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HomeMy WebLinkAbout07/05/1983 . MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT COMMISSION SANTA ANA. CALIFORNIA JULY 5, 1983 . The Regular Meeting of the Community Redevelopment Commission of the City of Santa Ana was callëd to order by Chairman Newcomb at 3: 35 P.M. in Room 335, 20 Civic Center Plaza, santa Ana, California. There being no Flag present in the room, the Pledge of Allegiance was omitted, after which the roll was called: ~ Victor C. Alleman John Coil Bill Mack Alexander Nalle Robert Newcomb ~ Alberta D. Chr isty Ka thleen Rosenow Others in attendance: . . Thomas Hammill. Ass't. Director of Redevelopment and Real Estate Richard Lay, Assistant City Attorney Nancy Dean. Assistant Clerk of the Council Richard Dominguez, Financial Services Manager Alex Sanchez, Director of Housing Ralph Campbell. Commerc ial Loan Of ficer Edward Henning, Project Area Manager Robyn Simpson. Project Area Manager Cynthia Nelson, Project Area Manager Mellmary McNeely, Secretary Douglas S. IIonig, Developer Terry Martin, Gibraltar Savings ~ It was moved by Commissioner Coil, seconded by Commissioner Nalle and carried unanimously (4:0) that the Minutes of the Regular Meeting held on June 21. 1983 be approved as received. OATH OF OFFICE The Assistant Clerk of the Council administered the oath of Office to Mr. Bill Mack. newly appointed Commissioner to serve Ward '7. Chairman Newcomb welcomed Commissioner Mack on behalf of the Commission and Staff. Ms. Kathleen Rosenow, newly appointed Commissioner to serve Ward '6, was unable to attend and receive the oath of Office due to prior commitments out of town. ELECTION OF OFFICERS . Chairman Newcomb announced that, since the By-Laws of the Commission called for the election of officers at the first meeting in July, he would ask the Assistant Director of Redevelopment, who "as the Acting Secretary for the Commission, to assume the chair for the purpose of electing a new Chairman and Vice Chairman for the Commission. . The Assistant Director of Redevelopment called for nominations for the office of Chairman of the Commission for the ensuing year. Co_isdoner Newcomb nominated Commission- er Nalle to serve as Chairman of the Commission: the 1. EXHIBIT "D" /I-II II 3A . nomination was seconded by Commissioner Coil. Commissioner Mack then moved that the nominations be closed and that a unanimous ballot be cast for Commissioner Nalle to serve as Chairman of the Commission for the ensuing year. The motion carried unanimously (5: 0), and Commissioner Nalle. having been declared Chairman. asswned the chair. . Chairman Nalle then nominated Commissioner Coil to serve as Vice Chairman of the Commission. Commissioner Newcomb seconded the nomination and further moved that the nominations be closed and that a unanimous ballot be cast for Commissioner Coil to serve as Vice Chairman of the Commission for the ensuing year. The latter motion was seconded by Commissioner Mack and carried unanimously (5:0). Commissioner Coil waS then declared to be Vice Chairman of the ColIIDission for the ensuing year. GRIEVANCE FOR RELOCATION ASSISTANCE PAYMENT Chairman Nalle asked the Assistant Director of Redevelopment to make staff' s presentation supporting the recommendation for denial of the appeal of Green's Furniture to receive additional funds for relocation assistance. The Assistant Director following statement: of Redevelopmen t then read the . . "In August 1982. we received a claim for relocation assistance from Mr. Richard L. Riemer representing Green's Furniture in the amount of $237.170.00. A copy of the claim is in your packet. We have responded to Attorney Riemer's request to each of the issues in the claim and reasons for our denial." . "several years ago the Redevelopment Agency began planning for the development of the second Street Mall. This effort resulted from concepts provided by Bissell and August in their 1976 plan for the redevelopment of the Downtown. Beginning in approximately 1976-77, the Agency staff began discussions with Mr. Billy Greenberg regarding the rehabilitation of the Grand Central building which would face the southern half of the mall. These discussions led to the actual drafting of an agreement between the Agency and Billy. Subsequently. we found that the property was actually owned by Barry and Evelyn Greenberg. the paren ts of Billy Greenberg. In 1979. the Agency proceeded to construct the second Street Mall and formulated a Major Commercial Rehabilitation Loan Program with Wells Fargo. In addition, Agency staff proceeded to assist Mr. and Mrs. Greenberg in getting a 312 HUD loan in the amount of $250,000 to add to the Wells Fargo loan of approximately $650,000. The major impediment to the Greenberg's moving ahead with their planned rehabili- tation of the Grand Central building was a long-term lease with their son. Billy, which called for a low rate of return which would not sustain the debt service on the cost of rehabilitation. In order to .ake the monthly payments on the new loans, Billy would have to pay a higher monthly rent than his lease called for or vacate the portion of the Ikand Central building which he occupied so that it could be reoccupied by a tenant who was willing to pay a higher rent. We felt this was a matter between the father and son who we had worked wi th for .everal year. on this project and left it as strictly a f8lllily .atter. In December of 1980. the Greenberg. decided to proceed with the rehabilitation of the building with loan funds provided from Wells Fargo Bank and BUD." . 