HomeMy WebLinkAbout1983-26 CRA
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RESOLUTION NO. 83-26
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA DENYING THE
CLAIM OF GREEN'S FURNITURE, INC. FOR RELO-
CATION ASSISTANCE PAYMENTS
WHEREAS, a claim for relocation assistance payments in
the amount of $237,170.00 was filed with the Community
Redevelopment Agency of the City of Santa Ana (the "Agency") on
or about August 3,1982, in the name of Green's Furniture, Inc.~
and
WHEREAS, said claim was denied by the Community
Development Director of the City of Santa Ana on behalf of this
Agency on or about September 1, 1982~ and
WHEREAS, Green's Furniture, Inc. appealed to this
Agency from said denial~ and
WHEREAS, prior to being heard by this Agency, said
claim was submitted to the Community Redevelopment Commission for
review and recommendation~ and
WHEREAS, based upon its review of the claim, the
Community Redevelopment Commission, at its meeting of July 5,
1983, recommended its denial~ and
WHEREAS, this Agency, at its meeting of July 18, 1983,
reviewed the said claim and all written materials pertaining
thereto, and gave hearing to the oral arguments and evidence of
the claimant and Agency staff~ and
WHEREAS, at the conclusion of said review and hearing,
on the basis of all the evidence, written and oral, presented to
it, this Agency has determined to deny said claim, and does now
desire to set forth such determination in writing in accordance
with section 42.705(e) of Title 24 of the Code of Federal
Regulations~
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS:
1. The above said claim of Green's Furniture, Inc. for
relocation assistance payments is denied in its entirety.
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RESOLUTION NO. 83-26
PAGE TWO
2. The factual and legal basis upon which said denial is
based is as follows:
a. The factual background to the relocation upon
which said claim is based is truly and accurately represented in
the remarks of the Assistant Director of Redevelopment & Real
Estate to the Community Redevelopment Commission as reported in
the minutes of the July 5, 1983 meeting of said Commission,
incorporated herein by reference.
b. In the time preceding and during the
rehabilitation work on the Grand Central Building, leading up to
and including the letter agreement of February 18, 1981, Mr.
William Greenberg represented himself to Agency staff as speaking
on behalf of Green's Furniture, Inc. Agency staff acted
reasonably in assuming Mr. William Greenberg had such authority.
At the time it was negotiated, the letter agreement of February
18,1981, was understood by Agency staff and Mr. William
Greenberg to extend to all business operations conducted by Mr.
and Mrs. William Greenberg in that portion of the Grand Central
Building leased by Green's Furniture Store, Inc. That letter
agreement reflected Mr. William Greenberg's own estimate of the
expenses he and his wife would incur, either directly or through
their corporation, for such relocation of their businesses, or
portions thereof, as was necessitated by the rehabilitation of
the Grand Central Building. It was accepted by Agency staff, in
lieu of an estimate of such expenses by an independent source, in
order to accommodate Mr. and Mrs. William Greenberg in their
desire to proceed quickly with a staggered self-move out of the
Grand Central Building to minimize adverse impacts on their
business operations. The letter agreement represents a valid
contract through which Green's Furniture, Inc. received
substantial consideration in return for its promise to limit its
claim for relocation assistance payments. Green's Furniture,
Inc. has, therefore, legally waived its right to claim such
payments in excess of the amounts stipulated in the letter
agreement.
