The URL can be used to link to this page

Home My WebLink About10-18-2010 CRAMINUTES OF THE REGULAR MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, CALIFORNIA CALLED TO ORDER ATTENDANCE: OCTOBER 18, 2010 POLICE COMMUNITY ROOM 60 CIVIC CENTER PLAZA SANTAANA, CA 7:02 P.M. AGENCY MEMBERS Present: MIGUEL PULIDO, Chair CLAUDIA ALVAREZ, Vice Chair P. DAVID BENAVIDES VINCENT F. SARMIENTO CARLOS BUSTAMANTE MICHELE MARTINEZ SAL TINAJERO AGENCY MEMBERS Absent: None STAFF Present: CYNTHIA J. NELSON, Executive Director JOSEPH FLETCHER, Agency Counsel MARIA D. HUIZAR, Recording Secretary PUBLIC COMMENTS - See City Council Meeting Public Comments CONSENT CALENDAR MOTION: Approve staff recommendations on Consent Calendar Items 1A through 2. MOTION: Alvarez SECOND: Sarmiento VOTE: AYES: Alvarez, Benavides, Bustamante, Martinez, Pulido, Sarmiento, Tinajero (7) NOES: None (0) ABSTAIN: None (0) ABSENT: None (0) CRA MINUTES 1 OCTOBER 18, 2010 1A. MINUTES OF JOINT SPECIAL MEETING OF SEPTEMBER 27, 2010 MOTION: Approve revised Minutes. 1B. MINUTES OF REGULAR MEETING OF OCTOBER 4, 2010 MOTION: Approve revised Minutes. 2. EXCUSED ABSENCES - None *** END OF CONSENT CALENDAR *** BUSINESS CALENDAR 3. MODIFICATIONS TO THE DOWNTOWN FAQADE IMPROVEMENT REBATE PROGRAM Agency members Sarmiento, Benavides, and Tinajero noted potential Conflicts of Interests for the record. Member Sarmiento abstained on Item due to a potential Political Reform Act conflict of interest because he represents clients with real property potentially affected by the action and in close proximity to the projects which are affected by the action. Due to potential campaign contribution conflicts of interest, Members Benavides and Tinajero abstained. They all left the room and did not participate in the discussion. City Attorney Fletcher noted for a campaign contribution conflict to exist under Charter Section 425 that contributor must have a direct, foreseeable financial interest and not a mere possibility involved in the decision. He clarified that it is too speculative to find that merely because Councilmember Martinez received a contribution from Stewart Sound Inc. which is owned by an individual, whose family trust also has a partial interest in a company that own a building located in downtown Santa Ana, to create a conflict where the company has not applied for a fagade rebate in the past or expressed any intention to do so. In the case of Mayor Pulido, who had abstained in the past for possible conflict in property interest, he noted that the fagade easement program does not cover the muffler shop property therefore the Mayor does not have a conflict. Vice Chair Alvarez, supports the Rebate Fagade Program, but expressed disappointment as to how the program has been handled and how staff has failed to notify all businesses. Opined that only the Downtown Inc. Board had been notified and not all businesses given an opportunity to participate. Requested that staff provide information in three languages - English, Spanish, and Vietnamese. In comparison, the South Main Street Area Program was a success and noted the difference in results. The legislative intent of the Rebate Program was to assist CRA MINUTES 2 OCTOBER 18, 2010 businesses that did not have financial means to make the improvements otherwise. The Review Committee denied some applications from businesses that had made improvements because the process was not followed. Concerned that City did not advise Council/Board that money was in account that could have been used for other purposes when economy took a turn. Also, per City Charter all contracts over $25,000 must be submitted to Council for consideration and this project