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HomeMy WebLinkAbout05/19/1987 " MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL MAY 19, 1987 . The Joint Regular Meeting was Chairperson McGuigan. Following Flag, the roll was called: called to order at 5:48 the Pledge of Allegiance by Vice to the PRESENT ABSENT John Acosta Daniel E. Griset Wil son Hart Ron May Patricia McGuigan, Vice Chairperson Miguel A. Pulido Daniel H. Young, Chairman (6:12 P.M.) Others in attendance: . David N. Ream, City Manager Rex Swanson, Deputy City Manager/Development Services Jan Perkins, Deputy City Manager/Management & Community Edward J. Cooper, City Attorney Cynthia Nelson, Executive Director/Community Services Robert Hoffman, Real Estate Manager David Grosse, Executive Director/Public Services Agency Mellmary McNeely, Agency Secretary David Younger, Businessman Svcs. MINUTES It was moved by Agency Member Griset, seconded by Agency Member Pulido and carried unanimously (6:0) that the Minutes of the Joint Regular Meeting of the Community Redevelopment Agency/City Council, held April 21, 1987, be approved. PUBLIC HEARING TO ADOPT RESOLUTION NO. 87-12 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE SYCAMORE RETIREMENT APARTMENTS SITE (222 S. SYCAMORE STREET) Vice Chairman McGuigan announced 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 283, Parcel OS, for redevelopment purposes. She asked that staff identify the property and the project and to comment on the factors and evidence necessitating the condemnation action. She 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 owners cannot be located with reasonable diligence. Vice Chairperson 4IÞ McGuigan then called upon the Real Estate Manager to make the staff report. The Real Estate Manager made the following staff report: "The property, 222 S. Sycamore Street, is situated on the northwest corner of Pine and Sycamore Streets and is within the Sycamore Retirement Apartments Development Site. The property is improved with a two-story residence built around 1905. The property is owned by Mrs. Janseena Evers and Mrs. Maren Elise Welcher. The owners are represented by an attorney, Mr. Charles McClung, who has requested permission to address the Agency in this regard. Each of you has received a copy of Mr. McClung's written comments. Our efforts to acquire this property through a negotiated purchase have been unsuccessful. We have been unable to agree upon a mutually satsfactory purchase price. This is the last parcel of property required to complete the Sycamore site. Inclusion of this parcel is required to form a practical and ~ efficient larger parcel for redevelopment, specifically construction .., of 58 units of senior citizen housing, 25% of which will be set aside for low and moderate income persons. Creation of such housing is a' purpose of redevelopment as detailed in the Santa Ana South Main Street Redevelopment Project Plan. The public interest and necessity require this project as a means of implementing the Plan. The creation of senior citizen housing, and low and moderate income senior housing in particular, is compatible with the greatest public good. We believe the opportunity to assemble this site voluntarily, with the exception of the one subject parcel, indicates that the project will create the least possible private injury. We are furthermore certain that the legal obligation of the Agency to pay just compensation for the property, and the availability of relocation assistance benefits as required, ensure that there shall be no disproportionate injury to these property owners. An offer of just compensation has been Section 7267.2 of the Government Code. presented as required by We would lastly point out that the Resolution of Necessity, . Resolution No. 87-12, specifically incorporates by reference the background memorandum prepared by staff, dated this date, May 19, 1987, and found on page 6 of the Agency's agenda packet." Upon a query from Vice Chairperson McGuigan, the Agency Secretary responded that there were no written communications that had not been presented to the Agency. 