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HomeMy WebLinkAbout02/18/1986 , , . . ~ . . . . tJÝL MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/DOWNTOWN DEVELOPMENT COMMISSION FEBRUARY 18, 1986 The Joint Regular Meeting of the Community Redevelopment Agency/Downtown Development Commission was called to order at 9:15 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 Agency Member McGuigan. The roll was then called: PRESENT ABSENT John Acosta Daniel Griset, Chairman Wilson Hart P. Lee Johnson, Vice Chairman R. E. Luxembourger Patricia McGuigan Dan Young Others in attendance: Robert C. Bobb, City Manager Edward J. Cooper, City Attorney David N. Ream, Executive Director/Economic Development Robert Hoffman, Real Estate Manager Sandi Daniels, Project Manager Ed Henning, Ass't. Director/Downtown Development Commission Mellmary McNeely, Agency Secretary MINUTES The Minutes of the Joint Regular Meeting of the Community Redevelopment Agency and the City Council of December 17, 1985 were approved by a vote of 4:0 (Agency Members Griset, McGuigan and Young abstained). JOINT PUBLIC HEARING REGARDING OWNER PARTICIPATION AGREEMENT WITH RIVERVIEW COMMUNITY PARTNERSHIP FOR DEVELOPMENT OF A RESIDENTIAL PROJECT 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 by the Community Redevelopment Agency of the City of Santa Ana to Riverview Community Partnership. He pointed out that the property is generally located between the Santa Ana River, First, Fifth and Susan Streets. " .' . . . . , The Executive Director/Economic Development introduced the Project Manager, Ms. Sandi Daniels, and asked her to make a brief staff presentation on the proposed development. The Project Manager stated that, on March 19, 1985, the Redevelopment Agency granted Riverview Community Partnership an exclusive right to negotiate for development of an 18.2 acre site adjacent to the Santa Ana River, between First, Fifth and Susan Streets, with a residential project. She added that the Riverview Community Partnership is in escrow for approximately 16.1 of the 18.2 acres required for the project and is requesting that the Agency assist in assembling the remaining properties. She pointed out that the developer is proposing to construct a $17 million project consisting of 220 apartments and 60 single-family detached homes and that the construction is scheduled to begin in spring, 1986 with completion to be within two years thereafter. She added that the developer will advance all costs to the Agency and that the Agency will write down $1.2 million which will be repaid within three years from the completion of the project. She stated that staff was recommending approval of this Owner Participation Agreement between the Agency and Riverview Community Partnership in that it will set quality standards for the community and provide both rental and homeowner opportunities to members of the community. She then introduced Mr. Fred Armstrong of Ridgeway Development, one of the partners of the Riverview Community Partnership. Mr. Armstrong thanked the Agency for the opportunity to appear before it. He pointed out that Ridgeway Development had an aggregate of 75 to 80 years of experience in the type of development that was being proposed for the Riverview site. He added that the single-family detached housing will range in size from 1,100 to 1,200 square feet. He pointed out that both the single-family and the apartment developments would have security gates. He then made a comprehensive slide presentation, showing the existing development on the site and site plans for the proposed development. The Chairman then announced that the Agency would like to hear from the public, asking them to step forward to the podium, give their name and address, and limit comments to five minutes. The following people Riverview development: Al Sutherland, 695 Town Center Drive, Costa Mesa Bill Vetter, 3026 Fifth Street, Santa Ana spoke in opposition the proposed to 2. . . . . , In response to questions from Agency Member Luxembourger, the Project Manager stated that the Riverview Partnership's engineering staff was seeing to it that the project conformed to all of the Flood Plane requirements and that the lift on the site would be approximately three feet. In response to further questions from Agency Member Luxembourger, Mr. Armstrong stated that there would be a homeowners association for the owners of the single-family residences and that it would be in conformance with the guidelines provided by the State Department of Real Estate. Mr. Armstrong pointed out that the developer would only be responsible for the maintenance of the streets