c. As a separate and independent basis, the claim of
Green's Furniture, Inc. must de denied on the basis of
insufficient substantiation of the items and amounts claimed as
relocation costs and expenses. The claim of Green's Furniture,
Inc. fails to provide any detailed explanation of the items for
which claims are made, or the necessity of incurring costs and
expenses with respect thereto, or the amounts of the costs and
expenses alleged. The amounts claimed are unsupported by any
independent documentation in the nature of bids, estimates,
appraisals, receipts, or statemènts of disinterested third
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RESOLUTION NO. 83-26
PAGE THREE
parties. While such documentation is not ordinarily required or
available for moving expenses in the case of a self-move, the
Agency would have been entitled to obtain independent bids or
estimates of moving expenses in lieu of such documentation (or an
agreed-upon estimate such as the February 18 letter agreement) on
which to base a determination of proper relocation assistance
payments. In this case, however, this Agency was precluded from
doing so by reason of Green's Furniture, Inc.'s failure (apart
from the discussions leading up to the February 18,1981 letter
agreement) to consult with Agency staff on the relocation of
Green's Furniture, Inc. As noted previously, Green's Furniture,
Inc. never represented to the Agency that it was incurring
additional expenses that were not addressed or anticipated in the
letter agreement until this claim was filed, long after the move
took place. Agency staff were thereby deprived of the
opportunity to evaluate (or reevaluate) the actuality and
reasonableness of any additional expenses on the basis of either
independently-derived or agreed-upon estimates. If Green's
Furniture, Inc. did in fact incur moving and related expenes
other than those addressed in the letter agreement, it acted
unreasonably in failing to communicate with Agency staff in a
timely manner. Their present inability to provide any meaningful
substantiation for the amounts they now claim is primarily their
own responsibility.
d. As a separate and independent basis for denial of
that portion of the said claim pertaining to "Loss of Personal
Property," the claimant failed to establish its eligibility for
payment for any actual loss of any items of tangible personal
property incurred as a result of the claimant's move. The
claimant made no good faith effort to sell such property, nor did
it transfer ownership of such property to the Agency as required
by 24 CFR §§ 42.307 and 42.309.
e. As a separate and independent basis for the denial
of that portion of the said claim pertaining to "Theft Loss," the
governing federal relocation assistance guidelines do not allow
payment of such costs. Rather it was the responsibility of the
claimant to protect itself from such costs through appropriate
insurance.
f. As a separate and independent basis for the denial
of that portion of the said claim pertaining to "storage costs,"
no evidence, description, or explanation of storage exists by
which the Agency could determine that any storage of claimant's
personal property was necessary.
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RESOLUTION NO. 83-26
PAGE FOUR
3. Pursuant to 24 CFR S 42.707, the claimant has the right
to appeal this determination to the U.S. Department of Housing
and Urban Development (HUD). The applicable HUD office is
located at the following address: U.S. Department of Housing and
Urban Development, Los Angeles Area Office, Region IX, 2500
Wilshire Blvd., Los Angeles, CA 90057.
ADOPTED this ~ day of
following vote:
August
, 1983 by the
AYES: MEMBERS:
NOES: MEMBERS:
ABSENT: MEMBERS:
ATTEST:
R.~Ç
Executive Director/
Recording Secretary
APPROVED AS TO FORM:
Acosta, Griset, Luxembourger,
Johnson, McGuigan
None
Bricken, Young
R{£T
Chairman
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MINUTES
REGULAR MEETING
COMMUNITY REDEVELOPMENT COMMISSION
SANTA ANA. CALIFORNIA
JULY 5, 1983
The Regular Meeting of the Community Redevelopment
Commission of the Ci ty of Santa Ana was called to order by
Chairman Newcomb at 3:35 P.M. in Room 335. 20 Civic Center
Plaza, Santa Ana. California, There being no Flag present
in the room, the Pledge of Allegiance was omitted, after
which the roll was called:
PRESENT
ABSENT
Victor C. Alleman
John Coil
Bill Mack
Alexander Nalle
Robert Newcomb
Alber ta D. Chr isty
Kathleen Rosenow
Others in attendance:
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Thomas Hammill, Ass't. Director of Redevelopment
and Real Estate
Richard Lay, Assistant City Attorney
Nancy Dean. Assistant Clerk of the Council
Richard Dominguez, Financial Services Manager
Alex Sanchez, Director of Housing
Ralph Campbell, Commercial Loan Officer
Edward Henning. Project Area Manager
Robyn Simpson. Project Area Manager
Cynthia Nelson, Project Area Manager
Mellmary McNeely, Secretary
Douglas S. Honig, Developer
Terry Martin. Gibraltar Savings
MINUTES
It was moved by Commissioner Coil. seconded by Commissioner
Nalle and carr ied unanimously (4: 0) that the Minutes of the
Regular Meeting held on June 21. 1983 be approved as
received,
OATH OF OFFICE
The Assistant Clerk of the Council administered the Oath of
Office to Mr. Bill Mack. newly appointed Commissioner to
serve Ward 17. Chairman Newcomb welcomed Commissioner Mack
on behalf of the Commission and Staff.
