HomeMy WebLinkAbout06/20/1983
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MINUTES
ADJOURNED REGULAR MEETING
COMMUNITY REDEVELOPMENT AGENCY
SANTA ANA, CALIFORNIA
JUNE 20,1983
Although the Adjourned Regular Meeting of the Community
Redevelopment Agency of the City of Santa Ana was noticed
for June 20,1983, due to the lateness of the City Council
meeting, the Community Redevelopment Agency meeting was
called to order by Chairman Luxembourger at 12:15 A.M. on
June 21, 1983 in the City Council Chambers, 22 Civic Center
Plaza, Santa Ana, California. After the Pledge to the Flag
and the Invocation given by Vice Chairman Griset, roll was
called.
PRESENT
ABSENT
John Acosta
Gordon Bricken
Daniel Griset
P. Lee Johnson
Patricia McGuigan
Robert Luxembourger
Dan Young
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, Assistant Director Redevelopment
& Real Estate
Diann Taylor, Secretary
PUBLIC HEARING TO ADOPT RESOLUTION DIRECTING CONDEMNATION OF
PROPERTY WITHIN THE A-I (BIRCHPARK ASSOCIATES) DEVELOPMENT
SITE (NORTH ONE-HALF OF SECOND STREET BETWEEN OLIVE AND
FLOWER STREETS)
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 described as
the north one-half of Second Street between Olive and Flower
Streets for redevelopment purposes.
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Chairman Luxembourger requested that Staff identify the
property and the project and comment on the factors and
evidence necessitating the condemnation action. Chairman
Luxembourger also requested that staff set forth why the
public interest and necessity require the project; why the
project is planned or located in the manner that will be
most compatible with greatest public good and the least
private injury; why" the property sought to be acquired is
necessary for the project; and that the offer required by
Section 7267.2 of the Government Code has been made to the
owners of record.
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Mr. Thomas E. Hammill, Assistant Director Redevelopment and
Real Estate, reported that the property sought to be
acquired by the Agency is the reversionary interest held by
the Santa Ana Unified School District in the underlying fee
of the north one-half of Second Street between Flower and
Olive Streets, Santa Ana, California. The property is a
rectangular shaped parcel measuring approximately 25' X
280', more or less, containing 7,000 square feet. The
property is improved with an asphalt street, concrete curb,
gutter and sidewalk. The property is shown as Second Street
on a Map of the Ross Addition to Santa Ana, recorded March
13, 1878 and on a Corrected Map of Blocks, L, M, N, a and P
of the Ross Addition to Santa Ana recorded January 13,1902.
On February 3,1903, the Santa Ana Unified School District,
formerly the Board of Education of the City of Santa Ana,
acquired said Block M being the property adjoining and lying
northerly of Second Street. Included within the property
acquired by the School District was the underlying fee
interest in the north one-half of Second Street which the
Agency is now seeking to acquire.
The public interest and necessity require the project for
the following reasons:
1.
The Agency adopted a Disposition and Development
Agreement with Birchpark Associates on March 15,
1983, for the construction of 199 units of senior
citizen Section 8 apartments. The property which
the Agency is seeking to acquire is included
within the project boundaries contained in the
Agreement with Birchpark Associates for redevelop-
ment.
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2.
Previous testimony and documents provided to the
Agency has demonstrated a clear need for senior
citizen housing in Santa Ana.
3.
The redevelopment of property within the Redevel-
opment Project Area serves as an inducement for
further redevelopment of surrounding areas.
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The property to be acquired is necessary for the project
because it is required to conform to the Disposition and
Development Agreement with Birchpark Associates previously
adopted by the Agency.
The project is planned and located in the manner that will
be most compatible with the greatest public good and the
least private injury as a result of hearings previously held
by the Redevelopment Commission, the Planning Commission,
the City Council and the Redevelopment Agency. The project
will provide senior citizen residential housing for the area
and will represent a redevelopment of the property; thereby,
generating an increase in employment, additional residential
units and tax base for the citizens of Santa Ana.
The owners will receive just compensation for the taking of
their property.
Offers to purchase as required by Section 7267.2 of the
Government Code were made to the owners of record on April
19, 1983 and May 25, 1983.
