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HomeMy WebLinkAbout08/20/1985 '! "',< . . , f)f( ~ MINUTES REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY AUGUST 20, 1985 The Regular Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by Chairman Griset at 5:53 P.M. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California. After the Pledge of Allegiance to the Flag and an Invocation given by Mr. Luxembourger, the roll was called: PRESENT ABSENT Patricia McGuigan John Acosta Daniel Griset, Chairman Wilson Hart P. Lee Johnson, Vice Chairman Robert Luxembourger Dan Young Others in Attendance: Robert C. Bobb, City Manager Rex Swanson, Deputy City Manager/Development Ed Cooper, City Attorney David N. Ream, Executive Janice Guy, Clerk of the Mellmary McNeely, Agency Services Director/Economic Development Council Secretary COMMUNICATIONS FROM THE PUBLIC There were none. MINUTES Action on the Minutes of the Regular Meeting of the Community Redevelopment Agency, held on July 16, 1985, was postponed until the next regularly scheduled meeting of the Agency. COMMUNICATION FROM STAFF The City Manager stated that this joint meeting of the City Council and the Redevelopment Agency was a significant one in that there were several items on the Agenda which were consistent with the l7-point program which the Council had adopted as a means of furthering the future development of the community. He added that the Centerpointe, Fiesta Marketplace and Main Steet Partners projects were implementations of public investment for the community. He added that, in his opinion, these developments represented a significant public investment in Santa Ana. He pointed out that the three public hearings to be held at this meeting were for projects that represented $115 million in development opportunity in our community. He stated ", ", . , . . 8 that staff had looked forward to bringing forth these recommendations and requested hat the Agency approve them. He then announced that Ms. Sandi Daniels, Project Area Manager, would make the staff presentation on the first public hearing. JOINT PUBLIC HEARING REGARDING OWNER PARTICIPATION AGREEMENT FOR THE C-7 SITE WITH MAIN STREET PARTNERS Chairman Griset announced that it was the time and place for the Joint Public Hearing of the Community Redevelopment Agency and the Council of the City of Santa Ana for the proposed sale of property by the Community Redevelopment Agency of the City of Santa Ana to Main Street Partners. He added that the site is bounded on the north by Owens Drive, on the west by Main Street and on the south and east by the Santiago Creek. He then asked that staff identify the property or issues and give the staff recommendation. The Project Area Manager stated that in February of 1985, the Redevelopment Agency granted an exclusive right to negotiate to Main Street Partners for development of the C-7 site, generally located at the southeast corner of Main Street and Owens Drive. She added that the developer is proposing to construct a $20 million, ten-story, 220,000 square foot office building with structured and surface parking for approximately 680 vehicles. She pointed out that they have an option to purchase two acres of the 4.76 acre site and are requesting that the Agency assist in assembling the remaining properties. She stated that staff had held several meetings with the tenants and owners of the property in this area and that they had expressed concerns about the developments being proposed for the surrounding area such as Fashion Square and others in the City of Orange. She pointed out that there primary concern was about potential traffic congestion. She added that there would be a new traffic signal installed at the intersection of Main and Owens and that Main Street would be widened to accommodate the additional traffic in the area. She stated that the developer will advance to the Agency all necessary funds, which will amount to approximately $1.3 million, to acquire the third party parcels. She added that the purchase price to be paid by the developer for the sales parcel is $975,000 or $17.50 per square foot based on a reuse appraisal prepared by Keyser Marston. She stated that the balance will be considered as a loan by the developer to the Agency to be repaid with tax increment generated solely by this development. She added that, in order to ensure a timely repayment for the City property, sixty percent of the increment will be pledged until the debt is retired, resulting in an estimated six-year payment period. She added that, following this payment, 100% of the increment will then be applied against the balance, resulting in approximately a ten-year repayment period for the developer's loan at an annual interest rate of 12%. She then introduced Mr. William Singer of William Singer Associates, one of the partners in the Main Street Partnership. Mr. Singer stated that the Main Street Partnership was a joint -2- . . 