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HomeMy WebLinkAbout04/21/1987 . . . MINUTES JOINT REGULAR MEETING COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL APRIL 21, 1987 The Joint Regular Meeting of the Community Redevelopment Agency/City Council was called to order at 5:43 P.M. in Room 147 for the Study Session. The subject of this session was: STRATEGY PLANS FOR SOUTH HARBOR AND SOUTH MAIN PROJECTS AREAS Presentations on the Strategy Plans for the South Harbor and South Main Project Areas were made by Project Managers Josie LaQuay and Vicki Uehli. Following these presentations, there was a discussion between staff 'and the Agency Members. Chairman Young adjourned the Study Session to the Council Chambers at 6:35 P.M. for the Agency/Council Business Session. The Agency Members P.M. The Pledge by the roll call: PRESENT arrived in the Council Chambers at 6:39 of Allegiance to the Flag was given followed ABSENT John Acosta Daniel E. Griset (6:58 P.M.) Wilson Hart Ron May Patricia McGuigan, Vice Chairperson Miguel A. Pulido Daniel H. Young, Chairman Others in attendance: David N. Ream, City Manager Rex Swanson, Deputy City Manager/Development Services Ed Cooper, City Attorney Cynthia Nelson, Executive Director/Community Development Mellmary McNeely, Agency Secretary Bernard Truax, Truax-Miller Development Co. Jacilynn Reichwald, Truax-Miller Development Co. Bill Blurock, The Blurock Partnership John Ballew, John Ballew Associate Architects MINUTES It was moved by Vice Chairperson McGuigan, seconded by Agency Member Acosta and carried unanimously (6:0) that the Minutes of the Joint Regular Meeting of the Community Redevelopment Agency/City Council, held March 17, 1987, be approved. . . . EXTENSION OF SINGLE FAMILY MORTGAGE REVENUE BOND FUNDS It was moved by Agency Member Acosta" seconded by Vice Chairperson McGuigan and carried unanimously (6:0) that the Redevelopment Agency adopt Resolution No. 87-11: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE EXTENSION OF THE 1985 HOME MORTGAGE REVENUE BOND PROGRAM AND APPROPRIATING FUNDS IN CONNECTION THEREWITH. REQUEST FOR PROPOSAL FOR THE SALE AND REHABILITATION HARMON-McNEIL HOUSE AND THE WILLIAM CRANE HOUSE OF THE It was moved by Vice Chairperson McGuigan, seconded by Agency Member Pulido and carried unanimously (6:0) that the Community Redevelopment Agency approve the issuance of a Request for Proposal for the sale and .rehabilitation of the historic Harmon-McNeil House, located at 817 N. Lacy Street, and the William Crane House, located at 506 S. Birch Street. Agency Member Griset arrived at 6:58 P.M. EXCLUSIVE RIGHT TO NEGOTIATE CORPORATION FOR THE A-16 SITE WITH TRUAX-MILLER DEVELOPMENT The Executive Director/Community Development introduced Mr. Bernard Truax, President of Truax-Miller Development Corporation, and invited him to make a presentation on his proposed development of the A-16 Site. Mr. Truax introduced his associates and then asked Ms. Jaclynn Relchwald, Leasing/Property Manager for the project, to give an overview of the proposed development. Ms. Reichwald gave a brief history of the jewelry business from its beginnings in antiquity to the present day. She then pointed out that the geographics of Los Angeles and Orange County necessitate the expansion of the jewelry trade area, ,adding that Santa Ana is at a mid-point between Los Angeles and San Diego thus making it an ideal location for a jewelry mart. She stated that, in her opinion, a jewelry mart in Santa Ana, coupled with the City's Foreign Trade Zone, would give international recognition to the City. She pointed out that jewelry sales were number one in 'Orange County and that the County has 15 Regional Malls, each of which has jewelry stores, thus making Santa Ana the geographic center for both retail buyers and consumers. Mr. Truax then introduced Mr. Bill Blurock and Mr. architects for the proposed development. Mr. Blurock and Mr. Ballew called the attention of the Agency Members to the exhibit which gave a general explanation of the John Ballew, z. . project. They stated that one thing that was unique about the project was its need for strong security measures which had caused them to design the buildings with inward orientation. In response to a question from Vice Chairperson McGuigan, they explained that there would be two towers which would be integrated at the second and third floors. They pointed out that there would be approximately three hundred thousand square feet in the development, that sufficient parking would be provided, and that the traffic circulation would be acceptable to the City. Mr. Truax then addressed the Agency and stated that the first phases of their studies had been ddne and time had been taken to architecturally understand the site. He added that the Truax-Miller Development Company needed a ISO-day Exclusive Right to Negotiate to complete their studies, to negotiate with the other property owners in the A-16 site, and to be able to tell the Agency what Truax-Miller may require in the form of financial assistance. . In response to a question from Commissioner Pulido, Mr. Truax . stated ,thaL" Bush H Street....,would...,be..kept..open.nto .automobiles and that there would be a walkway for pedestrians at the second level, adding that the development would require the closing of Second