Loading...
HomeMy WebLinkAbout05/20/1986 . . . . . MINUTES REGULAR MEETI NG COMMUNITY REDEVELOPMENT AGENCY/DOWNTOWN DEVELOPMENT COMMISSION MAY 20, 1986 The Regular Meeting of the Community Redevelopment Agency/Downtown Development Commission was called to order by Chairman Griset at 5:45 P.M. in the Council Chambers, 22 Civic Center Plaza, Santa Ana, CA. Following the Pledge of Allegiance to the Flag, the Invocation was given by Chairman Griset. The roll was then called: PRESENT ABSENT John Acosta Daniel E. Griset, Chairman Wilson Hart P. Lee Johnson, Vice Chairman Patricia McGuigan Dan Young R. W. Luxembourger Others in attendance: Robert C. Bobb, City Manager Edward J. Cooper, City Attorney Rex Swanson, Deputy City Manager/Development David N. Ream, Executive Director/Economic Development Cynthia Nelson, Redevelopment Officer Robert Hoffman, Real Estate Manager Roger Kooi, Downtown Development Commission Director Janet Grane Evans, DDC Stenographic Clerk I MINUTES It was moved by Agency Member Hart, seconded by Agency Member McGuigan and carried unanimously (6:0) that the minutes of the April 15, 1986 Regular Joint Meeting and of the April 21, 1986 Adjourned Regular Meeting of the Community Redevelopment Agency/Downtown Development Commission be approved as received. . . . . . JOINT PUBLIC HEARING REGARDING AMENDMENT TO LEASE OPTION AND DEVELOPMENT AGREEMENT WITH COMMONWEALTH WOLKSWAGEN Chairman Griset called to order the joint meeting of the Agency and the City Council and announced that it was the time and place for the Joint Public Hearing on the proposed amendment to the Lease, Option and Development Agreement between the Community Redevelopment Agency and Commonwealth Volkswagen, Inc. Mayor Griset called upon staff to identify the property or issues and to give staff recommendation. Cindy Nelson, Agency Redevelopment Officer, identified the property as 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. Ms. Nelson reported that the Agency entered into this Agreement in December, 1984 and that since that time the project schedule has changed and the size of the dealer parcels. The Agency is being asked to amend the purchase price of the original Agreement from $5 per square foot to $4 per square foot in accordance with provisions of the Agreement. Ms. Nelson explained that the original auto dealerships had been given the lower land price as an inducement to locate in the center. The Volkswagen dealer, Carl Meyer, was advised he may become eligible for the lower price in the event one of the five original dealerships (Pontiac) withdrew from the project. Ms. Nelson reported that one of the five had, indeed, withdrawn. She went on to report that Commonwealth Volkswagen has obtained its foundation permit, and avoided payment of the Transportation Corridor fee, has applied for an SBA loan, and anticipates breaking ground in June. After receiving neither written nor oral public comment, and pursuant to an absence of Agency/Council questions, Mayor Griset declared the Joint Public Hearing closed. It was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson and carried unanimously (6:0) that the Agency adopt Resolution No. 86-17: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO THE AGREEMENT BETWEEN THE AGENCY AND COMMONWEALTH VOLKSWAGEN, INC. 2. I . . . It was moved by Councilperson McGuigan, seconded by Vice Mayor Johnson and carried unanimously (6:0) that City Council adopt Resolution No. 86-44: 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 AMENDMENT TO THE LEASE, OPTION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA COMMONWEALTH VOLKSWAGEN, INC. FOR THE LEASE AND/OR SALE OF CERTAIN REAL PROPERTY IN THE SOUTH MAIN STREET REDEVELOPMENT PROJECT AND APPROVING THE LEASE AND/OR SALE OF SAID REAL PROPERTY UPON THE TERMS AND CONDITIONS CONTAINED IN THAT AGREEMENT. PUBLIC HEARING TO ADOPT RESOLUTION 86-23 DIRECTING OF PROPERTY WITHIN THE A-8 REDEVELOPMENT SITE STREET, ASSESSOR PARCEL NOS. 398-505-87, 08 & 09) CONDEMNATION lEAST FOURTH Chairman Griset announced that it was the time and place for the Public Hearing on the issue of the public necessity to acquire by condemnation properties identified by Assessor Parcel Numbers as Book 398, Page and Block 505, Parcels 07, 08, and 09 for redevelopment purposes. Chairman Griset called upon staff to identify the properties and the project and to comment on the factors and evidence necessitating the condemnation action. He further 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 properties sought to be acquired are necessary for the project; and, whether or not the offers as required by Section 7267.2 of the government code have been made to the owners of record, or any offer has not been made because the owners cannot be located with reasonable diligence. Robert Hoffman, Agency Real Estate Manager, explained that, since the property owner had not exercised the right to be present and to be heard, the Agency was no longer required to continue the Public Hearing. Mr. Hoffman stated, however, that this would be a good point at which to present a status report and that the Agency had received a letter from the property owner's attorney. Mr. Hoffman reported that the letter, dated 3. . . . April 23rd, states that the property owner does not choose to proceed with his Owner Participation Agreement for the A-8 development and is willing to agree to the acquisition of his property through a friendly condemnation provided he can continue to occupy the premises until August 1 of this year. Mr. Hoffman relayed that the purchase price of the property is still being negotiated and that the property owner is having an independent appraisal performed. Mr. Hoffman concluded by requesting that acceptance and receipt of his oral status report be incorporated into the records for condemnation proceeding purposes. Vice Chairman Johnson asked what the impact of the proposed action would be on the Chico and Balboa Clubs and whether this would close down part of the "dirty dozen". Dave Ream, Executive Director/Economic Development, responded that these businesses would indeed be affected. Mr. Hoffman explained that these businesses would ordinarily be entitled to a ninety day right to