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HomeMy WebLinkAbout03/19/1985 - . . DOWNTOWN MINUTES ADJOURNED REGULAR JOINT MEETING DEVELOPMENT COMMISSION/COMMUNITY REDEVELOPMENT SANTA ANA, CALIFORNIA MARCH 19, 1985 AGENCY The Adjourned Regular Joint Meeting of the Downtown Development Commission and the Community Redevelopment Agency was called to order at 5:45 P.M. in the Council Chambers of the City of Santa Ana, 22 Civic Center Plaza, Santa Ana, California. A visual roll call revealed the following: PRESENT ABSENT John Acosta Daniel Griset, Chairman Wilson B. Hart P. Lee Johnson, Vice Chairman Robert Luxembourger patricia McGuigan Daniel H. Young Scott Morgan (ex-officio alternate) Others in attendance: Robert C. Bobb, City Manager Rex Swanson, Deputy City Manager/Development Services Edward J. Cooper, City Attorney Janice Guy, Clerk of the Council David N. Ream, Executive Director/Economic Development Roger A. Kooi, Downtown Development Commission Director Debra Kurita, Admin. Asst., Economic Development Agency MINUTES It was moved by Mrs. McGuigan, seconded by Mayor Griset and carried unanimously (7:0) that the Minutes of the Regular Joint Meeting of February 26,1985 be approved as received. LEASE AGREEMENT FOR RENTAL OF SUPPORT SPACE TO THE ADMINISTRATIVE OFFICES OF THE DOWNTOWN DEVELOPMENT COMMISSION Roger Kooi, Downtown Development Commission Director, made the staff presentation in which he outlined the need for the additional space and the budgeting of the additional cost. It was carried then moved by Mr. Young, seconded by Mr. Johnson and unanimously (7:0) that the Redevelopment Agency 8 . . authorize and approve an agreement for the rental of an additional room supportive of the existing Downtown Development Commission offices, at l16-A West Fourth street, and authorize the Chairman to execute such an agreement. 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 5:50 P.M. to the next regularly scheduled meeting. ~ Daniel E. Grlset, Chairman Dav,J ~~ Executive Director/ Economic Development -2- . . . A motion was made by Councilmember Luxembourger, seconded by Council- member Johnson and carried by the following roll call vote to adopt Resolution No. 84-161: 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 LOWY DEVELOPMENT CORPORATION 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: Acosta, Griset, Hart, Johnson, Luxembourger, McGuigan, Young None None NOES: ABSENT: ADJOURNMENT There being no further business to come before the Community Redevel- opment Agency, the meeting was adjourned at 8:00 P.M. R~ø7~ Executive Director ~i.et Chairman 4 . . . REL: adg 4/2/85 NOTICE OF PROPOSED AMENDMENT TO THE BY-LAWS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA TO: The Honorable Members of the Community Redevelopment Agency of the City of Santa Ana Article V, Section 10 of the By-laws of the Community Redevelopment Agency of the City of Santa Ana provides as follows: "SECTION 10. Amendment of By-laws. The By-laws of the Agency shall be amended only with the approval of at least four (4) members of the Agency at a regular or special meeting, but no such amendment shall be adopted unless at least seven (7) days written notice has been previously given to all members of the Com- mission by the Executive Director. Such notice shall identify the section or sections of the By-laws proposed to be amended." Attached to this Notice, please find a copy of a proposed resolution of the Community Redevelopment Agency of the City of Santa Ana showing a proposed section to be added to the By-laws of the Agency. Dated: April 9 :6d~ , 1985. Executive Director / .., , . . . þ{( MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY MARCH 19, 1985 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Griset at 5:50 P.M. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California. After the Pledge to the Flag, roll was called: PRESENT ABSENT John Acosta Daniel Griset, Chairman Wilson Hart P. Lee Johnson, Vice Chairman Robert Luxembourger patricia McGuigan Dan Young Other in attendance: Robert C. Bobb, City Manager Rex Swanson, Deputy City Manager/Development Services Edward J. Cooper, City Attorney David N. Ream, Executive Director/Economic Development Robert Hoffman, Real Estate Manager Mellmary McNeely, Secretary COMMUNICATIONS FROM THE PUBLIC There was no response when Chairman communications from the public. Griset called for 0 MINUTES It was moved by Mrs. McGuigan, seconded by Mr. Luxembourger that the Agency approve the Minutes of the Regular Meeting held on February 19,1985. AYES: Acosta, Griset, Hart, Johnson, Luxembourger, McGuigan and Young NOES: None ABSENT: None . . . PUBLIC HEARING TO ADOPT RESOLUTION 85-12 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-5 DEVELOPMENT SITE (311 EAST FIFTH 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 property identified by Assessor Parcel Numbers, as Book 398, Page and Block 323, Parcels 1, 2, 3, 4 and 7, for redevelopment purposes. He asked that staff identify the property and the project and to comment on the factors and evidence necessitating the condemnation action. He also requested that staff set forth why the public interest and necèssity require the project, why the project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury, why the property sought to be acquired is necessary for the project: and whether or not the offer as