8 . venture between William Singer Associates and Dunn Properties, which had been headquartered in Santa Ana for 20 years. He added that Dunn Properties is owned by Pacific Electric which also owns the Southern California Gas Company. Mr. Singer then made a slide presentation which showed the existing uses of the C-7 site, the previous developments Dunn Properties has constructed in other areas and the site plans of the proposed development on the C-7 site. There being no written communications, Chairman Griset then asked that all persons in agreement with the proposed sale to step forward to the podium. Mr. Jim Olmstead, of Dunn Properties, addressed the Agency and stated that Dunn Properties was most enthusiastic about the proposed development of the C-7 site and felt that it was not only in the best interests of Santa Ana but was also compatible with developments in the City of Orange, as well as that which is being proposed for Fashion Square. Chairman Griset then asked that all persons disagreeing with the proposed sale to step to the podium. Mr. Joe Hammann, a property owner from the C-7 site, addressed the Agency and stated that there is an 18-acre site near the C-7 site which could be used for the proposed development and that, in his opinion, there is enough vacant land in Santa Ana to make it unnecessary for the residents of the C-7 site to be relocated. He added that he felt it would be difficult to replace his property in today's market. Mr. Jacob Thomas, a resident of the C-7 site, stated that he agreed with Mr. Hammann and added that because there is a 35% to 40% vacancy factor in the high-rise developments, he felt it was unnecessary to build another one. There being no one else wishing to speak on the subject under discussion, Chairman Griset declared the Public Hearing closed and asked Agency Members if they had any questions of the staff or of those who had commented. Mr. Luxembourger then asked staff to respond to the three points raised by persons disagreeing with the proposed sale, namely: 1) the price of replacement homes; 2) the vacancy factor in high-rise office buildings; and, 3) the status of the 18-acre parcel mentioned. The Deputy City Manager/Development Services stated that, regarding the price of replacement properties, the Agency is obligated by law to pay just compensation. He added that staff feels the homes in the C-7 site would be valued high enough to allow the owners to purchase replacement properties. He added that the vacancy factor of new office buildings in Orange County is approximately 23%, and that in Santa Ana it is approximately 20%. He pointed out that this is not as awesome as it might seem -3- . . . in that it takes 48 months to bring a new office building on the market and that what is presently on-hand is viewed as inventory for this period of construction. He added that he did not feel Dunn Properties would consider a development of this scope if they did not believe it could be leased. The Deputy City Manager/Development Services stated that the l8-acre parcel referred to was presently held by an Estate and had been on the market for a variety of proposed uses. He added that the Estate was presently in negotiations with a private purchaser and that staff did not view this site as a replacement site for the C-7 site, pointing out that it would properly be a site for a mixed-use development of much higher density. In response to questions from Mr. Young regarding the calculation of the reuse value of the land, Mr. Richard Botti of Keyser Marston, financial consultants to the Agency, stated that the proposed project for the C-7 site was the highest and best use for the land and, therefore, there should be no difference between the acquisition and reuse costs. In response to questions from Chairman Griset, the Deputy City Manager/Development Services stated that the Agency would be purchasing residential units, complete with equipment and a variety of other improvements, which would result in a considerably higher cost for the property than land value. He added that vacant land in the area was priced at from $19 to $20 per square foot. He added that the irregular configuration of the C-7 site and the necessity of relocating a jet fuel line that ran below the property had caused the site to be appraised at the $17.50 per square foot price. After further discussion, it was moved by Mr. Johnson, seconded by Mr. Hart and carried unanimously (6:0) that the Agency: 1. Adopt Resolution No. 85-27: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY AND MAIN STREET PARTNERS; and 2. approve the conceptual plans proposed by Main Street Partners; and 3. approve the project budget and authorize its implementation by the Redevelopment Commission. It was moved by Councilmember Johnson, seconded by Councilmember Luxembourger and carried unanimously (6:0) that the Council adopt Resolution 85-103: 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 AN OWNER PARTICIPATION AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND MAIN STREET PARTNERS FOR THE SALE OF CERTAIN REAL PROPERTY IN THE SANTA ANA REDEVELOPMENT PROJECT AND APPROVING THE SALE OF SAID REAL PROPERTY UPON THE -4- . . . TERMS AND CONDITIONS CONTAINED IN THAT AGREEMENT. JOINT PUBLIC HEARING REGARDING DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE A-2 SITE WITH CARLEY CAPITAL GROUP Chairman Griset announced that it was the time and place for the Joint Public Hearing of the Community Redevelopment Agency and the City Council of the City of Santa Ana for the proposed sale of property known as the A-2 site by the Community Redevelopment Agency of the City of Santa Ana to Carley Capital Group and that the site is bounded on the north by Santa Ana Boulevard, on the east by Broadway, on the south by Fourth Street and on the west by Ross. He then asked that staff identify the property or issues and give a staff recommendation. The Deputy City Manager/Development Services stated that approximately 18 months ago the City Council directed staff to put together a "block buster" project for the downtown area. He added that the propossl staff was bringing to the Agency was for an exciting mixed-use development comprised of a I5-story, 240,000 square foot office building; 198-room quality hotel; 50,000 square feet of retail; a 50,000 square foot conference center; and a I250-space parking structure. He added that the hotel and office components are to be connected by an enclosed glass atrium and that the estimated development value will be in excess of $85 million. He stated that the Centerpointe development would be a landmark development, the premier development in Orange County. He then introduced Ms. Maureen McAvey, of the Carley Group, and asked her to make their presentation to the Agency. Ms. McAvey thanked the Agency for the opportunity to address it and stated she felt it was an honor to present Carley's proposed development for the A-2 site. She added that the past year of negotiations had, in her opinion, produced a far stronger and better project than they had a year ago. She added that the design, scope and program had been changed and that they had been influenced by the proposed tax changes at the Federal level and the instability in the money market. She stated that Carley believed that their project would support and strengthen the Fourth Street retail business. She pointed out that, in addition to a first class hotel and conference center, a special retail section would be added. She then introduced Mr. Barry Elbasani of ELS Design Group. Mr. Elbasani stated that he would present the conceptual design for the project and that ELS had begun to work on the floor plans, costs, materials to be used and the image to be projected in relationship to the surrounding area. Mr. Elbasani then made a slide presentation showing detailed site plans for the project. Ms. McAvey then addressed the Agency and stated that the Carley Group was very happy with the prospect of becoming a part of the Santa Ana community and wished to thank the Agency and its staff for helping Carley to bring this project into being. -5- . . . 'When Chairman Griset asked those persons in agreement with the proposed sale to step forward to the podium, there was no response. He then asked for those disagreeing with the proposed sale to step forward to the podium. Mr. Robert Lopez, of 1535 E. 17th Street, addressed the Agency and registed the following objections: 1) community was not consulted on this new proposal for the A-2 site; 2) the parking structure would have an excess of 250 spaces; 3) other buildings along Broadway should be refurbished, including the Broadway Theater; 4) a study should be made to see if the proposed hotel is economically feasible; 5) the project was rushed into and a moritorim should be declared until the future of the Westdome development is known. Mr. Manuel Pena, of 631 Fairview, stated that: 1) the City Manager had stated that he wanted a City Hall that would not intimidate the people and that in his opinion the proposed Carley development would be intimidating; 2) the development of Westdome and Centerpointe would center all interest on the west end of Fourth Street thus creating a "slow kill" of the merchants on east Fourth Street. Mr. Charles McClung, Jr., attorney for the Olivos family, recapped some of the prior negotations between the City and the Olivos family. He stated that the Olivos family did not oppose the development of the A-Z site but would ask that the Agency reconsider the demolition of the Broadway Theater, adding that, in his opinion, rehabilitation of the theater would cost less than a new theater or a performing arts center. He asked for a 30-day delay to allow the Olivos family time to formalize their plans. Chairman Griset then declared the Joint Hearing closed and asked if there was anyone else here to speak to the subject or did staff have a rebuttal on the environmental findings or the proposed sale. The Deputy City Manager/Development Services stated that the proposed A-2 development would not separate one end of the downtown area from the other end but would instead totally integrate the whole area. He stated that this was not the time to call a moritorium but a time to escalate and look for other opportunities to invest, adding that this project would encourage investors, thus creating additional employment opportunities and a broader