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HomeMy WebLinkAbout06/25/1985 . MINUTES ADJOURNED COMMUNITY REDEVELOPMENT AGENCY MEETING REGULAR JOINT MEETING DOWNTOWN DEVELOPMENT COMMISSION/COMMUNITY REDEVELOPMENT AGENCY COUNCIL CHAMBERS 20 CIVIC CENTER PLAZA SANTA ANA, CALIFORNIA JUNE 25, 1985 The Regular Joint Meeting of the Downtown Development Conuni ssi on/Community Redevelopment Agency and the Adjourned Meeti ng of the Community Redevelopment Agency was called to order at 7:25 PM in the Council Chambers at 20 Civic Center Plaza, Santa Ana, California. Clerk of the Council conducted roll call as follows: PRESENT A8SENT . John Acosta Daniel Griset, Chairman Wilson B. Hart Patricia McGuigan Scott Morgan (ex-officio Daniel H. Young Others in Attendance: P. Lee Johnson, Vice Chairman Robert Luxembourger alternate) . Robert C. Bobb, City Manager Rex Swanson, Deputy City Manager/Development Jan Perkins, Deputy City Manager/Operations Edward J. Cooper. City Attorney Janice Guy, Clerk of the Council David N. Ream, Executive Director/Economic Development Roger A. Kooi, Downtown Development Conunission Director Edward V. Henning, Asst. Director, Downtown Development Conunission Hank Cunningham, Business and Industrial Dev. Manager Robert Hoffman, Real Estate Manager Cindy Nelson. Redevelopment Officer Richard Dominguez, Manager, Operations and Finance Debbie Kurita, Administrative Assistant Gary Craig, Administrative Assistant Janet Grane-Evans, Downtown Dev. Comm. Secretary Kathy Les, Heritage Orange County, Inc. Jay Meehan, CM Properties MINUTES It was moved by Conunissioner McGuigan, seconded by Conunissioner Griset, and carried unanimously (5:0) that the minutes of the Regular Joint Meeting of May 28, 1985 be approved as received. . . . . . EXECUTIVE SESSION At 7:30 PM, the Legal Counsel requested that the Redevelopment Agency recess to closed session pursuant to Government Code Section 54956.8 to gi ve i nstructi ons to the Ci ty I S negoti ator regardi ng negoti ations wi th W. Schmidt/Eo and M. Belch concerning the purchase/sale/exchange/lease of the property located at 925 West Third Street. The assembly reconvened at 8:40 PM. PUBLIC HEARING TO ADOPT RESOLUTION 85-20 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-13 REDEVELOPMENT SITE (901 WEST THIRD 5TREET; ASSESSOR PARCEL NO. 405-162-07); PUBLIC HEARING TO ADOPT RESOLUTION 85-21 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-13 REDEVELOPMENT SITE (925 WEST THIRD STREET; ASSESSOR PARCEL NO. 405-162-13) Chairman Griset announced that this was the time and place for the Public Hearing on the issue of the public necessity to acquire by condemnation properties identified by Assessor Parcel No.s as Book 405, Page and Block 162, Parcel 07 and 13, for redevelopment purposes. Chairman Griset called upon Rex Swanson, Deputy City Manager/Development, for staff report. Mr. Swanson deferred to Robert Hoffman. Real Estate Manager, to identify the properties and the project. Mr. Hoffman exhibited a number of slides of the areas involved in the public hearings at this meeting. In commenting on the factors and evi dence necessitati ng the condemnati on acti on, Mr. Hoffman elaborated upon the issue of public interest and necessity. He stated that the Redevelopment Agency had executed a Disposition and Development Agreement with Lowy Development Corporation at its meeting of January 7, 1985. The agreement requires the Agency to deliver the assembled 3.3 acre site on the southwest corner of Flower Street and Santa Ana Boulevard to Lowy for construction of a phased commercial complex totaling 150,000 square feet of office space with structured parking. Mr. Hoffman added that the site is an integral component in the redeve 1 opment of the Downtown and Ci vi c Center because of its general location and proximity to redevelopment projects to the east and to the south. Mr. Hoffman stated that ni neteen of the twenty-one ownerships within the site have been acquired; the two properties in conjunction with this site which are at issue are required to complete the site. Mr. Hoffman affirmed that an offer of just compensation has been presented to the property owners pursuant to Secti on 7267.2 of the Government Code. Having received no written communications and hearing no comments from the public, Chairman Griset closed this Public Hearing at 8:55 PM. It was moved by Mr. Hart, seconded by Mr. Young and carried unanimously (5:0) to adopt Resolution 85-20: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE A-13 REDEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA. AND DECLARING THE PUBLIC NECESSITY THEREFOR (901 WEST THIRD STREET). It was moved by Chairman Gri set, seconded by Mr. Hart, and carried unanimously (5:0) to adopt Resolution No. 85-21: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE A-13 REDEVELOPMENT SITE IN THE CITY OF SANTA ANA. STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (925 WEST THIRD STREET). . . . . . PUBLIC HEARING TO ADOPT RESOLUTION 85-22 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-10 REDEVELOPMENT SITE (A5SESSOR PARCEL NO. 398-516-07; 423 EAST FIRST 5TREET); PUBLIC HEARING TO ADOPT RESOLUTION 85-23 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-lO REDEVELOPMENT SITE (ASSESSOR PARCEL NO. 398-516-13; 113 NORTH FRENCH STREET). Chairman Griset announced that this was the time and place for the Public Hearing on the issue of the public necessity to acquire by condemnation properties identified by Assessor Parcel No.s as Book 398, Page and Block 516, Parcel 07 and 13, for redevelopment purposes. Chairman Griset called upon Mr. Hoffman to identify the properties and the project and to comment on the factors and evidence necessitating the condemnation action. Mr. Hoffman stated that the public interest and necessity require the property for