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HomeMy WebLinkAbout07/15/1986 . . . MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL JULY 15, 1986 The Joint Regular Meeting of the Community Redevelopment Agency and the City Council was called to order by Chairman Griset at 5:45 P.M. in the Council Chambers, 22 Civic Center Drive, Santa Ana, California. Following the Pledge of Allegiance to the Flag, the roll was called: PRESENT ABSENT John Acosta John Coil Daniel E. Griset P. Lee Johnson R. E. Luxembourger Patricia McGuigan Dan Young Others in attendance: David N. Ream, City Manager Edward J. Cooper, City Attorney Jan Perkins, Deputy City Manager/Operations Rex Swanson, Deputy City Manager/Development Services Cynthia Nelson, Acting Executive Manager/Economic Development Robert Hoffman, Real Estate Manager Richard Dominguez, Manager/Operations and Finance Mellmary McNeely, Agency Secretary EXECUTIVE SESSION The Redevelopment Agency adjourned to Executive Session at 5:48 P.M. and returned at 5:53 P.M. with all members present. The Agency Secretary read the following statement: "THE COUNSEL REQUESTS THAT THE REDEVELOPMENT AGENCY RECESS TO SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 TO INSTRUCTION TO THE CITY'S NEGOTIATOR REGARDING NEGOTIATIONS CLARA CLEM CONCERNING THE PURCHASE OF THE PROPERTY LOCATED AT SOUTHWEST CORNER OF 5TH AND MAIN STREETS. MINUTES LEGAL CLOSED GIVE WITH THE Agency Member Luxembourger pointed out that there was a typographical error in the Minutes of May 5, 1986 in that he was listed as R. ~ Luxembourger instead of R. ~ Luxembourger. . . . It was then moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Minutes for the Meetings of the Community Redevelopment Agency, held May 5, 1986 and June 17, 1986, be approved as received. JOINT PUBLIC HEARING REGARDING AN AGREEMENT PROPERTY WITH ALLAN FAINBARG AND SARA FAINBARG REAL FOR SALE OF The Chairman 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 by the Community Redevelopment Agency of the City of Santa Ana to Allan and Sara Fainbarg. He stated that the property is located on the northeast corner of 17th and Bush Streets. He then asked that staff identify the property or issues and give the staff recommendation. The Real Estate Manager pointed out that, during the assemblage of the Auto Mall site, it had been necessary for the Agency to acquire several right-of-ways from the Santa Fe Railway Company, one of which was a railroad spur line which served an industrial parcel which was owned by Allan and Sara Fainbarg. He added that the parcel was located on the southwest corner of Ritchey and Wilshire Streets. He stated that Mr. Fainbarg had expressed an interest in exchanging the value of the severance damages to his Ritchey Street property for a piece of real property owned by the City of Santa Ana, located at the northeast corner of 17th and Bush Streets, which is adjacent to a property which he owns on the north and east. The Real Estate Manager stated that staff has determined that the value of the severance damages for the Fainbarg property and the fair market value of the City-owned parcel have an equal value of $54,000. He added that Allan and Sara Fainbarg have agreed to accept the City-owned parcel, in lieu of severance damages, and to hold the parcel at 17th and Bush as one parcel in connection with their adjacent property. In response to a query from the Chairman, the Agency Secretary stated that there were no written communications. The Chairman then stated that the Agency would like to hear from the public, adding that anyone wishing to speak should step to the podium, give their name and address and limit their remarks to five minutes. There being no one present who wished to speak for or against the proposed sale, the Chairman declared the public hearing closed and called for questions from the Agency Members. In response to a question from Agency Member McGuigan, the Real Estate Manager stated that there would not be any City-owned property acquired in this transaction since the Agency is using this method of paying the Fainbargs for the loss of a railway access. 