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Home My WebLink About070604 PH DDA D.J. Crevier MotorsREQUEST FOR �Q�, COUNCIL/AGENCY '''ta °� ACTION MEETING DATE: JULY 6, 2004 TITLE: PUBLIC HEARING - DISPOSITION AND DEVELOPMENT AGREEMENT WITH DONALD J. CREVIER, AS TRUSTEE OF THE DONALD J. CREVIER TRUST, CREVIER MOTORS, INC., A CALIFORNIA CORPORATION, AND CREVIER LEASING COMPANY, INC., A CALIF IA CORPORATION - CREVIER BMW E E P CITYMAVAGER XECUTIVEDIRECTOR RECOMMENDED ACTION ^_ITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO / L% 004 FILE NUMBER Adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to a Disposition and Development Agreement between the Community Redevelopment Agency and Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors, Inc., a California corporation, and Crevier Leasing Company, Inc., a California corporation, for the sale of certain real property in the South Main Street Redevelopment Project Area and approving the sale of said real property upon the terms and conditions contained in that Agreement. COMMUNITY REDEVELOPMENT AGENCY ACTION Adopt a resolution approving a Disposition and Development Agreement with Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors, Inc., a California corporation, and Crevier Leasing Company, Inc., a California corporation (Developer). 17 6 DDA with Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors, Inc. A California Corporation, and Crevier Leasing Company, Inc., a California Corporation - Crevier BMW Dealership July 6, 2004 Page 2 COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION 1. Recommend that the City Council adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to a Disposition and Development Agreement between the Community Redevelopment Agency and Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors, Inc., a California corporation, and Crevier Leasing Company, Inc., a California corporation, for the sale of certain real property in the South Main Street Redevelopment Project Area and approving the sale of said real property upon the terms and conditions contained in that Agreement. 2. Recommend that the Community Redevelopment Agency adopt a resolution approving a Disposition and Development Agreement with Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors, Inc., a California corporation, and Crevier Leasing Company, Inc., a California corporation (Developer). By a vote of 7:0 at its Regular Meeting of June 15, 2004. The Community Redevelopment Agency has embarked on a business retention and expansion effort for the Santa Ana Auto Mall. There are currently nine new car dealers in the mall generating over $3.7 million in annual sales tax revenue for the City's General Fund. Given industry trends over the past several years favoring new car dealer consolidations, it has become necessary to provide larger lots to accommodate increased car inventories for dealerships. In May 2003, the Agency issued tax allocation bonds for land acquisition, relocation and site preparation costs for future redevelopment purposes. To date, the Agency has acquired properties from the Wyne -Snow Industrial Park Partnership and AP- Edinger LLC totaling 4.23 acres along the Edinger Avenue frontage (1941 -2009 E. Edinger Avenue) , land that is now proposed to be used to facilitate dealership expansion. 18 DDA with Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors, Inc. A California Corporation, and Crevier Leasing Company, Inc., a California Corporation - Crevier BMW Dealership July 6, 2004 Page 3 The subject actions will enable the expansion of the existing BMW Dealership at the Santa Ana Auto Mall by Donald J. Crevier, as Trustee of the Donald J. Crevier Trust (Developer) (Exhibit 1). Crevier BMW, one of four BMW dealerships in Orange County, is currently ranked first in "New Car Sales" in the nation and holds the title of number one in the nation for "Certified Pre -Owned Sales ". The Santa Ana dealership with 267 existing employees expects to add 200 employees upon completion of the expansion, while creating 175 construction jobs during build -out. Sales volumes have nearly doubled from 1993 ($45.8 million) to 1998 ($88.1 million) and more than doubled again from 1998 to 2003 ($233.3 million) Projected total sales are expected to reach $560 million by 2008. The proposed Disposition and Development Agreement (DDA) calls for the Developer to purchase approximately 4.23 acres or 184,597 square feet of land from the Agency at $20 per square foot, or $3,691,940. This acreage includes a 161- square foot parcel located adjacent to the property to be conveyed. This 161- square foot parcel is addressed in an Option Agreement referenced in the DDA. The Agency secured this option as part of the acquisition of property from the Wyne -Snow Industrial Park Partnership. The 4.23 acres owned by the Agency will be conveyed in two phases to accommodate the Developer's construction schedule. The Agency is responsible for conveying a clear and buildable site, and will thus be providing the Developer with a credit against the purchase price for demolition of improvements on the property being sold. A reuse analysis found that the purchase price of $20 per square foot is consistent with fair market value for clear and buildable land; thus, the Agency is being fairly compensated for the land. The Developer received site plan approval from the Planning Commission at its May 10, 2004 meeting in accordance with Specific Development No. 60 (SD -60), the zoning document that governs the Auto Mall (Exhibit 2) . On June 7, 2004, the City Council received and filed the subject staff report. The proposed facility consists of approximately 170,066 square feet of service, sales and office space and a five - level, six -tier, approximately 730 -space parking structure. The parking structure will be used primarily for the storage of new car inventory. The project is proposed to be built in three successive phases, each