HomeMy WebLinkAbout11/18/1986
MINUTES
JOINT REGULAR MEETING
COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL
NOVEMBER 18, 1986
tlÞThe Joint Regular Meeting of the Community Redevelopment Agency/City
Council was called to order by Chairman Daniel E. Griset at 6:01 P.M.
in Council Chambers, 22 Civic Center Plaza, Santa Ana, California.
Following the Pledge of Allegiance to the Flag, the Invocation was
given by Councilmember McGuigan. The roll was then called:
PRESENT
ABSENT
John Acosta
Daniel E. Griset, Chairman
R. W. Luxembourger
Patricia McGuigan
Dan Young (6:45 P.M.)
P. Lee Johnson, Vice Chairman
Wilson Hart
Others in attendance:
.
David N. Ream, City Manager
Edward J. Cooper, City Attorney
Rex Swanson, Deputy City Manager/Development
Jan Perkins, Deputy City Manager/Operations
Robert Hoffman, Real Estate Manager
Patti Nunn, Project Manager
Pat Whitaker, Neighborhood Improvement Manager
Mellmary McNeely, Agency Secretary
Kirk Evans, Kirk S. Evans, Inc.
MINUTES
It was moved by Agency Member Acosta, seconded by Agency Member
Luxembourger and carried unanimously (4:0) that the Minutes for the
Regular Meeting of the Community Redevelopment Agency, held October 21,
1986, be approved as received.
PUBLIC HEARING TO ADOPT RESOLUTION 86-53 DIRECTING CONDEMNATION OF
BILLBOARDS WITHIN THE A-12 DEVELOPMENT SITE (228 N. BROADWAY AND 314 W.
THIRD STREET)
The City Attorney requested that the Agency Members delay the subject
Public Hearing until after the Agency's Executive Session.
When the Agency Members Acosta, Griset, Luxembourger, McGuigan and
. Young returned from the Executive Session at 7:05 P.M., the following
motion was made:
It was moved
Luxembourger
by Agency Member McGuigan,
and carried unanimously
seconded by
(5:0) that
Agency Member
the Community
Redevelopment Agency agree to a settlement of $30,000 ($15,000 per
panel) with Gannet Outdoor Company for the two outdoor advertising
signs situated on real property located at 210-228 North Broadway and
304-314 West Third Street in the City of Santa Ana.
~UBLIC HEARING TO ADOPT RESOLUTION 86-54 DIRECTING CONDEMNATION OF
PROPERTY WITHIN THE A-8 DEVELOPMENT SITE (202-210 E. FOURTH STREET &
313 N. BUSH; A.P. NOS 398-503-01 & 02)
The City Manager advised the Agency Members that it would require five
members of the Agency to be present and voting on the subject Public
Hearing; hence, the Public Hearing to adopt Resolution No. 86-54 was
not convened until after Council Member Young's arrival at 6:45 P.M.
Chairman Griset declared that it was the time and place for the Public
Hearing on the issue of the public necessity to acquire by condemnation
a property identified by Assessor Parcel Number, as Book 398, Page and
Block 503, Parcels 01 and 02, 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, and
requested that staff set forth why the public interest and necessity
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 of
record, or any offer has not been made because the owner cannot be
located with reasonable diligence.
The Real Estate Manager pointed out that the Public Hearing was being
held for property which was located within the A-8 Development site as
a part of the Fiesta Marketplace Partners development which will
provide for a new multi-plex theater, 3,600 square feet of adjoining
retail shopping, aI, 500 square foot "food court" as well as two
two-level buildings totaling 58,000 square feet with ground floor
retail and upper floor office space, and a rehabilitated Yost Theatre
and Ritz Hotel. He added that the Redevelopment Agency will design and
construct parking facilities which will provide approximately 350
surface parking spaces as well as 750 spaces within a parking
structure. He stated that this project is intended to provide clean,
safe and decent retail, commercial and entertainment facilities and
will provide a cultural center for both the City of Santa Ana and the
County of Orange. The Real Estate Manager then read the following
excerpt from Redevelopment Plan Objectives, as adopted by the Agency:
"The objectives of the Redevelopment Plan are to restore the economic
and social health of the Santa Ana downtown area, make the area a
source of pride to persons residing and working in Santa Ana or
~isiting the City, guide development towards an urban environment
preserving the aesthetic and cultural qualities of the City, assist in
the re-establishment of businesses within the project area, and
stimulate and attract private investment thereby improving the City's
economic health, employment opportunities and the tax base. The
foregoing objectives shall be accomplished through removal of
2
structurally substandard buildings, elimination of blighting
influences, provision of substantial offstreet parking through the use
of multi-story parking structures, removal of impediments of land
disposition and development, and achievement of changes in land use."
