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HomeMy WebLinkAbout04/15/1986 . . . MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/DOWNTOWN DEVELOPMENT COMMISSION APRIL 15, 1986 The Regular Meeting of the Community Redevelopment Agency/Downtown Development Commission was called to order bý Chairman Griset at 5:42 P.M. in the Council Chambers, 22 Civic Center Plaza, Santa Ana, CA. Following the Pledge of Allegiance to the Flag, the Invocation was given by Age~y Member Luxembourger. The roll was then called: -.- PRESENT ABSENT John Acosta Daniel E. Griset, Chairman Wilson Hart P. Lee Johnson, Vice Chairman R. E. Luxembourger Patricia McGuigan Dan Young (5:47 P.M.) Others in attendance: Robert C. Bobb, City Manager Edward J. Cooper, City Attorney David N. Ream, Executive Director/Economic Robert Hoffman, Real Estate Manager Mellmary McNeely, Agency Secretary Development MINUTES It was moved by Agency Member McGuigan, seconded by Chairman Griset and carried unanimously (7:0) that the Minutes for the Joint Regular Meeting of the Community Redevelopment Agency/Downtown Development Commission be approved as received. PUBLIC HEARING REGARDING CONDEMNATION OF PROPERTY WITHIN THE A-8 REDEVELOPMENT SITE (201-203 EAST FOURTH STREET, ASSESSOR PARCEL NO. 398-327-02) Chairman Griset announced that it 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 Numbers, as Book 398, Page and Block 327, Parcel 02 for redevelopment purposes. He pointed out that he would like staff to identify the properties and the project and to comment on the factors and evidence necessitating the condemnation action and 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 greatest public good and the least private injury; why the properties sought to be acquired are necessary for the project; and, whether or not . . . the offers as required by Section 7267.2 of the Government Code have been made to the owners of record, or any offer has not been made because the owners cannot be located with reasonable diligence. The Executive Director/Economic Development called on the Real Estate Manager to make the staff presentation on the proposed condemnation of the subject site. The Real Estate Manager stated that Section 1245.12 (A) of the Code of Civil Procedure required that a Public Hearing be held but that it also stipulated that if no owners of record request to be heard, it was not necessary to proceed with the Public Hearing. He pointed out that none of the owners had expressed interest in speaking at this Public Hearing and for this reason he intended to keep his remarks brief. The Real Estate Manager referred to the Staff Report attached to the Agency's Agenda item and referenced in the Resolution of Necessity and indicated that it was to be considered part of the public record and added that this staff report also addressed the questions delineated by the Chairman. He stated that on August 20, 1985, the Redevelopment Agency entered into an agreement with Fiesta Marketplace Partners for the development of the A-8 site. He added that this development was to include a new multi-plex theater with adjoining retail shops, restaurants, a two-level mixed use building and the rehabilitation of the Yost Hotel and Ritz Theater. He added that approximately 1,100 parking spaces will be provided for this development. He pointed out that the subject property (201-203 East Fourth Street) is owned by Lawrence E. DeCrona and Clifford Z. Battelle and that an offer of the full appraised value of the property has been presented to the record owners and negotiations for the acquisition are continuing. The Real Estate Manager identified the subject site on the site map which had been provided to the Agency Members adding that much of this parcel would be within the site for the proposed public parking structure, which would be for public use. He added that the owners had, at one time, considered the possibility of participating in the development but had decided against it for economic reasons. In response to a question from the Chairman, the Agency Secretary affirmed that there were no written communications. The Chairman then stated that the Agency would like to hear from those people who desired to address the Agency and advised that they should step to the podium, give their name and address and limit their comments to five minutes and identify to which property their comments pertained. He added that they should keep in mind the requirements of Section 1245.124 of the Code of Civil Procedure that their comments should only address the following four issues: 1. Whether the project; public and the necessity require interest 2. 