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HomeMy WebLinkAboutMinutes - July 17, 1989 - RACITY OF AZUSA MINUTES OF THE REDEVELOPMENT AGENCY REGULAR MEETING JULY 17, 1989 - 8:20 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 Director Steel, Redevelopment Project Manager Lyman, Secretary Solis, Deputy Secretary Lara. PUBLIC PARTICIPATION Mr. Stephen Alexander addressed the Agency and requested that the Agency vote to get rid of amortization in the City. Call to order Roll Call Also Present Pub Prtc Comments S. Alexander It was ascertained that the amortization issue had nothing Comments not to do with the Redevelopment Agency, and that discussion on about CRA this matter would be inappropriate. Mr. Art Morales addressed the Agency and requested Comments information on public participation. He asked if Agency A. Morales Agenda items could be discussed as they were presented on the Agenda or should they be addressed during the public participation portion. He was advised that rules for public participation were the same as for the City Council. The Minutes of the adjourned regular meeting of June 29th Min appvd and the regular meeting of July 3rd, 1989, were approved as written. Executive Director advised that the Agency needed to have a Need for Closed Session to discuss real property negotiations Closed Sass relative to the seven items at hand dealing with the resolutions of necessity. Director Latta then offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #594 AGENCY OF THE CITY OF AZUSA TO RECESS TO CLOSED SESSION ON Closed Sass JULY 17, 1989, PURSUANT TO THE PROVISIONS OF GOVERNMENT CODE SECTION 54957, AND MAKING FINDINGS PURSUANT TO GOVERNMENT CODE SECTION 54956.8. 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: 0 0 AYES: DIRECTORS: AVILA, STEMRICH, NARANJO, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE TIME OF RECESS TO CLOSED SESSION: 8:25 P.M. THE REDEVELOPMENT AGENCY RECONVENED AT: 8:45 P.M. HEARING FOR PROPERTY OWNERS - Consideration of resolutions of necessity to acquire the following properties for the CoastFed Project at the northwest corner of San Gabriel and Foothill: 407 W. Foothill; 239, 255, 305 and 333 W. Foothill; 201 W. Foothill; 727 N. San Gabriel; 715 N. San Gabriel; 717 N. San Gabriel and 721 N. San Gabriel. Each property was discussed separately. General Counsel apprised the Agency that the hearings before them tonight were hearings on the resolutions of necessity. Eminent Domain law requires that before an Agency proceeds to acquire property by eminent domain, that, first, an attempt to negotiate with the property owners for acquisition of the property without litigation must be done. This has been done with the property owners listed on the Agenda. Secondly, a resolution of necessity must be adopted, which is a finding by the Agency that eminent domain is necessary to carry out the project. It does not establish the fair market value or the price that would be paid for the property. All it deals with is certain findings that the project should or should not go ahead and that acquisiton of the property is required. He, again, stated that the price of the property is not an issue and should not be discussed tonight; and that even though the resolutions of necessity are adopted, staff will continue to negotiate with the property owners and continue these negotiations even if litigation is filed. Redevelopment Director Steel addressed this issue advising that the matter before the Agency was a culmination of three years of work. He gave a brief description of the proposed project from its inception to the present time. He advised that the properties were appraised, and based on the fair market value; each property owner had been contacted, and the Agency's acquisition agent has been negotiating with each owner to reach a fair settlement. He further stated that there were some very complex issues with some of the properties in question with regard to soils issues, title issues, and all this had to be considered when dealing with the price of the property. 407 W. Foothill - Estrada/La Terrasa Bar Mr. Juan Estrada then addressed the Agency with the help of Secretary Solis who interpreted for him. Basically, Mr. Estrada advised that he was not happy with the price that had been offered him ($215,000.00). He felt that it was worth much more, and that another business had been offered more and that business was smaller than his. Mr. Solis advised Mr. Estrada that the issue tonight was not price, and that even if the resolution of necessity is approved, staff will continue to negotiate with him regarding price. Director Avila asked Mr. Estrada where he had learned that another business had been offered more money and his answer was vague. Secretary Solis advised Mr. Estrada that staff would investigate