HomeMy WebLinkAbout75A - SALE PROPERTY ON S.MAIN
REQUEST FOR
COUNCIUAGENCY
8 ACTION
MEETING DATE:
~
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CLERK OF COUNCIL USE ONLY:
JULY 6, 2004
TITLE:
APPROVED
0 As Recommended
D As Amended
0 Ordinance on 1st Reading
D Ordinance on 2nd Reading
D Implementing Resolution
D Set Public Hearing For
PUBLIC HEARING - DISPOSITION AND
DEVELOPMENT AGREEMENT WITH
DONALD J. CREVIER, AS TRUSTEE OF
THE DONALD J. CREVIER TRUST,
CREVIER MOTORS, INC., A
CALIFORNIA CORPORATION, AND
CREVIER LEASING COMPANY, INC., A
".~~ CORPORATI°ti CREVIER
. CITY MANAGER XECUTIVE DIRECTOR
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
8=ITY COUNCIL ACTJ:ON
Adopt a resolution making certain findings with respect to the
consideration to be received by the Community Redevelopment Agency
pursuant to a Disposition and Development Agreement between the Community
Redevelopment Agency and Donald J. Crevier, as Trustee of the Donald J.
Crevier Trust, Crevier Motors, Inc., a California corporation, and
Crevier Leasing Company, Inc., a California corporation, for the sale of
certain real property in the South Main Street Redevelopment Project Area
and approving the sale of said real property upon the terms and
conditions contained in that Agreement.
COMMUNITY REDEVELOPMENT AGENCY ACTJ:ON
Adopt a resolution approving a Disposition and
Donald J. Crevier, as Trustee of the Donald
Motors, Inc., a California corporation, and
Inc., a California corporation (Developer).
Development Agreement with
J. Crevier Trust, Crevier
Crevier Leasing Company,
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DDA with Donald J. Crevier, as Trustee of the
Donald J. Crevier Trust, Crevier Motors, Inc.,
A California Corporation, and Crevier Leasing
Company, Inc., a California Corporation -
Crevier BMW Dealership
July 6, 2004
Page 2
COMMUNITY REDEVELOPMENT AND HOUSING COMMJ:SSION RECOMMENDATION
1.
Recommend that the City Council adopt a resolution making certain
findings with respect to the consideration to be received by the
Community Redevelopment Agency pursuant to a Disposition and
Development Agreement between the Community Redevelopment Agency and
Donald J. Crevier, as Trustee of the Donald J. Crevier Trust,
Crevier Motors, Inc., a California corporation, and Crevier Leasing
Company, Inc., a California corporation, for the sale of certain
real property in the South Main Street Redevelopment Project Area
and approving the sale of said real property upon the terms and
conditions contained in that Agreement.
2.
Recommend that the Community Redevelopment Agency adopt a resolution
approving a Disposition and Development Agreement with Donald J.
Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors,
Inc., a California corporation, and Crevier Leasing Company, Inc., a
California corporation (Developer).
By a vote of 7:0 at its Regular Meeting of June 15, 2004.
DISCUSSION
The Community Redevelopment Agency has embarked on a business retention
and expansion effort for the Santa Ana Auto Mall. There are currently
nine new car dealers in the mall generating over $3.7 million in annual
sales tax revenue for the City's General Fund. Given industry trends
over the past several years favoring new car dealer consolidations, it
has become necessary to provide larger lots to accommodate increased car
inventories for dealerships. In May 2003, the Agency issued tax
allocation bonds for land acquisition, relocation and site preparation
costs for future redevelopment purposes. To date, the Agency has
acquired properties from the Wyne-Snow Industrial Park Partnership and
AP-Edinger LLC totaling 4.23 acres along the Edinger Avenue frontage
(1941-2009 E. Edinger Avenue), land that is now proposed to be used to
facilitate dealership expansion.
