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HomeMy WebLinkAbout05/21/1979 . . . . MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA MAY 21, 1979 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman James Ward at 2:01 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 Griset Robert Luxembourger Al Serrato (2:10 P.M.) James Ward Harry Yamamoto J. Ogden Markel Others in attendance: Richard E. Goblirsch, Executive Director David Ream, Assistant Executive Director Tom Hammill, Real Estate Officer Stacey Creveston, Secretary B. J. Thompson, City Manager Dan Stone, Assistant City Manager Keith Gow, City Attorney CONSENT CALENDAR STAFF RECOMMENDATIONS APPROVED On the unanimously approved 5:0 motion of Mr. Bricken, seconded by Mr. Griset, the Agency approved the recommendations of Staff on the following consent calendar items: MINUTES Approved the Minutes of the Regular Meeting held on April 16, 1979. BID AWARD FOR DEMOLITION IN AMERICAN NATIONAL PROPERTIES SITE Received and filed. BID AWARD FOR DEMOLITION IN KEISER DEVELOPMENT SITE Received and filed. APPRAISAL OF PROPERTIES DOWNTOWN PARKING GARAGE REQUIRED THE PROPOSED FOR Received and filed. QUARTERLY ACTIVITY REPORT Received and filed. * * * * * * * * * * * CONSENT CALENDAR FINIS * * * * * * * * * * . . . . CONTINUATION OF PUBLIC HEARING ON CONDEMNATION OF REAL PROPERTY LOCATED IN THE AMERICAN NATIONAL PROPERTIES DEVELOPMENT SITE A motion was made by Mr. Bricken, seconded by Mr. Luxembourger and carried unanimously by the following roll call vote to adopt Resolution 79-16: 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 AMERICAN NATIONAL PROPERTIES DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. AYES: NOES: ABSENT: Bricken, Griset, Luxembourger, Ward, Yamamoto None Markel, Serrato SB-99jCONTRACT FOR FINANCIAL CONSULTANT SERVICES A motion was made by Mr. Bricken, seconded by Mr. Griset and carried (Mr. Yamamoto voted NO) to adopt Resolution 79-25: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING EXECUTION OF AN AGREEMENT WITH STONE & YOUNGBERG MUNICIPAL FINANCING CONSULTANTS, INC. FOR CERTAIN EXPERT FINANCIAL SERVICES. LEASE FOR SOMBRERO STREET PARKING LOT After discussion regarding access to property immediately adjacent to the Sombrero Street Restaurant, which is now used for six to eight parking spaces, a motion was made by Mr. Luxembourger, seconded by Mr. Bricken and carried unanimously to continue this matter to the next regular meeting of the Community Redevelopment Agency. PRESERVATION OF BRICK HOUSE IN 14 ACRE SITE Mr. Bricken stated that he was in favor of preserving the brick house, but was opposed to moving the house adjacent to Birch Park. Mr. Serrato arrived at 2:10 P.M. A motion was made by Mr. Bricken, seconded by Mr. Ward and, after discussion, carried (Mr. Yamamoto voted NO) to grant authorization to store the brick house on property located at First and Birch. A motion was made by Mr. Griset to authorize the development of an agreement between the Agency and Mr. Frank C. Wright for the sale or lease of the property located on Second and Birch for the moving and renovation of Santa Ana's first brick house. The motion died for a lack of a second. It was the consensus of the Agency members that perhaps there was a better site, and that this should be reviewed before committing to this particular site. The Executive Director reported that Mr. Wright has been attempting, for the past several months, to locate a permanent site for the brick house, but has been unsuccessful. He further stated that if Mr. Wright does not find a suitable site, the Agency will not store the house. The brick house will have to be moved in approximately 90 days in order to place a water line in the area as a part of the development of the 14 acre housing site. WALTER SCOTT PROPOSAL A motion was made by Mr. Luxembourger and seconded by Mr. Bricken to allow the six months exclusive right to negotiate with Walter Scott to expire. Discussion was held before the question was called for. -2- . . . . Mr. Scott addressed the Agency stating that he had spent a considerable amount of time and money on his proposal. He stated that he scaled his original multi-story proposal down to a more "human scale" for this particular site. He also stated that he proposed to purchase the site for $4.00 a square foot, not $2.00 a square foot. The Executive Director stated that