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HomeMy WebLinkAbout07/18/1983 ,. " . . . MINUTES SPECIAL MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA JULY 18, 1983 The Special Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Luxembourger at 9:07 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 Reverend Bernard Wethington, roll was called: PRESENT ABSENT Daniel Griset P. Lee Johnson Patricia McGuigan Robert Luxembourger Dan young John Acosta Gordon Bricken Others in Attendance: A. J. Wilson, City Manager Rex Swanson, Executive Director Edward J. Cooper, City Attorney Thomas E. Hammill, Assistant Director & Real Estate Laura Juarez, Secretary Redevelopment CONSENT CALENDAR STAFF RECOMMENDATIONS APPROVED On the unanimously approved 5:0 motion of Vice Chairman Griset, seconded by Mr. Johnson, the Agency approved the recommendations of Staff on the following consent calendar items: MINUTES Approved Minutes of Adjourned Regular Meeting held on June 20, 1983, and Regular Meeting held on June 21, 1983. FIRST AMENDMENT TO THE MANAGEMENT AGREEMENT DATED APRIL 20, 1981 - OCTD PARKING GARAGE AT BROADWAY AND FIFTH STREET Approved an amendment to the Management Agreement dated April 20,1981 between the Agency and Systems Parking, Inc. for the management of the OCTD Parking Garage structure. .' . . . ACCEPTANCE OF CITY-OWNED SURPLUS PROPERTY/SOLICIT PROPOSALS - WEST RESERVOIR SITE AT FIRST AND SHANNON STREETS 1. Accepted the conveyance of the West Reservoir development site from the City for the consider- ation of $1,235,000 to be paid upon resale of the property by Agency; and authorized the Chairman and Executive Director to execute all necessary documents for acceptance of title. 2. Authorized staff to solicit proposals for the residential development of the West Reservoir site. * * * * * * * * * CONSENT CALENDAR FINIS * * * * * * * * * * GRIEVANCE FOR ADDITIONAL RELOCATION FURNITURE, INC. - SECOND AND BROADWAY ASSISTANCE - GREEN'S The City Manager requested that all the material included in the agenda packet on this subject be included in the Minutes as a part of the official record. The Chairman then asked if anyone representing Green's Furniture wished to address the Agency. There being none, a motion was made by Vice Chairman Griset, seconded by Mr. Young and carried unanimously to deny the appeal of Green's Furniture, Inc. to receive additional relocation assistance. RECESS At 9:11 P.M., the Chairman recessed the meeting. At 10:15 P.M., the meeting was reconvened with the same members present. EXECUTIVE SESSION At 10:16 P.M., the Redevelopment Agency adjourned to an Executive Session to discuss legal matters. The meeting was reconvened at 11:15 P.M., with the same members present. ADJOURNMENT There being Redevelopment P.M. no further business Agency, the meeting before the Community was adjourned at 11:16 ~x~ Executive Director /~-~ Roberb uxembourger Chairman 1... , REQUEST FOR aGENCY ACTION @ 4IJE July 7, 1983 TITLE GRIEVANCE FOR ADDITIONAL RELOCATION ASSISTANCE ~ GREEN'S FURNITURE, INC. DATE OF AGENCY ACTION SECOND AND 9ROADWAY Deny the appeal of Green's Furniture, Inc. to receive additional relocation assistance. 4liMMISSION RECOMMENDATION Recommend denial of the appeal of Green's Furniture to receive addi- tional funds for relocation assistance. . On A gust 3,1982, the Redevelopment Agency received a claim for $237,70 for additional relocation assistance compensation from attor ey Richard L. Riemer II, representing Green's P~rniture, Inc., located in the Grand Central Building at Second and , Broadway. Mr. William Greenberg, owner of Green's Furniture, Inc., received relo- cation enti.t1ements in the total amount of $6,700. '1'his payment covered a move consolidating his operation from the Grand Central Building into his adjoining leased building. The commercial and residential tenants in the Grand Central Building received reloca- tion assistance because a portion of the funds for rehabilitation were provided through the Federal 312 loan program administered by the Department of Housing and Urban Development. Twenty-nine resi- dents and two businesses, including Green's Furniture, received relocation payments. The essence of Mr. Greenberg's c1aim is that he did not receive a1.l of his entitlements. However, his claim was not supported by any documentation. We have recommended the denial of the claim based upon the relocation guidelines under the 312 loan program published in HUD Handbook No. 1376.1. ~ :3 3-~.