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DDA with Donald J. Crevier, as Trustee of the
~onald J. Crevier Trust, Crevier Motors, Inc.,
~ California Corporation, and Crevier Leasing
Company, Inc., a California Corporation -
Crevier BMW Dealership
July 6, 2004
Page 3
The subject actions will enable the expansion of the existing BMW
Dealership at the Santa Ana Auto Mall by Donald J. Crevier, as Trustee of
the Donald J. Crevier Trust (Developer) (Exhibit 1). Crevier BMW, one of
four BMW dealerships in Orange County, is currently ranked first in "New
Car Sales" in the nation and holds the title of number one in the nation
for "Certified Pre-Owned Sales". The Santa Ana dealership with 267
existing employees expects to add 200 employees upon completion of the
expansion, while creating 175 construction jobs during build-out. Sales
volumes have nearly doubled from 1993 ($45.8 million) to 1998 ($88.1
million) and more than doubled again from 1998 to 2003 ($233.3 million).
Projected total sales are expected to reach $560 million by 2008.
The proposed Disposition and Development Agreement (DDA) calls for the
~eveloper to purchase approximately 4.23 acres or 184,597 square feet of
~~and from the Agency at $20 per square foot, or $3,691,940. This acreage
includes a 161-square foot parcel located adjacent to the property to be
conveyed. This 161-square foot parcel is addressed in an Option
Agreement referenced in the DDA. The Agency secured this option as part
of the acquisition of property from the Wyne-Snow Industrial Park
Partnership. The 4.23 acres owned by the Agency will be conveyed in two
phases to accommodate the Developer's construction schedule. The Agency
is responsible for conveying a clear and buildable site, and will thus be
providing the Developer with a credit against the purchase price for
demolition of improvements on the property being sold. A reuse analysis
found that the purchase price of $20 per square foot is consistent with
fair market value for clear and buildable land; thus, the Agency is being
fairly compensated for the land.
The Developer received site plan approval from the Planning Commission at
its May 10, 2004 meeting in accordance with Specific Development No. 60
(SD-60), the zoning document that governs the Auto Mall (Exhibit 2). On
June 7, 2004, the City Council received and filed the subject staff
report. The proposed facility consists of approximately 170,066 square
feet of service, sales and office space and a five-level, six-tier,
approximately 730-space parking structure. The parking structure will be
used primarily for the storage of new car inventory. The project is
~roposed to be built in three successive phases, each taking
~pproxirnately one year to complete: construction of the Phase I parking
structure is anticipated to commence in August 2004 following conveyance
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DDA with Donald J. Crevier, as Trustee of the
Donald J. Crevier Trust, Crevier Motors, Inc.,
A California Corporation, and Crevier Leasing
Company, Inc., a California Corporation -
Crevier BMW Dealership
July 6, 2004
Page 4
of the first parcel by the Agency; the new showroom and office area will
be constructed as part of Phase II on the second parcel to be conveyed;
and the new sales, service, parts and office addition to the existing BMW
building will be built in Phase III on Crevier's existing property. The
phasing will allow the dealership to continue its operations without
major disruption to sales and service.
The law requires a public hearing for the purpose of considering the
proposed sale of the property. On June 23 and June 28, 2004,
notification was published in the Orange County Reporter that a summary
report and other documents relating to the sale were available for public
inspection beginning June 23, 2004, and that persons wishing to Comment
on this matter may appear at the public hearing or submit written
COmments in advance.
CEQA COMPLIANCE
In accordance with the California Environmental Quality Act, the
recommended action is exempt from further review. Categorical Exemption
Environmental Review No. 2003-111a will be filed for this project.
FISCAL IMPACT
The funds from the sale of the property in the amount of $3,691,940 will
be credited to the South Main Tax Allocation Bonds account (account no.
552-01-5721) and the South Main Operations account (account no. 550-01-
5721) .
