing at 8:15 p.m.

Jane Vaughan, of Menlo Equities representing Fourth Quarter Properties (Forum/Lehman)/Applicant, stated most of the issues with Macy’s and Target have been addressed, but their resolution has caused delays in the project schedule.  She stated they are requesting timing flexibility for the project, release of tax increment funds upon issuance of certificate of occupancy for 50 percent of the residential units, ability to privately finance the parking structures, rather than utilize Mello Roos bonds, and the other less substantive revisions to the Disposition and Development and Owner Participation Agreement (DDOPA).

Ms. Vaugan and staff responded to questions from the Agency regarding the 15 days for City use of the plaza and the required approvals, permitting requirements for private use of the sidewalks on Murphy Avenue and for outdoor uses on the private sidewalks in the mall, basis for original dates in the agreement, penalties for the developer if timelines are not met, time to complete the residential portion of the development, financing for additional parking which may be needed elsewhere in the development project area, the Redevelopment Agency’s ability to borrow if they do not own the parking garage, the role of the Planning Commission and the City Council in review and approval of the architectural design, the construction schedule, timing of the TIF trigger, change of equity partners, certificate of participation, the Mello-Roos bonds, protecting the City’s interest, phasing of residential construction on top of parking garages and retail uses, completion and opening dates, and the ongoing working relationship with the developer and Macy’s and Target.

Harriet Rowe, a member of the public, requested clarification on the parking garage property, the Mello-Roos bonds, and future revisions.

Thom Mayer, a member of the public, suggested pro-rating the TIF based on percentage completion of the housing units and expressed concern about the relationship with Macy’s and Target and their ability to  veto City use of the plaza.

Jane Vaughan, of Menlo Equities representing Fourth Quarter Properties (Forum/Lehman)/Applicant, advocated for approval of the agreement with the revisions requested so that the project can move forward.

Agency Chair Chu closed the Public Hearing at 9:42 p.m.

Agency Member Hamilton moved, and Vice Chair Swegles seconded, to approve staff’s recommendation of Alternative 2, approve the resolution revising the DDOPA as proposed by staff and indicated in the blue-line revisions, and authorize the Executive Director to execute and implement it, and direct staff to not consider further investigation of the parking garage ownership by the developer.

Agency Member Howe offered a friendly amendment to leave the original provision in the agreement regarding the 60-day notice for City use of the Redwood Plaza up to 15 days per year, except that if Macy’s and/or Target object, that the Council hold a public hearing to consider the objections of Macy’s/Target.  The amendment was accepted.

Agency Member Fowler offered a friendly amendment to allow the transfer of TIF funds upon completion of 100 percent of the shell of residential units and 50 percent certificate of occupancy. The amendment was not accepted.

The motion carried unanimously with Agency Member Lee absent.

RESOLUTION NO. 103-04 RDA A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SUNNYVALE APPROVING MINOR REVISIONS TO THE DISPOSITION AND DEVELOPMENT AND OWNER PARTICIPATION AGREEMENT BETWEEN THE AGENCY AND FOURTH QUARTER PROPERTIES XLVIII IN CONNECTION WITH TOWN CENTER MALL, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO TAKE ACTIONS NECESSARY TO EXECUTE AND IMPLEMENT THE AUTHORIZED AGREEMENT

ADJOURNMENT TO THE CITY COUNCIL

Agency Chair Chu adjourned the meeting at 10:00 p.m. and declared a ten minute recess before convening to the regular Council meeting.

Susan Ramos, Agency Clerk