that allegation and advise him of the outcome. Director Naranjo then offered a resolution entitled: 07/17/89 PAGE TWO Reconvened Hrg for propt owners (Coast Fed Proj.) Comments Gen'l Cnsl Statement of Proceedings Steel Estrada Comments J. Estrada 0 • A RESOLUTION OF THE AZUSA COMMUNITY REDEVELOPMENT AGENCY Res. #595 FINDING AND DETERMINING THAT THE PUBLIC INTEREST, Necessity to CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN acquire REAL PROPERTY FOR REDEVELOPMENT PURPOSES AND ALL USES (Estrada) APPURTENANT THERETO. (PARCEL 8605-1-32; ESTRADA) 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 NOES: DIRECTORS: MOSES ABSENT: DIRECTORS: NONE 239, 255, 305 AND 333 W. Foothill Blvd., - Abdelnour Abdelnour/Panchols villa/volcano Burger/Cheap Wheels Redevelopment Director Steel advised that this was another Comments parcel that was needed for the project. The Abdelnour Steel Family owns the property, and the acquisition agent has been negotiating with George Abdelnour. All procedures have been followed in the same manner as stipulated prior. There was no one in attendance to represent the owner or Abdelnour tenants. not present Director Naranjo then offered a resolution entitled: A RESOLUTION OF THE AZUSA COMMUNITY REDEVELOPMENT AGENCY Res. #596 FINDING AND DETERMINING THAT THE PUBLIC INTEREST, Necessity to CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN acquire REAL PROPERTY FOR REDEVELOPMENT PURPOSES AND ALL USES (Abdelnour) APPURTENANT THERETO. (PARCELS 8605-1-27 TO 31 AND 8608-22-5 TO 8; ABDELNOUR) Moved by Director Naranjo, 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, NARANJO, LATTA NOES: DIRECTORS: MOSES ABSENT: DIRECTORS: NONE 201 W. Foothill Blvd. - Shaw/Gonzales/Exxon Station Redevelopment Director Steel advised the Agency that this particular parcel was more complicated to acquire as four separate entities claim ownership. Soils issue are also a factor in acquiring this property and, to date, Exxon will not allow the Agency access to the property to test for contamination. Without soils testing there is no way to know the extent, if any, of contamination and how much it will cost to clean up the site. Thus, it makes it virtually impossible to negotiate compensation with the owners of the property. Once the resolution of necessity is filed, the court would order Exxon to permit testing of the soil. The Chairman then asked the amount of grant funds involved in the building of these apartments and was advised approximately three million dollars. Director Avila requested clarification on the term "grant". Mr. Steel advised her that there were no grant funds involved in this project, it was Agency monies, used to acquire the properties and that this was an investment that would generate property taxes in the future. Chairman Moses discussed this project and stated that these funds could be used elsewhere in the City, and that people did not want any more apartments in the City. Executive Director apprised him of the apartment complexes that had 07/17/89 PAGE THREE Shaw/Gonzales Comments Steel General discussion 0 0 been built and which were a catalyst for commercial development. General discussion ensued between the Council regarding the merits of this project. Mr. Darwin Shaw, Jr., speaking on behalf of his father, the Comments owner of two of the lots, addressed the Agency and stated D. Shaw, Jr. that he would sell the property, and that if it were purchased and escrow initiated, Exxon would have to do something. Director Naranjo then offered a resolution entitled: A RESOLUTION OF THE AZUSA COMMUNITY REDEVELOPMENT AGENCY Res. #597 FINDING AND DETERMINING THAT THE PUBLIC INTEREST, Necessity to CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN acquire REAL PROPERTY FOR REDEVELOPMENT PURPOSES AND ALL USES (Shaw/ APPURTENANT THERETO. (PARCELS 8605-22-1 TO 4; SHAW/GONZALES) Gonzales) Moved by Director Naranjo, 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, NARANJO, LATTA NOES: DIRECTORS: MOSES ABSENT: DIRECTORS: NONE 727 N. San Gabriel Ave.. - Ludwig/Commercial sewing Machine Ludwig Redevelopment Director Steel advised that the property is a Comments small unit at the corner of Santa Fe and San Gabriel Avenue. Steel As with all other properties, it was appraised and an offer has been made to the owner and staff is still negotiating for settlement. Mr. James Ludwig, owner of the property, stated that he has Comments been in business for over twenty years. He felt that the J. Ludwig interest of the Agency was not with the citizens but with the developer of the apartment complex. He felt that the City would benefit more by individual businesses rather than apartments. He also advised that if his property is needed, then he should receive just compensation for it. He felt that his property was worth more than the appraisal price; and, further, that he needed his business to make a living. General Counsel advised Mr. Ludwig that the Agency is Comments bound, by law to offer fair market value for his property, Gen'1 Cnsl and in addition to that, relocation benefits would be given to help him get established in another area. Director Naranjo then offered a resolution entitled: A RESOLUTION OF THE AZUSA COMMUNITY REDEVELOPMENT AGENCY Res.