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HomeMy WebLinkAbout06/15/1981 . . . pì MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA JUNE 15, 1981 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order at 1:00 P.M., in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California, after which the meeting was adjourned, due to a lack of a quorum, until 7:30 P.M., in the City Council Chambers. Vice Chairman Luxembourger reconvened the meeting at 7:50 P.M. After the Pledge to the Flag and the Invocation given by Dr. Norman Conner, First Christian Church, roll was called: PRESENT ABSENT Daniel Griset Al Serrato Robert Luxembourger John Acosta Patricia McGuigan J. Ogden Markel Gordon Bricken Others in Attendance: A. J. Wilson, City Manager Rex Swanson, Executive Director Edward J. Cooper, City Attorney David N. Ream, Community Development Director Thomas E. Hammill, Agency Real Estate Officer PUBLIC HEARING FOR THE PROPOSED SALE BY REDEVELOPMENT AGENCY TO HAROLD NEMETZ ENVIRONMENTAL FINDINGS THE COMMUNITY AND RELATED Vice Chairman Luxembourger announced 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 of Santa Ana to Harold Nemetz and environmental findings in relation thereto, bounded on the north by Twentieth Street, on the south by Nineteenth Street, on the east by Main Street, and on the west to a depth of approximately 217 feet west of Main Street. . The Vice Chairman announced that the Agency would now like to hear from those people who desired to address the Agency on this issue. He added that if anyone desired to address the Agency, they should step forward to the podium, give their name and address and limit their comments to five minutes. Vice Chairman Luxembourger requested to hear from those persons in agreement and disagreement with the environmental findings of the proposed sale. There being none, he asked if there were any additional comments from staff, or if the Agency members had any questions. There being no discussion, the Vice Chairman closed the public hearing and entertained a motion regarding the environmental findings. A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-43: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA MAKING ENVIRONMENTAL FINDINGS NECESSARY FOR THE PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HAROLD NEMETZ FOR THE SALE AND DEVELOPMENT OF THAT CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT. . Vice Mayor Luxembourger stated that the Chair would now entertain a motion of the City Council regarding the environmental findings and the proposed sale. A motion was made by Councilman Griset, seconded by Councilman Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-102: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA MAKING ENVIRONMENTAL FINDINGS NECESSARY FOR THE PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HAROLD NEMETZ FOR THE SALE AND DEVELOPMENT OF THAT CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT. A motion was made by Councilman Griset, seconded by Councilman Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-103: 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 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HAROLD NEMETZ 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 DISPOSITION AND DEVELOPMENT AGREEMENT PERTAINING THERETO. . Vice Chairman Luxembourger stated that the Chair would now entertain a motion of the Agency regarding the proposed -2- . . . sale. A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-44: 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 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND HAROLD NEMETZ 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 DISPOSITION AND DEVELOPMENT AGREEMENT PERTAINING THERETO. A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO vote) to adopt the proposed budget and authorized its implementation by the Community Redevelopment Commission. PUBLIC HEARING TO AUTHORIZE CONDEMNATION OF THE PROPERTY (PROPOSED FASHION SQUARE DEVELOPMENT SITE) CLARK Vice Chairman Luxembourger announced that this was the time and place for the public hearing on the issue of the public necessity to acquire by condemnation property known as Assessor Parcel 002-201-09, for redevelopment purposes. Vice Chairman Luxembourger requested that Staff identify the property or issues and give staff recommendation. Mr. Thomas E. Hammill, Agency Real Estate Officer, reported that the property is located at the northeast corner of Arnett and Roe Drive. It has a frontage of approximately 181 feet on Roe Drive with a maximum depth of approximately 66 feet. It is a triangular shaped parcel, zoned R2HDII, and is completely surrounded by property owned by either the Agency or the City. The property contains approximately 6,359 square feet and is improved with a single story residential structure occupied by one tenant. The