tax base for community services. The City Manager pointed out that the statement he had made regarding the intimidation of people by the City Hall related to the fact that there were so many walls in the present Civic Center. He added that the design of the A-2 development did away with the walls that separate the community. He added that staff considered this proposed development to be economically viable. He pointed out that the hotel will be supported by the conference -6- . . . .center. He added that long-term parking in the downtown area was of great concern and that this project would address the problem. The Deputy City Manager/Development Services stated that the excess of 250 parking spaces was the result of the urging of the downtown business interest to "over park" this project. He added that staff felt that having additional parking is essential to the success of this project. He stated that staff had made a great effort to cut costs on this project and would not lightly recommend making such a costly acquisition as the Broadway Theater unless it was absolutely necessary. He added that the Broadway Theater had no architectural merit and no other function and staff would not propose retaining it for any purpose. He stated staff had made all its recommendations regarding the hotel based on the report of a reputable analyst in the field. He added that the hotel would be a moderately-priced hotel with luxury amenities. The Deputy City Manager/Development Services stated that he did not feel that taking two years to plan a development could be defined as rushing. He stated that the Centerpointe project was in no way dependent upon the Westdome project, adding that Centerpointe would be an anchor for the west end of Fourth Street and Fiesta Marketplace would be an anchor for the east end. Chairman Griset thanked the City Manager and the Deputy City Manager/Development Services for their remarks and advised the Agency Members that now was the appropriate time for questions or comments. Mr. Luxembourger stated that he had been involved with the Broadway Theater as an arson investigator and that, in his opinion, it was a burned-out hull that could not be rehabilitated but would have to be reconstructed. He stated further that he did not feel that anyone would be interested in trying to rehabilitate it because of the very large investment that would be required and that he would urge the Agency not to encourage it. He added that he was very glad to hear that additional parking was being proposed in the Carley development. He pointed out that he had, in the past, requested that additional parking be put on Fourth Street because he felt that the community had to think in terms of 20 to 25 years from now. He added that without additional parking, the growth of businesses on Fourth Street would be greatly inhibited. He stated that he supported the developments on both East Fourth Street and West Fourth Street, adding that he felt that these developments would also benefit North and South Main Streets. He then asked that staff report, at a later date, on the details of the financing for this project. In response to Chairman Griset's questions regarding the assurances that Agency would have as to faithful performance by the Carley Group, the Deputy City Manager/Development Services stated that the Carley Group would make a substantial investment of approximately $1 million for project drawings and that at the point of transfer of title, the Carley Group must record a construction loan for the entire project and draw their building -7- . . , permits. In response to questions from Mr. Young, the Deputy City Manager/Development Services stated that the Disposition and Development Agreement contained a "Right of Reverter" which would permit the Agency to take the land back and all improvements thereon if the Carley Group should defsult. He added that in his 20 years of experience in the redevelopment field, he had never been involved in such an action. In response to further questions from Mr. Young, the City Attorney stated that the land will not be transferred free and clear because the Agency retains the ability to recover the land if the Carley Group does not perform. Mr. Hart commented that, if Carley were to default prior to completion, the financing institution would probably step in and complete the project. The Deputy City Manager/Development Services agreed with this premise, adding that $20 to $40 million could be expended very quickly on a project of this magnitude. Mr. Acosta stated that he was uncomfortable regarding the proposed Carley development in the face of pending litigation on the A-2 site. The Executive Director/Economic Development stated that the land will not be conveyed until all litigations are cleared. In response to a further question from Mr. Acosta regarding the proposed IS-year lease between the City and the developer for the leasing of 72,000 square feet of office space, the Deputy City Manager/Development Services stated that this space would be used to house normal City operations. He pointed out that the City has leased