The entire block adjoining and northerly of the property,
which the Agency is seeking to acquire, is a former school
site and is presently leased to the City of Santa Ana by the
School District for a term of twenty-five (25) years
commencing October 4, 1971. This lease also provides the
City an option to purchase the leased site during the lease
term at fair value. This demonstrates that the School
District has no plan to make any public use of the property
in the future. The City is presently using the property for
park purposes as Flower Park. As the owner of the adjoining
property, the School District possesses a reversionary fee
interest in the property sought to be acquired.
It is Staff's position that the School District has not
devoted its reversionary interest in the property to a
public use. However, should the School District later
contend that it is devoting its reversionary interest in the
property to a public use, then it is Staff's position that
the public use for which the property is sought to be taken
is a more necessary use than the public use to which the
property is presently being appropriated by the School
District. This is clearly demonstrated by the fact that
when, after the project is completed, the property to be
acquired by the Agency will become an integral part of the
Birchpark Associates Development. The acquired property
will be utilized for parking and landscaping for the senior
citizen residential housing project for which there is a
demonstrated need in Santa Ana.
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At this time, the Assistant Director Redevelopment & Real
Estate introduced Mr. Edward J. Cooper, City Attorney, to
address the legal issues involved. The City Attorney then
explained the existing laws with regard to eminent domain
proceedings.
Chairman Luxembourger announced that the Agency would now
like to hear from those people who desire 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.
Mr. James A. Richards, Board Member of the Santa Ana Unified
School District, 1405 French Street, Santa Ana, California
addressed the Agency stating that the School Board had
received legal advise that the City is not in a legal
position to take the action proposed without the majority
vote of the School District Board. That although the School
Board does not feel that the public interest is going to be
served by a legal confrontation, they have chosen to rely on
their legal advise and continue in opposition of the
Agency's request.
Mary Pryer, also a member of the School Board, stated that
an appraisal for the property in question had never been
presented and that the Board feels that the amount being
offered does not take into account the impact on the
adjoining property. She also stated that she would like to
see the matter continued until a later date so all aspects
can be considered.
Chairman Luxembourger invited Staff to address the comments
made by the two School Board members.
The City Manager stated that the City had the property
appraised and offered the School District the full amount of
the approved appraisal in the amount of $1,000.00. The time
frame of the commitment with Birchpark Associates
necessitates immediate acquisition of the property.
Chairman Luxembourger requested the City Attorney to comment
on the issues presented. The City Attorney advised the
Agency members that the offer was based on an appraisal
which was checked and confirmed by a second appraiser who
determined the appraisal to be a fair offer. The second
issue is whether or not the Agency has the power to take
possession of the property. Due to the fact that the
property is not being used by the School District for school
purposes, the City has a viable interest and is prepared to
go to court to take possession of the property.
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In response to a question raised by Chairman Luxembourger,
the City Attorney stated that ordinarily the Agency does not
present the appraisal to the owners of record. However, the
City is required to have an appraisal prepared and offer the
full value of the appraisal amount.
Chairman Luxembourger asked
they had any questions of
commented.
the members of the Agency if
Staff or of those who had
Mr. Bricken stated that he felt that the Agency should delay
action for two weeks to allow Staff the time to get together
with the School Board to try to work out existing problems
to determine if it is possible to proceed on a voluntary
basis.
Vice Chairman Griset stated that the City's contractual
agreement should be honored and if it is necessary to file
legal action to accomplish the goals within the alloted time
frame it should be approved.
Mrs. McGuigan stated that although
resolution, she hopes that it can
litigation.
she will support the
be resolved without
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Chairman Luxembourger
now closed.
advised
that the public hearing was
A motion was made by Vice Chairman Griset, seconded by Mr.
Johnson and carried by the following roll call vote to adopt
Resolution 83-21: A RESOLUTION OF THE COMMUNITY REDEVEL-
OPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND
DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR
REDEVELOPMENT PURPOSES IN THE BIRCHPARK ASSOCIATES DEVELOP-
MENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND
DECLARING THE PUBLIC NECESSITY THEREFOR.
AYES:
NOES:
ABSENT:
Griset, Johnson, Luxembourger, McGuigan, Young
Acosta, Bricken
None
PUBLIC HEARING ON PROPOSED LEASE AGREEMENT FOR SANTA ANA -
ORANGE COUNTY TRANSPORTATION CENTER
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Chairman Luxembourger announced that this was the time and
place for the public hearing of the Redevelopment Agency to
receive public comment on the question of whether the
Community Redevelopment Agency of the City of Santa Ana
should enter into two lease agreements with the City of
Santa Ana for use of the Transportation Center facility, to
be located at Santa Ana Boulevard and Santiago Street in the
City.
