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HomeMy WebLinkAbout10/15/1979 . . . . MINUTES JOINT MEETING WITH CITY COUNCIL AND REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA OCTOBER 15, 1979 The Joint Meeting of the City Council and the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman James Ward at 1:09 P.M. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California. After the pledge to the Flag, roll was called: PRESENT ABSENT Gordon Bricken Daniel Gr iset Robert Luxembourger J. Ogden Markel Al Serrato James Ward Harry Yamamoto Others in attendance: Richard E. Goblirsch, Executive Director Tbm Hammill, Real Estate Officer Stacey Creveston, Secretary B. J. Thompson, City Manager Keith Gow, City Attorney Representative, Blyth Eastman Dillon & Co. Representative, Paine Webber Jackson & Curtis, Inc. Representative, E. F. Hutton & Co. Representative, Miller & Schroeder, Inc. James Saffran, Stone & Youngberg JOINT PUBLIC HEARING FOR THE PROPOSED SALE BY THE COMMUNITY REDEVELOPMENT AGENCY TO WARREN K. VAN INGEN, PETE VAN RUITEN AND MARY VAN RUITEN, AND ENVIRONMENTAL FINDINGS RELATED THERETO The Chairman stated that this 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 sale of property by the Community Redevelopment Agency of the City of Santa Ana to Warren K. Van Ingen, Pete Van Ruiten and Mary Van Ruiten and environmental findings in relation thereto. The site is bounded on the north by Fourth Street, on the West by vacated Van Ness, on the south by Third Street and on the east by realigned Ross Street. The Chairman requested staff to identify the property or issues and give staff recommendation. Mr. Tom Hammill, the Agency's Real Estate Officer, reported that the Environmental Impact Report and staff have found that there will be no significant effects on the environment and that a negative declaration will not be required. He further stated that the Chairman previously identified the property. The property will be improved with a four story commercial and medical complex containing approximately 32,000 square feet. The participant owns two parcels in the block and will rehabilitate the two existing structures at an estimated cost of $200,000. The estimated cost of the new development is $3,000,000. The Chairman communications. then asked staff if there were any written There were none. The Chairman then asked to hear . . . . from the public: First the persons in agreement with the environmental findings or the proposed sale; then the persons disagreeing with the environmental findings or the proposed sale. No one came forward. The Chairman asked if there was anyone else to speak on the subject. Hearing none, the Chairman asked the Agency members if they had any questions of Staff. There being none, the Chairman closed the public hearing. The Chairman stated that he would now entertain a motion of the Community Redevelopment Agency regarding the environmental findings. A motion was made by Mr. Luxembourger, seconded by Mr. Bricken and carried by the following roll call vote to adopt Resolution 79-52: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA MAKING ENVIRONMENTAL FINDINGS NECESSARY FOR THE PROPOSED PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND WARREN K. VAN INGEN AND PETE VAN RUITEN AND MARY VAN RUITEN FOR THE SALE AND DEVELOPMENT OF CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT. AYES: NOES: ABSENT: Bricken, Griset, Luxembourger, Serrato, Ward, Yamamoto Markel None The Chairman/Mayor then stated that he would entertain a motion of the City Council regarding the environmental findings and the proposed sale. A motion was made by Mr. Bricken, seconded by Mr. Griset and carried by the following roll call vote to adopt Resolution 79-182: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MAKING ENVIRONMENTAL FINDINGS NECESSARY FOR THE PROPOSED PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND WARREN K. VAN INGEN AND PETE VAN RUITEN AND MARY VAN RUITEN FOR THE SALE AND DEVELOPMENT OF THAT CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT. AYES: NOES: ABSENT: Bricken, Griset, Luxembourger, Serrato, Ward, Yamamoto Markel None A motion was then made by Mr. Griset, seconded by Mr. Bricken and carried by the following roll call vote to adopt Resolution 79-183: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDERATION TO BE RECEIVED BY THE COMMUNITY 