Loading...
HomeMy WebLinkAbout01/21/1986 .' , . . , PI? MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/DOWNTOWN DEVELOPMENT COMMISSION JANUARY 21, 1986 The Joint Regular Meeting of the Community Redevelopment Agency and the Downtown Development Commission was called to order by Chairman Griset in the Council Chambers, 22 Civic Center Plaza, Santa Ana, California at 5:55 P.M. Following the Pledge of Allegiance to the Flag, the roll was called: PRESENT ABSENT John Acosta Daniel Griset, Chairman Wilson Hart P. Lee Johnson, Vice Chairman R. E. Luxembourger Patricia McGuigan Dan Young Others in attendance: Robert C. Bobb, City Manager Edward J. Cooper, City Attorney Rex Swanson, Deputy City Manager/Development Services David N. Ream, Executive Director/Economic Development Robert Hoffman, Real Estate Manager Mellmary McNeely, Agency Secretary EXECUTIVE SESSION: At 5:58 P.M., the meeting was adjourned to Executive Session. The Agency Secretary read the following public statement prior to the closed session: "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. THE TITLES OF THE LITIGATIONS ARE :(1) CRA vs. SNOOOZ SHOP; (2) CRA vs DANLAR INDUSTRIES; (3) ALLIANCE vs CRA." "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: (1) MR. DAN BERTO, CONCERNING THE PURCHASE OF THE PROPERTY LOCATED AT 506 E. 2ND ST.; AND (2) LEAH CASPARI, CONCERNING THE PURCHASE OF THE PROPERTY LOCATED AT 115 E. BACHMAN DRIVE." The Agency Members returned to the Council Chambers at 7:00 P.M. with all those formerly present in attendance. 1 . . , . , MINUTES It was moved by Vice Chairman Johnson, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency approve the Minutes of the Adjourned Joint Meeting of the Community Redevelopment Agency held December 3, 1985 and the Joint Special Meeting held December 16, 1985,and approve the Minutes for the Regular Meeting of the Downtown Development Commssion held on November 26, 1985. PUBLIC HEARING TO ADOPT RESOLUTION 85-58 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-14 REDEVELOPMENT SITE (304 AND 308 EAST FIFTH STREET, ASSESSOR PARCEL NO. 398-326-01) AND (316 FIFTH STREET AND 416 NORTH FRENCH STREET, ASSESSOR PARCEL NO. 398-326-03) Chairman Griset declared the Public Hearing open on the issue of the public necessity to acquire by condemnation properties identified by Assessor Parcel Numbers, as Book 398, Page and Block 326, Parcel 01; and as Book 398, Page and Block 326, Parcel 03 for redevelopment purposes. He then asked staff to identify the properties and the project and to comment on the factors and evidence necessitating the condemnation action. He 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 Real Estate Manager, Mr. Robert Hoffman, made a slide presentation showing the area in question. He stated that the A-14 site has been designated as the location for a parking structure which will provide public parking for the Fiesta Marketplace development, First American Title and the Pacific Telephone Company and other properties in the area. He pointed out that half of the site is owned by the City of Santa Ana and that public necessity supports the construction of this public parking structure since parking in the area is already at a premium and the new Fiesta Marketplace development will soon be operational. He added that offers of just compensation have been made and that staff feels that the businesses affected by the proposed eminent domain action will relocate within the city. In response to a query from the Chairman of the Agency, the Agency Secretary stated that there were no written communications recei ved. The Chairman then stated that the Agency would like to hear from those people who desired to address the Agency on the issue. He -2- $- . . . added that if anyone desired to address the Agency, they should step forward to the podium and give their name and address. He requested that they 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 comments should only address the following four issues: 1. Whether the public interest and necessity require the project; 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 acquired are 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 comments from the public, Agency Members or Agency staff the Chairman declared that motions were now in order to adopt Resolution Numbers 85-58 and 85-59. It was moved by Agency Member Luxembourger, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency adopt Resolution No. 85-58: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF THAT CERTAIN REAL PROPERTY LOCATED AT 304 AND 308 EAST FIFTH STREET IN THE CITY OF SANTA ANA FOR DEVELOPMENT PURPOSES, AND DECLARING THE PUBLIC NECESSITY THEREFOR. It was moved by Agency Member Luxembourger, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency adopt Resolution No. 85-59; A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF THAT CERTAIN REAL PROPERTY LOCATED AT 316 EAST FIFTH STREET AND 416 NORTH FRENCH STREET IN THE CITY OF SANTA ANA FOR DEVELOPMENT PURPOSES, AND DECLARING THE PUBLIC NECESSITY THEREFOR. Agency Member Hart left the Council Chambers at 7:15 P.M. and returned at 7:20 P.M. PUBLIC HEARING TO ADOPT RESOLUTION DIRECTING CONDEMNATION OF PROPERTY WITHIN THE C-7 DEVELOPMENT SITE: 2657 NORTH MAIN STREET; 2643 NORTH MAIN STREET; 115 EAST BACHMAN DRIVE; 120 EAST BACHMAN DRIVE; 120 EAST OWENS DRIVE; 124 EAST OWENS DRIVE; 204 EAST OWENS DRIVE; 214 EAST OWENS DRIVE; 218 EAST OWENS DRIVE. Chairman Griset declared the Public Hearing on the issue of the -3- r; r . . . . public necessity to acquire by condemnation properties identified by Assessor Parcel Numbers, as Book 003, Page and Block 012, Parcels 02, 04, 11, 15, 16, 17, 24 and as Book 003, Page and Block 013, Parcels 01 and 15, for redevelopment purposes. He asked that staff identify the properties and the project and to comment on the factors and evidence necessitating the condemnation action. He 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 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 Real Estate