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HomeMy WebLinkAbout06/20/1983 r '. I ~ .' I I . . . I:;,f( MINUTES ADJOURNED REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA JUNE 20,1983 Although the Adjourned Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was noticed for June 20,1983, due to the lateness of the City Council meeting, the Community Redevelopment Agency meeting was called to order by Chairman Luxembourger at 12:15 A.M. on June 21, 1983 in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California. After the Pledge to the Flag and the Invocation given by Vice Chairman Griset, roll was called. PRESENT ABSENT John Acosta Gordon Bricken Daniel Griset P. Lee Johnson Patricia McGuigan Robert Luxembourger Dan Young Others in Attendance: A. J. Wilson, City Manager Rex Swanson, Executive Director Edward J. Cooper, City Attorney David N. Ream, Community Development Director Thomas E. Hammill, Assistant Director Redevelopment & Real Estate Diann Taylor, Secretary PUBLIC HEARING TO ADOPT RESOLUTION DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-I (BIRCHPARK ASSOCIATES) DEVELOPMENT SITE (NORTH ONE-HALF OF SECOND STREET BETWEEN OLIVE AND FLOWER STREETS) Chairman Luxembourger announced that this was the time and place for the public hearing on the issue of the public necessity to acquire by condemnation property described as the north one-half of Second Street between Olive and Flower Streets for redevelopment purposes. . Chairman Luxembourger requested that Staff identify the property and the project and comment on the factors and evidence necessitating the condemnation action. Chairman Luxembourger also requested that staff set forth why the public interest and necessity require the project; why the project is planned or located in the manner that will be most compatible with greatest public good and the least private injury; why" the property sought to be acquired is necessary for the project; and that the offer required by Section 7267.2 of the Government Code has been made to the owners of record. . Mr. Thomas E. Hammill, Assistant Director Redevelopment and Real Estate, reported that the property sought to be acquired by the Agency is the reversionary interest held by the Santa Ana Unified School District in the underlying fee of the north one-half of Second Street between Flower and Olive Streets, Santa Ana, California. The property is a rectangular shaped parcel measuring approximately 25' X 280', more or less, containing 7,000 square feet. The property is improved with an asphalt street, concrete curb, gutter and sidewalk. The property is shown as Second Street on a Map of the Ross Addition to Santa Ana, recorded March 13, 1878 and on a Corrected Map of Blocks, L, M, N, a and P of the Ross Addition to Santa Ana recorded January 13,1902. On February 3,1903, the Santa Ana Unified School District, formerly the Board of Education of the City of Santa Ana, acquired said Block M being the property adjoining and lying northerly of Second Street. Included within the property acquired by the School District was the underlying fee interest in the north one-half of Second Street which the Agency is now seeking to acquire. The public interest and necessity require the project for the following reasons: 1. The Agency adopted a Disposition and Development Agreement with Birchpark Associates on March 15, 1983, for the construction of 199 units of senior citizen Section 8 apartments. The property which the Agency is seeking to acquire is included within the project boundaries contained in the Agreement with Birchpark Associates for redevelop- ment. . 2. Previous testimony and documents provided to the Agency has demonstrated a clear need for senior citizen housing in Santa Ana. 3. The redevelopment of property within the Redevel- opment Project Area serves as an inducement for further redevelopment of surrounding areas. -2- , - .- . . . The property to be acquired is necessary for the project because it is required to conform to the Disposition and Development Agreement with Birchpark Associates previously adopted by the Agency. The project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury as a result of hearings previously held by the Redevelopment Commission, the Planning Commission, the City Council and the Redevelopment Agency. The project will provide senior citizen residential housing for the area and will represent a redevelopment of the property; thereby, generating an increase in employment, additional residential units and tax base for the citizens of Santa Ana. The owners will receive just compensation for the taking of their property. Offers to purchase as required by Section 7267.2 of the Government Code were made to the owners of record on April 19, 1983 and May 25, 1983. The entire block adjoining and northerly