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HomeMy WebLinkAbout11/15/1983 . MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA NOVEMBER 15, 1983 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Luxembourger at 5:55 P.M., in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California. After the Pledge to the Flag and the Invocation given by Chairman Luxembourger, roll was called: PRESENT ABSENT John Acosta Daniel Griset, Vice Chairman P. Lee Johnson patricia McGuigan Robert Luxembourger, Chairman Dan Young Gordon Bricken Others in attendance: . Rex Swanson, Interim City Manager Edward J. Cooper, City Attorney David N. Ream, Interim Deputy City Manager Thomas E. Hammill, Assistant Director Redevelopment and Real Estate Mellmary McNeely, Secretary JOINT PUBLIC HEARING FOR THE PROPOSED SALE BY THE COMMUNITY REDEVELOPMENT AGENCY TO THE CM VENTURE (A-6 SITE/WEST END THEATER) . The Interim Deputy City Manager pointed out that the Redevelopment Agency had granted an Exclusive Right to Negotiate to the CM Venture for the development of the A-6 site and had since negotiated a Disposition and Development Agreement with the developer providing for the rehabilita- tion of the West End Theater building into 8,000 square feet gross of office/retail space, and the construction upon the adjoining vacant property of an office/retail building containing approximately 12,000 square feet gross on three levels. He added that the estimated market value of the rehabilitation and new development improvements would be in excess of $1 million and that the rehabilitation was scheduled to take approximately six months and the new construction approximately one year. He stated that staff felt that this project will be a tremendous asset to downtown Santa Ana and was very proud to offer it to the Agency for consideration. . Chairman Luxembourger invited Mr. Joe Gilmaker, of 308 W. 4th Street, Santa Ana, to address the Agency. Mr. Gilmaker stated that he was not opposed to the proposed sale by the Agency to the CM Venture of the A-6 site but that he had heard that the Agency was considering the closing of Birch Street to provide parking for this development. Mr. Gilmaker said that, in his opinion, this would be a mistake because it would interrupt the circulation of traffic which was necessary for the other businesses in the area. He added that he was also opposed to the closing of the alley. In response to questions from Chairman Luxembourger, the Interim City Manager stated that the proposal to vacate Birch Street to provide additional parking or for any other reason would have to be the subject of another public hearing and was not an issue at this time. He added that the reference Mr. Gilmaker made to parking on Broadway had no bearing on the proposal for the A-6 site. He then asked the Interim Deputy City Manager to comment on the closing of the alley. . The Interim Deputy City Manager stated that the alley was publically dedicated and that, if Birch Street was vacated, an easement for the alleyway would be accommodated in the proposed parking lot as would the ingress and egress for delivery trucks servicing the Keiser buildings. Chairman Luxembourger stated that he felt this problem should be weighed carefully because the alley was very important as an access for the Fire Department and as the location for trash bins for the businesses. Mr. Young then made a motion that the Agency adopt Resolution 83-33 which was seconded by Mr. Griset and carried by a vote of 5:1. Mr. Young had made certain qualifying remarks regarding the vacating of Birch Street while make the motion and Mr. Acosta stated he had taken these remarks to be a part of the motion thus prompting his "No" vote. After further discussion, it was moved by Mrs. McGuigan, seconded by Mr. Young and carried unanimously (6:0) that the previous motion be set aside. . It was then moved by Mr. Young, seconded by Mrs. McGuigan and carried unanimously (6:0) that the Agency adopt Resolution 83-33: A RESOLUTION OF THE COMMUNITY REDEVELOP- MENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY AND THE CM VENTURE. -2- ORAL COMMUNICATION- BUILDING REAL ESTATE AUCTION - GRAND CENTRAL . Mr. Johnson apprised the Agency of the fact that the Grand Central Mall Building (116 N. Sycamore Street), Green's Furniture Building (117 N. Broadway Street) and parking Lot (Northeast corner of 1st Street and Broadway Street), as well as a residence located in Capistrano Beach, California, were being offered at public auction on Sunday, November 30, 1983, by order of the United States Bankruptcy Court, Central District of California. Mr. Johnson said that, in his opinion, since the Community Redevelopment Agency held a secondary loan in the