if Mr. Scott is willing to pursue increasing the useage of the site that he should be given that opportunity, but the Agency should also allow other developers to submit proposals for this site so the Agency could have more than one alternative. By allowing Mr. Scott's exclusive right to negotiate expire, Agency Staff would be free to have conversations with other developers and request that they come back with plans for this site. Staff has talked to other developers who have expressed an interest in developing this site. The motion was amended by Mr. Bricken, seconded by Mr. Luxembourger and carried unanimously to extend the expiration date of the exclusive right to negotiate to the next Agency meeting, and at that time the Agency could consider any changes to the proposal that might be appropriate, and then decide whether to let it expire or extend it. RECESS At 2:35 P.M. the Chairman called for a recess. At 2:46 P.M. the meeting was reconvened with the same members present. DOWNTOWN PARKING GARAGE/CLOSING OF SYCAMORE The Executive Director reviewed the background on the downtown parking garage and the closing of Sycamore. Discussion was held regarding the existing utilities located within Sycamore, and several different alternatives that could be taken in placing the garage on top of the utilities. It is Staff's recommendation that Sycamore be closed, and that Staff be allowed to work out the necessary engineering solutions with regards to the utilities. After discussion, a motion was made by Mr. Bricken, seconded by Mr. Luxembourger and carried unanimously to instruct the Executive Director to undertake the necessary studies to determine the implications of the utility relocation posed by the garage, the closing of Sycamore, and any other factors that may enter into the design of the structure. SANTA ANA CITY EMPLOYEES CREDIT UNION PROPOSAL A motion was made by Mr. Bricken, seconded by Mr. Griset and carried unanimously to grant a six month exclusive right to negotiate to Santa Ana City Employees Credit Union for the easterly half of the area bounded by Flower, Parton, Third and Fourth Streets, and that Staff pursue the restaurant chain that is interested in the remaining westerly half. PROPOSED JONES DEVELOPMENT/APPROVAL OF PRELIMINARY PLANS A motion was made by Mr. Bricken, seconded by Mr. Griset and carried unanimously to authorize a six month extension of exclusive right to negotiate between the Agency and Allen E. Jones, developer. A motion was made by Mr. Bricken, seconded by Mr. Ward and carried unanimously, after discussion, to instruct the Executive Director to operate on the basis of a plan that shows Garnsey Street -3- . closed, as well as one that shows Garnsey Street open, and that the Agency will investigate the implications and make a decision at a later date as to whether it stays open or closed. The Executive Director reviewed the background and proposed Jones Development plans. He stated that the Commission had requested that Mr. Jones work out the problems with the neighborhood tegarding the closing of Garnsey Street. Mr. Jones has been attempting to acquire as much of the property as possible north of his development to 10th Street, thereby eliminating the need for Garnsey Street. After all of the property has been acquired, Mr. Jones intends to come in with a development plan for the entire north half of the block between Flower and Parton. Mr. Jones has some options on some of the property in the area, but has not been successful in acquiring all of the property. The Executive Director stated that he feels Mr. Jones will be willing to work with the idea that Garnsey Street will be left open, but it will seriously affect his plans. . A motion was made by Mr. Bricken and seconded by Mr. Griset to approve in concept, the formation of a master development plan for the area bounded by Civic Center Drive, Tenth Street, Flower and Parton Streets. After lengthy discussion, the motion failed by the following roll call vote: AYES: NOES: ABSENT: Bricken, Griset, Serrato Luxembourger, Ward, Yamamoto Markel In the discussion held prior to the vote, Mr. Ward stated that he was opposed to a master development plan for this area because he believed in free enterprise. The Executive Director reported that money has been budgeted for use in the original Jones site, and for preparing a study for the formation of a master