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Home My WebLink About10/20/1987 p MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY OCTOBER 20, 1987 . Chairman Young called the Regular Meeting of the Community Redevelopment Agency to order at 5:42 P.M. in the Council Chambers, 22 Civic Center Plaza, Santa Ana, California. Following the Pledge of Allegiance, the roll was called: PRESENT ABSENT John Acosta Dan Griset Wilson Hart (5:55 P.M.) Ron May Patricia McGuigan, Vice Miguel Pulido Dan Young, Chairman Chairperson Others in attendance: . David N. Ream, city Manager Edward J. Cooper, city Attorney Jan Perkins, Deputy City Manager Cynthia Nelson, Executive Director Roger Kooi, Downtown Development Manager Mellmary McNeely, Agency Secretary MINUTES It was moved by Vice Chairperson McGuigan, seconded by Agency Member Acosta and carried unanimously (6:0) that the Minutes of the Regular Meeting of the Community Redevelopment Agency, held September 15, 1987, be approved. AGREEMENT WITH SANTA ANA VENTURE LANDSCAPING, IRRIGATION AND MAINTENANCE FOR PERIMETER ROAD It was moved by Agency Member Acosta, seconded by Vice Chairperson McGuigan and carried unanimously (6:0) that the Redevelopment Agency authorize the Chairman to execute an agreement with Santa Ana Venture for landscaping, irrigation and maintenance of the MainPlace perimeter road. . EXCLUSIVE RIGHT TO NEGOTIATE THE PURCHASE AND THE HARMON-McNEIL HOUSE REHABILITATION OF It was moved by Vice Chairperson McGuigan, seconded by Agency Member Acosta and carried unanimously (6:0) that the Redevelopment Agency approve an exclusive right to negotiate with Mr. and Mrs. Lee Houghton for the purchase and . . . rehabilitation of the real street (Harmon-McNeil House). property located 817 N. Lacy at AMENDMENT TO DISPOSITION AND ANA NISSAN, INC. DEVELOPMENT AGREEMENT WITH SANTA Agency Member Griset advised the Agency Members that he would abstain from the discussion and vote on the proposed amendment to the Disposition and Development Agreement with Santa Ana Nissan since they were one of his clients. It was then moved by Agency Member Pulido, seconded by Agency Member May and carried by a vote of 5:0 (Agency Member Griset abstaining) that the Redevelopment Agency approve and authorize the Chairman to execute the proposed amendment to the Disposition and Development Agreement with Santa Ana Nissan, Inc., a California corporation. Agency Member Hart arrived at 5:55 P.M. A-2 SITE AGREEMENT TERMINATION OF AMENDED DISPOSITION AND DEVELOPMENT The city Manager pointed out that a recent market analysis of the downtown area had indicated that it would be infeasible to develop the A-2 site with a high quality hotel at this time. He stated that the Carley Capital Group had acted in good faith and that, despite all of the setbacks experienced on this project, they are not in default under the terms of the DDA and are not in default for failure to comply with the scope of the development, since the extended litigation on the project prevented the developer from successfully securing project financing. He added that, rather than require the developer to proceed with the project pursuant to the DDA, staff felt it was best to accept the conclusions contained in the market study and terminate the agreement and thus reduce the Agency's potential risk on a project that is clearly deemed infeasible at this point. In response to a question from Agency Member Acosta, the City Manager stated that the Agency, since it has been working with the Carley Group, has invested approximately $1.5 million in the A-2 project, principally in the purchase of the Broadway Theater and the Roloeff Building to complete the site assembly. In response to further questions from Agency Member Acosta, the city Attorney stated that the Agency was returning $175,000 of the $200,000 good faith deposit because the Agency was allowing Carley to terminate. The City Attorney stated further that, in prior instances where the good faith deposit had not been returned to the developer, the Agency had a genuine desire to proceed with the project but that this was not the case in this instance. . . . " The city Manager added that in all cases where the good faith deposit was retained, the Agency felt that these projects were feasible and appropriate for the site and the developer defaulted under those terms. He pointed out that the Carley Group felt that there was not a market for a hotel in downtown Santa Ana and staff agreed with them, adding that staff felt that the Carley Group had made an honest commitment and effort to comply with the terms of the DDA. He stated that Carley was not pleased with the Agency retaining $25,000 of their money but had agreed orally to make this contribution in the spirit of cooperation. The city Manager advised that, if the Agency Members wished to tell staff to enforce the terms of the development agreement, staff would do so but he pointed out that the Carley Group could very well proceed on the project with someone else and require an enormous Agency subsidy in the amount of $18 million, and the city would have a vacant hotel and bad publicity. In response to questions from Vice Chairperson McGuigan, the Executive Director stated that the Agency staff maintains an extensive list of developers on an on-going basis, adding that staff would send the Request for Qualifications to developers having proven expertise, financing and a major tenant, and to anyone else who might contact the Agency staff and request to be included. The Executive Director added that the Agency would control the design of the development which would probably call for two buildings with an atrium and parking structure. In response to questions from Chairman Young, the Executive Director stated that she felt that Phase I, with the retail shops and parking structure, could be accomplished, with a second tower coming later as Phase II. She added that it was not anticipated that there would be a subsidy for this project. Agency Member Pulido stated that he was supportive of the motion and hoped that the Agency would not rush into another development because, in his opinion, the A-2 site was very valuable real estate. Agency Member Acosta said that he wished to state for the record that the only reason he would not support the motion is because he is opposed to returning the $175,000 to the Carley Capital Group. It was then moved by Vice Chairperson McGuigan, seconded by Agency Member Griset and carried by a vote of 6:1 (Agency Member Acosta voting "NO") that the Redevelopment Agency: 1. Authorize the Chairman to execute an agreement with the Carley Capital group to terminate the Amended Disposition and Development Agreement covering the A-2 Development site and retain $25,000 with the knowledge and acceptance of the developer; and . . . , ' 2. Authorize staff to issue Requests for Qualifications from interested developers with respect to the development of the A-2 site. PURCHASE OF SUPPLEMENTAL CHRISTMAS DECORATIONS FOR DOWNTOWN In response to a question from Agency Member Acosta, the city Manager pointed out that the purchase of supplemental Christmas decorations for the downtown was generated by Agency Members and, for this reason, it did not seem appropriate to ask for a recommendation from the Redevelopment Commission. After further discussion, it was moved by Agency Member May, seconded by Agency Member Pulido and carried unanimously (7:0) that the Redevelopment Agency approve the purchase of supplemental Downtown Christmas decorations and authorize staff to implement the budget for purchase, installation, energizing and storage of the purchase in an amount not to exceed $32,240. FUND TRANSFER - SANTA ANA MUSEUM DISTRICT It was moved by Agency Member May, seconded by Vice Chairperson McGuigan and carried unanimously (7:0) that the Redevelopment Agency approve the repayment of $89,785 from the Central city Redevelopment Project Area Fund to the General Fund for the purpose of providing funds for the preparation of an Environmental Impact Report for the Santa Ana Museum District. AGENCY SECRETARY REPORT It was moved by Agency Member Pulido, seconded by Vice Chairperson McGuigan and carried unanimously (7:0) that the Redevelopment Agency instruct the Agency Secretary to enter into the Minutes: Pursuant to Government Code Section 54954.2, the Agency for the October 20, 1987 Meeting of the Community Redevelopment Agency was posted on the door of the Council Chambers, 22 civic Center Plaza, at 1:05 P.M. on October 16, 1987. ADJOURNMENT There being no further business to come before Redevelopment Agency, the meeting was adjourned at 6:12 P.M. the ~~ Cynt 1a J. N son Executive Director