HomeMy WebLinkAbout01/22/1985
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DOWNTOWN
MINUTES
REGULAR JOINT MEETING
DEVELOPMENT COMMISSION/COMMUNITY REDEVELOPMENT
SANTA ANA, CALIFORNIA
JANUARY 22, 1985
AGENCY
The Regular Joint Meeting of the Downtown Development Commission/Community
Redevelopment Agency was called to order by Vice Chairman P. Lee Johnson at
7: 02 PM in the lower level conference room of the Standard Concrete
Building at 117 West Fourth Street, Santa Ana, California. Following the
Pledge of Allegiance, the roll was called:
PRESENT
ABSENT
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Daniel Griset, Chairman (7:28 PM)
Wilson B. Hart
P. Lee Johnson, Vice Chairman
Robert Luxembourger
patricia McGuigan
Scott Morgan (ex-officio alternate)
Daniel 8. Young
John Acosta
Others in Attendance:
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Robert C. Bobb, City Manager
Jan Perkins, Deputy City Manager/Operations
Rex Swanson, Deputy City Manager/Development
Edward Cooper, City Attorney
Janice Guy, Clerk of the Council
Dave Ream, Executive Director/Economic Development
Phil Freeland, Executive Director/Community Development and Housing
Laurie Cottrell, Executive Director/Communications and Marketing
Roger A. Kooi, Downtown Development Commission Director
Edward V. Henning, Asst. Director Downtown Development Commission
Robert Hoffman, Principal Real Estate Officer
Ken Tomlinson, Santa Ana Police Department
George Gragg, Community Preservation Officer
Gareth T. Craig, Downtown Development Commission Admin. Asst.
Janet Grane, Downtown Development Commission Stenographic Clerk
Angel R. Viley, Downtown Development Commission Temporary Clerk
Mark Briggs, President of Mark Briggs and Associates, Inc.
Irving M. Chase, Greater Eastern Development Corp.
MINUTES
A motion was made by Commissioner Luxembourger, seconded by Commissioner
McGuigan, and carried unanimously (5: 0) to approve the minutes of the
Regular Joint Meeting held on November 20, 1984.
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PUBLIC HEARING
Vice Chairman Johnson announced that this was the time and place for the
Public Hearing on the issue of the public necessity to aquire by
condemnation that property identified by Assessor Parcel Numbers as Book
402, Page and Block 101, parcels 1, 2, 3, 4, 7, 21, 22, 23, 25 and a
portion of parcel 26, and Book 402, Page and Block 112, parcels 1 and 2,
for redevelopment purposes, Vice Chai rman Johnson requested that staff
identify the property or issues and give staff recommendation. David N.
Ream, Executive Director/Economic Development, introduced Robert B.
Hoffman, principal Real Estate Officer of the Economic Development Agency.
Mr. Hoffman read from a prepared statement as follows:
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The property is located west of the Newport-Costa Mesa Freeway,
north of Edinger Avenue and east of Ritchey Street, and contains
approximately 43 acres. Approximately 95% of the site is owned
by the Santa Fe Railway Company and the Santa Fe Land Company,
and is used on an interim basis for agricultural purposes. The
remainder of the site in the vicinity of Trotter Street, which
will serve as the major entryway into the Auto Mall, is occupied
by two service stations, a firewood retailer, a soil and plant
testing laboratory, an industrial hardware distributor, and
restaurant parking.
The redevelopment project is a retail auto mall comprising
dealèrships for at least ten makes of new automobiles.
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The public interest and necessity require the property for the
'following reasons:
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4.
1.
At its meeting of December 18, 1984, the Redevelopment
Agency executed nine Lease, Option and Development
Agreements for redevelopment of all of the subject
properties as an auto mall.
2.
The aformentioned Agreements provide that the Agency
shall convey the subject property to the redevelopers
for development of the auto mall. I
3.
This redevelopment project represents an effort by the
Redevelopment Agency to retain existing auto
dealerships in Santa Ana. It is estimated that the
possible relocation of a substantial number of the
City's present dealerships to other cities would result
in a sales tax loss for the Ci ty of over $800,000 per
year. In addition, recruitment of new dealerships into
the mall, and the general volume increases typically
realized by such "massing" of dealerships, is expected
to produce additional sales tax revenues for the City
of approximately $900,000 per year.
The development of the Auto Mall promotes the goals and
objectives of the Redevelopment Plan for the South Main
Redevelopment project through private commercial
development and capital investment, the development of
vacant land in the project Area, and the improved
market potential for surrounding vacant and
under-utilized parcels.
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The project is planned and located pursuant to meetings and
hearings held by the City's Redevelopment Commission, the
Planning Commission, The Redevelopment Agency and the City
Council. As previously mentioned, 95% of the site is presently
utilized for agricultural purposes, minimizing the number of
businesses which must be relocated. All of the businesses to be
displaced are eligible for and will receive full relocation
assistance benefits according to Federal And State laws.
All of the subject property is necessary for the project in order
to provide adequately sized parcels for dealerships, ,and in order
to ensure adequate access to and visibility of the development.