exceeds those limits with no Council/Board review. Council/Board protecting the public's interest, asked Mr. Chase to put commitment to City on improvements in writing (attached hereto). Support the commitments made by staff in exchange of improvements by Mr. Chase of $4.125 million. Made reference to the amounts and need to have them corrected in the letter (see attached original and corrected letters). Motion to approve $600,000 for Chase properties and $165,000 for Rangel building, deposit balance into an account, establish a committee to make sure the process is clear and all businesses have equal opportunity to participate, and have committee come back to the Board. Agency member Martinez expressed the need for transparency. Council/Board will continue to work with staff and community on issue. City Manager requested to work with staff to provide Council/Board with all information needed to make knowledgeable decisions. Mayor Pulido indicated that many groups have been involved in the program over the years and may have caused confusion and inconsistencies. Staff had authorization to move forward with original program, but program now requires modifications. Motion honors commitments made by staff. Mr. Chase willing to renovate The Paseo to move project forward. Rebate Program is partnership between City and businesses. Full support of the motion especially the formation of a committee. Vice Chair Alvarez asked staff for details on the process used to notify the public of the facade program several months ago and had not received evidence of a fair process. Vice Chair Alvarez directed the City Manager to agendize an Item 85A on the next City Council meeting agenda to have a policy that all expenses over $25,000 be submitted to the City Council for consideration. Vice Chair Alvarez requested that the Letter of Commitment (with agreed modifications) addressed to Ms. Nelson from Irving Chase to spend $4.125 million dollars in improvements be entered into the record (refer to attached letter). MOTION: 1. Approve the rebates for the Chase Buildings in the amount of $600,000, and the Rangel Building in the amount of $165,000. CRA MINUTES 3 OCTOBER 18, 2010 2. Balance (of the CRA account for the rebate program) be placed into an account. 3. Establish an Ad Hoc Committee comprised of Chair Pulido, Vice Chair Alvarez, and Agency member Martinez to develop a process (for program) and make rules clear, have equal opportunity (for all businesses to participate), and come back to the Board with recommendations. MOTION: Alvarez SECOND: Martinez VOTE: AYES: Alvarez, Bustamante Pulido, Martinez (4) NOES: None (0) ABSTAINED AND Benavides, Tinajero, Sarmiento (3) NOT PRESENT: ABSENT: None (0) COMMENTS 4. AGENCY MEMBER COMMENTS - None ADJOURNED - 7:35 P.M. Maria D. Huizar, Recording Secretary CRA MINUTES 4 OCTOBER 18, 2010 ORIGINAL LETTER SUBMITTED FIESTA MARKETPLACE PARTNERS C/O 5 & A PRCPERT-IES 129 W. WILSON( 5T. SUITE 1001 COSTA MESA, CA 92627 449-722-7400 949-722-8855 FAX October 10, 2010 Cynthia J, Nelson, Deputy City Manager City of Santa Ana Communit, [development Agency ?0 Ovir (Pntr.r Playa - Pi7St O ictk &rx 1998 - M-25 Santa Aia, CA 92702 RE. City of $anta Ana Facade Rebate Procrani Fiesta Marketplace Partners One and Two Rayffl0r'd orid Duli, Rdn rl Dear Cindy This letter will serve to memorialize the agreement .hat the Fiesta Market)lace Part-iers One and Two and Ray,-nond and Delia Rangel have reachal w'th the City corcerning the Cit, rs Fa?adc Rebate Program. The Testa Marketplace Partners and Raymond and Celia Rangel will invest; in their respcctlve properties, approxrr,atzly J-1,125,000,00 and will receive from tfre City- I'a5ade