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HomeMy WebLinkAbout06/17/1986 . . . AGENDA JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL CHAMBERS 22 CIVIC CENTER PLAZA SANTA ANA, CALIFORNIA JUNE 17, 1986 5:30 P.M. COUNCIL CALL TO ORDER PLEDGE OF ALLEGIANCE TO THE FLAG INVOCATION ROLL CALL 1. MINUTES 2. Recommendation: Approve the Minutes for the Meeting of the Community Redevelopment Agency held May 20, 1986. PUBLIC HEARINGS A. JOINT PUBLIC HEARING REGARDING DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE A-12 SITE WITH URBAN VENTURES AND McMAHAN'S FURNITURE ASSOCIATES Recommendation: 1. Consider and certify the Supplemental Environmental Impact Report and its accrued relative testimony; 2. adopt Resolution No. 86-25: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY, URBAN VENTURES CORPORATION AND McMAHAN'S FURNITURE ASSOCIATES; 3. approve the conceptual plans proposed by Urban Ventures for the A-12 site; and 4. approve the project budget and authorize its implementation by the Redevelopment Commission. Council Recommendation: Adopt a Resolution: 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, URBAN VENTURES CORPORATION AND McMAHAN'S FURNITURE ASSOCIATES 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. Commission Recommendation: Redevelopment Agency: That the 1. approve a Disposition and Development Agreement with Urban Ventures and McMahan's Furniture Associates, and adopt the appropriate resolution; 2. approve the conceptual plans proposed by Urban Ventures for the A-12 site; 3. approve the project budget and authorize its implementation by the Redevelopment Commission; and 4. consider and certify the Supplemental Environmental Impact Report and its accrued relative testimony. B. JOINT PUBLIC HEARING REGARDING DISPOSITION AND DEVELOPMENT AGREEMENT WITH SCHURGIN DEVELOPMENT CORPORATION Recommendation: 1. Adopt Resolution No. 86-27: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY AND SCHURGIN DEVELOPMENT CORPORATION; 2. approve the conceptual development plans proposed by Schurgin Development Corporation; and 3. approve the project budget and authorize its implementation by the Redevelopment Commission. Council Recommendation: 1. Adopt a Resolution: 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 2. . . . 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 SCHURGIN DEVELOPMENT CORPORATION FOR THE SALE OF CERTAIN REAL PROPERTY IN THE NORTH HARBOR BOULEVARD REDEVELOPMENT PROJECT AND APPROVING THE SALE OF SAID REAL PROPERTY UPON THE TERMS AND CONDITIONS CONTAINED IN THAT AGREEMENT; 2. approve an agreement with F. MacKenzie Brown to provide bond counsel services for the issuance of assessment district bonds for storm drain improvements; and 3. approve an agreement with Miller & Schroeder Financial, Inc. to provide underwriting services for the assessment district bonds. Commission Recommendation: Redevelopment Agency: That the 1. approve a Disposition and Development Agreement with Schurgin Development Corporation for the Harbor Drive-In site; 2. approve the conceptual development plans proposed by Schurgin Development Corporation for the site; and 3. approve the project budget and authorize its implementation by the Redevelopment Commission. 3. RESOLUTION A. APPROVAL OF ASSIGNMENT AGREEMENT FOR THE C-7 SITE Recommendation: Adopt Resolution No. 86-24: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE ASSIGNMENT BY MAIN STREET PARTNERS OF ITS INTERESTS IN AN OWNER PARTICIPATION AGREEMENT WITH THE AGENCY TO LINCOLN TOWN CENTER ASSOCIATES. Commission Recommendation: That the Redevelopment Agency adopt Resolution No. 86-24: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE ASSIGNMENT BY MAIN STREET PARTNERS OF ITS INTERESTS IN AN OWNER PARTICIPATION AGREEMENT WITH THE AGENCY TO LINCOLN TOWN CENTER ASSOCIATES. 3. . . . . . , . 4. LOANS A. SHORT-TERM BANK LOAN TO COMPLETE PAYOFF OF THE SANTA FE LAND NOTE Recommendation: Approve a I-year, $4,000,000 Agency Loan from Swiss Bank Corporation to complete payoff of the Santa Fe Land Note. Commission Recommendation: This matter will be presented to the Redevelopment Commission for its consideration on June 17. Any action taken by the Commission will be forwarded to the Agency at its evening meeting. 5. GRANT EASEMENT A. SANTA ANA AUTO MALL - GRANT OF EASEMENT TO PACIFIC BELL Recommendation: Authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute on behalf of the Agency that certain Grant of Easement to convey an easement from the Agency to Pacific Bell over strips of land located within the City of Santa Ana Auto Mall development site. Commission Recommendation: Not appli cable. 6. EXEMPTION FROM AGENCY POLICY A. EXEMPTION OF REDEVELOPMENT PROJECTS FROM THE AGENCY'S PREVAILING WAGE POLICY Recommendation: Approve the attached list of projects for exemption from the provisions of the Agency's prevailing wage policy. Commission Recommendation: Not applicable. 7. AGENCY AGENDA ITEMS COMMUNICATIONS FROM THE PUBLIC 8. 