#598 FINDING AND DETERMINING THAT THE PUBLIC INTEREST, Necessity to CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN acquire REAL PROPERTY FOR REDEVELOPMENT PURPOSES AND ALL USES (Ludwig) APPURTENANT THERETO. (PARCEL 8608-22-13; LUDWIG) 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 NOES: DIRECTORS: MOSES ABSENT: DIRECTORS: NONE 715 N. San Gabriel Ave., - Remington/Herbert/Bob's Bug Remington/ Repair/1 Q R Realtors/Azusa Glass Herbert Redevelopment Director Steel addressed this property and Comments stated that the same process was used as in all the Steel properties under consideration this evening. 07/17/89 PAGE FOUR 0 0 Mr. Alvin Herbert, half -owner of the property, addressed the Comments Agency and stated that he has advised Agency staff of the A. Herbert price that he believes is fair for his property and that price has not been reached to date. Mr. Paul Remington, half -owner of the property, addressed Comments the Agency and advised that he agrees with his partner that P. Remington the Agency is not offering a fair amount for the property. Director Naranjo then offered a resolution entitled: A RESOLUTION OF THE AZUSA COMMUNITY REDEVELOPMENT AGENCY FINDING AND DETERMINING THAT THE PUBLIC INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN REAL PROPERTY FOR REDEVELOPMENT PURPOSES AND ALL USES APPURTENANT THERETO. (PARCELS 8608-17 & 18; REMINGTON/HERBERT) 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 NOES: DIRECTORS: MOSES ABSENT: DIRECTORS: NONE 717 N. San Gabriel Ave.. - Camarena Res. #599 Necessity to acquire (Remington/ Herbert) Camarena Redevelopment Director Steel advised that the property in Comments question is a small single family residence. All procedures Steel were followed as stipulated prior. Staff has worked with the tenant and the owner to secure replacement housing. Mrs. Phyllis Camarena Hernandez advised that she, too, felt Comments that the offer made for her property was not sufficient, P. Camarena however, she and staff were still negotiating. Hernandez Director Stemrich then offered a resolution entitled: A RESOLUTION OF THE AZUSA COMMUNITY REDEVELOPMENT AGENCY Res. #600 FINDING AND DETERMINING THAT THE PUBLIC INTEREST, Necessity to CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN acquire REAL PROPERTY FOR REDEVELOPMENT PURPOSES AND ALL USES (Camarena) APPURTENANT THERETO. (PARCEL 8608-22-16; CAMARENA) 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, NARANJO, LATTA NOES: DIRECTORS: MOSES ABSENT: DIRECTORS: NONE 721 N. San Gabriel Ave.. - Hernandez Hernandez Redevelopment Director Steel advised that the property was a Comments small single family residence. All procedures have been Steel followed and that staff has been working with the owner in the relocation process. Several proposals have been offered and negotiations continue. Mrs. Hernandez advised that she did not wish to speak at No comments this time; however, it was ascertained that she felt the Hernandez same way about this parcel as she did of the one at 717 N. San Gabriel Avenue. Director Stemrich then offered a resolution entitled: 07/17/89 PAGE FIVE A RESOLUTION OF THE AZUSA COMMUNITY REDEVELOPMENT AGENCY Res. #601 FINDING AND DETERMINING THAT THE PUBLIC INTEREST, Necessity to CONVENIENCE AND NECESSITY REQUIRE THE ACQUISITION OF CERTAIN acquire REAL PROPERTY FOR REDEVELOPMENT PURPOSES AND ALL USES (Hernandez) APPURTENANT THERETO. (PARCEL 8608-22-15; HERNANDEZ) 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, NARANJO, LATTA NOES: DIRECTORS: MOSES ABSENT: DIRECTORS: NONE Moved by Director Naranjo, seconded by Director Avila and Documents carried by roll call to approve into the record the fifteen appvd to be documents listed for each particular property that was placed in discussed this evening. Chairman Moses dissenting. record Director Latta offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #602 AGENCY OF THE CIY OF AZUSA REGARDING THE SALARIES AND salaries BENEFITS OF ITS NON -REPRESENTED AND MANAGEMENT EMPLOYEES, non-rprsntd, ELECTED AND APPOINTED OFFICIALS EFFECTIVE JULY 1, 1989. mngmnt, elec- ted & apptd Moved by Director Latta, seconded by Director Stemrich to officials 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 At the June 19th meeting, staff was directed to prepare OPAs for Owner Participation Agreements for the remaining buildings bldgs on on the west side of Azusa