Program spprmdrnatety $€125,000.00 (Casn contribution zrom Fiesta Marketplace Pofliiur Onu Arid Two is 53,245,000.00 and Rz}wi rnd and Della Rangel is x:55,000.00). Exhibit W, attached heroes, sc'-t5-forth detall of these experidltures. The Fiest Marketplace Partners shati invest an Estimated $580,OW.00 to renovate the. public gathering area currently known as "The Paseo". Tie C Ly ovens a part of The Paseo that front the City-owned surface packing lot at Third and Bush Streets, The Fiesta Marketplace Partners will renovate The Pasea at its' cY,rn experrse and not seek reimbursement from the City for the approximately one-fnUrth of renovation costs, which translates to about ?120,ry00.t10, that veuud be apport=oned to the pane-fourth of Th-, Pasco that the City owns. Slncerety yours, Fiesta Marketplace Partners One and Two Raymund and Del a 4angel B'yr: Irvinq M. Chaste, General Partner tr: Alan Fainharc Ryan Chase Raymond anti Clelia Rarngel Dav d scheppers, CPA CRA MINUTES 5 OCTOBER 18, 2010 ? r' h rl Fiesta Rodeveloriment Cast Estimates FccadLs: Bu11tfir4B4;1 122L1 LOSL 1.i St.)' 332[7,1fM ($180,000 rFba'.011 Building #2 +,M Esat 1 "h 5t.); S745,XX ,$.400,000 rcb-I:L-} building#3 (3Ub Ld{l •1" %1.)- $ 35.cx?tt {5535,)00 rehntc Duildin?;#,1 i300 Last 1"!A j. ; 22r0,?JNJ ;$155,000febate; - iaVmond ar it bulia Hri qupa FT.lih ir7 Ictal F3ad? Cca;ts; Si,S?t?,014 PrnrTWmiJO: hTrprnvemcnts; Yust Ottupanq- and Structural Upgradrs ,3017 N. Spurgeon 5t.): ti25J,0L)c WU Shell hrpiovernanb, JAM N. Spurper)n St.): ?')W,001) K-1?65eIman BUildir195hc11 1rnpr'ovC-,mc11Ls ;320 Ca3L 4?' SL.): ?1--A)0. 700 Total Irn 3rovernent5;: $1,350,000 Total C=s: f'r`o Yr1?rrdcla: S58{},d+JiJ ' . IInprov2mcifls: $1,TP0,110(l Ta)tylProject Cysts:' 3,750,DDO + 1(1'.A vuritingency: 5375,000 70TAL. $4,115,000 TOTAI, S3r300,000 Fxhibit A CRA MINUTES 6 OCTOBER 18, 2010 CORRECTED LETTER mro FIESTA MARKETPLACE PARTNERS QtQ S & A PRORE4TIEJS 129 W. WILSON ST. Sul If: 1010 COSTA MESA, CA 92627 949-722-74013 949-722-8855 FAX October 18, 201€1 Cynthia J. Edelson, Deputy City Manager City of Santa Ana Community Develcpment Agency 20 Civic C'e iter Plaza - Post Office Box 1988 - V-25 Santa Ara, CA 92702 RE: City & manta Any Facadc `Tubas Program ricsta Marketplace ParL-iers One and Two Rxoyirwrid and D0,a RangLd 'This letter will serve to memorial ze the ag-eement that the Fiesta Marketplace Partners tine and Two and Raymond and Delia Rangel have reached with, :he City onnoerning the City's =arade Rebate Frrogram, The Fiesta Marketplace Partners and Raymund and Delia Rangmal will invest, in their respect-ve prapcrtics,approximately 5,1,125,000,00 and will rctcivre =rorn the Ci y`s fa?ade Program aup oximatnly $70,000.00 (Cash contribution from Fiesta Marke_place Partner 09)2 aild Two is $3,305,00G.W and Rayirnond and D01ta Rencel is $55,303,00), thlblr ".A", amchcd hcra.a, sets-forth drytarl of these mpenditures. Tho Fiesta Marketplace Partners shalt Irwest an esdrna_ed $580,00M0 to renovate the public, gather nra area wtre,itIV knoavn as "The Faseo°. The City owns a part of The Pasch that fronts the Q-ity-ownedl surface parking lot at Third and Bush Strcc.ts. The Fiesta Martc-.tplace Partners W11 -enovate The Paseo at its' ovm oxhQnse ind rant sack reirnhurs?ment from the Cty for the approximately one-faEurth of re11-rrdal on costs, which translates to about $160,000.00, that would to ap:)a-tianed to the am!-towth of The Pa:seo that the Oty own.-. Sincere )6c,u1s, Fest aricc' ace Partners one artd Two Fray and and lia Range) BY: Irving M. Chase, Gene-al Partner cc Allan Fainbarg Ryan Chase Raymond and D,2'1@ Rarlgel David Scih2poo -,, CPA CRA MINUTES 7 OCTOBER 18, 2010