2. Whether 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 properties for the project; or, sought to be acquired are necessary 4. Whether an offer, as required by Section 7267.2 Government Code, has been made to the record owner. of the Mr. Joe Ocampo, Agency regarding Government Code. a tenant at 203 E. 4th Street, addressed the his entitlements as a tenant under the There being no one else who wished to speak, Chairman Griset declared the Public Hearing closed and called for a motion. It was moved by Agency Member Luxembourger, seconded by Agency Member Johnson and carried unanimously (7:0) that the Agency adopt Resolution 86-15: 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 (201-203 EAST FOURTH STREET). . PUBLIC HEARING REGARDING CONDEMNATION OF LEASEHOLD INTEREST IN CERTAIN PROPERTY WITHIN THE FASHION SQUARE REDEVELOPMENT SITE l~~O FASHION SQUARE, 2850 N. MAIN STREET - ASSESSOR PARCEL NO. 0 -221-02) . Chairman Griset announced it 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 Numbers, as Book 002, Page and Block 221, Parcel 03 for redevelopment purposes. He stated that the Agency would like staff to identify the properties 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 greatest public good and the least private injury; why the properties sought to be acquired are necessary for the project; and, whether or not the offers as required by Section 7267.2 of the Government Code have been made to the owners of record, or any offer has not been made because the owners cannot be located with reasonable diligence. The Executive Director/Economic Development asked the Real Estate Manager to make the staff presentation on the proposed condemnation of the leasehold interest in certain property within the Fashion Square Redevelopment site. The Real Estate Manager pointed out that under the Code of Civil Procedure, if none of the owners wished to be heard at a 3. . . . Public Hearing, it was not necessary that the Public Hearing be held. He added that, since none of the owners had expressed an interest in being heard, his remarks would be brief. The Real Estate Manager referred to the Staff Report attached to the Agency's Agenda item and referenced in the Resolution of Necessity and indicated that it was to be considered part of the public record and added that this staff report also addressed the questions delineated by the Chairman. He pointed out that the Agency had entered into a Participation Agreement with Santa Ana Venture and that Section II.A. of this Agreement called for the Agency to utilize the power of eminent domain to acquire and convey to the City those parcels that are required for the project. He added that the proposed Perimeter Road, which will be a public roadway, passes through real property in which Judy's Santa Ana, Inc. has a leasehold interest. The Real Estate Manager stated that the property owner had been apprised of the situation and that the Agency had made an offer to Judy's Santa Ana which has not as yet been accepted. He added that negotiations were continuing but that staff felt it prudent to proceed with the condemnation proceedings in the event that the negotiations failed to produce a settlement in order that construction of the road could proceed in a timely manner. In response to a query from Chairman Griset, the Agency Secretary affirmed that there were no written communications. Chairman Griset then invited those who wished to address the Agency to step forward to the podium, give their name and address and limit their remarks to five minutes, keeping in mind the following four issues: 1. Whether project; and the necessity require the public interest 2. Whether 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 properties sought to be for the project; or, are necessary acqui red 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 speak, the Chairman the Public Hearing closed and called for a motion. declared It was then moved by Agency Member Acosta, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency adopt Resolution 86-16: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF THAT CERTAIN LEASEHOLD INTEREST HELD BY JUDY'S SANTA ANA, INC. IN THAT CERTAIN REAL PROPERTY KNOWN AS #40 FASHION SQUARE, 2850 NORTH MAIN STREET FOR 4. I REDEVELOPMENT PURPOSES IN THE FASHION SQUARE EXPANSION AND DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. . CONSULTANT CONTRACT WITH ANA AUTO MALL BRIAN A.STIRRAT & ASSOCIATES, SANTA In response to questions from Agency Executive Director/Economic Development consultant's fee would not exceed $25,000. member of Stirrat & Associates was present Members wished to ask questions. Member McGuigan, the stated that the He added that a if any of the Agency In response to a question from Agency Member Acosta, the Executive Director/Economic Development stated that Chevron did not disclose that the tanks existed and staff