Street and possibly Spurgeon Street. In response to further questions, Mr. Truax stated that there will be a great financial risk in undertaking this project and that Truax-Miller is spending a great deal of time on the leasing-up of the buildings. He added that there were no experts on the building of jewelry marts because there were so few of them in the United States. He pointed out that he is a former Vice-President of Inland Steel who constructed the Los Angeles jewelry mart and, through that experience, he had acquired expertise in the field. In response to Agency Member Pulido's remarks regarding the $3 Million which had been allocated to the development of the A-16 site and then had been transferred to the Bower's expansion program, the City Manager stated that there is no money allocated for the A-16 site at the present time. . Mr. Woodrow Butterfield, the property owner of 220 E. Third Street, addressed the Agency and stated that he and his tenants were in attendance to ask that his property be exempted from this proposed development. He pointed out that he had done extensive remodeling of his property on two occasions at the request of the City of Santa Ana. Chairman Young responded to Mr. Butterfield, telling him that as the project proceeded the Agency would be looking at the 3. . . . size and configuration of the proposed development and that Mr. Butterfield and his tenants would have an opportunity to express their wishes to the Agency. MINTER HOUSE IMPROVEMENTS It was moved by Agency Member Acosta, seconded by Agency Member May and carried unanimously (7:0) that the Redevelopment Agency: 1. Approve an Agreement between the Community Redevelopment Agency and Historic Restoration ("A California Partnership") to implement mitigation measures pertaining to the Minter House adjacent to the A-12 Park Place Development Site; Approve conceptual plans for the mitigation project budget of $100,~00.00 inclusive contract for final working drawings and package preparations with Don Krotee and amount not to exceed $10,000.00; and 3. Authorize the-solicitation of-bids-following--completion of the construction plan documents and authorize the ,." Redevelopmen t",Comm i ssi on. to H i.mp 1 emen tthe -budget. 2. measures and a of a consultant relevant bid Associa tes in an ASSIGNMENT AGREEMENT FOR COMMONWEALTH VOLKSWAGEN CORPORATION It was moved by Vice Chairperson McGuigan, seconded by Agency Member May and carried unanimously (7:0) that the Redevelopment Agency approve an agreement assigning a certain Lease, Option and Development Agreement, dated December 18, 1984, and -amendment thereto, dated May 20, 1986, from Commonwealth Volkswagen Corporation to Allan and Sara Fainbarg, Michael R. Wimbush, and others. LEASE AGREEMENT FOR OFFICE SPACE WITH THE GREATER SANTA ANA CHAMBER OF COMMERCE In response to questions from Agency Member Acosta, the Executive Director/Community Development stated that this lease was for $2.00 per square foot, the same rate as the Chamber of Commerce is paying. In response to Agency Member Acosta's observation that there was other office space available in Santa Ana at a lesser rate, the City Manager stated that the original agreement was negotiated very stringently by the Chamber of Commerce when they moved into the building. He added that this was the first year of the commitment which is renewable by the Chamber and that they have chosen to renew it. In response to further questions from Agency Member Acosta, the Executive Director/Community Development stated that this lease 4. . . . would terminate in 1989 when the Chamber of Commerce's master lease expires, adding that there was a cost-of-living raise in 1988. It was then moved by Vice Chairman McGuigan, seconded by Agency Member May that the Agency authorize the City Attorney to prepare and the Chairman and Secretary to execute a Sublease Agreement with the Greater Santa Ana Chamber of Commerce. Agency Member May left the Council returned at 7:05 P.M. Chambers 7:00 P.M. and at The vote on the motion was then (Agency Member Acosta voting "NO"). approved by a vote of 5:1 EXECUTIVE SESSION The City Clerk read the following statements: . "THE LEGAL COUNSEL REQUESTS 'THAT TIΠREDEVELOPMENT AGENCY RECESS TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54056; 8 TO "GIVE--INSTRUCTIONS 'TO THE '"CITY , S NEGOTIATOR REGARDING NEGOTIATIONS WITH ALAN FAINBARG AND DAVE WILLIAMS CONCERNING ,THE., PURCHASE "OF ,THE 'PROPERTY"WCATED AT. 416 N;' BROADWAY." "THE LEGAL COUNSEL REQUESTS THAT THE REDEVELOPMENT AGENCY RECESS TO CLOSED SESSION TO CONFER WITH ITS ATTORNEY REGARDING PENDING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (B) (1) DUE TO SIGNIFICANT EXPOSURE. " REPORT FROM EXECUTIVE SESSION It was moved by Vice Mayor McGuigan, seconded by Agency Member Hart and carried unanimously (7:0) that authority be given to the City's negotiators to acquire the property at 1406 Broadway for the amount of $860,000.00. It was moved by Agency Member Pulido, seconded by Vice Mayor McGuigan and carried unanimously (7:0) that authority be granted to the negotiators for the Redevelopment Agency to settle the Claim of HBR in the amount of $10,500.00. ADJOURNMENT There being no further business to come before Redevelopment Agency, the meeting was adjourned at 7:11 P.M. the ~ Executive Director 5.