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HomeMy WebLinkAbout10/06/1980 . MINUTES ADJOURNED REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA OCTOBER 6, 1980 The Adjourned Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Robert Luxembourger at 2:31 P.M. in the City Council Chambers, 22 Civic Center Plaza', Santa Anal, Cal ifornia. Af ter the pledge to the Flag and the Invoca tion given by Mr. Bricken, roll was called: PRESENT ABSENT Robert Luxembourger Al Serra to Gordon Br icken J. Odgen Markel James Ward Harry Yamamoto Daniel Griset Others in Attendance: . David N. Ream, Executive Director Greg Walker, Associate Real Property A. J. Wilson, City Manager Edward J. Cooper, City Attorney Laura Garcia', Secretary Agent PUBLIC HEARING TO ADOPT RESOLUTION DIRECTING CONDEMNATION OF PROPERTY WITHIN THE DOWNTOWN PARKING GARAGE SITE Cha irman Luxembourger announced tha t th is was the time and place for the public hearing as continued from September 19, 1980 on the issue of the public necessity to acquire by condemnation property known as Assessor Parcel 008-126-10, for Redevelopment purposes. . Chairman Luxembourger requested that Staff identify the property or issues and give Staff recommendations. Mr. Greg Walker, Associate Real Property Agentl, reported that the site is loca ted on the Wes t s ide of Ma in Stree t be tween Third and Fourth Streets in Santa Anal, California. The property has a frontage of 40 feet with a depth of 125 feet with its north boundary being the south right-of-way line of existing east-west alley. The property contains 9,000 square feet and is a vacant lot improved with asphaltic concrete and used by Lloyds Bank for parking purposes. The public interest and necessity require the property for the following reasons: 1. On recommendation of the Redevelopment Commission, the Agency approved the Keyser Mars ton feas ibil i ty report and financing for the proposed parking structure on February 20, 1979. The report and financing proposal were also accepted by the City Council on March 12, 1979. It was determined at said meetings that the construction of a parking structure was an essential element of a comprehensive revitalization program for downtown San ta Ana and would grea tly enhance the long term economic growth of the downtown area. . . . . . 2. The Redevelopmen t Agency at its Mee ting of May 8, 1979, adopted Resolution 79-24 authorizing the appraisal of property required for the Downtown Parking Garage. 3. The Agencý, at its Meeting of August 20, 1979, made the selec tion of the Arch i tec t/Eng ineer for the Downtown Parking Garage. 4. The Agencý, at its Meeting of September 17, 1979, authorized staff to proceed with the acquisition of the property required for the Downtown Parking Garage. The least private injury is demonstrated by the fact the property is currently paved with asphalt and used parking lot. The property is owned by Lloyds California and is used by them for parking purposes. ownership interest will receive just compensation for taking of the property. that as a Bank All the The property is necessary following reasons: for the project because of the 1. It was previously determined by the Agency on February 20, 1979, and the City Council on March 12, 1979, after considering the Keyser Marston Report and evidence submitted by the staff and private citizens/, that the location proposed is the optimum location for a proposed parking structure consistent with the demand for parking facilities in the downtown area. 2. The functional design of the parking garage and efficient economical use of property requires the acquisition of the subject parcel. 3. The construction of the parking garage and subsequent use will produce increased shopping and employment for the citizens of Santa Ana. Chairman Luxembourger requested to hear from the public in agreement and disagreement with the condemnation of this property. There being no comments from the public the Chairman asked Staff if there were any further comments. Mr. Greg Walker s ta ted tha t Lloyds Bank Cal ifornia had submitted a letter dated August 29, 1980 and had requested that it be made part of the record of this hearing. He also s ta ted tha t the Agency legal counsel had prepared a responsive reply dated September 10, 1980 and members of the Agency had heretofore been handed a copy of these letters/, as well as the Clerk and the Secre tary and, thereforé, requested that said letters be received, filed and made a part of these proceedings (copies of these letters are attached as an official part of the Minutes). Thereforé, a motion was made by Chairman Luxembourger and unanimously approved that the said