continue operating, which would allow them to remain open beyond August 1, which is the date the property owner has agreed to close his business. Chairman Griset declared the Public Hearing closed. It was moved by Vice Chairman Johnson, seconded by Chairman Griset, and carried unanimously (6:0) that the Agency adopt Resolution No. 86-23: 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 (316, 318 AND 320 EAST FOURTH STREET). EXTENSION OF MANAGEMENT DISTRICT PARK AND RIDE AGREEMENT ORANGE TRANSIT COUNTY Following brief discussion, it was moved by Vice Chairman Johnson, seconded by Agency Member Acosta, and carried unanimously (6:0) that the Agency approve a second amendment to the Management Agreement between the Agency and System Parking, Inc. for the O.C.T.D. Park and Ride Facility extending the agreement through December 31, 1986. UNDERWRITER SELECTION FOR DOWNTOWN PARKING STRUCTURES FINANCING Agency Member McGuigan questioned the selection of the second 4. . . . least expensive bid rather than the least expensive, and added that discussions with staff had provided her with the rationale and reasoning, but that she would still feel better about approving the most economical proposal. Agency Member Young inquired of City Manager Robert Bobb regarding any requirement to involve the proposed underwriter. Mr. Bobb responded that, although the City is under no obligation, this is an opportunity to avail itself of the services of a well qualified minority firm. Agency Member Young introduced the possibility of a co-manager arrangement, whereby the cost would not increase while special expertise may be gained, such as the specialization in Certificates of Participation. Mr. Bobb asserted that he would recommend such an arrangement. In response to Agency Member McGuigan's question, Mr. Bobb stated that the industry standard for co-management such as proposed is a 40:60 financial allocation between the firms involved. It was moved by Agency Member McGuigan, seconded by Agency Member Young, and carried unanimously that the Agency authorize staff to establish a co-underwriter relationship with Shears on-Lehman as the lead and with Grigsby, Brandford and Co., Inc. for the Downtown parking structure financing. FUND TRANSFER FOR THE SCHOOL SITE ACQUISITION It was moved by Vice Chairman Johnson, seconded by Agency Member Acosta, and carried unanimously (6:0) to approve repayment of $500,000 from the South Harbor Project Area to the General Fund for the purpose of providing funds for the School Site Acquisition Project. ADOPTION OF AGENCY POLICY ON PAYMENT OF PRIVATE REDEVELOPERS OR OWNER-PARTICIPANTS PREVAILING BY WAGES Chairman Griset referred to a memorandum entitled, "Redevelopment Agency Projects in the Pipeline" and asserted that the projects and developments identified therein would be exempted from such a policy. Pursuant to review of the listing, Chairman Griset requested the withdrawal of the C-8 site from "grandfather" status. Agency Member Acosta inquired about the criterion for inclusion in the memorandum, suggesting that staff had included everything even in a negotiation phase. 5 . . . . . . Agency Member Hart asked about the Santa Fe site, and Mr. Ream replied that the Agency is negotiating a DDA with McDonnell Douglas and affirmed that a new developer for the site would not be exempt from the policy. Agency Member Young asked about the Howard Johnson project, and Mr. Ream reported that the property owners are considering a conference center and are working on rehabilitation plans for the building. At Vice Chairman Johnson's suggestion, it was agreed to delete Centennial Park from the listing and to waive exemption from the policy. Treesweet was also removed from exemption, at Chairman Griset's suggestion. Chairman Griset also inquired of the Arne1 Development on East Fourth Street. Mr. Ream responded that various actions have been and are being taken by the Planning Commission and City Council regarding this project. It was agreed that the list of "grandfather"/pipeline projects shall be left open to review and that specific exemptions or nonexempt projects may again be brought up for discussion and action. Agency Member Acosta questioned the infi1l housing potential listed for 1018 Logan inasmuch as a residence already sits on the site. Mr. Ream explained that the status referred only to locations which had been tentatively identified by community groups working with Sandi Daniels. Agency Member Acosta suggested perhaps that a simple error had been made since the residence to the north has been condemned and may indeed be potential infi11 housing. Agency Member Young asked if future Requests for Proposals will include information advising of this new policy, and concurrence was achieved. It was decided that the final proposed list would be reviewed by the Agency at their next regular meeting. It was moved by Vice Chairman Johnson, seconded by Agency Member Acosta, and carried unanimously that the Agency adopt a policy on payment of prevailing wages by private redevelopers or owner-participants and their subcontractors; to reduce dollar guideline from $500,000 to $250,000 effective July 1, 1986; and authorize staff to budget for a contracts Administrator position to administer the enforcement provisions of the policy. CLOSED SESSION At 6:15 p.m., those assembled adjourned to Room 147 pursuant to the Request of Legal Counsel that the Redevelopment Agency recess to 6. F.. . closed session, pursuant to Government Code Sec. 54956.9(A) -to confer with its Attorney regarding pending litigation which has been initiated formally, and to which the Redevelopment Agency is a party. The title of the litigation is Community Redevelopment Agency vs. Estate of Reynolds. The Agency members reconvened in Council Chambers at 6:25 p.m. with those present prior to closed session again present. Edward J. Cooper, City Attorney, reported a pending settlement in the amount of $83,000. Agency Member Acosta moved to accept this disposition, seconded by Agency Member Young and receiving unanimous approval (6:0). ADJOURNMENT There being no further business to corne before the Agency, the ::~.~r::~~ur""d ., ,,25 P.~~~ Chairman Executive Director . . 7.