HomeMy WebLinkAbout06/25/1984
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MINUTES
ADJOURNED REGULAR MEETING
COMMUNITY REDEVELOPMENT AGENCY
SANTA ANA, CALIFORNIA
JUNE 25, 1984
The Adjourned Regular Meeting of the Community Redevelopment
Agency of the City of Santa Ana was called to order by
Chairman Luxembourger at 10:55 P.M. in the City Council
Chambers, 22 Civic Center Plaza, Santa Ana, California.
After the Pledge to the Flag and the invocation given by
Pastor Don Vanderpool of the Christian and Missionary
Alliance, roll was called:
PRESENT
ABSENT
John Acosta
Gorden Bricken
Daniel Griset, Vice Chairman
P. Lee Johnson
Robert Luxembourger, Chairman
patricia McGuigan
Dan Young
Others in attendance:
Robert C. Bobb, City Manager
Rex Swanson, Executive Director
Edward J. Cooper, City Attorney
David N. Ream, Executive Director/Economic Development
Thomas E. Hammill, Assistant Director, Redevelopment
& "'eal Estate
Cynthia Nelson, project Area Manager
Mellmary McNeely, Secretary
CONTINUATION
SITE
PUBLIC
HEARING FOR A-3 DEVELOPMENT
OF
JOINT
It was moved by Mr. Acosta, seconded by Mrs. McGuigan and
carried unanimously (7:0) that the Agency continue the joint
public hearing on the CM Plaza Development proposal until
July 17, 1984.
JOINT PUBLIC HEARING FOR THE PROPOSED SALE BY THE COMMUNITY
REDEVELOPMENT AGENCY TO URBATEC FOR THE A-lO SITE
Chairman Luxembourger called the Joint Meeting of the Santa
Ana Redevelopment Agency and the City Council to order and
stated that the purpose of the Joint Meeting was to consider
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the proposed sale of property known as the A-lO site by the
Community Redevelopment Agency of the City of Santa Ana to
Urbatec. He added that the site was bounded on the north by
Third Street, on the west by Spurgeon Street, on the south
by First Street, and on the east by the Redevelopment
Boundary. He then called upon staff to identify the
property and give staff's recommendation.
The Executive Director/Economic Development called upon the
Assistant Director of Redevelopment and Real Estate to make
the staff presentation. The Assistant Director of
Redevelopment and Real Estate pointed out the site map
present in the Council Chambers and advised that there were
36 parcels in the site which include auto repair and parts
shops, paint shops, single family residences, a 10-unit
apartment house, muffler shop, machine shop, speedometer
shop, upholstery shop, a Salvation Army Center and twelve
vacant properties. He then introduced Ms. Cindy Nelson,
Project Area Manager, and asked her to make a slide
presentation which would indicate the types of uses
presently existing on the A-lO site.
After the slide presentation, the Executive Director/
Economic Development introduced the project architect, Mr.
Randy Jones of Herb Nadel's office, and asked him to review
the proposal for the A-lO site.
Mr. Jones thanked the members of the Agency for the
opportunity to appear before them and expressed the
enthusiasm Urbatec felt for the proposed development of the
A-lO site. He added that, in his opinion, this proposed
development would go a long way toward starting the process
of revitalizing downtown Santa Ana since it would be
bringing a lot of people into the downtown area. He pointed
out that it was difficult to assemble a parcel the size of
the A-lO site which contains 8 acres and will accommodate
approximately 100,000 square feet of retail space. He added
that prospective tenants of a shopping center are very
particular in their requirements and demands for sites and,
if these requirements and demands are not met, they they
will quickly move on to a site which will meet their needs.
Mr. Jones added that the A-lO site met most of the ideal
qualifications for such a center in terms of its size,
street access, loading areas, the long dimension of the site
on a major street and high visibility. He added that, in
addition to a major food market and drug store, there would
be three other pads -- two for fast food establishments and
one which would possibly be occupied by a major savings and
loan. He pointed out that a theme had not as yet been
established for the shopping center, but that it would
probably be drawn from the surrounding neighborhood. Mr.
Jones then made a slide presentation which showed specific
themes used in several other shopping centers.
