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HomeMy WebLinkAbout09/24/1985 ¡;'iL .~. . 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 ~ John Acosta Scott Morgan . 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 . 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. .,." 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. . 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 '" 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. . 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. . 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. . 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. . 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. . . . 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. . . . 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 . 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. . 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. . 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. . . . '. 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. ~ .:61. ~ Deputy City'Manager!Development Danlel E. Grlset, Chairman ~