2 r . . . In response to a request from the Chairman for a motion, it was moved by Vice Chairperson Johnson, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency adopt Resolution No. 86-40: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AGREEMENT FOR SALE OF REAL PROPERTY BETWEEN THE AGENCY, THE CITY OF SANTA ANA, AND ALLAN AND SARA FAINBARG. JOINT PUBLIC HEARING REGARDING DEVELOPMENT AGREEMENTS McKEE, WILLIAM VAN DEN HURK AND SANTA ANA DATSUN, INC. WITH JOHN The Chairman 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 amendment to the Lease, Option and Development Agreement between the Community Redevelopment Agency of the City of Santa Ana and John McKee and the proposed Disposition and Development Agreements between the Community Redevelopment Agency and William Van Den Hurk and Santa Ana Datsun, Inc. He stated that the project is bounded on the north by Santa Fe Railroad, on the south by Edinger Avenue, on the east by the Costa Mesa Freeway, and on the west by Ritchey Street. He then asked that staff identify the property or issues and give the staff recommendation. The Acting Executive Director/Economic Development stated that agreements were being presented for the Agency's consideration: four 1) An amendment to the Agreement with John McKee (Subaru) which provides for the assignment by Thomas P. Lando1f, the original signator, of his interest to John McKee who is the actual dealer. The Parcel number and location have been revised from a 2.5 acre site (Parcel 3) to a 3.2 acre site (Parcel 6), which results in an increase in the purchase price for the site. Disposition and Development Agreement with William Van Den Hurk (Parcel 7) for the construction of a new Mazda facility. The terms of the agreement reflect an installment purchase with a downpayment of $200,000 and the remaining balance to be paid within 10 years at 10% interest. 2) 3) Disposition and Development Agreement with William Van Den Hurk (Parcel 3) for the construction of a new Suzuki dealership. The purchase price will be paid on an installment basis with a $200,000 downpayment and the remaining balance to be paid within 10 years at 10% interest. 4) Disposition and Development Agreement with Santa Ana Datsun which provides for a change in parcel location, which will result in an increased purchase price. The purchase terms include a $20,000 downpayment with quarterly installment payments until the balance is due at the opening of business or July 1, 1987, whichever is earliest. 3 . The Acting Executive Director/Economic Development stated that the Mazda dealer would be the first to break ground, adding the other dealerships: Suzuki, Chrysler, Volkswagen and Isuzu would follow with Datsun breaking ground later in the year. Chairman Griset stated that, since Santa Ana Datsun was a part of this public hearing, he had a conflict of interest. He then asked Vice Chairman Johnson to assume the Chair and left the Council Chambers at 6:03 P.M. and returned at 6:15 P.M. In response to questions from Agency Member Luxembourger, the City Manager stated that the dealers were contractually bound to perform and, should they not be able to fulfill their commitments, the Agency would negotiate with their lenders to resolve the situation. He added that he felt there would not be a problem since the Agency had been working with these dealers for two years and all of them now were obligated to move from their present locations to the Auto Mall. In response to further questions from Agency Member Luxembourger, the City Manager stated that the configuration of the Auto Mall had been worked out as a cooperative effort between the Agency's consultant and architect and the dealers and their architects. He added that, in his opinion, within a year or two, the Auto Mall would have to be expanded. . After further discussion, it was moved by seconded by Agency Member Acosta and carried Chairman Griset abstaining) that the Agency: Agency Member Young, unanimously (6:0 Adopt Resolution No. 86-42: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE ASSIGNMENT OF A LEASE OPTION AND DEVELOPMENT AGREEMENT FROM THOMAS M. LANDOLF TO JOHN McKEE AND APPROVING AN AMENDMENT OF SAID AGREEMENT (PARCEL 6). Adopt Resolution No. 86-43: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT (PARCEL 3) BETWEEN THE AGENCY AND WILLIAM VAN DEN HURK. Adopt Resolution No. 86-44: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT (PARCEL 7) BETWEEN THE AGENCY AND WILLIAM VAN DEN HURK. . Adopt Resolution No. 86-45: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT (PARCELS 1 AND 2) BETWEEN THE AGENCY AND SANTA ANA DATSUN, INC. 4 JOINT PUBLIC HEARING - DOCUMENTATION AND CONTRACTS FOR CERTIFICATES OF PARTICIPATION TO FINANCE DOWNTOWN PARKING FACILITIES . 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 lease of properties by the Community Redevelopment Agency of the City of Santa Ana to the City of Santa Ana, adding that the properties are located at: 1) Southeast and southwest corners of 5th and Spurgeon 2) Southwest corner of 5th and Main 3) Northwest corner of 3rd and Spurgeon 4) Northwest corner of 3rd and Birch The Chairman then asked that staff identify issues and give the staff recommendations. the properties and The Manager of Operations and Finance pointed out that the Agency Members had been given maps showing the locations of the sites and the footprints of the four parking facilities. He added that the size and locations of the proposed parking facilities were: . 