HomeMy WebLinkAbout09/24/1985
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MINUTES
REGULAR JOINT MEETING
DOWNTOWN DEVELOPMENT COMMISSION/COMMUNITY REDEVELOPMENT AGENCY
COUNCIL CHAMBERS
20 CIVIC CENTER PLAZA
SANTA ANA, CALIFORNIA
SEPTEMBER 24, 1985
The Regular Joint Meeting of the Downtown Development
Commission/Community Redevelopment Agency was called to order at 7:05 PM
in the Council Chambers at 20 Civic Center Plaza, Santa Ana, California.
Clerk of the Council Jan Guy conducted roll call as follows:
PRESENT
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John Acosta
Scott Morgan
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Daniel Griset, Chairman
Wil son B. Hart
P. Lee Johnson, Vice Chairman
Robert W. Luxembourger
Patricia McGuigan
Daniel H. Young
Others in attendance:
Robert C. Bobb, City Manager
Jan Perkins, Deputy City Manager/Operations
Rex Swanson, Deputy City Manager/Development
Edward J. Cooper, City Attorney
Jan Guy, Clerk of the Council
David N. Ream, Executive Director/Economic Development
Samuel S. Johnson, Executive Director/Water Utilities
Roger Kooi, Downtown Development Commission Director
Cindy Nelson, Redevelopment Officer
Robert Hoffman. Real Estate Manager
Richard Dominguez, Agency Operations and Finance Manager
Gary Craig. Downtown Development Commission Admin. Asst.
Janet Grane-Evans, Downtown Development Commission Secretary
EXECUTIVE SESSION
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At 7:10 P.M.. the Legal Counsel requested that the Redevelopment Agency
recess to closed session to confer with its attor,ney re9.ariling pending
litigation pursuant to Government Code Section 54956.9 (B) (1). The
Agency reconvened at 7:55 P.M. with the same members present.
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MINUTES
It was moved by Commissioner McGuigan, seconded by Commissioner
Luxembourger, and carried unanimously (6:0) to approve the July 23,1985
minutes of the Regular Joint Meeting.
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PUBLIC HEARING
Chairman Griset announced that it was the time and place for the Public
Hearing on the issue of the public necessity to acquire by condemnation
properties identified by Assessor Parcel Numbers as Book 398, Page and
8lock 481. Parcels 22 and 23; as Book 398. Page and 8lock 507. Parcels
1. 2 and 3; as Book 398. Page and Block 508. Parcels 1 through 5.7. 9.
10 and 11; as Book 398. Page and Block 515. Parcels 3.5 and 7; and as
Book 398. Page and 8lock 491. Parcels 2 and 3 for redevelopment
purposes. Mr. Cooper requested that the Resol uti ons of Necessi ty be
amended as follows:
Resolution
Number Term To Be Replaced Revised Designation
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85-29 DOWNTOWN PROJECT AREA INTERCITY COMMUTER
STATION PROJECT AREA
85-30 INTERCITY PROJECT AREA DOWNTOWN & INTERCITY
COMMUTER STATION
. PROJECT AREA
85-31 INTERCITY PROJECT AREA DOWNTOWN PROJECT AREA
85-32 INTERCITY PROJECT AREA DOWNTOWN PROJECT AREA
85-33 INTERCITY PROJECT AREA DOWNTOWN PROJECT AREA
Robert Hoffman. Real Estate Manager. presented a slide show and staff
report. Mr. Hoffman began by identifying the properties referred to in
each resolution.
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Resolution 85-29 refers to two small buildings, an office and garage
located at 511 East Third Street on a 22.500 square foot parcel
currently occupied by Navarro's Auto. and automobile repair and used car
sales operation. and owned by Larry G. Gaines and Glenna Havercroft.
Resolution 85-30 concerns a two and one quarter acre site at the
southeast corner of Fourth and French Streets. which is owned by the
Salvation Army and which is presently used for office and assembly
buildings. kitchen facilities. and a thrift store totaling approximately
75.000 square feet.
Resolution 85-31 involves a one and three quarter ,acre site at the
southeast corner of Third and French Streets which is owned by the
Salvation Army and which is used primarily for 30 to 50 year old
warehouse or garage type structures and one second story residence
totaling 21,000 square feet of improvements.
Resolution 85-32 refers to a vacant parcel of 3.700 square feet located
at 116 North French Street which is owned by Alfred and Carmen Martinez
and which is currently used for automobile storage.
