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HomeMy WebLinkAbout08/19/1986 . . . MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL AUGUST 19, 1986 The Joint Regular Meeting of the Community Redevelopment Agency/City Council was called to order at 5:54 P.M. in the Council Chambers 22 Civic Center Plaza, Santa Ana, California. Following the Pledge of Allegiance to the Flag, the Invocation was given by Chairman Daniel E. Griset. The roll was taken by the Agency Secretary: PRESENT ABSENT John Acosta Daniel E. Griset, Chairman Wilson Hart P. Lee Johnson, Vice Chairman R. E. Luxembourger Patricia McGuigan Dan Young Others in attendance: David N. Ream, City Manager Rex Swanson, Deputy City Manager/Development Services Jan Perkins, Deputy City Manager/Operations Edward J. Cooper, City Attorney Cynthia Nelson, Acting Executive Director/Economic Dev. Patti Nunn, Project Area Manager Sandi Daniels, Project Area Manager Pat Whitaker, Neighborhood Improvement Program Manager Me11mary McNeely, Agency Secretary MINUTES It was moved by Agency Member McGuigan, seconded by Agency Member Johnson and carried unanimously (7:0) that the Minutes for the Meetings of the Community Redevelopment Agency held June 30, 1986 and July 15, 1986 be approved as received. APPROVAL OF AGREEMENTS WITH SANTA ANA UNIFIED SCHOOL DISTRICT In response to questions from Agency Member McGuigan, the City Manager stated that money spent by the School District for tehabi1itation is not eligible for reimbursement from the State and will be subtracted from the $8 million which the City Council earmarked as funds to be used to end the shortage of neighborhood classrooms in Santa Ana, adding that only acquisition costs are eligible for reimbursement from the State. ç , . . It was moved by Vice Chairman Johnson, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Redevelopment Agency approve an agreement with the Santa Ana Unified School District for: 1. financial assistance for promoting adequate schools within the jurisdiction of the City and the Santa Ana Unified School District; and 2. financial assistance for remodeling at 1818 S. Bristol. AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT FOR SITE THE A-13 It was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson and carried unanimously (7:0) that the Redevelopment Agency amend Section 204 of the Disposition and Development Agreement with Lowy Development Corporation extending the deadline for submission of the Letter of Credit to January 1, 1987. F.Y. 1986-87 ANNUAL BUDGET OF AGENCY OF THE CITY OF SANTA ANA COMMUNITY REDEVELOPMENT THE It was moved by Vice Chairman Johnson, seconded by Agency Member Young and carried unanimously (7:0) that the Redevelopment Agency approve the F.Y. 1986-87 Budget of the Communi ty Redevelopment Agency of 'the City of Santa Ana as identified in pages 5-1 through 5-118 of the City of Santa Ana's Proposed Annual Budget, 1986-87, with amendments as delineated in Exhibit A. ACQUISITION OF REAL PROPERTY LOCATED AT 1026 NORTH LOGAN STREET (A.P.N. 398-193-18) AND 616 EAST FIFTH STREET (A.P.N. 398-338-04) The City Manager called upon Project Manager Sandi Daniels to make a brief report on the staff's efforts to foster the purchase and rehabilitation of low and moderate income housing. The Project Manager stated that for the past several months, the Economic Development Agency has been working with the Inter-City Neighborhood Committee to address the concerns of the residents in the area, adding that the ad hoc committee was established as a result of the community input meetings held for the Inter-City Project Area Strategy Plan. She pointed out that the group consensus was to first concentrate on identifying, analyzing and pursuing the purchase and development of sites for new housing opportunities in the Logan/Lacy area with the ultimate goal being the combination of several sites in one package and the marketing of them for development on a competitive basis, and/or working with adjacent property owners in assembling a larger site to develop 2 & å . . a quality project, whichever is applicable. She stated that the Council's Economic Development and Housing Subcommittees had reviewed and approved this strategy. She stated that staff had successfully negotiated the voluntary sale of two vacant properties: one 6,000 square foot lot in the Logan neighborhood which will accommodate two to three units, and one 6,250 square foot lot in the Lacy neighborhood which will accommodate two to four units, adding that, in staff's opinion, this will provide quality housing and assist in the rejuvenation of this area. Agency Member Acosta reviewed the history of the zoning of