Manager, Mr. Robert Hoffman, made a slide presentation in whch he presented an overview of the area around the C-7 development site, showing the location of the various properties: the Horowitz property to the north; Town and Country; C-5 site; C-8 site (Bekin's and Barkers' buildings). He stated that the area was rapidly developing into a commercial area with several attractive, new developments. He also made a slide presentation showing how Owens Drive will be widened and explained that all of the houses on the north side of Owens Drive will be required for the widening and that any land that is not used will probably be added to the Horowitz site. He added that the City would only have to acquire three additional sites on the north side of Owens Drive. He pointed out that the Agency had closed the KLST acquisition which is a part of the Fashion Square development. He showed slides of the residential property in the area and stated that the Agency had nine parcels to acquire in the C-7 development site. He added that, even though the Agency had reached agreements with Some of the owners, staff felt it was prudent to proceed with condemnation actions on all nine parcels in the event some of the escrows did not close. He pointed out that the development would be a 220,000 square foot, 20-story office building and that the entire site will cover 4.7 acres when assembled. He added that staff hoped to be able to convey the site to the developer by June, 1986. He stated that, in staff's opinion, the area was changing rapidly to commercial use and that it was inevitable that the property within the C-7 site should also become commercial. He pointed out that among the economic benefits of the proposed commercial development would be the creation of new jobs and the augmentation and supplementation of ongoing development activities in the area. He added that this development would also serve as an anchor, in conjunction with commercial redevelopment of downtown Santa Ana, for the development of the Main Street commercial corridor. He added that all of the owners affected by the proposed development in the C-7 site had been offered just compensation and that the developer is contributing relocation benefits to those living within the site on properties acquired directly by the developer. He stated that the development had gone through all proper city -4- 1 ~.. departments, commissions and boards. . In response to a query from the Chairman, the Agency Secretary stated that there were no written communications regarding this matter. The Chairman then stated that the Agency would like to hear from those people who wished to address the Agency on this issue and asked them to give their names and addresses and limit their comments to five minutes. He also asked them to keep in mind the requirements of Section 1245.235 of the Code of Civil Procedure and asked them to limit their comments to the following four issues: 1. Whether the public interest and necessity require the project; 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 acquired are 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. The following people spoke in opposition to the C-7 Development Site: Joe Hamann, 213 Owens Drive Marilyn Hayward, 119 E. Owens Drive The Chairman then called for comments from the Agency Members. Agency Members Hart, Young and Luxembourger all stated that, in their opinion, staff should proceed to acquire those properties on the north side of Owens Drive which were being adversely impacted by the C-7 development and that the payment of relocation payments to these people should be treated as a a matter of policy. After a lengthy discussion, Chairman Griset and all of the Agency Members agreed that they would like staff to present a policy statement on the payment of relocation payments in instances such as the one presented on the north side of Owens Drive. . Chairman Griset then stated that, if there were no further questions, comments or discussion as to whether the public interest and necessity require the proposed project, whether the project is planned and located in a manner that will be most compatible with the greatest public good and least private injury, whether the properties sought to be acquired are necessary for the project, or whether an offer has been made to -5- ~ I ' the owners of record, motions were in order to adopt Resolutions 86-01 through 86-09. . It was moved by Agency Member Luxembourger, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency: Adopt Resolution Resolution No. 86-01: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (2657 NORTH MAIN STREET). Adopt Resolution No. 86-02: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (2643 NORTH MAIN STREET). Adopt Resolution No. 86-03: A RESOLUTION OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (115 EAST BACHMAN DRIVE). . Adopt Resolution No. 86-04: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (120 EAST BACHMAN DRIVE). Adopt Resolution No. 86-05: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (120 EAST OWENS DRIVE). Adopt Resolution No. 86-06: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (124 EAST OWENS DRIVE). . Adopt Resolution No. 86-07: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (204 EAST OWENS DRIVE). -6- c¡ I . . Adopt Resolution No. 86-08: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (214 EAST OWENS DRIVE). Adopt Resolution No. 86-09: 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 C-7 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (218 EAST OWENS DRIVE). Chairman Griset then declared the public hearing closed REQUEST FOR PROPOSALS FOR LA BONITA SITE It was moved by Agency Member McGuigan, seconded by Agency Member Johnson and carried unanimously (7:0) that Agency authorize staff to issue a Request for Proposals for development of the La Bonita site with a low density single-family residential project. . DEFERRED LOAN - BUILDERS EXCHANGE ASSOCIATES, 202-210 NORTH MAIN STREET It was moved by Agency Member McGuigan, seconded