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HomeMy WebLinkAbout11/18/1986 MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL NOVEMBER 18, 1986 tlÞThe Joint Regular Meeting of the Community Redevelopment Agency/City Council was called to order by Chairman Daniel E. Griset at 6:01 P.M. in Council Chambers, 22 Civic Center Plaza, Santa Ana, California. Following the Pledge of Allegiance to the Flag, the Invocation was given by Councilmember McGuigan. The roll was then called: PRESENT ABSENT John Acosta Daniel E. Griset, Chairman R. W. Luxembourger Patricia McGuigan Dan Young (6:45 P.M.) P. Lee Johnson, Vice Chairman Wilson Hart Others in attendance: . David N. Ream, City Manager Edward J. Cooper, City Attorney Rex Swanson, Deputy City Manager/Development Jan Perkins, Deputy City Manager/Operations Robert Hoffman, Real Estate Manager Patti Nunn, Project Manager Pat Whitaker, Neighborhood Improvement Manager Mellmary McNeely, Agency Secretary Kirk Evans, Kirk S. Evans, Inc. MINUTES It was moved by Agency Member Acosta, seconded by Agency Member Luxembourger and carried unanimously (4:0) that the Minutes for the Regular Meeting of the Community Redevelopment Agency, held October 21, 1986, be approved as received. PUBLIC HEARING TO ADOPT RESOLUTION 86-53 DIRECTING CONDEMNATION OF BILLBOARDS WITHIN THE A-12 DEVELOPMENT SITE (228 N. BROADWAY AND 314 W. THIRD STREET) The City Attorney requested that the Agency Members delay the subject Public Hearing until after the Agency's Executive Session. When the Agency Members Acosta, Griset, Luxembourger, McGuigan and . Young returned from the Executive Session at 7:05 P.M., the following motion was made: It was moved Luxembourger by Agency Member McGuigan, and carried unanimously seconded by (5:0) that Agency Member the Community Redevelopment Agency agree to a settlement of $30,000 ($15,000 per panel) with Gannet Outdoor Company for the two outdoor advertising signs situated on real property located at 210-228 North Broadway and 304-314 West Third Street in the City of Santa Ana. ~UBLIC HEARING TO ADOPT RESOLUTION 86-54 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-8 DEVELOPMENT SITE (202-210 E. FOURTH STREET & 313 N. BUSH; A.P. NOS 398-503-01 & 02) The City Manager advised the Agency Members that it would require five members of the Agency to be present and voting on the subject Public Hearing; hence, the Public Hearing to adopt Resolution No. 86-54 was not convened until after Council Member Young's arrival at 6:45 P.M. Chairman Griset declared that it was the time and place for the Public Hearing on the issue of the public necessity to acquire by condemnation a property identified by Assessor Parcel Number, as Book 398, Page and Block 503, Parcels 01 and 02, 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 requested that staff 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 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 owner of record, or any offer has not been made because the owner cannot be located with reasonable diligence. The Real Estate Manager pointed out that the Public Hearing was being held for property which was located within the A-8 Development site as a part of the Fiesta Marketplace Partners development which will provide for a new multi-plex theater, 3,600 square feet of adjoining retail shopping, aI, 500 square foot "food court" as well as two two-level buildings totaling 58,000 square feet with ground floor retail and upper floor office space, and a rehabilitated Yost Theatre and Ritz Hotel. He added that the Redevelopment Agency will design and construct parking facilities which will provide approximately 350 surface parking spaces as well as 750 spaces within a parking structure. He stated that this project is intended to provide clean, safe and decent retail, commercial and entertainment facilities and will provide a cultural center for both the City of Santa Ana and the County of Orange. The Real Estate Manager then read the following excerpt from Redevelopment Plan Objectives, as adopted by the Agency: "The objectives of the Redevelopment Plan are to restore the economic and social health of the Santa Ana downtown area, make the area a source of pride to persons residing and working in Santa Ana or ~isiting the City, guide development towards an urban environment preserving the aesthetic and cultural qualities of the City, assist in the re-establishment of businesses within the project area, and stimulate and attract private investment thereby improving the City's economic health, employment opportunities and the tax base. The foregoing objectives shall be accomplished through removal of 2 structurally substandard buildings, elimination of blighting influences, provision of substantial offstreet parking through the use of multi-story parking structures, removal of impediments of land disposition and development, and achievement of changes in land use." The Real Estate Manager said that, in his opinion, the Fiesta tlÞMarketplace development, which necessitated the proposed condemnation, was an implementation of this stated Agency objective. The Real Estate Manager then advised that he wished to incorporate by reference the Staff Report, dated October 21, 1986, which was contained in the agenda packet provided to the Agency Members for this Public Hearing. He added that the owners of the subject properties were extended an invitation to