development plan. Money was not budgeted for the acquisition of any property north of the proposed project. The study would analyze closing versus not closing Garnsey. A scope of development, such as condominiums, apartments, etc., would be brought before the Agency, as well as an estimated cost to acquire the land and an estimate of what the Agency could receive from prospective developers for the land. . The Executive Director also reported that Staff has had several meetings with the owners of property in the area, and that about 80% of the property owners do not present a major problem with what is being proposed. About 20% of the owners do present a problem because they have their own development plans. DEVELOPMENT OF 510 AND 512 NORTH MAIN STREET A motion was made by Mr. Griset and seconded by Mr. Serrato to grant Mr. Ralph Allen a six month exclusive right to negotiate on the development of 510 and 512 North Main Street. Before the question was called for, Mr. Ralph Lowy of Lesny Development (who was also requesting a six month right to negotiate on the same property) addressed the Agency stating that his company had spent considerable time preparing their proposal, and if they were not granted the exclusive right to negotiate, they would probably withdraw from this area. He further stated that his proposal outlined what the Redevelopment Agency was seeking in terms of development. He also pointed out that it was the Redevelopment Agency Staff's opinion that his proposal was better than any other proposal that had been presented for this site. . -4- The question was . roll call vote: then called for, and carried by the following AYES: NOES: ABSENT: Griset, Luxembourger, Serrato, Ward, Yamamoto Bricken Markel After the vote was taken, Mr. Bricken stated that the observations made were basically correct: The Commission and Agency instructed Staff to take their actions and they (Staff) operated on the confidence that the Agency would follow through with their request. Mr. Bricken further stated that if the Agency now chooses not to do that, this poses a question of priorities and our authority to follow through with the previous instructions to take a certain policy direction: Such things have a way of getting around that we are not able to follow through on our commitments, so it seems that we may have a problem with Redevelopment and priorities to negotiate with future developers. He further stated that the Agency should follow through on the policy that they set sometime in the past, and feels that we (Agency and Staff) are going to have to mend some fences. . WHITMOR PROPOSAL FOR WEST SANTA ANA IMPROVEMENT PROGRAM A motion was made by Mr. Bricken, seconded by Mr. Luxembourger and carried unanimously to receive and file the report on the Whitmor Proposal for the West Santa Ana improvement program. HERITAGE EXPANSION PROPOSAL A motion was made by Mr. Bricken, seconded by Mr. Serrato and carried unanimously to grant a six month extension on the exclusive right to negotiate to Heritage Development Company, and approve their preliminary plans on their expansion proposal. ORAL STATUS GRGAS) REPORT/ECONOMIC DEVELOPMENT CORPORATION (MR. VICTOR The Executive Director reported that Mr. Grgas was ill and that the report would have to be continued. ORAL STATUS REPORT/COMMERCIAL ROBERT CLAYTON) REHABILITATION LOAN PROGRAM (MR. . Mr. Robert Clayton, the Agency's Rehabilitation Planning Specialist, reported that Staff has been pursuing the development of a preferential rate commercial rehabilitation loan program to facilitate the revitalization of downtown Santa Ana. Negotiations are continuing with two major lending institutions. The delays have been occasioned by the extraordinary legal questions involved in such a program; these seem now nearing final resolution. We should be receiving a letter of commitment from one of these lenders within the next several weeks, which we will report immediately to the Agency. EXECUTIVE SESSION At 3:30 P.M., the meeting was recessed to an Executive Session to discuss legal matters regarding hiring and firing, and a condemnation suit. At 3:37 P.M., the meeting was called back to order with the same members present. SETTLEMENT OF RYAN CONDEMNATION LAW SUIT . A motion was made by Mr. Griset, seconded by Mr. Serrato and -5- . . . . carried unanimously to approve the settlement for acquisition of property (AP 008-151-04, 05, and 09) in condemnation case involving Howard D. Ryan, et us, et al, in the amount of $197,000.00. HIRING LEGAL COUNSEL-- DOWNTOWN PARKING GARAGE SB 99 COMMERCIAL REHAB LOAN-- BOND, A motion was made by Mr. Griset, seconded by Mr. Serrato and carried unanimously to: (1) Authorize Staff to hire Jones, Hall, Hill & White as bond counselor for the commercial rehabilitation program¡ (2) Authorize Staff to hire Rutan & Tucker on the assessment district for the downtown parking garage¡ (3) Authorize Staff to hire Jones, Hall, Hill & White for the SB 99 issue. RECESS At 3:40 P.M., the meeting was recessed to 5:30 P.M. to the Black Star Room of the Saddleback Inn, Santa Ana Freeway and First Street, Santa Ana, California for a joint study session with the Community Redevelopment Commission. At 5:50 P.M., the meeting was reconvened with the same Agency members present, and the following Redevelopment Commission members: John W. Hill, Ted Jessee, Alexander Nalle, Robert Newcomb, James Orr, John Coil, and Hector Godinez. Others in attendance were: Richard E. Goblirsch, Executive Director¡ David N. Ream, Assistant Executive Director¡ B.J. Thompson, City Manager¡ Dan Stone, Assistant City Manager¡ Keith Gow, City Attorney¡ Edward Cooper, Assistant City Attorney¡ and Claris Gratian, Deputy City Attorney. JOINT STUDY SESSION WITH REDEVELOPMENT COMMISSION At the request of Redevelopment Commission Chairman, Alexander Nalle, the Executive Director stated the purpose of the joint study session. He explained that since the elections of April 3, 1979, had resulted in the selection of four new Agency members, the Commission had extended an invitation to the Agency to meet to get acquainted and discuss mutual concerns, problems, functions, etc. RESPONSIBILITIES COMMISSION REDEVELOPMENT AGENCY REDEVELOPMENT AND OF For information purposes, the Executive Director reviewed the basic agreement between the Agency and Commission outlining the responsibilities of each body. He explained that this agreement is based on the organization of the yearly Agency budget. That budget is divided into two basic funds, operations and capital. The operation fund accounts for all the administrative costs of running the Agency. The capital fund accounts for all costs of implementing specific activity projects, such as the 14 acre housing site, Fashion square expansion, Heritage Phase I and Keiser. Under the terms of the agreement the Agency retains ultimate control by approving the operations and capital budgets, and by appropriating funds for use by the Commission. The Commission has been delegated the authority for all contracts and agreements consistent with the Agency's capital budget. This delegation gives the Commission the right to approve and process all bid calls, bid awards, consultant contracts, relocation payments, property acquisition contracts, appraisal contracts, architectural contracts and demolition contracts. All of these -6- . items are processed through the normal finance and purchasing procedures of the City. The Agency retains the right to prior approval of expenditures by the Commission which exceed the project budget by more than five percent (5%). In addition, the Agency has delegated to the Commission the authority to approve contracts and agreements arising from the operations budget. However, the Agency reserves the right of final approval if the contract or agreement exceeds $25,000. The Commission submits quarterly financial reports to the Agency and all actions taken by the Commission, not requiring Agency action, are placed on the Agency concent calendar for information purposes. Also the Agency and Commission try to conduct periodic meetings, such as joint study sessions, to review the Commission's progress and to discuss the Agency's concern over any project implementation. The Executive Director explained that the agreement was drafted at the request of the Agency to relieve them of the basic housekeeping functions. Several projects, such as the OCTD facilities must be handled by the Agency because they involve non- Agency funds. . Agency Chairman Ward functioning very well excellent job. Agency role appears to have established. stated that the agreement had been and that the Commission had been doing an member Serrato noted that the Commission's expanded greatly since the agreement was SB 99 AND MARKS FORAN BOND ISSUES . Commissioner Jessee requested the Executive Director to explain the current status of the SB 99 and Marks Foran bond issues. The Executive Director explained that the Agency's proposed SB 99 bond issue for the 315 unit market rate condominium project, and the City's Marks Foran housing rehabilitation loan program bond issue have been seriously jeopardized by the introduction of HR 3712 by Congressman Al Ullman, Chairman of the House Ways and Means Committee. The legislation provides for the removal of the tax exempt status of state and local government mortgage secured revenue bonds. There are exceptions for rental projects, but the effect of HR 3712 is to "kill" nearly all pending SB 99 and Marks Foran issues in the State of California. Though HR 3712 is only pending legislation, it provides for an effective date that will effect all mortgage secured obligations issued after April 24, 1979. This retroactive provision clouds the tax exempt status of all pending issues even before the bill becomes law. A bond opinion could be written guaranteeing tax exempt status at the present time, but a statement to the effect that HR 3712 is pending and would render an issue taxable would have to be included. The Executive Director stated that he had gone to Washington, D.C. the previous week to testify against the bill before the House Ways and Means Committee. It appears that the Committee may be willing to amend the bill to allow tax exempt bonds for certain types of low and moderate income housing and rehabilitation. In addition, the legislation may be amended to allow issues such as the Agency's and City's, where official action had been taken to proceed. Approximately 170 people testified against the bill in two days of public hearings. ~ -7- DEPARTMENT OF TRANSPORTATION GRANT APPLICATION . The Executive Director informed the Agency and Commission that Staff had just been informed that the House Appropriations Committee may reduce the fiscal year 1979 funding for the Urban Initiatives Program from $200,000,000 to $60,000,000. A 1979 appropriation of $60,000,000 as opposed to $200,000,000 will seriously jeopardize the Agency's grant. In view of the constant cut backs in federal assistance, the Executive Director asked the Agency to make a serious commitment to get a substantial portion of Jarvis (Proposition 13) savings back from the developers. CULTURAL CENTER PROGRESS REPORT At the request of Commissioner Hill, the Executive Director gave a short status report on the Cultural Center for the Performing Arts. He stated that the Agency's consultant, Mr. Hanson, was on a trip to China and the far east. The Agency staff is still proceeding along the path of encouraging the location of the Center's facilities in Santa Ana on the site to be donated by Mr. Hurwitz. . Agency member Yamamoto stated that efforts would have to be made to insure the residents in the nearby area that the traffic from the center would not adversely affect them. EAST FOURTH STREET DISCUSSION Agency member Bricken inquired as to what efforts were being undertaken by the Commission and staff in the East Fourth Street area. The Executive Director stated that Staff was waiting to see if the McLean Cadillac dealership would remain in the downtown before a planning effort was undertaken for the East Fourth Street area. . Chairman Nalle stated that the East Fourth Street area would require an amount of funds that the Agency is unable to provide because of Proposition 13. Mr. Ward asked whether the East Fourth Street area should be moved up in terms of priority. Mr. Orr explained that the Agency was moving in a logical manner down Fourth Street from west to east and that great progress had been made. Mr. Newcomb stated that the construction of the downtown parking garage would be a tremendous lift for the business community. Mr. Hill stated that the Santa Ana Civic Center Association has been making a strong effort to attract members from the East Fourth Street Latin community. Mr. Godinez explained that a balance of Latins and Anglos is needed in the downtown. The new developments that are proposed will help to bring that balance into place. The downtown should be a place that both Anglos and Latins can use and enjoy. ADJOURNMENT The joint study session P.M. ~¿~ was adjourned by Chairman Ward at 7:10 . '-~/.~ James Ward, Chairman Richard E. Goblirsch Executive Director -8-