HomeMy WebLinkAboutStaff Report 11/16/2000 (9) DRAFT DRAFT DRAFT
Cityof Petaluma,California
Commission Meeting
`'�� Petaluma CD aft Minutes of a Regular'Meeting
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4 Monday, June 5, 2000
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7 The Petaluma Community Development Commission met on this day at 3:05 P.M. in the
s Council Chambers.
9 •
io ROLL CALL
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12 Present: Commissioners Cader-Thompson (3:10 p.m.), Healy, Keller, Maguire, Chair
13 Thompson, Vice-Chair Torliatt
14_.
Absent: Hamilton
17 PUBLIC COMMENT
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19 None
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21 COMMISSION COMMENTS' •
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23 None
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25 AGENDACHANGES ADDITIONS, AND DELETIONS.
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27 None
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29 UNFINISHED BUSINESS
30,
31 1. Discussion and Possible Diredtion Regarding LOK Marina Hotel Development
32 Group:and Redevelopment Agency Participation for Project Financing for a Three
33.. Star/Four Diamond Rated:Hotel. (Stouder)
34
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35 A. Resolution of the Community Development Commission of the City of Petaluma •
36 Approving an Owner Participation "Agreement By,•and Between the Community ,
Development Commission of the City of Petaluma and Lok Petaluma Marina
Hotel Company, LLC.
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Draft Minutes of a.Petalunia Community Development Commission Meeting-Monday,June 5,2000
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2 Commissioner Keller wanted shorter loan equity position and clarification of
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3 "sale" and "partner,"and her wanted to know who-the otherinvestors were.
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5 • Vice ChairTorliattnoted that Mr: Hawkins had presented the,Commission<with a
6 proposal made by,tlie developer.
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8 Mr. Hawkins disagreed and noted 'that 'he had been asked to prepare an
9 ownership agreement that reflected the current terms. He did not think the
10 meeting was the appropriate arena to,discuss terms.
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12 Attorney.Don;Black echoed Mr. Hawkins' comments.
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14 Commissioner Keller had heard that labor negotiations had fallen through. If that
Is was true, he had no intention of supporting the project.
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17 Commissioner Maguire preferred that the City Manager represent the
18 Commission in negotiation discussions. He ha&told Andy Lee and Kurt Lok that
19 he supported card neutrality; however, more importantly, he wanted to hire
20 locally...
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22 Vice Chair Torliatt 'stated further that. the Commission had not had the
23 opportunity to have a discussion with the consultant and she wanted to have
24 public comment before the Commission discussed what action or direction to • •;
25 take.
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27 Public Comment
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29 Daniel Angel, 4024 Magee Avenue, Oakland,spoke in opposition°to,the'project if
30 union'labor agreement negotiations were dropped.
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32 Al Semmler, 1700 Corby Avenue, Santa Rosa, spoke in opposition to the project
33 if union labor agreement negotiations;were dropped.
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35 Don Weisenfluh, 1092 Wren Drive, spoke in opposition to the project.
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37 Vince Landof, 12 Cordelia Drive, spoke in opposition'to:the,project.
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39 Victor Chechanover,`2301 Marylyn, spoke in opposition to.the°project.
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41 Geoff:Cartwright, 56 Rocca Drive, spoke in opposition to any development in the
42 floodplain
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44 Andy Lee, 'Restaurant and Hotel Workers 'Union Representative, spoke in
45 support of the City'`s participation in the' p'roject in order for the hotel and
46 restaurant workers to be employed.
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Draft'Minutes.of a Petaluma Community Development Commission Meeting—.Monday;June 5,2000
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End of Public Comment
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5 Commissioner Cader-Thompson did not think the City was adequately protected
6 by the proposed agreement.. She agreed with Other Commissioners' comments
7 and questions and noted that she wasrdisappointed about the status of the union
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labor negotiations. She asked that the principals provide information for
9 •Commission's review in a timelier manner.
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u Commissioner Healy wanted to :address how, procedurally, the Commission
12 would continue discussion. 'Substantively, he was not as concerned as other
13 Commissioners about the terms and he elaborated on Mr. Hawkins' analysis as
14 stated on pages.4 arid 5 of the report dated May 31, 2000. He was pleased with
is City Management's decision to .hire Tim Kelly to analyze the proposal and he
16 supported the City's participation in the project.
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is Commissioner Keller Mr. Lok what type of'development would go in at the
19 property if the.City did not participate and what kind of a market:there would be.
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21 Kurt•Lok replied it-Was to be a development similar to a Marriott Courtyard.
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Vice Chair Torliatt noted that this was not a slight to Mr. Lok or his family and
i acknowledged his continuing efforts in the community. Her thoughts on the
25 project were not personal, they were strictly professional. She understood that a
26 project may begin in the:downtown area in the fall and could jeopardize the City's
27 security. She thought the Commission needed to focus on the TOT revenue
28 stream, and wanted to know if the City had budgeted the $750,000 in the
29 Redevelopment Budget; she understood that the City was floating revenue
30 bonds of the rate of 6%. interest. She noted she had a discussion with other
31 cities' council members regarding :supporting' hotel development. They had
32 • indicated:that it was not good; that is, that it was a very•complex issue.
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34 ADJOURN
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36 Chair'Thompson adjourned the meeting-at 4:20 P.M.
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38 . ... . ..
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40 'RECONVENE
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42 The Petaluma Community Development'Commission reconvened on this date at 7:05 P.M.
