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HomeMy WebLinkAbout01/20/1987 . . . MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL JANUARY 20, 1987 The Joint Regular Meeting of the Community Redevelopment Agency/City Council was called to order by Chairman Dan Young at 5:42 P.M. in Council Chambers, 22 Civic Center Plaza, Santa Ana, California. Following the Pledge of Allegiance to the Flag, the roll was called: PRESENT ABSENT John Acosta Daniel E. Griset Wilson Hart Ron May Patricia McGuigan, Vice Chairman Miguel A. Pulido Daniel H. Young, Chairman Others in attendance: David N. Ream, City Manager Rex Swanson, Deputy City Manager/Development Services Ed Cooper, City Attorney Cynthia Nelson, Acting Executive Director/Community Development Robert Hoffman, Real Estate Manager Patti Nunn, Project Manager Mellmary McNeely, Agency Secretary Ruth Eisen, Snacks 5th Avenue MINUTES It was moved by Agency Member Acosta, seconded by Agency Member Pulido and carried unanimously (7:0) that the Minutes of the Regular Meeting, held December 16, 1986, be approved as received. JOINT PUBLIC HEARING REGARDING THE OWNER PARTICIPATION AGREEMENT WITH SYCAMORE RETIREMENT APARTMENTS, LTD. AND MERCURY SAVINGS AND LOAN ASSOCIATION The City Manager stated that staff had received a request from Mercury Savings and Loan Association for further negotiations on the proposed Owner Participation Agreement even though they had signed the Agreement. The City Manager added that staff was recommending that this item be withdrawn from the Agenda. In response to a question from Agency Member Hart, the City Attorney stated that when the other party signs a contract with the Agency, there is a stipulation that the Agency has 45 days to accept but -~ . . that meanwhile it is a binding agreement that, logically, they cannot withdraw. on the other party and After further discussion, it was moved by Agency Member Pulido, seconded by Agency Member May and carried unanimously (7:0) that the Joint Public Hearing regarding the Owner Participation Agreement with Sycamore Retirement Apartments, Ltd. and Mercury Savings and Loan Association not be held and that the item be withdrawn from the Agenda. JOINT PUBLIC HEARING REGARDING THE FIESTA MARKETPLACE PROJECT Chairman Young 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 amendment to the Disposition and Development Agreement and for other agreements between the Community Redevelopment Agency of the City of Santa Ana and the Fiesta Marketplace Partners, Inc., adding that the proposed Fiesta Marketplace is located between Third Street, Fifth Street, Bush Street and French Street. He then asked that staff identify the property or issues and give the staff recommendation. The City Manager called upon Project Manager Patti Nunn to make the staff presentation. Project Manager Patti Nunn stated that, on August 20, 1985, the Agency entered into a Disposition and Development Agreement with Fiesta Marketplace Partners for the development of the Fiesta Marketplace. She pointed out that the Agency had acquired and conveyed to the developer the five sites shown on the parcel map, which had been given to the Agency Members prior to the meeting, adding that the Agency has caused the demolition of sites 1, 2 and 3. She stated that the developer is presently out to bid on the project and expects to award the contract shortly. She then reviewed the schematic drawings, present in the Council Chambers, with the Agency Members, pointing out that the Mercado and the Paseo would be the focal point of the development with a carousel to be placed in the Paseo. She then reviewed the four agreements being recommended for adoption by the Agency. When the Chairman asked for written communications, Secretary responded that there were none. When the Chairman asked if there were members of the public who wished to address the Agency on this matter, there was no response. the Agency The Chairman then called for questions from the Agency Members. . In response to questions from Agency Member Pulido, the Project Manager responded that the superstructures of the kiosks within this development would be removed but that the seating and planting would remain, and that there would be an ice cream store in the Fiesta Marketplace. l 2. . . . Agency Member Pulido stated that in order to encourage merchants to come into the Mercado, the Downtown Santa Ana Business Association (DSABA) had signed five-year leases with the tenants but that these leases had now been supplanted by month-to-month tenancies, adding that DSABA had assured these tenants that the City would give them some protection such as first right of refusal. He then asked if Fiesta Marketplace Partnership was prepared to do this. The Project Manager said that staff would be willing to make this recommendation to the Fiesta Marketplace Partners. Agency Member Pulido then stated that he would like this recommendation incorporated in the motion which would be made on this matter. The City Manager stated that this recommendation could be placed in Item 2 of the Council Recommendation. In response to questions from Chairman Young, the Project Manager stated that February 26, 1987 had been set as the date for the official groundbreaking on the Fiesta Marketplace development. Chairman Young then asked that staff explore the possibility of making the promotion of this groundbreaking as a "reopening of downtown". He also pointed out that the MainPlace opening was