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HomeMy WebLinkAbout09/17/1985 8 I 8 " MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY SEPTEMBER 17, 1985 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Griset at 12:30 A.M. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California. Chairman Griset then adjourned the meetng to an Executive Session. The Agency Secretary announced that the legal counsel had requested that the Redevelopment Agency recess to closed session, pursuant to Government Code Section 54956.9 (A) to confer with its attorney regarding pending litigation which has been initiated formally, and to which the Redevelopment Agency is a part; identification of such litigation would jeopardize the Agency's ability to conclude existing settlement negotiations to its advantage; and the legal counsel requests that the Redevelopment Agency recess to closed session to confer with its attorney regarding pending litigation pursuant to Government Code Section 54956.9 (B) (1) (significant exposure). The Agency members returned to the Council Chambers at 1:22 A.M. MINUTES It was moved by Mr. Johnson, seconded by Mrs. McGuigan and carried unanimously (7:0) that the Agency approve the Minutes of the Regular Meeting of the Community Redevelopment Agency held on July 16, 1985. PUBLIC HEARINGS It was moved by Mrs. McGuigan, seconded by Mr. Hart and carried unanimously (7:0) that the Agency continue to September 24, 1985 at 7:00 P.M. the following items: PUBLIC HEARING TO ADOPT RESOLUTION 85-29 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-9 REDEVELOPMENT SITE (511 EAST THIRD STREET, ASSESSOR PARCEL NOS. 398-481-22 & 23). PUBLIC HEARING TO ADOPT RESOLUTION 85-30 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-9 REDEVELOPMENT SITE (A.P. NO. 398-507-01, 02 & 03; 410, 420, 422, 426 AND 430 EAST FOURTH STREET). PUBLIC HEARING TO ADOPT RESOLUTION 85-31 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-I0 REDEVELOPMENT SITE (ASSESSOR PARCEL NO. 398-508-01, 02, 03, 04, 07, 09, 10 & 11: 207 N. FRENCH STREET). PUBLIC HEARING TO ADOPT RESOLUTION 85-32 DIRECTING , I 8 CONDEMNATION OF PROPERTY WITHIN THE A-lO REDEVELOPMENT SITE (ASSESSOR PARCEL NO. 398-515-02; 116 NORTH FRENCH STREET) PUBLIC HEARING TO ADOPT RESOLUTION 85-33 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-lO REDEVELOPMENT SITE (ASSESSOR PARCEL NO. 398-515-05 & 07; 321 EAST FIRST STREET). PUBLIC HEARING TO ADOPT RESOLUTION 85-34 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-10 REDEVELOPMENT SITE (ASSESSOR PARCEL NO. 398-491-01 & 03; 506 AND 510 EAST SECOND STREET). PUBLIC HEARING TO ADOPT RESOLUTION 85-35 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-13 REDEVELOPMENT SITE (1006-1008 WEST SANTA ANA BOULEVARD: ASSESSOR PARCEL NO. 405-161-16) 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 405, Page and Block 161 Parcels 16 and 17, for redevelopment purposes. He asked that staff identify the properties and the project and to comment on the factors and evidence necessitating the condemnation action and 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 the greatest public good and the least private injury; why the properites sought to be acquired are necessary for the project; and, whether or not the offers as required by Section 7267.2 of the Government Code have been made to the owners of record, or the offer has not been made because the owners cannot be located with reasonable diligence. The Real Estate Manager stated that 1002 through 1008 West Santa Ana Blvd. was owned by George M. Hansen, Patricia A. Hansen, Samuel T. Stewart and Donna L. Stewart and contained a total of 11,500 square feet of land improved with a total of approximately 5,000 square feet of residential, office and storage structures which house bail bondsmen and legal offices. He pointed out that the Agency, at its meeting of July 23, 1985, adopted two resolutions of necessity for the assemblage of the A-13 Site which was comprised of two square blocks on the southwest corner of Santa Ana Blvd. and Flower Street. He stated that the Agency had been apprised that 19 of the 21 ownerships within the site had been acquired and that one of the two remaining parcels had been acquired without the need for filing a condemnation action. He added that the other parcel is presently held in an estate which seems to be the complicating factor interfering with a settlement. He pointed out that, at the July meeting of the Agency, staff believed that the subject parcel's acquisition had been resolved in that two of the owners had executed escrow instruction and the others had indicated acceptance verbally; however, all four owners have since changed -2- 8 I 8 their minds. The Real Estate Manager stated that on January 7,1984, the Agency had executed a Disposition and Development Agreement with Lowy Development Corporation for assemblage of the 3.3 acre site for a phased commercial complex, totaling 150,000 square feet. He pointed out that the site is zoned for civic development and is an integral component in the redevelopment of the area, due to its proximity to the Civic Center and new development to the east and the