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 WARREN K. VAN INGEN AND PETE VAN RUITEN AND MARY VAN RUITEN 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. AYES: NOES: ABSENT: Bricken, Griset, Luxembourger, Serrato, Ward, Yamamoto Markel None The Mayor/Chairman then stated that he would entertain a motion of the Community Redevelopment Agency regarding the proposed sale. A motion was made by Mr. Luxembourger, seconded by Mr. Bricken and carried by the following roll call vote to adopt Resolution 79-53: 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 COMMUNITY 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 WARREN K. VAN INGEN AND PETE VAN RUITEN AND MARY VAN RUITEN FOR THE SALE -2- . . . . 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. AYES: NOES: ABSENT: Bricken, Griset, Luxembourger, Serrato, Ward, Yamamoto Markel None A motion was then made by Mr. Bricken, seconded by Mr. Griset and carried unanimously to adopt the budget and authorize its implementation by the Community Redevelopment Commission. JOINT PUBLIC HEARING FOR THE PROPOSED SALE BY THE COMMUNITY REDEVELOPMENT AGENCY TO ROSS AND FIFTH DEVELOPMENT COMPANY, AND ENVIRONMENTAL FINDINGS RELATED THERETO The Chairman stated that this 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 sale of property by the Community Redevelopment Agency of the City of Santa Ana to Ross and Fifth Development Company and environmental findings in relation thereto. The site is bounded on the north by Fifth Street, on the west by realigned Ross Street, on the south by Fourth Street and on the east by a line approximately 100 feet east of the east line of Birch Street. The Chairman stated that he would entertain a motion of continuing this public hearing to November 19,1979 at 1:00, P.M. A motion was made by Mr. Luxembourger, seconded by Mr. Bricken and carried unanimously to continue this public hearing to November 19, 1979 at 1:00 P.M. REGULAR AGENCY MEETING The Regular Meeting of the called to order at 1:24 P.M. Community Redevelopment Agency was MINUTES A motion was made by Mr. Bricken, seconded by Mr. Ward and carried unanimously to approve the Minutes of the Regular Meeting of September 17, 1979, and the Special Meeting of October 1,1979. CONTINUATION: SELECTION OF UNDERWRITER FOR SB 99 BOND ISSUE The Chairman stated that the Agency would hear presentations from each of the four firms that submitted proposals for Underwriter for the SB 99 Bond Issue. Representatives of the following firms made presentations: Frank Co. Soriano and Bruce Rothenberg of Blyth Eastman Dillon & Noah Newmark and Alan Altura of Paine Webber Jackson & Curtis, Inc. Dennis Ciocca of E. F. Hutton & Co. Jim Iverson of Miller & Schroeder Municipals, Inc. Lengthy discussion was held with each of the firms. Mr. James Saffran, President of Stone & Youngberg (the Agency's financial consultant for the proposed bond issue), stated that he -3- . . . . had reviewed all of the material submitted, and listened to the presentations and feels that all of the firms are excellent. He stated, however, that the staff and Commission had made an extensive review of the qualifications prior to today's presentations and made their recommendation to the Agency. He stated that he feels the staff's and Commission's recommendation was well thought out and could see no reason to change that recommendation. He further stated that it was in the best interest of the Agency and City to see that this project is completed in a timely fashion and at the lowest possible interest rate with a reasonable profit to the underwriter. Mr. Saffran stated that the agreement contained in the agenda packet would be satisfactory, with the understanding that a definitive agreement would be entered into with the underwriter after negotiations with Agency staff and Stone & Youngberg. The Executive Director stated that there have been some major changes in the bond market since the agreement was made up. Therefore, at this point, certain portions of the agreement will require modification. Lengthy discussion continued. A motion was made by Mr. Bricken and seconded by Mr. Griset to adopt Resolution 79-50: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AND AUTHORIZING THE CHAIRMAN TO EXECUTE AN AGREEMENT FOR INVESTMENT BANKER 5ERVICES BETWEEN THE AGENCY AND MILLER & SCHROEDER MUNICIPALS, INC., and that the Executive Director be instructed to include within that