MINUTES OF BOARD MEETING BOARD OF DIRECTORS CAPITOL AREA DEVELOPMENT AUTHORITY. May 19, 2017

Transcription

1 MINUTES OF BOARD MEETING BOARD OF DIRECTORS CAPITOL AREA DEVELOPMENT AUTHORITY May 19, 2017 ITEM 1 ROLL CALL Chair Bailey called the meeting of the CADA Board of Directors to order at 9:00 a.m. at th Street, Sacramento, CA Present: Absent: ITEM 2 APPROVAL OF MINUTES: APRIL 21, 2017 Member Lagomarsino moved approval of the minutes of April 21, 2017 meeting. Member Otto seconded the motion. ITEM 3 CHAIR S ORAL REPORT Chair Bailey reported that she received a proposal from Wendy Saunders regarding the Executive Director evaluation. Chair Bailey stated that she will form a subcommittee with Member Steve Maviglio to evaluate the proposal. Chair Bailey stated that the DGS Parking Garage was not going to go forward as of last month, however she received word that it will be included in the Draft Revised State Budget, and apologized for the surprise announcement. ITEM 4 EXECUTIVE DIRECTOR S ORAL REPORT Wendy Saunders reported the following: She learned that language to authorize CADA to construct a parking garage on the state-owned property on the north side of R Street between 8 th and 9 th Streets was included in the Draft Revised State Budget, which was released last Thursday. This took CADA staff by surprise. After thoughtful consideration, she has decided to testify in favor of the garage at the Budget hearings over the next two weeks. There are a number of key benefits to CADA by taking this on. 1. CADA will be in control of the design and can make sure that it is consistent with the industrial look and feel of R Street. 2. CADA can make certain the ground floor retail is planned for success. DGS acknowledges that managing retail is not their strong suit. 3. CADA can help assure that the facility serves the community in addition to State employees. 4. The unsightly state-owned warehouse on the site may never go away if this doesn t go forward. 5. A partnership success between CADA and DGS might help DGS recognize our usefulness to them, perhaps leading to more housing development opportunities.

2 Councilmember Steve Hansen has a list of recommendations as a part of this transaction, and staff will meet the Councilmember as well as Senator Richard Pan and Assemblymember Kevin McCarty. If this moves forward, staff will report to the Board in June with a number of approvals. Member Lagomarsino asked what the timeline is for the legislation to take effect. Wendy Saunders stated that it would be immediate, and further stated that there is a construction cap of $30 million in the legislation authoring CADA to construct the garage on behalf of the State. Member Smith asked why there is no housing proposed for the top of the parking garage. Chair Bailey stated that DGS wants only a parking garage because it s their property, and there is a long waiting list for parking for State employees. The City wants to accommodate DGS so they remain downtown. CADA s Legal Counsel stated that although the site is neither in the CADA nor the R Street area, it is in the Capitol Area Plan and it has always been planned to be just a parking garage. Chair Bailey moved to Agenda Item 6. ITEM 6 MARKET RATE APARTMENT RENT SCHEDULE/RENT INCREASE/LEASE METHODOLOGY Staff Recommendation: Staff recommends that the Board adopt a resolution approving the Fiscal Year not-to-exceed Market-Rate Apartment Rent Schedule, Lease Term Rent Premiums, and the Rent Increase/Lease Methodology. Staff Contact: Diana Rutley, Property Manager Member Otto moved approval of Resolution 17-14, attached hereto and incorporated herein. Member Smith Chair Bailey moved to Agenda Item 5. ITEM S STREET GROUNDWATER REMEDIATION AWARD OF CONTRACT (1717 S STREET) Staff Recommendation: Staff recommends the Board authorizing the Executive Director to enter into a construction contract in the amount of $440,000 with GHD Services Inc. to perform ground water remediation work at 1717 S Street. Staff Contact: Todd Leon, Development Director Member Lagomarsino reported that the Development and Construction Committee recommended approval. Member Lagomarsino moved approval of Resolution 17-13, attached hereto and incorporated herein. Member Otto Chair Bailey moved to Agenda Item 7.

3 ITEM 7 CAPITAL FINANCING AND DEBT MANAGEMENT POLICY Staff Recommendation: Staff recommends that the Board adopt a Capital Financing and Debt Management Policy. Staff Contact: Noelle Mussen, Controller No Board comments. Member Smith moved approval of Resolution 17-15, attached hereto and incorporated herein. Member Otto ITEM 8 FREMONT WILSHIRE AND CADA WAREHOUSE BUILDING LOAN (1424 P STREET AND 701 S STREET) Staff Recommendation: Staff recommends that the Board adopt a resolution authorizing the execution and delivery of a Loan Agreement to provide funds to repay prior loans of the Authority and a Placement Agent Agreement; approving related documents and actions; and provide other matters properly relating thereto. Staff Contact: Noelle Mussen, Controller No Board comments. Member Otto moved approval of Resolution 17-16, attached hereto and incorporated herein. Member Maviglio ITEM 9 CADA ADMINISTRATION OFFICE DESIGN AND BUDGET ( TH STREET) Staff Recommendation: Staff recommends that the Board adopt a resolution for the proposed CADA Administrative Office Remodel Project that authorizes the Executive Director to enter into a Pre-Construction Services Contract with Tricorp Group and approves a Budget Amendment to transfer $300,000 currently budgeted in the FY Operations Budget to the FY Major Construction Budget. Staff Contact: Tom Kigar, Special Projects Director Chair Bailey reported that the Operations Committee did not make a recommendation. Member Lagomarsino reported that the Development and Construction Committee recommended approval. Member Otto asked about the cost of relocating staff during construction. Tom Kigar stated that staff is working with Tricorp on this, and there is a possibility that there will be limited costs involved because key staff can work in either the Board room or the Courtyard, while other staff can work from home. Chair Bailey asked if this project could be phased. Wendy Saunders stated that due to the reconfiguration of the conference room and the offices, it is the most cost effective for it to be all to be done all at once. The bathrooms and break room could be done at a later date, but that would mean disrupting the office twice instead of once.