Offers of just compensation have been made to all record property
owners, pursuan t to Section 7267.2 of the Government Code. In
fact, negotiations continue for all of the subject property,
however, project schedules require that the Agency adopt the
subject resolutions at this time in order to guarantee our timely
possession of the site, and in order to keep our commitments to
the auto dealer developers.
Vice Chairman Johnson requested to hear from those persons in favor and
those persons opposed to the issue.
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Mike Lucey, of 1201 South Beach Blvd. in La Habra, California, spoke as a
property specialist of Chevron U.S.A. Inc. Mr. Lucey expressed opposition
to the redevelopment program using all of the property. He stated that the
Chevron service station currently located on parcel 25 was built in 1971
and is estimated by Chevron to be a potentially viable business for another
25 years. Mr. Lucey stated that the service station owner had received an
offer to purchase which was only for the property rather than one which
included the existing facilities. Mr. Lucey further stated that a building
permi t had been granted by the Ci ty for work which was completed in July,
1984. According to Mr. Lucey, an appraisal is being done by Chevron,
inclusive of both the land and the facility. Upon completion of such an
appraisal, Mr. Lucey indicated that he would submi t the resul ts to the
Agency.
Charles McClung, Jr., an attorney representing Otis Matkin, spoke on behalf
of his client regarding parcels 402-101-21 and 22. Mr. McClung objected to
the necessity of those parcels for this development, pointing out that
these parcels would be part of a 5 acre parcel which is larger than the
other proposed parcels.
'Otis Matkin, of 18041 Blue Ridge Drive in Santa Ana, spoke as the owner of
Soil and plant Laboratory, Inc. which currently occupies parcels 21 and 22.
Mr. Matkin stated that his building was constructed in 1946 and was
specifically designed for his business. Mr. Matkin stated that this was
not a case of redevelopment, but simply a development matter. He further
expressed an opinion that this was not an issue of public good, but,
rather, one of City convenience. Mr, Matkin stated that any attempts to
inflict the least private injury had not been fulfilled because he had
worked to find another location and his present location cannot be
replaced. In addition, Mr. Matkin contended that a suitable relocation
would cost more than double what he had been offered for his property by
the Agency.
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D.W. Sprague, of 5832 Velfield in Huntington Beach, California, spoke as a
representative of the Sixty-Eight Scar teen Corporation/union oil Company of
California regarding parcel 402-10-1-23. Mr. Sprague stated that he
operates a modern facility which he feels would enhance the project rather
than interfere with it. Mr. Sprague further stated that the offer for the
property which he has received from the Agency is "woefully inadequate" and
that he had previously submitted an independently solici ted appraisal to
the Agency.
Following Mr. Sprague's comments, and having no additional individuals
present wishing to comment, the public hearing was declared closed.
Mr. Luxembourger asked if staff planned to widen the street upon which the
subject parcels are located. Rex Swanson, Deputy City Manager/Development,
stated that the street under discussion will be an entrance to the Auto
Center. Mr. Ream explained that it was an important street by its nature,
and that it will be improved and slightly widened. Mr. Luxembourger asked
why the subject street would be a major entry in consideration of the
egress/ingress rights on Ritchey. Mr. Ream replied that there was no
comparison between the two streets in terms of traffic entries. Mr.
Luxembourger then asked, in reference to the service station, if
compensation would be based upon Agency appraisals or on the station's
. appraisals. Mr. Ream replied that Agency appraisals would be used, at
which time Edward Cooper, City Attorney, stated that the Agency was not
committed to dollar amounts at this time.
Chairman Griset entered the meeting at 7:28 PM, at which time Vice Chairman
Johnson deferred to the Chairman.
Mr. Young stated that the meeting was neither the time nor the place to
settle value amounts, and that he hoped the Agency would be sensitive to
particular situations.
Mr. Hart inquired about Mr. Matkin's entitlement, and Mr. Ream deferred to
Mr. Hoffman. Mr. Hoffman assured all that just compensation for the
property, as well as for the cost of relocating, would be forthcoming and
that compensation may be available for Mr. Matkin's loss of good will. Mr.
Hart then asked if "just compensation" was fair market value or replacement
value, to which Mr. Hoffman responded that it was fair market. Mr. Hoffman
went on to explain that, if Mr. Matkin were to purchase a new building, he
would receive more years of use from the new structure than could be
expected from the existing structure.
. Mr. Luxembourger inquired regarding the time factor pertaining to the
relocation. Mr. Hoffman stated that rough grading is scheduled to begin in
late March, but that the dealer improvements on the south portion of the
project were more flexible and that a two month extension would be
possible.
Mr. Luxembourger asked if an extension of time could be incorporated into
the motion. Mr. Swanson suggested, as an alternative, that staff be
instructed to be sensitive to needs regarding relocation and be instructed
to report back to the Agency.
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Ms. McGuigan pointed out that finding a greenhouse to replace Mr. Matkin's
. facility may not be possible, and that the Agency may need to perform
construction. Mr. Swanson replied that such accommodations had been
performed in the past and that the Agency is used to working with special
environs. Vice Chairman Johnson asked if there is a mechanism to lessen
the economic crunch, to which Mr. Swanson replied that financing programs
are available.