agreement the negotiated terms and conditions as stipulated by the Agency's financial consultant (Stone & Youngberg) relative to completion dates, underwriter fees, and interest rates. After lengthy discussion, the motion carried by the following roll call vote: AYES: NOES: ABSENT: Bricken, Griset, Luxembourger, Ward Markel, Serrato, Yamamoto None Before the question was called for, Mr. Luxembourger asked if the Agency could back out of the SB 99 sale if the figures came in too high. Mr. Saffran stated that a typical underwriting agreement provides that the Agency or City Council has the right to refuse the final proposal and/or postpone the sale up until the moment the bonds are sold. Also before the question was called for, the Executive Director reported that staff is investigating the possibility of bond anticipation notes as an alternative. If it is anticipated that the bond market will go down, the Agency may be better off to make a recommendation that we sell a short term note, say for one year, and at the end of the one year, roll it over to a regular bond. This alternative will be investigated in greater detail with the assistance of the underwriter and financial consultant. Also before the question was called for, Mr. Yamamoto proposed a substitute motion to accept the four firms that have been recommended to the Agency on the pretext that each one of the firms will accept one-fourth of the bond issue, and if there are any that do not accept it, then it would be for three or two or whatever the amount of firms that do accept the Redevelopment bond issue. The Chairman informed Mr. Yamamoto that a motion was presently on the floor that must first be acted upon. The City Attorney concurred. -4- . . . . RESOLUTION TO EXECUTE LICENSE AGREEMENT A motion was made by Mr. Bricken, seconded by Mr. Serrato and carried unanimously to adopt Resolution 79-51: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A LICENSE AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND STEVEN J. KEISER AND PAULA B. KEISER. EXCHANGE OF PROPERTY IN KEISER DEVELOPMENT PROJECT A motion was made by Mr. Bricken, seconded by Mr. Serrato and carried unanimously to adopt Resolution 79-56: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN TO SIGN A PROPERTY EXCHANGE AGREEMENT BETWEEN THE AGENCY AND THE CITY OF SANTA ANA. ACQUISITION OF PROPERTIES WITHIN THE ROSS AND FIFTH DEVELOPMENT COMPANY SITE PRIOR TO EXECUTION OF OWNER PARTICIPATION AGREEMENT A motion was made by Mr. Bricken, seconded by Mr. Griset and carried unanimously to adopt Resolution 79-57: 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 REDEVELOPMENT PROJECT AREA. AGREEMENT WITH WELLS FARGO FOR MAJOR COMMERCIAL REHABILITATION LOAN PROGRAM A motion was made by Mr. Bricken, seconded by Mr. Luxembourger and carried unanimously to adopt Resolution 79-58: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ACCEPTING AND AUTHORIZING THE CHAIRMAN TO EXECUTE A COMMITMENT AGREEMENT WITH WELLS FARGO BANK, N.A., FOR AGENCY'S COMMERCIAL REHABILITATION LOAN PROGRAM. Mr. Griset commented Santa Ana's future. this is one of the brighter spots in that CONCEPT OF HERITAGE PARK A motion was made by Mr. Bricken, seconded by Mr. Ward and carried (Mr. Luxembourger voted NO) to authorize Staff to hire a landscape architect for the expansion of Birch Park, and authorize Staff to develop preliminary plans for Heritage Park. Before the question was called for, Mr. Lee Falco, Jr., owner of the Reuter Castle, addressed the Agency stating his interest in moving the Reuter Castle to Heritage Park and using it as a restaurant, thereby maintaining the historical significance. PROPOSAL FOR SENIOR CITIZEN HOUSING A motion was made by Mr. Bricken, seconded by Mr. Ward and carried (Mr. Yamamoto and Mr. Markel voted NO) to authorize Staff to hire a consultant to prepare a master plan for the Hurwitz property and adjacent area south to Santiago Creek¡ request Alona-Rey to provide Staff with a specific proposal for the development area¡ and instruct Staff to engage in dialog with the residents in the Santiago Creek area for the purpose of receiving input on possible concerns relating to the proposed project, or other projects that may be planned or proposed for the general locale. The Executive Director stated that this would not be a major study, and that it could be completed within 90 days after the selection of the consultant. -5-