the Logan Area and pointed out that it was essentially a M-2 or Industrial area and he felt that the taking of a lot for residential purposes would be depriving someone of an industrial site. After further discussion by the Agency Members, it was moved by Agency Member Luxembourger, seconded by Vice Chairman Johnson and carried unanimously (7-0) that the acquisition of the real property at 1026 North Logan Street be referred back to the Council's Housing Sub-committee for further study and a report back to the Agency at a later date. It was then moved by Agency Member Hart, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency authorize the Chairman to execute all appropriate documents for acquisition of the real property at 616 East Fifth Street from Jesus Ortiz Estrada for the negotiated amount of $63,000.00. ACQUISITION OF REAL PROPERTY LOCATED STREET (A.P.N. 398-042-2, 3 & 4) 817-825 NORTH LACY AT The City Manager called upon the Neighborhood Improvement Program Manager to answer some questions that were being posed regarding the costs involved in the relocation of the Victorian structure from 322 East Chestnut. The Neighborhood Improvement Program Manager stated that the Agency was paying the developer $30,000 for the Victorian structure; that there would be an estimated charge of $35,000 to move it, which would include the cost of cutting the house if it was necessary in the relocation process; and that one-third of the cost of the North Lacy Street property would be $70,000, thus bringing the total cost of relocating this structure to approximately $135,000. She added that staff did not anticipate recouping the entire cost of the project and pointed out that the relocation of this structure was being done in order to preserve one of the most outstanding examples of Victorian architecture in Santa Ana. After further discussion, it was moved by Agency Member Young, seconded by Agency Member Acosta and carried unanimously (7:0) 3 7 that the Agency authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute all appropriate documents for acquisition of the real property at 817-825 North Lacy Street from Ray S. Mendoza and Toni Mendoza for the appraised amount of $210,000.00. .. AB26S (CHAPTER 1135, COMPLIANCE FINDING STATUTES OF 1985) RESIDENTIAL SET-ASIDE It was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Redevelopment Agency adopt Resolution No. 86-49: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA MAKING CERTAIN FINDINGS PURSUANT TO SECTION 33334.2 OF THE COMMUNITY REDEVELOPMENT LAW. REMOVAL OF UNDERGROUND TANKS LOCATED ON THE A-9 AND A-14 SITES . The City Manager asked the Real Estate Manager to staff report to the Agency. The Real Estate Manager stated that one of the tanks to be removed was on the Fiesta Marketplace site and did not pose a contamination problem and the other was on the site for the proposed parking structure at Sth and French and did present a contamination problem. He added that there was a service station at the Sth and French site some years ago and that testing had shown petroleum pollution to a depth of approximately 20 feet, which would have to be removed before the parking garage could be constructed. make a brief In response to questions from Agency Member Acosta, the Real Estate Manager stated that the borings were done by the Agency's consultant and that those who had bid upon the job were aware of the report and their prices took this report into consideration. It was then moved by Vice Chairman Johnson, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency authorize payment to Pomona Valley Equipment Rentals for the removal of underground tanks located at 426 North French Street and 420 East Fourth Street, in the City of Santa Ana, California. DEVELOPER SELECTION - LA BONITA SITE . The City Manager asked Project Area Manager Patti Nunn to describe the selection process for the La Bonita site. The Project Manager stated that in March, 1986, the Agency mailed 150 Requests for Proposals (RFP's) for development of the surplus La Bonita park site, just south of Westminster Avenue, adding that the area immediately surrounding this site 4 q . . . was ethnically mixed with a median income above that of the city as a whole, with good freeway access and significant new in-fill housing and condominium developments. She pointed out that in the RFP had specifically asked for a well-designed project of high-quality, single-family homes developed at a density of approximately nine units to the acre, with a minimum of 45% of the site to be devoted to open space, adding that the specified price of the property was $18,000 per unit based on a reuse appraisal by Keyser Marston. She stated that ten proposals were received in response to the RFP and that they were distributed and reviewed by both Mid-Development and Development Teams. She stated that, following this review, eight developers were interviewed by the Development Team and ranked according to project design, developer qualifications, and proposal thoroughness in response to the RFP, adding that the top three proposals were rated as follows: l. 2. 