also targeted for September and asked that staff work to see that there would not be a conflict between the two developments since they were both very important to the future of Santa Ana. There being no further questions, the Chairman declared the Public Hearing closed and stated that he would now entertain a motion of the Community Redevelopment Agency regarding the proposed amended agreement. It was then moved by Agency Member Pulido, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency adopt Resolution No. 87-07: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT OF AGREEMENT WITH FIESTA MARKETPLACE PARTNERS. PUBLIC HEARING TO ADOPT RESOLUTIONS DIRECTING CONDEMNATION OF LEASEHOLD INTERESTS WITHIN THE FASHION S UARE REDEVELOPMENT SITE #26 FASHION SQUARE, #36 FASHION SQUARE AND #31 FASHION SQUARE, 2850 N. MAIN STREET, PORTIONS OF ASSESSOR PARCEL NOS. 002-221-05 & 06) Chairman Young announced that it was the time and place for the Public Hearing on the issue of the public necessity to acquire by condemnation leasehold interests in property identified as portions of Assessor Parcel Number, as Book 002, Page and Block 221, Parcels 05 and 06, for redevelopment purposes. He added that he would like staff to identify the properties and the project and to comment on the factors and evidence necessitating the condemnation actions and to 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 offer as required by Section 7267.1 of the Government Code has been made to the owners of record. 3. . . . The City Manager presentation. asked the Estate Manager to make the staff Real The Real Estate Manager advised that his presentation would include information regarding Resolution Numbers 87-01, 02 and 03. He pointed out that all of the properties involved leasehold interests within the Fashion Square Redevelopment Site, namely, Snack's Fifth Avenue, Mail Boxes, U.S.A. and Draper's Inc, adding that the MainPlace site has been assembled from four major parcels. He added that the Agency had entered into an Owner Participation Agreement with Santa Ana Venture for the redevelopment of the Fashion Square commercial center and that the other parcel had been acquired from KSLT by an exchange of property. He stated that offers had been made to all three businesses for the leasehold and business fixtures and equipment and that all three have elected not to relocate nor have they accepted the Agency's offers. The Real Estate Manager pointed out that the Fashion Square Development will provide jobs and revenue, both sales and property tax, for the City and citizens of Santa Ana, will redevelop an obsolete and inefficient shopping mall into a regional center, and serve as a catalyst for additional development in the area. He added that the leasehold interests are incompatible with the project as planned, and as approved by the Redevelopment Agency and the City, adding that the existing improvements where these leasehold interests exist will be demolished for the new development. He pointed out that offers of just compensation, pursuant to Government Code 7267.2 have been presented to all three businesses. The Agency Secretary responded that there communications when queried by Chairman Young. written were no The Chairman then advised that the Agency would like to hear from those people who desired to address the Agency on the issue, adding that they should step to the podium and limit their remarks to five minutes and keep in mind the requirements of Section 1245.235 of the Code of Civil Procedure that their comments should only address the following four issues: 1. 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 properties the project; or, sought to be acquired are necessary for 4. Whether an offer, as required by Section 7267.2 Government Code, has been made to the record owners. of the Ruth Eisen, 26 Fashion Square, Santa Ana, addressed the Agency on behalf of Mr. and Mrs. Davis, owners of Snacks 5th Avenue. She 4. stated that Mr. and Mrs. Davis felt that this condemnation action was premature and would prove to be costly to them in legal fees. She pointed out that the Agency and the Davises were close to a settlement and that there was to be another negotiating session in two weeks, adding that the Davises are asking that the Agency delay taking an eminent domain action until after that session. 4IÞ In the discussion period which followed, staff pointed out that Santa Ana Venture was fast approaching a deadline to start construction and that, in order to deliver the property in a timely manner, it was necessary for the Agency to file the eminent domai~ action in order to start the 90-day waiting period to obtain possession of the property. All of the Agency Members expressed a hope that Mr. and Mrs. Davis could be spared unnecessary legal expenses and it was agreed by the City Attorney and the Agency Members that the City Attorney would not ask for a response to the eminent domain action in the normal 30-day period but would specify a 45-day period for response. . Chairman Young then asked if there were further public or Agency Members. There being none public hearing was closed and a motion to adopt 87-01, 02 and 03 was in order. It was then moved by Vice Chairman McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) that the Agency adopt Resolution No. 87-01: 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 DAVID G. DAVIS AND BARBARA A. DAVIS, DBA SNACK'S 5TH AVENUE, IN THAT CERTAIN REAL PROPERTY