The Real Estate Manager said that, in his opinion, the Fiesta
tlÞMarketplace development, which necessitated the proposed condemnation,
was an implementation of this stated Agency objective. The Real Estate
Manager then advised that he wished to incorporate by reference the
Staff Report, dated October 21, 1986, which was contained in the agenda
packet provided to the Agency Members for this Public Hearing. He
added that the owners of the subject properties were extended an
invitation to participate in the Fiesta Marketplace project, but
declined and that the Agency had offered fair market value as
established by an independent appraiser to purchase each of the subject
properties and that each owner had declined such offer to purchase.
The Agency Secretary affirmed
written communications.
to
the
Chairman
that
there
were no
The Chairman then stated that the Agency would like to hear from those
people who desired to address the Agency on this issue and asked them
to keep in mind the requirements of Section 1245.235 of the Code of
Civil Procedure that all comments should only address the following
four issues:
1) Whether the public interest and necessity require the project; 2)
tlÞwhether the project is planned or located in the manner that will be
most compatible with the greatest public good and the least private
injury; 3) whether the property sought to be acquired is necessary for
the project; or, 4) whether an offer, as required by Section 7267.2 of
the Government Code, has been made to the record owner.
There being no one who wished to address the Agency the Chairman
declared the Public Hearing closed and called for a motion.
It was moved by Agency Member McGuigan, seconded by Chairman Griset and
carried unanimously (5:0) that the Agency adopt Resolution No. 86-54:
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-8 DEVELOPMENT SITE IN THE CITY OF
SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY
THEREFOR (202-210 EAST FOURTH STREET AND 313 NORTH BUSH STREET).
JOINT PUBLIC HEARING REGARDING
WITH KIRK S. EVANS, INC.
Chairman Griset opened the Public Hearing and, after it had proceeded
~through the staff presentation, Agency Member Acosta stated that he did
~not feel 'that he could support the adoption of Resolution No. 86-59
because Mr. Kirk Evans had not presented an audited financial statement
with his proposal as required by the Request for Proposal. After a
discussion period between staff and the Agency Members, it was
determined that the proper procedure would be to defer the Public
Hearing until such time as Agency Member Young arrived.
DISPOSITION
AND
DEVELOPMENT
AGREEMENT
3
After Agency Member Young's arrival at 6:45 P.M., the Chairman declared
the Joint Public Hearing of the Community Redevelopment Agency and the
City Council of the City of Santa Ana for the proposed sale of property
known as the La Bonita site by the Community Redevelopment Agency of
tlÞthe City of Santa Ana to Kirk S. Evans, Inc., adding that the site is
4.81 acres of land located at 1421 La Bonita Street, just south of
Westminster Avenue. He then asked staff to identify the property or
issues and give the Commission's recommendation as well as the staff's
comments.
