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HomeMy WebLinkAbout03/28/1978 .' ~. . MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY PUBLIC HEARING SANTA ANA, CALIFORNIA MARCH 28,1978 The Regular Meeting of the Community Redevelopment Agency was called to order by Chairman David Brandt at 5:00 P.M. in the Council Chambers, 22 Civic Center Plaza, Santa Ana, California. After the pledge to the Flag, roll was called: PRESENT ABSENT David Brandt Gordon Bricken Vernon Evans John Garthe David Ortiz James Ward Harry Yamamoto 4IÞ Others in attendance: Richard E. Goblirsch, Executive Director Tom Hammill, Real Property Agent Bruce Spragg, City Manager Daniel Stone, Assistant City Manager Keith Gow, City Attorney Ed Cooper, Assistant City Attorney Kirk S. Lamb David Casnocha, Attorney Roy Lewis Robert F. Waldron, Attorney Leo Friis Warren Van Ingen Members of the Civic Center Barrio Committee HERITAGE DEVELOPMENT COMPANY The Executive Director reported that Mr. Warren Van Ingen owns approxi- mately one-third of the block bounded on the north by Santa Ana Boulevard, . on the west by Parton Street, on the south by Third Street, and on the east by Van Ness Avenue. He stated that the project would involve the acquisition of the remainder of the block, at an "estimated cost to the Agency of $750,000. The appraised fair market value price would be $210,000; Agency's net cost being approximately $500,000. As a point of information, the proposed development would bring a net increase of $100,000. Five years after construction is completed, Agency will have had its investment returned. Mr. Van Ingen, Chairman of the Board of Heritage Development, presented development site plans for his proposed complex. A portion of Van Ness Avenue, he described, would be mall use. The development will consist of retail commercial space, financial space, and restaurant space. He emphasized that delivery service to all tenants will take place within the complex via structured garage facilities; heavy land- scaping will highlight the entire development with adequate greenbelts guaranteed, as well as a proposed overpass on Santa Ana Boulevard. Mr. Van Ingen further stated that his company plans to own and operate the development themselves. He expressed that he felt the proposed complex was good for the whole community, as well as the Civic Center ...and that the plans presented an overall living environment. The Executive Director pointed out that the contract between Heritage Development and the Agency is very binding, offering as much guarantee as can be expected. Property is to be dedicated to the Agency free and 1. clear of all liens and encumbrances. In the event the project does not go through the Agency will not have conveyed the land to Mr. Van . Ingen, and the Agency will have first rights to acquire his parcels. The Agency will, of course, be obligated to give back the $210,000. In addition, as the Agreement spells out, the pedestrian mall is a part of Mr. Van Ingen's responsibility. Mr. Leo Friis, 600 North Clementine Street, Anaheim, owner of property located at 301 North Parton Street, Santa Ana addressed the Agency. As a property owner effected by the proposed development, Mr. Friis expressed his concern as to when the Agency is to purchase his property. In response to Mr. Friis' query, the Executive Director stated that the Agency previously authorized Staff to conduct appraisals. Those appraisals have been completed and if the Agency approves, Staff will proceed with acquisition. He anticipates delivery of the site to Mr. Van Ingen to be in 9 to 12 months. Upon approval, acquisition will commence immediately and Staff will be contacting property owners of effected parcels within the next week. Prior to adoption of Resolutions 78-16 and 78-17, Mr. Yamamoto expressed his concern with the hiring of out-of-town talent rather than local talent to further our redevelopment plans. Therefore, he informed . the Agency, he could not support a motion that would approve proceeding with the proposed development activities. Mr. Evans stated that it was certainly understood that anyone is free to make proposals and it appears the Agency has an opportunity at this time to conduct something constructive, and he supports proceeding with the project. Mr. Brandt reminded the Agency that the money that is going to be spent on the project will ultimately be used to buy property from Santa Ana homeowners and businesses. In response to a query by Mr. Yamamoto as