Ms. Kathleen Rosenow. newly appointed Commissioner to serve
Ward 16, was unable to attend and receive the Oath of Office
due to prior commitments out of town.
ELECTION OF OFFICERS
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Chairman Newcomb announced that, since the By-Laws of the
Commission called for the election of officers at the first
meeting in July, he would ask the Assistant Director of
Redevelopment. who was the Acting Secretary for the
Commission, to assume the chair for the purpose of electing
a new Chairman and Vice Chairman for the Commission.
The Assistant Director of Redevelopment called for
nominations for the office of Chairman of the Commission for
the ensuing year. Commissioner Newcomb nominated Com-
missioner Nalle to serve as Chairman of the Commission; the
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nomination was seconded by Commissioner Coil. Commissioner
Mack then moved that the nominations be closed and that a
unanimous ballot be cast for Commissioner Nalle to serve as
Chairman of the Commission for the ensuing year, The motion
carried unanimously (5:0), and Commissioner Nalle, having
been declared Chairman, assumed the chair.
Chairman Nalle then nominated Commissioner Coil to serve as
Vice Chairman of the Commission. Commissioner Newcomb
seconded the nomination and further moved that the
nominations be closed and that a unanimous ballot be cast
for Commissioner Coil to serve as Vice Chairman of t'he
Commission for the ensuing year. The latter motion was
seconded by Commissioner Mack and carried unanimously (5:0),
Commissioner Coil was then declared to be Vice Chairman of
the Commission for the ensuing year.
DOUGLAS HONIG DEVELOPMENT/B-2 SITE
Chairman Nalle pointed out that Mr. Ibuglas Honig, Developer
of the B-2 Site, was present, together with Mr. Terry Martin
of Gibraltar Savings and that they wished to make a status
report on the closing of the escrow for the B-2 Site as
prescribed by the Disposition and Development Agreement
between the Agency and Mr. Honig.
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Mr. Honig gave a brief update on the various steps that had
been accomplished to bring the negotiations to the point of
being ready to close the escrow for the B-2 Site. He
pointed out that there was a problem which had arisen in the
financing of the project which had necessitated a re-
appraisal of the property to satisfy the requirements of
Gibralter Savings. He added that Gibralter Savings was
still most enthusiastic about financing the project and that
Mr. Terry Martin, who handled major loans for Gibraltar, was
present to verify that Gibraltar had every intention of
proceeding with the project. He added that there had also
been some difficulty with the legal description of the
property but that this too would soon be resolved. Mr.
Honig stated further that he did not receive the final loan
commitment letter until June 15th which delayed the
publishing of the purchase agreement. He added that there
had been numerous inquir ies regard ing the 79,000 square feet
which was available in the B-2 Site and that approximately
65,000 square feet had been reserved by attorneys. He
stated further that they had received $35,000 in down
payments and that they expected to receive several thousands
more within the next week. He added that he expected to
have the remainder of the financing problems solved wi thin
the next thirty days, perhaps sooner. Mr. Honig pointed out
that he was committed to over $1 million in materials and
that he had invested over $250,000 of his own funds in the
project and that he felt this showed his good intent toward
the closing of the escrow as soon as these few remaining
problems could be resolved.
Mr, Terry Martin of Gibraltar Savings then addressed the
Commission and assured them that Gibraltar Savings intended
to honor their commitment and that everything that Mr. Honig
had said was essentially correct.
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The Assistant Director of Redevelopment stated that, if the
escrow was not closed by August 5th, staff would recommend
an interest payment for the time beyond that date. Mr.
