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HomeMy WebLinkAbout05/05/1997 . . . MINUTES OF THE ADJOURNED REGULAR MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA MAY 5, 1997 CALLED TO ORDER 6:56 P.M. ATTENDANCE Motion: MINUTES: Motion: REDEVELOPMENT AGENCY MEMBERS Present: MIGUEL A. PULIDO, Chairman (7:00 p.m.) ROBERT L. RICHARDSON, Vice Chairman TONY ESPINOZA BRETT FRANKLIN TOM LUTZ PATRICIA MCGUIGAN TED R MORENO Absent: None STAFF Present: DAVID N. REAM, ci ty Manager DEBRA KURITA, Assistant City Manager JOSEPH W. FLETCHER, City Attorney CYNTHIA NELSON, Executive Director CONSENT CALENDAR Approve staff recommendations on the following Consent Calendar items. MOTION: McGuigan SECOND: Lutz VOTE: AYES: Espinoza, Franklin, Lutz, McGuigan, Moreno, Richardson NOES: None ABSENT: Pulido ADMINISTRATIVE MATTERS Approve the Minutes of the Adjourned Regular Meeting of the Community Redevelopment Agency held on April 21, 1997 and Minutes of the Regular Meeting of the Community Redevelopment Agency held on April 15, 1997. . . . RECORDING SECRETARY REPORT Motion: Instruct the Recording Secretary to enter notice of posting into the Minutes. The April 21, 1997 Agenda for the Adjourned Regular Meeting of the Community Redevelopment Agency was posted on the door of the Council Chambers, 22 Civic Center Plaza at 2:40 p.m. on April 16, 1997. The Notice of Adjournment for the April 15, 1997 Community Redevelopment Agency Regular Meeting was posted on the door of the Council Chambers, 22 civic Center Plaza at 5:32 p.m. on April 15, 1997. Chairman Pulido returned at 7:00 p.m. BUSINESS CALENDAR 1. LEONARD AND MICHELLE BARTH - AMENDMENT OF LOAN TERMS (Continued from March 3, 1997 by a 7/0 vote and April 7, 1997 by a 7/0 vote) Motion: Direct the Agency Attorney to prepare, and authorize the Executive Director to execute, any necessary documents amending the terms of the Direct Commercial Rehabilitation Loan with Leonard and Michelle Barth. MOTION: McGuigan SECOND: Lutz Executive Director Cindy Nelson and Administrative Services Manager John Reekstin presented the staff report and answered Agency Member Moreno's inquiries regarding the loan. Substitute Motion: Direct the Agency Attorney to prepare, and authorize the Executive Director to execute, any necessary documents amending the terms of the Direct Commercial Rehabilitation Loan with Leonard and Michelle Barth, with the following provisions: The Agency will sell its Note to the Barth's new lender for $50,000, and; Agency staff will attempt to secure a new Note in third position behind the First Trust Deed holder and the new lender for the remaining principal balance of the current Agency Note. MOTION: Espinoza Moreno SECOND: VOTE: AYES: Espinoza, Franklin, Lutz, McGuigan, Moreno, Pulido, Richardson NOES: None ABSENT: None REDEVELOPMENT AGENCY MINUTES -2- MAY 5, 1997 . . . 2. REQUEST TO ENTER INTO EXCLUSIVE NEGOTIATIONS WITH SECOND STREET EAST, LLC FOR THE REHABILITATION OF ARTIST STUDIOS LOCATED AT 202 EAST SECOND STREET Chairman Pulido comm'~nted on his potential conflict of interest due to the location of his business and departed at 7:11 p.m. vice Chairman Richardson then took charge of this portion of the meeting. Executive Director Cindy Nelson made staff presentation, followed by a brief project overview by Arthur Strock. Three written comments of support were received from Tim Rush, Joan Ramirez, and Don Cribb; and Matthew Cruz commented on his support of project. Florence Leach requested Agency not vote on proposal but to defer pending appraisal. Sean Mill requested Agency deny action as it is an excessive risk. Substitute Motion: To deny request for terms for a Commercial Rehabilitation Loan Agreement. MOTION: Moreno SECOND: Espinoza VOTE: AYES: Moreno, Espinoza NOES: Franklin, Lutz, McGuigan, Richardson ABSENT: Pulido The Substitute Motion failed. Motion: Authorize the Executive Director of the Redevelopment Agency to negotiate with Second Street East, LLC the terms for a Commercial Rehabilitation Loan Agreement in an amount not to exceed $750,000 for artists' studios located at 202 East Second Street. MOTION: Franklin Lutz SECOND: VOTE: AYES: Franklin, Lutz, MCGuigan, Richardson NOES: Espinoza, Moreno ABSENT: Pulido ORAL COMMUNICATIONS/PUBLIC COMMENTS None p.m. ~~ Cynth~a J. N~son, Executive Director REDEVELOPMENT AGENCY MINUTES -3- MAY 5, 1997