participate in the Fiesta Marketplace project, but declined and that the Agency had offered fair market value as established by an independent appraiser to purchase each of the subject properties and that each owner had declined such offer to purchase. The Agency Secretary affirmed written communications. to the Chairman that there were no The Chairman then stated that the Agency would like to hear from those people who desired to address the Agency on this issue and asked them to keep in mind the requirements of Section 1245.235 of the Code of Civil Procedure that all comments should only address the following four issues: 1) Whether the public interest and necessity require the project; 2) tlÞwhether 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. There being no one who wished to address the Agency the Chairman declared the Public Hearing closed and called for a motion. It was moved by Agency Member McGuigan, seconded by Chairman Griset and carried unanimously (5:0) that the Agency adopt Resolution No. 86-54: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE A-8 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR (202-210 EAST FOURTH STREET AND 313 NORTH BUSH STREET). JOINT PUBLIC HEARING REGARDING WITH KIRK S. EVANS, INC. Chairman Griset opened the Public Hearing and, after it had proceeded ~through the staff presentation, Agency Member Acosta stated that he did ~not feel 'that he could support the adoption of Resolution No. 86-59 because Mr. Kirk Evans had not presented an audited financial statement with his proposal as required by the Request for Proposal. After a discussion period between staff and the Agency Members, it was determined that the proper procedure would be to defer the Public Hearing until such time as Agency Member Young arrived. DISPOSITION AND DEVELOPMENT AGREEMENT 3 After Agency Member Young's arrival at 6:45 P.M., the Chairman declared 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 La Bonita site by the Community Redevelopment Agency of tlÞthe City of Santa Ana to Kirk S. Evans, Inc., adding that the site is 4.81 acres of land located at 1421 La Bonita Street, just south of Westminster Avenue. He then asked staff to identify the property or issues and give the Commission's recommendation as well as the staff's comments. Project Manager Patti Nunn stated that Kirk S. Evans, Inc. was awarded an Exclusive Right to Negotiate for the La Bonita site on August 19, 1986 and that a Disposition and Development Agreement had been negotiated for the development of the 4.81 acre site located south of Westminster Avenue between Euclid and Newhope Streets. She pointed out that the La Bonita site was originally purchased from the Garden Grove Unified School District by the City to be used as a park but that, after passage of Proposition 13, funds were not available to develop the site and the decision was made to sell the land to the Agency for the appraised value, with the understanding that the Agency would market the site for housing development and that the proceeds of the sale would go toward the improvement of Rosita Park. She stated staff had worked diligently with Mr. Evans to finalize the proposal now being submitted for approval, adding that this proposal called for the development of 48 single-family detached homes on individual lots averaging 3,000 square feet, that the development is situated on a tlÞprivate street with a loop configuration that measures 36 feet wide except at the southerly tip where it measures 32 feet wide, and that all the units are two stories and feature three bedrooms. She stated that the purchase price of the land to be paid by the developer is $18,000 a unit for a total of $864,000 and that construction on the project will begin within 90 days of conveyance of the site which is expected to occur in January, 1987. She pointed out that the developer has secured financing from Charter Savings Bank, who has provided an Offering Letter, dated July 21, 1986, confirming a loan commitment through 12:00 noon December 31, 1986. The Project Manager stated that Mr. Evan's proposal was presented to the Community Redevelopment Commission at their Meeting of November 4, 1986 and that the Commission recommended that the Redevelopment Agency: 1) Approve a Disposition and Development Agreement with Kirk S. Evans, Inc. for the La Bonita site and authorize the Chairman to execute the necessary documents; and 2) approve the conceptual development plans proposed by Kirk S. Evans, Inc. for the site. She then introduced Mr. Kirk Evans for further comment on his proposed development. The Chairman and Members of the Agency agreed that they did not feel it was necessary for them to look at a slide presentation which Mr. Evans ~ad available in Council Chambers. Mr. Evans stated that he wished to thank the Agency staff who had given him great support and enabled him to bring back a proposal which is, in his opinion, superior to the one first presented to the Agency. He pointed out that the square footage of the project had been increased by eliminating the two-bedroom model 4 and making all of the models three-bedrooms, adding that Plan 1 has three bedrooms, 2 3/4 baths and consists of 1, 213 square feet; Plan 2 and Plan 3 each have three bedrooms, 2 1/2 baths and consist of 1,315 square feet and 1,429 square feet respectively. He advised that the sales prices will range from $107,000 for Plan 1 