KNOWN AS #26 FASHION SQUARE, 2850 NORTH MAIN STREET, FOR 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. comments from the he stated that the Resolution Numbers It was moved by Vice Chairman McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) that the Agency adopt Resolution No. 87-02: 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 CATHIE S. WYRICK AND MELISSA CORY LUTHER, DBA MAIL BOXES, U.S.A. IN THAT CERTAIN REAL PROPERTY KNOWN AS #36 FASHION SQUARE, 2850 NORTH MAIN STREET FOR 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. . It was moved by Vice Chairman McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) that the Agency adopt Resolution No. 87-03: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF THAT CERTAIN LEASEHOLD INTEREST HELD AS #31 FASHION SQUARE, 2850 NORTH MAIN STREET, FOR 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. 5. . . . PUBLIC HEARING TO ADOPT A PROPERTY WITHIN THE RIVERVIEW STREET) RESOLUTION DIRECTING CONDEMNATION OF REDEVELOPMENT SITE (3026 WEST FIFTH Chairman Young stated 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 198, Page and Block 271, Parcel 03, for redevelopment purposes. He asked that staff identify the property 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 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 owner cannot be located with reasonable diligence. The City Manager asked Robert Hoffman, Real Estate Manager, to make the staff presentation on this action. The Real Estate Manager stated that the Riverview Community Partnership is acquiring 16 of the 18 acres contained in the Riverview Redevelopment Site and is requesting the Agency to assist in the assemblage of the remaining properties consisting of a motel, a salvage yard, and an abandoned well site, adding that to date the staff has successfully negotiated the purchase of the 1.7 acre salvage yard together with a one-sixth interest in the subject well site. He added that over the past several months the Agency has attempted to acquire the fee interest to the subject well site and had made a full appraised value offer to Mr. and Mrs. Royce Crooks, the only apparent owners staff has been successful in identifying with the exception of the Agency's recently acquired one-sixth interest. He added that a current title report reveals an additional thirteen potential factional ownerships. The Real Estate Manager stated that, since construction is scheduled to commence in March, 1987, it is necessary that the Agency commence eminent domain proceedings in order to ensure timely delivery of the site to the developer, adding that Riverview Community Partnership is responsible for all acquisition costs. He stated further that the public interest and necessity require this redevelopment project. He pointed out that the subject site is included within the North Harbor Redevelopment Project Area Plan, and that it is intended that the redevelopment of this property into a quality residential area will act as a catalyst for the North Harbor Project Area, as well as an attraction for new business to the area and will provide both ownership and rental housing opportunities for the community. He added that it is necessary that the subject property be acquired for inclusion in the subject redevelopment site as it is a land locked parcel surrounded by property already acquired for the proposed 6. project. He added that, pursuant to Government Code 7267.2, the Agency has offered fair market value as established by independent appraisers to purchase the subject property interest and that the owners have declined the offer. . The Agency Secretary been received. affirmed that no written communications had When Chairman Young asked if there were members of the public who wished to address the Agency in support or in opposition to this eminent domain action, there was no response. There being no further comments from the public, staff or Agency Members, Chairman Young declared the public hearing closed and called for a motion to adopt Resolution No. 87-04. It was moved by Vice Chairman McGuigan, seconded by Agency Member Pulido and carried unanimously (7:0) that the Agency adopt Resolution No. 87-04: 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 RIVERVIEW REDEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (3026 WEST FIFTH STREET). . PUBLIC HEARING TO ADOPT PROPERTY WITHIN THE RIVERVIEW STREET) RESOLUTION DIRECTING CONDEMNATION OF REDEVELOPMENT SITE (3225 WEST FIRST Chairman Young stated 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 as Assessor Parcel Number, as Book 101, Page and Block 251, Parcel 24, for redevelopment purposes. He then asked that staff identify the property and the project and to comment on the factors and evidence necessitating the condemnation action. He asked 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. The City Manager requested that staff presentation on this action. the Real Estate Manager make the . The Real Estate Manager said that as he had previously stated this property was within the Riverview Redevelopment Site which was to be the site for the construction of 60 single family homes and 220 apartment units, adding that the IS-acre site is generally located between First, Fifth and Susan Streets and the Santa Ana River. He stated that the property in question is improved with a two-story, IS-unit motel which is approximately 40-years old, adding that the 7. . . . improvements are in average condition since