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HomeMy WebLinkAboutMinutes - September 18, 1995 - RACITY OF AZUSA MINUTES OF THE REDEVELOPMENT AGENCY REGULAR MEETING SEPTEMBER 18, 1995 - 9:03 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 Alexander called the meeting to order. PRESENT: DIRECTORS: HARDISON, MADRID, NARANJO, BEEBE, ALEXANDER ABSENT: DIRECTORS: NONE General Counsel Deitsch, Redevelopment Director Cervantes, City Department Heads, Secretary Solis, Deputy Secretary Toscano. Call to Order Roll Call Also Present THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY Cncl/CRA CONVENED JOINTLY AT 8:43 P.M. convene jointly CONTINUED JOINT PUBLIC HEARING - on proposed Disposition and Joint Pub Hrg Development Agreement with Donald J. Nores and Joyce A. Nores, for property DDA Nores located in the West End Redevelopment Project Area. Redevelopment Director Cervantes addressed the Hearing detailing the project proposal, the IRS 1031 tax exchange, a $25,000 loan to the developer at an interest rate of 4% for three years, street vacation of a portion of Eighth Street, budget impact, and financial analysis, the anticipated and estimated Agency costs and revenues for the project. The total cost would be $559,506 or $8.65 per sq. ft. He advised that the Agency must make a finding that the blighting condition causes a reduction of, or lack of proper utilization of the area to such an extent that it constitutes a serious physical and economic burden to the community that cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment and that the project meets the requirements of the Section 33433 Report. Discussion was held between Councilmembers and staff regarding sales tax predictions, possible developer's testing of soils and geological condition of the site, developer is to provide a monetary ceiling on page seven of the agreement, and in Section 4.27 of the agreement regarding Use and Operation Covenant, discussions are still in process relating to, in case of default, that the developer will sell to a business comparable to its own. Testimony was solicited, but none was received. CRA Dir comments Discussion Testimony/none Moved by Councilmember/Director Madrid, seconded by Councilmember/Director Hrg clsd Hardison and unanimously carried by roll call to close the Hearing. 0 0 Councilmember Beebe offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA Res. 95-C132 APPROVING THE PROPOSED NEGATIVE DECLARATION OF Negative Dec ENVIRONMENTAL IMPACT FOR THE DONALD J. NORES AND JOYCE A. NORES DEVELOPMENT PROJECT. Moved by Councilmember Beebe, seconded by Councilmember Hardison to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, MADRID, NARANJO, BEEBE, ALEXANDER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Director Beebe offered a Resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE PROPOSED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT FOR THE DONALD J. NORES AND JOYCE A. NORES DEVELOPMENT PROJECT. Moved by Director Beebe, seconded by Director Hardison to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: HARDISON, MADRID, NARANJO, BEEBE, ALEXANDER NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE Councilmember Beebe offered a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING THE SALE OF REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA PURSUANT TO THAT CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND DONALD J. NORES AND JOYCE A. NORES. Moved by Councilmember Beebe, seconded by Councilmember Hardison to waive further reading and adopt. Resolution passed and adopted by the following vote of the Council: AYES: COUNCILMEMBERS: HARDISON, MADRID, NARANJO, BEEBE, ALEXANDER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE Director Beebe offered a Resolution entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE SALE OF REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA PURSUANT TO THAT CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND DONALD J. NORES AND JOYCE A. NORES. 09/18/95 PAGE TWO Res. 95-R55 Negative Dec Res. 95-C133 DDA/wish Nores/Digital Printing Res. 95-R56 DDA/w/Nores Digital Printing 0 0 Moved by Director Beebe, seconded by Director Hardison to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: HARDISON, MADRID, NARANJO, BEEBE, ALEXANDER NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE THE CITY COUNCIL RECESSED AND THE REDEVELOPMENT AGENCY Cncl recess/ CONTINUED AT 9:30 P.M. CRA continued The CONSENT CALENDAR consisting of items I -2a and I -2b was approved by Consent Cal motion of Director Beebe, seconded by Chairman Alexander and unanimously I -2a & I -2b carried by roll call vote. a. The Minutes of the regular meeting of September 5, 1995, were approved as written. b. Resolution authorizing payment of warrants by the Agency were adopted and entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT