[0:01] My only objective, why is this to that one thing? I'll think of it here in a second. Okay, Michael? The financing covered my questions. All right. Liam. Oh, I got it. Liam.

[0:20] Few questions, start with stuff. So following up on Commissioner Kay's question. So I'm just doing basic math here. You know, we were saying if we were to do it ourselves as five million, we'd have to contribute two million, then you could kind of do the math.

[0:34] to say, well, the net value of what you're giving versus what you're getting is about

[0:38] $3 million.

[0:39] Is there any, because this is public facility, or maybe you can add, is there any requirement

[0:44] for the public to understand that there's a fair and equitable exchange, and have we calculated

[0:49] that this is a fair and equitable exchange?

[0:52] I assume that's done, but I'm just asking the question, because I would have meant a

[1:05] minute

[1:05] minutes clerk to call the roll.

[1:08] Councillor Sainte.

[1:10] Board members take.

[1:12] Here.

[1:13] Rose.

[1:14] Cobble.

[1:15] Here.

[1:16] Thomas.

[1:17] Lamb.

[1:18] Rivera.

[1:19] Here.

[1:20] Tetris.

[1:20] Here.

[1:22] Thank you and would you declare the posting of the agenda?

[1:25] Today's meeting agenda was duely noticed and posted in accordance with government code section

[1:30] 54954.2.

[1:32] Thank you and would you all please rise and join me in the pledge.

[1:50] Thank

[1:56] you, we have an opportunity on each of our agendas for public comment on items not on the agenda.

[2:04] I don't see anybody running up so I will close the public comment and we'll move to our consent calendar.

[2:12] here, which is approval of our September minutes, but

[2:19] I have a motion on the consent calendar.

[2:22] Move approval.

[2:24] Second.

[2:25] Second.

[2:25] Second to approve the consent, which are those minutes?

[2:28] All in favor say aye.

[2:30] Aye.

[2:31] Opposed?

[2:32] That motion carries unanimously.

[2:34] And.

[2:35] I abstain, because I abstain.

[2:36] Okay, one abstention from Ms. Cobble.

[2:41] Item number two on our agenda is the administrative budget for

[2:47] Prop 17 and 18.

[2:50] So, do we have a Mr. DeWin?

[2:55] Good afternoon, Dr. Nguyen, finance director.

[3:00] What you have here is the recognized application payment schedule for the fiscal year 17-18.

[3:05] The total payments for the 1718 is approximately $9 million.

[3:11] About $7 million is for the debt service payment for the former RDA bonds.

[3:17] With $1.7 million is for the repayment of C-Refleon.

[3:21] Approximately $65,000 is related to the disposition of the VTS site, including the 40 legal services, and the closing and the price of cost.

[3:32] additional $73,000 is for the reimbursement for the items that was on the

[3:37] previous robes approved by the website board but the actual expansions actually

[3:42] came in more than it was protected and the remaining is $131,000 for the

[3:50] administrative budget for the period and the proposed budget you have the

[3:55] proposed M in budget you have is the the representative minimum cost and the

[3:59] start time needed to continue with the dissolution, including the debt and investment activity

[4:05] and management and the obviously in monitoring of the CREF loan and of course the disposition

[4:11] of the VTS site which is less than you can justify that is taking longer and more complex than

[4:17] expected and the management of the former RDA and non-housing loans before you and the budget

[4:23] The Amin budgets present the 31 deduction from the price drops period.

[4:30] Before I conclude my report, I also want to express our sincere appreciation and

[4:35] thank you to the county and this staff for their assistance and for

[4:38] working collaboratively with us, that's it.

[4:41] And I would have a technical question that you may have.

[4:44] Who has questions?

[4:49] Well, I have a question.

[4:51] As the properties are coming off, I think you have one property left, the VTA property,

[4:56] which is a complicated property. That's clear. The properties are kind of...

[5:00] Come off in the next year. I would think that this administrative budget is going to get really low. I mean, incredibly low. And right now you've given us some numbers that are, you know, without really itemizing. And I don't have any serious objection to that. But I think in the future is these properties come off and there's really not much that I would expect or my successor would expect to see these numbers pretty close to zero or maybe around 10,000.

[5:29] And if they're not going to be, then I would think you'd want to bring forward

[5:35] substantiation to sort of demonstrate exactly why they're not really low.

[5:39] So while this is okay for now, I'm just looking ahead thinking unless these things are going

[5:44] to get really drastically reduced, then I would want to see the City of Morgan Hill and the

[5:50] successor agency come forward with a better itemization.

[5:54] That is for our plan, actually.

[5:56] We initially budgeted for next year, actually lower than we proposed right now, but at that time,

[6:01] when we prepared budget for 1718, we initially thought that we would be complete by the disposition

[6:07] of VTSI and this would be our last and final wraps, but after consulting the accounting account,

[6:13] he said, no, this is not the time, yes.

[6:15] So eventually, we hope that one point when the property is exposed and we have the last final wraps,

[6:20] You will see minimal or nothing to do the industry budget.