APPROVED AS TO FUNDS AND ACCOUNTS:
~~Reekstin
Executive Director
Community Development
Agency
¡..J It R. oloma ~
r' Execut've Director
Finance & Management
Services Agency
JPR/VU/SG/mlr
Actions\2004CC\JT CC-CRA - CrevierDDA
7-6-04
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Exhibit 1
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EXHIBIT 2
75A-6
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bk:6/30/04
RESOLUTION NO. 2004-049
A RESOLUTION OF THE CITY COUNCIL OF SANTA ANA
MAKING CERTAIN FINDINGS WITH RESPECT TO THE
CONSIDERATION TO BE RECEIVED BY THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
PURSUANT TO A DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA, AND DONALD J.
CREVIER, AS TRUSTEE OF THE DONALD CREVIER TRUST,
CREVIER MOTORS, INC" AND CREVIER LEASING COMPANY,
INC" FOR THE SALE OF CERTAIN REAL PROPERTY IN THE
SOUTH MAIN REDEVELOPMENT PROJECT AND APPROVING
THE SALE OF SAID REAL PROPERTY UPON THE TERMS AND
CONDITIONS CONTAINED IN THAT AGREEMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS
FOLLOWS:
SAdinn 1: The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. The Community Redevelopment Agency of the City of Santa Ana
(hereinafter referred to as the "Agency") is engaged in activities necessary
to execute and implement the Redevelopment Plan for the South Main
Redevelopment Project.
B. In order to implement the Redevelopment Plan, the Agency has
agreed, subject to the approval of this Council, to sell certain real property in
the Project Area, pursuant to the terms and provisions of that certain
Disposition and Development Agreement (hereinafter referred to as the
"Agreement") between the Agency and Donald J, Crevier, as Trustee of
The Donald Crevier Trust, Crevier Motors, Inc., a California Corporation,
and Crevier Leasing Company, Inc, a California Corporation, which is
attached to the Request for Council/Agency Action submitted in conjunction
with this Resolution, in which said Site, commonly known as 1941-1961 and
2009 East Edinger Avenue and consisting of approximately 4.23 acres, is
further described. This Request for Council/Agency Action and its
attachments are incorporated herein by this reference as though fully set
forth.
C.
The Agreement contains all of the provisions, terms, conditions and
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75A-7
obligations required by the state and local laws.
D. Donald J, Crevier, as Trustee of The Donald Crevier Trust, Crevier
Motors, Inc, and Crevier Leasing Company, Inc., possess the qualifications
and financial resources necessary to acquire and insure development of the
Site, in accordance with the purpose and objectives of the Redevelopment
Plan.
E. In accordance with the California Environmental Quality Act, the
recommended action is exempt from further review. Categorical
Exemption Environmental Review No, 2003-111 a will be filed for this
project.
F, Pursuant to the provisions of the California Redevelopment Law, the
Agency and the City Council have held a duly noticed joint public hearing on
the proposed sale of the Site pursuant to the Agreement.
Section 2. The City Council has considered all terms and conditions of the
proposed sale and hereby finds and determines that the sale and the redevelopment of
the Site pursuant to the Agreement is the best interests of the City of Santa Ana and the
health, safety and welfare of its residents, and is in accord with the public purpose and
provisions of the applicable state and local laws,
Section 3. The City Council hereby finds and determines that the consideration
for the sale of the Site pursuant to the Disposition and Development Agreement is not
less than the fair reuse value of the Site determined in accordance with the covenants
and conditions governing the sale.
Section 4, The sale of the Site by the Agency to Donald J. Crevier, as Trustee
of The Donald Crevier Trust, Crevier Motors, Inc, and Crevier Leasing Company, Inc"
upon the terms and conditions contained in the Agreement is hereby approved,
Section 5.
this Resolution.
The Clerk of the Council shall attest to and certify the vote adopting
ADOPTED this
day of
,2004.
Miguel A. Pulido
Mayor
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APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Benjamin Kaufman
Chief Assistant City Attorney
AYES:
Councilmembers:
NOES:
Councilmembers:
ABSTAIN:
Councilmembers:
NOT PRESENT:
Council members:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2004-049 to be the original resolution adopted by the City Council of the
City of Santa Ana on
Date:
Clerk of Council
City of Santa Ana
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