of the property, which the Agency is seeking to acquire, is a former school site and is presently leased to the City of Santa Ana by the School District for a term of twenty-five (25) years commencing October 4, 1971. This lease also provides the City an option to purchase the leased site during the lease term at fair value. This demonstrates that the School District has no plan to make any public use of the property in the future. The City is presently using the property for park purposes as Flower Park. As the owner of the adjoining property, the School District possesses a reversionary fee interest in the property sought to be acquired. It is Staff's position that the School District has not devoted its reversionary interest in the property to a public use. However, should the School District later contend that it is devoting its reversionary interest in the property to a public use, then it is Staff's position that the public use for which the property is sought to be taken is a more necessary use than the public use to which the property is presently being appropriated by the School District. This is clearly demonstrated by the fact that when, after the project is completed, the property to be acquired by the Agency will become an integral part of the Birchpark Associates Development. The acquired property will be utilized for parking and landscaping for the senior citizen residential housing project for which there is a demonstrated need in Santa Ana. -3- "" . . . At this time, the Assistant Director Redevelopment & Real Estate introduced Mr. Edward J. Cooper, City Attorney, to address the legal issues involved. The City Attorney then explained the existing laws with regard to eminent domain proceedings. Chairman Luxembourger announced that the Agency would now like to hear from those people who desire to address the Agency on this issue. He added that if anyone desired to address the Agency, they should step forward to the podium, give their name and address and limit their comments to five minutes. Mr. James A. Richards, Board Member of the Santa Ana Unified School District, 1405 French Street, Santa Ana, California addressed the Agency stating that the School Board had received legal advise that the City is not in a legal position to take the action proposed without the majority vote of the School District Board. That although the School Board does not feel that the public interest is going to be served by a legal confrontation, they have chosen to rely on their legal advise and continue in opposition of the Agency's request. Mary Pryer, also a member of the School Board, stated that an appraisal for the property in question had never been presented and that the Board feels that the amount being offered does not take into account the impact on the adjoining property. She also stated that she would like to see the matter continued until a later date so all aspects can be considered. Chairman Luxembourger invited Staff to address the comments made by the two School Board members. The City Manager stated that the City had the property appraised and offered the School District the full amount of the approved appraisal in the amount of $1,000.00. The time frame of the commitment with Birchpark Associates necessitates immediate acquisition of the property. Chairman Luxembourger requested the City Attorney to comment on the issues presented. The City Attorney advised the Agency members that the offer was based on an appraisal which was checked and confirmed by a second appraiser who determined the appraisal to be a fair offer. The second issue is whether or not the Agency has the power to take possession of the property. Due to the fact that the property is not being used by the School District for school purposes, the City has a viable interest and is prepared to go to court to take possession of the property. -4- ".' . In response to a question raised by Chairman Luxembourger, the City Attorney stated that ordinarily the Agency does not present the appraisal to the owners of record. However, the City is required to have an appraisal prepared and offer the full value of the appraisal amount. Chairman Luxembourger asked they had any questions of commented. the members of the Agency if Staff or of those who had Mr. Bricken stated that he felt that the Agency should delay action for two weeks to allow Staff the time to get together with the School Board to try to work out existing problems to determine if it is possible to proceed on a voluntary basis. Vice Chairman Griset stated that the City's contractual agreement should be honored and if it is necessary to file legal action to accomplish the goals within the alloted time frame it should be approved. Mrs. McGuigan stated that although resolution, she hopes that it can litigation. she will support