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Chairman Luxembourger requested that staff identify the
project and provide further information on the purpose of
the hearing.
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Mr. David N. Ream, Community Development Director, stated
that the request is a necessary companion action for the
delivery of funds for the Santa Ana - Orange County
Transportation Center.
Chairman Luxembourger announced that the Agency would now
like to hear from those people who desire 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.
As there were no requests from the public, Chairman
Luxembourger asked if there were any further comments from
the Agency staff.
Staff declined further comment and Chairman Luxembourger
announced that the public hearing was now closed. At this
time he invited Agency members to ask any questions that
they may have of Staff.
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There being none, a motion was made by Mr. Bricken, seconded
by Mr. Acosta and carried by the following roll call vote to
approve the Lease Agreements dated June 1, 1983, between the
Redevelopment Agency and the City of Santa Ana for the
Transportation Center and authorize the execution of the
necessary documents.
AYES:
Acosta, Bricken, Griset, Johnson,
Luxembourger, McGuigan, Young
None
None
NOES:
ABSENT:
CONSENT CALENDAR ITEMS DISSENTING AND ABSTAINED VOTES
Mrs. McGuigan voted NO on item 5.A. (Lease Agreement for
property located at 300 South Main Street)¡ Mr. Young
abstained from item 5.B. (Extension of Exclusive Right to
Negotiate - American Hospital Supply Corporation project-
southwest corner of Willowick Golf Course).
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CONSENT CALENDAR STAFF RECOMMENDATIONS APPROVED
On the unanimously approved 7:0 motion of Mr. Bricken,
seconded by Mr. Acosta, the Agency approved the
recommendations of Staff on the following consent calendar
items:
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MINUTES
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Approved the Minutes of the Adjourned Regular
Meeting/Joint Meeting with City Council held on May 16,
1983; Regular Meeting held on May 17, 1983; and
Adjourned Regular Meeting held on June 6, 1983.
1983 TAX ALLOCATION REFUNDING BOND ISSUE
Authorized the return of the good faith bid check
submitted by Blyth Eastman, Paine Webber, Inc. for the
1983 tax allocation refunding bonds.
LEASE AGREEMENT FOR PROPERTY LOCATED AT 300 SOUTH
MAIN STREET
Authorized the Chairman to execute
lease with option to purchase the real
at 300 South Main Street from Silas
for a lease term of ten (10) years
month. (Mrs. McGuigan voted NO.)
an agreement to
property located
and Marie Chaney
at $1,925.00 per
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EXTENSION OF EXCLUSIVE RIGHT TO NEGOTIATE-
AMERICAN HOSPITAL SUPPLY CORPORATION PROJECT
(SOUTHWEST CORNER OF WILLOWICK GOLF COURSE)
Granted American Hospital Supply Corporation a three-
month extension to their exclusive right to negotiate
for the development of the southwest portion of
Willowick Golf Course. (Mr. Young abstained on this
item. )
EXTENSION OF EXCLUSIVE RIGHT TO NEGOTIATE FOR THE
A-3 SITE (OLD COURTHOUSE PLAZA BLOCK)
Granted a six month extension to the exclusive right to
negotiate with C. M. Properties, Inc. for development
of the A-3 site.
* * * * * * * * * *, CONSENT CALENDAR FINIS * * * * * * * * *
WRITTEN NOTIFICATION OF DENIAL OF CLAIM OF KATIE'S CHILDRENS
BOUTIQUE
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A motion was made by Mr. Acosta, seconded by Vice Chairman
Griset and carried unanimously to adopt Resolution 83-22: A
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY
OF SANTA ANA DENYING THE CLAIM OF "KATIE'S CHILDRENS
BOUTIQUE" FOR RELOCATION ASSISTANCE PAYMENTS.
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ADJOURNMENT
There being no further business
Redevelopment Agency, the meeting
A.M., to July 19,1983 at 5:30 P.M.
before the Community
was adjourned at 1:00
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Re. Swan ~~n
Executive Director
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Robert Luxembourger
Chairman
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