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Mr. John MacLaurin of Urbatec then spoke on behalf of his
firm and the project. He stated that they are presently
arranging long-term leases with Boy's Market, and Sav-On
Drug and were negotiating with McDonald's and pioneer
Chicken. He added that they were also negotiating with a
major lending institution as occupants of the major pad in
the site. He pointed out that Urbatec had worked very hard
to bring this development to Santa Ana and hoped that their
efforts would not be in vain because of something over which
they had no control.
In response to a query from Chairman Luxembourger, staff
reported that there were no written communications. The
Chairman then asked that all members of the public wishing
to speak in support of the proposed sale of the A-lO site to
step forward to the podium and limit their comments to 5
minutes.
Mr. David Fraunfelder addressed the Agency, stating that the
neighborhood needed this shopping center badly and urged the
Agency to accept the Urbatec proposal for the A-lO site as
presented without any alterations.
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Chairman Luxembourger then asked those persons disagreeing
with the proposed sale to step forward to the podium and to
limit their comments to 5 minutes.
Ms. Nanette Levschel stated that she was present to
introduce those who wished to speak on behalf of Mr. Pulido,
owner of the Ace Muffler Shop. Those speaking against the
sale were:
Dr. John Diamond, Chief of Staff for St. Jude's Hospital,
who stated that he had known the Pulido family for many
years and found their integrity and honesty to be
unquestioned. He added that, in his opinion, their
business, Ace Muffler, was a credit to the community and he
hoped the Agency would find in favor of the Pulido family.
He asked Mr. Pulido to stand and pointed out that, since Mr.
Pulido did not feel that his English was good enough to
address the Agency, he had asked others to speak for him.
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Mr. Joe Pulido, operations manager for Ace Muffler, then
addressed the Agency and pointed out that Ace Muffler was a
successful business and an asset to Santa Ana. He added
that their sales were up 50% and that they showed gross
sales in excess of a quarter of a million dollars. He
stated that, in his opinion, there were alternatives to the
proposal for the site as presented by Urbatec. He then
introduced Mr. Miguel Pulido and asked him to outline these
alternatives.
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Mr. Miguel Pulido called the attention of the members of the
Agency to two renderings in the Council Chambers showing the
present Ace Muffler Building as an integrated part of the A-
10 site. He also passed around a model showing the same
concept. He added that they would be willing to adapt the
Ace Muffler Building to blend with whatever architectural
theme was chosen for the A-IO site. He added that the
pulidos had contacted consultants in the field and had been
told that their business would not necessarily be a
detriment to the development of this site. He stated that
one consultant, Mr. Rick Gaylord, felt that their business
was compatible with the neighborhood. He then introduced
Mr. Luis Pulido.
Mr. Luis Pulido stated that he had made a study of shopping
centers in outlying areas such as Laguna Hills, Diamond Bar
and Fullerton and had found several which had auto repair
shops as tenants with no adverse results. He then made a
slide presentation showing several shopping centers
containing automobile repair shops. He then introduced Mr.
Michael Pulido.
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Mr. Michael Pulido read portions of a letter from another
developer in which they expressed interest in the
development of the A-lO site and stated that they felt they
could integrate the Ace Muffler Building into this
development.
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Mr. Charles McClung, attorney for the Pulido family,
addressed the Agency and stated that he was also speaking
for Mr. Rudy Montejano, an associate of his, who was unable
to attend. He stated that there was a correction to the
site plans and model shown by the pulidos, in that there was
an alleyway which had not been shown and that this would
make a 10' to 60' difference in the plans as shown. Mr.
McClung then reviewed the economics of the proposed
development of the site and stated that, in his opinion, the
inclusion of Ace Muffler would make the development of the
site better both in concept and in economics, since there
would be no acquistion costs for Ace Muffler. Mr. McClung
added that, in his opinion, the Environmental Impact Report
for the development of this area was inadequate in that it
did not envision a development of the magnitude proposed by
Urbatec. He added that he felt there were other legal
problems involved in this development. He stated further
that he had brought a petition, containing 1,000 signatures,
which supported the position taken by the Pulido family.
Mr. Hector Godinez addressed the Agency and stated that he
had been contacted by the Pulido family and asked to help
them in this presentation. He added that he was impressed
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with what they had told him and, as a former Redevelopment
Commissioner, he felt their case had a great deal of merit.