south. He added that the subject parcels are in the center of the site on the Santa Ana Boulevard frontage and are critical as the only portion of the site still to be acquired. He stated that the A-13 Site was comprised primarily of old, substandard housing or business uses that did not represent the highest and best use of the property. He added that all displacees will receive full relocation assistance and benefits and pointed out that 60% of the tenant or renter displacees from this site have been able to purchase homes with the relocation assistance provided them. He stated that an offer of just compensation had been presented to the owners of record. Chairman Griset then asked for those who wished to address the Agency to step to the podium and to limit their comments to five minutes and keep in mind the requirements of Section 1245.125 of the Code of Civil Procedure and that comments should only address the following four issues: 1. Whether the public interest and necessity require the project; 2. 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; 3. Whether the properties sought to be acquired are necessary for the project; 4. Whether an offer, as required by Section 7267.2 of the Government Code, has been made to the record owner. There being no one who wished to speak for or against the proposed condemnation, the Chairman declared the Public Hearing closed and stated that a motion to adopt the Resolution Nos. 85-35 and 85-36 was in order. It was then moved by Mr. Luxembourger, seconded by Mr. Hart and carried unanimously (7:0) that the Agency adopt Resolution 85-35: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 1006-1008 WEST SANTA ANA BOULEVARD, IN THE CITY OF SANTA ANA FOR REDEVELOPMENT PURPOSES, AND DECLARING THE PUBLIC NECESSITY THEREFOR. -3- 8 8 8 It was moved by Mr. Luxembourger, seconded by Mr. Hart and carried unanimously (7:0) that the Agency adopt Resolution 85-36: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY LOCATED AT 1000-1004 WEST SANTA ANA BOULEVARD, IN THE CITY OF SANTA ANA FOR REDEVELOPMENT PURPOSES, AND DECLARING THE PUBLIC NECESSITY THEREFOR. PUBLIC HEARING TO ADOPT RESOLUTION 85-37 DIRECTING THE CONDEMNATION OF AN OUTDOOR ADVERTISING BULLETIN LOCATED ADJACENT TO THE NEWPORT FREEWAY 500' + EAST OF THE EDINGER OFF-RAMP FOR DEVELOPMENT PURPOSES IN THE AUTO CENTER SITE 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 that certain personal property identified as an outdoor advertising bulletin located adjacent to the Newport Freeway 500' east of the Edinger off-ramp in the City of Santa Ana for redevelopment purposes. He asked that staff identify the property and the project and to comment on the factors and evidence necessitating the condemnation action and 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, whether or not the offer as required by Section 7267.2 of the Government Code has been made to the owners of record, or the offer has not been made because the owners cannot be located with reasonable diligence. The Real Estate Manager made a brief slide presentation showing the location of the subject sign, noting that it was approximately 10 feet from the railroad tract. The Real Estate Manager stated that on December 18, 1984, Agency executed Lease, Option and Development Agreements with nine automobile dealers and that on January 22, 1985, Agency adopted seven resolutions of necessity to assemble the site. He added that the Santa Fe Railway Company subsequently entered into a stipulated judgement for possession of its holdings within the site, two right-of-way strips running east-west across the site and one nineteen foot wide strip forming the northeasterly boundary of the 45-acre site. He pointed out that the Agency now controls the entire site by virtue of the Santa Fe Land Company purchase, negotiated settlements and/or effective Orders of Possession. He stated that, after a good deal of confusion, it was finally determined that the billboard was on the railway property and, when staff tried to include the billboard in the condemnation action against Santa Fe, the Court ruled that the billboard company did not receive proper notice of the previous public hearing adopting the Resolution of Necessity for the railway property, thus necessitating a separate Public Hearing to adopt a Resolution of Necessity against the billboard owned by -4- 8 8 8 . , Metropolitan Outdoor Advertising Company which is located approximately 500- northeast of the intersection of Trotter and Edinger, is 50' high, containing two 14' x 48' panels. He added that this billboard is in the same location as the Santa Ana Auto Mall Identification Sign is to be placed. He pointed out that only a very small portion of the site has the freeway frontage which is so critical for adequate exposure for the proposed Auto Mall. The Real Estate Manager stated that the public interest and necessity require the property for the following reasons: 1. At its meeting of December 18, 1984, the Redevelopment Agency executed nine Lease, Option and Development Agreements for redevelopment of all of the subject properties as an auto mall. 2. The aforementioned agreements