two letters be entered into these proceedings. There being no further comments/, Chairman Luxembourger closed the public hearing and asked Agency members if they had any questions of the Staff or of those who had commented? Mr. Ward questioned Staff asking when would the plans of the Parking Garage be available. The Executive Directoti, s ta ted tha t he could see them wi thin 10 minu tes. Chairman Luxembourger stated that he would hold Mr. Ward's reques t to allow Staff to secure the plans. Therefore the Chairman entertained a motion for a recess. z. -2- . . . . RECESS At 2:40 P.M.', the Chairman recessed the meeting. At 2:50 P.M.I, the meeting was reconvened with the same members present. At that time, the Chairman called the adjourned regular meeting of the Agency to order. Chairman Luxembourger asked Staff if they wished to comment. Mr. Ream stated that the plans showed both the Garage and the Alley. Mr. Ward stated that he found it very difficult to understand what this parcel had to do with the Parking Garage. Chairman Luxembourger then asked if any other members of the Agency would like to comment on the plans. Mr. Markel questioned why the Agency would condemn property just to build a garage. After further discussion a motion was made by Mr. Bricken and seconded by Mr. Serrato to Adopt Resolution 80-101: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE DOWNTOWN PARKING GARAGE SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. After further discussion a motion was made by Mr. Ward and seconded by Chairman Luxembourger to continue the public hearing until the next regularly scheduled meeting of the Agency and carried by the following roll call vote: AYES: NOES: ABSENT: ABSTAINED: Luxembourger, Serratd, Yamamotd, Ward Br ickeri, Markel Griset None Chariman Luxembourger stated supersede the first motion. this motion that would PUBLIC HEARING TO ADOPT RESOLUTION DIRECTING CONDEMNATION OF PROPERTY WITHIN THE DOWNTOWN PARKING GARAGE SITE Chairman Luxembourger announced that this was the time and place for the public hearing as continued from September 19, 1980 on the issue of the public necessity to acquire by condemnation property known as Assessor Parcel 008-126-09, for Redevelopment purposes. Cha irman Luxembourger reques ted Staff to iden tify the property or issues and give Staff recommendations. Mr. Greg Walker, Associate Real Property Agentl, reported that the site is loca ted a t the Nor theas t corner of Th ird and Sycamore Streets. The property has a frontage of 100 feet on Sycamore Street and 125 feet on Third Street. The property contains 1~,750 square feet and is a vacant lot improved with asphaltic concrete and leased to Lloyds Bank for parking purposes. The public interest and necessity require the property for the following reasons: 1. On recommendation of the Redevelopment Commissiori, the Agency approved the Keyser Mars ton feas ibil i ty report and financing for the proposed parking structure on Febraury 20, 1979. The report and financing proposal were also accepted by the City Council on March 12, 1979. It was determined at said meetings that the construction of a parking structure was an essential element of a comprehensive revitalization program for downtown San ta Ana and would grea tly enhance the long term economic growth of the downtown area. 3 -3- . . . . 2. The Redevelopment Agency at its Meeting of May 8, 1979, adopted Resolution 79-24 authorizing the appraisal of property required for the Downtown Parking Garage. 3. The Agencý, at its Mee ting of Augus t 20, 1979, made the selection of the Architect/Engineer for the Downtown Parking Garage. 4. The Agencý, at its Meeting of September lJ, 1979, authorized staff to proceed with the acquisition of the property required for the Downtown Parking Garage. The least private injury is demonstrated by the fact that the property is currently paved with asphalt and used as a parking lot. The property is owned by Fairhaven Memorial ParM, Inc.!, and leased to Lloyds Bank California for parking purposes. Fa irhaven Memor ial Park Inc .1, has agreed to the sale of the property at the appraised value provided the Agency take subject to the existing Lease with Lloyds Bank California for parking purposes. Our negotiations with Lloyds Bank will provide substitute parking during the period of construction of the Downtown Parking Garage. All ownerships wil], therefore, receive just compensation for the taking of their property or their interest therein. The property is necessary following reasons: for the project because of the 1. It was previously determined by the Agency on February 20, 1979, and the City Council on March 12, 1979, after considering the Keyser Marston Report and evidence submitted by the staff and private citizens', that the location proposed is the optimum location for a proposed parking structure consistent with the demand for parking facilities in the downtown area. 2. The functional design of the parking garage and efficient economical use of property requires the acquisition of the subject parcel. 