most of the recent improvements have been cosmetic improvements, such as exterior and interior paint and new carpets and drapes. The Real Estate Manager then made a brief slide presentation showing the motel and the surrounding area and added that the subject property was not exempt from condemnation. He stated that the public interest and necessity will be well served and this under-utilized property will be supplanted by a quality residential project which will act as a catalyst for the North Harbor Project Area, as well as an attraction for new business to the area. He pointed out that both ownership and rental housing opportunities will be provided by this new development. He called the attention of the Agency Members to the site map and showed them that it was necessary that the subject property be acquired for inclusion in the project since it provides ingress and egress from First Street, via Susan Street, to the development site. He stated that the owners, pursuant to Government Code 7267.2, had been offered just compensation for their property as established by an independent appraiser. In response to questions from Agency Members Acosta and Pulido, the' Real Estate Manager stated that the property owner was asking approximately three times the fair market value, according to the appraisal, and that staff has been unable to obtain the data upon which the property owner is basing his valuation of his property. The Agency Secretary affirmed to written communications. the Chairman there no that were Chairman Young then asked if there was anyone present to speak in favor of or against the proposed eminent domain action. There was no response. He then stated that if there are no further questions, comments or dicussion 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 property sought to be acquired is necessary for the project, or whether an offer has been made to the owner of record, then the public hearing was' closed and a motion to adopt Resolution No. 87-05 was in order. Agency Member Agency adopt REDEVELOPMENT DIRECTING THE PURPOSES IN ANA, STATE OF (3225 WEST It was moved by Vice Chairman McGuigan, seconded by Pulido and carried unanimously (7:0) that the Resolution No. 87-05: A RESOLUTION OF THE COMMUNITY AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT THE RIVERVIEW REDEVELOPMENT SITE IN THE CITY OF SANTA CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR FIRST STREET). FUND TRANSFER FOR THE SCHOOL SITE ACQUISITION AND IMPROVEMENT FUND (APPROPRIATIONS ADJUSTMENT NO. 92) It was moved by Agency Member Griset, seconded by Agency Member Hart and carried unanimously (7:0) that the Agency approve the repayment 8. of $464,240 from the South Main Redevelopment Project Area Fund to the General Fund for the purpose of providing funds for the School Site Acquisition and Improvement Fund. ... AGREEMENT FOR ARCHITECTURAL SERVICES - BOWERS MUSEUM In response to questions from Agency Member Pulido, the City Manager gave a brief overview of the proposed expansion of the Bowers Museum and suggested that a workshop session might be held so that the new Agency Members could be thoroughly briefed on this project. It was moved by Agency Member Griset, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency: 1. Authorize the City Attorney to prepare and the Chairman to execute an agreement with Hardy, Holzman, Pfeiffer Associates for architectural consulting services for the Bowers Museum building expansion program; and 2. Authorize the Redevelopment Commission to budget. implement the project EXCLUSIVE RIGHT TO NEGOTIATE WITH BGS PARTNERS FOR DEVELOPMENT OF THE NORTHEAST CORNER OF MAIN AND MAC ARTHUR (SAKIOKA SITE) . It was moved by Agency Member Pulido, seconded by Vice Chairman McGuigan and carried unanimously (7:0) that the Agency grant BGS Partners a 180-day Exclusive Right to Negotiate for the development of the northeast corner of Main and MacArthur, referred to as the Sakioka site. AMENDING RESOLUTION REGARDING THE/ ISSUANCE BONDS FOR THE MAINPLACE PROJECT OF 1985 TAX ALLOCATION It was moved by Agency Member Hart, seconded by Agency Member Pulido and carried unanimously (7:0) that the Agency adopt Resolution No. 87-06: A RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. 85-61 AUTHORIZING THE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS OF SAID AGENCY (MAINPLACE PROJECT) . \ REQUEST FOR PROPOSALS FOR CONSULTANT SERVICES, BRISTOL CORRIDOR It was moved by Vice Chairman McGuigan, seconded by Agency Member Hart and carried unanimously (7:0) that the Agency authorize staff to solicit proposals for the preparation of the Bristol Corridor Redevelopment Plan. 4IÞ PROPOSED CHANGES IN THE CURRENT RESIDENTIAL REBATE PROGRAM It was moved by Vice Chairman McGuigan, seconded by Agency Member Hart and carried unanimously (7:0) that the Agency approve the proposed changes to the Residential Rebate Program. 9. AGENCY AGENDA ITEMS There were none. 4Ia COMMUNICATIONS FROM THE PUBLIC There were none. EXECUTIVE SESSION The Agency Members entered into an executive session at 6:49 P.M. and returned to the Council Chambers at 7:00 P.M. with all members in attendance. It was then moved by Vice Chairman McGuigan, seconded by Agency Member May and carried unanimously (7:0) that authority be given to the Agency's negotiators to acquire the Kahn property within the A-5 site for $970,000.00. ADJOURNMENT There being no further meeting was adjourned at ~~::n:~~R:&.~Y , Executive Director the " . 10.