City Council Special Meeting Minutes 1 June 16, 2022
MISSION VIEJO MINUTES
Special City Council Meeting
June 16, 2022
A Special Meeting of the City Council, the Community Development Financing Authority, the Successor Agency of the Community Development Agency, the Housing Authority, and the Library Board of Trustees of the City of Mission Viejo, California, was called to order by Mayor Bucknum at 6:01p.m., on June 16, 2022, at 200 Civic Center, Mission Viejo, California.
A complete copy of the agenda for the meeting containing all items as shown he rein was posted by 5:00 p.m. on June 15, 2022, on the outdoor bulletin board at City Hall. Copies were also posted at Montanoso Recreation and Fitness Center, 25800 Montanoso Drive, and Norman P. Murray Community and Senior Center, 24932 Veterans Way.
*All Board and Agency memberships are reflected in the title "Council Member."
Present: Council Member Goodell (via teleconference)
Council Member Kelley
Council Member Raths
Mayor Pro Tem Sachs
Mayor Bucknum
Absent: None
Staff Present: Dennis Wilberg, City Manager
William P. Curley III, City Attorney
Keith Rattay, Assistant City Manager/Director of Public Services Cheryl Dyas, Director of Administrative Services
Kimberly Schmitt, City Clerk
INVOCATION: Council Member Raths
PLEDGE OF ALLEGIANCE: Council Member Kelley
PUBLIC COMMENTS
Cathy Schlicht, M.V.: Commented that the Judge in yesterdays hearing seemed to be unaware of the many circumstances surrounding the lawsuit. Ms. Schlicht asked if the City Attorney suppressed material facts from the court and if so, was the court mislead and thereby this Stipulated Judgement was weaponized against the public. She s tated that the City lost its opposition in the ex-parte hearing and the lawsuits have been transferred back to the Judge Shwarm with the hearing scheduled for June 28.
City Council Special Meeting Minutes 2 June 16, 2022 City Attorney clarified that Judge Gastelum in department 11 had all the documents and cases. He transferred it and was received yesterday by Judge Shwarm. Judge Shwarm noted that he had not seen the papers and had no idea what was in them since he just received them. City Attorney said there was no misinformation or who knew what because the courts have had all the information since 2018.
Carlos Pianelli, M.V.: Expressed that or children are the most important asset and our schools are the most important real estate. He spoke out about school safety and laid out facts on gun violence throughout our Country. Stressed that we need a security system to protect the children and offered his assistance to the City Council.
City Manager Wilberg announced that on June 1 he received a call from the broker of the property owners that own the CVS building. The broker indicated that the property is on the market and wanted to know if there was any city interest. Mr. Wilberg indicated to the broker that the City is interested, but as the City Manager he does not have the authority to commit the City one way or the other until discussed by the City Council which would give staff direction. He stated that we are hear this evening to discuss the fact that the CVS store is for sale not CVS itself. The things to consider first is the project proposal could stop before it even gets started. That being said, if there is interest in looking at the opportunity further, there are a number of things we would look into as part of our due diligence. Some of which are included in the brief staff report, such as the sale and offer price, financing, funding mechanisms, and any third-party participation opportunities so that the City would not have to use any funds . He stated that since this past Tuesday when this opportunity was announced he has received three different calls that there are some third parties interested which would be very interested in partnering with the City. He said there would be the normal review of the building itself and the structural integrity and hazmat issues. All these things would need to be looked at before there would be any kind of recommended by staff back to the City Council or for any opportunity for the City Council to decide. La stly, he emphasized this evening that we are not buying a property, we are not spending any money, and that he is just bringing forth the information that the property is for sale and is there any interest on the part of the City becoming involved.
OPEN SESSION
Discussion considering the purchase by the City, or in some form of collaboration with other parties, of the Real Property in the Village Center upon which the CVS Store is located 25272 Marguerite Parkway, Mission Viejo, CA 92692. The property owner is offering the Core Area property for sale on the open market to the general public. The seller has directly invited the City to make an off er to purchase the Real Property upon which the CVS store operates. The City Council will deliberate, after receipt of public and staff testimony.