9. ADJOURNMENT 4. ~ " MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL JUNE 17, 1986 . The Joint Regular Meeting of the Community Redevelopment Agency and the City Council was called to order by Vice Chairman Johnson at 5:50 P.M. in Council Chambers. Following the Pledge of Allegiance, the Invocation was given by Agency Member McGuigan. Roll was then called: PRESENT ABSENT John Acosta Daniel E. Griset, Chairman (6:45 PM) P.Lee Johnson, Vice Chairman R. f. Luxembourger Patricia McGuigan Dan Young Wilson Hart Others in attendance: . David N. Ream, Executive Director/Economic Development Edward J. Cooper, City Attorney Jan Perkins, Deputy City Manager/Operations Rex Swanson, Deputy City Manager/Development Services Patti Nunn, Project Area Manager Robert Kooi, Downtown Development Commission Director Mellmary McNeely, Agency Secretary Rob Selway, Owner of the Minter House Allan Lynch, Schurgin Development Corporation MINUTES It was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (5:0) that ,the Minutes for the Meeting of the Community Redevelopment Agency, held May 20, 1986, be approved as received. EXECUTIVE SESSION . The Agency Members adjourned to Executive Session at 5:52 P.M. and returned to the Council Chambers at 6:01 P.M. with all members present. The Agency Secretary read the following statement:"The Legal Counsel requests that the Redevelopment Agency recess to closed session, pursuant to Government Code Section 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. The title of the litigation is Community Redevelopment Agency vs. Overby. -5 . . .. °,, The Legal Counsel requests that the Redevelopment Agency recess to closed session pursuant to Government Code Section 54956.8 to give instructions to the City's Negotiator regarding negotiations with William Romo concerning the purchase of the property located at 410 North Main Street." JOINT PUBLIC HEARING REGARDING DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE A-12 SITE WITH URBAN VENTURES AND McMAHAN'S FURNITURE ASSOCIATES Vice Chairman Johnson announced 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 A-12 site by the Community Redevelopment Agency of the City of Santa Ana to Urban Ventures, a California corporation, and that the site is generally bounded by Third Street on the North, Birch Street on the West, First Street on the South and Broadway on the East. He then asked that staff identify the property and give the staff réeommendation. The Executive Director/Economic Development asked the Downtown Development Commission Director to make the staff presentation. The Downtown Development Commission Director stated that all of the consultants involved in the A-12 development were present and available for questions. He pointed out that there were four points to be approved by the Agency: 1) Supplemental Environmenta Impact Report; 2) Disposition and Development Agreement between the Agency, Urban Ventures Corporation and McMahan's Furniture Associates; conceptual plans proposed by Urban Venture for the A-12 site; and the project budget which will be implemented by the Redevelopment Commission. He pointed out that Rob Selway, representing Minter House was present, and that the Agency Members had all received copies of a letter from Mr. Selway and Mr. Marshall which outlined their concerns regarding the proposed development of the A-12 site. The Downtown Development Commission Director then made a comprehensive slide presentation which showed the site as it now exists, the proposed site plans, and architectural renderings. Following the slide presentation, Mr. Rob Selway of Minter House addressed the Agency and expressed his thanks for the staff work done by both the Executive Director/Economic Development and the Downtown Development Commission Director. He then made reference to a letter which was prepared by David N. Ream and Roger Kooi which addressed some of his concerns regarding the impact of the proposed A-12 development on the Minter house and asked that the Agency make a commitment to the conditions of that letter. He then stated that the owners of the Minter House had worked with staff and that, through negotiations with the developer, one and one-half units had been removed from the northwest corner of the development so that the height of the development would not so severely impact the Minter House. He added that they would now like to see 2. 