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HomeMy WebLinkAboutMinutes - July 5, 1988 - RAI i CITY OF AZUSA MINUTES OF THE REDEVELOPMENT AGENCY REGULAR MEETING JULY 51 1988 - 7:40 P.M. The Redevelopment Agency of the City of Azusa met in regular session at the above date and time in the Civic Auditorium. Chairman Moses called the meeting to order. ROLL CALL PRESENT: DIRECTORS: AVILA, STEMRICH, NARANJO, LATTA, MOSES ABSENT : DIRECTORS: NONE ALSO PRESENT General Counsel Thorson, Executive Director Fuentes, City Department Heads, Redevelopment Manager Steel, Project Analyst Katchen-Gall, Secretary Solis, Deputy Secretary Lara. THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY CONVENED JOINTLY AT 7:40 P.M. Call to order Roll Call Also Present Cncl & CRA convened jointly CONTINUED JOINT PUBLIC HEARING - on the proposed sale of Cont. Pub Hrg certain real property in the Azusa Central Business District CoastFed Redevelopment Project; proposed Disposition and Development Properties Agreement and Environmental Impact Report - CoastFed Properties. The Mayor/Chairman declared the Hearing re -opened. Hrg reopened Councilman/Director Stemrich advised that he would be Stemrich to abstaining from the proceedings, as he had been retained by abstain the developer to take aerial photographs of certain projects Left Cncl and that the last payment received by him (Stemrich) was in table March of 1988. City Attorney/General Counsel advised that after a one year period commencing with March, 1988, Councilman/Director Stemrich would be allowed to vote on any issues dealing with CoastFed Properties. Councilman/Director Stemrich left the Council table. City Administrator/Executive Director Fuentes stated that Comments the proposed Disposition and Development Agreement with J. Fuentes CoastFed Properties was the culmination of two years of study, work and negotiations. Redevelopment Manager Steel advised that the proposed Comments project would replace blighted conditions on the periphery R. Steel of the downtown area, with 141 quality apartment units, constructed to condominium standards. He further advised that necessary utility systems would have to be relocated. He then presented slides of the present site as it appears today and also other apartment complexes in the City. Mr. Steinberg of CoastFed addressed the Council/Agency and Comments presented slides of similar projects that have been Mr. Steinberg developed in La Jolla, Simi valley and Agoura. He stressed (CoastFed) the quality workmanship, landscaping, covered parking and other amenities of the project. 0 6 Lengthy discussion ensued between the Council/Agency and Mr. Steinberg regarding number of covered parking spaces, landscaping, possibility of two "tot lots", masonry wall around the complex to absorb the railroad noise, insulation, completely equipped recreation room, rental fees to be charged for the one and two bedroom units, and the fact that they would provide an on-site manager of the complex. Also, discussion was held regarding activities for young adults and teen agers, and the possibility of Council/Agency having a voice in the naming of the complex. Redevelopment Manager Steel advised that the Agency would be expending $1.8 million dollars for this project and that the Agency would generate about $90,000.00 per year in tax increments; further that sales tax would also be generated because of the added inhabitants shopping in Azusa. Mrs. Gayle Avakian addressed this item with various questions regarding tax increments received by the City/Agency, and how the various apartment complexes in the City were funded. Her questions were answered by the Redevelopment Manager. Mr. Richard Medina advised that he had always been in opposition to apartments in the downtown area, but has finally realized that the best way to revitalize the downtown would be this project and he was in favor of it. He went on to state, that he felt Centennial Square should be developed completely as commercial. In response to Councilman/Director Latta's queries regarding relocation and other benefits he would derive from the project, he again stated that he favored the project, and had no qualms about relocation as he had the utmost confidence in Mr. Fuentes and all that he was accomplishing for the City. Mr. Art Morales addressed this item also stating that this proposed project was in the best interests of the City and he was especially pleased that the apartments would be built to condominium standards, thus, at a later time, if feasible, they could be converted and sold. He, further, stated that a good name for the complex would be "Foothill Gardens." Mr. Bill Simpson addressed this item advising that the owners and renters in the area had been contacted regarding the proposed development and surveys had been made which disclosed that the majority of owners were in favor of the project even though they would have to be relocated. He was in