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Home My WebLink About06-07-2010 CRAMINUTES OF THE SPECIAL MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, CALIFORNIA JUNE 7, 2010 CLOSED SESSION MEETING CALLED TO ORDER CITY HALL 20 CIVIC CENTER PLAZA, ROOM 831 SANTA ANA, CALIFORNIA 5:12 P.M. ATTENDANCE AGENCY MEMBERS Present: MIGUEL PULIDO, Chairperson CLAUDIA ALVAREZ, Vice Chairperson (5:22 P.M.) P. DAVID BENAVIDES CARLOS BUSTAMANTE MICHELE MARTINEZ VINCENT F. SARMIENTO SAL TINAJERO (5:30 P.M.) STAFF Present: DAVID N. REAM, City Manager JOSEPH FLETCHER, City Attorney MARIA D. HUIZAR, Recording Secretary PUBLIC COMMENTS -None OPEN SESSION Pursuant to Section 54954.2(b) (2) of the Brown Act, the Council may add an item to its agenda upon a determination by atwo-thirds vote of the members of the legislative body present at the meeting, or, if less than two-thirds of the members are present, a unanimous vote of those members present, that there is a need to take immediate action and that the need for action came to the attention of the local agency subsequent to the posting of the agenda The City Attorney advised the City Council that written communication has been received from Susan Brandt-Hawley and the Briggs Law Corporation raising legal challenges to the Transit Zoning Code EIR which is on the agenda for certification this evening. The City Attorney recommended the following agenda item be added to the Closed Session Agenda: CRA MINUTES 1 JUNE 7, 20'10 MOT/ON= Find that there is a need to add a matter that arose subsequent to the posting of the Agenda. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION pursuant to Government Code Section 54956.9(b)(1 ). Potential challenges to the Transit Zoning Code EIR by Friends of Lacy Historic Neighborhood and Citizens for Responsible Equitable Environmental Development. MOTION: Bustamante VOTE: AYES NOES SECOND: Benavides Benavides, Bustamante, Martinez, Tinajero (4 ) None (O) ABSENT: RECESSED TO CLOSED SESSION CLOSED SESSION ITEMS Alvarez, Pulido, Sarmiento (3) Mayor Pulido, Mayor Pro Tem Alvarez, and Councilmember Sarmiento excused themselves from the proceedings of Agenda Item 2A and 2B due conflict of interests and did not participate in consideration of these items. They left the room at 5:56 p.m. 2A CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government Code Section 54956.8. Property: Agency-Owned properties and properties under purchase agreement in the area bounded by Santa Ana Blvd. on the north, Poinsettia St on the east, Brown, 5th and 4th Sts. on the south and Minter St. on the west including: 501 , 505, 51 1 , 601 , 606, 607, 61 O, 615, 616, 620, 621 & 712 E. Fifth St.; 602, 609, 618, 619, 622, 623, 625, 626 & 630 N. Garfield St.; 601 , 604, 605, 606, 609, 61 1 , 614, 620 & 622 N. Lacy St.; 612, 614, 622, 626, 714 & 804 E. Santa Ana Blvd.; 601 , 602, 609, 617, 709, 71 O, 71 1 , 714 & 720 E. Sixth St.; 801 , 809, 901 & 905 Brown St.; and, 611 N. Minter St. Agency negotiator: Cindy Nelson, Executive Director Party with whom negotiating: Related California/Griffin Realty Corp. Under negotiation: Terms of Sale and Development of Property CRA MINUTES 2 JUNE 7, 20'10 2B CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION pursuant to Government Code Section 54956.9(b)(1 ). Potential challenges to the Transit Zoning Code EIR by Friends of Lacy Historic Neighborhood and Citizens for Responsible Equitable Environmental Development. ADJOURNED 6:24 P.M. CRA MINUTES 3 JUNE 7, 2010 MINUTES OF THE REGULAR MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, CALIFORNIA JUNE 7, 20'10 CALLED TO ORDER ATTENDANCE: COUNCIL CHAMBER 22 CIVIC CENTER PLAZA 7:45 P.M. AGENCY MEMBERS Present: MIGUEL PULIDO, Chairperson CLAUDIA ALVAREZ, Vice Chairperson P. DAVID BENAVIDES CARLOS BUSTAMANTE MICHELE MARTINEZ VINCENT F. SARMIENTO SAL TINAJERO ABSENT: None STAFF Present: DAVID N. REAM, City Manager JOSEPH FLETCHER, General Counsel CYNTHIA J. NELSON, Executive Director MARIA D. HUIZAR, Recording Secretary CONSENT CALENDAR MOT/ON: Approve staff recommendations on the following Consent Calendar items. (Items 1 through 3) MOTION: Martinez SECOND: Alvarez VOTE: AYES: Alvarez, Benavides, Bustamante, Martinez, Pulido, Sarmiento, Tinajero (7) NOES: None (O) ABSTAIN: None (O) ABSENT: None (O) CRA MINUTES 4 JUNE 7, 20'10 1. REGULAR MEETING OF MAY 3, 2010 MOT/ON: Approve Minutes. 