to $122,000 for Plan 3 .WhiCh makes them competitive with the surrounding residential area. He stated that the street which cut through the development had been eliminated thus providing more open space and that Morningside and Kraft Streets would still be closed off to discourage through traffic, adding that the Fire Department had not objected to this proposed street closing. Mr. Evans stated that his plans were complete and that he hoped to be under construction by the end of the summer. The Agency Secretary confirmed to Chairman written communications. Griset that there were no No one responded when he asked if there were others present who wished to speak in favor of or against the subject resolution. The Chairman then called for comments from Agency Members. Agency Member Acosta stated that, after reaching a better understanding of Mr. Evan's financing, he was now prepared to support the subject resolution but that he wished to caution staff that, in the future, if a Request for Proposals stipulated that the developer had to submit an audited financial statement with his proposal, he expected the Agency staff to insist that the developer fulfill this requirement. He added that he .felt each developer should be expected to meet all of the requirements of any Request for Proposals issued by the Agency. It was then moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (5:0) that the Redevelopment Agency: 1. Adopt Resolution No. 86-59: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND KIRK S. EVANS, INC.; and 2. Approve the conceptual development plans proposed by Kirk S. Evans, Inc. for the site. JOINT PUBLIC HEARING REGARDING DEVELOPMENT AGREEMENT WITH CIVIC CENTER BARRIO HOUSING CORPORATION FOR DEVELOPMENT OF THE JACKSON PARK SITE This item was considered arrival at 6:45 P.M. by the Agency prior to Agency Member Young's The Chairman advised 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 Jackson Park site by the Community Redevelopment Agency of the City of Santa Ana to Civic Center Barrio Housing Corporation, adding that the site is a one-half acre square parcel of land located 5 four blocks east of Harbor Boulevard on the west side of Jackson Street between First Street and Fifth Street. He then asked staff to identify the property or issues and give the staff recommendation. The City Manager asked Project Manager Patti Nunn to make the staff presentation. .The Project Manager stated that, on February 19, 1985, the Redevelopment Agency approved a Sales and Development Agreement with the Civic Center Barrio Housing Corporation for the development of Jackson Park. She pointed out that this was a park site that the City sold to the Agency for the purpose of providing low-income housing. She added that the Agency had granted five extensions to the Agreement due to the difficulty experienced by the Civic Center Barrio Housing Corporation in securing construction financing for owner-built, low-income units. She added that now the Civic Center Barrio Housing Corporation was proposing to build four four-bedroom units and three three-bedroom units for rental to qualified low-income families. She added that the rent to be charged for the units will be based on HUD Section 8 rentals, which specifies $750 per month for a three-bedroom unit and $830 per month for a four-bedroom unit. She stated that the site is being sold to Civic Center Barrio Housing Corporation for $30,000 and that approval is being sought to utilize $29,500 in Community Development Block Grant funds, earmarked for fees and permits for the La Bonita site, for the land purchase, adding that Civic Center Barrio Housing Corporation will provide the additional $500 of the purchase price. She pointed out that construction and permanent .finanCing are being funded by Mercury Savings and Loan Association and that Civic Center Barrio Housing Corporation is requesting a $50,000 Housing Infill Loan, adding that $80,000 of the A-9 lawsuit settlement money will also be utilized for the cost of construction. She advised the Agency Members that the elevations for the proposed development were on display in the Council Chambers and that the Neighborhood Improvement Manager was available to answer any questions the Agency Members might have. The Agency Secretary affirmed written communications. to Chairman Griset that there were no No one responded when the Chairman asked if there were those present who wished to speak in support of or against the proposed resolution. The Chairman then asked if there were questions from the Agency Members. In response to questions from Agency Member McGuigan, the Manager stated that the proposed structure would be built by a contractor and not with "sweat equity" and that the Mercury loan would be in first position and the Agency's loan would . second position. In response to questions from Agency Member Luxembourger, the Neighborhood Improvement Manager stated that all of the loans that are contemplated will not exceed the loan to value ratio and that, at the end of the ten-year loan period when the property is refinanced, it is expected that the value of the property will have escalated to a point that the Agency loan can be paid off. Project general Savings be in 6 In response to further questions from Agency Member Luxembourger, the Deputy City Manager/Development stated that, typically, when the Agency is involved in subsidizing through