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HomeMy WebLinkAbout01/08/1975 . , . . .. MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY CITY OF SANTA ANA, CALIFORNIA January 8, 1975 The Regular Meeting of the Community Redevelopment Agency was called to order by Vice Chairman Evans at 4:05 P.M., in Room 831, City Hall, 20 Civic Center Plaza. Roll call was answered as follows: Present Absent J. Ogden Markel John Garthe James E. Ward Lorin Griset Vernon S. Evans Harry K. Yamamoto Jerry M. Patterson, Chairman The following persons were also present: Richard Goblirsch, Executive Director Bruce C. Spragg, City Manager James A. Withers, Agency Counsel Florence I. Malone, Recording Secretary The Minutes of the Ad- journed Regular Meeting of December 16,1974 and the Regular Meeting of December 11, 1974, were unanimously approved (6-0) as submitted, on motion of Commissioner Griset, seconded by Commissioner Garthe. MINUTES The Agency accepted with regret the resignation of its Chairman, Jerry M. Patterson, effective December 18,1974, as contained in his letter dated December 18, 1974, on the unanimously approved (6-0) motion of Commissioner Griset, seconded by Commissioner Ward. RESIGNATION OF CHAIRMAN PATTERSON Gordon Bricken was appointed as a member of the Agency, replacing Jerry M. Patterson, recently elected as a member of the House of Representatives, on the unanimously approved (6-0) motion of Commissioner Griset, seconded by Commissioner Ward. The Clerk of the Council admin- istered the Oath of Office to Commissioner Bricken. APPOINTMENT OF GORDON BRICKEN The Vice Chairman opened nomination for Chairman. Vice Chairman Vernon S. Evans' name was placed in nomination by Commissioner Griset, seconded by Commissioner Garthe. There were no further nominations and they were declared closed by the Vice Chairman. Vernon S. Evans was unanimously elected Chairman of the Community Redevelop- ment Agency of the City of Santa Ana. ELECTION OF CHAIRMAN The Chairman opened nomi- nations for election of Vice Chairman of the Agency. 'Commissioner Harry K. Yamamoto's name was placed in nomination by Commissioner Ward, seconded by Commissioner Griset. There were no further nominations and they were declared closed by the Chairman. Harry K. Yamamoto was unanimously elected Vice Chairman of the Community Redevelopment Agency of the City of Santa Ana. ELECTION OF VICE CHAIRMAN . ~ . . '. MINUTES COMMUNITY REDEVELOPMENT AGENCY January 8,1975 The Executive Director stated that the negotiations by the Ericson Development Company, for the proposed expansion of the Bullocks Fashion Square Shopping Center on North Main Street, had narrowed down to dis- cussion with one of the major department stores; that Mr. Ericson is committed to the proj ect; that negotiations over the terms of the agreements for construction, rentals, development, and financing are taking longer than originally estimated which can probably be attributed to the economy in general. He added that everything looks favorable and is going along well. ERICSON DEVELOPMENT COMPANY Mr. Goblirsch also stated that negotiations were underway between Mr. Ericson and the Tishman Development Corporation to effect an arrangement whereby Ericson Development and Tishman Development Corporation would work together on the pro j ect as developer and builder, respectively. A RESOLUTION OF THE COM- MUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA REQUESTING THE PLANNING COMMISSION OF THE CITY OF SANTA ANA TO SELECT AN EXPANDED BOUNDARY FOR THE CITY OF SANTA ANA REDEVELOPMENT PROJECT AREA AND TO FORMULATE, APPROVE AND ADOPT AN AMENDED PRELIMINARY PLAN FORMULATED FOR THE REDEVELOP- MENT OF THE PROJECT AREA AS EXPANDED. was unanimously adopted (6-0) on motion of Commis.sioner Garthe, seconded by Commissioner Griset. RESOLUTION NO. 75-1 Prior to the adoption of the Resolution, the Executive Director stated that adoption of the resolution is one of the legal steps necessary to amend the project area boundaries; that it is nec- essary to proceed with the proposed amendment. process at this time to be prepared to assure Ericson Development Gompany of a timetable for construction once negotiations are finalized. He further stated that the Redevelopment Commission had approved the preliminary project boundary amendment, which will encompass the proposed shopping center area, and recommended similar action by the Agency. He further advised that Planning Commision Resolution No. 6062, dated December 23, 1974, had approved the proposed survey area expansion; and that the