2. EXHIBIT "D" 3A J~ 17-1~ . "Because Federal funds were available from BUD for a portion of the project, the residential tenants in the twenty-nine (29) apartments upstairs were eligible for relocation benefits. In addition, suff determined that the commercial tenants downstairs may be eligible for certain relocation benefits. During the several years we discussed this rehabilitation project with the Greenbergs, the question of relocation benefits to Billy was explored with him. Agency staff determined that he should receive $4,000.00 for moving expenses on what he was moving out of the Grand Central building into the Green's Furniture building next door. In addition, staff authorized a payment of $2,100.00 for the relocation of a sign on the Broadway side of the building to the First Street side of the building, as well as a payment of $600.00 for the moving and reinstalling of shelving. Mr. Riemer, the attorney for Mr. Greenberg has stated that we did not properly advise Mr. Greenberg of his relocation rights by not supplying him with the proper written information. It is our belief that over the course of our many discussions with Billy, we did provide him with all pertinent information, however, so much time has lapsed that we are unable to document in writing that he received this information. In order to ensure that Billy received the proper relocation assistance, we had our original findings reviewed by the leading relocation consultants in Southern Cal ifornia, Port and Flor, Inc. Billy accepted our offer of $6,700.00 for wha twas pr imar ily a self-move and appeared to be satisfied that he had received proper compensation. Billy acknowledged acceptance to our offer by signing a letter dated February 18, 1981 in which he acknowledged the payment to be his maximum entitlement. Billy also executed all the required BUD forms required to receive such a payment." "We have received no information or documentation to support the Greenberg Assistance Claim. We have always stated that we would be willing to rev iew any documentation to substantiate their claim. We hope that it is not the intention of Mr. Riemer to withhold any documentation from the staff, Commission and/or Agency and later present it to BUD or the courts." . . . "We welcome the opportunity to study any additional information they wish to submit, however, it will be necessary for them to: 1. specify items in detail as to what expense was incurred, when it was incurred, and how it was incurred, 2. explain the items; and provide documentation of the amounts claimed." necessi ty of incurr ing loss on these 3. . "Fact: Billy's decision to move and give up his low lease rate was voluntary. Be moved so that his family could receive a low interest n Agency loan for $650,000 and a 3t BUD loen for $250,000." "Fact: the Agency had to payout of pocket over $50,000 in relocation payments to tenants in the building 80 that the Greenberg family could use the $250,000 3t loan." . 3. EXBIBIT "D" )3 /f -I :!J 3A . . .Facto the Agency spent over $350,000 on the Second Street Mall which substantially increased the Greenberg family' s property value " .Facto the Agency loaned the Greenbergs $154,211 at 0% interest for three years to help them finish their rehabilitation.. .Facto the Agency peid Billy $6,700 for a self-move, sign relocation and shelf installation. '1'his peyment was made based on Billy's own estimate of his cost to move. We did not ask him to further document this estimate. Billy's acceptance is in yOur pecket as Exhibit .A.. Chairman Nalle noted that Mr. William Riemer, attorney for Mr. Greenberg. was not present at the meeting .... I5O8's.., In response to questions from COmmissioner Newcomb, the Assistant Director of Redevelopment stated that Port and Flor reviewed the relocation peyment made to Billy Greenberg in August of 1982 and that Port and Flor was considered to be one of the most outstanding consultants in this field in the State of California. After further discussion, it was moved by COmmissioner Newcomb, seconded by COmmissioner Coil and carried unanimously (500) that the COmmission recommend denial of the appeal of Green' s Furniture to receive additional funds for Relocation Assistance. . . . . 4. EXHIBIT .D. 3A 11 /9-/~