Honig answered that he felt this would be acceptable. He
then thanked the Commission for their time and Chairman
Nalle thanked him for his report.
GRIEVANCE FOR RELOCATION ASSISTANCE PAYMENT
Chairman Nalle asked the Assistant Director of Redevelopment
to make staff's presentation supporting the recommendation
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for denial of the appeal of Green's Furniture to receive
additional funds for relocation assistance.
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The Assistant Director
following statement:
of
Redevelopmen t
then
read
the
"In August 1982, we received a
assistance from Mr. Richard L.
Green's Furniture in the amount of
of the claim is in your packet.
Attorney Riemer's request to each
claim and reasons for our denial,"
claim for relocation
Riemer represen ting
$237,170.00. A copy
We have responded to
of the issues in the
.
"Several years agc the Redevelopment Agency began
planning for the development of the Second Street Mall.
This effort resul ted from concepts prov ided by Bissell
and August in their 1976 plan for the redevelopment of
the Downtown. Beginning in approximately 1976-77, the
Agency staff began discussions wi th Mr. Billy Greenberg
regarding the rehabilitation of the Grand Central
building which would face the southern half of the
mall. 'lt1ese discussions led to the actual drafting of
an agreement between the Agency and Billy.
Subsequently, we found that the property was actually
owned by Harry and Evelyn Greenberg, the parents of
Billy Greenberg. In 1979, the Agency proceeded to
construct the Second Street Mall and formulated a Major
Commercial Rehabilitation Loan Program with Wells
Fargo. In addition, Agency staff proceeded to assist
Mr. and Mrs. Greenberg in getting a 312 HUD loan in the
amount of $250,000 to add to the Wells Fargo loan of
approximately $650,000. The major impediment to the
Greenberg's moving ahead with their planned rehabili-
tation of the Grand Central building was a long-term
lease wi th the ir son, Billy, which called for a low
rate of return which would not sustain the debt serv ice
on the cost of rehabilitation. In order to make the
mcnthly payments on the new loans, Billy would have to
pay a higher monthly rent than his lease called for or
vacate the portion of the Grand Central building which
he occupied so that it could be reoccupied by a tenant
who was willing to pay a higher rent. We felt this was
a matter between the father and son who we had worked
with for several years on this project and left it as
str ictly a family matter, In December of 1980, the
Greenbergs decided to proceed with the rehabilitation
of the building with loan funds provided from Wells
Fargo Bank and HUD."
"Because Federal funds were available from HUD for a
portion of the project, the residential tenants in the
twenty-nine (29) apartments upstairs were eligible for
relocation benefits. In addition, staff determined
that the commercial tenants downstairs may be eligible
for certain relocation benefits. D.>r ing the several
years we discussed this rehabilitation project with the
Greenbergs, the question of relocation benefits to
Billy was explored with him. Agency staff determined
that he should receive $4,000.00 for moving expenses on
what he was moving out of the Grand Central building
into the Green's Furniture building next door, In
addition, staff authorized a payment of $2,100.00 for
the relocation of a sign on the Broadway side of the
building to the First Street side of the building, as
well as a payment of $600.00 for the moving and
reinstalling of shelving. Mr. Riemer, the attorney for
Mr, Greenberg has stated that we did not properly
advise Mr. Greenberg of his relocation rights by not
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supplying him with the proper written information. It
is our belief that over the course of our many
discussions with Billy, we did provide him with all
pertinent information, however, so much time has lapsed
that we are unable to docwnent in wr iting that he
received this information. In order to ensure that
Billy received the proper relocation assistance, we had
our original findings reviewed by the leading
relocation consul tants in Southern Cal Hornia, Port and
nor, Inc. Billy accepted our offer of $6,700.00 for
wha twas pr imar ily a self-move and appeared to be
satisfied that he had received proper compensation.