3. The cons truction of the parking garage and subsequent use will produce increased shopping and employment for the citizens of Santa Ana. Chairman Luxembourger requested to hear from the public in agreement and disagreement with the condemnation of this property. There being no comments from the publid, the Chairman asked Staff if there were any further comments. Mr. Greg Walker s ta ted tha t Lloyds Bank Cal ifornia had submitted a letter dated August 29, 1980 and had requested that it be made part of the record of this hearing. He also s ta ted tha t the Agency legal couns el had prepared a responsive reply dated September 10, 1980 and members of the Agency had heretofore been handed a copy of these letters', as well as the Clerk and the Secretary and, therefore, requested that said letters be received, filed and made a part of these proceedings (copies of these letters are attached as an official part of the Minutes). Therefore, a motion was made by Chairman Luxembourger and unanimously approved that the said two letters be entered into these proceedings. 1- -4- . . . . After a very lengthy discussion a motion was made by Mr. Ward, seconded by Mr. Bricken to adopt Resolution 80-102: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE DOWNTOWN PARKING GARAGE SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR, and carried by the following roll call vote: AYES: NOES: ABSENT: ABSTAINED: Serratd, Bricked, Ward, Luxembourger Yamamotd, Markel Griset None This motion failed because it requires a 2/3 affirmative vote on condemnation matters. Therefore, a motion was made by Mr. Ward, seconded by Mr. Serrato and carried unanimously to continue the public hearing to the next regularly scheduled meeting of the Agency. CONSENT CALENDAR STAFF RECOMMENDATIONS APPROVED On the unanimously approved 6:0 motion of Mr. Bricked, seconded by Mr. Ward, the Agency approved the recommendations of Staff on the following consent calendar items: MINUTES Approved the Minutes September 15, 1980. of the Regular Meeting held on BIENNIAL PUBLIC HEARING Authorized Staff to notice a public hearing on November 17, 1980 which is legally required prior to conducting a public hearing for the purpose of reviewing the Redevelopment Plan. DISPOSITION AND DEVELOPMENT HISTORIC RESTORATION AGREEMENT WITH Authorized Staff to notice a public hearing on November 17, 1980 which is legally required prior to entering into a Disposition and Development Agreement to convey land to a developer. FUTURE OF THE PROJECT AREA COMMITTEE Approved disband. the request of the Project Area Committee to * * * * * * * * * CONSENT CALENDAR FINIS * * * * * * * * * * AGREEMENT FOR LEGAL SERVICES A motion was made by Mr. Bricked, seconded by and carried unanimously to adopt Resolution RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF SANTA ANA AUTHORIZING THE CHAIRMAN TO AGREEMENT FOR LEGAL SERVICES BETWEEN THE AGENCY KANE, BALLMER AND BERKMAN. Mr. Serra to 80-109: A OF THE CITY EXECUTE AN AND WEISER, MAJOR COMMERCIAL REHABILITATION LOAN PROGRAM NOTE SALE A motion was made by Mr. Bricked, seconded by Mr. Ward and carried unanimously to adopt Resolution 80-110: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE SALE OF A $],000,000 PROMISSORY NOTE TO WELLS FARGO BANK, PURSUANT TO THE MAJOR COMMERCIAL REHABILITATION LOAN PROGRAM. 5* -5- . . . . ORAL COMMUNICATIONS Chairman Luxembourger asked Agency Staff if they had anything under oral communications. There being no oral communica tions', the Cha irman called upon Mr. Dav id will iams of the Santa Ana City Center Association. Mr. Williams gave a brief presentation on what the Street Faire was about and invited everybody to be there. He ou t1 ined some of the events tha t would be happening there. The Faire opens on Fridaý, October 10, 1980 at 11:00 A.M. til Sundaý, October 12, 1980 at 7:00 P.M. The Faire will be opened all three days from 11:00 A.M.r, to 7:00 P.M. There will be Opening Ceremonies on Fridaý, October la, 1980 at 12:00 P.M. in the Old Orange County Courthouse. ADJOURNMENT There being no further business before the Community Redevelopment Agencý, the meeting was adjourned at 3: 30 P.M. to the next regularly scheduled meeting in the City Council Chambers. ~~~- Davld N. Ream, Executive Director G, -6- '. I~~ Lloyds Bank Califorrua 612South Aowe' SI,.et . Los Angeles, California 90017 . (213) 613,2909 August 29, 1980 .' ,-"'-"~ ...