4 Member Maviglio stated that the furniture is too contemporary for a State office. Brianne Jones from designtech stated that most of the budget for the furniture is the workstations, which is commercial grade and meant to last. Chair Bailey stated that the office is in need of an upgrade for the big ticket items such as HVAC and lighting, but the furniture is giving her pause. Chair Bailey recommends approval today, but would like to rethink some components to the design, such as the accent chairs. Member Lagomarsino stated that the materials are only a small portion of the project and the overall budget. Wendy Saunders stated that she did a comparison with other office spaces and it s in alignment with what other landlords offer. Member Otto moved approval of Resolution 17-17, attached hereto and incorporated herein. Member Bailey ITEM 10 ORAL STAFF REPORTS/UPDATES A. Downtown Sacramento Partnership: Wendy Saunders reported that there was a Board meeting on Wednesday, and DGS Director Dan Kim presented a letter of support for the R Street garage proposal. Richard Rich has been hired by the City to take an assignment to revitalize the Sacramento riverfront. The presentation was very interesting and she would like him to present it to the CADA Board in the near future. B. Downtown Sacramento Revitalization Corporation: No update. C. Midtown Association: Wendy Saunders reported that the new Midtown Association office is at 21 st and N Street. They held their Annual Gala at Faces last night, and it was a nice event. D. Mercury Cleaners (Northeast Corner of 16th and O Streets): Marc de la Vergne reported that the State is continuing work on injecting microbes around the center of the Mercury Cleaners site as well as at the Enterprise parking lot and includes deeper injections. The remediation effort has been yielding positive results. E. Eviva Midtown (Northwest Corner of 16th and N Streets): Marc de la Vergne reported that the Developer is moving forward to market the project, but the Board must approve the terms and conditions of the sale. F. Roosevelt Park ( th Street): Marc de la Vergne reported that staff is working with Callander and Associates in developing marketing materials for the fundraising for Roosevelt Park. Staff is working on a grant application for SMUD s Shine program, which is a $100,000 grant used to assist nonprofits to improve neighborhoods. G. O Street Streetscape (7 th 17 th Streets): Marc de la Vergne reported that Caltrans announced the winners for the grant program and CADA s application was not selected. There was a lot of competition at the regional level and the O Street application was considered a medium priority. The next step is to use the already-budgeted matching funds to do a scaled down streetscape design. Staff will issue the RFP for the design next month. H. AB1699 Application for Biele Place: Marc de la Vergne reported that staff submitted all of the documents needed to submit to HCD in connection with refinancing the loan. I. 16th Street Streetscape (N S Streets): Todd Leon reported that staff is working with the City on an agreement to finish the design and begin construction on Fremont Park, and work will be put out to bid next month. The project is still on schedule to be finished at the end of summer.

5 J. Fremont Park (15 th /16 th & P/Q Streets): Todd Leon reported that Friends of Fremont Park will host another Movie in the Park later this year, and CADA will help with sponsoring this event. The City is focusing on new events and park improvements, including programmable lighting. K. R Street PBID: No update. L. Orchard Supply (17 th /R Streets): Todd Leon reported that there have been five rounds of monitoring of the groundwater remediation. The Water Board will fund the missing well out of the trust to find and repair it before the two-year period is over. M. Site 21 (14 th and N Streets): Tom Kigar reported that staff is on schedule to present the Exclusive Negotiating Agreement with Cresleigh Homes to the Board in June. The developer is working on the market study. N. R Street Streetscape Phases III and IV (13 th 16 th Streets): Todd Leon reported that the new bids came in the same as before. Staff met with City to discuss next steps, including engaging SACOG. The City has offered money toward the project, and both staff and the City are motivated to complete this section of R Street. O. R Street Affordable Housing (1717 S Street): Todd Leon reported that staff is in the middle of community outreach. There will be a community open house meeting at CADA. The entitlements were submitted to City on Monday, and they will be finalized later this summer. Staff is engaged with Regional Transit to obtain greenhouse points to make the application competitive. P. Brooks Truitt Dog Park (19 th /Q Streets): Todd Leon reported that the large trees have been planted, and now there is excess soil on the site. Staff is working with the County to allow taking the soil off site. If the soil shows contamination, it must be taken to a specific facility. The dog park is still on track to be completed by July. ITEM 11 TRANSMITTALS Marc de la Vergne provided an overview of the Draft Business Plan for FY (Item 11A). ITEM 12 OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE BOARD REGARDING MATTERS NOT ON THE AGENDA. ITEM 13 ADJOURNMENT The meeting adjourned at 11:10 a.m. Rachel Mercurio Secretary to the Board of Directors