2. EXCUSED ABSENCES -None 3. QUARTERLY REPORT OF CONTRACTS ENTERED INTO BY THE EXECUTIVE DIRECTOR MOT/ON: Receive and file the Quarterly Report of Contracts entered into between January 1 and March 31, 2010, valued at $25,000 and less. ~~~ END OF CONSENT CALENDAR """ BUSINESS CALENDAR 4. APPROVAL OF PRE-QUALIFIED ENVIRONMENTAL CONSULTANT LIST TO PROVIDE ENVIRONMENTAL SERVICES AND TECHNICAL STUDIES MOT/ON: Approve the following list of pre-qualified consulting firms to provide environmental services and related technical studies for the Community Redevelopment Agency at the fees set forth in their responses to a Request for Qualifications and authorize the Executive Director and Agency Secretary to execute agreements, in substantial conformity with the attached agreement in an aggregate total amount not to exceed $500,000. MOTION_ Martinez SECOND: Sarmiento VOTE: AYES: Alvarez, Benavides, Bustamante, Martinez, Pulido, Sarmiento, Tinajero (7) NOES: None (O) ABSTAIN: None (O) ABSENT: None (O) CRA MINUTES 5 JUNE 7, 2010 PUBLIC HEARING 5 PUBLIC HEARING -FIVE-YEAR IMPLEMENTATION PLAN Recommended action approved by the Community Redevelopment and Housing Commission on May 18, 201 O, by a vote of 5-O. Legal Notice published in the Orange County Register on May 6, 13, and 20, 201 O. Public Hearing opened at 7:45 p.m. There were no public speakers and the hearing closed. MOT/ON: Approve the Five-Year Implementation Plan for the merged redevelopment project areas covering fiscal years 2010-2011 through 2014- 2015. MOTION: Sarmiento SECOND: Bustamante VOTE: AYES: Alvarez, Benavides, Bustamante, Martinez, Pulido, Sarmiento, Tinajero (7) NOES: None (O) ABSTAIN: None (O) ABSENT: None (O) COMMENTS 4. COMMUNITY REDEVELOPMENT AGENCY MEMBER COMMENTS - None ADJOURNED - 7:45 p.m. COUNCIL RECESSED TO A JOINT SESSION BETWEEN CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY MEETING AT 8:32 P.M. Chair Pulido excused himself due to proximity of business; Vice Chairperson Alvarez excused herself due to a campaign contribution; and Board member Sarmiento excused himself due to his legal representation of some residents in the immediate area -all left the dais at 8:33 p.m. and did not participate in consideration of these items. CRA MINUTES 6 JUNE 7, 20'10 MOT/ON: Appoint Boardmember Bustamante to Chair the meeting (pursuant to SAMC 2-101 due to unavailability of Chair and Vice Chairperson). MOTION: Martinez SECOND: Benavides VOTE: AYES: Benavides, Bustamante, Martinez, Tinajero (4) NOES: None (O) ABSTAIN: None (O) ABSENT: Alvarez, Pulido, Sarmiento (3) AGENDA ITEM TAKEN OUT OF ORDER -CITY COUNCIL MEETING RECONVENED AT 8:33 P.M. TO CONSIDER PUBLIC COMMENTS PUBLIC COMMENTS - None COUNCIL RECESSED TO A JOINT SESSION BETWEEN CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY MEETING AT 9:05 P.M. JOINT SESSION WITH THE COMMUNITY REDEVELOPMENT AGENCY 5A JOINT PUBLIC HEARING -FINAL ENVIRONMENTAL IMPACT REPOT NO. 2006-02; GENERAL PLAN AMENDMENT 2010-01; ZONING ORDINANCE AMENDMENT NO_ 2010-01; AMENDMENT APPLICATION NO. 2005-09 (TRANSIT ZONING CODE); DISPOSITION AND DEVELOPMENT AGREEMENT WITH SANTA ANA STATION DISTRICT, LLC AND VARIOUS ACTIONS FOR PROPOSED DEVELOPMENT IN THE STATION DISTRICT Legal notice pertaining to the Transit Zoning Code published in the O.C_ Reporter on May 28, 201 O. Recommended actions approved by the Planning Commission on May 27, 2010, by a vote of 5-O. (Commissioner Betancourt abstained and Commissioner Yrarrazaval absent) Legal notice pertaining to the Santa Ana Station District, LLC published in the O.C. Reporter on May 24, 201 O and June 2, 201 O. CRA MINUTES 7 JUNE 7, 20'I O Staff report presentation by Karen Haluza, Planning Manager, and Cindy Nelson, Assistant City Manager for Development Services Transit Zoning Code and Development Proposal for Redevelopment Agency Properties Transit Zoning Code - Walk-able neighborhoods - Flexible mix of uses - Standards for quality architecture - Affordable housing incentives Transit Zoning Code Project Objectives - Provide a transit-supportive, pedestrian-oriented development framework to support the addition of new transit infrastructure - Preserve and reinforce the existing character and pedestrian nature of the City