the be resolved without . Chairman Luxembourger now closed. advised that the public hearing was A motion was made by Vice Chairman Griset, seconded by Mr. Johnson and carried by the following roll call vote to adopt Resolution 83-21: A RESOLUTION OF THE COMMUNITY REDEVEL- OPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE BIRCHPARK ASSOCIATES DEVELOP- MENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. AYES: NOES: ABSENT: Griset, Johnson, Luxembourger, McGuigan, Young Acosta, Bricken None PUBLIC HEARING ON PROPOSED LEASE AGREEMENT FOR SANTA ANA - ORANGE COUNTY TRANSPORTATION CENTER . Chairman Luxembourger announced that this was the time and place for the public hearing of the Redevelopment Agency to receive public comment on the question of whether the Community Redevelopment Agency of the City of Santa Ana should enter into two lease agreements with the City of Santa Ana for use of the Transportation Center facility, to be located at Santa Ana Boulevard and Santiago Street in the City. -5- " .' Chairman Luxembourger requested that staff identify the project and provide further information on the purpose of the hearing. . Mr. David N. Ream, Community Development Director, stated that the request is a necessary companion action for the delivery of funds for the Santa Ana - Orange County Transportation Center. Chairman Luxembourger announced that the Agency would now like to hear from those people who desire to address the Agency on this issue. He added that if anyone desired to address the Agency, they should step forward to the podium, give their name and address and limit their comments to five minutes. As there were no requests from the public, Chairman Luxembourger asked if there were any further comments from the Agency staff. Staff declined further comment and Chairman Luxembourger announced that the public hearing was now closed. At this time he invited Agency members to ask any questions that they may have of Staff. . There being none, a motion was made by Mr. Bricken, seconded by Mr. Acosta and carried by the following roll call vote to approve the Lease Agreements dated June 1, 1983, between the Redevelopment Agency and the City of Santa Ana for the Transportation Center and authorize the execution of the necessary documents. AYES: Acosta, Bricken, Griset, Johnson, Luxembourger, McGuigan, Young None None NOES: ABSENT: CONSENT CALENDAR ITEMS DISSENTING AND ABSTAINED VOTES Mrs. McGuigan voted NO on item 5.A. (Lease Agreement for property located at 300 South Main Street)¡ Mr. Young abstained from item 5.B. (Extension of Exclusive Right to Negotiate - American Hospital Supply Corporation project- southwest corner of Willowick Golf Course). . CONSENT CALENDAR STAFF RECOMMENDATIONS APPROVED On the unanimously approved 7:0 motion of Mr. Bricken, seconded by Mr. Acosta, the Agency approved the recommendations of Staff on the following consent calendar items: -6- '. ~. MINUTES . Approved the Minutes of the Adjourned Regular Meeting/Joint Meeting with City Council held on May 16, 1983; Regular Meeting held on May 17, 1983; and Adjourned Regular Meeting held on June 6, 1983. 1983 TAX ALLOCATION REFUNDING BOND ISSUE Authorized the return of the good faith bid check submitted by Blyth Eastman, Paine Webber, Inc. for the 1983 tax allocation refunding bonds. LEASE AGREEMENT FOR PROPERTY LOCATED AT 300 SOUTH MAIN STREET Authorized the Chairman to execute lease with option to purchase the real at 300 South Main Street from Silas for a lease term of ten (10) years month. (Mrs. McGuigan voted NO.) an agreement to property located and Marie Chaney at $1,925.00 per . EXTENSION OF EXCLUSIVE RIGHT TO NEGOTIATE- AMERICAN HOSPITAL SUPPLY CORPORATION PROJECT (SOUTHWEST CORNER OF WILLOWICK GOLF COURSE) Granted American Hospital Supply Corporation a three- month extension to their exclusive right to negotiate for the development of the southwest portion of Willowick Golf Course. (Mr. Young abstained on this item. ) EXTENSION OF EXCLUSIVE RIGHT TO NEGOTIATE FOR THE A-3 SITE (OLD COURTHOUSE PLAZA BLOCK) Granted a six month extension to the exclusive right to negotiate with C. M. Properties, Inc. for development of the A-3 site. * * * * * * * * * *, CONSENT CALENDAR FINIS * * * * * * * * * WRITTEN NOTIFICATION OF DENIAL OF CLAIM OF KATIE'S CHILDRENS BOUTIQUE . A motion was made by Mr. Acosta, seconded by Vice Chairman Griset and carried unanimously to adopt Resolution 83-22: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA DENYING THE CLAIM OF "KATIE'S CHILDRENS BOUTIQUE" FOR RELOCATION ASSISTANCE PAYMENTS. -7- 'w " . '., . . . ADJOURNMENT There being no further business Redevelopment Agency, the meeting A.M., to July 19,1983 at 5:30 P.M. before the Community was adjourned at 1:00 ~ Re. Swan ~~n Executive Director Ø#~~r Robert Luxembourger Chairman -8-