<."\!\lrITy ,,"- r~'.," "---"(:0' I' (' " ' >-- -- , <"'\. I è / ",/~ \, ! (, ,,' \ (" \ I <.;/ \'0 \ I c.' ! \:;; I i~':\ S[P3 1980 i~ ~-,'~' /'-1/ '> - /"- .J- ., //" '1<, . ,'>¡ oS ~,' /IIVTA ANt-. )-~ . MARK D. BREAKSTONE Co""~1 David N. Ream Executive Director Community Redevelopment City of Santa Ana 20 Civic Center Plaza Santa Ana, Ca. 92701 Agency Re: Lloyds Bank California Dear Mr. Ream: . Enclosed please find a copy of a letter addressing the intention of the Community Redevelopment Agency of the City of Santa Ana to adopt resolutions of necessity to acquire r~~.Lp~~ertY)?Y3rn.i~~1:.....9:~J!I<;~~ _fIt i's-ie-qu~~ted Hiat'-s'uéhJ ta'-.le.t.,terbe read.,1.nto, tl}~o :L~corg..at the heanng ":~Æ,..lli=)'ß..J rpë)n~~dopt-,i,(m ~~,~~ch r=_s~t!-£~.~.:r-~' .~- -- . ~"""----- Very truly yours, // ~ ( J. ¡JHdl- Mark D. Breakstone cC- E cI C ceJH; I" J'. ' / }-:j'CI" .JI {:I/I" I" J c;1"/???TI en . MDB/rd cc: Nicholas M. soccio Vice President Bank Proper~ies Department 7 .-~ '0' ,"nc)fW()rld,~'ide'~,' "i ),I\¡~,:,kr;r"'lJp ~ Lloyds Bank California 612 South F1ower Street. Los Angeles, California 90017 . (213) 6IJ,2909 . MARK D, BREAKSTONE Co....' August 29, 1980 David N. Ream Executive Director Community Redevelopment City of Santa Ana 20 Civic Center Plaza Santa Ana, Ca. 92701 Agency Re: Lloyds Bank California Dear Mr. Ream: . This letter is in response to the two documents each dated August 28, 1980 and entitled "Notice of Intention of the Community Redevelopment Agency of the City of Santa Ana to Adopt a Resolution of Necessity to Acquire Real Property by Eminent Domain", which were received by me on August 29, 1980. Such notices pertain to the proposed acquisition of the Bank's fee interest in Assessor Parcel No. 008-126-10 and of the Bank's leasehold estate in Assessor Parcel No. 008-126-09. . The notices state that the Agency intends to adopt resolutions declaring requiring the necessity of acquiring the Bank's interests in such properties by eminent domain ~or redevelopment purposes at 1 p.m. on September 15, 1980. This letter is to request hearings on the adoption of such resolutions and to respond to certain matters pertaining to the proposed acquisition of such property interest to be used in eminent domain. Such responses shall not waive the right of t~e Bank to appear at such public hearings although it is specifically requested that this letter be read into the record of such public hearings. The Bank is in receipt of a letter dated August 20, 1980 which purports to be a final offer by the Agency for the purchase of the Bank's fee interest in Assessor Parcel No. 008-126-10. The Bank has received no offer with respect to the purchase of the Bank's leasehold interest in Assessor Parcel No. 008-126-09. The purported final offer for the acquisition of Assessor Parcel No. 008-126-10 is not, in fact, the Agency's final offer with respect to the acquisition f Member of World-wide ~ Lloyds Bank Group . . . Mr. David N. Ream August 29,1980 Page 2 of the Bank's fee interest in said parcel and the Bank's leasehold interest in Assessor Parcel No. 008-126-09. (In addition, the Agency is presently named as a defendant in an eminent domain proceeding with respect to the acquisition of a certain parcel of real property known as Assessor Parcel No. 008-126-08 in which the Bank has a leasehold interest.) Representatives of the Bank and representativ~s of the Agency have been in contact since March 26, 1980 with~espect to reaching an agreement for the acquisition by the Agency of the above-referenced parcels which the Bank owns or has a leasehold interest. As a result of such meetings, the parties reached an agreement in principle on August 11, 1980 with respect to this matter. Such agreement is embodied in a letter dated August 27, 1980, addressed to Mr. David N. Ream. A copy of such letter is enclosed and it is requested that the Agency act to approve the conditions set forth therein in lieu of proceeding on the adoption of resolutions declaring the necessity of acquiring the Bank's interest in such real property by eminent domain. The Bank has sought to work with the Agency towards the Agency's intention of constructing the Downtown Parking Structure on properties which include the properties owned and leased by the Bank. The Bank has done so despite a lack of progress toward obtaining bids on the construction of the Downtown Parking Structure and of formulating and establishing the assessment district with 'respect to the construction, maintena~ce and operations of the Downtown Parking Structure. The