43 in the Council Chambers.
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45
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Draft Minutes of a Petaluma Community Development:Commission:Meeting-Monday, June 5,2000
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2 ROLL CALL
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4 Present: Commissioners Coder-:Thompson (3:10 p.m.), Healy, Keller, Maguire, Chair
5 Thompson, Vice-ChairTorliatt
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7 Absent: Hamilton
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11 PUBLIC COMMENT
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13 None
14
15 COMMISSION COMMENTS
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17 None
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19 AGENDA CHANGES', ADDITIONS, AND DELETIONS
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21 None
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23 UNFINISHED BUSINESS •
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25 2. Discussion and Possible Direction Regarding LOK Marina Hotel Development
26 Group and Redevelopment Agency Participation for Project Financing for a Three
27 Star/Four Diamond Rated Hotel. (Stouder) (Continued from the Afternoon
28 Session)
29
30 B. Resolution of-the Community 'Development Commission, of the City of Petaluma
31 Approving an Owner Participation,Agreement By and Between the Community
32 Development Commission of the "City of Petaluma and Lok Petaluma Marina
33 Hotel Company,LLC.
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35 J. T. Wick, President, Petaluma Area Chamber of Commerce, spoke in support
36 of the Lok Marina Hotel and development of a conference center:
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38 Vince Landof, 1.2 Cordeli • Drive, spoke inopposition to`the,City financing the
39 Lok Marina Hotel and development of a conference center.
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41 Victor Chechanover, 2301, Marylyn Circle,spoke in opposition to the City
42 financing the Lok Marina Hotel and development of a conference'.center and
43 provided information about the sale to"the prior owner of the parcels included
44 with this development project.
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Draft Minutes of.a Petaluma Community.Development Commission Meeting-Monday;June 5,2000
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End of Public'Comment
3 Commission Chair Thompson wanted interest on the loan and an improved
4 position as a lender. •
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6 Commissioner Maguire wanted principal and interest repaid, a secured loan
7 amortized over twenty year& due in ten, and in second position to the
s construction loan. He also' asked that. the 'attorneys review the proposal
9 structure and verify that the 'City's position was secure and that an agreement
10 with the union for card neutrality be included.
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13 Commissioner Cader-Thompson acknowledged the necessity of a conference
14 center and indicated that she Wanted interest on the loan; she^wanted a stronger
1s position, so if sold, the investors and the Citywould be repaid at the same time.
16 She agreed with Commissioner Maguire's statements regarding union card ;
17 neutrality. Shethought it was important that the, Commission have more than a
18 4/3 vote. She thought the $750,000 was legitimate, however, she questioned
19 the TOT.
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21 Commissioner Keller noted that the City had .already subsidized the property for
22 development, though not with Lok; but a 99-year repayment agreement with
Marina Office Park Associates (MOPA) to make ready for a Sheraton Hotel'in
• 1992. He thought there'existed a question.of precedence. He agreed with Mr.
25 Wick that this was a good location. He was concerned about financing
26 assistance that had a lesser prime equity position to assure ,repayment to the
27 City. He wanted ;a definition of "sale,"'such as.a sale. between partners. This
28 was not a slight to Mr. Lok; but he wanted to know who the partners were who
29 were the. equity partners in the venture. He suggested that perhaps they
30 investigate the possibility of securing '.repayment.' by a tax lien and provide for
31 repayment at below market rate interest. He thought union card neutrality was , i
32 necessary. He asked if the cost of the parking lot for which the redevelopment .
33 funds were to pay was $450,000,.whywas $750,000 needed. He did not want to i
34 see a repeat performance of past City practices where the paper work was
35 sloppy. Perhaps the $2.75 million could be financed by subscriptions from
36 community'businesses and individuals.
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38 Vice Chair •orliatt added to ,Commissioner Keller's comments that should the
39 City subsidize the project, she favored a bond .being floated for the interest. She
40 was not in favor'of the proposal on the table but did think the marina was a fine
41 place to have the hotel. With the Petaluma Specific Plan, construction in the
42 downtown 'area would present competition and, she had concerns with the TOT
43 revenue stream that.a downtown proposal could pose. The City should not have .
44 to subsidize a project to get ,a conference room. The TOT funds could go,to
develop a City-owned'. facility. Regarding'personal guarantees, she noted that
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DrafF,Minutes of a-Petaluma.Community Developmerit Commission Meeting Monday,June,2000
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the developer had not agreed to do this in its entirety. Sher thought financing by
2 the City should minimally be secured as a second in equity position. •
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4 Commissioner Maguire added that he favored a "sale that would trigger
s payment;of`the loan.
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7 Commissioner Cader-Thompson was not clear why the facility could not be
s scaled down: Regarding the TOT funds, she thought they should go, towards
9 developing the area from which they were generated.
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n The Commission agreed that Mr. Stouder would present the developers and
12 their attorneys with Commission comments and direction.. They scheduled a
13 'meeting,for Wednesday, June 14, at 5:30 P.M. to bring back the item back•-for a
14 .status report, continued discussion, and possible action.
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16 ADJOURN
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Is Chair Thompson adjourned the meeting at 7;40 P,•M.
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21 E. Clark Thompson, Chair
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23 ATTEST:
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27 Beverly J. Kline, Recording Secretary
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Draft:Minutes of a Petaluma,Community Development Commission Meeting-Monday,June'i5,!2000