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HomeMy WebLinkAboutMinutes - January 4, 1993 - RACITY OF AZUSA MINUTES OF THE REDEVELOPMENT AGENCY REGULAR MEETING JANUARY 4, 1993 - 7:50 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: DANGLEIS, MADRID, NARANJO ALEXANDER, MOSES ABSENT: DIRECTORS: NONE ALSO PRESENT Interim General Counsel Barbosa, Executive Director Garcia, Redevelopment Director Steel, Department Heads, Secretary Solis, Deputy Secretary Toscano. PUBLIC PARTICIPATION NONE Call to order Roll Call Also Present Pub Prtc None The CONSENT CALENDAR consisting of Items I -2a through I -2e, Cons Cal was approved by motion of Director Dangleis, seconded by apvd Director Madrid, and unanimously carried by roll call with the exception of items I -2b and I -2c, which were considered under Special Call portion. a. The minutes of the regular meeting of December 21, Min apvd 1992, were approved as written. b. SPECIAL CALL ITEM. Spec Call C. SPECIAL CALL ITEM. Spec Call d. The Agency Treasurer's Report, as of November 30, Treas Rpt 1992, was received and filed. rec & filed e. A resolution authorizing payment of warrants by the Agency was adopted and entitled: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF Res #93-R2 AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID Warrant OUT OF REDEVELOPMENT AGENCY FUNDS. SCHEDULED ITEMS NONE SPECIAL CAIS, ITEMS Mr. Art Morales addressed Boardmembers stating that the City is overpaying for the property to be purchased located at the northwest corner of Sixth Street and Alameda Avenue. He suggested that the seller of the property, the Presbyterian Church, donate from the proceeds of the sale $10,000 dollars for charity to the Azusa food bank. Schad Itm None A. Morales re. purchase of property at Sixth and Alameda. General Counsel responded advising that the City can pay market value of said property, however, it cannot withold funds from the church or require them to make charitable contributions from sale proceeds. Lengthy discussion was held regarding purchase of property, Director Steel addressed Boardmembers stating that the property was being purchased to build single family residences to be in compliance with State and Federal law which mandates the building of at least ten units from Low -MOD Housing funds; if the City does not comply, the money will eventually be taken from the City by the Housing Development authorities for their own projects. Chairman Moses stated that the city should spend money on amortized homes instead. Madrid responded that the purpose of amortizing homes is due to the fact that they do not comply with building codes. Director Steel also stated that this would be an investment, not an expense for the City. Director Dangleis also stated that the city should not pay for an R3 zone property when in fact this would be used for single family residences. Further discussion was held with regard to whether or not this particular property should be down zoned to keep it as a single family residence property. It was then moved by Director Madrid, seconded by Director Naranjo and carried by roll to approve Resolution No. 93- R1, approving the purchase of property located at the corner of Sixth Street and Alameda Avenue, in the amount of $240,000, with Chairman Moses and Director Alexander dissenting. Counsel responds Discussion regarding purchase of property located on Sixth and Alameda. Presbyterian Church Property Adopt Reso #93-R1 purchase of Presbyterian property Mr. Art Morales addressed the Boardmembers requesting an A.Morales explanation on the request from Redevelopment to re. Azusa subordinate its interest on the Azusa Promenade. Promenade Director Steel addressed Boardmembers responding that the Director Agency holds a second deed of trust on the Azusa Promenade Steel, which secures interest in the property. The Agency is explanation entitled to a share in the profits upon sale of the re. Azusa shopping center after preferred return to the developer. Promenade Because of the unstable financing environment, the & Subor- developer has been unable to secure long-term financing for dination the project and has been forced to renegotiate with the construction lender. The construction lender has demanded a cross -default provision with another project and requires the Agency to subordinate its interest to that provision, and extended for two more years, and if the Agency does not subordinate there is a risk of the property going into foreclosure. Director Alexander stated that the Agency should not be Alexander responsible for the developer's foreclosure. addresses General Counsel advised that according to the request the Atty developer is asking, it shows that there is the possibility advises of having a compatible management in this development, that it would be to the City's benefit to approve such request. It was then moved by Chairman Moses, seconded by Director Approved Naranjo and carried by roll call to approve the Subor- subordination of the Agency's second deed of trust to the dination cross -default condition subject to approval of all loan for the documents for the Azusa Promenade, with Director Alexander Azusa dissenting. Promenade It was then moved by Director Dangleis, seconded by Adjourn Director Madrid and unanimously carried by roll call to adjourn. 0 0 TIME OF ADJOURNMENT: 8:45 P.M. it S8 TARY NEXT RESOLUTION NO. 93-R3 NEXT ORDINANCE NO. 93-RO1 PAGE THREE