He pointed out that Mr. Pulido had stated that he was
willing to do whatever was necessary to adapt his business
so that it could be successfully integrated into this
proposed shopping center. Mr. Godinez stated that he hoped
that the Agency would give favorable consideration to the
proposals made by the Pulido family.
Mr. Hal Butts addressed the Commission and read a prepared
statement in support of the Pulido family's position.
Ms. Sharon Brown, Mr. Bob Lopez and Mr. Allen Woo all spoke
in support of the Pulido family's position.
In rebuttal, Mr. John MacLaurin of Urbatec stated that his
company very much wanted the support of the community. He
added that they had given consideration to the incorporation
of Ace Muffler into their proposal for the A-lO site and
that, if it could have been done, they would have done it.
He stated further that the Urbatec staff felt that the Ace
Muffler building was incompatible to the proposed shopping
center. He pointed out that Urbatec had been invited by the
Agency to make this proposal and that they had worked very
hard to present a viable one. He added that many firms such
as Gemco, Ralph's and several other prominent super-markets
had turned the site down because they did not like the
location and the demographics. He again pointed out that
Urbatec was most enthusiastic about their proposal and
sincerely sought the support of the community.
The City Manager stated that the Agency had staff's
recommendation and that it was the only one staff was
prepared to offer. He added that he realized this type of
decision was not easy to make. He pointed out that,
unfortunately, in the course of discussions, emotions could
run extemely high and issues could be broadened beyond
business decisions into ethnic and/or racial types of
decisions. He stated that he did not think decisions should
be made emotionally. He added that his only concern was
that, if this proposal was not approved, prospective
developers in the future might be reluctant to deal with the
Agency. The City Manager pointed out that the Agency had
issued an exclusive right to negotiate with Urbatec and that
his recommendation was that the Agency continue in its
negotiations with them. He added that, if this was not
done, it would, in his opinion, have a negative long-range
impact on other potential developments in the City of Santa
Ana.
In response to a question from Mrs. McGuigan, Mr. MacLaurin
stated that Urbatec's architects had gone over the
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information offered by Ace Muffler and had told them that,
in their opinion, the Ace Muffler Building would not fit
into the development.
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Mr. Bricken stated that the inference had been that if Ace
Muffler could not operate at this location, they would go
out of business. He then asked staff to explain the process
of relocating a business to a new site.
The Executive Director stated that the Agency would acquire
a new site for Ace Muffler and had suggested the possibility
that a site 700' east of their present location might be
suitable. He added that the City owned this property and
would try in every way to protect the rights of Ace Muffler.
In response to a question from Mr. Bricken, the Executive
Director/Economic Development stated that Ace Muffler was
made aware of this site in communications with their
attorney. Mr. Bricken said that he had been a party to
discussions when this subject had come up and that he wanted
it as a part of the record that this information had been
available to the pulidos for quite some time.
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In response to a question from Mr. Acosta, staff affirmed
that the location 700' east of Ace Muffler's present
location was adjacent to another muffler shop.
Chairman Luxembourger declared the Public Hearing closed.
In response to a question from Mrs. McGuigan, the Executive
Director/Economic Development stated that it was staff's
policy to give the persons being relocated the opportunity
to look for alternative properties and that, in his opinion,
this was the better way since site selection was an
individual matter.
In response to a question from Chairman Luxembourger, Mr.
MacLaurin of Urbatec stated that his company would not be
interested in pursuing the development of the site if Ace
Muffler was to be a participant.
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In response to a question from Mr. Acosta, Mr. MacLaurin
stated that there might be a site elsewhere where the
incorporation of Ace Muffler into a shopping center might be
accomplished. He said it would be possible if the site were
large enough, and the muffler shop could be sheltered but
that the A-lO site did not meet this criteria. In response
to a further question from Mr. Acosta, Mr. MacLaurin stated
that Urbatec had not, to date, constructed a shopping
center.
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Mr. Young stated that he had listened carefully to all that
had been said and that this was a very difficult decision to
make. He added that because Urbatec had, in his opinion,
done everything the Agency had asked them to do in an
expedient manner, it would be unethical not to support the
recommendation and continue negotiations with Urbatec.