Project Manager Patti Nunn stated that Kirk S. Evans, Inc. was awarded
an Exclusive Right to Negotiate for the La Bonita site on August 19,
1986 and that a Disposition and Development Agreement had been
negotiated for the development of the 4.81 acre site located south of
Westminster Avenue between Euclid and Newhope Streets. She pointed out
that the La Bonita site was originally purchased from the Garden Grove
Unified School District by the City to be used as a park but that,
after passage of Proposition 13, funds were not available to develop
the site and the decision was made to sell the land to the Agency for
the appraised value, with the understanding that the Agency would
market the site for housing development and that the proceeds of the
sale would go toward the improvement of Rosita Park. She stated staff
had worked diligently with Mr. Evans to finalize the proposal now
being submitted for approval, adding that this proposal called for the
development of 48 single-family detached homes on individual lots
averaging 3,000 square feet, that the development is situated on a
tlÞprivate street with a loop configuration that measures 36 feet wide
except at the southerly tip where it measures 32 feet wide, and that
all the units are two stories and feature three bedrooms. She stated
that the purchase price of the land to be paid by the developer is
$18,000 a unit for a total of $864,000 and that construction on the
project will begin within 90 days of conveyance of the site which is
expected to occur in January, 1987. She pointed out that the developer
has secured financing from Charter Savings Bank, who has provided an
Offering Letter, dated July 21, 1986, confirming a loan commitment
through 12:00 noon December 31, 1986. The Project Manager stated that
Mr. Evan's proposal was presented to the Community Redevelopment
Commission at their Meeting of November 4, 1986 and that the Commission
recommended that the Redevelopment Agency: 1) Approve a Disposition and
Development Agreement with Kirk S. Evans, Inc. for the La Bonita site
and authorize the Chairman to execute the necessary documents; and 2)
approve the conceptual development plans proposed by Kirk S. Evans,
Inc. for the site. She then introduced Mr. Kirk Evans for further
comment on his proposed development.
The Chairman and Members of the Agency agreed that they did not feel it
was necessary for them to look at a slide presentation which Mr. Evans
~ad available in Council Chambers. Mr. Evans stated that he wished to
thank the Agency staff who had given him great support and enabled him
to bring back a proposal which is, in his opinion, superior to the one
first presented to the Agency. He pointed out that the square footage
of the project had been increased by eliminating the two-bedroom model
4
and making all of the models three-bedrooms, adding that Plan 1 has
three bedrooms, 2 3/4 baths and consists of 1, 213 square feet; Plan 2
and Plan 3 each have three bedrooms, 2 1/2 baths and consist of 1,315
square feet and 1,429 square feet respectively. He advised that the
sales prices will range from $107,000 for Plan 1 to $122,000 for Plan 3
.WhiCh makes them competitive with the surrounding residential area. He
stated that the street which cut through the development had been
eliminated thus providing more open space and that Morningside and
Kraft Streets would still be closed off to discourage through traffic,
adding that the Fire Department had not objected to this proposed
street closing. Mr. Evans stated that his plans were complete and that
he hoped to be under construction by the end of the summer.
The Agency Secretary confirmed to Chairman
written communications.
Griset
that
there
were
no
No one responded when he asked if there were others present who wished
to speak in favor of or against the subject resolution.
The Chairman then called for comments from Agency Members. Agency
Member Acosta stated that, after reaching a better understanding of Mr.
Evan's financing, he was now prepared to support the subject resolution
but that he wished to caution staff that, in the future, if a Request
for Proposals stipulated that the developer had to submit an audited
financial statement with his proposal, he expected the Agency staff to
insist that the developer fulfill this requirement. He added that he
.felt each developer should be expected to meet all of the requirements
of any Request for Proposals issued by the Agency.
It was then moved by Agency Member McGuigan, seconded by Agency Member
Luxembourger and carried unanimously (5:0) that the Redevelopment
Agency:
1.
Adopt Resolution No. 86-59: A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A
DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND KIRK
S. EVANS, INC.; and
2.
Approve the conceptual development plans proposed by Kirk S. Evans,
Inc. for the site.
JOINT PUBLIC HEARING REGARDING DEVELOPMENT AGREEMENT WITH CIVIC CENTER
BARRIO HOUSING CORPORATION FOR DEVELOPMENT OF THE JACKSON PARK SITE
This item was considered
arrival at 6:45 P.M.
by the Agency prior to Agency Member Young's
The Chairman advised that it was the time and place for the Joint
.PubliC Hearing of the Community Redevelopment Agency and the City
Council of the City of Santa Ana for the proposed sale of property
known as the Jackson Park site by the Community Redevelopment Agency of
the City of Santa Ana to Civic Center Barrio Housing Corporation,
adding that the site is a one-half acre square parcel of land located
5
four blocks east of Harbor Boulevard on the west side of Jackson Street
between First Street and Fifth Street. He then asked staff to identify
the property or issues and give the staff recommendation.