approximately 40,000 square feet of downtown office space on Fourth Street. He added that both the Police Department and the Fire Department have been overcrowded for quite some time. He stated that one option would be to move part of the Police Department to City hall via the connection on the second floor. In response to further questions from Mr. Acosta, the Executive Director/Economic Development stated that the parking spaces in the proposed parking structure would cost approximately $7,000 each. In response to questions from Mr. Hart regarding the $2.00 per square foot lease figure, the Executive Director/Economic Development stated that, based on the historic rent growth in the area, this figure will be below market by the time the construction of the building is completed, adding that space of this caliber is now leasing for $1.75 to $1.85 per square foot. In response to further questions from Mr. Hart, the Deputy City Manager/Development Services stated that a redevelopment project -8- . . . is a contract in which the developer agrees to develop the property to certain standards within certain time-frames, adding that the developer does not have the option of developing as he sees fit or of reselling the undeveloped property. He pointed out that the Agency dictates the type of development that will be placed on a particulsr site and that, because of these circumstances, there is no true subsidy of the developer. Chairman Griset declared a recess at 7:50 P.M. All Agency Members who were formerly present, returned to the Council Chambers at 8:10 P.M. It was then moved by Mr. Johnson, seconded by Mr. Hart and carried unanimously (6:0) that the Agency: 1. Adopt Resolution No. 85-26: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY AND CARLEY CAPITAL GROUP; and 2. Approve the Cooperation Agreement between the Redevelopment Agency and the City of Santa Ana and authorize its execution by the Agency Chairman; and 3. Approve the conceptual plans proposed by Carley Capital Group, noting the exception that the property located at 410 N. Broadway is not a part of the project; and 4. Approve the project budget and authorize its implementation by the Redevelopment Commission. It was moved by Councilmember Johnson, seconded by Councilmember Luxembourger and carried unanimously (6:0) that the City Council: 1. Adopt Resolution No. 85-104: 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 CARLEY CAPITAL GROUP 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. 2. Approve the Cooperation Agreement between the Redevelopment Agency of the City of Santa Ana and authorize its execution by the Mayor and Clerk. JOINT PUBLIC HEARING REGARDING DISPOSITION AND DEVELOPMENT AGREEMENT FOR THE A-8 SITE WITH FIESTA MARKETPLACE PARTNERS Chairman Griset announced that it was the time and place for the Joint Public Hearing of the Community Redevelopment Agency and the City Council of the City of Santa Ana for the proposed sale -9- . . . of property within the A-8 site by the Community Redevelopment Agency of the City of Santa Ana to Fiesta Marketplace Partners. He added that the A-8 Site is bounded on the north by Fifth Street, on the east by French Street, on the south by Third Street, and on the west by Bush Street and then asked that staff identify the property or issues and give the staff recommendation. The City Manager called upon Mr. Ed Henning, Assistant Director of the Downtown Development Commission, to make the staff presentation. The Assistant Director of the Downtown Development Commission pointed out that the Fiesta Marketplace would be a part of a larger project which will soon come into being. He added that the overall project would have more than 200,000 square feet covering four acres, excluding parking. He stated that, after the approval of the A-8 site, 8 other participants will begin to negotiate owner participation agreements for their individual parcels. He then introduced Mr. Irving Chase of the Fiesta Marketplace Partnership. Mr. Chase thanked the Mayor, Agency Members and staff for all their help and advised the Agency that their UDAG Application had been approved by the Los Angeles Area Office of HUD and had been forwarded to Washington, D.C. and that they hoped to have approval by October. He added that the developers would be going before State authorities on August 21, to obtain approval for $6 million in bonding, for which the Bank of America would be the agent. He added that the $1.5 million which would be raised in cash would be guaranteed by Mr. Allan Fainbarg. He then introduced Mr. Al Cruz, of MCG Architects, and asked him to make a slide presentation on the proposed development. Mr. Cruz expressed his gratitude for the help given by Mayor Griset, all of the Agency Members and the Agency staff members to the Partnership during long, hard negotiations. He then made a comprehensive slide presentation showing all of the details of the architectural design for the project. Chairman Griset then asked that persons in agreement with the proposed sale to step forward to the podium. Messrs. Raymond Rangel, Jose Ceballas and Robert