loan terms for housing and rehabilitation, one of the methods used is the improvement of cash flow 8by deferment of payment, thus allowing the developer to recapture equity on the inflated value. He pointed out that the Jackson Park project was creating affordable Section-8 housing and that staff felt the improvement of cash flow was the appropriate way to assist in the implementation of the project. He added that, in the past, the Agency had found that most residential loans can be refinanced successfully. He stated that, in the next ten years, there probably will be an appreciation rate of from 3% to 5%, compounded annually, and that, unless there is a serious deflation of the economy, the Civic Center Barrio Housing Corporation will be a low-risk to no-risk loan. In response to further questions from Agency Member Luxembourger, the Neighborhood Improvement Manager stated that the Civic Center Barrio Housing Corporation had prior experience in property management and intended to provide this service for the proposed development of the Jackson Park site. After further discussion, it was moved by Agency Member Luxembourger, seconded by Chairman Griset and carried unanimously (4:0) that the Redevelopment Agency: 81. Adopt Resolution No. 86-60: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT OF AN AGREEMENT FOR THE SALE AND DEVELOPMENT OF REAL PROPERTY WITH CIVIC CENTER BARRIO HOUSING CORPORATION; and 2. Approve an Infill New Construction Loan for $50,000 to Barrio Housing Corporation for the Jackson Park site. Civic Center CONTRACT APPROVAL AND FUND TRANSFER lAPPROPRIATION ADJUSTMENT NO. 36) FOR CITY/AGENCY MEDIAN PROJECTS It was moved by Luxembourger and Agency: Agency Member Young, seconded by Agency Member carried unanimously (5:0) that the Redevelopment 1. Approve the award of contract for landscaping of existing medians to Valley Crest Landscape, Inc. in the amount of $1,453,809.15. 2. Approve the repayment Redevelopment Project Area of providing funds for the 8HARRY GREENBERG DEFERRED LOAN, of $137,065 from the South Harbor Fund to the General Fund for the purpose improvement of medians. GRAND CENTRAL BUILDING By unanimous consent of the Agency Members, this item was continued to a future Agency meeting. 7 RESOLUTION DELEGATING AUTHORITY TO THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OR THE CITY MANAGER TO EXECUTE AGENCY CONTRACTS OF $10,000 OR LESS It was moved by Agency Member McGuigan, seconded by Chairman Griset and .carried unanimously (4:0) that the Agency adopt Resolution No. 86-57: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA DELEGATING AUTHORITY TO THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OR THE CITY MANAGER TO EXECUTE REDEVELOPMENT AGENCY CONTRACTS NOT EXCEEDING $10,000. RESOLUTION HONORING THE SERVICES OF ROBERT W. LUXEMBOURGER It was moved by Agency Member Acosta, seconded by Agency Member McGuigan and carried unanimously (4:0) that the Redevelopment Agency adopt Resolution No. 86-61: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA HONORING THE SERVICES OF ROBERT W. LUXEMBOURGER. RESOLUTION HONORING THE SERVICES OF P. LEE JOHNSON It was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (4:0) that the Redevelopment Agency adopt Resolution No. 86-62: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA HONORING THE SERVICES OF P. LEE JOHNSON. .EXECUTIVE SESSION The meeting was adjourned to Executive Session at 6:43 P.M. (Agency Members: Acosta, Griset, Luxembourger and McGuigan in attendance) and the Agency Members returned to the Council Chambers at 7:05 P.M. (Agency Member Young joined the Executive Session at 6:45 P.M.) AGENCY AGENDA ITEMS It was moved by Agency Member Luxembourger, seconded by Agency Member McGuigan and carried unanimously (5:0) that the Redevelopment Agency: ratify a final offering of compensation in the amount of $150,000 for the real property and $10,820 for the fixtures and equipment in the case of the Redevelopment Agency v. Chevron (Case No. 452187). . The City Manager called the attention of the Agency Members to a letter, which had been drafted for Mayor Griset's signature, to President Ronald Reagan regarding the enforcement by the Immigration and Naturalization Services agents of the recently passed Immigration Reform and Control Act of 1986. ratify a final offering of compensation in the amount of $110,000 in the case of the Redevelopment Agency v. Matkin (Case No. 452190). Ratify a final offering of compensation in the amount of $600,000 in the case of the Redevelopment Agency v. Matkin (Case No. 452189). 8 Agency Member McGuigan stated that she agreed with the spirit of the letter but was uncomfortable with the concept that the City Council was trying to tell the Immigration and Naturalization Services how to perform their duties, adding that she was sure the Council Members would object if INS tried to tell them how to perform their duties. 4IÞAfter a general discussion in which all of the Agency Members expressed support for the philosophy expressed in the letter, they asked the City Manager to make sure that the letter is widely disseminated within the business community. ADJOURNMENT There being no further business to come before the Agency, the meeting was adjourned at 7:35 P.M. to November 25, 1986 at 7:30 P.M. in Council Chambers, 22 Civic Center Plaza, Santa Ana, California. ~ .~M~ Daniel E. Griset Chairman Executive Director . . 9