Billy acknowledged acceptance to our offer by signing a
letter dated February 18, 1981 in which he acknowledged
the payment to be his maximwn entitlement, Billy also
executed all the required BUD forms required to receive
such a payment,"
"We have received no information or docwnentation to
support the Greenberg Assistance Claim, We have always
stated that we would be willing to review any
docwnentation to substantiate their claim, We hope
that it is not the intention of Mr. Riemer to withhold
any docwnentation from the staff, Commission and/or
Agency and later present it to BUD or the courts,'
"We welcome the opportunity to study any additional
information they wish to submit, however, it will be
necessary for them to:
1.
specify items in detail as to what expense was
incurred, when it was incurred, and how it was
incurred;
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2,
explain the
items; and
necessity of incurring loss on these
3.
provide docwnentation of the amounts claimed ,"
"Fact: Billy's decision to move and give up his low
lease rate was voluntary, Be moved so that his family
could receive a low interest 9% Agency loan for
$650,000 and a 3% BUD loan for $250,000."
"Fact: the I\gency had to payout of pocket over
$50,000 in relocation payments to tenants in the
building so that the Greenberg family could use the
$250,000 3% loan,"
"Fact: the I\gency spent over $350,000 on the Second
Street Mall which substantially increased the Greenberg
family's property value,"
"Fact: the I\gency loaned the Greenbergs $154,211 at 0%
interest for three years to help them finish their
rehabil itation ,"
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"Fact: the I\gency paid Billy $6,700 for a self-move,
sign relocation and shelf installation, This payment
was made based on Billy's own estimate of his cost to
move, We did not ask him to further docwnent this
estimate. Billy's acceptance is in your packet as
Exhib it "A",
Chairman Nalle noted that Mr, Will iam Riemer, attorneý for
Mr. Greenberg, was not present at the meeting as promised,
In response to questions from Commissioner Newcomb, the
Assistant Director of Redevelopment stated that Port and
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Flor reviewed the relocation payment made to Billy Greenberg
in August of 1982 and that Port and Flor was considered to
be one of the most outstanding consultants in this field in
the State of California.
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After further discussion, it was moved by Commissioner
Newcomb, seconded by Commissioner Coil and carried
unanimously (5:0) that the Commission recommend denial of
the appeal of Green's Furniture to receive additional funds
for Relocation Assistance,
FIRST AMENDMENT TO THE MANAGEMENT AGREEMENT DATED APRIL 20,
1981 - OCTD PARKING GARAGE AT BROADWAY AND FIFTH STREET
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The Assistant Director of Redevelopment explained that the
Management Agreement between the OCTD parking Garage at
Broadway and Fifth Street and the Agency provides that the
management fee shall be adjusted after the first fourteen
months of the Agreement. He added that for the remaining
term of the agreement, the management fee is determined by a
percentage of the monthly net income and that this
percentage is derived by dividing the monthly flat fee
($767.00) by the average net income for the thirteenth and
fourteenth months of the agreement ($542.00), He stated
further that this calculation would produce 141% which would
result in Systems Parking, Inc. receiving 100% of the net
income and would not produce any income to the Agency for
the remaining term of the agreement. He said that as a
result of this situation, Agency had negotiated an agreement
wi th Systems Parking, Inc. whereas they will continue to
receive the $767.00 management fee plus 25% of the net
income with the remaining 75% being retained by the Agency
in a separate interest bearing trust account. He added that
this money will be used by the Agency to finance expenses
incurred at any time during the first five years of
operation to the extent that the expenses are greater than
the revenues. He pointed out that Systems parking, Inc. had
agreed to this proposed amendment and that since it is
beneficial to the Agency, staff recommended its approval.
After a brief discussion, it was moved by Commissioner
Alleman, seconded by Commissioner Coil and carried
unanimously (5: 0) that the Commission recommend that the
Agency approve an amendment to the Management Agreement
dated April 20, 1981 between the Agency and Systems Parking,
Inc, for the management of the OCTD Parking Garage
structure.