1 .. . .. .' removed further reduction in the for several other units negative impact. The Vice Chairman asked if there was anyone else who wished to speak either for or against the proposed development. He then asked if the Agency Members had any questions of staff or of anyone who had addressed the Agency. In response to questions from Agency Member McGuigan, the Executive Director/Economic Development stated that the recommendation concerning the reduction in the number of units in the development would have to have further study. He added that the loss of units was not the problem but the effect of the reduction on the architectural plans for the development. He pointed out that this reduction of units was considered by the Planning Commission and that they elected not to incorporate it in their findings but asked to be kept apprised of any changes that might be made in the plans to accommodate such a reduction. The Vice motion. Chairman then announced that he would entertain a It was moved by Agency Member Young, seconded by Agency Member Luxembourger and approved unanimously (5:0) that the Community Redevelopment Agency: 1. Consider and certify the Supplemental Environmental Report and its accrued relative testimony; Impact z. adopt Resolution No. 86-25: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY, URBAN VENTURES CORPORATION AND McMAHAN'S FURNITURE ASSOCIATES; 3. approve the conceptual plans proposed by Urban the A-IZ site; and for Ventures 4. approve the project budget and authorize its implementation by the Redevelopment Commission. JOINT PUBLIC HEARING REGARDING DISPOSITION AND AGREEMENT WITH SCHURGIN DEVELOPMENT CORPORATION DEVELOPMENT Vice Chairman Johnson announced 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 Harbor Drive-In Site to Schurgin Development Corporation. He added that the site is located on the southeast corner of Harbor Boulevard and McFadden Avenue. He then asked that staff identify the property or issues and give the staff recommendation. The Executive Director/Economic Development called upon the Redevelopment Officer Mrs. Cindy Nelson, and the Project Manager, Mrs. Patti Nunn, to make the staff presentation. 3. :;- . . .. The Project Manager introduced Mr. Allan Lynch from Schurgin Development Corporation and asked that he give an overview and slide presentation of the project. Mr. Lynch thanked the Vice Chairman and Agency Members for the opportunity make a presentation on the proposed development for the Harbor Drive-In site. He pointed out that Schurgin Development Corporation was a private developer who had been responsible for the development of 55 shopping centers throughout the United States since 1944. He added that Schurgin retained the ownership of these shopping centers and had great pride of ownership in all of their developments. He stated that Schurgin worked with tenants who were promotional and generated high sales volumes on a national basis. He pointed out that these tenants often participated in more than one development. He added that Schurgin provided quality of construction and attention to detail in all of their developments. He then made a slide presentation showing several Schurgin developments which are similar to the one being proposed for the Harbor Drive-In site. Mr. Lynch stated that Schurgin expected the proposed development to generate approximately $600,000 sales tax revenue to the city in the first year and reach the $1 million mark in ten years. Mr. Lynch then thanked the Agency's staff, namely, Patti Nunn, David Ream, Edward Cooper and his staff, and the Agency's consultant, Richard Botti, for their cooperation. The Project Manager, Mrs. Patti Nunn, addressed the Agency and stated that Schurgin was paying fair market value for the site and was advancing the funds to the Agency for its purchase. She added that the Agency will participate in the project as an equity partner and will receive 10% of the net cash flow with no preferred return to the developer, beginning in the fourth year of operations and continuing for ten years. She pointed out that the Agency will enter into negotiations with the owner of the Harbor Drive-In site and its long-term lessee, adding that the Agency may have to pass a Resolution of Necessity to acquire the property if negotiations are not successful. She stated that the construction of a storm drain that will service the site and the Harbor Boulevard area is an integral part of the Schurgin development, adding that of the estimated cost of $900,000, Schurgin is required to pay $225,000. She stated that staff was proposing to finance the additional costs through the formation of an assessments district and, in order to structure the financing, issue the bonds, and construct the improvements within the necessary time frames, staff is recommending that the City Council approve entering into contracts for bond counsel and underwriting services. She stated that this would be considered to be a small bond issue and that F. MacKenzie Brown, bond counsel, and Miller & Schroeder Financial, underwriter, were being recommended by staff since they not only had this particular expertise but had also worked successfully with the city on prior issues. 4. I, .'