Agenda

Return

OVERSIGHT BOARD
TO THE CITY OF BREA
AS SUCCESSOR AGENCY
TO THE BREA REDEVELOPMENT AGENCY

MINUTES

March 31, 2017

SPECIAL MEETING
9:00 a.m. - Executive Conference Room
Level Three

Present:	Chair Bill Gallardo; Vice Chair Brad Mason; Don Parker; Kashu Vyas; Keri Bullock
Absent:	Kent Forde; Don Schweitzer
Staff Present:	Lee Squire; David Crabtree; Kathie DeRobbio; Cindy Russell; Karen O'Leary

CALL TO ORDER / ROLL CALL
Chair Gallardo called the meeting to order at 9:00 a.m.

Public Comment - None.

DISCUSSION / ACTION ITEMS

January 20, 2017 Special Meeting Minutes

Motion was made by Don Parker, seconded by Kashu Vyas to approve the January 20, 2017 Special Meeting minutes as presented.

AYES:	Chair Bill Gallardo, Vice Chair Brad Mason, Don Parker, Kashu Vyas, Keri Bullock
Passed

Consideration of Approval of Execution and Delivery of an Agreement to Terminate Disposition and Development Agreement as to Commercial Center Component (Gateway Center) and Related Payoff Agreement and Taking Certain Related Actions

Vice Chair Mason excused himself and left the meeting at 9:43 a.m.

Community Development Director Crabtree provided a history of the Gateway Center, outlined the property's current and expected future income streams, explained that the State would like the City to terminate this agreement and provide a lump-sum payment to be divided between the taxing entities, introduced Julie Romey of Keyser Marston, and provided a handout. Ms. Romey explained the details of the value of the property, provided the projection of future expenses and risks, and discussed how the proposal submitted by the property owners was evaluated.

In response to Boardmembers' questions, Ms. Romey and Community Development Director Crabtree clarified that the City approached the property owners at the urging of the California Department of Finance and noted that if no action is taken, the agreement will terminate in 2048.

Boardmember Parker expressed concern about whether the City has negotiated the best possible deal. Chair Gallardo suggested continuing the item to the April 14, 2017 Regular Oversight Board Meeting and directed staff to contact the property owners to gather more information to bring back to the Oversight Board.

Ms. Romey explained that the property owners based this amount on calculations on their gross rents and not on net spendable rents which included capital and tenant improvements.

Motion was made by Don Parker, seconded by Kashu Vyas to continue Item 3 to the April 14, 2017 Regular Oversight Board meeting.

AYES:	Chair Bill Gallardo, Don Parker, Kashu Vyas, Keri Bullock
Other:	Vice Chair Brad Mason (ABSENT)
Passed

Sale of Successor Agency Owned Property Located at 323 N. Brea Blvd
Economic Development Manager DeRobbio presented an update on the sale of the three (3) Successor Agency owned properties and reported that the recommended buyer of the third property at 323 N. Brea Blvd. would like to develop the property into a medical office.

Motion was made by Don Parker, seconded by Keri Bullock to adopt Resolution OB 2017-07 authorizing the sale of real property to the recommended buyer.

AYES:	Chair Bill Gallardo, Don Parker, Kashu Vyas, Keri Bullock
Other:	Vice Chair Brad Mason (ABSENT)
Passed

MEMBER REPORTS / ANNOUNCEMENTS
Regarding Item 3, Boardmember Vyas requested that staff assess the property owners' intentions and ensure that the decision is in the best interest of the community.

ADJOURNMENT
Chair Gallardo adjourned the meeting at 9:51 a.m.

Respectfully submitted,	The foregoing minutes are hereby approved this 14^th day of April, 2017

______________________________ Lillian Harris-Neal, City Clerk	______________________________ Bill Gallardo, Chair