Avenue for seismic improvements Azusa Ave. and/or facade rehabilitation. Three resolutions were presented for adoption. The Secretary read a communication from the property owner OPA w/Garofa- at 621-625 N. Azusa Avenue, Mrs. Darlyne Garofalo, to cont to requesting that this item be continued to the next meeting, nxt mtg as she was unable to attend due to illness in the family. It was consensus of the Agency to continue the matter. Director Naranjo offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #603 AGENCY OF THE CITY OF AZUSA APPROVING AN AGREEMENT ENTITLED OPA w/W. "OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE AZUSA Billotti REDEVELOPMENT AGENCY AND WILLIAM BILLOTTI FOR 631-633 NORTH 631-633 N. AZUSA AVENUE." Azusa Ave. 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 Naranjo offered a resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT Res. #604 AGENCY OF THE CITY OF AZUSA APPROVING AN AGREEMENT ENTITLED OPA w/W. "OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE AZUSA Billotti REDEVELOPMENT AGENCY AND WILLIAM BILLOTTI FOR 635 NORTH 635 N. Azusa AZUSA AVENUE." Ave. 07/17/89 PAGE SIX Moved by Director Naranjo, seconded by Director Avila 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 Rainbow Angling Club rehabilitation work is underway. Rainbow Angl. To oversee construction on behalf of the Agency, an Club contract independent building inspector is recommended. The firm of inspector JayKim Engineers was proposed for approval. Chairman Moses questioned the need for the Agency to expend Comments this amount of money and if it were necessary for us to do Moses SO. Redevelopment Director Steel advised that it was not mandatory for us to do so, but with the history of the project, it was important to the Agency that all the work completed be done properly. Our Building Inspector could not possibly spend the time monitoring the construction as an independent inspector could. Discussion ensued regarding the fact that this contract inspector was not essential but necessary , in view of the past problems with this project; and that our building inspector could not spend the amount of time needed to closely monitor the construction. The contract inspector would be actually reviewing the plans and making sure that they were carried out to the letter, then reporting to the Agency and the Building Department of his findings. Our Building Inspector would still make sure that all Code requirements were conformed with and have final inspection. With regard to the cost of contracting for this inspector, it is a legitimate expense funded through the Bond Company and not from Redevelopment funds or the General Fund. Further discussion was held regarding the disastrous conditions of that project and that the Agency could ill afford duplication of same. That the City issued mortgage revenue bonds in the amount of ten million dollars for low interest mortgages and when all the problems developed and the owners abandoned their homes, the Agency had to foreclose on those properties; that is how the Agency became involved in owning the twelve units that were being rehabilitated. It was felt that this was a small amount to pay to ensure proper construction. Further discussion ensued regarding all the costs that the Agency has expended on these units to date. Comments Steel General discussion It was then moved by Director Naranjo, seconded by Director Appv JayKim Avila and carried by roll call to approve the firm of JayKim for bldg insp Engineers to provide inspection services at a cost not to @ Rainbow exceed $15,000.00. Chairman Moses dissenting, as he wanted Angl Club more information on this item. Director Latta offered three separate resolutions authorizing payment of warrants by the Agency entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF Res. #s 605, AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF 606, & 607 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: AYES: DIRECTORS: AVILA, STEMRICH, NARANJO, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE 07/17/89 PAGE SEVEN Moved by Director Latta, seconded by Director Naranjo and Recess to end unanimously carried by roll call to recess until the end of of Cncl mtg the City Council meeting. TIME OF RECESS: 9:32 P.M. THE REDEVELOPMENT AGENCY CONVENED JOINTLY WITH THE CITY COUNCIL AT 11:20 P.M. Redevelopment Director Steel then displayed renderings of the facade improvements that are planned for the buildings on Azusa Avenue. Convene jntly w/Cncl Facade rehab renderings Moved by Councilman/Director Latta, seconded by Adj to 7/31 Councilman/Director Stemrich and unanimously carried to Parish Hall adjourn the meeting to July 31, 1989, at 7:30 P.M., at the Parish Hall, 402 N. Dalton. TIME OF ADJOURNMENT: 11:24 P.M. NEXT RESOLUTION NO 608 07/17/89 PAGE EIGHT