Escalante, all partners in the Fiesta Marketplace partnership, addressed the Agency and thanked the Mayor, the Agency Members, the City Manager and all of his staff members for making such valuable contributions to the formation and successful negotiations of the Fiesta Marketplace Partnership. They all stated that the commitment shown by the City's officials and staff had been outstanding and that they were most appreciative for their help and support. They all stated that they felt the Fiesta Marketplace would be a very worthwhile project in which the entire community could take pride. -10- , . . Mr. Joe Ocampo, a Santa Ana businessman, stated that he had been a supporter of the Fiesta Marketplace from its inception and was very proud of the pioneer work that had been done by the Santa Ana Hispanic community and thanked the Mayor, Members of the Agency and the City staff for their help. Mr. Robert Lopez, a Santa Ana businessman, commended the Agency for its vision in supporting the Fiesta Marketplace Partnership. Mr. Manuel Pena, a Santa Ana businessman, addressed the Agency and commended them for their support of the Fiesta Marketplace Partnership adding that no other community could boast of having a project where there was such definite participation by the Hispanic community. Chairman Griset then asked those disagreeing with the proposed sale to step forward to the podium. Mr. William Doddrige, owner of Goldenwest Pawnbrokerage, stated that he had started his business twelve years ago in Santa Ana and had bought the building housing his business in 1979. He added that, in addition to his two businesses, he traded with 18 other jewelry stores in the area. Mr. Doddridge stated that his request to become a member of the Fiesta Marketplace Partnership had been denied. He stated that he needed to remain on Fourth Street due to the nature of his clientele, adding that his annual business was approximately $1,000 per square foot as opposed to the $300 per square foot the Partnership set as their criterion. Mr. Herbert F. Kaiser, attorney-at-law, stated that he had been retained by Mr. Doddridge to represent him in this matter. He stated that, when he had contacted a representative of the Partnership, he had been told that his client's pawnbroker business was not acceptable for inclusion in their project. Mr. Kaiser added that 70% of Mr. Doddridge's business was jewelry and that his pawnbrokerage had never caused any problems for the City of Santa Ana. He then asked that his client be included in the Fiesta Marketplace Partnership. Mr. Luis Olivos, Jr. addressed the Agency and asked that they assist the Olivos family in regaining the ownership of the Yost Theater Mr. Charles McClung, Jr., attorney for the Olivos family, then presented the following written proposal to the Agency:"TAKING INTO CONSIDERATION THE MONIES EXPENDED ON THE THEATRE, AND WHAT IS STILL NEEDED TO COMPLY WITH THE CITY SIESMIC CODE, ALSO WHAT IS STILL OWING ON THE MONEY BORROWED, WE SUBMIT THE FOLLOWING OFFER. $223,000 $50,000. TO BE PUT IN ESCROW IMMEDIATELY WITH THE BALANCE OF $173,000.00 WITHIN NINETY DAYS. THE OLIVOS" Mr. McClung then asked the Agency to give the Olivos family a short period of time to finish negotiations with their partners -11- . . - in order to regain ownership of the Yost Theatre. Mr. Luis Olivos, Sr. addressed the Agency and outlined his many years of business in the City of Santa Ana and asked that his offer to repurchase the Yost Theatre be accepted by the Agency. Chairman Griset then declared the Public Hearing closed and asked if there was a rebuttal from staff. The City Manager stated that, in the matter of the Yost Theatre, the Agency had acquired it for $600,000 and that he had met earlier in the day with the Olivos family and their attorney and that staff's recommendation was simply that the theater is a part of the package with regard to the A-8 development, and that the Olivos family was told to come to the Agency meeting with a firm offer to acquire the theater for $600,000, with financing in hand. He added that, if this were the case, staff was prepared to modify its recommendation to the Agency. He added that, since this was not the case, staff was not prepared to alter its recommendation. In response to a question from Mr. Young, the City Manager stated that, if the Fiesta Marketplace Partnership"s proposal was approved, they would own the Yost Theatre. In response to further questions from Mr. Young, the City Attorney stated that, in his opinion, the Partnership would have the ability to lease or to convey the property after rehabilitation and subject to the terms of the Agreement with the Agency. Mr. Young stated that he was quite uncomfortable at being asked to alter the proposal as submitted and it was his hope that the Partnership, the Olivos family and Mr. Doddridge could all work together to resolve their difficulties. He added that he did not feel that the Agency had the ability to resolve their problems for them. The City Attorney stated that, under the agreement, the Partnership is free to decide who will be the tenants in the development. He