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HomeMy WebLinkAbout06/25/1984 i . . . pi¿ MINUTES ADJOURNED REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA JUNE 25, 1984 The Adjourned Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Luxembourger at 10:55 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 Pastor Don Vanderpool of the Christian and Missionary Alliance, roll was called: PRESENT ABSENT John Acosta Gorden Bricken Daniel Griset, Vice Chairman P. Lee Johnson Robert Luxembourger, Chairman patricia McGuigan Dan Young Others in attendance: Robert C. Bobb, City Manager Rex Swanson, Executive Director Edward J. Cooper, City Attorney David N. Ream, Executive Director/Economic Development Thomas E. Hammill, Assistant Director, Redevelopment & "'eal Estate Cynthia Nelson, project Area Manager Mellmary McNeely, Secretary CONTINUATION SITE PUBLIC HEARING FOR A-3 DEVELOPMENT OF JOINT It was moved by Mr. Acosta, seconded by Mrs. McGuigan and carried unanimously (7:0) that the Agency continue the joint public hearing on the CM Plaza Development proposal until July 17, 1984. JOINT PUBLIC HEARING FOR THE PROPOSED SALE BY THE COMMUNITY REDEVELOPMENT AGENCY TO URBATEC FOR THE A-lO SITE Chairman Luxembourger called the Joint Meeting of the Santa Ana Redevelopment Agency and the City Council to order and stated that the purpose of the Joint Meeting was to consider ~~ I. . . . the proposed sale of property known as the A-lO site by the Community Redevelopment Agency of the City of Santa Ana to Urbatec. He added that the site was bounded on the north by Third Street, on the west by Spurgeon Street, on the south by First Street, and on the east by the Redevelopment Boundary. He then called upon staff to identify the property and give staff's recommendation. The Executive Director/Economic Development called upon the Assistant Director of Redevelopment and Real Estate to make the staff presentation. The Assistant Director of Redevelopment and Real Estate pointed out the site map present in the Council Chambers and advised that there were 36 parcels in the site which include auto repair and parts shops, paint shops, single family residences, a 10-unit apartment house, muffler shop, machine shop, speedometer shop, upholstery shop, a Salvation Army Center and twelve vacant properties. He then introduced Ms. Cindy Nelson, Project Area Manager, and asked her to make a slide presentation which would indicate the types of uses presently existing on the A-lO site. After the slide presentation, the Executive Director/ Economic Development introduced the project architect, Mr. Randy Jones of Herb Nadel's office, and asked him to review the proposal for the A-lO site. Mr. Jones thanked the members of the Agency for the opportunity to appear before them and expressed the enthusiasm Urbatec felt for the proposed development of the A-lO site. He added that, in his opinion, this proposed development would go a long way toward starting the process of revitalizing downtown Santa Ana since it would be bringing a lot of people into the downtown area. He pointed out that it was difficult to assemble a parcel the size of the A-lO site which contains 8 acres and will accommodate approximately 100,000 square feet of retail space. He added that prospective tenants of a shopping center are very particular in their requirements and demands for sites and, if these requirements and demands are not met, they they will quickly move on to a site which will meet their needs. Mr. Jones added that the A-lO site met most of the ideal qualifications for such a center in terms of its size, street access, loading areas, the long dimension of the site on a major street and high visibility. He added that, in addition to a major food market and drug store, there would be three other pads -- two for fast food establishments and one which would possibly be occupied by a major savings and loan. He pointed out that a theme had not as yet been established for the shopping center, but that it would probably be drawn from the surrounding neighborhood. Mr. Jones then made a slide presentation which showed specific themes used in several other shopping centers. 