taking approximately one year to complete: construction of the Phase I parking structure is anticipated to commence in August 2004 following conveyance 1 DDA with Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, Crevier Motors, Inc. A California Corporation, and Crevier Leasing Company, Inc., a California Corporation - Crevier BMW Dealership July 6, 2004 Page 4 of the first parcel by the Agency; the new showroom and office area will be constructed as part of Phase II on the second parcel to be conveyed; and the new sales, service, parts and office addition to the existing BMW building will be built in Phase III on Crevier's existing property. The phasing will allow the dealership to continue its operations without major disruption to sales and service. The law requires a public hearing for the purpose of considering the proposed sale of the property. On June 23 and June 28, 2004, notification was published in the Orange County Reporter that a summary report and other documents relating to the sale were available for public inspection beginning June 23, 2004, and that persons wishing to comment on this matter may appear at the public hearing or submit written comments in advance. CEQA COMPLIANCE In accordance with the California Environmental Quality Act, the recommended action is exempt from further review. Categorical Exemption Environmental Review No. 2003 -111a will be filed for this project. FISCAL IMPACT The funds from the sale of the property in the amount of $3,691,940 will be credited to the South Main Tax Allocation Bonds account (account no. 552 -01 -5721) and the South Main Operations account (account no. 550 -01- 5721). Jo P. Reekstin E cutive Director Community Development Agency JPR /VU /SG /mlr Actions \2004CC \JT CC -CRA - CrevierDDA 7 -6 -04 APPROVED AS TO FUNDS AND ACCOUNTS: W(A o1oma 04 Execu ve Director Finance & Management 20 Services Agency 6 WILSHIRE AV. Dealer Parking 2AC. VW Parking SF Qp0 AUT VW �T9ol O Parking q �iS. �J Vacant '9 �'ip Saab Dealer T N 3.99AC. 6 4.98AC. 9 Isuzu w Hyundai = Satum 2.62AC. FO 3.0AC. Jaguar AUTO 3.2AC. AUTO BORCHARD AV. IL-1-9 MA`C Oy MA 0 ,1 w VW /Audi Volvo CC 3.33AC. Honda 5.02AC. n 4.08AC. O BMW G 5.11 AC. 0 0 Co LU BMW /Expansion cs / / / /� / / /// // O M7 Q Not APart 194.1U7961j /009 F- E.�Edfiiger %Edinger D Light Industrial Co 4:23 acres a U EDINGER AV. . 0 Option Parcel N ;i SANTA ANA AUTO MALL BMW Expansion Area Exhibit 1 0 )r L: > f61(6 r EXHIBIT 2 22 YA W. A Aulo M� Dove A rr • TV A rr • RESOLUTION NO. CRA 2004 -09 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND DONALD J. CREVIER, AS TRUSTEE OF THE DONALD CREVIER TRUST, CREVIER MOTORS, INC., AND CREVIER LEASING COMPANY, INC. BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The Board of the Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. The Community Redevelopment Agency of the City of Santa Ana (hereinafter referred to as the "Agency ") is engaged in activities necessary to execute and implement the Redevelopment Plan for the South Main Redevelopment Project Area (the Redevelopment Plan "). B. In order to implement the Redevelopment Plan, the Agency has agreed, subject to the approval of the City Council, to sell certain real property in the Project Area, pursuant to the terms and provisions of a Disposition and Development Agreement (hereinafter referred to as the "Agreement ") between the Agency and Donald J. Crevier, as Trustee of The Donald Crevier Trust, Crevier Motors, Inc., a California Corporation, and Crevier Leasing Company, Inc, a California Corporation, which is attached to the Request for Council /Agency Action submitted in conjunction with this Resolution, in which said Site, commonly known as 1941 -1961 anc 2009 East Edinger Avenue and consisting of approximately 4.23 acres, is further described. This Request for Council /Agency Action and its attachments are incorporated herein by this reference as though fully set forth. C. The Agreement contains all of the provisions, terms, conditions and obligations required by the state and local laws. D. Donald J. Crevier, as Trustee of The Donald Crevier Trust, Crevier Motors, Inc, and Crevier Leasing Company, Inc., possess the qualifications and financial resources necessary to acquire and insure development of the Site, in accordance with the purpose and objectives of the Redevelopment Plan. E. In accordance with the California Environmental Quality Act, the City of Santa Ana has deemed that the recommended action is exempt from further review and determined that Categorical Exemption Environmental Review No. 2003 -111 a will be filed for this project. As a "responsible agency," the Agency agrees that this environmental document appropriately analyzes the project and complies with the California Environmental Quality Act, and that it will implement or see to the implementation of any mitigation measures specified as its responsibility under the mitigation monitoring plan. F. Pursuant to the provisions of the California Redevelopment Law, the Agency and the City Council have held a duly noticed joint public hearing on the proposed sale of the Site pursuant to the Agreement. Section 2. The Disposition and Development Agreement is hereby approved, and the Executive Director of the Agency is hereby authorized to execute the Agreement, with such non - substantive changes as may be approved by Agency's General Counsel. Section 3. The Executive Director of the Agency is hereby authorized to take all steps, and to sign all documents and instruments necessary to implement and carry out the Agreement on behalf of the Agency. ADOPTED this day of 2004. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Benjamin Kaufman Assistant General Counsel 6 24 AYES: NOES: ABSTAIN NOT PRESENT: Boardmembers: Boardmembers: Boardmembers: Boardmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. CRA 2004 -09 to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Secretary City of Santa Ana 25