had no way of knowing that they were there. In response to questions from Agency Member Luxembourger, the Executive Director/Economic Development stated that this particular site was the entry-way to the Auto Mall and could not be excluded from the Auto Mall site. . After further discussion, it was moved by Vice Chairman Johnson, seconded by Agency Member Hart and carried unanimously that the Agency authorize the Chairman to execute an agreement with Brian A. Stirrat & Associates to perform the necessary services associated with the removal of contaminated soil within the Auto Mall site, with their fee not exceeding $25,000.00. CONSULTANT SELECTION FOR STRATEGY PLAN LAND USE ANALYSES Agency Member Young commented that, in reading the material furnished by staff on this item and having a superficial knowledge about the firms being considered, it seemed to him that, since LSA was the low bidder, they should be awarded the contract particularly since staff gave no persuasive reason for not selecting them. Agency Member Acosta stated that he had felt the same way until staff had explained to him at an earlier meeting that day that LSA did not have comparable experience in the area of land use analyses. . Agency Member Young pointed out that one of the City's Senior Planners was now a member of LSA and he felt it would be difficult to argue that this man was not an expert. The Executive Director/Economic Development stated that all three of the firms that had presented bids were excellent and had worked for the Agency on other projects. He added that the determining factor that influenced staff to recommend Michael Brandman was his many years of experience in land uses analyses and the fact that this was not an area in which LSA had expertise. 5. . . . l Agency Member Young moved that the contract to prepare the land use analyses of the strategy plans for the three project areas be awarded to LSA. The motion was lost for lack of a second. It was then moved by Vice Chairman Johnson, seconded by Agency Member Hart and carried by a vote of 6:1 (Agency Member Young voted "NO") that the Agency enter into a contract with Michael Brandman and Associates to prepare the land use analyses of the strategy plans for three project areas. REFINANCING OF THE 1984 SOUTH MAIN TAX ALLOCATION BONDS It was moved by Vice Chairman Johnson, seconded by Agency Member Hart and carried unanimously (7:0) that the Agency authorize staff to pursue a timely refunding of the 1984 South Main Tax Allocation Bonds by contracting with the principals who structured and sold the original issue including: Bond Counsel - Stradling, Yocca, Carlsen and Rauth Fiscal Consultant - Katz, Hollis, Coren & Associates Underwriter - E.F. Hutton & Company, Inc. AUTHORIZATION TO EXERCISE OPTION TO PURCHASE PROPERTY NORTH SIDE OF ANAHURST PLACE EAST OF MAIN STREET THE ON In response to questions from Agency Member Young, the Executive Director/Economic Development stated that the Agency was electing to exercise its option to purchase this property since it would soon expire and the School District thought the lot might be used in conjunction with the development of the proposed continuation high school. He added that, if the proposed school did not materialize, this lot could always be used for off-street parking and that, since its appraised value was set three years ago, it is an excellent value. After further discussion, it was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson and carried unanimously (7:0) that the Agency authorize the Executive Director to exercise an option to purchase property on the north side of Anahurst Place east of Main Street (A.P. No. 403-151-5). AUTHORIZATION TO REQUEST PROPOSALS FOR UNDERWRITING SERVICES FOR DOWNTOWN PARKING STRUCTURE FINANCING PLAN In response to questions from Agency Member Young, the Executive Director/Economic Development stated that this Request for Proposals would not include the proposed parking structure to be built west of Eddie West Field. He added that the Agency would be working with the County on that proposal and that the Request for Proposals would be issued by the Civic Center Association. 