Bank, as a proper~y holder in the redevelopment project, is extremely interested in the successful redevelopment of Downtown Santa Ana and in the construction of the Downtown Parking Structure. Nevertheless, the Bank needs to be assured that the construction of such parking structure will commence in a propitious and timely manner which will not unduly hinder the Bank's business activities at its present location at Fourth and Main streets and in the leasing of space in such building. The operations of the Bank and leasing space in the building are dependent upon the availability of convenient and safe parking within in the immediate vicinity of the building. The Bank's agreement in the enclosed letter reflect such concerns. Cf .. . '. ,.. . . . Mr. David N. Ream August 29, 1980 Page 3 The receipt by the Bank of the notices for this proceeding and other actions taken by the Agency's representatives appear to be a deferment of negotiations for the purpose of coercing the Bank into an agreement with the Agency based upon the Agency's price and conditions. Such coercive activity is prohibited under Section 7267.5 of the California Government Code. It should be noted that the Bank will bear a l~rge percentage of the assessments to be made against property owners who will be using the Downtown Parking structure. As of this Date, no bids have been obtained for the construction of the Downtown Parking Structure and no data has been obtained with respect to the formulation and establishment of the assessment district. Nevertheless, in a spirit of cooperation, the Bank has proceeded to negotiate in good faith and to reach the agreement set forth in the enclosed letter. The Bank intends to continue operating in good faith and hopes that the Agency will respond in a like manner. Very truly yours, (/~ f Iih£~ Mark D. Breakstone MDB/rd cc: Nicholas M. Soccio Vice President Bank Properties Department /0 . ~ ~. ~. i e. ,. --~ ~. .\' '.,' .~; ~; ,ÿ ¡;" "-'7'.,<",i; .1,.1, . ',"" I . ,'- (~.".' SEr 17 'oR ";~~ \ '.,: - '~uO j~:' \';' , ".' /~-..; \ t,; " /' ,) / ,~ ' . . / . :'> 'I,; 1;; - ÃÎ~t: ):j' " .. ~ 5ept.c¡"bl:r 10, 1980 t,:¡u'k Ii.' Brcab;tone, LSq. Lloyds Bank California G12 South Flower ~treet Los Angeles, Cä1i[ornia 90017 He: Llpyds 3ank California " Dear t:r. Drea;;st.ohC: In rcspo~se to your letter of Au~ust 29,1960, we snall honor your r~guest thbl the lcttl:r be placed in the rc;cord of the public hearing on the resolution of necessity. ( i'rocc",éin'j ','ith the rE:solution of necessity should not Le view?d by the r;¡,nk as a deferment of negotiations \lith rE:spect to acquisition of the parcels in question, since \Ie are constantly negotiating in such ~att~rs ~ntil the tilac of trial in an eJ:lÌnent domai.n lawsuit. . rurther~ore, contrary to your assertion, proceeding with the , steDs r.,ouired for an e¡úÌnent ðO¡¡¡Ðin case is not .coercive. . activity.within the meaning of GovernMent CoJe S~ction :- 72G7,5, but is necessary to rùúintain the til.\c table of events [or construction of the garage. he òeter¡;iÌno:d that such steps were necessary in oròer to acquire the fee interest in parcels 003-126-09, 000-12G-OC and 000-126-10. Our deterr..ir.ation Wi!S based, in part, on your rejection of our proposal in your letter of July 24, 1980. \\ with respect to your letter of August ¿7, 1980, we are in a pesi tion to recoró1lHo:nd approval to the Agency of most of the items r:,entioned, since they are essentially the same terws we proposed to the Bank as a solu~ion during our i'o¡eeting on "arch 26, 19<;0. Your letter of July 24, 19ßO rej.ccted that pro¡>osal, \Ihich led us to bel icve other steps \:ould be required. , . r.. . . ,. II . ~ ~. ~ ìf e. 12. ~Ir. nrea)~!; tone Llo~ç1s Dank ~ptcmùcr 10,19&0 p(ge two PropoGal liumber 5 in ~'our letter of Auguat 27, 1980 still presents a problem for the Agency. First, ",e are not agreeable to attaching plans and specifications for the -Downtown Parking Ctructure8 to this a',¡reer.,ent. Second, with respect to cxcluzive use of ccrt~in spaces in a public garage created by an assessJ;¡cnt di:>trict, you are undoubtedly a\~are of certain legal constraints. \'ie have contócteè bond counsel (or the as¡¡eS¡¡:;¡ent district v¡ho i1ùvises ,that any prccouur,itlUcnt will present severe probler,:s in fdrr.,ation of the district. This issue was discussed at our meeting of ~arch 26,1980, and you were advised about this potential proble~. \\e reco::;¡¡,end that a r.""eting be hEld to discuss and resolve this issue. Pleas~" fE'e! free to call if theL'c are any questions. EJC:ar Very truly yours, ( ED~hnD J. COOPER 1-.gency Legal Counsel Torn Uai.:.!;.!ll cc: \-:-. " " " r- , l - . . .