OF REDEVELOPMENT FUNDS. SPECIAL CALL ITEMS None. Economic Development Specialist Hall addressed the issue stating that Arthur and Bernadine Andrews are requesting that the Redevelopment Agency Board allow an upscale "vintage" clothing store to open at their building at 429 North Azusa Avenue. Redevelopment Agency approval is needed because this type of use is not permitted under the Azusa Municipal Code. The Code does allow the Redevelopment Agency to enter into agreements granting certain land uses which might contradict the Code. She stated that the Owner Participation Agreement requires that the Andrews rehabilitate existing structure, including awnings and signage, install landscaping and irrigation, replace chain link fencing with decorative wrought iron and resurface and stripe the parking lot She also stated that the tenant, Mr. Mario Cesario will not be allowed to sell "donated" clothes nor use the word "thrift" in his signage for the business. Further, the lease will be non -transferable and will not be able to be taken over by a new owner. Min appvd Res. 95-R57 Warrants Special Call None Sched Items M. Hall/OPA w/Andrews Discussion was held between Directors and Mr. P. Basil Lambros, Attorney for Mr. Discussion Cesario, regarding the proposed business, other similar businesses owned by Mr. Cesario, proposed sales tax, purchase of merchandise, terms of lease, and proposed opening day. Director Hardison offered a Resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE Res. 95-R58 REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING AN OPA w/ OWNER PARTICIPATION AGREEMENT WITH THE ANDREWS FAMILY Andrews TRUST. 09/18/95 PAGE THREE Moved by Director Hardison, seconded by Director Naranjo to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: HARDISON, MADRID, NARANJO, BEEBE, ALEXANDER NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE Redevelopment Director Cervantes addressed the issue stating Oritex, Inc. wishes CRA Dir to assign its Owner Participation Agreement to Golden State Plastics, Inc., due to Assignment extreme business hardship it is experiencing. He advised that the City has a of Oritex, Inc second trust deed of $55,000 to rehab the building and that the loan was to be OPA to forgiven in ten years, however, the proposed assignment will include a provision Golden State requiring Golden State Plastics to remain in full operation for a minimum of five Plastics, Inc. years and if they should sell or move their business in less than that, the entire $55,00 loan will be due and payable. In addition, Golden State Plastics will hire no less than 23 full time employees and improve the Coney side of the parcel with additional fencing, landscaping and entry gate. He advised that there are no budget requirements at this time. Discussion was held between Directors and staff regarding transfer clause, Chapter Discussion 11, Oritex is proposing to file after the sale, and the Owner Participation Agreement with Oritex. Director Beebe offered a Resolution entitled: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING AN ASSIGNMENT AND ASSUMPTION AGREEMENT WITH ORITEX, INC. AND GOLDEN STATE PLASTICS, INC. Moved by Director Beebe, seconded by Director Hardison to waive further reading and adopt. Resolution passed and adopted by the following vote of the Agency: AYES: DIRECTORS: HARDISON, BEEBE NOES: DIRECTORS: ALEXANDER ABSENT: DIRECTORS: NONE THE REDEVELOPMENT AGENCY RECESS] MADRID, NARANJO, AT: 9:30 P.M. Res. 95-1159 Appvg Assign & Assumption Agmt with Oritex, Inc. & Golden State Plastics, Inc. Recess THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY Cncl/CRA CONVENED JOINTLY TO RECESS TO CLOSED SESSION AT 9:37 P.M. convene jointly Moved by Councilmember/Director Beebe, seconded by Closed Session Councilmember/Director Naranjo and unanimously carried by roll call to recess to Closed Session to discuss the following: Real Property Negotiations (Gov. Code Sec. 54956.8) Azusa Redevelopment Agency/Mission Chrysler, 229 South Azusa Avenue, Azusa California, Terms and conditions of payment. isting Litigation (Subdivision W of Gov. Code Sec, 549564 City of Azusa v. City of Vernon. 09/18/95 PAGE FOUR 0 0 TIME OF RECESS TO CLOSED SESSION: 9:37 P.M. THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY RECONVENED AT 11:25 P.M. City Attorney/General Counsel Deitsch advised that there was no reportable action from Closed Session. It was noted that Councilmember/Director Madrid left the meeting at 11:15 P.M. Recess Reconvened City Attorney General Counsel comments Madrid exit Moved by Councilmember/Director Beebe, seconded by Adjourn Councilmember/Director Naranjo and unanimously* carried by roll call to adjourn. TIME OF ADJOURNMENT: 11:26 P.M. NEXT RESOLUTION NO. 95-R60. NEXT ORDINANCE NO. 95-01 *indicates Madrid absent. 09/18/95 PAGE FIVE