750 space parking structure at 5th and French 479 space parking structure at 5th and Main 370 space parking structure at 3rd and Birch 150 space surface parking lot at Cor day Hotel Site The Manager of Operations and Finance added that the financing vehicle selected to fund the facilities is Certificates of Participation which involves a lease-purchase arrangement between the Redevelopment Agency and the City of Santa Ana and that the City, as Lessee, must approve by resolution all of the same documents that are approved by the Agency. He added that the financing for these parking facilities would be a bond issue in the $13 to $13.5 million range at a fixed-rate of interest with a 30-year term. He stated that if the bonds were marketed today they would bear a 7 3/4% interest rate and, since it was hoped that they could be marketed by July 22, 1986, they would probably bear an interest rate in that range. . In response to a query from the Chairman, the Agency Secretary affirmed that there were no written communications. The Chairman then asked any member of the public wishing to be heard on this issue to step forward and give their name and address and limit their comments to five minutes. 5 . . . Joe Gilmaker, of 307 West Third Street, addressed the Agency and stated that, as a downtown businessman, he had been a part of the assessment district that had been formed for the construction of the Downtown Parking Garage in 1980. He added that he was not opposed to the building of additional parking facilities in the downtown but that he felt it would only be fair to relieve those businessmen indebted to the assessment district if these proposed new structures were to be built at no cost to the business community. Phil Charlton, of 225 North Broadway, addressed the Agency and stated that he agreed completely with Mr. Gilmaker and asked that the downtown business community be given relief from the existing assessment district. respond the The Chairman requested that the City Manager questions raised by Mr. Gilmaker and Mr. Charlton. The City Manager stated that staff agreed with Mr. Gilmaker and Mr. Charlton that the situation must be equitable and added that a staff report was being developed to try to ensure an equitable solution to the downtown parking problem. He stated that there is a possibility that the downtown parking structure, built in 1980, could be refinanced and the assessment district abandoned, adding that he expected to be able to make a full report to the Agency within sixty days. He stated that he would be happy to meet with Mr. Gilmaker and Mr. Charlton to review the progress staff is making on this problem. to called for The Chairman then declared the public hearing closed and questions from the Agency Members. In response to questions by Agency Member McGuigan regarding the' possibility of the Cor day Hotel being razed, the City Manager stated that staff had discussed the possibility of the Cor day Hotel being used as the Orange County Children's Museum or as a part of the Fiesta Marketplace. He added that staff would certainly recommend reuse of the hotel if it were feasible but, in the event that nothing could be negotiated, it would be demolished. In response to further questions from Agency Member McGuigan, the City Manager affirmed that this bond issue would be confined to those locations indicated and that there was no transferability. He added that, if it were determined that a structure instead of surface parking was to be placed at 3rd and Spurgeon Streets, it would be necessary to structure another bond issue to cover this cost. In response to the Chairman's call for a motion, it was moved by Agency Member Acosta, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Redevelopment Agency: 6 1) Adopt Resolution No. 86-46: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING LEASE-PURCHASE, TRUST, ASSIGNMENT AND LOAN AGREEMENTS, PRELIMINARY AND FINAL OFFICIAL STATEMENTS AND CONTRACT OF PURCHASE PERTAINING TO THE SANTA ANA DOWNTOWN PARKING FACILITIES PROJECT, AND AUTHORIZING EXECUTION THEREOF. . 