public interest and necessity require the property for the following reasons: 1. The Redevelopment Agency, at its meeting of April 20,1981, adopted Resolution 81-31 authorizing the execution of a Fifth Amendment to the Exclusive Negotiation Agreement with Federated Department Stores, Inc. 2. The property is necessary for expansion of Fashion Square and National Properties development. the the proposed American -3- 3. The Redevelopment Agency and the City of Santa Ana own all of the surrounding properties. . The least private injury is demonstrated by the fact that the property is not owner occupied and is rented to one tenant who will receive relocation benefits as prescribed by the relocation guidelines. The property is completely surrounded by property owned by either the Agency or the City of Santa Ana. The owner will receive just compensation for the taking of his property. The planned development is necessary for the successful rehabilitation of the Fashion Square Center, as well as the project plans of American National Properties, both of which will provide revitalized commercial uses for the area. The Broadway Overpass project is closely related with both the Fashion Square and American National Properties. This overall development is consistent with the amended Redevelopment Plan, thereby creating greater commercial usage and generate increased shopping, employment, and tax base for the citizens of Santa Ana. Vice Chairman Luxembourger requested to hear from the public in agreement and disagreement with the condemnation of this property. . Mr. Dwane Clark, 408 Prospect, Newport Beach, CA 92663, addressed the Agency stating that the staff report was incorrect. Mr. Clark's comments related to what he felt was a failure on the part of the Agency staff to negotiate in good faith. Mr. Owen T. Witthauer, 12161 Meade Street, Garden Grove, CA, also spoke on this matter. In answer to questions by Ms. McGuigan, Mr. Serrato, and Mr. Luxembourger, the Executive Director and City Attorney reviewed the methodology by which the Agency establishes value and the steps in the condemnation procedure. After further discussion, a motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-49: 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 PROPOSED FASHION SQUARE DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. PUBLIC HEARING TO AUTHORIZE CONDEMNATION PROPERTY (D & B DEVELOPMENT SITE) OF THE PRICE . Vice Chairman Luxembourger announced that this was the time and place for the public hearing on the issue of the public -4- . . . necessity to acquire by condemnation property known as Assessor Parcel 008-055-01, 02 and 03, for redevelopment purposes. The Vice Chairman requested that Staff identify the property or issues and give staff recommendation. Mr. Thomas E. Hammill, Agency Real Estate Officer, reported that the property is located on the east side of North Broadway between Fifth Street and Santa Ana Boulevard. It has a frontage of 250 feet on Broadway with a depth of approximately 125 feet. The property has an area of 31,250 square feet. It is improved with a commercial structure containing approximately 12,500 square feet which includes an 800 square foot apartment or office. There is another small commercial structure containing approximately 95 square feet used as a locksmith shop. There are nine advertising billboards on the site which are owned by the property owner. The public interest and necessity require the property for the following reasons: 1. The Community Redevelopment Commision, at its meeting of July 20, 1980, authorized staff to advertise for proposals for the development site. 2. The Redevelopment Commission, at its meeting of February 10, 1981, recommended that the Agency authorize the execution of an Exclusive Negoti- ation Agreement with D & B Development Company. 3. The Redevelopment Agency, at its meeting of March 16,1981, authorized the execution of an Exclusive Negotiation Agreement with D & B Development Company. 4. The Redevelopment Agency acquired the east one- half of the development site on May 29,1980. The least private injury is demonstrated by the fact that the two businesses will receive relocation benefits pursuant to the relocation guidelines. All ownerships will receive just compensation for the taking of their property or their interest therein. The property is located immediately southerly of the Old Orange County Courthouse. The planning and development of the site is proposed to blend into the historic significance of the Courthouse. The development will provde revitalized commercial uses for the areas which are consistent with the Redevelopment Plan of the Agency. The greater commercial use created by the development will generate increased shopping, employment and tax base for the citizens of Santa Ana. -5- . Vice Chairman Luxembourger requested