-¥ J:1A MEMORANDUM ~ ' Assistant City Manager/ To: Development Services ~ .m: Community Development Director '=',"' Sled: GRIEVANCE FOR ADDITIONAL RELOCATION ASSISTANCE- INC. - SECOND AND BROADWAY . . . . Date: July 7, 1983 GREEN'S FURNITURE, Statement of the Issue On August 3,1982, the Redevelopment Agency received a claim for $237,170 for additional relocation assistance from attorney Richard L. Riemer II, representing Green's Furniture, Inc., located in the Grand Central Building at Second and Broadway. A copy of this claim is attached as Exhibit "A" for your review. A map depicting the location of the claimant's business is attached as Exhibit "B" . Mr. Riemer, on behalf of his client, Green's Furniture, Inc., is claiming additional relocation assistance caused by his voluntary move from the Grand Central Building in 1981 because of its reha- bilitation. The commercial and residential tenants in the building received relocation assistance because a portion of the funds for the rehabilitation were provided through a Federal HUD 312 program. Twenty-nine residents and two businesses received relocation payments, including Green's Furniture, Inc. The Agency first notified Mr. William Greenberg that a portion of the property he leases as Green's Furniture Store was to be reha- bilitated under the Federal 312 loan program on September 27, 1979. By virtue of the Relocation Guidelines under the 312 loan program published in HUD Handbook NO. 1376.1 S and subsequently revised under Change Order No.2 dated May 27,1980, staff deter- mined that Mr. Greenberg may qualify for certain moving expenses covering the personal property which would have to be relocated as a result of the proposed building rehabilitation. The relocation of the personal property consisted of disconnecting, dismantling and reconnecting various shelving and advertising signs, as well as moving miscellaneous items from one area within the furniture store to another area. Mr. William Greenberg, on behalf total of $6,700.00 for the costs of their business from the Grand signed acceptance of this amount 18,1981, is attached as Exhibit of Green's Furniture, received a incurred in relocating a portion Central Building. A copy of his as payment in full, dated February "C" for information purposes. The costs of installation of machinery and equipment and altera- tions that Mr. Riemer claims reimbursement for were paid to Mr. Greenberg as part of the move of the furniture store. In order to qualify for a loss of personal property, it is necessary to obtain an in-place value appraisal of the property involved, obtain a moving bid for the property involved, and finally make an attempt to sell the items involved. In any event, the total amount of the A.'+ 4 SA . . . . payment under this provision may not exceed the cost of the move. The items set forth under this portion of the claim appear to be improvements to the realty, with the exception of signs (and a payment was allowed for a sign) and displays. The displays, no doubt, were considered under moving or they may also be of a more permanent nature and become an improvement to the realty. The loss of personal property and theft loss is not an allowable ex- pense under the governing Federal regulations. The storage of personal property is not an allowable expense unless the Agency determines it to be necessary. Furthermore, no detailed expla- nation of the items claimed nor any documentation