added that Mr. Doddrige would be eligible for a whole range of benefits such as relocation and that he was sure Mr. Doddridge's attorney was familiar with the government codes and could advise him of all of his rights. He added that the Agency was not discriminating against anyone, that it was merely entering into an agreement with the Partnership for the development of Fiesta Marketplace. He added that, if the Partnership did not wish to include a pawnbrokerage in their development, they did not have to, in his opinion. Mr. Luxembourger stated that his concern was to put in place something that was long overdue and get it into operation. He added that the Agency was very anxious to resolve this matter and that, even though there were many extenuating circumstances, he felt the Fiesta Marketplace was in the best interest of the -12- 9 , , entire community. He stated that it was, in his opinion, a great milestone for the Hispanic community and a partnership involving the entire community. It was then moved by Mr. Luxembourger, seconded by Mr. Young and carried unanimously (6:0) that the Agency: 1. Adopt Resolution No. 85-28: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT BETWEEN THE AGENCY AND FIESTA MARKETPLACE PARTNERS; and 2. Approve the conceptual plans proposed by Fiesta Marketplace Partners for the A-8 Site; 3. Approve the proposed budget and authorize its implementation by the Redevelopment Commission. It was moved by Councilmember Luxembourger, seconded by Councilmember Johnson and carried unanimously (6:0) that the City Council adopt Resolution 85-105: 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 REDEVELOPMENG AGENCY OF THE CITY OF SANTA ANA AND FIESTA MARKETPLACE PARTNERS 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. -13- - , , '. Chairman Griset called a recess at 9:12 P.M. All members formerly present returned to the Council Chambers at 9:17 P.M. EXCLUSIVE RIGHT TO NEGOTIATE WITH SCHURGIN DEVELOPMENT CORPORATION FOR DEVELOPMENT OF THE HARBOR DRIVE-IN SITE It was moved by Mr. Luxembourger, seconded by Mr. Young and carried unanimously (6:0) that the Agency grant Schurgin Development Corporation a 180-day Exclusive Right to Negotiate for the development of the Harbor Drive-In Site located at the southeast corner of Harbor Blvd., and McFadden Ave. AGREEMENT FOR ARCHITECTURAL DESIGN SERVICES (A-14 SITE PARKING STRUCTURE) It was moved by Mr. Young, seconded by Mr. Luxembourger and carried uanimous1y (6:0) that the Agency approve the proposal for architectural services for the design of an approximate 500-space parking structure on the A-14 Site with McClellan, Cruz, Gaylord & Associates in the amount of $52,000, and authorize the Chairman to execute the necessary documents. REQUEST THAT AGENCY WAIVE GOODFAITH DEPOSIT BY FIESTA MARKETPLACE PARNTERSHIP Mayor Griset advised the Agency Members that staff had brought, to the Agency for a decision, a request from Fiesta Msrketplsce Partnership that their $50,000 Goodfaith Deposit be refundable in the event that the Fiesta Marketplace development did not materialize. After a lengthy discussion period in which several of the Agency Members expressed the concern that waiving the Goodfaith Deposit would set a dangerous precedent for the future and cause ill will on the part of those developers who had made the deposits and lost them in the past, the Fiesta Marketplace -14- e 8 - Partnership withdrew their request. It was also agreed that the discussion of a suitable sign for the site would be postponed to another time. SETTLEMENT AGREEMENT WITH SANTA ANA UNIFIED SCHOOL DISTRICT It was moved by Mr. Young, seconded by Mr. Johnson and carried unanimously (6:0) that the Agency approve the Complete Settlement Agreement and Full Mutual Release between the Santa Ana Unified School District, City of Santa Ana and Community Redevelopment Agency of the City of Santa Ana. APPROPRIATIONS ADJUSTMENT NO. 16 - SOUTH MAIN REDEVELOPMENT TAX ALLOCATION BONDS It was moved by Councilmember Young, seconded by Vice Mayor Johnson and carried unanimously (6:0) that the Council: 1) Approve Appropriations Adjustment No. 16, transferring $3,236,000.00 from 555-010-Estimated Revenue to 555-936-South Main Redevelopment Bond Project. 2) Award in accordance with bid summary report. Santa Ana Auto Center, Phase I, Construction of Street Improvements and Utility Facilities - Public Services Agency; Griffith Company, in the amount of $1,403,912.91. APPROPRIATION ADJUSTMENT NO. 19. - SECTION 108 LOAN GUARANTEE It was moved by Councilmember Young, seconded by Vice Mayor Johnson and carried unanimously (6:0) that the Council approve Appropriation Adjustment No. 19, transferring $467,035.00 from 11-1231 to 510-1931. APPOINTMENT OF ADVISORY BOARD TO DOWNTOWN DEVELOPMENT COMMISSION It was moved by Councilmember Acosta, seconded by Councilmember Johnson and carried unanimously that the members of the Community Redevelopment Commission be appointed to serve as members of the Advisory Board to the Downtown Development Commission. ADJOURNMENT The meeting was adjourned at 9'4~~ Executive Director ~. Griset, Chairman -15-