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HomeMy WebLinkAbout05/17/1983 . . . pi( MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA MAY 17, 1983 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Luxembourger at 5:48 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 Gordon Bricken Daniel Griset P. Lee Johnson Robert Luxembourger patricia McGuigan 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 Laura Juarez, Secretary MINUTES A motion was made by Mr. Acosta, seconded by Mr. Griset and carried unanimously to approve the Minutes of the Regular Meeting held on April 19,1983. GRIEVANCE FOR RELOCATION ASSISTANCE PAYMENT/KATIE'S DRENS BOUTIQUE/SECOND AND BROADWAY CHIL- The Community Development Director addressed the Agency and pointed out the location of the property involved in this grievance on a plot map which was on display in the Chambers. He added that on August 3, 1982, the Redevelopment Agency received a claim for $35,431.30 in . . . relocation assistance compensation from attorney Richard L. Riemer, II, representing Katie's Childrens Boutique located in the Grand Central Building at Second and Broadway. Mr. Riemer, on behalf of his client, Mrs. William Greenberg, claimed that the childrens boutique was forced to relocate during the rehabilitation of the Grand Central Building in 1981. The commercial and residential tenants in the building received relocation assistance because a portion of the funds for the rehabilitation were provided through the Federal 312 Loan Program administered by the Department of Housing and Urban Development. Twenty-nine residents and two businesses received relocation payments, including Green's Furniture, Incorporated owned by Mr. and Mrs. William Greenberg. The essence of Mrs. Greenberg's claim is that Katie's Boutique was a separate and distinct business from Green's Furniture and should, therefore, also be eligible for relocation funds. Staff and the Redevelopment Commission have denied this claim based on the evidence that Mrs. William Greenberg and her husband owned Green's Furniture and Katie's Boutique was located in space leased by Green's Furniture from the building's owners, Harry and Evelyn Greenberg. In reviewing the available informtion, staff and the Commission determined that Katie's Childrens Boutique had no separate lease, sublease, business license, rent receipts or other evidence that it was in anyway a separate business and eligible for relocation assistance. The Community Development Director then introduced Mr. Richard Riemer, attorney for Katie's Childrens Boutique, to the Agency. Mr. Richard L. Riemer, II, 850 N. Parton, Santa Ana, stated that the Community Development Director and the Agency continue to lump together everyone that is named Greenberg. He stated further that Katie's Childrens Boutique is a separate entity. Mr. Riemer also stated that the Agency did not comply with any of the notice requirements with the relocation of Katie's Childrens Boutique or Green's Furniture. He also stated that HUD Regulations state that it is the responsibility of the Agency to notify a claimant that more documentation is required, and that no such request was received by the Greenbergs. He also stated that Katie's Childrens Boutique had always had a separte entrance on Second Street with a sign and awnings out front and that it maintained business hours different from those maintained by the furniture store. He added that there was never any indication that Katie's Childrens Boutique was operated as a part of Green's Furniture. -2- . . . .' Mr. Riemer also stated that Agency staff had made a number of comments that no lease ever existed with Green's Furniture and Katie's Childrens Boutique and that this precluded Katie's Childrens Boutique from qualifying for a claim. Mr. Riemer added that the Federal Guidelines stated that the term "tenant" is defined as "a person who rents or is temporarily in possession of an interest in real property", all they have to do is be in temporarily possession. In response to a question raised by Mrs. McGuigan, Mr. Riemer responded that the relocation was to a trailer on the corner of First and Broadway pursuant to an agreement with the Agency. In response to several questions raised by Mr. Bricken, Mr. Riemer responded that Katie's Childrens Boutique is a sole proprietorship. The City Manager pointed out that Marta Sonia Greenberg declared that she was the manager and part owner of Katie's Childrens Boutique. Mr. Riemer then pointed out that under California Law, Mr. Billy Greenberg, as Marta's husband, would have some rights. In response to a question raised by Mr. Johnson, the City Manager responded that this was the business that was operating without a license. The City Manager then pointed out that Katie's Childrens Boutique presently is operating out of two locations: 1911 N. Main Street, Santa Ana, and 218 Second Street, Santa Ana. Mr. Riemer then stated that Katie's Childrens Boutique moved out of Green's Furniture into the Second Street Mall when the rehab was completed. In response to a question raised by Mr. Johnson, Mr. Riemer responded that the business license was taken out when the misdemeanor action was brought by the City. Mr. Riemer then stated that Harry and Evelyn Greenberg have no interest in Green's Furniture or Katie's Childrens Boutique. He also stated that Katie's Childrens Boutique is operated solely by Marta Greenberg and that her husband does not work for her. In response to a question raised by Mr. Johnson, the Community Development Director responded that the name "Katie" was Mr. William Greenberg's grandmother who migrated from Russia. -3- . . . A motion was made by Vice Chairman Griset, seconded by Mr. Johnson to deny the appeal of Katie's Childrens Boutique to receive funds for relocation assistance. Before this motion was acted upon, the City Attorney requested that the motion be amended to include the preparation of a resolution furnishing a written determina- tion on the appeal with copy to the claimant pursuant to the provisions of SS42.705 (e) HUD Handbook 1376.1 dated September 26, 1979. Chairman Luxembourger asked the maker of the motion if this was to his satisfaction. Vice Chairman Griset responded yes and the prior motion, as amended, carried unanimously. Mr. Young left at 6:20 P.M. EXECUTIVE SESSION At 6:21 P.M., the Redevelopment Agency adjourned to an Executive Session to discuss legal matters. The meeting was reconvened at 7:05 P.M., with the same members present. ADJOURNMENT There being no further business Redevelopment Agency, the meeting P.M., to June 6, 1983 at 7:30 P.M. before the Community was adjourned at 7:06 R~~ L~ Executive Director Chairman -4-