HomeMy WebLinkAbout05 APPOINTMENT OF REPRESENTATIVES TO STEVENS SQUARE PARKING STRUCTURE ASSOCIATIONMEETING DATE: September 20, 2016
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JEFFREY PARKER, CITY MANAGER
SUBJECT: APPOINTMENT OF REPRESENTATIVES TO STEVENS SQUARE PARKING
STRUCTURE CONDOMINIUM ASSOCIATION
SUMMARY:
This agenda item would appoint two individuals to serve as interim directors on the Board of
the Stevens Square Parking Structure Condominium Association and authorize the City
Manager to remove and make all future appointments to the Board on the City's behalf.
RECOMMENDATION:
It is recommended that the City Council:
Appoint Jerry Craig and Dana Ogdon to serve and act in the capacity as the City's
selected interim directors in the Stevens Square Parking Structure Condominium
Association; and
2. Authorize the City Manager in his/her discretion to permanently or temporarily remove
and appoint directors to that Association in the future.
FISCAL IMPACT:
Appointment of the two interim directors will not have a direct fiscal impact upon the City. In
the event that the Board of the Condominium Association pursues future maintenance of the
Stevens Square Parking Structure, authorization to pay the City's share of the costs of such
maintenance will be included in future budgetary requests from the Council.
CORRELATION TO STRATEGIC PLAN:
Approval would advance Strategic Plan Goal D: "Continue to work collaboratively with
agencies within and outside Tustin on issues of mutual interest and concern" (e.g., the
Condominium Association and its other members) by implementing the process authorized
by existing agreements for maintenance of the parking structure that is partially owned by
the City.
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STEVENS SQUARE PARKING STRUCTURE
September 20, 2016
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BACKGROUND AND DISCUSSION:
Since the early 1980s, the Community Redevelopment Agency of the City of Tustin, and later
the Successor Agency to that Redevelopment Agency, had been a part owner of the parking
structure adjacent to the Stevens Square. On January 20, 2016, the Successor Agency's
interest in that Parking Structure was conveyed to the City, and the structure continues to
provide public parking for the benefit of the downtown area.
The parking structure was developed as a condominium. In broad terms, the City owns one
"unit" of airspace within a number of assigned parking spaces contained in the structure. The
current Mall owner owns the other 2 "units" of airspace in the remaining parking spaces. The
structure itself is owned by both the Mall Owner and the City as tenants in common. In
addition, the City has an easement for public use and ingress and egress to the structure.
The parking structure was developed in accordance with a "Mall and Plaza Agreement"
entered into between the Community Redevelopment Agency and a prior owner of the mall.
The agreement was offered and accepted, in part, in consideration for the City's Resolution
of Vacation of a portion City Street needed to make way for the construction of the parking
structure. Pursuant to the Mall and Plaza Agreement, a set of Covenants, Conditions and
Restrictions ("CC&R's") were recorded against the property and a non-profit mutual benefit
corporation was established to repair and maintain the parking structure. The Association is
required by the CC&R's incorporated into the Mall and Plaza Agreement to impose and
collect assessments on the "unit" owners sufficient to maintain and improve the parking
structure. The Association has been formed but has not been active for a number of years.
The parking structure is now in need of maintenance and repairs.
To ensure that this and future required maintenance of the structure is conducted in
accordance with the existing recorded agreements, it is necessary to re -activate the non-
profit corporation known as "Stevens Square Parking Structure Condominium Association."
That Association will coordinate the actual maintenance work and collect the required
assessments from the City and the Mall Owner. (Under the CC&R's recorded against the
parking structure, the City is required to pay 38.03% of the assessed maintenance costs and
operating expenses of the Association while the Mall Owner is required to pay 61.97%.)
The City has 50% voting power in the Association and the Mall Owner has the other 50% -
per the Association's By-laws and the CC&R's. In order to re -activate that Association, the
City must designate two (2) interim directors of the Association to exercise its voting power
as a member of the Association. Those interim directors will then participate in a meeting of
members to appoint the actual Board of Directors of the Association. The Association will
then act by and through its Board of Directors. The Association By-laws provide for 4
members on the Board. (Ultimately, once the appointed interim directors duly call an election,
it is expected that the City will effectively elect 2 directors, Jerry Craig and Dana Ogdon, and
the Mall Owner will elect the other 2 directors).
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STEVENS SQUARE PARKING STRUCTURE
September 20, 2016
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It is recommended that the two individuals to be initially appointed be familiar with the City's
existing interests in the parking structure, as well as with the economic development roles of
that structure and the City's community development/planning requirements. Jerry Craig
serves as the Economic Development and Housing Manager for the City and brings
extensive background overseeing the City's interests in the Stevens Square Parking
Structure and in the advancing the City's overall economic development objectives both
downtown and City-wide. Dana Ogdon serves as Assistant Director of Community
Development, with extensive background and familiarity with the City's building and planning
processes and requirements. It is therefore recommended that those two individuals be
appointed to serve as the interim directors.
City staff and the City Attorney's office met with the Mall Owner and their legal counsel on
August 30, 2016 to discuss options for maintaining, and potentially improving the parking
structure in the future. One option is to reactivate the Association as originally envisioned at
the time of the Resolution of Vacation of the affected City Street. The Mall Agreement does
provide, however, that upon termination of the Agreement by the Mall Owner the parking
structure is irrevocably dedicated to the City. One topic of discussion at the member meeting
will likely involve conditions whereby the Mall Owner could simply elect to terminate the Mall
and Plaza Agreement and dedicate the structure to the City. In this way, the Mall Owner
could avoid assessments causing it to bear the lion's share of all future maintenance and
capital improvement expenditures as may be approved the Association's Board of Directors.
When future changes need to be made to the City's representative members, it is also
recommended that the Council authorize the City Manager to make such future appointments
in his/her discretion.
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