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Home My WebLink About01 - MINUTES 10-18-2010MINUTES OF THE REGULAR MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, CALIFORNIA OCTOBER 18, 2010 CALLED TO ORDER POLICE COMMUNITY ROOM 60 CIVIC CENTER PLAZA SANTAANA, CA 7:02 P.M. ATTENDANCE: AGENCY MEMBERS Present: MIGUEL PULIDO, Chair CLAUDIAALVAREZ, 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) 1-1 ~.RA MINUTES 1 OCTOBER 18, 2010 1A. MINUTES OF JOINT SPECIAL MEETING OF SEPTEMBER 27, 2010 MOTION: Approve revised Minutes. 1 B. 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 FACADE 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 L 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. 1-3 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 1-4 CRA MINUTES ;<' `•' 4 OCTOBER 18, 2010 ORIGINAL LETTER SUBMITTED Octether 18, 2010 ~ytrkhia J, Nelr, Deputy' City Ai7~e1` Gih/ rf Santa Ana Cammtanft~ C3QVF;le7pm4ntAyency 70 Csvir Cartier Plaza = RTrs? [7€fice &nc 1988 -1~1-Z5 Santa Ana. Ct 94702;... f',E: Ok~/ pf Senka Ana Fa~adc Rebate Pmearam PieskaMbrket~3neePartmersOnear~dTv~v Rayniur~d anal D~li~ Rartyr.W t3ea€ Gndy Sy: truing M. Chase. Ger~ernl Partnr~r rr.. Rian Felitihnrn R~y~an Chase Ray/mend and Delta Rangef Dated Scfiep~crs, CPA 1-5 CRA MINUTES 5 OCTOBER 18, 2010 Stncerey yours, Fresta Markegrlaze Payers C>ne and 'f`n'a ka~~rnond and Del a Rangef +=~L~jr~,t~^~E ~E~;aR~rd~ye[u~rrl~ntCost~stimat~s t ;h ~, , , .fades: ~, i Buit~ircB~EItzOLastda se;j:33'LD,b(7fi(SiSU,UUOrEbatxj '' is I 1:4~~ Buildin~lr2~PUlEastd's5t;1:5745,{It3~{$3bU,040Yctrak~a Il I r , 3 EfuldinL#3 f,t)S ta3t •lr' Si:} $535;i1U11 {$535,000 rebatcF ~ 7 l Ct'ul7elin~#+1(~~47Last~lr'St~;y222F,UU(1'ti$3.65,400x,chate}-'3aymontlard.C7uliaK.,ulyH~,FSrrilrGnR IGtal Fa~adv Crl,t~. S1,s29.C{b . ra3ne a:1e: Y 1_~YlyfmyHmC11t5! Yusi Ottuparyry and Structural U{7^prarlPr ;30i h. SprrcReon 5t ): :iz'S 9,0tltt ftit2 Shell irr Nri<ruarnanLs {;i03 N. Spucsenn Sk.j• $:SM},U[A1 lwt~asselrnan 6uilding5hrll lintaesrvicerrents ,320 Cust4e'5L.): SGff0,LJQI1 Total IIri N9'/erA4nt5: S~r~~U,UU4 ~ Tr.+tpl Corso .. ; , ~ ~q.'.ad~s: 51.820,1100' : ; Pramenad=_: 5580,i1~1 ' ` , r , ItTQfOYCin Cnlti_.~`1,i'rb,tli]{1. total t'mject Cmsts Sa,; 50;700 + 1ttPa +wntih eency. 5375,Up0 TOTAL: $d,125pb0 - Fade Iteba~e SS~)~~1 [ , TQTAL; SS.3t}O;OOq Exhibit ii 1-6 CRA MINUTES 6 OCTOBER 18, 2010 CORRECTED LETTER mro FIE~'A F~IARKETPWCE PARTNERS `C,~'O S & A P#OPE~iTIES i29 Ysl. ~^1f1.5t}N ST SLMi j l= lU{1 G4lS`C°~, M~5A, ~A 12b27 949.722-7400 949-722=885 FA.X:, cacCabet 18, 2010 Cynl h~ J. tJe~on, ti~puty Gty "Managfr City+ot Santa Ana r;ammui'iit}r I7evelcgtment AcJfrxy 20 +Civir. Cuter Piaza - Pest Ofl9rc Sax 1988 N 25 : Santa Ara, CA !92702 i7~: Ciky nF Ssnr~ Acts Fsgsde gebaTe pengrsm Ciesta fMbrPrtetplac~ ParL~ers Cane and Twa f~aynrunsl acid l]t;lia Raryef This Inlfar ~,~dli ervr'triy to msvmnr~nl ie ifr[ sneraomarvF iF:yh llre Kiwi--.r' ldoebatnfa.~ O7rinnrt. e Pari:nel'~ Csna and 7buii I!a xange) 8y. Itti'iR9 M. G9~se, Gerteal Far#ner cc Allari FainGarg #yan Chase Raymstrtd and lSel7a #angel Davitl ^,xh^_~nx s, CPA 1-7 Sincere urs, Ffs[ arks aC Ray os~d arzs9 CRA MINUTES 7 OCTOBER 18, 2010 LityS tafatle KfdaCe F'iog2m;