favor of the project and felt that it would do a lot for the image of the City. Comments G. Avakian Comments R. Medina Comments A. Morales Comments B. Simpson There being no further testimony, it was moved by Hrg closed Councilwoman/Director Avila, seconded by Councilman/Director Latta and carried by roll call to close the Hearing. Councilman/Director Stemrich abstaining. Director Avila offered the following resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #472 AGENCY OF THE CITY OF AZUSA CERTIFYING THE FINAL certifying ENVIRONMENTAL IMPACT REPORT/ENVIRONMENTAL IMPACT STATEMENT Neg Dec for FOR THE PROPOSED COASTFED PROPERTIES (CBD -1) REDEVELOPMENT CoastFed PROJECT. project Moved by Director Avila, seconded by Director Naranjo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, NARANJO, LATTA NOES: DIRECTORS: MOSES ABSTAIN: DIRECTORS: STEMRICH ABSENT: DIRECTORS: NONE 07/05/88 PAGE TWO 0 0 Councilwoman Avila offered a resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA Res. #8458 APPROVING THAT CERTAIN AGREEMENT ENTITLED "DISPOSITION AND appvng DDA DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT w/CoastFed AGENCY OF THE CITY OF AZUSA AND COASTFED PROPERTIES, A CALIFORNIA GENERAL PARTNERSHIP." Moved by Councilwoman Avila, seconded by Councilman Naranjo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: AVILA, NARANJO, LATTA NOES: COUNCILMEMBERS: MOSES ABSTAIN: COUNCILMEMBERS: STEMRICH ABSENT: COUNCILMEMBERS: NONE Director Latta offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THAT CERTAIN AGREEMENT ENTITLED "DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND COASTFED PROPERTIES, A CALIFORNIA GENERAL PARTNERSHIP." Moved by Director Latta, seconded by Director Avila to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, NARANJO, LATTA NOES: DIRECTORS: MOSES ABSTAIN: DIRECTORS: STEMRICH ABSENT: DIRECTORS: NONE COUNCILMAN/DIRECTOR STEMRICH RETURNED TO THE COUNCIL/AGENCY TABLE. Res. #473 appvng DDA w/CoastFed Stemrich returned Moved by Director Latta, seconded by Director Naranjo and Basic concpt carried by roll call that the basic concept drawings for the drawings appv proposed apartment complex be approved. Mayor Moses CoastFed dissenting and Councilman Stemrich abstaining. Executive Director Fuentes apprised the Agency that the commercial rehabilitation of the downtown area would break ground the third week of August. With this renovation and the residential project approved this evening, two significant steps toward revitalizing the downtown area are in progress and the Council/Agency should be lauded for these actions. In order to finance the proposed Price Club project, the Agency will obtain a loan from the Price Company. The loan will support the cost for property acquisition, land clearance, assembly and off-site public improvements. Debt service on the loan will be repaid by sales and use tax revenues generated from the Price Club project. In order to solidify the financing agreement, both the Agency and the City must enact separate ordinances which approve the transfer from the City to the Agency of the sales and use tax collected within the West End Redevelopment Project Area, and more specifically, from the Price Club Project. Comm rehab downtown area to start in August Price Club project financing City Attorney/General Counsel Thorson apprised Ords have Council/Agency that the proposed ordinances had been revised been revised by his office, this date, and amended copies were presented to the Council/Agency. The revisions were relating to certain findings which were not required to be made. 07/05/88 PAGE THREE 0 0 Councilwoman/Director Avila questioned the length of time Comments that it would take to repay the loan and also wondered if Avila the school district would be affected by this sales tax ordinance. City Administrator/Executive Director Fuentes advised her that it would be approximately 25 years or sooner, depending upon sales tax activity. As far as the school district being affected, they never share in the City's sales tax. Chairman Moses offered an Ordinance entitled: AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT let rdg Ord AGENCY OF THE CITY OF AZUSA ENACTING A SALES AND USE TAX FOR enacting THE WEST END REDEVELOPMENT PROJECT AREA. sales & use tax (CRA) Moved by Chairman Moses, seconded by Director Stemrich and unanimously carried by roll call to waive further reading and introduce. Councilwoman Avila offered an Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA ADDING let rdg Ord SECTION 3.28.170 TO THE AZUSA MUNICIPAL CODE RELATING TO re: sales & SALES AND USE TAX PAYMENT CREDITS. use tax (Council) Moved by Councilwoman Avila, seconded by Councilman Naranjo and unanimously carried by roll call to waive further reading and introduce. THE CITY COUNCIL RECESSED AND THE REDEVELOPMENT AGENCY Cncl recessed CONTINUED AT 8:55 P.M. Agency cont. Moved by Director Stemrich, seconded by Director Latta and Min