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HomeMy WebLinkAbout02/20/1979 I-~ . . . . MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA FEBRUARY 20, 1979 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman David L. Brandt at 2:20 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 David Brandt Vernon Evans John Garthe David Ortiz James Ward Harry Yamamoto Gordon Bricken Others in attendance: Richard E. Goblirsch, Executive Director Tom Hammill, Real Estate Officer Stacey Creveston, Secretary Keith Gow, Acting City Manager Richard Botti, Keyser Marston Associates CONSENT CALENDAR ITEMS REMOVED & DISSENTING VOTES Agency member Yamamoto voted NO on Item 4.C. (Keyser Marston Contract Modification); Agency member Ward abstained on the second issue of Item 2 (Relocation Assistance Program--Park-And-Ride). CONSENT CALENDAR STAFF RECOMMENDATIONS APPROVED On the unanimously approved 6:0 motion of Mr. Garthe, seconded by Mr. Ortiz, the Agency approved the recommendations of Staff on the following consent calendar items: MINUTES Approved the 15, 1979. Minutes of the Special Meeting held on January RELOCATION ASSISTANCE PROGRAM Authorized the Executive Director to issue relocation assistance as follows (Mr. Ward abstained from the Park-And- Ride relocation assistance): Heritage Development 1. Leo J. Friis/pioneer Press 301 N. Parton $13,200.00 Park-And-Ride 1. Santa Ana First Federal 506 N. Broadway ( $11 ,955.58 BID AWARD FOR DEMOLITION IN HERITAGE SITE Concurred in award of contract to lowest responsive bidder, Hintz Wrecking Company, Inc. in the amount of $29,800. (The . . . . Chairman pointed out that the amount shown on the Agenda, $23,800, was a typographical error, and that the amount is $29,800, as shown on the Abstract of Bids.) EAST FOURTH STREET Concurred in Commission recommendation to direct Staff to solicit proposals from professional planners to develop a physical and economic plan for the East Fourth Street area. 14 ACRE HOUSING SITE MARKET ABSORPTION STUDY Concurred in Commission action authorizing Executive Director to enter into contract with Keyser Marston Associates for the amount not to exceed $8,000 to conduct a market analysis study. KEYSER MARSTON CONTRACT MODIFICATION Concurred in Commission authorization to prepare contract modification and bring back for approval. (Mr. Yamamoto voted NO.) RESCUE MISSION Authorized payment of a finder's fee of $10,000 to any real estate salesman or broker who finds an acceptable site for the relocation of the Rescue Mission. QUARTERLY ACTIVITY REPORT Received and filed. *******************CONSENT CALENDAR FINIS************************* BIRCH PARK EXPANSION/MINTER HOUSE The Executive Director stated that Staff was somewhat confused as to what direction the Agency wanted Staff to take with regards to Birch Park expansion, and stated that one of the problems is that the recently awarded grant from the Department of Interior for improvement of the existing portion of Birch Park shows the boundaries of the first phase of improvements as the east side of Birch Street. The Executive Director questioned whether B~ch Street should be closed all the way to the east, which would necessitate severance damage, or should a driveway type enterance be provided for access into Third and Birch. A motion was made by Mr. Ward, and seconded by Mr. Garthe, but did not carry due to a tie roll call vote, to authorize Staff to develop an Owners Participation Agreement with Mr. Heath, or any other interested party for the sale of the Minter House. AYES: NOES: ABSENT: Ward, Brandt, Garthe Evans, Yamamoto, Ortiz Bricken The Chairman stated that Agency member Bricken would be present at the evening session. It was unanimously agreed upon that this item would be continued at the evening session. APPRAISAL CONTRACT FOR FASHION SQUARE EXPANSION A motion was made by Mr. Ward, seconded by Mr. Ortiz and carried unanimously to authorize the Executive Director to award an appraisal contract to Robert H. Steele of Landauer Associates, Inc. for a total of $15,000. -2- DOWNTOWN PARKING GARAGE . The Executive Director reported that the Agency had previously authorized Mr. Richard Botti of Keyser Marston Associates to prepare a report as to the feasibility of a parking garage in the downtown. The Executive Director stated that the report has been completed, and introduced Mr. Botti. . Mr. Botti reviewed his report stating that the optimum location for the parking garage is between Fourth and Third, Broadway to Main. The cost to develop the garage would be approximately $3,100,000 for a minimum of 413 parking spaces. Mr. Botti recommended that the garage be financed under a joint public/private partnership, where the property owners are responsible for financing a portion