Pursuant to the resolution of questions, comments, and discussion, Chairman
Griset called for a vote, It was moved by Mr. Young, seconded by Vice
Chairman Johnson, and carried unanimously (6:0) to adopt the following:
1. Resolution No. 85-02: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (ASSESSOR PARCELS 402-101-01,
402-101-02,402-101-04, AND 402-112-02);
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2, Resolution No. 85-03: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (ASSESSOR PARCELS 402-101-03, AND
402-112-010) ;
3. Resolution No. 85-04: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (1535 TROTTER AVENUE);
4. Resolution No. 85-05: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (2021 EAST EDINGER AVENUE);
5. Resolution No. 85-06: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (1530-1534 TROTTER AVENUE);
, 6. Resolution No. 85-07: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (2031 EAST EDINGER AVENUE);
7. Resolution No. 85-08: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (2051 EAST EDINGER AVENUE);
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8. Resolution No. 85-09: 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 SANTA ANA AUTO
CENTER DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR (2101 EAST EDINGER AVENUE).
REQUEST FOR CONCEPTUAL APPROVAL OF A-8 SITE PRELIMINARY MASTER PLAN AND
AMENDMENTS TO THE EXCLUSIVE NEGOTIATION AGREEMENT
Roger A. Kooi, Downtown Development Commission Director, deferred to Edward
Henning, DDC Assistant Director, to present staff's oral report. Mr.
Henning provided a very brief background on the City's first ownèr/tenant
participation development site.
Mr. Henning then introduced Mark Briggs, President of Mark Briggs and
Associates, who has been serving as an Urban Development Action Grant
(UDAG) consultant on this project. Mr. Briggs presented a summary of the
UDAG program and indicated that the A-8 application would be submitted by
the March 31st deadline.
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Chairman Griset asked what the prospects for this development would be in
the event that the UDAG is not procured. Mr. Briggs stated that such a
scenario would mean higher equity for the owners. Mr. Hart asked what kind
of return the owners would receive for their 30% equity, and Mr. Briggs
replied that 10-15% is all that is expected. Mr. Young asked what was
going to be done about the gap in finances. Mr. Briggs replied that
several financial programs were available to the development entity. Mr.
Young then asked at what point in the schedule the matter of private equity
would come up. Mr. Luxembourger queried about the staging of construction.
Mr. Henning stated that the Agency is buying several buildings within the
si te. Relati ve to over-runs and the cost factor, Mr. Briggs stated that
the development enti ty has to be responsible for its project. Mr. Young
asked if there is now a central ownership entity and if it will be the
party attempting to borrow, to which Mr. Briggs replied that, out of the
Greater Eastern Development Corporation, a limited partnership having
approximately 12 parcels will be formed and will retain parcel ownership.
Mr. Briggs then introduced Mr. Irving M. Chase, of the Greater Eastern
Development Corporation and of Chase Development, who narrated a land use
master plan. Mr. Chase referred to extensive condi tions, covenants, and
restrictions which would be intended to serve the community already in
place.
- Mr. Luxembourger asked what size the proposed parking structure will be.
~ Mr. Kooi stated that both a bond counsel and an economics consultant were
being utilized for the proposed parking structure, with approximately 500
spaces being proposed at this time. Chairman Griset asserted that the
development concept appears to be constantly changing. Mr. Chase responded
that, due to the many individuals involved with the A-8 planning process to
date, it has been a challenge to pinpoint an exact scope of development,
but that it appears at this time that they are close to a final concept.
Mr. Chase also stated that each owner will have to sign development
agreements with the partnership, thereby assuring architectural maintenance
and use controls over the entire A-8 site. Chairman Griset summarized the
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amendment to the development agreement, which will accelerate some
improvements in the Downtown before the rest of the project becomes
operative. Mr. Kooi stated that the amendment gives the Agency the ability
to work toward the removal of four beer bars - El Latino, Chico Club,
Balboa, and El Zarape. Mr. Luxembourger expressed a concern for other
businesses in the area.
A motion was made by Mr. Luxembourger, seconded by Mr. Young, and carried
unanimously (6:0) to conceptually approve the preliminary A-8 site master
plan and development methodology proposed by the Greater Eastern
Development Corporation; and to approve amendments to the September 25,
1984 Exclusive Negotiation Agreement as follows:
A. Provide for prioritized relocation of certain businesses within the
A-8 site master plan; and
B. Extend the effective term of the Exclusive Negotiation Agreement 90
days.
RECESS
At 8: 29 PM a recess was called.
reconvened at 8:39.
The parties present prior to the recess
ORAL COMMUNICATIONS
Mr. Kooi asked Mr. Cooper if it was necessary for the Downtown Development
Commission to designate and formally appoint a Chairman and vice Chairman
independently of the Community Redevelopment Agency. Mr. Cooper stated
that such action was not required.
ADJOURNMENT
There being no further business to come before the Agency/Commission, the
joint meeting was adjourned at 8:42 PM to a regular adjourned meeting of
the City Council on this same day immediately following.
Do.'. a.¡2;~
w
Daniel E. Griset
Chairman
Executive Director/
Economic Development
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