required by Section 7267.2 of the Government Code has been made to the owner or owners of record, or the offer has not been made because the owner cannot be located with reasonable diligence. The Real Estate Manager addressed the Agency and read the following statement: "The property is located at 311 East 5th Street and includes several lots having a total area of 43,750 square feet, slightly more than one acre. The primary improvements are two abutting, 57-year old, one- story, unreinforced masonry buildings with a total of 13,292 square feet. The property is presently used by the owners as a site for their business, A-I Foam and Fabrics, an upholstery materials and yardage outlet. The balance of the property is improved as asphalt paved parking. The public interest and necessity require the property for the following reasons: 1. The Agency has entered into a Disposition and Development Agreement with Urban Pacific Develop- ment Corporation dated September 25,1984. The subject property is included in the agreement with Urban Pacific for redevelopment. 2. The aforementioned Disposition and Development Agreement provides for the construction of 84 apartment units, a combination of one-bedroom, two-bedroom and townhouse units, and the subject property is required for such purposes. 3. The owners will receive just compensation for the taking of their property, and the business will receive relocation benefits in accordance with the law. -2- . . . Funds for the acquisition of this development site are the Redevelopment Agency's HUD Section 108 loan proceeds. Acquisition negotiations commenced in October, 1984, and the other two ownership interests within the site have already been acquired. The project is planned and located pursuant to Hearings previously held by the Redevelopment Commission, the City Council and the Redevelopment Agency. As stated, the project will provide 84 new residential units within the downtown area, which will represent redevelopment of the property, and provide new patronage for the businesses in the downtown. An offer of just compensation has made to the owners of the property in accordance with Section 7267.2 of the Government Code. Our negotiations with the property owners have reached an impasse and in order for the Agency to convey the site to the developer in a timely manner pursuant to the Disposition and Development Agreement and in accordance with the developer's construction time-schedule, it is necessary that the Redevelopment Agency adopt a Resolution of Necessity at this time." Chairman Griset asked if there were people present who desired to address the Agency, either for or against, this issue. There being no one wishing to address the Agency, Chairman Griset declared the Public Hearing closed. He then asked for qestions or comments from Agency staff or Members of the Agency. There being none, he then declared that a motion or motions to adopt Resolution 85-12 was in order. It was then moved by Mr. Young, seconded by Mr. Acosta that the Agency adopt Resolution No. 85-12: 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-5 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (311 EAST FIFTH STREET) . AYES: Acosta, Griset, Hart, Johnson, Luxembourger McGuigan and Young NOES: None ABSENT: None -3- . . . ACQUISITION OF YOST THEATER - 307 NORTH SPURGEON STREET The Executive Director/Economic Development stated that in mid-1984, the Agency approved the City's participation in the H.U.D. Section 108 Loan program. He added that this program provided funds for a series of developments in the downtown area, one of which was a festival market center. He pointed out that initially staff wished to proceed with a Request for Proposal in order to find interested developers, but that, subsequently, it was decided to proceed with the property owners in the area as the developer of the market center and to try to structure a Disposition and Development Agreement that would allow maximum owner participation. He stated that, since July, staff has been working toward having the understandingsand sound draft proposal which now exists. He pointed out that staff had requested the Council to expand the boundaries of the original site to include additional properties to use in substitution for the original 108 Grant Application site. He added that one of these added properties is the Yost Theater which the owner, Louis Olivas, has requested that the Agency purchase, on a voluntary basis. In response to a question from Mrs. McGuigan, The Executive Director/Development Services stated that the Agency has approximately $2.8 million which could be used to purchase property for this development. He added that he had a list of properties which were earmarked for acquisition and would be happy to circulate it to the Agency Members. In response to questions from Mr. Luxembourger, the Executive Director/Economic Development stated that staff had been discussing with Mr. Olivos the possibility of a short-term leaseback of the theater for part-time use. He added that the theater is about 80% complete in terms of its seismic rehabilitation and that the tenant improvements would have to be geared to those programs which will be developed for the theater. The City Manager then assured Mr. Luxembourger that the theater would be assigned an inventory number at the time of outright ownership by the City, and would