and the entrances to the development. Agency Member McGuigan stated that she felt that this development would be an asset to the community and thanked the staff for all their work in bringing this proposal to the Agency. In response to the Chairman's call for a motion of the Community Redevelopment Agency regarding the proposed sale, it was moved by Agency Member McGuigan, seconded by Agency Member Luxembourger and carried unanimously (7:0) that the Agency: 1. Adopt Resolution No. 85-52: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING AN OWNER PARTICIPATION AGREEMENT BETWEEN THE AGENCY AND RIVERVIEW COMMUNITY PARTNERSHIP, AND 2. approve the conceptual Community Partnership, and proposed by Riverview plans 3. approve the project budget and authorize by the Redevelopment Commission its implementation PUBLIC HEARING REGARDING AMENDMENT TO DISPOSITION DEVELOPMENT AGREEMENT FOR DOWNTOWN FIESTA MARKETPLACE (A-8) AND The Chairman announced that it was the time and place for the public hearing of the Community Redevelopment Agency for a proposed amendment to the A-8 Disposition and Development Agreement between the Community Redevelopment Agency of the City of Santa Ana and Fiesta Marketplace Partners which was originally approved by the Agency on August 20, 1985. 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. He then asked staff to identify the property and to give the staff recommendation. 3. . . . The Executive Director/Economic Development asked the Assistant Director of the Downtown Development Commission to make the staff presentation on this item. The Assistant Director pointed out that, in conjunction with the $698,000 Urban Development Action Grant (UDAG) offer to the City and the Fiesta Marketplace Partners for the A-8 site project, HUD is requiring that modifications be made to the land sale purchase price in order to keep the project competitively ranked relative to HUD financial review criteria and internal policies. He stated that the original A-8 residual land value established by the Agency's economist and agreed to by the Fiesta Marketplace Partners, was $398,640. He added that, based on HUD's review of the project's overall financial data, they determined that the site should be sold to the developer for One Dollar but that, in order to assist the Agency with the high cost of developing public parking adjacent to the A-8 site, HUD also determined that the developer should pay the Agency $300,000 as an in-lieu parking fee. He pointed out that these changes would still leave the Agency with a $98,639 shortfall from the original $398,640 land sale amount and that, as a result, the developer has agreed to reimburse the Agency $98,639 for financial consultant contract expenses incurred by the Agency on behalf of the developer which would not normally be recovered, thus resulting in a total compensation to the Agency equivalent to the original land sale value of $398,640. He pointed out that, in order to provide for these changes, it is necessary that an amendment to the original development agreement be approved by the Agency. There was no response when the Chairman asked public if they wished to address the Agency. members of the He then motion. declared the public hearing closed and called for a It was moved Member Young approve the Development regarding the Agency. by Agency Member McGuigan, seconded by Agency and carried unanimously (7:0) that the Agency proposed Amendment to the Disposition and Agreement with Fiesta Marketplace Partners land sale compensation to be received by the JOINT PUBLIC HEARING REGARDING SALE OF CITY-OWNED CONJUNCTION WITH THE A-lO URBATEC DEVELOPMENT LAND IN The Chairman announced that it was the time and place for the Joint Public Hearing of the Community Redevelopment Agency and the City Council for the proposed sales of property in conjunction with assemblage of the A-lO site by the Community 4. . . . " Redevelopment Agency. He pointed out that the site is bounded on the north by Third Street, on the south by First Street, on the west by Spurgeon Street and on the east by a line approximately 450 feet east of French Street. The Real Estate Manager stated that, in order to complete assemblage of the A-lO site, it would be necessary that certain City-owned property within the site be conveyed to the Redevelopment Agency, and that other City-owned property on First Street be made available as a relocation site for Westech Automotive, as a business being displaced from the A-lO site. He pointed out that a settlement agreement resolving the legal issues relating to the displacement of Westech Automotive Automotive, has been executed