appvd unanimously carried by roll call to approve the Minutes of the adjourned regular meeting of June 14th, regular meeting of June 20th and the adjourned regular meeting of June 22nd, 1988. Director Latta offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA REGARDING THE SALARIES AND BENEFITS OF ITS NON -REPRESENTED AND MANAGEMENT EMPLOYEES, ELECTED AND APPOINTED OFFICIALS EFFECTIVE JULY 1, 1988. Moved by Director Latta, seconded by Director Naranjo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, STEMRICH, NARANJO, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE The construction of the Georgia Avenue Storm Drain, Project No. 729, has been satisfactorily completed. It was, therefore, moved by Director Stemrich, seconded by Director Naranjo and unanimously carried by roll call to approve the Project, authorize the Chairman to execute the Notice of Completion and direct the Secretary to have same recorded. On June 20th, the Agency directed staff to negotiate a 60 day Exclusive Negotiation Agreement with Robert Kessel of Cambridge Pacific for the 3.5 ± acre portion of the CBD -1 site (northwest corner of Azusa/Foothill). The proposal contemplates 30,000 square feet of office space and 36 residential condominiums. The Exclusive Negotiation Agreement sets forth the duties of the Agency and Developer over the next 60 days. 07/05/88 PAGE FOUR Res. #474 salaries non -rep & mngmnt & elected officials Notice of Completion Proj. 729 Exclusive Neg Agmt w/ Cambridge Pacific 0 0 Director Naranjo advised that he would consider deferring this item in order to receive more proposals for the development of the site, specifically, all commercial rather than residential combined with commercial. He stated that since the last meeting wherein the concept of Mr. Kessel'S proposal was agreed upon he had occasion to be approached by another developer, who was interested in developing the site as loot commercial and at a better price. Comments Naranjo Mr. Kessel addressed the Agency stating that he was Comments confused by these statements, as he thought he was going to Mr. Kessel sign a contract for exclusive negotiation rights. He further stated that if the matter was deferred, he wished to withdraw his proposal. Discussion was held regarding land valuation of the proposed property. Redevelopment Manager Steel advised that at the time any exclusive is given, that it is too early to evaluate land cost. You may start at a lower cost per square foot, but raise it considerably afterwards, so the per square foot dollars are not set in concrete at the onset. It was then moved by Director Naranjo, seconded by Director Latta, and carried by roll call to defer consideration of the Exclusive Negotiation Agreement with Cambridge Pacific for 45 days, in order to evaluate other proposals that may be received by the Agency for the development of that site. Chairman Moses abstaining. General discussion Defer action on Exclusive Agmt for 45 days On June 20th approval was given by the Agency for a roof Roof mounted mounted sign for the Aerojet Electro Systems Company's new sign for facility at 1100 W. Hollyvale. An Amendment to the Owner Aerojet Participation Agreement was submitted. Director Stemrich offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #475 AGENCY OF THE CITY OF AZUSA APPROVING AMENDMENT NUMBER ONE Amendment TO THAT CERTAIN AGREEMENT ENTITLED, "OWNER PARTICIPATION to OPA w/ AGREEMENT BY AND BETWEEN THE AZUSA REDEVELOPMENT AGENCY AND Aerojet AEROJET ELECTRO SYSTEMS COMPANY." Moved by Director Stemrich, seconded by Director Latta to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE STEMRICH, NARANJO, LATTA, MOSES The property owner of the Canyon City Motel, Mr. Sanmukh Parking lot Bhakta, owns a twenty-five foot portion of the public agmt w/ parking lot at 614-620 N. Azusa Avenue. In order to proceed S. Bhakta with Project #D7038, downtown parking lot reconstruction, the Agency must enter into an agreement with Mr. Bhakta allowing the necessary parking lot improvements to be made. Discussion was held regarding number of units at the motel General and if the 13 parking spaces reserved for that motel were discussion adequate. It was ascertained that the motel has 20 units and with the re -configuration of the parking lot, at least 2 additional spaces would be added for that facility, as well as additional spaces throughout the lot. It was, also, disclosed that most of the residents at the motel did not have vehicles. Director Naranjo offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #476 AGENCY OF THE CITY OF AZUSA APPROVING THAT CERTAIN AGREEMENT Reciprocal ENTITLED, "RECIPROCAL VEHICULAR ACCESS AND PARKING AGREEMENT Veh access BETWEEN THE REDEVELOPMENT AGENCY AND SANNUKH BHAKTA." & Pkng agmt S. Bhakta 07/05/88 PAGE FIVE 0 0 Moved by Director Naranjo, seconded by Director Latta to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, STEMRICH, NARANJO, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE Director Stemrich offered two separate resolutions authorizing payment of warrants by the Agency, entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF Res. #s 477 AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF & 478 REDEVELOPMENT AGENCY FUNDS. Warrants Moved by Director Stemrich, seconded by Director Avila to waive further reading and adopt. Resolutions passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, STEMRICH, NARANJO, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE PUBLIC PARTICIPATION Pub Prtc Mr. Art Morales addressed the Agency stating that he was A. Morales pleased that action was deferred on the Exclusive Negotia- comments tion Agreement with Cambridge Pacific, in order to receive Cambridge more proposals. This way, the Agency was not tied down to Pac. agent one plan only. Mrs. Gayle Avakian addressed the Agency stating that the G. Avakian citizens of the Azusa did not want any more apartments, and comments the Agency just approved a project to do so. She further CoastFed wondered why General Counsel requested the Agency to approve agmt the basic concept drawings. She was advised that the approval of the basic concept drawings was a staff recommendation and that he brought the Agency's attention to it so as not to omit it. She then stated that land is very valuable and that the Agency should ask for and receive the highest amount possible. Mr. Ronald Tressel addressed the Agency requesting why the R. Tressel debt service for the Price Club would take 25 years, when comments the sales tax generated from the whole West End site would sales tax be a large amount and could be paid off sooner. He also ords wondered why the time limit for repayment of the loan and the rate at which it would be paid was not in the ordinances. Executive Director Fuentes advised him that the conditions for repayment of the loan would be covered in the Agreement, which would be submitted at the next meeting for Agency approval. Further, that conservatively speaking the debt would be paid off in 25 years, however, if the sales tax generated was higher than anticipated, it could be paid off sooner. However, all sales tax revenues could not be used for repayment, as these taxes were needed to subsidize the operating services of the City. At this time, Director Stemrich commended Executive Director Commend Exec Fuentes for all the hard work that went into securing this Dir. project with the Price Company. Mr. Allen Soper addressed the Agency regarding the Edison Comments utility poles at the CoastFed Properties project. He asked A. Soper if they would be relocated or placed underground. utility Redevelopment Manager Steel advised that the cost for poles relocating or placing them underground was prohibitive and that they did plan to replace the wooden poles with steel. 07/05/88 PAGE SIX 9 q Mrs. Mary Grosvenor addressed the Agency requesting that they, as well as staff, speak clearly and enunciate as they were not being understood by the audience. She also requested clarification regarding proposed developments which would add money to the tax base and at the same time, the City is using the taxes to repay the debt service for some developments. Chairman Moses and staff clarified this point for Mrs. Grosvenor. Comments M. Grosvenor sales tax clarifica- tion Mr. Ronald Legault addressed the Agency and questioned what Comments provisions had been made for alleviating traffic on Todd R. Legault Avenue especially with added businesses coming in. He was traffic advised that the street would be eliminated and made a part probs @ Todd of the Price Company project. THE REDEVELOPMENT AGENCY RECESSED UNTIL THE END OF THE Recess to CITY COUNCIL MEETING FOR THE PURPOSE OF A JOINT CLOSED end of Cncl SESSION. mtg TIME OF RECESS: 9:40 P.M. THE REDEVELOPMENT AGENCY CONVENED JOINTLY WITH THE CITY Convened w/ COUNCIL AT 10:45 P.M. Council Councilman/Director Stemrich offered a resolution entitled: A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA Res. #479 AND THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF Closed Sess THE CITY OF AZUSA TO RECESS TO CLOSED SESSION ON JULY 5, 1988, PURSUANT TO THE PROVISIONS OF GOVERNMENT CODE SECTION 54957 AND MAKING FINDINGS PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a), AND (c). Moved by Councilman/Director Stemrich, seconded by Councilmember/Director Naranjo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council/Agency: AYES: COUNCILMEMBERS/DIRECTORS: AVILA, STEMRICH, NARANJO, LATTA, MOSES NOES: COUNCILMEMBERS/DIRECTORS: NONE ABSENT: COUNCILMEMBERS/DIRECTORS: NONE TINE OF RECESS TO CLOSED SESSION: 10:46 P.M. Recess to Closed Sess THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY RECONVENED AT Reconvened 11:43 P.M. Moved by Director Latta, seconded by Director Avila and Adjourn unanimously carried to adjourn. TIME OF ADJOURNMENT: 11:44 P.M. NEXT RESOLUTION NO. 480 07/05/88 PAGE SEVEN