The City Manager asked Project Manager Patti Nunn to make the staff
presentation.
.The Project Manager stated that, on February 19, 1985, the
Redevelopment Agency approved a Sales and Development Agreement with
the Civic Center Barrio Housing Corporation for the development of
Jackson Park. She pointed out that this was a park site that the City
sold to the Agency for the purpose of providing low-income housing.
She added that the Agency had granted five extensions to the Agreement
due to the difficulty experienced by the Civic Center Barrio Housing
Corporation in securing construction financing for owner-built,
low-income units. She added that now the Civic Center Barrio Housing
Corporation was proposing to build four four-bedroom units and three
three-bedroom units for rental to qualified low-income families. She
added that the rent to be charged for the units will be based on HUD
Section 8 rentals, which specifies $750 per month for a three-bedroom
unit and $830 per month for a four-bedroom unit. She stated that the
site is being sold to Civic Center Barrio Housing Corporation for
$30,000 and that approval is being sought to utilize $29,500 in
Community Development Block Grant funds, earmarked for fees and permits
for the La Bonita site, for the land purchase, adding that Civic Center
Barrio Housing Corporation will provide the additional $500 of the
purchase price. She pointed out that construction and permanent
.finanCing are being funded by Mercury Savings and Loan Association and
that Civic Center Barrio Housing Corporation is requesting a $50,000
Housing Infill Loan, adding that $80,000 of the A-9 lawsuit settlement
money will also be utilized for the cost of construction. She advised
the Agency Members that the elevations for the proposed development
were on display in the Council Chambers and that the Neighborhood
Improvement Manager was available to answer any questions the Agency
Members might have.
The Agency Secretary affirmed
written communications.
to
Chairman
Griset that there were no
No one responded when the Chairman asked if there were those present
who wished to speak in support of or against the proposed resolution.
The Chairman then asked if there were questions from the Agency Members.
In response to questions from Agency Member McGuigan, the
Manager stated that the proposed structure would be built by a
contractor and not with "sweat equity" and that the Mercury
loan would be in first position and the Agency's loan would
. second position.
In response to questions from Agency Member Luxembourger, the
Neighborhood Improvement Manager stated that all of the loans that are
contemplated will not exceed the loan to value ratio and that, at the
end of the ten-year loan period when the property is refinanced, it is
expected that the value of the property will have escalated to a point
that the Agency loan can be paid off.
Project
general
Savings
be in
6
In response to further questions from Agency Member Luxembourger, the
Deputy City Manager/Development stated that, typically, when the Agency
is involved in subsidizing through loan terms for housing and
rehabilitation, one of the methods used is the improvement of cash flow
8by deferment of payment, thus allowing the developer to recapture
equity on the inflated value. He pointed out that the Jackson Park
project was creating affordable Section-8 housing and that staff felt
the improvement of cash flow was the appropriate way to assist in the
implementation of the project. He added that, in the past, the Agency
had found that most residential loans can be refinanced successfully.
He stated that, in the next ten years, there probably will be an
appreciation rate of from 3% to 5%, compounded annually, and that,
unless there is a serious deflation of the economy, the Civic Center
Barrio Housing Corporation will be a low-risk to no-risk loan.
In response to further questions from Agency Member Luxembourger, the
Neighborhood Improvement Manager stated that the Civic Center Barrio
Housing Corporation had prior experience in property management and
intended to provide this service for the proposed development of the
Jackson Park site.
After further discussion, it was moved by Agency Member Luxembourger,
seconded by Chairman Griset and carried unanimously (4:0) that the
Redevelopment Agency:
81.
Adopt Resolution No. 86-60: A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN
AMENDMENT OF AN AGREEMENT FOR THE SALE AND DEVELOPMENT OF REAL
PROPERTY WITH CIVIC CENTER BARRIO HOUSING CORPORATION; and
2.
Approve an Infill New Construction Loan for $50,000 to
Barrio Housing Corporation for the Jackson Park site.