by Charles W. Berto, Estelle B. Berto and Dean C. Berto and by the proprietor of Westech Automotive. He added that it is now necessary that the City Council authorize sale of the required real estate to the Agency and to Westech, and that the City Council and the Redevelopment Agency approve this settlement agreement. There was no response when the Chairman invited members of the public to address the Agency regarding this proposed sale. The Chairman then declared the public hearing closed for a motion. and called It was moved by Agency Member Member Luxembourger and carried Agency: McGuigan, seconded by Agency unanimously (7:0) that the 1. approve that certain settlement agreement between the City of Santa Ana, the Community Redevelopment Agency of the City of Santa Ana and Charles W. Berto, Estelle B. Berto and Dean C. Berto; and 2. authorize the Chairman of the Redevelopment Agency to execute all necessary documents for purchase of certain real property identified as portions of A. P. Nos. 398-515-08 and 09 together with A.P. Nos. 398-526-08, 09 and 10, from the City of Santa Ana. DEMOLITION SITE OF IMPROVEMENTS LOCATED ON THE A-9 SITE AND THE A-IO In response to questions from Agency Member McGuigan, the Executive Director/Economic Development stated that the demolition of improvements located on the A-IO site would be accomplished shortly and that the fee of $20,000 would be paid out immediately thereon. He added that the demolition of improvements located on the A-9 site is contingent upon 5. . . . '. resolution of pending litigation involving the A-9 site and that the fee of $69,500 would not be paid out until this demolition was accomplished. It was then moved by Vice Chairman Johnson, seconded by Agency Member Young and carried unanimously (7:0) that the Agency authorize the Executive Director of the Redevelopment Agency to issue two purchase orders totaling $89,500.00, to Hintz Wrecking Company, of which $20,000.00 is for the demolition of improvements located on the A-lO site and $69,500.00 is for the demolition of improvements located on the A-9 site, contingent upon resolution of pending litigation involving the A-9 site. EXECUTIVE SESSION The Agency Members adjourned to Executive Session at 10:10 P.M. and returned at 10:58 P.M. with all members formerly present in attendance. The Agency Secretary read the following statement: "THE LEGAL COUNSEL REQUESTS THAT THE REDEVELOPMENT AGENCY RECESS TO CLOSED SESSION, PURSUANT TO GOVERNMENT CODE SECTION 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 ALLIANCE ETC. VS. COMMUNITY REDEVELOPMENT AGENCY ET AL. IDENTIFICATION OF SUCH LITIGATION WOULD JEOPARDIZE THE AGENCY'S ABILITY TO CONCLUDE EXISTING SETTLEMENT NEGOTIATIONS TO ITS ADVANTAGE. THE LEGAL COUNSEL REQUESTS THAT THE REDEVELOPMENT AGENCY RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 TO GIVE INSTRUCTIONS TO THE CITY'S NEGOTIATOR REGARDING NEGOTIATIONS WITH MR. HAN CONCERNING THE PURCHASE OF THE PROPERTY LOCATED AT 316 E. 5TH STREET AND 416 N. FRENCH STREET; 214 & 216 E. 4TH STREET; 218 E. 4TH STREET; 301 & 311 E. 4TH STREET; 220 E. 4TH STREET; 214 E. OWENS DRIVE; 120 E. BACHMAN DRIVE; AND 204 E. OWENS." APPROVAL OF OWNER PARTICIPATION AGREEMENTS MARKETPLACE PROJECT tA-8 SITE) DOWNTOWN FIESTA FOR It was moved by Vice Chairman Johnson, seconded by Agency Member Luxembourger and carried unanimously that the Agency approve Owner Participation Agreements with the following individuals within the A-8 Site pursuant to the Disposition and Development Agreement with Fiesta Marketplace Partners: 1. Allan Fainbarg and Irving Chase - 217 East Fourth Street Jose Ceballos - 212, 312 and 314 East Fourth Street 2. 6. " . 3. Raymond and Dehlia Rangel - 302 and 308 East Fourth Street Robert Benitez - 310 East Fourth Street 4. 5. Robert and Lorretta Escalante 302 and 304 North French Street - 309 East Third Street and 6. Jesus Galvan - 316, 318 and 320 East Fourth Street ACQUISITION OF PROPERTY WITHIN 201-213 N. SYCAMORE STREET THE A-ll DEVELOPMENT SITE: It was moved by Agency Member Luxembourger, seconded by Vice Chairman Johnson and carried unanimously that the Agency authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute that certain agreement entitled, "Agreement for Acquisition of Real Property and Escrow Instructions", with Universal Terminals, Inc., a corporation, for purchase of property commonly known as 210-213 North Sycamore Street for a total purchase price of $392,000.00. . APPROVAL TO RESCIND THE DISPOSITION AND DEVELOPMENT WITH URBAN VENTURES CORPORATION ON THE A-9 SITE AGREEMENT It was moved by Agency Member McGuigan, seconded by Chairman Griset and