2. ;\(, I . Mr. John MacLaurin of Urbatec then spoke on behalf of his firm and the project. He stated that they are presently arranging long-term leases with Boy's Market, and Sav-On Drug and were negotiating with McDonald's and pioneer Chicken. He added that they were also negotiating with a major lending institution as occupants of the major pad in the site. He pointed out that Urbatec had worked very hard to bring this development to Santa Ana and hoped that their efforts would not be in vain because of something over which they had no control. In response to a query from Chairman Luxembourger, staff reported that there were no written communications. The Chairman then asked that all members of the public wishing to speak in support of the proposed sale of the A-lO site to step forward to the podium and limit their comments to 5 minutes. Mr. David Fraunfelder addressed the Agency, stating that the neighborhood needed this shopping center badly and urged the Agency to accept the Urbatec proposal for the A-lO site as presented without any alterations. . Chairman Luxembourger then asked those persons disagreeing with the proposed sale to step forward to the podium and to limit their comments to 5 minutes. Ms. Nanette Levschel stated that she was present to introduce those who wished to speak on behalf of Mr. Pulido, owner of the Ace Muffler Shop. Those speaking against the sale were: Dr. John Diamond, Chief of Staff for St. Jude's Hospital, who stated that he had known the Pulido family for many years and found their integrity and honesty to be unquestioned. He added that, in his opinion, their business, Ace Muffler, was a credit to the community and he hoped the Agency would find in favor of the Pulido family. He asked Mr. Pulido to stand and pointed out that, since Mr. Pulido did not feel that his English was good enough to address the Agency, he had asked others to speak for him. . Mr. Joe Pulido, operations manager for Ace Muffler, then addressed the Agency and pointed out that Ace Muffler was a successful business and an asset to Santa Ana. He added that their sales were up 50% and that they showed gross sales in excess of a quarter of a million dollars. He stated that, in his opinion, there were alternatives to the proposal for the site as presented by Urbatec. He then introduced Mr. Miguel Pulido and asked him to outline these alternatives. 3. -al . Mr. Miguel Pulido called the attention of the members of the Agency to two renderings in the Council Chambers showing the present Ace Muffler Building as an integrated part of the A- 10 site. He also passed around a model showing the same concept. He added that they would be willing to adapt the Ace Muffler Building to blend with whatever architectural theme was chosen for the A-IO site. He added that the pulidos had contacted consultants in the field and had been told that their business would not necessarily be a detriment to the development of this site. He stated that one consultant, Mr. Rick Gaylord, felt that their business was compatible with the neighborhood. He then introduced Mr. Luis Pulido. Mr. Luis Pulido stated that he had made a study of shopping centers in outlying areas such as Laguna Hills, Diamond Bar and Fullerton and had found several which had auto repair shops as tenants with no adverse results. He then made a slide presentation showing several shopping centers containing automobile repair shops. He then introduced Mr. Michael Pulido. . Mr. Michael Pulido read portions of a letter from another developer in which they expressed interest in the development of the A-lO site and stated that they felt they could integrate the Ace Muffler Building into this development. . Mr. Charles McClung, attorney for the Pulido family, addressed the Agency and stated that he was also speaking for Mr. Rudy Montejano, an associate of his, who was unable to attend. He stated that there was a correction to the site plans and model shown by the pulidos, in that there was an alleyway which had not been shown and that this would make a 10' to 60' difference in the plans as shown. Mr. McClung then reviewed the economics of the proposed development of the site and stated that, in his opinion, the inclusion of Ace Muffler would make the development of the site better both in concept and in economics, since there would be no acquistion costs for Ace Muffler. Mr. McClung added that, in his opinion, the Environmental Impact Report for the development of this area was inadequate in that it did not envision a development of the magnitude proposed by Urbatec. He added that he felt there were other legal problems involved in this development. He stated further that he had brought a petition, containing 1,000 signatures, which supported the position taken by the Pulido family. Mr. Hector Godinez addressed the Agency and stated that he had been contacted by the Pulido family and asked to help them in this presentation. He added that he was impressed 4. aß . . . with what they had told him and, as a former Redevelopment Commissioner, he felt their case had a great deal of merit. He pointed out that Mr. Pulido had stated that he was willing to do whatever was necessary to adapt his business so that it could be successfully integrated into this proposed shopping center. Mr. Godinez stated that he hoped that the Agency