provide that the Agency shall convey the subject property free and clear to the redevelopers for development of the auto mall. 3. This redevelopment project represents an effort by the Redevelopment Agency to retain existing auto dealerships in Santa Ana. It is estimated that the possible relocation of a substantital number of the City's present dealerships to other cities would result in a sales tax loss for the City of over $800,000 per year. In addition, recruitment of new dealerships into the mall, and the general volume increases typically realized by such "massing" of dealerships is expected to produce additional sales tax revenues for the City of approximately $900,000 per year. 4. The development of the Auto Mall promotes the goals and objectives of the Redevelopment Plan for the South Main Redevelopment Project through private commercial development and capital investment, the development of vacant land in the Project Area, and the improved market potential for surrounding vacant and under-utilized parcels. He pointed out that the project is planned and located pursuant to meetings and hearings held by the City's Redevelopment Commission, the Planning Commission, the Redevelopment Agency and the City Council and added that 95% of the site had been utilized for agricultural purposes, minimizing the number of businesses which must be relocated, and that all of the businesses to be displaced are eligible for and will receive full relocation assistance benefits according to Federal and State laws. The Real Estate Manager stated that an offer of just compensation had been made to the property owner, pursuant to Section 7267.2 of the Govenment Code. Chairman Griset asked that all people wishing to address the Agency on this issue to step to the podium, give their name and -5- ~ I 8 " address and to limit their comments to five minutes. He added that they should keep in mind the requirements of Section 1245.124 of the Code of Civil Procedure that comments should only address the following four issues: 1. Whether the public interest and necessity require the project; 2. 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; 3. Whether the property sought to be acquired is necessary for the project; or 4. Whether an offer, as required by Section 7267.2 of the Government Code, has been made to the record owner. No one wished to speak in favor of the condemnation Mr. Ronald Berg, 15000 Ventura Blvd, Encino, CA., attorney for Metropolitan Outdoor Advertising Company, spoke against the proposed condemnation of the outdoor advertising bulletin located adjacent to the Newport Freeway 500' + east of the Edinger Off-Ramp for development purposes in the Auto Center Site. When Chairman Griset called for questions from the Agency Members, Mr. Hart asked Mr. Berg the terms of his lease and the income from the billboard to which Mr. Berg replied that their lease was month-to-month but that he had documentation showing that these month-to-month leases are longterm and not cancelled and that the net income from the billboard was $184,000 per year. In response to further questions from Mr. Hart regarding the income from the billboard, Mr. Berg affirmed that the billboard's value was the yearly net income capitalized at 10% . In response to questions from Mr. Young, the City Attorney stated that, since the negotiated purchase of the land from the Santa Fe Land Company, Metropolitan was now the Agency's tenant but that the Agency still had to use eminent domain to remove the billboard and that the $50,000 offered was the fair market value of the billboard's hardware. In response to a question from Mr. Acosta, the City Attorney stated that after staff became aware of the billboard ownership, there was an attempt made to amend the eminent domain action against Santa Fe to include the billboard but that the court ruled that staff was inaccurate because they had not noticed this tenant. In response to further questions from Mr. Acosta, the Real Estate Manager stated that Santa Fe sold the air rights easement -6- - 8 I '. to Cal Trans but retained the fee interest in the land; that the sign was approximately 10' to 12' from the railway track; that the property had been professionally surveyed; and that Santa Fe would not have permitted a sign to be placed on its operative right-of-way and, therefore, the sign is located on the inoperative right-of-way. After further discussion, it was moved by Mr. Young, seconded by Mr. Luxembourger and carried by the following vote: AYES: Griset, Hart, Johnson, Luxembourger, McGuigan and Young NOES: Acosta ABSENT: None NEGOTIATED PURCHASE OF PROPERTY (A.p.d 398-516-07) It was moved by Mr. Luxembourger, seconded by Mrs. McGuigan and carried unanimously (7:0) that the Agency authorize the Chairman of the Redevelopment Agency to execute escrow instructions for the purchase of real property commonly designated as Assessor Parcel No. 398-516-07 for a negotiated purchase price of $61,000 from Bernard Gaon and Judith Gaon. ADJOURNMENT There being meeting was no further business to come before the Agency, the adjourned at 2:02 A.M. ~~ tv.u Daniel E. Griset, Chairman Executive Director -7-