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HomeMy WebLinkAboutMinutes - February 6, 1989 - RA11 CITY OF AZUSA 0 MINUTES OF THE REDEVELOPMENT AGENCY REGULAR MEETING FEBRUARY 6, 1989 - 7:39 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. Call to order ROLL CALL Roll Call PRESENT: DIRECTORS: AVILA, STEMRICH, LATTA, MOSES ABSENT : DIRECTORS: NARANJO Moved by Director Avila, seconded by Chairman Moses and unanimously carried by roll call* that Director Naranjo be excused from the meeting due to his attendance at a conference. ALSO PRESENT Also Present General Counsel Thorson, Executive Director Fuentes, City Department Heads, Director of Redevelopment Steel, Secretary Solis, Administrative Clerk Toscano. THE CITY COUNCIL CONVENED JOINTLY WITH THE REDEVELOPMENT AGENCY AT 7:39 P.M. CONTINUED JOINT PUBLIC HEARING - on the proposed sale of Joint PubHrg certain real property in the Azusa Central Business District sale of propt Redevelopment Project Area to DeRosa Properties for the in CBD DeRosa construction of approximately 51,000 square feet of commercial space with parking and landscaping. The real property consists of approximately 3.5 acres generally bounded by Foothill on the south, San Gabriel on the west, the ATSF railroad on the north and Azusa on the east. Also, the presentation of a Disposition and Development Agreement. Chairman/Mayor Moses declared the Hearing re -opened. Hrg re -open Redevelopment Director Steel addressed the Agency/Council Testimony stating the staff has been trying to develop the 3.5 acre Staff site on the northwest corner of Azusa and Foothill for about three years and there has been much past difficulty with site plans and developers in trying to get this corner redeveloped. He stated that six months ago the Agency entered into a negotiation agreement with DeRosa Properties and the result of these negotiations is being presented tonight. He further explained that the Disposition and Development Agreement requires the Agency to acquire the balance of the site. The Agency owns 40 to 503 of the site. The Agreement is to pick up the balance of the site and complete other responsibilities, such as, off site public improvements, utility relocations, and relocating all the displaced businesses and residents that are at the site. He noted the importance of approving all the documents involving this Disposition and Development Agreement. Mr. Jules Sandford, attorney representing the DeRosa Comments Properties addressed the Council/Agency complimenting staff J. Sandford regarding negotiations. He then introduced Mr. DeRosa and intro DeRosa Mr. Laurence Allen, architect for the Development Company. Mr. DeRosa addressed Council/Agency stating that his company is going to build a first class shopping center. Director/Councilman Latta questioned whether Mr. DeRosa has Comments identified any of the tenants yet. Latta Mr. DeRosa replied that they did not have any tenants as yet because as of tonight the project had not been approved, but after it is approved he would aggressively proceed to obtain first class tenants. Chairman/Mayor Moses questioned what the final payment of the land was, per square foot. Mr. DeRosa answered $6.45 per square foot. Comments DeRosa Question Moses Response Director/Councilwoman Avila stated that she would like to Comments see provisions for public restrooms. Avila Mr. DeRosa responded that he would insure that they take Comments that into consideration but that this was not a major DeRosa development; however, they would have restrooms in the office buildings. He further stated that they were currently negotiating with Cal Trans for some landscaping frontage it owns on San Gabriel and Azusa Avenue. If the Redevelopment Agency is successful in obtaining this land prior to construction then they plan to widen the center strip from 12 feet to 35 feet and at that time the City could use those facilities for picnics or art exhibitions and then it would make sense to install public restrooms. Lengthy discussion was held regarding the design of the new General development and whether it should match the lower downtown Discussion area or the City Hall. Mr. DeRosa further stated that they would begin construction when he receives the grand deed. Executive Mr. Laurence Allen, architect for the development company Comments addressed Agency/Council and stated he proposed to create L. Allen a centerpiece of the project for the City he would like to Project , create a waterfall that could be viewed from all areas. Finances Mr. Richard Medina addressed the Agency/Council in favor Comments of the development but stated that he thought there was a R. Medina problem with the accessways into the project and suggested that a turn in lane be installed off of Foothill Blvd. to the westerly driveway. Mr. Art Morales addressed the Agency/Council in favor of Comments this development and commented that the plan looks very A. Morales beautiful. He suggested that palm trees be a part of the project landscaping, and further thanked Mr. DeRosa and his company for bringing this project to the City and thanked the Agency/Council for accepting it. Moved by Director/Councilwoman Avila, seconded by Hrg closed Director/Councilman Latta and unanimously carried by roll call* to close the Hearing. Executive Director/City Administrator Fuentes Executive apprised the Agency/Council of the project finances, stating that prior years expenditures are 1.2 Director/ million dollars; that this is what there is at this time Project available to contribute to the project, that we are going Finances to have to borrow on an interium basis a loan from Light and Water reserve fund of a million dollars which will be secured by a letter of credit posted by the developers. As