to whether Mr. Van Ingen was a local developer, the Executive Director explained that the offices of Heritage Development are located directly to the east of the Civic Center. This, he further explained, is considered to be a local develop- ment company. Mr. Evan's motion to adopt Resolution 78-16: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA MAKING ENVIRON- MENTAL FINDINGS NECESSARY FOR THE PROPOSED PARTICIPATION AGREEMENT . BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HERITAGE DEVELOPMENT FOR THE SALE AND DEVELOPMENT OF THAT CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT, was seconded by Mr. Brandt, and approved by the following roll call vote: AYES: NOES: ABSENT: Brandt, Bricken, Evans, Garthe, Ortiz, Ward Yamamoto None. Mr. Ward's motion to adopt Resolution 78-17: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDERATION TO BE RECEIVED BY THE COM- MUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA PURSUANT TO A PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HERITAGE DEVELOPMENT COMPANY FOR THE SALE AND DEVELOPMENT OF CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT; APPROVING THE PROPOSED SALE OF SAID REAL PROPERTY; AND APPROVING THE PARTICIPATION AGREEMENT PERTAINING THERETO, was seconded by Mr. Bricken, and approved by the following roll call vote: . AYES: NOES: ABSENT: Brandt, Bricken, Evans, Garthe, Ortiz, Ward Yamamoto None. 2. RESOLUTION 78-15 . Tom Hammill, Real Estate Officer of the Agency, identified the property involved as being within the proposed Orange County Transit District Park-And-Ride site. Property is to be acquired for the total considera- tion of $99,600.00 At 5:33 P.M., Chairman Brandt informed Agency that Mr. Ward regrettably has a commitment due to employment and is excusing himself at this time from the meeting. The Executive Director continued with a brief reply to Mr. Yamamoto's request for some sort of recommended action on this issue. The Execu- tive Director explained that Staff is only following the direction of the City Council that the Redevelopment Agency will acquire the site. According to the contract with OCTD, Staff cannot close escrow until the Environmental Impact Report is completed. He went on further to state that the Environmental Impact Report for the Park-And-Ride has been completed and the period for legal action is past. Presently, there is a good deal of controversy surrounding this site, but the problem pertains to the Mortuary issue and not the proposed Park-And- Ride facility. . Resolution 78-15: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN OF THE AGENCY TO EXECUTE AGREEMENTS FOR THE ACQUISITION OF REAL PROPERTY IN THE REDEVELOP- MENT PROJECT AREA, was adopted on the motion of Mr. Bricken, seconded by Mr. Evans, and carried by the following roll call vote: AYES: NOES: ABSENT: Brandt, Bricken, Evans, Garthe, Ortiz, Yamamoto None Ward CIVIC CENTER BARRIO - MEAD HOUSING APPLICANTS A motion was made by Mr. Ortiz, seconded by Mr. Bricken, and carried unanimously to receive the report from the civic Center Barrio Committee, and to approve the Barrio Committee recommended applicants for the Mead rehabilitation housing units. SMITH-TUTHILL-LAMB MORTUARY Mr. Kirk S. Lamb, tenant of the Mortuary site, informed the Agency that he was in complete agreement with Mr. Lewis (owner of the Mortuary 4IÞ site) to sell his property at the best price he can get for it--that of $490,000 to the Community Redevelopment Agency. He further informed the Agency that his objection at this late date was due to only recently discovering that there was indeed a contract to sell the Mortuary to Santa Ana First Federal. He stated that last year, Mr. James Ward had informed him that if Smith-Tuthill-Lamb were unable to pay Mr. Lewis' asking price of $750,000 that when the Rede- velopment Agency acquires the property it can be sold for less. Then, he further quoted Mr. Ward as stating, property could still carry the usage the Mortuary wants. Mr. Lamb informed the Agency that he sub- sequently spoke to Ms. Susan Shick, who was at that time the Assistant to the Executive Director. Ms. Shick informed him that Agency could not speak to him as a tenant; unless tenant is buying, Agency can say nothing. Mr. Lamb explained that on February 28, an agreement was made to sell the Mortuary. He stated he is willing to pay the same price Santa Ana First Federal is to pay for the property. He just desires to buy a business which has been in Santa Ana since 1910. Mr. Bricken