2. Vice Chairperson McGuigan than advised that the Agency would like to hear from those people who desired to address the Agency on this issue and asked that they approach the podium and limit their 4IÞ comments to five minutes. She added that any comments should only address the requirements of Section 1245.235 of the Code of Civil Procedure: 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 project; or property sought to be acquired is necessary for the 4. Whether an offer, as required by Section 7267.2 of Code, has been made to the record owner. the Government There being no one who wished to address the Agency either for or against the proposed Resolution of Necessity, the Vice Chairperson called for further comments from Agency staff or Agency Members. After which, she 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 4IÞ planned and located in a manner that will be most compatible with the greatest public good and least private injury, whether the property sought to be acquired is necessary for the project, or whether an offer has been made to the owners of record, then the public hearing was closed and a motion to adopt Resolution No. 87-12 was in order. It was then moved by Agency Member Acosta, seconded by Agency Member May that the Agency adopt Resolution No. 87-12: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 222 SOUTH SYCAMORE STREET, IN THE CITY OF SANTA ANA FOR REDEVELOPMENT PURPOSES, AND DECLARING THE PUBLIC NECESSITY THEREFOR, AYES: Acosta, Griset, Hart, McGuigan, May, and Pulido NOES: None ABSENT: Young PUBLIC HEARING TO ADOPT RESOLUTION NO. 87-13 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE WAXIE REDEVELOPMENT PROJECT SITE (3120 S. FAIRVIEW STREET) . Vice Chairperson McGuigan announced that it was the time and place for a public hearing on the issue of the public necessity to acquire by condemnation a property identified by Assessor Parcel Number, as Book 414, Page and Block 92, Parcel 10, for redevelopment purposes. She asked that staff identify the property and the project and to comment on the factors and evidence necessitating the condemnation 3. 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 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 owners cannot be located with reasonable diligence. The Real Estate Manager made the following staff report: "The subject property is located on the northwest corner of Alton Avenue and Fairview Streets in the City of Santa Ana's South Harbor Blvd. Redevelopment Project Area and comprises the entire site of the Waxie Redevelopment Project Site. The site consists of 3.1 acres and is owned by Flo Flo Eleanor Roche. It is occupied by tenants, Younger and Son House Movers, which utilizes the property for its offices and equipment and house storage. The property is encumbered by a lease having 19 years remaining on its term. The lease restricts the tenant to the existing use. The present rental rate is approximately one cent per square foot per month. This means, for all practical purposes that this property is effectively "off the market" for the foreseeable future. The Agency is authorized by statute to acquire such under-utilized property for redevelopment purposes. . This particular property is necessary for this project. There is some vacant land in the vicinity, but it is either outside the project area or already subject to a master plan. Redevelopment to a higher and better use certainly serves the public good. Payment of just compensation for the property and provisions of relocation assistance benfits and compensation for any lost goodwill to the tenant ensures the least possible private injury and assures that no owner or tenant shall be required to bear a disproportionate cost for this beneficial project. The tenant and owner have been unable to agree upon a division of the Agency's appraised value for the property. An offer of just compensation has been presented as required by Section 7267.2 of the Government Code. Staff's background memorandum, dated May 19, 1987, and found on page 20 of the Agency's agenda packet is incorporated by reference into the subject Resolution of Necessity, Resolution No. 87-13." . The Agency Secretary affirmed to the Vice Chairperson that there were no written communications. Vice Chairperson McGuigan then stated that the Agency would like to hear from those people who desired to address the Agency on this issue, adding that should they desired to speak they should come to 4. the podium, give their name and address and limit their comments to five minutes. She reminded them that the requirements of Section 1245.235 of the civil code procedure required that comments be limited to the following four issues: 81. 2. Whether the public interest and necessity require the project; 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 project; or, property sought to be acquired is necessary for the 4. Whether an offer, as required by Section 7267.2 of Code, has been made to the record owner. the Government Mr. David Younger of 3220 South Fairview, Santa Ana, Ca. 92704, addressed the Agency and explained that he did not feel that the Agency's offer of $220,000 was fair compensation and that his estimates showed that he would need $1.4 million to move his business. In response to questions from Agency Member Pulido, the Real Estate Manager stated that, if the compensation to Mr. Younger were $1.4 million, the project, in his opinion, could not be justified and that he would be reluctant to specify a breakeven figure for the project. 