of the construction costs through an assessment district and the City and Redevelopment Agency be responsible for operating the garage. Mr. Botti stated that based on estimated construction costs, garage revenues and a $1,300,000 contribution by the City and Redevelopment Agency toward the development costs, cash projections indicate the maximum property owners assessment will be $125,000 annually. During the initial five years, he assumed that the assessment would be low to reduce the initial burden to the property owners. The average contribution by the City and Redevelopment Agency is less than $30,000 annually over the 25 year life of the bonds. Offsetting this annual cost is the increase in business tax and property tax resulting from the construction of the garage and other redevelopment activities. This revenue is estimated at $20,000 to $25,000 per year. Mr. Botti recommends constructing the garage and considers the parking garage to be an essential element of a comprehensive revitalization program for downtown Santa Ana, and feels that the construction of the garage, together with the cooperative spirit of the property owners in financing the garage and continued rehabilitation activities sponsored by the Agency, will greatly enhance the long term economic growth of downtown Santa Ana. The Chairman stated that he had five requests from the public to speak regarding the parking garage. The following downtown businessmen and property owners addressed the Agency stating their support for the parking garage, and how they felt the garage would benefit the downtown: . Richard Beem, Robert's Portraits on Fourth Street Denny Milburn, 219 West Fourth Street, businessman associate of Robert Heath Robert Heath, 206 W. Fourth Street, Suite 410 Dave Williams, Director, Santa Ana City Center Association Dave Flaherty, Davis Stationers, 114 West Fourth Street and The businessmen feel that the downtown parking garage is a step in the right direction, and that it would indeed help their businesses by providing parking so that they can lease out their second floor space, as well as a good start to upgrade downtown Santa Ana and attract more businesses. They are also very willing to pay the assessment on their properties. Mr. Flaherty asked the members of the audience in support of the downtown parking garage to stand up. Approximately 30 people stood up in support of the downtown parking garage. Mr. Ward stated that this was the first time that he had seen the businessmen come to the Agency meeting and support a project they were participating in, and that he was quite pleased. . The Executive Director showed a map of the general area in the -3- . . . . downtown, and pointed out that there were a significant number of buildings in the downtown area that are planning, are in the process of, or have completed building rehabilitation. Agency member Yamamoto expressed concern about floating another bond, and stated that he would not support doing such. The Executive Director explained that before we get to the point of issuing the bonds, we will have to circulate a petition and hold a protest hearing. He further explained that the assessment district bond is not an obligation bond against the City. It is secured by the liens against the individual property owners. Discussion continued regarding the City's contribution of $300,000. A motion was made by Mr. Ward, seconded by Mr. Ortiz and carried (Mr. Yamamoto voted NO) to (1) approve the Keyser Marston report and proposed financing scheme and authorize the Executive Director to submit to the City Council for action; and (2) authorize the Executive Director to solicit proposals from bond counselors, bond consultants and architects for construction and financing. SASSCER PARK A motion was made by Mr. Evans, seconded by Mr. Ward and carried unanimously to approve the preliminary drawings of Sasscer Park and authorize the Executive Director to bring back a contract with the firm of Ronald D. McMahon & Associates for the preparation of working drawings for the development of Sasscer Park. INTOWN CONDOMINIUM DEVELOPMENT A motion was made by Mr. Ward, seconded by Mr. Garthe and carried unanimously to authorize Staff to proceed with the development of an agreement for the intown condominium development, pursuant to financial terms outlined. SB-99 BOND ISSUE A motion was made by Mr. Ward, seconded by Mr. Brandt and carried unanimously to authorize the Community Redevelopment Commission to select the necessary bond consultant and bond counselor in preparation for the issuance of SB-99 bond. ORAL REPORT BY R. CLAYTON ON LOGAN HOUSING REPLACEMENT PROGRAM Mr. Robert Clayton, the Agency's Rehabilitation Planning Specialist, reported that the pilot project (the Ruiz house) has