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ACCEPTANCE
SITE
The Assistant Director of Redevelopment pointed out that
this property was orig inally acquired by the City for park
purposes and that it is now proposed that it be developed
for moderate housing, He added that the only way that the
Agency can proceed is to convey the property from the City
to the Agency, after which the Agency will issue a Request
for Proposal for market-rate housing. He pointed out that
the cost of acquiring the property would not be paid to the
Ci ty until such time as the Agency has reached an agreement
wi th the developer, and a resale of the property to the
developer has occurred.
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CITY OWNED SURPLUS PROPERTY - WEST RESERVOIR
After a Ienghty discussion in which the Commissioners were
assured by the Director of Housing that:
the project will serve towards the satisfaction of the
Agency requirement to use 20% of tax increment funds to
provide housing within the City;
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he did not anticipate encountering difficulty in
obtaining $3.19 per square foot (the appraised price)
for the land as soon as the Ci ty assisted with the
rezoning:
there would be 10 to 15 single-family units per acre:
one developer would handle the entire development:
the Agency has a list of 70 developers who have
expressed interest and that approximately 200 developers
would receive the Request for Proposal;
any profit on the transaction would go to the Agency.
It was then
Commissioner
Commission:
moved
Mack
by Commissioner Newcomb, seconded by
and carried unanimously that the
1.
Recommend that the Redevelopment Agency accept the
conveyance of the West Reservoir development site from
the City for the consideration of $1,235,000, to be
paid upon resale of the property by Agency: and
authorize the Chairman and Executive Director to
execute all necessary documents for acceptance of
title.
2,
Recommend that the Redevelopment Agency authorize staff
to solicit proposals for the residential development of
the West Reservoir site.
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REMOVAL OF DEBRIS WITHIN THE AMERICAN NATIONAL PROPERTIES
PHASE II DEVELOPMENT SITE, ASSESSOR PARCEL NO'S. 002-301-09.
14 & IS
The Assistant Director of Redevelopment stated that during
the past year unknown persons have been dumping various
materials on the subject property. that on May 7, 1983.
staff had the property fenced in order to eliminate the
dumping, and that this measure has been successful. He
added that due to the final alignment of the Broadway
Overpass and the impending transfer of the subject property
to American National Properties for the second phase of
their development. it is now necessary to have this debris
removed.
After a brief discussion, it was moved by Commissioner
Newcomb. seconded by Commissioner Alleman and carried
unanimously that the Commission authorize the Executive
Director of the Redevelopment Agency to issue a purchase
order for the removal of debris located on Assessor Parcel
No's. 002-201-09, 14 and IS to the lowest responsive bidder.
Hintz wrecking Co., Inc. in the amount of $8,500.00.
PROPOSED DIRECT COMMERCIAL LOAN PROGRAM
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The Assistant Director of Redevelopment asked the Financial
Services Manager to make a brief presentation of staff's
posi tion regard ing the proposed Direct Commercial wan
Program .
The Financial Services Manager pointed out that 9uring the
past three years, the Redevelopment Agency, in conjunction
with Wells Fargo Bank and the downtown property owners, has
implemented a $15.000.000 Commercial Rehabilitation Program
involving 29 projects encompassing over 500,000 square feet
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of commercial space and that the Agency, in cooperation with
the Economic Development Corporaticn, has succeeded the
Wells Fargo program with a highly successful program with
Mercury Savings and wan for projects in the $50,000 to
$250,000 range. He added that for projects above $250,000,
the Agency has implemented an Industrial Development Bond
(IDB) program for commercial rehabilitation for projects
from $250,000 up to $10,000,000 and that the Economic
Development Corporation recently funded a wcal Development
Corporation providing access to small business administra-
tion financing generally in the range from $250,000 to
$500,000. He added that projects larger than $500,000 will
be directed toward the IDB program. He stated that it had
been the Agency's experience that Mercury is unwilling to
fund commercial loans smaller than $50,000 and that this is
one area which has not been addressed but is needed by
commercial property owners who would like to renovate their
property by doing basic facade work, such as sandblasting,
painting, new display windows, awnings, marquees, or more
attractive signage. He added that such a building face-lift
can cost much less than the $50,000 minimum required by the
Mercury program and that such face-lifts could have a
dramatic visual impact in any given project area. He stated
that to meet the needs of commercial property owners whose
rehabilitation needs fall below $50,000, staff proposes a
direct, in-house commercial rehabilitation loan program
offering loans from $20,000 to $50,000 and that for projects
costing less than $20,000 staff proposes a commercial
rehabilitation rebate program, reimbursing various percent-
ages of facade improvements on a graduated scale from $0 to
$20,000 with the maximum overall rebate being $7,500. He
added that under the loan program, Agency funds would be
loaned at 10% interest per annum for commercial
rehabilitation projects costing from $20,000 to $50,000 with
monthly payments being based on a 20-year amortization with
a seven-year maturity. He stated that revenues from a 3%
loan fee, monthly principal and interest payments, and loan
payoffs will be reloaned thus requiring fewer Agency funds
each year with self-funding being attained within five
years. He added that the loans would be serviced by an
outside company and that target areas would be proposed in
downtown Santa Ana, strips along South Main and Fourth
Street.