of the expenses incurred has been provided. In all instances of Agency staff denial of reimbursements as re- quested by the claimant, HOD Guidelines for Relocation Assistance were used as justification for said denials. In fact, in order to ensure that Mr. Greenberg received the proper relocation assistance, we had our original findings reviewed by one of the leading reloca- tion consultants, Port & Flor, Inc., who were in accord with our findings. The Redevelopment Commission, at its meeting of July 5,1983, reviewed the claim and voted unanimously to deny the claim of Green's Furniture, Inc. Mr. Riemer, attorney for Green's Furni- ture, Inc., was advised of the time and place of the hearing, but declined to attend. A copy of the minutes of the Commission meet- ing, as they relate to the Greenberg claim, is attached as Exhibit "D" for rev iew. Alternatives Considered Not applicable. Recommended Solution In view of the above information, it is respectfully requested that the Redevelopment Agency deny the appeal of Green's Furniture, Inc. to receive additional funds for relocation assistance. If you have any questions regarding this matter, please let me know as soon as possible. . ;;-Ø ~ø ~ David N. Ream . DNR/TEH/sc Attachments A-s '5 3A i. 12, move required approximately 500 man hours at an average of $5.00 I: .e ~W! H 13 '. per hour or $2500.00. i : 14 ' ~È : rnitted to the Agency and has already been paid. h a ~ 115, II. INSTALLATION OF MACHINER~' A!\D EQl"IPMr!\T A~D ALTERATIOI\S TO ~ C8 :" 16 ' REPLACEMENT SITE: ~~ : 17 ~ Guidelines Section 6090 (b) (1) (a) provides that the Claim-¡ 18' ant is to be reimbursed for the cost of alterations required to : . . 19 : I I .20 ! .21 I I .22 ¡. 23, ,,24 t 25 1 2 RELOCATIOI\ ASSISTÞ~CE CLAIM GREEI\'S FURI\ITURE,INC. :5; I 4 ¡ I. S! 0 MOVING EXPENSE: GREE~'S FURNITUP~, INC., the claimant herein and hereafter: 6' referred to as GREEN'S, is entitled to payment for its' actual , 7, reasonable moving expenses' pursuant to the California Relocation 8: Assistance and Real Property Guidelines, Section 6090 (b) and (e) 9' 10 (hereinafter all references to sections are to said Guidelines un- less designated otherwise.) 11 In the instant case, claimant performed a self-move. Saie: A bill for said monies ~as previously sub- render the replacement site suitable for its business use. In addition, Section 6090 (b) (1) (a) and 6090 (a) (6) requires reimburs-¡ ment for the' disconnecting, dismantling, removing, reasse~lin9, I reconnecting and reinstalling (of) machinery, equipment o~ other I personal property.' , Claimant reinstalled shelvinç: installed wall storage brackets: installed storage racks: reinstalled and reconnected 26 ; light fixtures: disconnected, reconnected, and reinstalled a TRW . 27 ¡ machine and a tèlacredit .acþine; disconnected, removed, reconnect- 28 ed and reinstalled time clock, disconnected, removed, reconnected BXHIBIT -A- 11-<0 ~ 3A . . 1 " 21 and reinEtalled si~ns; and disconnecteñ, and reconnected the tele- 3, phone and interco~ system. The cost for saið work ~as S 3125.00. 4 : III. ! 5: LOSS OF PERSONAL PROPERTY: 6/, business to compensate for losses of personal property ca~seè by ., the move. Claitr,al:t herein lost signs, walls, ðisplays, decking, S ¡ raised floorina, light fixtures, carpeting, and similar ite:-.s. I 9 , Said ite~s had a value in place in excess of $230,000.09 an~ a sel- ,¡ 10!' vage value of approximately $7500.00. Guidelines Section 6092 provides for paytrent to èisp1aced ' 11: i!. 121: notifyinç' creè!itors of the move, etc. totalinÇl in excess of $531.00.. ~ :: j' ,,' H I! :: II.~ IV. THEFT LOSS: .:iE ), ,15 placed b;;siness the reaso:r.able replacement val!;e of pro;>erty 10Et, ! M.!l! "1"Oleo o. ..~~.... ...ua of ~e ~~, 10 the '.o"n< C'" : 17! claimant suffereñ theft losses and damages totaline in excess of Isl' I: $10,474.00. 19 j V STOR,;GE COSTS: 11 . 