by strengthening urban form through improved development and design standards. - Encourage alternative modes of transportation, including the rail system that connects San Diego to Los Angeles. - Provide zoning for the integration of new infill development into existing neighborhoods. - Provide for a range of housing options, including affordable housing. - Allow for the reuse of existing structures. - Allow development of the Agency properties Development Proposal Objectives - Redevelop all of the Agency-owned properties - Provide new affordable housing for families in furtherance of the City's affordable housing goals established in the Housing Element, the Implementation Plan for the Santa Ana Merged Redevelopment Project Area, and the City of Santa Ana Consolidated Plan. - Enhance the streetscape and urban form of the area, particularly along Santa Ana Boulevard, with the construction of new buildings that meet the standards contained in the Transit Zoning Code and that support future transit planning. - Eliminate blight. - Provide additional public open space and facilitate a joint use arrangement with SAUSD for a new community Center. - Provide an economically viable redevelopment scenario for the Agency-owned properties. Environmental Impact Report - Draft EIR Released for public review on February 2, 2010. - Alternatives Section revised to analyze three additional alternatives in response to a comment. - Alternatives Section re-circulated and public review period extended to April 12, 201 O. - Public comment meetings held on February 22 and March 22, 201 O. - Total of 16 comment letters and 14 transcribed oral comments. CRA MINUTES 8 JUNE 7, 20'10 - Final EIR - Response to Comments - Mitigation Monitoring and Reporting Program - Findings of Fact - Statement of Overriding Considerations EIR Alternatives Analysis - Alternative 1 - No Project/No Development - Alternative 2 -Overall Reduced Density - Alternative 3 -Low-Rise Project - Alternative 4 - Rehabilitate in Place/Acquire No Additional Properties - Alternative 5 - Relocate and Rehabilitate on Agency-Owned Infill Sites - Alternative 6 -Rehabilitate 61 1 N. Minter Street In Place Statement of Overriding Considerations - A written statement explaining why the benefits of the project outweigh the identified environmental impacts Project Benefits - Positions the City to provide new public transit - Allows for the development of new affordable rental housing - Complies with State mandates to address climate change and housing production - Improves the regional jobs/housing balance - Creates more walk-able and connected neighborhoods - Eliminates blight - Provides new incentives for economic investment - Provides more flexibility for private property owners Planning Commission Action - Planning Commission recommended approval of the various components of the project. - Clarification on comment regarding potential demolitions. Station District Project Overview Project Goals - Create a land use/economic strategy for the area in and surrounding the SARTC to complement City's transit vision - Develop a mix of housing types at various levels of affordability - Set the standards for the quality of future development in the area - Address the needs of the Lacy Neighborhood The Journey - Issued RFQ in April 2009 - Selected Related Companies/Griffin Realty in August 2009 - Highly qualified team with wide range of experience: • Affordable housing to luxury high rise housing • Retail, commercial and office • Public facilities • Community engagement - Began community input process before first concept plan created CRA MINUTES 9 JUNE 7, 20'10 - Key issues raised by community: - ParWopen space • Affordable housing - Child care • Garfield School condition & capacity - Safety and Livability - Cultural history • Family services and programs, including jobs - Concept Plan presented to community, which included: • Mix of for sale and for rent products at various income levels • Community Center at Garfield (in conjunction with school renovation) • 1 .5 acre parWopen space uses - SACRed Key Issues: • Safety - Housing - Open Space - Small Business Assistance • Cultural and Historical Preservation - Commitments to Lacy Neighborhood: - Provision for child care space in R-1 community room • Public art - Reduced rent for business operator in R-1 commercial space • Historical markers - $60,000 • Targeted loan program in Lacy - $100,000 • Joint Use Agreement w/SAUSD for Garfield • 10,000 SF Community Center at Garfield Elementary - Commitment to pursue development of approx. 