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After a brief discussion period in which several of the
Commissioners expressed a wish to study the proposal
further, it was moved by Commissioner Newcomb, seconded by
Commissioner Coil and carried unanimously that consideration
of the proposed Direct Commercial wan Program be continued
to the Commission meeting of July 19, 1983.
MARKS REHABILITATION PROJECT - 402 W, FOURTH STREET
The Financial Services Manager gave a brief history of the
negotiations regarding this project and pointed out that the
Agency was unwill ing to expend further funds since no
progress was being shown in the proposed rehabilitation of
402 West Fourth Street.
.
After a brief discussion in which the Commissioners
ascertained that the Marks had received proper written
notice of the Agency's intentions in the matter, it was
moved by Commissioner Coil, seconded by Commissioner Mack
and carr ied unanimously (5: 0) that the Commission authorize
the Executive Director to send a notice of defaul t to Ronald
A. Marks and Blanche A. Marks pursuant to the Project
Agreement, dated December I, 1981, for the rehabilitation of
property located at 402 West Fourth Street,
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PHILLIPS/HUTTON
REHABILITATION
PROJECT - 301 305 W. FOURTH
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The Financial Services Manager stated that the proposed
Phillips/Hutton Rehabilitation Project at 301/305 West
Fourth Street was in the same category as the Marks Project
and that Agency was also unwilling to expend further funds
on it.
After a brief discussion in which the Commissioners also
ascertained that the Phillips/Hutton Group had received
proper written notice of the Agency's intentions in the
matter, it was moved by Commissioner Newcomb, seconded by
Commissioner Alleman and carried unanimously (5:0) that the
Commission authorize the Executive Director to send notice
of default to the Phillips/Hutton Group pursuant to the
Project Agreement, dated December I, 1981, for the
rehabilitation of property located at 301/305 W. Fourth
Street,
BUILDING PERMITS/MARCH 1-31, 1983
It was moved by Commissioner Newcomb, seconded by
Commissioner Mack and carried unanimously (5:0) that the
report on the Building permits for the period of March 1-31,
1983 be received and filed.
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ORAL COMMUNICATIONS - LETTER FROM MAS UYESUGI/A JEWEL -BOX
The Commissioners discussed a letter which had been received
from Mas Uyesugi, President of A Jewel Box, in which he
outlined what he considered to be financial hardships
resulting from the rehabilitation program being undertaken
in the downtown area. The Commissioners agreed that there
was no action that could be taken by the Commission on the
matter.
ADJOURNMENT
It was moved by Commissioner Coil, seconded by Commissioner
Newcomb and carried unanimously (5:0) that the meeting be
adjourned at 4:30 P.M. to the meeting of the Citizens
Advisory Board for the Marks Historical Rehabilitation
Financing Program,
e,
¿;f!-#
Thomas E. HammllI,
Ass't. Director of
Redevelopmen t
and Real Estate
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