to hear from the public in agreement and disagreement with the condemnation of this property. There being no comments, the Vice Chairman closed the public hearing and entertained a motion regarding the adoption of Resolution 81-50. A motion was made by Mr. Acosta, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO. vote) to adopt Resolution 81- 50: 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 D & B DEVELOPMENT COMPANY SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. CONSENT CALENDAR ITEM REMOVED Vice Chairman Luxembourger requested that item 3.A. (Major Commercial Rehabilitation - Status Report) be taken off the consent calendar. CONSENT CALENDAR STAFF RECOMMENDATION APPROVED On the approved 6:0 motion of Griset, seconded by Mr. Serrato, the Agency approved the recommendation of Staff on the following consent calendar item: MINUTES . Approved Minutes of Regular Meeting and Joint Meeting with the City Council held on May 18,1981, and Joint Meeting with City Council held on May 26,1981. * * * * * * * * * * CONSENT CALENDAR FINIS * * * * * * * * * MAJOR COMMERCIAL REHABILITATION - STATUS REPORT Mr. David Biggs made a brief presentation on current projects of the Agency's Major Commercial Rehabilitation Loan Program. Mr. Acosta noted that he has observed the Keiser rehab on West Fourth Street from City Hall and inquired as to whether the mechanical equipment on the roof was to be secured. The Community Development Director said that he would have to review the plans for the rehabilitation. In addition, he stated that the Agency's concern for securing of mechanical equipment would be conveyed to the Architectural Review Board for their deliberations on future rehabilitation projects in the downtown area. . A motion was made by Mr. Acosta, seconded by Ms. McGuigan and carried by a vote of 6:0 to receive and file the status report. -6- MAJOR COMMERCIAL REHABILITATION LOAN PROGRAM - OFFICIAL ACTION - LAO, OTIS BUILDING PARTNERSHIP AND GABRIEL, ET AL . A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 6:0 to adopt Resolution 81-42: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING BOND ISSUES FOR THE FUNDING OF PERMANENT LOANS FOR REHABILITATION OF SPECIFIED PROPERTY AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH. AMENDMENT TO DISPOSITION STEPHEN LAWRENCE PHILIPSON AND DEVELOPMENT AGREEMENT WITH A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-45: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN OF THE AGENCY TO EXECUTE AN AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND STEPHEN LAWRENCE PHILIPSON. AMENDMENT TO DISPOSITION AND DEVELOPMENT SANTA ANA CITY EMPLOYEES CREDIT UNION AGREEMENT WITH . A motion was made by Mr. Serrato, seconded by Mr. Acosta and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-46: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN OF THE AGENCY TO EXECUTE AN AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND THE SANTA ANA CITY EMPLOYEES CREDIT UNION. DR. PHILIP MEGDAL DEVELOPMENT PROPOSAL A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-47: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA TO EXECUTE AN EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE AGENCY AND PHILIP MEGDAL. ACQUISITION OF PROPERTY WITHIN THE OXFORD WEST DEVELOPMENT SITE (HARDSHIP CASE/OWENS DRIVE) . A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by the following roll call vote to adopt Resolution 81-48: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE CHAIRMAN OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA TO EXECUTE AN AGREEMENT FOR ACQUISITION OF REAL PROPERTY BETWEEN THE AGENCY AND PATRICIA K. BRUMMETT AND GARY -7- . . . BRUMMETT, AND PARTICIA K. ESTATE OF NINA OLIVE DANIEL. BRUMMETT AS EXECUTRIX FOR THE AYES: Griset, Serrato, Acosta, McGuigan, Luxembourger Markel Br icken NOES: ABSENT: MAJOR COMMERCIAL REHABILITATION PROGRAM - NOTE HOROWITZ BROTHERS 1975 TRUST (RANKIN BUILDING) SALE - A motion was made by Mr. Griset, seconded by Mr. Serrato and carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) to adopt Resolution 81-51: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE SALE OF A $1,000,000 PROMISSORY NOTE TO WELLS FARGO BANK, PURSUANT TO THE MAJOR COMMERCIAL REHABILITATION LOAN PROGRAM. EXECUTIVE SESSION At 11:22 p.m. the Redevelopment Agency adjourned to an executive session to discuss legal matters. The meeting was reconvened at 11:23 p.m. with the same members present. SETTLEMENT OF FAINBARG CONDEMNATION A motion was made by Ms. McGuigan, seconded by Mr. Serrato anc carried by a vote of 5:1 (Mr. Markel casting the "NO" vote) for settlement of the case against Allan Fainbarg, et al in the amount of $275,000.00. ADJOURNMENT There being no further business Redevelopment Agency, the meeting p.m. to July 20, 1981. before the Community was adjourned at 11:24 ~ Executive Director -8-