1.5 acre parWopen space uses • Relocation plan for potential displaced residents - Inclusionary Housing Ordinance to Council w/in 120 days for overlay zone The Project - R-1 74 rental units - R-2 38 rental units - 100% affordable (50% AMI w/20% at 30%AMI); 55 year covenants - F-S 32 for sale units - 6 units affordable at 120% AMI Elevations for R-1 , R-2 and For Sale depicted Project Schedule - R-1 Commence 3/11 - R-2 Apply for Spring 201 1 tax credits - F-S Commence early 201 1 Public hearing opened at 9:40 p.m. The following speakers addressed the Council: CRA MINUTES 10 JUNE 7, 2010 • Ross Romero -representing LULAC 3097; object to passage of plan and Transit Zoning Code; concerned with inadequate response to air quality, toxic and hazardous waste, traffic, and open space. • Simon. Deter -questioned new zoning changes as it relates to height district, no designation for HD2; inquired on inclusionary housing ordinance. • Joe Dixon -Assistant Superintendent of Facilities at SAUSD, supports Council's vision for increasing green space at Garfield Elementary; joint use community center of great benefit for all. • Larry Haynes -Executive Director of Mercy House, supports improved living conditions for the poor. • Barry Cottle -supports council actions proposed. • Bob Stewart - representing Empire Inc., supports project and impressed with growth and improvements throughout the City. • Vicky Baxter -read for the record letter of support by the Downtown Inc. Board of Directors. • Lisann Martinez - opined that development should employee city residents; Council to sign the Community Benefits Agreement (CBA). • Carmen Garcia - area in need of improvements; request council support to solve issues. • Antonio Bugarin -concerned with welfare of family as City proposing park in area where he lives: request Council sign CBA that guarantees affordable housing, preservation of cultural identity, history, affordable housing, park and open space, protection of small businesses and employees, and safety for community. • Maria Andrade -urged community to work together; requested Council postpone decision. • Ramon Guzman - requested council postpone decision; would like assurance that park and community center will be developed. • Paola Salgado -requested council postpone decision and sign CBA; support project with certain community guarantees: questioned agenda order and late consideration of matter. • Claudia Brena -encouraged council to postpone decisions and sign CBA. • Eunice Bobery - representing Orange Housing Corporation, Transit Zoning Code to provide long term benefits to the community, encouraged to find that open space, community facility, and affordable housing incorporated into Plan_ • Eric Altman - Executive Director of Orange County Communities Organized for Responsible Development, discussed benefits of CBA, encouraged council to continue negotiations with community. • Ramona Rivera - 50 year resident would like to know impacts of plan on neighborhood. • Jeff Dickman -resident of French Park neighborhood and member of Friends of Historic Lacy Neighborhood; opined that Plan fails to address .renovation of vintage homes; Council to reject EIR and ask staff to include comprehensive process for evaluation of properties to CRA MINUTES 11 JUNE 7, 2010 be included in Historic Registry; rehabilitate homes instead of demolish; homes to be available to SACReD residents. Phil Chinn -commented on EIR findings -less expensive to renovate than reconstruct homes; historical building guide to be considered; reduction in the number of overall homes in the area; preservation of homes may be done by outside organizations; thanked council for investments made to Westend Theater and Spurgeon building; support SACReD and its residents. Ben Grabiel -support zoning changes, but in opposition to demolition and acquisition of additional properties; cost analysis report distributed to council. MEETING RECESSED AT 10:25 P.M. AND RECONVENED AT 10:45 P.M. WITH SAME MEMBERS PRESENT Jay Trevino, Executive Director of