2) Approve an agreement with Rutan & Tucker as Bond Counsel Rausher Pierce Refsnes, Inc. as Financial Advisor on subject issue and authorize the execution thereof. and the PUBLIC HEARING TO ADOPT RESOLUTION NO. 86-39 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE A-2 DEVELOPMENT SITE (307-309 WEST FOURTH STREET) . The Chairman announced 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 as Assessor Parcel Number, as Book 398, Page and Block 255, Parcel 21, for redevelopment purposes. He asked that staff identify the property and the project and comment on the factors and evidence necessitating the condemnation action. He asked 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 stated that he wished to incorporate the staff memorandum on pages 54 and 55 as a part of his report. He stated that this property is one of the last sites to be acquired for the development of the A-2 site and that it is owned by Judy M. Roelofs and is occupied by the Arrow Tux Rental Corporation. He pointed out that, for the business to continue in this building, it would be necessary to rehabilitate the building so that it would conform to the requirements of the seismic ordinance, adding that, in his opinion, this would be an imprudent investment since the building is to be condemned as a part of the A-2 site. The Real Estate Manager stated that staff was negotiating with the owner of the property and felt that a settlement could be reached as soon as the appraisal of their trade fixtures is complete. In response to a query from the Chairman, the Agency Secretary affirmed that there were no written communications. . There was no response when the Chairman called for those members of the public who wished to agree or disagree with this action to address the Agency. He then declared the public hearing closed and called for a motion. 7 . . . It was moved by Vice Chairman Johnson, seconded by Chairman Griset and carried unanimously (7:0) that the Agency adopt Resolution No. 86-39: 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-2 DEVELOPMENT SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. (307-309 WEST FOURTH STREET) PUBLIC HEARING TO ADOPT RESOLUTION NO. 86-41 DIRECTING CONDEMNATION OF PROPERTY WITHIN THE FIFTH AND MAIN PARKING STRUCTURE SITE (A.P. NO. 398-258-12) The Chairman announced 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 258, Parcel 12, for redevelopment purposes. He asked staff to identify the property and the project and to comment on the factors and evidence necessitating the condemnation action. He 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 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 stated that he wished to incorporate the staff memorandum on pages 67 and 68 as a part of his report. He pointed out that the subject property is owned by Mrs. Clara E. Clem and that a settlement at the appraised value of the property had been reached but that staff wished to proceed with the Resolution of Necessity in the event that any difficulty is encountered in closing the escrow for the property. In response a query from the Chairman, the Agency responded that there were no written communications. Secretary The Chairman then stated that the Agency would like to hear from those people who desired to speak in agreement or disagreement with the subject condemnation action. There being no one who wished to address the Agency, the Chairman declared the public hearing closed. When he asked if the Agency Members had any further questions or comments, there was no response. He then called for a motion. It was moved by Agency Member Acosta, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency adopt Resolution No. 86-41: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT 8 . . . AGENCY OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE CONDEMNATION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES IN THE FIFTH AND MAIN PARKING STRUCTURE SITE IN THE CITY OF SANTA ANA, STATE OF CALIFORNIA, AND DECLARING THE PUBLIC NECESSITY THEREFOR. (A.P. NO. 398-258-12) It was moved by Agency Member Luxembourger, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency authorize the Chairman to execute all necessary documents for purchase of real property at the southwest corner of Fifth and Main Streets, Santa Ana, Assessor Parcel No. 398-258-23, from Clara E. Clem for the appraised value of $372,200, with the purchase price to be due and payable upon demand of seller for a period of ten years, and to accrue interest at the rate of 10% per year simple interest, said interest due and payable in monthly installments. TERMINATION OF CONTRACT FOR SALE FOR PRIVATE REDEVELOPMENT OWNER PARTICIPATION; ASSESSOR PARCEL NUMBER 398-267-03 BUILDING) AND FOR (SANTORA In response to a question from Agency Member McGuigan, the City Manager stated that the Santora Building was foreclosed upon by the beneficiary, Consolidated Capital Special Trust, under a Deed of Trust. He added that the present owner is now in escrow to sell the property and has requested that the terms and conditions of the existing contract between the Agency and Henry Stotsenberg be removed. He stated that staff was recommending this action to facilitate the eventual rehabilitation of the Santora Building. It was moved by Agency Member