The City Manager Dennis Wilberg, Assistant City Manager Keith Rattay, and City Attorney William Curley gave the report.
Cathy Schlicht, M.V.: Stated that an election year brings out transparency compared to purchase of the Stein Mart property. She recapped the history of the Stein Mart agenda items. She questioned if Mr. Breton was apprised ahead of time of this walk-on item at
City Council Special Meeting Minutes 3 June 16, 2022 last Tuesday’s City Council Meeting. She asked what the City has planned for the Stein Mart and that there are bond payments being made with no return on investment.
Carlos Pianelli, M.V.: Stated that the residents are angry with the process and felt the City was pressured and pointed out that not many residents knew about this meeting.
Asked about the Core Area Vision Plan and how long is it going to take.
Tom Moore, M.V.: Commented on the specific plan and stressed that it’s important for the community to understand what is going into the Core Area.
Cathy Palmer, M.V.: Voiced her concerns on the purchase of the CVS building and feels that the decision is being rushed and the input the public provides is not taken seriously.
She stated real estate purchases by cities that there is potential for conflicts of interest and undue influence with developers. She is in favor of a private entity but not in favor of putting the residents on the hook for more real estate development. Urged the Council to move cautiously.
Gideon Victor, M.V.: Spoke in favor of mixed-use housing. Outlined the debt ratio of the City if they were to purchase this property.
Robert Breton, M.V.: Clarified that the allegation that he knew about the walk- on item at the last Council Meeting was incorrect. He was at City Hall to discuss business with the City Manager. Stated that this city is master planned, it is beautiful by design due to the visionary leadership and hard work of the city council and city st aff. Emphasized that the City needs to explore this valuable opportunity.
Wendy Lee, M.V.: Expressed concerns about the economy . She feels these funds should be kept in reserves and not spent. Questioned if the City would have to buy out the lease of CVS or not build for the eight years that are left on the CVS lease. She is in favor of developing the shopping center but to take into consideration the current economy.
The Council Member’s asked various questions.
Motion made by Mayor Pro Tem Sachs t o receive input from the Investment Advisory Commission as expeditiously as possible.
Motion failed for lack of second.
Motion made by Council Member Goodell to move this item to Closed Session to discuss taking the steps recommended by staff in terms of exploring the opportunity of price and terms to start the process.
Council Member Goodell amended his motion to authorize staff to contact the owner of this property and enter into discussions about the terms that would be necessary before spending money on the due diligence items.
Motion failed for lack of second.
City Council Special Meeting Minutes 4 June 16, 2022 Motion made Council Member Goodell to direct staff reach out to the seller and depending on how that is received we will look at the expenditures and due diligence.
Motion failed for lack of second.
Motion made by Mayor Pro Tem Sachs, seconded by Mayor Bucknum to direct staff not to move forward on the purchase of this property.
Council Member Goodell asked for a substitute motion to direct the C ity Manager to incorporate the finance and administration committee into the process to evaluate any financing terms and to explore private party partnerships where the city would not have to spend any money in this process and to reach out an d talk to the owners to put together a deal under those conditions.
Motion failed for lack of second
Motion made by Mayor Pro Tem Sachs, seconded by Mayor Bucknum to direct staff not to move forward on the purchase of this property.
On roll call, said motion carried by the following vote:
AYES: Bucknum, Kelley, Raths, and Sachs
NOES: Goodell
ABSENT: None
City Attorney stated that a Closed Session will not be rendered.
ADJOURNMENT
At the hour of 7:20 p.m., with no further business to come before the City Council at this special meeting, Mayor Bucknum adjourned the meeting
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Kimberly Schmitt, City Clerk
Approved at the meeting of June 28, 2022