by Agency Member Hart and carried unanimously (7:0) that the Agency approve a Commercial Rehabilitation Loan Agreement totaling $49,322 with the Builders Exchange Associates which will allow the refinancing of the Agency's $44,711 deferred loan with accrued interest at 10 percent. APPROVAL OF PAYMENT FOR THE DEMOLITION OF IMPROVEMENTS LOCATED AT THE SANTA ANA AUTO CENTER In response to questions from Agency Member Acosta, the Real Estate Manager stated that there was a staff member and a representative of the Fire Department present to monitor the removal of the contaminated soil and contents of the underground tanks located at 2051 East Edinger and 1535 South Trotter Avenue. He added that a member of the Real Estate Staff monitored each truckload and signed a manifest as each truck left the site. . In response to a further question from Agency Member Acosta, the Real Estate Manager stated that it was necessary to rent a crane when the hole, resulting from the removal of contaminated soil, became 40 feet deep because the City staff did not feel that it would be safe for a tractor to continue to work in the hole due to its depth and the low flash point of the soil. He pointed out that the Fire Department was monitoring the work and felt that the soil should be removed deep enough so that the water table would not be further contaminated. He added that the -7- It) I . . . . problem was so severe that a pump may have to be installed for on-going recovery of gasoline residue from the water table. The Real Estate Manager stated that staff would initiate an action against Chevron because they failed to reveal that such a problem existed and because the contamination reduces the value of the property. Agency Member Acosta asked if staff had asked for an estimate from G. W. Rowe before authorizing the additional work and rental of equipment. The Real Estate Manager stated that it was a day-to-day operation in which the Fire Department inspected the soil as it was removed and instructed them to continue digging. Agency Member Acosta stated magnitude of this operation brought it to the attention the excavation and that, in ask the contractor to set a additional work. that he was disturbed by the and felt that staff should have of the Agency before proceeding the future, staff should maximum cost before authorizing with Agency Member Young asked that staff keep the Agency appraised of the status of the litigations brought against Chevron. After further discussion, it was moved by Vice Chairman Johnson, seconded by Agency Member Young and carried by a vote of 6:1 (Agency Member Acosta voted "NO") that the Agency authorize the Executive Director of the Redevelopment Agency to issue a purchase order for the demolition of improvements and removal of contaminated soil and contents of underground tanks located at 2051 East Edinger Avenue and 1535 South Trotter Avenue to G. W. Rowe, General Contractor, in the amount of $203,004.50 plus interest of $612.50. AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE A-13 SITE It was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency amend Section 204 of the Disposition and Development Agreement with Lowy Development Corp. extending the deadline for submission of the Letter of Credit to July 1, 1986. GRANTING OF EXCLUSIVE RIGHT TO NEGOTIATE TO DUQUESNE PROPERTIES FOR MASTER PLAN IN THE INTER-CITY AREA Agency Member Young stated that at a recent meeting of the Economic Development Sub-Committee, the proposed exclusive right to negotiate for a master plan in the Inter-City Area had been discussed at length, and that he felt that there were enough concerns expressed to warrant asking that the Agency continue this item to a future meeting. He added that he felt staff should once again confer with community members to be sure that they were in agreement with the granting of an exclusive right to negotiate to Duquesne Properties for a master plan in the -8- /J r . , , . . . Inter-City Area. After a discussion period, it was moved by Agency Member Young, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency item, "Granting of Exclusive Right to Negotiate to Duquesne Properties for Master Plan in Inter-City Area", be continued to a future Agency meeting and that the Agency instruct staff to meet with members of the Inter-City community to ascertain their reactions to this proposal. ORAL COMMUNICATIONS - A-9 SITE - PACIFIC ELECTRIC RAILWAY DEPOT The Agency unanimously (7:0) authorized the Chairman to execute a letter to the State Historic Preservation Officer opposing nomination of the Pacific Electric Railway Depot to the National Register of Historic Places. AGENCY AGENDA ITEMS It was moved by Agency Member McGuigan, seconded by Agency Member Young and carried (6:1 - Vice Chairman Johnson voting "NO") that the staff presentation on the stadium replacement sites to the Orange County Harbor and Parks Commission, scheduled for January 22, 1986, be delayed 30 days. EXECUTIVE SESSION It was moved by Agency Member Young, seconded by Agency Member Hart and carried unanimously (7:0) that the litigation of Agency vs Snoooz Shop be settled for $130,000, plus interest. It was moved by Agency Member Young, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency ratify a final goodwill offer to Danlar Industries in the amount of $230,000, plus interest. It was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency authorize settlement and purchase of the Gertrude Nance property for $112,500. It was moved by Agency Member Young, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency authorize settlement and purchase of the Lenore Sproul property for $115,000. It was moved by Agency Member Luxembourger, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency authorize settlement and purchase of the Leah Cas pari property for $140,000. ADJOURNMENT There being no further business to come before the Agency, the -9- /";'" ..~ . " . . . . . meeting was adjourned at 8:30 P.M. ~ Daniel E. Griset Chairman -10- ~~ Executive Director I~