soon as the property is acquired, the property will be turned over to the developer; the letter of credit will be drawn up to that the agency will get the million dollars in order to repay the Light and Water fund for the short term loan. The City will also have to secure a 1.8 million dollar section 108 loan, staff is currently working on the application for that funding. He further stated that the total cost for the project is estimated to be four million dollars with a return of one million dollars from land sale from developers, that will give a net cost of three million dollars. Staff estimates fifty thousand dollars a year in sales tax and sixty-five thousand dollars a year in property tax. 02/06/89 PAGE TWO 0 0 The Secretary/City Clerk read a letter from Suman Trust Secretary requesting that Agency/Council defer all actions on any read ltr Disposition and Development Agreements in order to allow Suman Trust them and other property owners in the affected areas adequate time to analyse its impact. General Counsel/City Attorney Thorson advised that General all of the property owners in the affected area were given extensive notice to allow an opportunity to Counsel Advic participate, and that the process has been ongoing for over two years now; that Sumn Trust was among those, and they had received certified letters explaining their rights and the process. He further stated that the information that is required to be provided by state law, was made available at the first notice of publication which was approximately fifteen days prior to this meeting. He further stated that the letters that went out were personally addressed to the property owners stating "the Agency is comtemplating a commercial project on this property and you have a right to submit your own project to have that considered" and Suzan Trust chose not to submit anything. Redevelopment Director Steel affirmed that all the letters Comments were sent out "Return Receipt Requested" and they did sign Staff for them. At this time it was consensus of the Agency/Council to allow Allow J. Tyke Mr. John Tyck to address the issue. to spk Mr. Tyck addressed the Council stating that he is a minor Comments owner of property in the area, and stated that the J. Tyke resolutions regarding the Disposition and Development Agreement were only made available to the public on the Friday prior to this meeting. General Counsel/City Attorney Thorson stated City Attny that the Redevelopment act requires Advice that the report prepared by staff explaing the financing of the project is required to be made available fifteen days prior to the hearing. The report consists of staff's recommendation; reports that explain the project; and why the Agency/City is selling the property at less than fair market value. All were in place within the time required by law. He further stated that he prepared the resolutions and that they weren't ready until Friday afternoon prior to this meeting, but the resolutions are merely documentation that say the project is approved and do not need to be ready fifteen days prior to the hearing. After the document is approved the Agency needs to get appraisals on the property to be acquired and then, by law, must make a formal offer in writing and negotiate with the property owners for a reasonable period of time before condemnation is ever considered. Director Latta offered a Resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #542 AGENCY OF THE CITY OF AZUSA CERTIFYING THE NEGATIVE crtfying DECLARATION AND CONFIRMING THE CERTIFICATION OF THE neg dec & ENVIRONMENTAL IMPACT REPORT FOR THE APPROVAL OF THE EIR/DDA DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE DeRosa REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND DEROSA PROPERTIES. Moved by Director Latta, seconded by Director Stemrich to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, STEMRICH, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NARANJO Councilwoman Avila offered a Resolution entitled: 02/06/89 PAGE THREE 0 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA Res. #8574 APPROVING THAT CERTAIN AGREEMENT ENTITLED "DISPOSITION AND Appvg DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF DDA THE CITY OF AZUSA AND DEROSA PROPERTIES, A CALIFORNIA DeRosa GENERAL PARTNERSHIP. Moved by Councilwoman Avila, seconded by Councilman Stemrich to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: AVILA, STEMRICH, LATTA, MOSES NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NARANJO Director Stemrich offered a Resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #543 AGENCY OF THE CITY OF AZUSA APPROVING THE DISPOSITION AND Appvd DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND DEROSA DDA PROPERTIES, A CALIFORNIA GENERAL PARTNERSHIP. DeRosa Moved by Director Stemrich, seconded by Director Avila to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, STEMRICH, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NARANJO Director Stemrich offered a Resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE BASIC CONCEPT DRAWINGS FOR THE CENTENNIAL SQUARE REDEVELOPMENT PROJECT. Moved by Director Stemrich, seconded by Director Avila to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: AVILA, STEMRICH, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NARANJO THE CITY COUNCIL RECESSED AND THE REDEVELOPMENT AGENCY CONTINUED AT 8:30 P.M. Res. #544 Appvg Basic Concept Drawings There being no additions or corrections, the Minutes of the Min appvd regular meeting of January 16, 1989, were approved as written. The first phase of the downtown parking lot's reconstruction Notice of is complete. This phase, undertaken by G. W. White Completion construction Co., included the installation of the block downtown