6. . It was then moved by Vice Chairman Johnson, seconded by Agency Member Young and carried unanimously (7:0) that the Agency authorize staff to request proposals for underwriting services for the proposed downtown parking structure financing plan. CONSULTING SERVICES FOR THE DESIGN OF PROPOSED STRUCTURES AT FIFTH AND MAIN AND THIRD AND BIRCH STREETS PARKING It was moved by Agency Member Acosta, seconded by Agency Member Young and carried unanimously (7:0) that the Agency authorize staff to solicit proposals for design, engineering, architectural and bid documentation consulting services for a proposed parking structure at Fifth and Main Streets and a proposed parking structure at Birch and Third Streets in downtown Santa Ana. ADOPTION OF AMENDING RESOLUTIONS REGARDING THE 1985 TAX ALLOCATION BONDS ISSUANCE OF THE . In response to questions from Agency Member Acosta, the Executive Director/Economic Development stated that these amending resolutions were just making technical corrections, such as dates, in the original resolutions and did not alter the intent of the original resolutions in any way. It was then moved by Vice Chairman Johnson, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency: 1) Adopt Resolution No. 86-18: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AMENDING RESOLUTION NO. 85-53. 2) Adopt Resolution No. 86-19: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AMENDING RESOLUTION NO. 85-54. 3) Adopt Resolution No. 86-20: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AMENDING RESOLUTION NO. 85-55. 4) Adopt Resolution No. 86-21: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AMENDING RESOLUTION NO. 85-56. . REMOVAL AND DISPOSAL OF UNDERGROUND TANKS SITE LOCATED ON THE A-lO It was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency authorize the Executive Director of the Redevelopment Agency to issue a purchase order for the removal and disposal of underground tanks located on the A-10 site to IT Corporation. 7. . . . LOSS OF GOODWILL PAYMENT TO TERRY COSTA DBA SANTA ANA RESTAURANT EQUIPMENT COMPANY - A-9 SITE (301 N. FRENCH STREET) It was moved by Vice Chairman Johnson, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency authorize the Executive Director of the Economic Development Agency to issue a goodwill payment in the amount of $48,000 to Terry Costa dba Santa Ana Restaurant Equipment for Project 7430 in the A-9 Site. FUND TRANSFER FOR REDEVELOPMENT SITE ACQUISITION THE A-8 OF PROPERTY WITHIN It was moved by Vice Chairman Johnson, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency approve the repayment of $363,260.00 from the Inter-City Redevelopment Project Area Fund to the General Fund for the purpose of providing funds for the A-8 Redevelopment Site Project (Fiesta Marketplace Development). EXECUTIVE SESSION The meeting was adjourned to Room 147 for an Executive Session at 6:40 P.M. The Agency Secretary read the following Statements: "THE LEGAL COUNSEL REQUESTS THAT THE REDEVELOPMENT AGENCY RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SEC. 54956.0(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 CRA vs WALKUP; CRA vs CIRCLE T CORPORATION." "THE LEGAL COUNSEL REQUESTS THAT THE REDEVELOPMENT AGENCY RECESS TO CLOSED SESSION TO CONFER WITH ITS ATTORNEY REGARDING PENDING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956. 9(B)(l)." "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 JOHN FAINBARG AND JAMES WEST CONCERNING THE PURCHASE OF THE PROPERTY LOCATED AT A.P. 398-503-04 AND 003-012-17." The Agency Members returned to P.M. with all in attendance. Chambers the Counci 1 at 7:00 AGENCY AGENDA ITEMS It was moved by Agency Member Luxembourger, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency grant staff the authority to acquire the property of John Fainbarg in the amount of $303,340.13 8. . . . ~ . It was moved by Agency Member Luxembourger, seconded by Vice Chairman Johnson and carried unanimously (7:0) that the Agency grant staff the authority to acquire the property of James West in the amount of $121,000. It was moved by Vice Chairman Johnson, seconded by Agency Member Acosta and carried unanimously that the Agency ratify the final offer of $215,000 to Circle T Corporation. The City Manager pointed out that, because interest rates had dropped dramatically, it would be most advantageous to the Agency to authorize staff to pursue a refunding of the $98.5 million Tax Allocation Bonds which were sold on December 3, 1985. He stated that the Agency could realize savings in interest payments from $500,000 to $1 million per year, and added that he felt the Agency might be subject to criticism if the proposed refinancing were not undertaken. It was moved by Vice Chairman. Johnson, seconded by Agency Member Young and carried unanimously (7:0) that the City Manager be authorized to pursue a timely refunding of the 1985 Tax Allocation Bond issues, Series A through D, by contracting with the following principals: Stradling, rocca, Carlson & Rauth - Bond Counsel Cranston Securities - Financing Consultant Katz, Hollis, Coren & Associates - Fiscal Consultant Goldman and Sachs - Senior Underwriter E. F. Hutton - Co-Underwriter ADJOURNMENT There being no further business to come before the Agency, the meeting was adjourned at 7:10 P.M. to April 21, 1986 at 4:30 P.M. ~ ~~ Daniel E. Griset Mayor Executive Director 9.