3. Posilovich Enterprises (Average Score: KSE Development (Average Score: CTNC Associates (Average Score: 95) 85) 82) She pointed out that the Development Team's ranking reflects the view that the Posilovich proposal had a very good amenity package and a strong development team, and that the firm had sufficient financial capability to undertake the project. She stated that staff was asking the Agency to certify all three developers and grant a 90-day Exclusive Right to Negotiate to Posilovich Enterprises. She added that the reason for certifying all three developers was so that, in the event an agreement could not be reached with the top-ranked developer, staff could begin negotiating with the second and/or third-ranked developer without the time-consuming and expensive process of issuing another RFP. She stated that Mr. Dan Posilovich wished to make a presentation to the Council and that the other two developers were in the audience to answer any questions the Agency Members might have. Mr. Dan Posilovich stated that he and his staff wished to amplify upon the report given by staff. He then introduced Mr. Warren Lortie, his partner in Posilovich Enterprises, to make a slide presentation. Mr. Lortie stated that the purpose of the slide presentation was to demonstrate some of the projects that Posilovich Enterprises had constructed in the past. He then showed various apartment complexes constructed in Pasadena and a recent residential development in Buena Park. He added that they were presently working on a project in Arcadia. He then introduced Mr. Ken Paddock, architect, who gave a brief summary of his firm's credentials and experience in residential development and then reviewed the site plans and floor plans for the Posilovich proposal. 5 ~ . . . , , Agency Member McGuigan stated that, since the Planning Commission and the Redevelopment Commission had reviewed the proposals and had made different recommendations to the Agency, she would like to hear what the other developers had to say. Mr. Kirk Evans, of KSE Development, addressed the Agency and stated that, prior to submitting his proposal on the La Bonita site, he had met with homeowners in the surrounding area to determine what they wanted to see constructed on the La Bonita site and had found that they wanted a single-family development compatible with their own homes and asked that Kraft and Morningside Streets be closed off to discourage through traffic from Westminster Boulevard. He stated that he had done a study to determine what kind of housing would be acceptable to the area and what the median income for the area could afford. He then made a brief slide presentation showing the site plan and floor plan for the KSE Development proposal. Mr. Harry Tancredi, of CTNC Associates, was then invited to address the Agency. Mr. Tancredi cited his 35 years of experience in the residential construction field and then introduced his architect, Mr. Aram Bossenian, and asked him to discuss the design of the development CTNC Associates was proposing for the La Bonita site. Mr. Bossenian stated that his firm specialized in residential developments by choice and was involved in communities throughout California as well as in Arizona and Nevada. He then reviewed some of the activities of his firm in the past and stated that they were now working on a number of "small lot" projects similar to the one proposed for La Bonita, adding that approximately 50% of the "small lot" projects statewide were employing the "wide and shallow" concept that CTNC was proposing for the La Bonita site. He then made a slide presentation showing the site plan and floor plan for the CTNC Associates proposal for the La Bonita site, after which he turned the presentation back to Mr. Tancredi. Mr. Tancredi stated that he had offered $810,000 for the La Bonita site and stood ready to make immediate payment; the KSE proposal offered $800,000; and the Posilovich proposal offered $790,000. He added that he felt that if you did not meet the price, you should be out of the competition. He stated that the RFP had been very specific that this development was intended to upgrade the area and that he and his staff had worked hard to meet this requirement. He added that