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HomeMy WebLinkAboutMinutes - September 16, 1996 - RA0 0 CITY OF AZUSA MINUTES OF THE REDEVELOPMENT AGENCY REGULAR MEETING SEPTEMBER 16,1996 - 8:35 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 Pro -Tem Naranjo called the meeting to order. Call to Order ROLL CALL Roll Call PRESENT: DIRECTORS: HARDISON, MADRID, NARANJO, BEEBE ABSENT: DIRECTORS: ALEXANDER Also Present General Counsel Deitsch, Executive Director Garcia, Interim Redevelopment Director Steel, City Department Heads, Secretary Solis, Deputy City Clerk Toscano. The CONSENT CALENDAR consisting of items I -la through I -If were approved by motion of Director Madrid, seconded by Director Beebe and unanimously* carried by Consent Cal. roll call vote, with the exception of item I - Ie, which was considered under the Special Appvd, Item Call portion of the Agenda. I-1 b & I-1 c Spec Call a. The Minutes of the regular meeting of September 3, 1996, were approved as written. Min appvd. b. HUMAN RESOURCES ACTION ITEMS - Step increase was approved for S. Human Res. Thompson, Administrative Secretary. Action Items C. The Agency Treasurer's Report as of July 31, 1996 was received and filed. Treas Rpt d. The Redevelopment Agency received a proposal from Pro -One, Inc. To purchase and develop the Agency -owned property at 1000 West Foothill Boulevard. Pro - One, Inc. is an after -market motorcycle accessories manufacturer and is owned by Steve Seidner. Mr. Seidner would like to purchase the site and construct a 40,000 to 50,000 square foot building for industrial, retail, and warehousing use. The proposed Exclusive Negotiation Agreement would allow staff to negotiate for 90 days with Mr. Seidner on the terms of a potential Disposition and Development Agreement. This potential DDA would be brought to the City Council and Agency Board for consideration, after negotiations are complete. The following Resolution was adopted: A RESOLUTION OF THE AZUSA REDEVELOPMENT AGENCY BOARD OF Res. No. 96-R48 DIRECTORS APPROVING AN EXCLUSIVE NEGOTIATION AGREEMENT Appvg Agmt BETWEEN THE AGENCY AND PRO -ONE, INCORPORATED, FOR Pro -One, Inc. CERTAIN PROPERTY LOCATED AT 1000 WEST FOOTHILL BOULEVARD. e. SPECIAL CALL ITEM. Special Call Resolution authorizing payment of warrants by the Agency was adopted and entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF Res. 96-R49 AZUSA ALLOWING CERTAIN CLAIMS AND DEMANDS TO BE PAID OUT Warrants OF REDEVELOPMENT FUNDS. Redevelopment Project Manager Forintos addressed Agency Board Members detailing the history of the Azusa Promenade Shopping Center leading up to the current proposed reconveyance of Agency Promissory Notes in Conjunction with the Sale of the property by West Venture/Westland Reserves to Golden Mountain Investment, Inc. He stated that under the Owner Participation Agreement there is a provision for Agency profit sharing if the Note payoff is equal to the less of the principal balance plus accrued interest, or 50% of the net sales proceeds. Staff advised that Keyser Marston and Associates reviewed the sale and determined that the developer does not owe the Agency any note repayment or any additional payment as a result of the proposed sale. He advised that the Azusa Promenade has been successful for the City and is generating annual sales tax, the new buyer is a development company out of Shanghai, China, the developer is financially strong, is good on detail and the existing Owner Participation Agreement will be assumed by the new developer and its rules such as maintenance. Mr. Sandy Segal, President of West Venture, addressed Agency Board Members reassuring them that West Venture will still be an active participant in the shopping center; he advised that a condition of the sale is that they continue to manage the shopping center, continue to collect rents, continue to market, and lease the center. He advised that the overseas investor's intention is to acquire more property. He stated that the center is 94% leased and that West Venture continues to have a stake in the center. Special Call Items CAR Project Mgr. comments re: sale of the Azusa Promenade Shopping Center by West Venture to Golden Mountain Investment, Inc. S. Segal of West Venture comments Moved by Director Beebe, seconded by Director Madrid and unanimously* carried by Approval of Re - roll call to approve the reconveyance of the two Promissory Notes and authorize the conveyance of two Executive Director to execute the documents. Promissory Notes Mr. Art Morales addressed the issue voicing concerns regarding prior transactions relating to the Azusa Promenade that were unrelated the issue. SCHEDULEDITEMS Interim Redevelopment Director Steel addressed the Purchase Agreement for Azusa Square Shopping Center (Krems), stating that the purchase price is $924,710, the terms of purchase are a clear title, property free from toxic contamination, and that the site is feasible for development. He stated that there is a 90 day due diligence process, the City will have an environmental consultant check out the property and present any findings to seller to remediate any identified problems and seller will bear cost. After conditions are acceptable, the Agency will deposit $350,000, and demolish the site and the reason is to eliminate blight conditional and get underneath to see if any other additional contaminants exist and seller will have to eliminate. He stated that the car wash will need to be relocated, and a deposit of %z purchase price, $2,462,355, will be made. He spoke about the resale price of the property, advised that the Agency must borrow the acquisition funds from the City with repayment from any excess land sales process and property tax increments. Lengthy discussion was held between Directors and Mr. Steel regarding the worst case scenario, relationship with Lewis Homes, relocation of tenant at car wash, reasons for breach of contract, demolition and clean-up costs, asbestos abatement, loan payback to City, options for the site, Krems responsibilities, financial guarantees, and the 90 day due diligence. Director Beebe expressed her concerns regarding the $50,000 the City will be paying for the demolition of the structures and status of the money if Krems should decide not to go through with the sale. Director Naranjo offered a Resolution entitled: 09/16/96 PAGE TWO A. Morales comments Scheduled Items CRA Dir comments re: Purchase Agreement Azusa Square Center (Krems Property) Lengthy Discussion 0 0 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING A PURCHASE AND SALE AGREEMENT WITH NATHAN S. KREMS AND ALAN D. SHULMAN AS TRUSTEE UNDER THE WILL OF HELEN GERTRUDE KREMS, DECEASED. Moved by Director Naranjo, 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 NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE It was consensus of the Board Members to adjourn. NEXT RESOLUTION NO. 96-R51. NEXT ORDINANCE NO. 96-01 *Indicates Alexander absent. 09/16/96 PAGE THREE Res. 96-50 approving Purchase & Sale Agreement Krems Property Adjourn