Civic
Center
CONTRACT APPROVAL AND FUND TRANSFER
lAPPROPRIATION ADJUSTMENT NO. 36)
FOR
CITY/AGENCY MEDIAN PROJECTS
It was moved by
Luxembourger and
Agency:
Agency Member Young, seconded by Agency Member
carried unanimously (5:0) that the Redevelopment
1.
Approve the award of contract for landscaping of existing medians
to Valley Crest Landscape, Inc. in the amount of $1,453,809.15.
2. Approve the repayment
Redevelopment Project Area
of providing funds for the
8HARRY GREENBERG DEFERRED LOAN,
of $137,065 from the South Harbor
Fund to the General Fund for the purpose
improvement of medians.
GRAND CENTRAL BUILDING
By unanimous consent of the Agency Members, this item was continued to
a future Agency meeting.
7
RESOLUTION DELEGATING AUTHORITY TO THE EXECUTIVE DIRECTOR OF THE
REDEVELOPMENT AGENCY OR THE CITY MANAGER TO EXECUTE AGENCY CONTRACTS OF
$10,000 OR LESS
It was moved by Agency Member McGuigan, seconded by Chairman Griset and
.carried unanimously (4:0) that the Agency adopt Resolution No. 86-57:
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA DELEGATING AUTHORITY TO THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
AGENCY OR THE CITY MANAGER TO EXECUTE REDEVELOPMENT AGENCY CONTRACTS
NOT EXCEEDING $10,000.
RESOLUTION HONORING THE SERVICES OF ROBERT W. LUXEMBOURGER
It was moved by Agency Member Acosta, seconded by Agency Member
McGuigan and carried unanimously (4:0) that the Redevelopment Agency
adopt Resolution No. 86-61: A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA HONORING THE SERVICES OF
ROBERT W. LUXEMBOURGER.
RESOLUTION HONORING THE SERVICES OF P. LEE JOHNSON
It was moved by Agency Member McGuigan, seconded by Agency Member
Luxembourger and carried unanimously (4:0) that the Redevelopment
Agency adopt Resolution No. 86-62: A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA HONORING THE SERVICES OF
P. LEE JOHNSON.
.EXECUTIVE SESSION
The meeting was adjourned to Executive Session at 6:43 P.M. (Agency
Members: Acosta, Griset, Luxembourger and McGuigan in attendance) and
the Agency Members returned to the Council Chambers at 7:05 P.M.
(Agency Member Young joined the Executive Session at 6:45 P.M.)
AGENCY AGENDA ITEMS
It was moved by Agency Member Luxembourger, seconded by Agency Member
McGuigan and carried unanimously (5:0) that the Redevelopment Agency:
ratify a final offering of compensation in the amount of $150,000
for the real property and $10,820 for the fixtures and equipment in
the case of the Redevelopment Agency v. Chevron (Case No. 452187).
.
The City Manager called the attention of the Agency Members to a
letter, which had been drafted for Mayor Griset's signature, to
President Ronald Reagan regarding the enforcement by the Immigration
and Naturalization Services agents of the recently passed Immigration
Reform and Control Act of 1986.
ratify a final offering of compensation in the amount of $110,000
in the case of the Redevelopment Agency v. Matkin (Case No. 452190).
Ratify a final offering of compensation in the amount of $600,000
in the case of the Redevelopment Agency v. Matkin (Case No. 452189).
8
Agency Member McGuigan stated that she agreed with the spirit of the
letter but was uncomfortable with the concept that the City Council was
trying to tell the Immigration and Naturalization Services how to
perform their duties, adding that she was sure the Council Members
would object if INS tried to tell them how to perform their duties.
4IÞAfter a general discussion in which all of the Agency Members expressed
support for the philosophy expressed in the letter, they asked the City
Manager to make sure that the letter is widely disseminated within the
business community.
ADJOURNMENT
There being no further business to come before the Agency, the meeting
was adjourned at 7:35 P.M. to November 25, 1986 at 7:30 P.M. in Council
Chambers, 22 Civic Center Plaza, Santa Ana, California.
~
.~M~
Daniel E. Griset
Chairman
Executive Director
.
.
9