the RFP had also been very specific regarding the scheduling of this development and that he could have a tentative map ready for submission within ten days and could be on the site starting construction within six months. In response to Agency Member McGuigan's inquiry regarding the fact that the figure quoted for off-site improvements by CTNC 6 (0 '. . Associates was so much lower than the other developers, Mr. Tancredi stated that he felt it was probably due to the fact that he would not to have to buy soil, which would cost approximately $6 per yard, to comply with the requirements for raising the site to meet the flood plain standards, adding that he would be constructing an apartment complex in September which would require excavation thus providing adequate soil for the La Bonita site. In response to reservations expressed by Agency Member Acosta regarding the fact that there was a unit mix which included two-bedroom units in the KSE proposal, the Project Manager stated that the RFP did not specify a unit mix but left that up to the developer. Mr. Acosta stated further that he did not feel that the two-bedroom units would be marketable in the La Bonita area. In response to further questions from Agency Member Acosta regarding the amenities listed on the scoring sheet, the Project Manager stated that the amenities were taken from the proposals which the developers had initially submitted. Agency Member McGuigan stated that, in her opinion, all three proposals were very good and that the Agency was fortunate to have them. She then moved that the Redevelopment Agency: 1. Certify KSE Development, CTNC Associates and Posilovich Enterprises as developers for the La Bonita site; and . Grant KSE Development a gO-day Exclusive Right to Negotiate for the residential development of the La Bonita site. The motion was seconded by Vice Chairman Johnson. 2. Agency Members McGuigan, Johnson and Young all expressed the opinion that the width of the streets was a most important issue because it would prevent the overcrowding of parked cars, and that the use of stucco for the exteriors of the homes was preferable because of lower maintenance costs. They also approved of the KSE proposal because it called for the closure of Kraft and Morningside Streets, adding that they felt the KSE Development proposal had a more pleasing streetscape because the garage doors were not so prominent. . Agency Member Acosta stated that he disagreed with some of the comments and that, based on his experience with construction activities in the area of development, he felt that buyers did not look at the width of the street before considering the amenities afforded inside the home, adding that people were impressed by the square footage of the rooms. He pointed out that the question of square footage was most important in the valuation of the investment made in a home. Agency Member Luxembourger stated that motion because of the wider streets he would support the and the more attractive 7 lJ ," . , > . . . streetscape due to the less prominent garage doors. that he felt all three proposals were excellent. A roll call vote was then taken with the following results: added He AYES: NOES: Hart, Johnson, Luxembourger, McGuigan, and Young Acosta and Griset ABSENT: None It was then moved by Agency Member Young, seconded by Agency member McGuigan and carried unanimously (7:0) that the Redevelopment Agency staff be directed to work with the CTNC Associates and Posilovich Enterprises to explore the possibility of residential development on another site in Santa Ana. AGENCY AGENDA ITEMS It was moved by Agency Member Young, seconded by Agency Member Johnson and carried unanimously (7:0) that the settlement with Clara Clem be amended so that if Clara Clem can obtain a replacement property of the same value as the property that the Redevelopment Agency is acquiring from her, the Agency will attempt to acquire it and convey it to Clara Clem in exchange for her property. It was moved by Agency Member Young, seconded by Agency Member McGuigan and carried by a vote of 6:1 (Agency Member Johnson voting "NO") that the City Attorney be directed to meet with Alcala/Mitchell and their attorney and a member of the Redevelopment Staff to be sure that they understand each step of the procedures and that the City Attorney be authorized to enter into an agreement with Alcala/Mitchell purusant to the letter written August 14, 1986 by Robert J. Wheeler, Deputy City Attorney, to Thomas F. Nixon, Esq. re Alcala/Mitchell v. City of Santa Ana et al. ADJOURNMENT There being no further business to come before the meeting was adjourned at 8:27 P.M. ~:~, G,¡," H::~~- Agency, the 8 /;¿