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HomeMy WebLinkAbout03-28-1978MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA March 28, 1978 The meeting was called to order at S:00 P.M. by Mayor Vernon S. Evans in the City Council Chamber, 22 Civic Center Plaza. Council members present were David F. Ortiz, Harry K. Yamamoto, David L. Brandt, John Garthe, Gordon Bricken, James E. Ward, and Mayor Evans. The following members of Staff were present: City Manager Bruce C. Spragg, Assistant City Manager Daniel E. Stone, City Attorney Keith L. Gow, Director of Public Works John E. Stevens and Clerk of the Council Florence I. Malone. PLEDGE OF ALLEGIANCE INVOCATION The Invocation was given by Councilman Garthe, following the Pledge of Allegiance to the Flag, PUBLIC HEARING - PROPOSED SALE Mayor Evans announced that OF PROPERTY - HERITAGE DEVELOPMENT this was the time and place RES. ?8-3? & ?8-38 ADOPTED for the public hearing of the proposed sale by the Community Redevelopment Agency of the City of Santa Ana to Heritage Development Company and environmental findings in rela- tion thereto; the site bounded on the north by Santa Aha Boule- vard, on the west by Part6n Street, on the south by Third Street, and on the east by Van Ness Avenue. He stated that the sale had been unanimously recommended by the Community Redevelopment Commission at its March 14, 1978 meeting. Community Redevelopment Director Richard Goblirsch stated that the Agency previously authorized Staff to enter into negotiations with Heritage Development with regard to development of the subject parcel; that Heritage Development owns approximately one-third of the property; that it is proposed that the Community Redevelop- ment Agency enter into an Owner Participation Agreement with Heritage Development Company whereby the Community Redevelopment Agency agrees to acquire the remainder of the block and sell it to the developer; that the Agency will spend approximately $750,000 to acquire the property, and it will be sold to the devel- oper for $210,000 as determined by appraisal, that the Agency's net cost for the Project will be one-half million dollars. Mr. Goblirsch continued by stating that the six-million dollar development proposed by Heritage will bring an increase in property tax of $100,000 annually, which would pay for the investment within five years after construction of the building. Mr. Warren K. Van Ingen, Chairman of the Board of Heritage Devel- opment Company, described the proposed development and presented artist renderings of the proposed structure, showing the proposed town office space, and the proposed shops, restaurants and stores. He stated that 475 parking spaces would be provided in a sub- terranean garage. He further stated that his company would own and operate this development as well as other buildings in Santa Ana. Mr. Goblirsch stated that the proposed contract offers a guaran- tee that the City will have the first right to purchase the developer's property should he be unable to finance his project. Leo Friis, 600 N. Clementine Street, owner of property at 301 North Parton Street, in the block to be redeveloped, asked how soon the acquisitions would begin. Mr. Goblirsch stated that if the sale CITY COUNCIL MINUTES 121 MARCH 28, 1978 is approved, the acquisitions would begin immediately; that it would probably take about 9 to 12 months to complete the assembly of the site for conveyance to the developer. There being no further speakers, Mayor Evans closed the public hearing. On the motion of Councilman Brandt, seconded by Councilman Garthe, carried 6:1, with Councilman Yamamoto dissenting, the following resolution was adopted: RESOLUTION NO. 78-37 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MAKING ENVIRONMENTAL FINDINGS NECES- SARY FOR THE PROPOSED PARTICIPATION AGREEMENT BETWEEN COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HERITAGE DEVELOPMENT COMPANY FOR THE SALE AND DEVELOPMENT OF THAT CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT. On the motion of Councilman Brandt, seconded by Councilman Ward, carried 6:1, with Councilman Yamamoto dissenting, the following resolution was adopted: RESOLUTION NO. 78-38 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDERATION TO BE RECEIVED BY THE COMMUNITY REDEVELOP- MENT AGENCY OF THE CITY OF SANTA ANA PURSUANT TO A PARTICIPA- TION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HERITAGE DEVELOPMENT COMPANY FOR THE SALE AND DEVELOPMENT OF CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT; APPROVING THE PROPOSED SALE OF SAID REAL PROPERTY; AND APPROVING THE PARTICIPATION AGREE- MENT PERTAINING THERETO. CA 82.20 ORAL COMMUNICATION Mayor Evans announced that HIRING FREEZE EXEMPTION it had come to his attention RECONSIDERATION - BUYER that there is a severe hard- APPROVED ship in the Finance Depart- ment with only one remain- ing Buyer, and he asked if Council would move to reconsider the position's exemption from the hiring freeze. At its March 20 meeting, Council had denied a request to lift the freeze to fill the vacancy. On the motion of Councilman Brandt, seconded by Mayor Evans, carried $:2, with Councilmen Ortiz and Bricken dissenting, the denial of an exemption from the hiring freeze for the hiring of a Buyer in the Finance Department will be reconsidered at the April 3, 1978 meeting. ADJOURNMENT 7:0, the meeting was adjourned. At 5:25 P.M., on the motion of Councilman Yamamoto, seconded by Councilman Ortiz, unanimously carried FLN~-RBNCE I. MALONE-- CLERK OF THE COUNCIL CITY COUNCIL MINUTES 122 MARCH 28, 1978