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Resolution 85-33 involves a 10,000 square foot parcel at 321 East First
Street which is owned by Al Martinez. Inc. and which is improved with a
3,000 square foot garage building and trailer and which is used for
automobile repair activities.
Resolution 85-34 concerns a parcel of approximately 14,000 square feet
at 506 and 510 East Second Street which is owned by Charles, Estelle,
and Dean Berto and which is improved with a 1.650 square foot building.
Mr. Hoffman conti nued by stati ng that:
All of the properties are commercially zoned.
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The Redevelopment Agency has entered into Di sposi ti on and
Development Agreements' for both the A-9 Site. where the properties
covered by Resolutions 29 and 30 are situated. with Urban Pacific
Development Corporation. on July 23. 1985. and for the A-10 Site.
with Urbatec. on June 25. 1984. The Agency is contractually
obligated to assemble both sites for conveyance to these
developers.
The A-9 development will be comprised of 194 high quality
residential apartment units, with condominium conversion possible.
to compliment the existing and new commercial development in the
Downtown. The project is a part of the City's and Agency's efforts
to foster a range of mixed uses in the Downtown. and to provide
vitality to business in the area on evenings and weekends.
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The A-10 development will be a 100;000 square foot neighborhood
shoppi ng center to provi de conveni ent. qual i ty shoppi ng for the
population in and around the Downtown. We are particularly
concerned with providing accessible shopping to the many elderly
persons occupying the hundr.eds of units of senior housing which
have been constructed by the Redevelopment Agency.
The projects are planned and located to be most compatible with the
greatest public good and least private injury. Seventy five
percent of the A-9 Site and one quarter of the A-10 Site are in the
process of being vacated by the Salvation Army in its move to
Anaheim. Most of the remainder of the A-10 Site is comprised of
substandard buildings. many with seismic deficiences. The majority
of the structures are over 50 years old. with no significant
historical merit. All displaced businesses and the several
residential displacees are being relocated pursuant to Federal and
State relocation guidelines with the assistance of Agency staff.
All of the properties are necessary to ffiâintain the viability and
efficiency of the development sites. Offers of just compensation
have been extended to all owners of record.
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There were no wri tten communi ca ti ons, and Chairman Gr,iset opened the
Pub 11 c Heari ng to those in the audi ence wi shi ng to address the Agency.
Mr. Robert F. Waldron, representing Al Martinez, of 321 East First
Street stated that his client does not want to sell the property and
that Mr. Martinez has been at the location for 25 years. Mr. Waldron
stated that his client has received an offer, but that they protest the
proceedings on the issues of whether the public interest and necessity
require the project; whether, the project is planned or located in the
manner that will be most compatible with the greatest public good and
the least private injury; and whether the property to be acquired is
necessary for the project. Mr. Waldron referred to the then unresolved
Ace Muffler' aspect of the development, and requested a continuance of
sixty days to explore alternatives with Agency staff. Mr. Waldron
summarized by proclaiming that he and his client will make every effort
to stop the acquisition of the property. Mr. Young asked if Mr.
Martinez owns a similar operation at Seventeenth and Fairview in Garden
Grove to which Mr. Waldron replied affirmatively.
Following Mr. Waldron's comments. and havfng no additional individuals
present wishing to comment, the Public Hearing was declared closed.
It was moved by Vice Chairman Johnson, seconded by Mr. Luxembourger, and
carried unanimously (6:0) to adopt Resolution 85-29: A RESOLUTION OF
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING
AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 511
EAST THIRD STREET IN THE CITY OF SANTA ANA FOR REDEVELOPMENT PURPOSES,
AND DECLARING THE PUBLIC NECESSITY THEREFOR.
It was moved by Mr. Young, seconded by Vice Chair,man Johnson. and
carried unanimously (6:0) to adopt Resolution 85-30: A RESOLUTION OF
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND
AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY
LOCATED AT 410. 420. 422. 426. and 430 EAST FOURTH STREET. IN THE CITY
OF SANTA ANA FOR REDEVELOPMENT PURPOSES, AND DECLARING THE PUBLIC
NECESSITY, THEREFOR.