stated that if property were available and owner desired to sell to someone else, even if everything else were the same time- 4IÞ wise, the owner could nevertheless choose to sell to whomever he wanted. Mr. Lamb stated that in his opinion, Mr. Lewis would still have sold to the Agency because of the tax shelter the sale allows him. He 3. .. further stated that he was only requesting the Agency to allow him to remain in the Mortuary building. . The Executive Director stated that part of the agreement to sell to First Federal was that the renovation would be considerable. He fur- ther stated that the Agency entered into this transaction based on the agreement that the building was to be vacant, due to the fact that the owner had reported to the Agency that it would be vacant. The Executive Director reported that if Mr. Lamb became further involved in a legal battle over the sale, the Agency may choose to withdraw from the project altogether. Agency would then acquire by condemnation only that portion of land needed for the Park-And-Ride facility and allow Lewis, Lamb, and First Federal work out their own settlements. Mr. Ortiz made a motion to receive the oral comments as presented. Mr. Bricken seconded and the motion was approved by the following roll call vote: AYES: NOES: ABSENT: Brandt, Bricken, Evans, Garther, Ortiz Yamamoto Ward Prior to adoption of the motion, much discussion ensued. Mr. Bricken . questioned Mr. Lamb as to why he had waited to make his bid until after the agreement was finalized. Mr. Lamb responded that in spite of citizen support to prevent the building from being demolished, Mr. Lewis' asking price continued to be $750,000. He stated that the date of February 28,1978, was when he first discovered that First Federal was purchasing the pro- perty for $270,000--a price the Mortuary could afford to pay. This delay of discovery, he contends, was caused by the misinformation he received from Mr. Ward and Ms. Shick as he previously stated. Mr. Bricken informed Mr. Lamb that all the actions referred to were all handled in a public place and manner. Therefore, he could still not understand how Mr. Lamb only just discovered this information on February 28,1978. Mr. Robert F. Waldron of 550 Golden Circle Drive, Santa Ana and attorney for the property owner, Mr. Lewis, presented a brief report informing the Agency that Mr. Lewis has a lease with Mr. Lamb and a lawsuit on that lease. Further, he stated, almost a year ago Mr. Lamb informed Mr. Lewis of his desire to vacate the premises within six months. . Also, he stated, the lease Mr. Lamb is referring to was dated as signed on January 23,1978. The agreement Mr. Lewis has with the Agency dated January 9,1978 is to sell Mr. Lewis' property to the Agency. Mr. Lewis intends to honor that agreement and is relying on the fact that the Agency is going to honor that agreement also. Legal action is not being ruled out as a possible means to meet the conditions of the agreement. Mr. David Casnocha of 401 Civic Center Drive West, Santa Ana and at- torney for Mr. Lamb then presented a brief report explaining that Mr. Lamb is indeed aware of the agreement to sell to the Redevelop- ment Agency that is contained in his lease agreement. He emphasized, however, that Mr. Lamb did not learn of such until it was too late to acquire the property from Mr. Lewis. Mr. Lamb, he further stated, is willing to preserve the Mortuary and would like the opportunity to purchase the property. Mr. Evans stated that he would be in support of the demolition of the building to solve the problems if necessary. Mr. Yamamoto put forth a substitute motion to refer the issue to Staff . and City Attorney for review and then Agency could vote on the issue. The motion failed due to lack of a second. 4. "' , Mr. Bricken reviewed the sequence of events leading to the present issue of Mr. Lamb's request to purchase the Mortuary property. Mr. I Bricken stated that the Agency is in a very complicated transaction that has involved much decision-making and effort to negotiate to this present position. Viewing Mr. Lamb's issue as one of potential ligiation, Mr. Bricken stated that the demolition of the building was still one of the options available to the Agency. ADJOURNMENT On the motion of Mr. Ortiz, seconded by Mr. Yamamoto, and carried unanimously, the Regular Meeting of the Redevelopment Agency was ad- journed at 6:04 P.M. ~Þ~",...t~ Dav1d L. Bran, Chairman ~~ Richard E. Goblirsch, Executive Director . . . 5.