Mr. Griset stated that he would support the recommendation
because he believed that everyone could win in this
particular situation. He pointed out that for a very long
time the Planning Commission and the City Council had been
hearing, as a reason for not building additional residences
in Santa Ana, that there was no place for the people to shop
and that this was a glaring deficiency. He added that he
felt this was the Agency's opportunity to move ahead with
this shopping center concept that was considered to be so
important. He pointed out that he was sure that the
relocation benefits available would allow Ace Muffler to
continue in business in the downtown area with little or no
inconvenience to its clientele. He added that he felt the
spirit shown by the Pulido family would certainly be able to
overcome a change in address.
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Mr. Acosta stated that he would find it difficult to support
the recommendation because the developer would not
compromise. He added that he did not feel that Urbatec had
sufficient experience in the building of shopping centers.
Mr. Luxembourger stated that he was very disappointed that a
middle-of-the-road decision could not be reached. He added
that he did not believe the problems presented were
insurmountable and that a compromise could be reached. He
stated that for these reasons he could not support the
recommendation.
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Mr. Bricken stated that, if the Agency was to pursue the
revitalization of the downtown area, it would most certainly
necessitate the relocation of individuals. He added that he
felt the Agency had made a strong effort to be fair but that
in the end must honor its commitment to Urbatec. He stated
that, in his opinion, any question as to Urbatec's ability
and background had not been raised when they were chosen as
developers and should not now be an issue. He added that he
was sure that Ace Muffler could be relocated and remain in
business and that everyone could remain friends.
There being no further discussion, it was moved by Mr.
Johnson, seconded by Mr. Griset and carried by the following
roll call vote that the Agency recommend:
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Adopt Resolution 84-6: A RESOLUTION OF THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA APPROVING AN AGREEMENT BETWEEN THE
AGENCY AND URBATEC.
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basic
concept
Approve the
development.
drawings
for
the
AYES:
NOES:
ABSENT:
Bricken, Griset, Johnson and Young
Acosta, Luxembourger and McGuigan
None
A motion was then made by Councilmember Johnson, seconded by
Councilmember Griset and carried by the following roll call
vote that the Council adopt: 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 URBATEC FOR THE SALE OF CERTAIN REAL PROPERTY IN THE
SANTA ANA REDEVELOPMENT PROJECT AND APPROVING THE SALE OF
SAID REAL PROPERTY UPON THE TERMS AND CONDITIONS CONTAINED
IN THAT AGREEMENT.
AYES:
NOES:
ABSENT:
Bricken, Griset, Johnson and Young
Acosta, Luxembourger and McGuigan
None
Chairman Luxembourger adjourned the meeting to an Executive
Session at 12:35 P.M. The Agency reconvened at 1:15 A.M.
with all members formerly present in attendance.
DOWNTOWN DEVELOPMENT STRATEGY PLAN
~t was moved by Mr. Griset, seconded by Mr. Young and
carried unanimously (7:0) that the Agency approve the
proposed Downtown Development Strategy Plan and direct staff
to market the designated new development and commercial
rehabilitation sites.
ULI/UIG DOWNTOWN DEVELOPMENT STUDY
It was moved by Mr. Young, seconded by Mr. Johnson and
carried unanimously (7:0) that the Agency:
1.
authorize staff to submit an application to the
Urban Land Institute for their Panel Advisory
Service; and
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authorize staff to develop an agreement with the
Urban Innovations Group to conduct a design study
charette for the downtown area.
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DEVELOPER SELECTION FOR
FRENCH AND FIFTH STREET)
THE A-5 SITE (NORTHWEST CORNER OF
It was moved by Mr. Young, seconded by Mr. Johnson and
carried unanimously (7:0) that the Agency grant a 90-day
exclusive right to negotiate to Urban Pacific Development
Corporation for development of the A-5 site.
AMENDMENT TO RESOLUTION PERTAINING TO RESIDENTIAL MORTGAGE
REVENUE BONDS (SB-99) ISSUED BY THE AGENCY IN 1980.
It was moved by /1r. Young, seconded by Mr. Johnson and
carried unanimously (7:0) that the Agency adopt Resolution
84-12: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA TO AMEND THE DEFINITIONS OF "BOND
YEAR" AND "ASSET COVERAGE TEST" IN RESOLUTION NO. 80-75,
PERTAINING TO RESIDENTIAL MORTGAGE REVENUE BONDS ISSUED BY
THE AGENCY.
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ADJOURNMENT
The meeting
1:19 A.M.
of
the
Redevelopment Agency was adjourned at
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Chairman
Executive Director
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