[6:24] Thank you.

[6:25] Thank you.

[6:27] So you're not objecting to this one.

[6:29] I'm not objecting.

[6:30] Yeah, looking forward.

[6:31] Okay.

[6:32] Anything else?

[6:36] Well, then we need a couple of motions.

[6:38] We have two different resolutions.

[6:39] One for the administrative budget and one for the robes.

[6:44] I think we can do.

[6:45] We have approval of both.

[6:47] I think we can do them together.

[6:48] We have a motion and a second.

[6:50] Is there any other discussion?

[6:52] All in favor say aye.

[6:54] Hi. Hi. Hi.

[6:55] Opposed?

[6:56] That motion carries.

[6:58] We're going to get a verbal report on the asset disposal.

[7:03] Good afternoon. My name is Leslie Little.

[7:08] The map that we have for this report should be familiar with most of you or to most of

[7:15] you.

[7:15] The numbers on this map correspond to the asset numbers in the long range property management

[7:20] plan.

[7:21] And so I'll just quickly let you know where we are on them.

[7:25] You are probably most interested in the one spot that is not listed on this particular map that is indicated by the little blue symbol, which is the CalTrain Station.

[7:37] The parking lot in this exhibit is the VTA lot.

[7:41] The successor agency has a 41% interest in that lot and we've started to appraise that property and are in conversation with account.

[7:51] only about how to move forward with potential disposition on that property.

[7:58] Site one was the Deepo Mall and the Grenada Theater.

[8:04] The Grenada Theater opened in December and was also awarded the significant Rehabilitation

[8:11] award from the business journal in December, which we were thrilled to see.

[8:18] So it was a wonderful way to appreciate a historic asset.

[8:22] It's certainly one that's memorable in this community.

[8:25] And it started to return some terrific opportunities

[8:29] for entertainment in our community.

[8:31] How's business doing there?

[8:33] They're very pleased with it.

[8:35] Very well.

[8:36] So the facility itself, the old theater, was a movie theater.

[8:41] And it's now being used for a number of ticket advance

[8:47] such as comedy and less Sunday or Saturday there was an opera singer and they've had a number

[8:53] of other variety shows and things like that but they also use it for special events, weddings

[8:57] and for business meetings.

[9:01] There's a little carve out behind one you might see a little white outline.

[9:06] This was the duplex property that was part of this site that this accessory agency, the oversight

[9:13] site board, a grade would be sold independent of the site, it had originally been acquired

[9:18] by the redevelopment agency as one large development site and because it was a residential

[9:23] unit, the oversight board felt it had more value or it's highest and best value was as

[9:30] it's existing use, a residential duplex and so it was sold and that occurred last year

[9:35] as well. Site number two is a project that was purchased for reconstruction. The building

[9:43] Things are to be retained, and it includes what used to be the public parking lot behind it.

[9:49] It is, they've completed rehab plans, but they're slowly moving forward on their existing rehabilitation, and they've now

[10:00] Located or moved their tenants. Excuse me, I want to go back to site one. What I forgot about is that majority of this site, about an acre, was formerly the downtown mall and that property was sold to the Albanyards to create a boutique hotel with a market hall at the base. That project currently is in plan check with its construction plans. And so they expect to start construction within the next three or four months.

[10:28] Site

[10:33] 3 is the city ventures property.

[10:36] This was an option that was a result.

[10:39] City ventures was building a mixed use project on the site.

[10:42] They did demolition, were surprised to find a 56,000 gallon tank underneath the site that

[10:51] used to hold food waste from the processing facility and took a little longer to get moving

[10:58] as a result.

[10:59] When they started construction, they hit the reins and with the clay properties of the soil their construction has halted for a period of time, they hope to get going in the next four to six weeks again.

[11:11] Their construction permits are in their hands.

[11:15] Site number four is the former liquor store property and it sits next to the city's newly constructed parking garage.

[11:25] If you drive by the site, you'll see that the four restaurant complex is under construction and they hope to be open late this summer.

[11:36] They are fully leased and so we're pretty excited about having them come on board.

[11:42] The last property is not on this map and it was a little residual parcel of 11,000 square feet to the north of the city way up on Monterey Road.

[11:51] And we were successful selling that piece of property just last October.

[11:57] And that really leaves, as you stated earlier, the VTA parcel and

[12:03] the activities that we will have as we go on in the future when we have loans and

[12:07] things that are retired in the future.

[12:12] That completes my report.

[12:14] Any questions?

[12:17] Okay, thank you very much.

[12:21] we are at future agenda items. Has anybody had many future agenda items?

[12:29] Well, we didn't make it in 10 minutes, but we made it in 11 minutes.

[12:33] Okay, it's adjourned.

[12:35] Thank you.

[12:36] You're slipping.

[12:38] Thank

[12:43] you, George. Congratulations.

[12:45] Thank you.

[12:45] Congratulations.

Oversight Board on 2017-01-25 2:00 PM - Jan 25th, 2017

Transcript