proprosed project area would qualify for redevelopment under the laws' definition, which includes structural, environmental and economic blight, because it does not mean that the entire area must be blighted. The Executive Director was authorized to commence study of the Delhi Area as a possible redevelopment project area on motion of Commissioner Ward, seconded by Commissioner Griset and carried (5-1) with Com- missioner Markel dissenting. DELHI AREA PROJECT PROPOSAL Prior to the vote on the motion, the Executive Director stated that Delhi is an area that has need for parks and movement of the City Corporation Yard; that the Sears warehouse and the new Edison Company substation will generate immediately one million dollars worth of tax increment bonds. Commissioner Bri~ken expressed his concern with the philosophy of venturing beyond the original concept of redevelopment and the geographical center of the area, which exempted as much of the housing as possible and concentrated essentially on the redevelopment of the deteriorated business area. -2- . ~ . . " MINUTES COMMUNITY REDEVELOPMENT AGENCY January 8,1975 Commissioner Garthe stated that the only advantage, in his opinion, is the fact that the bonds will provide for general improvement but that the income will take away from the City's operation as far as taxes are concerned. The Executive Director stated that the total cost for the study is estimated at $56,000, to be advanced by the City, with $20,000 going for the consultant planning study and the balance for Building Department staff time; and that a decision could be made, at some point prior to expenditure of the total $56,000, to con- tinue or discontinue the study. Commissioner Ward requested a preliminary report that would indicate reasons for the selection of one area rather than another for improvement, and reasons for the types of improve- ments proposed. Commissioner Gr~set expressed his concern with blighted industrial areas and suggested that some attention be given to them. Com- missioner Bricken concurred that the right focus would achieve a better balance of objectives to serve two or three purposes rather than one. Commissioner Bricken moved that the Executive Director consider the feasibility'of phasing the expenditure of funds for the approved study so that a report can be generated, as appropriate, when there is enough information to determine whether or not it is advisable to proceed further. The motion was seconded by Commissioner Ward and carried unanimously (6-0). The Executive Director stated that the Ralph C. Sutro Company represents a lender who has pre- liminarilyexpressed interest in lending the Agency 100 million dollars for a 20-year period at an interest rate of under 8 percent; that there would be no annual payments and the money would be repaid in one pay- ment at the end of 20 years; that the funds could be used for any development purposes as long as they are secured either by a mortgage or tax increment; and that the money was immediately available. RALPH C. SUTRO COMPANY FUNDING PROPOSAL Mr. Goblirsch further stated that there are some risks; namely, the interest would be compounded which means that if 100 million dollars was borrowed at 9 percent (including points, fees, etc.) the Agency would be obligated to repay 514 million dollars; that the advantages to the Agency would be tremendous because it would be possible to lend developers short and long term dollars and the downtown program could be tremendously accelerated. The Executive Dir~ctor was authorized to proceed with negotiations with Ralph C. Sutro Company as a source of funding for the Agency, on the unanimously approved motion of Commissioner Griset, seconded by Commissioner Ward. The Executive Director reported that the property located on the southwest corner of Main Street and Santa Ana Boulevard (A.P. No. 8-057-03) and the property on the north side of 5th Street and East of Ross Street (A.P. No. 8-051-16) have been acquired by the Agency; and that the Redevelopment Commission will be making recommendations to the Agency regarding their disposition. PROPERTY ACQUIRED -3- . ~ - . " . MINUTES COMMUNITY REDEVELOPMENT AGENCY January 8, 1975 EXECUTIVE SESSION PERSONNEL MATTERS The Agency recessed for an Executive Session at 5:20 P.M., to discuss personnel matters and members present. reconvened at 5:35 P.M., with the same ADJOURNMENT The meeting was adjourned at 5: 35 P.M., on the unanimously approved motion of Commissioner Ward, seconded by Commissioner Garthe. ~ Chairman ~~É lli~ Recording Secretary -4-