been delivered on site; a small staff has been put together to implement the continuation of the Logan housing replacement program; a series of bilingual forms have been developed explaining the program and applications; a community meeting was held; three members of Staff have been in direct contact with the community, walking the streets and knocking on doors informing property owners and residents of the program. This has resulted in three applications which are presently being processed. The deadline date for the applications is March 7,1979. Everything appears to be on schedule. Agency member Evans asked if Staff had been in contact with a Mrs. Androtti. The Executive Director stated that he had been in contact with her on several occassions. Mr. Evans asked if Staff had contacted her since Friday. Staff's reply was no. A motion was made by Mr. Evans, seconded by Mr. Ward and carried unanimously to receive and file the report. ORAL REPORT BY S. FAIR DEVELOPMENT GRANT PROPOSAL ON DEPARTMENT OF TRANSPORTATION JOINT Susan Fair, Agency's Administrative Assistant, reported that the -4- . since Staff submitted the draft Department of Transportation Grant Application last month, Staff has been working with the Department of Transportation (DOT) and the Urban Mass Transportation Administration (UMTA). The public improvements proposed in the formal application have been modified. The street improvements, i.e. computerization of traffic signals, street lighting, drainage improvements and street widening have been eliminated from the final application, as FAU funds have been committed for these improvements. The funds from this have been included back in as additional funds for the expansion of Birch Park. Total funds being requested from DOT are $4,356,000. The proposal involves the construction of an air-rights pad over the terminal, public improvements designed to improve pedestrian access to the terminal, and the private development of properties adjacent to the terminal. The private developments being proposed include the Walter Scott development, Keiser Development, Dennis/Burkes Development, and the Heritage Development expansion. The application is also requesting some pedestrian related public improvements such as Sasscer park, expansion of Birch Park and a proposed plaza by Walter Scott Development, to improve pedestiran access to the terminal. . The Agency will be providing 20% matching funds. These funds have already been allocated for the proposed developments. Staff is currently in the process of negotiating an agreement with United Transportation Union. This agreement is a result of the requirement of Section l3(C) Agreement with the local transportation union. This agreement simply says that they have reviewed the proposal and that it will not negatively affect any transportation workers. The proposal is being considered by the Orange County Transit District on March 5, and by the Orange County Transportation Commission as an amendment to its current Transportation Improvement Program on March 12, 1979. We do not anticipate any difficulties in receiving formal support and approval for the proposal from these agencies. The City Council will hold the public hearing and consider formal authorization to file the application on March 12,1979. A motion was made by Mr. Ward, seconded by Mr. Ortiz and carried unanimously to receive and file the report. . EXECUTIVE SESSION At 2:56 P.M., the meeting was recessed to an Executive Session to discuss possible settlement of the Rapp condemnation suit. At 3:02 P.M., the meeting was called back to order with the same members present. SETTLEMENT FOR ACQUISITION OF HOWARD B. RAPP, JR. PROPERTY A motion was made by Mr. Ward, seconded by Mr. Evans and carried unanimously to approve the settlement for acquisition of Howard B. Rapp, Jr. property located within the 14 acre housing site, Superior Court Case Number 28-79-94, in the amount of $805,000,; and, Howard B. Rapp, Jr. property located within the Heritage Development site, in the amount of $27,700. RECESS At 3:04 P.M., the meeting was recessed to the evening. was reconvened at 11:15 P.M. with all members present. The meeting . -5- . . . . BIRCH PARK EXPANSION/MINTER HOUSE A motion was made by Mr. Ward, seconded by Mr. Garthe and carried by the following roll call vote to authorize Staff to develop an Owners Participation Agreement with Mr. Heath, or any other interested party for the sale of the Minter House. AYES: NOES: ABSENT: Brandt, Bricken, Evans, Garthe, Ortiz, Ward Yamamoto None ADJOURNMENT There being no further business before the Community Redevelopment Agency, the meeting was adjourned at 11:20 P.M. ~ ) 1r~( ~ <)f2fZV1Jj(r- Da ld L. Brandt, Chalrman ~~~ Richard E. Gobllrsch Executive Director