HomeMy WebLinkAbout06/25/1985
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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
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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)
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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.
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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).
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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).
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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.
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ADJOURNMENT
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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.
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Deputy City Manager/Development
Daniel E. Grlset.
Chairman