would give favorable consideration to the proposals made by the Pulido family. Mr. Hal Butts addressed the Commission and read a prepared statement in support of the Pulido family's position. Ms. Sharon Brown, Mr. Bob Lopez and Mr. Allen Woo all spoke in support of the Pulido family's position. In rebuttal, Mr. John MacLaurin of Urbatec stated that his company very much wanted the support of the community. He added that they had given consideration to the incorporation of Ace Muffler into their proposal for the A-lO site and that, if it could have been done, they would have done it. He stated further that the Urbatec staff felt that the Ace Muffler building was incompatible to the proposed shopping center. He pointed out that Urbatec had been invited by the Agency to make this proposal and that they had worked very hard to present a viable one. He added that many firms such as Gemco, Ralph's and several other prominent super-markets had turned the site down because they did not like the location and the demographics. He again pointed out that Urbatec was most enthusiastic about their proposal and sincerely sought the support of the community. The City Manager stated that the Agency had staff's recommendation and that it was the only one staff was prepared to offer. He added that he realized this type of decision was not easy to make. He pointed out that, unfortunately, in the course of discussions, emotions could run extemely high and issues could be broadened beyond business decisions into ethnic and/or racial types of decisions. He stated that he did not think decisions should be made emotionally. He added that his only concern was that, if this proposal was not approved, prospective developers in the future might be reluctant to deal with the Agency. The City Manager pointed out that the Agency had issued an exclusive right to negotiate with Urbatec and that his recommendation was that the Agency continue in its negotiations with them. He added that, if this was not done, it would, in his opinion, have a negative long-range impact on other potential developments in the City of Santa Ana. In response to a question from Mrs. McGuigan, Mr. MacLaurin stated that Urbatec's architects had gone over the 5. ~~ information offered by Ace Muffler and had told them that, in their opinion, the Ace Muffler Building would not fit into the development. . Mr. Bricken stated that the inference had been that if Ace Muffler could not operate at this location, they would go out of business. He then asked staff to explain the process of relocating a business to a new site. The Executive Director stated that the Agency would acquire a new site for Ace Muffler and had suggested the possibility that a site 700' east of their present location might be suitable. He added that the City owned this property and would try in every way to protect the rights of Ace Muffler. In response to a question from Mr. Bricken, the Executive Director/Economic Development stated that Ace Muffler was made aware of this site in communications with their attorney. Mr. Bricken said that he had been a party to discussions when this subject had come up and that he wanted it as a part of the record that this information had been available to the pulidos for quite some time. . In response to a question from Mr. Acosta, staff affirmed that the location 700' east of Ace Muffler's present location was adjacent to another muffler shop. Chairman Luxembourger declared the Public Hearing closed. In response to a question from Mrs. McGuigan, the Executive Director/Economic Development stated that it was staff's policy to give the persons being relocated the opportunity to look for alternative properties and that, in his opinion, this was the better way since site selection was an individual matter. In response to a question from Chairman Luxembourger, Mr. MacLaurin of Urbatec stated that his company would not be interested in pursuing the development of the site if Ace Muffler was to be a participant. . In response to a question from Mr. Acosta, Mr. MacLaurin stated that there might be a site elsewhere where the incorporation of Ace Muffler into a shopping center might be accomplished. He said it would be possible if the site were large enough, and the muffler shop could be sheltered but that the A-lO site did not meet this criteria. In response to a further question from Mr. Acosta, Mr. MacLaurin stated that Urbatec had not, to date, constructed a shopping center. 6. 