Acosta, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute a Quitclaim Deed from the Community Redevelopment Agency of the City of Santa Ana to Consolidated Capital Special Trust relinquishing all rights, title and interest in and to Assessor Parcel No. 398-267-03. SALE OF CITY-OWNED LAND TO THE COMMUNITY REDEVELOPMENT AGENCY It was moved by Agency Member McGuigan, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency authorize the Chairman of the Redevelopment Agency to execute all necessary documents for purchase of certain real property identified as A. P. Nos. 398-327-01, 07 and 08 and A.P. Nos 398-261-20 and 24, from the City of Santa Ana. LEASE AGREEMENT FOR OFFICE SPACE FOR WORLD TRADE OF ORANGE COUNTY CENTER ASSOCIATION In response to questions from Agency Member McGuigan, the City Manager stated that the World Trade Center had been headquartered in the Hutton Centre since its inception and had been an asset in establishing the City of Santa Ana as the international trade 9 . . . center of the County and assisting with the formation of the Foreign Trade Zone. He added that staff would like to see the World Trade Center headquartered in the City of Santa Ana to afford them the opportunity to get their program going in the next year. He stated that, if they did not receive assistance, they would have to go out of business or approach the Irvine Company. After further discussion, it was moved by Agency Member Hart, seconded by Agency Member Luxembourger and carried by a vote of 6:1 (Agency Member Acosta voting "No") that the Redevelopment Agency: 1 ) Authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute a lease agreement for office space at 600 West Santa Ana Boulevard; and Authorize the sublease of said office space to the World Trade Center Association of Orange County for a period of one year on a rent-free basis, and for a second year, based upon the Association's financial ability to pay rent. 2) ACQUISITION OF PROPERTY NORTH OWENS DRIVE) WITHIN THE REDEVELOPMENT PROJECT AREA (203 It was moved by Agency Member McGuigan, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute all appropriate documents and deeds for acquisition of the real property at 203 East Owens Drive from Marjorie F. Struck. PUBLIC IMPROVEMENT DEVELOPMENT REIMBURSEMENT AGREEMENT FOR A-3 PARK TOWER After a brief discussion regarding the necessity for such a reimbursement to a developer, it was moved by Agency Member Luxembourger, seconded by Agency Member Hart and carried unanimously (7:0) that the Agency approve and authorize the Chairman to execute a Reimbursement Agreement between C.M. Plaza American Diversified Capital Corporation and the Community Redevelopment Agency for an amount not to exceed $50,000 for the cost of higher standards of public improvements required by the Agency. AGREEMENTS FOR ARCHITECTURAL DESIGN SERVICES FOR PARKING STRUCTURES AT THE NORTHWEST CORNER OF THIRD AND BIRCH STREETS AND THE SOUTHWEST CORNER OF FIFTH AND MAIN STREETS It was moved by Vice Chairman Johnson, Luxembourger and carried unanimously Agency: seconded by Agency Member (7:0) that the Redevelopment 10 . . . 1) Authorize staff to prepare an agreement for the signature for architectural design services for structure at the northwest corner of Third Street Street with the firm of Parsons, Brinkerhoff, Douglas, Incorporated in the amount of $75,000. Chairman's a parking and Birch Quade, and 2) Authorize staff to prepare an agreement for the Chairman's signature for architectural design services for a parking structure at the southwest corner of Fifth Street and Main Street with the firm of International Parking Design, Incorporated in the amount of $62,700. AGENCY AGENDA ITEMS - APPROVAL OF SECURITY ASSIGNMENT HOUSING PROJECT RIVERVIEW FOR The City Manager pointed out that that Riverview Community Partnership was requesting that the Agency approve the proposed assignment of their Owner Participation Agreement to California First Bank for security purposes. He added that Riverview Community Partnership would still be responsible for carrying out the obligations of their agreement but that the lender felt that, in the event of default by Riverview, they should have the ability to complete the project. It was then moved by Vice Chairman Johnson, seconded by Agency Member McGuigan and carried unanimously (7:0) that the Agency adopt Resolution No. 86-48: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA CONSENTING TO THE ASSIGNMENT, FOR SECURITY PURPOSES, OF AN OWNER PARTICIPATION AGREEMENT FROM RIVERVIEW COMMUNITY PARTNERSHIP TO CALIFORNIA FIRST BANK. ADJOURNMENT There being no further business to come before the Agency, the meeting was adjourned at 6:53 P.M. D.n~ .,he< .~ Chairman Executive Director 11