20 i Guidelines Section 6090 (al (31 requires payment to the 21 ! ðisplaceè business of reasonable storage costs nece55i tated by the i 22 I move. Claimant herein incurred stora~e char~es having a reasonabl~ 231 value of $540.00 for the storaqe of personal property durin~ the I .. J 'period of the move "'" the .]ter,;Ho.s of to. reolo.....t site. I . 25 VI. 'S~IARY: "1", """~'~"~" '~-' . -.: '=¡:"""" I I In aè~ition, the move necessitated certain eX?e~SeE re Section 6090 (a) (5) provides for the payment to e ëi~- . -. . .' J . ,. <.. 26 GRtEN'S i. entitled to anð claims the followin~ monies: . 27 28 a. moving expens.. b. reinstallation of aachinery paid BXHIBIT "/I." A-? ì 3A 1 . 2, 31 . I " 5 6 7: 8 9 and eguip~ent, and alterations to replacement site $ 3,125.00 . c. loss of personal property d. theft loss , . ..." .' '$223,03].00.:,.., _. -'" -;'. -J $ 10,474.00 ~.-.- ~ e. storage costs $ - .,";¿. 540.00 P~/.: I TOTAL: $237,]70.00 .' ~. ~, 10 11 "- . .1 I I i- 12 ~ :: !. :! ~ 13 i a. - 14 :¡~ I 3- 15 ic!!116 ,i I 17 18 I 19 I 20 I 21 22 23 .8 24 25 26 27 . 28 EXHIBIT. A8 A-g I I 3AI , I 'V" """', ,~",,-_V"-"'-":"'"'V" 26 II~-~r~'!':!~,. - _6,.' ~-... - _,_~'!,EC:__- *..», ,.' ... ..' PARK: : 81 ,,: : 1 I, I, ,,12111 1 I I T;'\ .., 1 ' (;\ I 1 ,~ IH \!J 1 I II r¡!\!J I I , ~ 1 1 I 1 1 I I ! - !"___1!L__~---~-i!~_y..!_J!L _!!6- ~ ~ 'L ;;1- -ï,'- -.r -ït:Ž"- -:8 - 'ï,-- r¡.--~ ""', 1 , , I ' 1 , I I 'I I ' 1 1 I , , I , I ~, ! ! I , ' I ~-_.. , I I II' I à SECONO I I u' ..' 18"" ~ ' ~ ~ 212 . ! 'ø 1 0 It) I 1 ..1 ' . I ..' ..¿ 14 ... ,t' ~, ,- L '¡ FIRST I II I ..' io. I CI I I ~.:, STR£ET ..' i It) 6) ~~ (i" ..' I' ~" ~ 5' I ..' I . I ... I"'~ ~.'I .. I" (!) ..' ... @ 21 . EXHIBIT B L-- " @) . .--- Œ> ,I . S GRAND CENTRAL BUILDING ,N"'" ~ ~ . .'." . GREEN'S FURNITURE I i @ :t: ' ~ i(!): J Q 6 811 I @. : I .. ..' -,! -~ ,.' r ..J..J I II 28 I I I ... .,nr. .. . " f ~LNUT I II I lll/ARCH 1!IiII .. L,A.I-B LA- 1I.§IIf' MM.$- !J ""' TOWN OF SANTA ANA PALMER's ADD, PARK TRACT HENINGER's RESU8, NOlf "SSESSO,. - ----- - ",.cn HUMlEI5 SHOWN IN CIICtfS STR£ET. "& I "$Sf$SOI'S IA» '~98""Gf 27 cc8Y 0# 0IANGf . . . . rebr"ary 18, US, ~ 6. ~C'" :::'. 0;' Cl"Hn Fumftul't 117 N. Bf'OIdwly St. Santa Ana, Ca. '2701 Dear Mr. Cl'ten, In accordance with the Re1ocation guidelines un~r the 312 Loan Program pllbl'shed tn WJD Handbook No. 1376.1 Ind Change No.2 dated ~y 27, 19~', yollr business ts entit1ed to ~vtn9 eKÞt~StS doverfn; the pe"'~nll oroperty f~ the portion Of the store to be vacated to the ~lin1ng portion of the stol't. The gu1deHnes do "ot provide for Iny phys1ca1 tlll'rovlllltnt Ind or pl'tparation of SPiCI in the INI to wMch you 11'1 "1ocaUng. lecauSt of the ltagge",d 8OVI "'at IOU MVI PtQuested, it wi11 be eKtl'tllltly difficult, 1f ROt '~ss'b1e, to lecu" Ptlsonab1e bids for this kind of 8OYt. We esU8lted, Msed upon our discussions with IOu, that the prol'osld 8Dve lIOu1d enta11 t!!!"tt petnMJfOPk1"9 for I per1od of looro (1.te1y jg Wndred ~Jl!'I. B.~st õf ~.OO per .hour.for the thl"H 1!IIP10yees for one ""d"'d flours we have "ached I tota1 of $4,000.00. If this llIIOunt for lOur bus intIS 8Ove 8ttts wi th lOur Ipprova1, we wi11 proceed on the lbOVt basts PCIPUng, Mwvel', thlt it wi11 .. MCtIlary tlllt - lubstantiate JOlir PI)I881s in "'r to P"Oper1y "l'1fy the 1t1f 8Ove IIIOUfIt. Additionally, the Agellcl will pay the IOIt of "1ocating 8M of lOur 11gns which can be 1egll1y "1ocated Ind for W!l1ch 1011 p",sent11 have I bid in the llIOIInt of IPpro (118tt1y $2,100.00 1110 the Agencl w111 "'l1bu"e to IOu the 1l1li of $600.00 f'8peesent1ng the eolt of 8Oring and "'nsta"'ng of lhe1v1Dg. The above "1ocaUon Pl1"Itnts f'8Pl"tsent JOur ._1II1II'1 enUt18111ent under the ...1ocaUon ,u1e1t11.s. If IOu COlIC"" in the lbove 1""ln9l'lt"t, p1t1se tndfcate lOur IcceptanC8 tn the dilÞ1tclte eopy of this 1etter. If IOu have aft.)' _Utstions ór "qu1... further 8Ip11",tiOll, ,1..se contact thh office. S1ncere1y, . 11{\ DlY1d I. .... ConIIIun1b Dt..1011811t D1f'8CWr . lIfmITK/oh -, \ EXHIBIT .C. 3A IT-IO IV