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HomeMy WebLinkAboutMinutes - March 15, 1993 - RA0 0 CITY OF AZUSA MINUTES OF THE REDEVELOPMENT AGENCY REGULAR MEETING MARCH 15, 1993 - 8:05 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, Redevelopment Project Manager Forintos, Department Heads, Secretary Solis, Deputy Secretary Toscano. THE CITY COUNCIL CONVENED JOINTLY WITH THE REDEVELOPMENT AGENCY AT 8:05 P.M. CONTINUED JOINT PUBLIC HEARING - on proposed sale of certain real property in the Azusa Central Business District Redevelopment Project. The Mayor/Chairman declared the Hearing re -opened. Redevelopment Director Steel addressed the issue providing a detailed history of the property located at the northwest corner of Foothill and San Gabriel known as the former Casden site. He stated that the purpose of the Hearing was to consider a Disposition and Development Agreement with Harlan Lee and Associates in order to construct 41 detached single-family units on lots ranging from 3,500 to 4,500 square feet. He offered a slide presentation of the site before it was acquired by the Agency as well as slides of the proposed single family units. He addressed the issues of site characteristics, market conditions, community housing trends, low and moderate income housing obligations, financing strategy, the exclusive negotiations agreement, the purpose of the DDA, developer qualifications, and numerous issues dealing with the construction, requirements and benefits of the development of the property. Call to order Roll Call Also Present Cncl Convene w/CRA Cont Jt Hrg Sale CDBG Redevelop- ment Dir comments Mr. Jeff Lee of Harlan Lee and Associates addressed M. Lee of Council/Boardmembers requesting approval to develop the Harlan Lee property and further addressed his company's comments responsibilities, references, qualifications and goal to develop a quality project on the property. Redevelopment Director Steel again addressed the issue Dir Steel addressing the Homeowner Association responsiblities, add 11 com- developer obligations, housing provisions required by State ments Law, owner requirements, prices of the units, amenities of the development, net cost to the Agency, land purchase price, Environmental Impact and appraisels. He stated that units will be offered to let time home buyers, with the first pool to applications of Azusa residents only, and if there are not enough it will be opened to all qualified buyers. He stressed that the development will be a high quality housing project. Councilman/Director Naranjo requested an explanation Naranjo regarding the appraised value of the property and the questions conditions of the low and moderate income funding. Redevelopment Director Steel responded stating that there will be a high lot improvement cost because of the need to install overhead utilities, water and sewer lines, curbs, gutters and sidewalds, storm drains and steets, in addition to amenities and landscaping the developer will provide. He also stated that the low and moderate income funding can only be used for housing purposes. Councilman/Director Dangleis of the property owner and Homeowners Association. questioned the resale limits the responsibilities of the Redevelopment Director Steel responded that the home owner would have to sell the property at fair market value plus a percentage that the City would take. He explained the procedures followed in assorted cases of sale of the units and also stated that the Homeowners Association would be responsible for landscape maintenance as well as the pool and spa area. Further, explaining other procedures to be followed for the creation of the Homeowners Association. Councilman/Director Alexander addressed the Hearing with his concerns and reasons for opposing the project which were: annual income requirements for purchasers, the silent second, interest rate on return, accounting reports, financing percentages, profit to developers, and loss of money by the City. His main concern was the developer not being able to secure financing for the project. Redevelopment Director Steel responded to all Councilman/Director Alexander's concerns in full detail. Ms. Darlyne Garofalo addressed the issue expressing her opinion in favor of the project as well as her concerns with small businesses in the downtown area if the project was not built. Mr. Art Morales addressed the issue expressing his opinion in opposition to the project. Mr. Carrel Cline addressed the issue expressing his opinion in favor of the project. Mr. Ron Legault addressed the issue in opposition to the project. Moved by Councilman/Director Naranjo, seconded by Councilman/Director Dangleis and unanimously carried by roll call to close the Hearing. Additional discussion was held between Council/Boardmembers and staff regarding a possible provision between the developer and City that in the event the developer does not secure permanent financing for the development of the project, that they sell the land back to the City at the same price. Dir Steel response Dangleis questions Dir Steel response Alexander questions & comments Dir - Steel response D. Garofalo comments A. Morales comments C. Cline comments R. Legault comments Hrg clsd Addl' disc Redevelopment Director Steel explained the revesting process and stated that the agreement is structured so that Dir Steel the land will not be reconveyed until a construction loan comments is recorded but that does not guarantee that a bank will not go under or other problems will not arise. Moved by Mayor Chairman Moses, seconded by Councilman Director Dangleis and unanimously carried by roll call to Delibera- continue deliberation portion of the Hearing to the second tion port meeting in April in order for legal Counsel for the City of Hrg cont and Harlan Lee to review certain sections of the DDA on the to 4/19/93 question of sell back price for the property in case the mtg developer does not secure permanent financing. 03/15/93 PAGE TWO 0 THE REDEVELOPMENT AGENCY RECESSED AND THE CITY COUNCIL Recess CONTINUED AT 10:10 P.M. CRA THE CITY COUNCIL RECESSED AND THE REDEVELOPENT AGENCY Cncl recess CONTINUED AT 10:22 P.M. PUBLIC PARTICIPATION Pub Prtc Mr. Art Morales expressed his oppinion in regards to two A. Morales properties located within the City. comments The CONSENT CALENDAR consisting of Items I -3a through I -3c Cons Cal was approved by motion of Director Madrid, seconded by apvd Director Naranjo, and unanimously carried by roll call vote. a. The minutes of the regular meeting of March 1, 1993, were approved as written. b. The Agency has received a preliminary concept proposal from Urban Housing Systems to acquire and rehabilitate the Hermitage Park Project at 200 East Gladstone. The proposal contemplates a complete refurbishing of the 147 -unit senior citzen project. Agency staff has expressed interest in assisting with the project to help maintain rental affordability. Staff and the developer are requesting basic concept approval and direction to commence negotiations to determine project cost and the need for Agenci participation. A resolution approving the Basic Concept was adopted and entitled: Min apvd Rehab Hermi- tage Park Proj 200 E Gladstone A RESOLUTION OF THE BOARD OF DIRECTORS OF THE Res #93-R13 REDEVELOPMENT AGENCY OF THE CITY OF AZUSA GRANTING basic conc BASIC CONCEPT APPROVAL FOR THE PROJECT PROPOSED BY Urban Housg URBAN HOUSING SYSTEMS. Sys C. A resolution authorizing payment of warrants by the Agency was adopted and entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE Res #93-R14 CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS Warrant TO BE PAID OUT OF REDEVELOPMENT AGENCY FUNDS. SCHEDULED ITEMS NONE S�CIAL CALL ITEMS } NONE Moved by Director Madrid, seconded by Director Naranjo and unanimously carried by roll call to adjourn. Next Resolution: 93-RlS Next Ordinance: 93-ROl 03/15/93 PAGE THREE Sched Items None Spec Cal Itm None Adjourn