It was moved by Mr. Luxembourger, seconded by Mr. Young, and carried
unanimously (6:0) to adopt Resolution 85-31: A RESOLUTION OF THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND
DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 207 NORTH
FRENCH STREET. IN THE CITY OF SANTA ANA FOR REDEVELOPMENT PURPOSES. AND
DECLARING THE PUBLIC NECESSITY THEREFOR.
It was moved by Mr. Luxembour,ger. seconded by Mr. Young. and carried
unanimously (6:0) to adopt Resolution 85-32: A RESOLUTION OF THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND
DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 116 NORTH
FRENCH STREET. IN THE CITY OF SANTA ANA FOR REDEVELOPMENT PURPOSES. AND
DECLARING THE PUBLIC NECESSITY THEREFOR.
It was moved by Vice Chairman Johnson, seconded by Mr. Young. and
carried unanimously (6:0) to adopt Resolution 85-33: A RESOLUTION OF
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING
AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 321
EAST FIRST STREET. IN THE CITY OF SANTA ANA FOR REDEVELOPMENT PURPOSES.
AND DECLARING THE PUBLIC NECESSITY THEREFOR.
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It was moved by Mr. Luxembourger, seconded by Ms. McGuigan, and carried
unanimously (6:0) to adopt Resolution 85-34: A RESOLUTION OF THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND
DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 506 AND
510 EAST SECOND STREET, IN THE CITY OF SANTA ANA FOR REDEVELOPMENT
PURPOSES. AND DECLARING THE PUBLIC NECESSITY THEREFOR. '
SALES AGREEMENT FOR SALE OF CITY PROPERTY TO THE COMMUNITY REDEVELOPMENT
AGENCY AND PARTICIPATION AGREEMENT FOR DEVELOPMENT OF SAID PROPERTY
LOCATED AT FIFTH AND MORTIMER
Vice Chairman Johnson inquired about low income housing in the area, and
Rex Swanson, Deputy City Manager/Development, responded that twenty
percent of the units will be available at a monthly rental rate ranging
from $450 to $675. It was moved by Mr.. Young, seconded by Mr.
Luxembourger, and carried unanimously (6:0) to adopt Resolution 85-42:
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA APPROVING A PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY
AND MORTIMER 5TREET PARTNERS; and to approve the conceptual development
plans proposed by Mortimer Street Partners for the development. It was
further moved by Council member Young, seconded by Councilmerroer
Luxembourger, and carried unanimously (6:0) that the City Council
approve an agreement between the Conmunity Redevelopment Agency and
Mortimer Street Partners and authorize execution of the agreement by the
Mayor and the Clerk of the Council for the sale of real property on the
northwest corner of Mortimer and Fifth StreetS.
AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT FOR A-13 SITE
It was moved by Mr. Hart, seconded by Mr. Young, and carried unanimously
(6:0) that the Agency amend Section 204 of the Disposition and
Development Agreement with Lowy Development Corporation to extend the
deadline for submission of the Letter of Credit to January 24, 1986.
EXTENSION OF EXCLUSIVE RIGHT TO NEGOTIATE WITH URBAN VENTURES/PACIFIC
CORPORATION AND JAY MEEHAN/HERITAGE ORANGE COUNTY FOR A-12, A-II and 302
CAFE DEVELOPMENTS
It was moved by Mr. Young, seconded by Ms. McGuigan, and carried
unanimously (6:0) to grant 90-day extensions to the Exclusive Rights to
Negotiate for development of the proposed A-12, A-ll and 302 Cafe
projects.
RESOLUTIONS AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO SELL BOND
David N. Ream, Executive Director/Economic Development. stated that the
Agency proposes to market the bonds, totalling approximately 96 million
dollars, in or.der to accomplish a range of development projects. Ms.
McGuigan sought clarification that this agenda item included four
separate bond issues, and Mr. Ream answered affirmatively. In response
to a query from Mr. Luxembourger regarding the 108 Loan, Mr. Ream stated
that it could be paid off now from bond proceeds at a rate of 6 to 71 or
the payments could continue at a 121 rate. Mr. Ream explained that the
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bond proceeds would be used for anticipated expenses such as purchasing
the Corday Hotel and Mercado Building in conjunction with the Fiesta
Ma~ketplace development, and for a variety of public works improvements.
Following further general discussion of the issue, it moved by Mr..