appear as a "line" item in the budget. In response to a question from Mr. Young, the Executive Director responded that there was a first mortgage of approximately $600,000 on the Yost Theater and that Mr. Olivos' other properties, the West Coast Theater and his residence, shared in any other encumbrance that might exist. He added that Mr. Olivos had financed all seismic work on the Yost Theater privately. The Executive Director pointed -4- . out that the appraisal found the Yost Theater to be worth slightly less than $600,000 and that Agency staff had contacted the bank which was about to foreclose on the property, and asked them to stay this action for a week so that the Agency would have the opportunity of buying the property. He added that Agency could buy the property before or after foreclosure but that staff felt the appropriate action would be to help Mr. Olivos out of his difficulty and save him from the foreclosure. In response to further questions from Mr. Luxembourger, the City Attorney stated that the Agency would not close escrow without receiving a clear title to the Yost Theater. After further discussion, it was moved by Mr. Young, seconded by Mr. Hart that the Agency authorize appraisal of real property, real property improvements, and fixtures and equipment of the Yost Theater, 307 North Spurgeon Street, for a fee not to exceed $3,000, and authorize acquisition of said theater, for a total cost not to exceed $600,000.00. AYES: Acosta, Griset, Hart, Johnson, Luxembourger, McGuigan and Young . NOES: None ABSENT: None BARRISTER BUILDING LTD. - DEFERRED LOAN (OLD CITY HALL) The Deputy City Manager/Development Services stated that the adoption of Resolution 85-13 would allow the Agency to rewrite its present interest-free deferred loan to a 10% interest bearing loan which would be assumed by a restructured and financially stronger owner of the Barrister Building. He added that the rewriting of the loan will facilitate the renegotation of a $2,219,000 construction loan (plus delinquent interest) to an even $2,000,000 loan thereby avoiding a foreclosure that would otherwise jeopardize or eliminate the Agency's second lien position. He pointed out that the interest would be non-accruing in order to allow the new ownership time to lease up the building and that payments would then be accelerated as rental revenues increase until the loan is paid in full. . After a discussion period, it was moved seconded by Mr. Acosta that the Agency: by Mr. Young, 1. Adopt Resolution No. 85-13: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE REFINANCING OF A REHABILITATION LOAN SECURED BY PROPERTY LOCATED AT 217 NORTH MAIN STREET. -5- . .'.., . . . 2. Authorize the drafting and execution promissory Note and Deed of trust. a of AYES: Acosta, Griset, Hart, Johnson, Luxembourger, McGuigan and Young NOES: None ABSENT: None AGENCY AGENDA ITEMS Mr. Johnson moved that the Agency authorize Agency staff to proceed with the notice and hearing requirements of C.C.P. Section 1245.235 to adopt a Resolution of Necessity to acquire the property occupied by Ace Muffler Shop for the Santa Ana Downtown Plaza development. The Secretary to the Agency read the following statement into the record: "The Legal Counsel requests that the Redevelopment Agency recess to closed session, pursuant to Government Code Sec. 54956.9(a) to confer with its Attorney regarding pending litigation which has been initiated formally, and to which the Redevelopment Agency is a party. Identification of such litigation would jeopardize the Agency's ability to conclude existing settlement negotations to its advantage." EXECUTIVE SESSION The Agency Members retired to Executive Session at 6:15 P.M. and returned to the Council Chambers at 7:00 P.M. with all Members in attendance. AGENCY AGENDA ITEMS - RESOLUTION OF NECESSITY TO ACQUIRE ACE MUFFLER SHOP It was moved by Mr. Johnson, seconded by Mr. Hart that the Agency authorize staff to proceed with the notice and hearing requirments of C.C.P. Secion 1245.235 to adopt a Resolution of Necessity to acquire the property occupied by the Ace Muffler Shop for the Santa Ana Downtown Plaza development. AYES: Griset, Hart, Johnson, Luxembourger, McGuigan and Young NOES: Acosta ABSENT: None -6- ". .' '.... . . . Mr. Luxembourger then addressed the Chair and said that he wished to state, for the record, that he was very distressed to have to vote in favor of the Resolution of Necessity to acquire the property occupied by the Ace Muffler Shop and that the only reason he had voted for the motion was that he felt he must protect the City from having to pay a very large damage settlement to the developer, URBATEC. He added that it was his hope that, henceforth, the Agency Members would have more than one developer from which to choose and that, if this was not the case, he would refuse to vote. Mrs. McGuigan then moved, seconded by Chairman Griset that the Agency request the City Attorney to reword the City Ordinance governing the vote of the Redevelopment Agency to require a two-third vote on any procedure having to do with a Disposition and Development Agreement. AYES: Acosta, Griset, Hart, Johnson, Luxembourger, McGuigan and Young NOES: None ABSENT: None ADJOURNMENT There being no further business to come before the Agency, Chairman Griset adjourned the meeting at 7:10 P.M. ~þ blJ Daniel E. Griset Chairman Executive Director -7-