8 When the Vice Chairperson asked for further questions or comments, there was no response. She then stated that, if there were no further questions, comments or discussion, the public hearing was closed and a motion to adopt Resolution No. 87-13 was in order. It was moved by Agency Member Griset, seconded by Agency Member May that the Redevelopment Agency adopt Resolution No. 87-13: 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 WAXIE REDEVELOPMENT PROJECT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (3120 S. FAIRVIEW STREET). AYES: Griset, Hart, May, McGuigan, and Pulido NOES: Acosta ABSENT: Young AMENDMENT TO THE A-9 DISPOSITION AND DEVELOPMENT AGREEMENT 4IÞ It was moved by Agency Member Griset, seconded by Agency Member Pulido and carried unanimously (6:0) that the Redevelopment Agency authorize the City Attorney to prepare and the Chairman to execute an Amendment to the A-9 Disposition and Development Agreement. 5. " At the request of the Agency Members, the Vice Chairperson declared a recess at 6:12 P.M. Chairman Young arrived at 6:12 and assumed his authority. The Agency Members returned to the Council Chambers at 6:22 P.M. . TERMINATION MALL OF AGREEMENT WITH JOHN McKEE - PARCEL 6 WITHIN THE AUTO It was moved by Agency Member Griset, seconded by Agency Member Pulido and carried unanimously (7:0) that the Redevelopment Agency terminate that certain Lease, Option and Development Agreement, dated December 18, 1984, Assignment of Agreement, dated July 15, 1986, and Amendment to Agreement, dated July 15, 1986, by and between the Community Redevelopment Agency of the City of Santa Ana and John McKee (Parcel No.6 within the Auto Mall). BID ADVERTISEMENT FOR ALLEY IMPROVEMENTS IN INTER-CITY AREA NO. 7476) AND SANTA ANITA NEIGHBORHOOD (PROJECT NO. 7479) (PROJECT It was moved by Vice Chairperson McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) That the Redevelopment Agency approve the plans and specification, and authorize the Purchasing Manager to advertise bids for alley improvements in the Inter-City area and the Santa Anita neighborhood. 4IÞ 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 May 19, 1987 Community Redevelopment Agency Agenda was posted on the door of the Council Chambers, 22 Civic Center Plaza, at 12:35 P.M. on May 15, 1987. EXECUTIVE SESSION The Agency Members left the Council Chambers for Executive Session 6:26 P.M. and returned at 6:38 P.M. with all members present. The Agency Secretary read the following: at "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: 1) Community Redevelopment . Agency vs Snack's 5th Avenue; 2) Community Redevelopment Agency vs Federated Group; 3) Community Redevelopment Agency vs Matkins (1535 S. Trotter); 4) Community Redevelopment Agency vs Matkins (2021 E. Edinger); and 5) Community Redevelopment Agency vs Georgeray Bailbonds. 6. " 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 Mr. Passer concerning property located at 220 S. Sycamore Street. 4IÞ REPORT FROM EXECUTIVE SESSION It was moved by Vice Chairperson McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) that the Redevelopment Agency ratify a final offer of $610,000 plus interest and a goodwill payment of $53,776 to Matkin for the property located at 1535 S. Trotter. It was moved by Vice Chairperson McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) that the Redevelopment Agency ratify a final offer of $115,000 plus interest to Matkin for the property located at 2021 East Edinger. It was moved by Agency Member Pulido, seconded by Agency Member Hart and carried unanimously (7:0) that the Redevelopment Agency authorize a relocation payment of $50,000 to the Federated Group, Inc. It was moved by Vice Chairperson McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) that the Redevelopment Agency authorize a final offer of $86,250 to David G. Davis and Barbara A. Davis, dba Snack's 5th Avenue. 4IÞ It was moved by Vice Chairperson McGuigan, seconded by Agency Member Hart and carried unanimously (7:0) that the Redevelopment Agency authorize a goodwill payment of $50,000 to Georgeray Bailbonds. It was moved by Agency Member Pulido, seconded by Vice Chairperson McGuigan and carried unanimously (7:0) that the Redevelopment Agency authorize a final offer of $108,750 to Mr. Passer for the property at 220 S. Sycamore Street. ADJOURNMENT There being no further business meeting was adjourned at 6:40 P.M. to come before the Agency, the R~~ Executive Director 4IÞ 7.