wall, monument sign and new curb construction. It was then parking lot moved by Director Avila, seconded by Director Stemrich and reconstruc- unanimously carried by roll call* to authorize the Chairman tion to execute the Notice of Completion, and direct the G.W. White Secretary to have same recorded. Constr. Director Latta offered three resolutions authorizing payment of warrants by the Agency entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF Res. #545, AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF 546 & 547 REDEVELOPMENT AGENCY FUNDS. Warrants Moved by Director Latta, seconded by Director Avila to waive further reading and adopt. Resolutions passed and adopted by the following vote of the Agency: 02/06/89 PAGE FOUR Mr. Art Morales addressed the Agency and questioned if the Comments consideration of supporting AB 160 (Mountjoy) eliminating A. Morales Redevelopment Agencies' use of eminent domain to acquire private property, was successful, what would happen to the project that was just discussed, the Joint Public Hearing regarding the sale of property. Chairman Moses commented that this Bill was regarding homes not businesses. A lengthy discussion was held regarding the type of AB 160 bill, between Mayor Moses and Mr. Morales. It was consensus of the Agency to recess until the end of recess to the City Council meeting. end of Cncl mtg. THE REDEVELOPMENT AGENCY CONVENED JOINTLY WITH THE CITY Convened COUNCIL AT 10:09 P.M. w/Cncl. Director/Councilman Latta offered a resolution entitled: A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA Res. #548 AND THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF Closed Sess THE CITY OF AZUSA TO RECESS TO CLOSED SESSION ON FEBRUARY 6, 1989, PURSUANT TO THE PROVISIONS OF GOVERNMENT CODE SECTION 54956.9(a), AND (b). Moved by Director/Councilman Latta, seconded by Director/Councilman Stemrich to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency/Council: AYES: DIRECTORS/COUNCILMEMBERS: AVILA, STEMRICH, LATTA, MOSES NOES: DIRECTORS/COUNCILMEMBERS: NONE ABSENT: DIRECTORS/COUNCILMEMBERS: NARANJO TIME OF RECESS TO CLOSED SESSION: 10:10 P.M. Recess to Closes Sass THE CIITY COUNCIL AND THE REDEVELOPMENT AGENCY RECONVENED AT Reconvened 11:18 P.M. City Administrator announced that the Meeting with the Azusa Unified School District will be held February 27, 1989, and he would like to have an Adjourned Meeting with the City Council and the Redevelopment Agency on February 14, 19891 at 6:30 P.M. at the Senior Center. Mayor Moses requested that he would like to have Appts Spec appointments for special commissions on the next Council Comm to agenda. 2/21/89 Mtg. The City Attorney advised that during Closed Session two 0 actions were taken, one was to grant the leave of absense 0 AYES: DIRECTORS: AVILA, STEMRICH, LATTA, MOSES NOES: DIRECTORS: NONE (denied) ABSENT: DIRECTORS: NARANJO PUBLIC PARTICIPATION Director/Councilmember Stemrich and unanimously carried by Pub Prtc Mr. Art Morales addressed the Agency and questioned if the Comments consideration of supporting AB 160 (Mountjoy) eliminating A. Morales Redevelopment Agencies' use of eminent domain to acquire private property, was successful, what would happen to the project that was just discussed, the Joint Public Hearing regarding the sale of property. Chairman Moses commented that this Bill was regarding homes not businesses. A lengthy discussion was held regarding the type of AB 160 bill, between Mayor Moses and Mr. Morales. It was consensus of the Agency to recess until the end of recess to the City Council meeting. end of Cncl mtg. THE REDEVELOPMENT AGENCY CONVENED JOINTLY WITH THE CITY Convened COUNCIL AT 10:09 P.M. w/Cncl. Director/Councilman Latta offered a resolution entitled: A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA Res. #548 AND THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF Closed Sess THE CITY OF AZUSA TO RECESS TO CLOSED SESSION ON FEBRUARY 6, 1989, PURSUANT TO THE PROVISIONS OF GOVERNMENT CODE SECTION 54956.9(a), AND (b). Moved by Director/Councilman Latta, seconded by Director/Councilman Stemrich to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency/Council: AYES: DIRECTORS/COUNCILMEMBERS: AVILA, STEMRICH, LATTA, MOSES NOES: DIRECTORS/COUNCILMEMBERS: NONE ABSENT: DIRECTORS/COUNCILMEMBERS: NARANJO TIME OF RECESS TO CLOSED SESSION: 10:10 P.M. Recess to Closes Sass THE CIITY COUNCIL AND THE REDEVELOPMENT AGENCY RECONVENED AT Reconvened 11:18 P.M. City Administrator announced that the Meeting with the Azusa Unified School District will be held February 27, 1989, and he would like to have an Adjourned Meeting with the City Council and the Redevelopment Agency on February 14, 19891 at 6:30 P.M. at the Senior Center. Mayor Moses requested that he would like to have Appts Spec appointments for special commissions on the next Council Comm to agenda. 2/21/89 Mtg. The City Attorney advised that during Closed Session two Leave of Abs. actions were taken, one was to grant the leave of absense F. Thompson requested by employee Floyd Thompson, by a vote of four to (appvd) zero and the second was to deny the leave of absense Leave of Abs. requested by employee Anthony Contreras, by a vote of four A. Contreras to zero. The Agency/Council did not discuss real property (denied) acquisition for the Ranch Center Development nor did they discuss potential litigation involving Eugene Moses. Moved by Director/Councilmember Latta, seconded by Adjourn to Director/Councilmember Stemrich and unanimously carried by 2/14/89 roll call* to adjourn to Tuesday, February 14, 1989, 6:30 Senior Cntr P.M. at the Senior Citizen Center. 02/06/89 PAGE FIVE 0 TIME OF ADJOURNMENT: 7:42 P.M. NEXT RESOLUTION NO. 549 * Indicates Director Naranjo absent. 02/06/89 PAGE SIX