carried unanimously (7:0) that the consideration by the Agency of the approval to rescind the Disposition and Development Agreement with Urban Ventures Corporation on the A-9 site be continued to the Agency Meeting of March 18, 1986 AMENDMENT TO DIRECT COMMERCIAL LOAN TERMS FOR PROPERTIES WITHIN THE FIESTA MARKETPLACE PROJECT tA-8 SITE) It was moved by Agency Member Luxembourger, seconded by Agency Member Acosta and carried unanimously (7:0) that the Agency approve an amendment to the Direct Commercial Loan Program extending the loan "balloon" date from seven to ten years for owner participants within the Fiesta Marketplace Project who also receive Urban Development Action Grant funds. . APPROVAL OF URBAN VENTURES ASSIGNMENT PARTNERSHIP, LTD. FOR THE A-5 SITE It was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson and carried unanimously (7:0) that the Agency consent to Urban Ventures Corporation joining with Capital Investment Properties, Inc. and Michael V. Reyes, in a limited partnership in which Urban Ventures Corporation is the general partner, to acquire and develop the A-5 site pursuant to the Disposition and Development Agreement dated September 25, 1984. TO LE PROVENCAL 7. '. . FUND TRANSFER FOR REPAYMENT OF LOAN TO THE AGENCY FROM COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (APPROPRIATION ADJUSTMENT NO. 132) It was moved by Agency Member Luxembourger, seconded by Vice Chairman Johnson and carried unanimously (7:0) that the Agency approve Appropriation Adjustment Number 132 transferring $2,200,000 of bond proceeds to the Central City Project Area for the purpose of providing funds to repay a loan from the Community Development Block Grant Program. EXTENSION OF EXCLUSIVE RIGHT TO NEGOTIATE DEVELOPMENT AT THE HARBOR DRIVE-IN SITE WITH SCHURGIN In response to questions from Agency Executive Director/Economic Development extension was needed so that the goodwill completed and the negotiations on Development Agreement could be finalized by Member Young, the stated that the appraisal could be the Disposition and staff. . After further discussion, it was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson that the Agency grant to Schurgin Development a 60-day extension of the Exclusive Right to Negotiate for the development of the Harbor Drive-In site located at the southeast corner of Harbor Boulevard and McFadden. REQUEST FOR PROPOSALS FOR THE C-8 SITE It was moved by Agency Member Young, seconded by Agency Member Acosta and carried unanimously (7:0) that the consideration of request for proposals for the C-8 site be referred to the Economic Development Committee. SANTA ANA AUTO MALL - GRANT OF EASEMENT SOUTHERN CALIFORNIA EDISON COMPANY AND RIGHT-OF-WAY TO . It was moved by Vice Chairman Johnson, seconded by Agency Member Young and carried unanimously that the Agency authorize the Chairman of the Community Redevelopment Agency of the City of Santa Ana to execute that certain Grant of Easement to convey an easement and right-of-way from the Agency to Southern California Edison Company over two strips of land located along the east side of Ritchey Street north of Edinger Avenue within the City of Santa Ana Auto Mall development site. AGENCY AGENDA ITEMS It was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson and carried unanimously that the Agency authorize the acquisition of the following properties: 8. .' . . '.' , -, . Seung H. Han & Eun J. Han, 316 E. Fifth & 416 Street, Santa Ana in the amount of $225,000.00. N. French John Fainbarg and Meryl Fainbarg, 214 & 216 Street, Santa Ana, in the amount of $285,000.00 E. Fourth Jose I Ceballos, Joan C. Ceballos & Bertha A. E. Fourth Street in the amount of $170,000.00 Ceballos, 218 It was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson and carried by a vote of 6:0 (Agency Member Acosta abstained) that the Agency authorize the acquisition of the property owned by D.A.V. Charities of Orange County, 301 & 311 E. Fourth Street in the amount of $763,715.28 It was moved by Agency Member McGuigan, seconded by Vice Chairman Johnson and carried unanimously (7:0) that the Agency authorize the acquisition of the following properties: Raymond S. Figurski & Joyce D. Figurski, Street in the amount of $165,000.00. 220 E. Fourth . Joseph Hamann and Genevieve Hamann, 214 Santa Ana in the amount of $220,000.00. Darrell V. Daugherty & Colleen A. Daugherty, 120 E. Bachman Drive in the amount of $130,000.00. E. Owens Drive, Lenore Sproul, 204 E. Owens Drive in the amount of $122,875. ADJOURNMENT There being no further business to come before the Agency, ~:::~~,::::U,"'d " 11,16 p~~ Chairman Executive Director the . 9.