Young, seconded by Mr. Luxembourger, and ca~ried (5:1) with Ms. McGuigan
voting "no", that the Agency adopt:
1. Resolution 85-38: A RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY
REDEVELOPMENT AGENCY PROVIDING FOR THE SALE OF TAX ALLOCATION BONDS
IN THE APPROXIMATE PRINCIPAL AMOUNT OF SEVENTY MILLION DOLLARS
($70,000,000) FOR THE SANTA ANA COMMUNITY REDEVELOPMENT PROJECT AREA,
APPROVING THE FORM OF NOTICE OF INTENTION TO SELL SAID BONDS AND
DIRECTING THE PUBLICATION THEREOF.
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2. Resolution 85-39: A RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY
REDEVELOPMENT AGENCY PROVIDING FOR THE SALE OF TAX ALLOCATION BONDS
IN THE APPROXIMATE PRINCIPAL AMOUNT OF EIGHT MILLION DOLLARS
($8,000,000) FOR THE INTERCITY COMMUTER STATION REDEVELOPMENT PROJECT
AREA, APPROVING THE FORM OF NOTICE OF INTENTION TO SELL BONDS AND
DIRECTING THE PUBLICATION THEREOF.
3. Resolution 85-40: A RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY
REDEVELOPMENT AGENCY PROVIDING FOR THE SALE OF TAX ALLOCATION BONDS
IN THE APPROXIMATE AMOUNT OF THIRTEEN MILLION DOLLARS ($13,000,000)
FOR THE SOUTH MAIN STREET REDEVELOPMENT PROJECT AREA, APPROVING THE
FORM OF NOTICE OF INTENTION TO SELL SAID. BONDS AND DIRECTING THE
PUBLICATION THEREOF.
4. Resolution 85-41: A RESOLUTION OF THE CITY OF SANTA ANA COMMUNITY
REDEVELOPMENT AGENCY PROVIDING FOR THE SALE OF TAX ALLOCATION BONDS
IN THE APPROXIMATE PRINCIPAL AMOUNT OF SEVENTEEN MILLION DOLLARS
($17,000,000) FOR THE SOUTH HARBOR BOULEVARD REDEVELOPMENT PROJECT
AREA, APPROVING THE FORM OF NOTICE OF INTENTION TO SELL 80NDS AND
DIRECTING THE PUBLICATION THEREOF.
It was moved by Councilperson Young, seconded by Councilperson Johnson,
and carr,ied unanimously (6:0) that Agency policy be established such
that the firm providing financial advisory assistance to the Agency for
the sale of tax allocation bonds for the Santa Ana Community
Redevelopment P~oject Area ($70,000,000), the Intercity Commuter Station
Redevelopment Project Area ($8,000,000), the South Main Street
Redevelopment Project Area ($13,000,000), and the South HarborBouleva~d
Redevelopment P~oject Area ($17.000,000) be a company separate and apart
from the underwriter issuing the bonds.
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APPEAL APPLICATION NO. 531 TO OVERTURN PLANNING COMMISSION DENIAL OF
VARIANCE NO. 85-17 FOR THE CONSTRUCTION OF THE SANTA ANA AUTO MALL
IDENTIFICATION SIGN
Councilpe~son McGuigan stated that Councilman Acosta very much wanted to
be present when action is taken on this item, and moved for a
continuance. Councilpe~son Luxembourger seconded the motion, which was
defeated (2:4) with Councilper,sons Griset, Hart, Johnson and Young
voting against the continuation.
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PUBLIC HEARING
Mayor Gr,iset announced that it was the time and place for the Public
Hearing on Negative Declaration and Appeal Application No. 531 - VA
85-17 - to permit the construction of an on-site freestanding sign
identifying the new Santa Ana Auto Mall, Cindy Nelson, Redevelopment
Officer, presented the staff report and recommendations. There were no
written communications and no speakers in opposition or in support.
Following the close of the Public Hearing, it was moved by Councilperson
Young, seconded by Councilperson Johnson, and carried (5:1) with
McGuigan casting an opposing vote, that the City Council approve and
file Negative Declaration and instruct the City Attorney to pr,epare a
resolution approving Appeal Application No. 531, approving VA 85-17, and
over,ruling the decision of the Planning Commission.
ADJDURNMENT
There being no further business to come before.the Redevelopment Agency
and the Downtown Development Commission, these bodies were adjourned at
9:10 PM.
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Deputy City'Manager!Development
Danlel E. Grlset,
Chairman
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