several reasons. He recalled that the Redevelopment Agency has entered into a Disposition and Development Agreement, dated June 25, 1984, with Urbatec as the redeveloper. Mr. Hoffman asserted that the contractual agreement requi res the Agency to acquire a four square block area, including the subject properties. for conveyance to Urbatec, for development of a neighborhood shopping center including over 100,000 square feet of retail space and parking for 460 vehicles. Mr. Hoffman stated that sixteen of the twenty-one ownerships within the site have been acquired, representing over 75% of the Site. He cited several examples of the requirement of these properties for the public interest and necessity. Chairman Griset then opened the Hearing for public input, at which time Bernard Gaon, of 2213 North Mantle Lane, Santa Ana, CA, 92701, addressed the meeting regarding the parcel at 423 East First Street. Mr. Gaon referred to the A-10 Ace Muffler decision and expressed the opinion that present plans are too vague to warrant inclusion of his parcel. Robert Bobb, City Manager. explained that the City continues negotiations with Urbatec. Edward J. Cooper. City Attorney, remi nded the assembly that the Ci ty has an agreement whi ch requires delivery of the land by June, 1986. Mr. Gaon then stated that he had not been offered a fair market value for his property and that the Agency had paid more for an adjacent parcel than he had been offered. Mr. Gaon went on to remark that he had not been gi ven an opportunity to participate in the development. Mr. Cooper stated that the issue of property value would be settled in another forum, and that California Government Code requires independent appraisals with review by yet another appraiser, which is what had happened in this case. Mr. Gaon asserted that he had been "forced to sell my property to Pulido for parking." He stated that the property is in escrow at this time. At 9:10 PM, Chairman Griset declared the Public Hearing closed. It was moved by Mr. Hart, seconded by Chairman Griset, and carried unanimously (5:0) that the Agency adopt Resolution No. 85-22: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE A-10 REDEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (423 EAST FIRST STREET). It was then moved by Mr.. Acosta, seconded by Mr. Hart, and carried unanimously (5:0) that the Agency adopt Resolution No. 85-23: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE A-10 REDEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (113 N. FRENCH STREET). . . . . . AGREEMENT WITH MERCURY SAVINGS AND LDAN ASSOCIATIDN It was moved by Mr. Hart, seconded by Mr. Young, and carried unanimously (5:D) that the Agency approve the proposed Agreement with Mercury Savi ngs and Loan Associ ati on p1 edgi ng to deposi t $ 447,466 into a non-i nterest beari ng acount for up to I-year to buy-down the interest rate on a $ 4,58D,000 interim loan from Mercury to Spurgeon Venture, and authorize the Agency's Chairman to execute the agreement. EXCLUSIVE RIGHT TD NEGOTIATE FDR REHABILITATIDN DF 3D2 CAFE BUILDING Due to a potenti a 1 confl i ct of interests, Mr. Hart was excused. Mr. Hart's absence created an assemblage of only four members, and Ms. McGui gan i nqui red whether fi ve votes were actually required for thi s particular action. Mr. Cooper pointed out that this was an Exclusive Right to Negotiate rather than a Disposition and Development Agreement, and that, as such, a vote of four members would suffice. Ms. McGuigan expressed discontent with the fact that only four votes are required on an issue whi ch may well reach a poi nt at whi ch fi ve votes wou1 d be required, which led to brief discussion of the Agency bylaws. It was moved by Mr. Young, seconded by Mr. Griset. and carried (3:1), with Ms. McGuigan opposing, that the Redevelopment Agency award a 90-day Exclusive Right to Negotiate to the joint venture partnership of C.M. Properties and Heritage Drange County for acquisition and rehabilitation of the former 302 Cafe building, located at 3D2 North Main Street. Following this action, Mr. Hart rejoined the Agency at 9:2D PM. AMENDMENT TO PARTICIPATIDN AGREEMENT WITH SANTA ANA VENTURE FDR THE FASHIDN SQUARE CDMMERCIAL CENTER It was moved by Mr. Young, seconded by Mr. Hart, and carried unanimously (5:D) that the Agency approve the First Amendment to the Participation Agreement wi th Santa Ana Venture and authori ze its executi on by the Chairman. ANNUAL AUDIT REPDRT AND ANNUAL REPDRT FOR FY 83-84 It was moved by Mr. Young, seconded by Mr. Hart, and carried unanimously (5:0) that the Agency approve the Annual Audit Report (FY 83-84) as prepared by Conrad and Associates and receive and file same. FUND TRANSFER FDR DOWN PAYMENT DN SANTA FE LAND PURCHASE FOR SANTA ANA AUTO MALL SITE IAPP. ADJ. NO. 312) It was moved by Mr. Young, seconded by Mr. Hart, and carried unanimously (5:0) that the Agency approve Appropriation Adjustment No. 312 transferring $ 3,10D,DOD to the Santa Ana Auto Mall project for the purpose of provi di ng the down payment to the Santa Fe Land Improvement Company for the purchase of land required for this development. SANTA ANA BUSINESS ENTERPRISE FACILITY It was moved by Mr. Young, seconded by Mr. Hart, and carried unanimously (5:D) that the Agency authorize the Chairman of the Redevelopment Agency to execute appropriate acquisition documents for purchase of the Busi ness Enterpri se Facil i ty from Santa Fe Paci fi c Realty Corporati on for a total purchase price of $ 437,55D. , . . . . ADJOURNMENT . . There being no further business to come before the Redevelopment Agency and the Downtown Development Commission, these bodies were adjourned by the Chairman at 9:30 PM to 7:00 PM. July 23rd, in City Council Chambers at 20 Civic Center Plaza. ~ ~~ Deputy City Manager/Development Daniel E. Grlset. Chairman