. . . ... ." In response to Vice Chairman Johnson, the City Clerk stated that there were no written communications. The Vice Chairman then asked the persons in agreement with the proposed sale to step forward to the podium. South spoke favor of the Alder, in Mr. David Lopez, of 829 proposed development. Agency Member McGuigan thanked Mr. Lopez for his support and added that, since the Schurgin development was in the Ward she represented, she wished to assure the other Agency Members that many of her constituents had expressed their support for the proposed development. Vice Chairman Johnson asked to hear from the persons disagreeing with the proposed sale. No one responded. He then called for questions from Agency Members. In response to a question from Agency Member Luxembourger, the Project Manager stated that she knew of no plans to save the old Eucalyptus trees but would discuss the matter with the developer. the the the In response to a question from Agency Member McGuigan, Executive Director/Economic Development stated that Redevelopment Commission had unanimously recommended Schurgin development. In response to the Vice Chairman's call for a motion, it was moved by Agency Member McGuigan, seconded by Agency Member Acosta and unanimously approved (5:0) that the Community Redevelopment Agency: 1. Adopt Resolution No. 86-27: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY AND SCHURGIN DEVELOPMENT CORPORA TI ON; plans proposed by 2. approve the conceptual development Schurgin Development Corporation; and approve the project budget and authorize its implementation by the Redevelopment Commission. 3. APPROVAL OF ASSIGNMENT AGREEMENT FOR THE C-7 SITE It was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (5:0) that the Agency adopt Resolution No. 86-24: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE ASSIGNMENT BY MAIN STREET PARTNERS OF ITS INTERESTS IN AN OWNER PARTICIPATION AGREEMENT WITH THE AGENCY TO LINCOLN TOWN CENTER ASSOCIATES. 5. 7 . . . ... SHORT NOTE TERM BANK LOAN TO COMPLETE PAYOFF OF THE SANTA FE LAND It was moved by Agency Member Young, seconded by Agency Member Acosta and carried unanimously (5:0) that the Agency approve a I-year, $4,000,000 Agency loan from Swiss Bank Corporation to complete payoff of the Santa Fe Land Note. SANTA ANA AUTO MALL - GRANT OF EASEMENT TO PACIFIC BELL It was moved by Agency Member McGuigan, seconded by Agency Member Young and carried unanimously (5:0) that the Agency authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute on behalf of the Agency that certain Grant of Easement to convey an easement from the Agency to Pacific Bell over strips of land located within the City of Santa Ana Auto Mall development site. EXEMPTION FROM AGENCY POLICY In response to a question from Agency Member Acosta, the Executive Director/Economic Development stated that all of the corrections and deletions requested by the Agency Members were reflected in the list of projects for exemption. It was then moved by Agency Member McGuigan, seconded by Agency Member Young and carried unanimously (5:0) that the Agency approve the attached list of projects for exemption from the provisions of the Agency's prevailing wage policy. AGENCY AGENDA ITEMS - REDEVELOPMENT AGENCY VS. OVERBY It was moved by Agency Member Luxembourger, seconded by Agency Member McGuigan and carried unanimously (5:0) that a settlement of $137,000 be approved in the litigation of Community Redevelopment Agency vs. Overby. AGENCY AGENDA ITEMS - PURCHASE OF 410 N, MAIN STREET It was moved by Agency Member Young, seconded by Agency Member Luxembourger and carried unanimously (5:0) that the Agency authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute on behalf of the Agency that certain agreement entitled "Agreement for Acquisition of Real Property and Escrow Instructions", between the Agency and William H. Romo, for the purchase of real property at 410 N. Main Street, in the amount of $440,000.00. AMENDMENTS TO BOND RESOLUTION THROUGH D TAX ALLOCATION BONDS $98.5 SERIES A FOR MILLION It was moved by Agency Member Young, seconded by Agency Member Johnson and carried unanimously (5:0) that the Redevelopment Agency: 6. 8' . '. . . ',.. Adopt Resolution No. 86-33: RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. 85-53. (Series A) . Adopt Resolution No. 86-34: RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. 85-54. (Series B) Adopt Resolution No. 86-35: RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. 85-55. (Series C) Adopt Resolution No. 86-36: RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. 85-56. (Series D) The Executive Director/Economic Development stated that the adoption of Resolutions Nos. 86-29, 86-30, 86-31, and 86-32 will be considered at a later date. AGENCY AGENDA ITEMS - FUND TRANSFER FOR PURCHASE OF PROPERTY FOR THE DOWNTOWN PARKING FACILITY (410 N. MAIN) (APPROPRIATIONS ADJUSTMENT NO. 320) . It was moved by Agency Member Young, seconded by Agency Member McGuigan and carried unanimously (5:0) that the Agency approve repayment of $440,000 from the South Main Project Area to the General Fund for the purpose of providing funds to purchase the property located at 410 N. Main in the Central City Project Area. Chairman Griset arrived in the Council Chambers at 6:45 P.M. ADJOURNMENT There being no further business to come before the Agency the meeting was adjourned at 6:48 P.M. Rtâl~ Executive Director . 7. 1