30 . Mr. Young stated that he had listened carefully to all that had been said and that this was a very difficult decision to make. He added that because Urbatec had, in his opinion, done everything the Agency had asked them to do in an expedient manner, it would be unethical not to support the recommendation and continue negotiations with Urbatec. Mr. Griset stated that he would support the recommendation because he believed that everyone could win in this particular situation. He pointed out that for a very long time the Planning Commission and the City Council had been hearing, as a reason for not building additional residences in Santa Ana, that there was no place for the people to shop and that this was a glaring deficiency. He added that he felt this was the Agency's opportunity to move ahead with this shopping center concept that was considered to be so important. He pointed out that he was sure that the relocation benefits available would allow Ace Muffler to continue in business in the downtown area with little or no inconvenience to its clientele. He added that he felt the spirit shown by the Pulido family would certainly be able to overcome a change in address. . Mr. Acosta stated that he would find it difficult to support the recommendation because the developer would not compromise. He added that he did not feel that Urbatec had sufficient experience in the building of shopping centers. Mr. Luxembourger stated that he was very disappointed that a middle-of-the-road decision could not be reached. He added that he did not believe the problems presented were insurmountable and that a compromise could be reached. He stated that for these reasons he could not support the recommendation. . Mr. Bricken stated that, if the Agency was to pursue the revitalization of the downtown area, it would most certainly necessitate the relocation of individuals. He added that he felt the Agency had made a strong effort to be fair but that in the end must honor its commitment to Urbatec. He stated that, in his opinion, any question as to Urbatec's ability and background had not been raised when they were chosen as developers and should not now be an issue. He added that he was sure that Ace Muffler could be relocated and remain in business and that everyone could remain friends. There being no further discussion, it was moved by Mr. Johnson, seconded by Mr. Griset and carried by the following roll call vote that the Agency recommend: 7. 2\ '. .' . . . 1. Adopt Resolution 84-6: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY AND URBATEC. 2. basic concept Approve the development. drawings for the AYES: NOES: ABSENT: Bricken, Griset, Johnson and Young Acosta, Luxembourger and McGuigan None A motion was then made by Councilmember Johnson, seconded by Councilmember Griset and carried by the following roll call vote that the Council adopt: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDERATION TO BE RECEIVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA PURSUANT TO A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND URBATEC FOR THE SALE OF CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT AND APPROVING THE SALE OF SAID REAL PROPERTY UPON THE TERMS AND CONDITIONS CONTAINED IN THAT AGREEMENT. AYES: NOES: ABSENT: Bricken, Griset, Johnson and Young Acosta, Luxembourger and McGuigan None Chairman Luxembourger adjourned the meeting to an Executive Session at 12:35 P.M. The Agency reconvened at 1:15 A.M. with all members formerly present in attendance. DOWNTOWN DEVELOPMENT STRATEGY PLAN ~t was moved by Mr. Griset, seconded by Mr. Young and carried unanimously (7:0) that the Agency approve the proposed Downtown Development Strategy Plan and direct staff to market the designated new development and commercial rehabilitation sites. ULI/UIG DOWNTOWN DEVELOPMENT STUDY It was moved by Mr. Young, seconded by Mr. Johnson and carried unanimously (7:0) that the Agency: 1. authorize staff to submit an application to the Urban Land Institute for their Panel Advisory Service; and 8. 3d. 2. authorize staff to develop an agreement with the Urban Innovations Group to conduct a design study charette for the downtown area. . DEVELOPER SELECTION FOR FRENCH AND FIFTH STREET) THE A-5 SITE (NORTHWEST CORNER OF It was moved by Mr. Young, seconded by Mr. Johnson and carried unanimously (7:0) that the Agency grant a 90-day exclusive right to negotiate to Urban Pacific Development Corporation for development of the A-5 site. AMENDMENT TO RESOLUTION PERTAINING TO RESIDENTIAL MORTGAGE REVENUE BONDS (SB-99) ISSUED BY THE AGENCY IN 1980. It was moved by /1r. Young, seconded by Mr. Johnson and carried unanimously (7:0) that the Agency adopt Resolution 84-12: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA TO AMEND THE DEFINITIONS OF "BOND YEAR" AND "ASSET COVERAGE TEST" IN RESOLUTION NO. 80-75, PERTAINING TO RESIDENTIAL MORTGAGE REVENUE BONDS ISSUED BY THE AGENCY. . ADJOURNMENT The meeting 1:19 A.M. of the Redevelopment Agency was adjourned at ~ /~T Chairman Executive Director . 9. 3~