Planning and Building, clarified that proposed overlay zone ordinance carry over all current zoning and land use standards, including height the district; council considering transit zoning ordinance, not specific plan. William Boost, project manager and consultant with PBS&J Inc. apologized for error pointed out by LULAC -page 10-43 of Final EIR will be corrected; page 9-19 present toxic and hazardous waste findings; Traffic Study on page 9-77 has corrected information on appendices; provisions of parks on page 9-32, all projects will conform with Mitigation Measure MM4.1 O-5, Chapter 35, Article 4 of Santa Ana Municipal Code. Karen Haluza, Planning Manager, indicated that concerns raised by Jeff Dickman have been incorporated into the Response to Comrnents received from Brandt-Hawley Law Group in the Supplemental Addendum. Kathleen Haden, Managing Principal at Keyser Marston responded to questions on affordable housing as posed by letter from Susan Brandt- Hawley received today and by members of the public - total cost per square foot, per unit basis was incorporated in the EIR rehab cost / relocation cost; EIR Appendix J; summary of sale results. The hearing closed at 11:15 p. m. Council discussion ensued. Unanimous support of project and improved living conditions said development will provide. MOT/ON: Amendments to the Final EIR No. 2006-02, General Plan Amendment No. 2010-01 , and Amendment Application No. 2005-09 (Transit Zoning Code) included in Supplemental Staff Report: • Amendments to the General Plan Land Use Element as to Flood Control CRA MINUTES 12 JUNE 7, 2010 • Amendment to the Transit Zoning Code Street Network Concepts as to bus/transit stops • Supplemental Response to Comments • Amendment to the Findings of Fact • Additions to the Mitigation Monitoring and Reporting Program 1. Adopt a resolution as amended by Supplemental Staff Report. CRA RESOLUTION NO. 2010-002 - A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ADOPTING CEQA FINDINGS OF FACT AND A STATEMENT OF OVERRIDING CONSIDERATIONS, ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM, APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND SANTA ANA STATION DISTRICT, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND MAKING FINDINGS IN CONNECTION THEREWITH 2. Authorize the Executive Director and Agency General Counsel to execute agreements for the acquisition of real property located at 609 E. 6th Street (APN No. 398-311-06) from Frank J. Segura and Brandon McGuinness for $230,000; 613 E. 6th Street (APN No. 398- 311-07) from Frank Segura and Dolores Segura for $400,000; and 617 E. 6th Street (APN No. 398-311-08) from the Estate of Alice McCallum, Estate of Phyllis Robinson, Estate of Manuel Becerra, Steven Campbell, Frank Segura, Brendon McGuinness, Richard Becerra and Rita Barron for $115,000, for a total amount not to exceed $745,000, plus normal escrow and closing costs, subject to non-substantive changes approved by the Agency Counsel and Executive Director. Authorize the Executive Director to pay real estate brokerage fees to Voit Commercial Brokerage in an amount not to exceed 3% of the purchase price. 3. Authorize the expenditure of up to $60,000 for cultural/historical markers to be installed in the public right of way within the Station District in collaboration with SACReD. 4. Direct staff to prepare, within 90 days, a Relocation Plan for residents that may be displaced resulting from any applicable Agency acquisitions as it relates to the Station District. 5. Authorize the expenditure of up to $180,000 for down payment assistance to six affordable homebuyers. 6. Direct the Executive Director to establish a targeted residential loan program for the Lacy Neighborhood and authorize the expenditure of up to $100,000, cumulatively from various funding sources. CRA MINUTES 13 JUNE 7, 2010 7. Direct staff to prepare and file a Notice of Determination (NOD) with the County Clerk of the County of Orange, in the manner required by law. MOTION: Martinez SECOND: Tinajero VOTE: AYES: Benavides, Bustamante, Martinez, Tinajero (4) NOES: None (O) ABSTAIN: None (O) ABSENT: Alvarez, Pulido, Sarmiento (3) CITY COUNCIL MEETING RECONVENED AT 11:15 P.M. WITH SAME MEMBERS PRESENT ,, =%~~~il~t~- ~rc~' "cam Maria D. Huizar, Recording Secretary CRA MINUTES 14 JUNE 7, 2010