approximate amount of $154,311 on the Grand Central Building, it would be in the Agency's best interest to initiate action to acquire the property before it goes to auction or to stop the sale so that the Agency could buy the property. . Mr. Johnson then moved that the Agency instruct the City Attorney to file the Agency's intent to acquire with the Bankruptcy Court. The motion was seconded by Mr. Acosta and, after a lengthy discussion between members of the Agency, the City Attorney, the Interim City Manager and the Interim Deputy City Manager regarding the propriety of such an action, the motion was defeated by a vote of four Nayes (Griset, McGuigan, Luxembourger and Young) to two Ayes (Johnson and Acosta). At 6:49 P.M. the meeting was recessed so that the City Council could meet in Executive Session. The Agency meeting members present. was resumed at 7:40 P.M. with the same SASSCER PARK PEDESTRIAN BRIDGE . The Interim Deputy City Manager stated that in 1979, the Agency entered into an Owner's participation Agreement with the Heritage Corporation to build a high-rise building at the southeast corner of Santa Ana Boulevard and Parton Street. He added that the Agency included a provision in the agreement that the Agency would use its best faith efforts to effect the development of a pedestrian bridge linking the second level of the building with the Civic City Center Law Library Plaza. He added that staff has negotiated for two years with the Civic Center Authority to get them to commit one-third of the cost of the construction of the pedestrian bridge. He pointed out that the other two-thirds of the cost would come from the developer and the Agency. The Interim Deputy City Manager stated that the Agency now had an agreement with the new purchaser of the building, now known as the Sunwest Building, and that this agreement was to be executed in the name of B.F.I. XV Realty Fund, Limited of the Bretcourt Foundation. He added that -3- . Bretcourt was willing to enter into this agreement and proceed with the construction of the bridge on the understanding that the Agency will complete the construction of the bridge by March 31, 1985, approximately 16 1/2 months from the date of execution. He pointed out that, if the Agency failed to complete the bridge by that date, there would be a penalty of $150 per day until the bridge is complete. He added that Bretcourt was asking for this penalty provision because they felt that the timely construction of the bridge would be necessary to the building and to the marketing program they intended to conduct to obtain tenants. The Interim Deputy City Manager stated that the Public Works Director and the City Engineer felt that the estimated figure of $450,000 for this construction was reasonably accurate. He completed his remarks by saying that this had been a long, difficult negotiation and that staff felt the execution of this agreement would be beneficial to all parties in the negotiations. . After a lengthy discussion in which both Mrs. McGuigan and Mr. Johnson expressed grave doubts concerning the usefulness of the bridge, it was moved by Mr. Griset, seconded by Mr. Young and carried by a vote of 4:2 (Mrs. McGuigan and Mr. Johnson voting "NO") that the Agency authorize the execution of an agreement between the Community Redevelopment Agency of the City of Santa Ana and B.F.I. XV Realty Fund, Limited for the construction of a pedestrian bridge over Santa Ana Boulevard linking the Civic Center Law Library Plaza with the Sunwest Bank Building and Sasscer Park. ACCEPTANCE OF CITY-OWNED SURPLUS PROPERTY/SOLICIT PROPOSALS - LA BONITA SITE AT LA BONITA AND PROGRESSO STREETS It was moved by Mrs. McGuigan, seconded by Mr. Acosta and carried unanimously (6:0) that the Agency: 1. Accept the conveyance of the La Bonita development site from the City for the consideration of $1,085,000, to be paid upon resale of the property by Agency/ and authorize the Chairman and Executive Director to execute all necessary documents for acceptance of title; and 2. Authorize staff to solicit proposals for the residential development of the La Bonita site. . EXECUTION OF A GRANT DEED CONVEYING PROPERTY WITHIN THE A-2 DEVELOPMENT SITE TO BROADWAY IMPROVEMENT COMPANY, INC., A CALIFORNIA CORPORATION -4- . . . It was moved by Mr. Acosta, seconded by Mr. Young and carried unanimously (6:0) that the Agency adopt Resolution No. 83-34: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN TO EXECUTE A GRANT DEED TO BROADWAY IMPROVEMENT COMPANY, INC., A CALIFORNIA CORPORATION. ADJOURNMENT There being no further business to come before the Community Redevelopment Agency, the meeting was adjourned at 7:58 P.M. to December 20,1983 at 5:30 P.M. iil~,"b~ Executive Director -5-