HomeMy WebLinkAboutResolution No. 3770 0
RESOLUTION NO. 377
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF THE CITY OF
AZUSA APPROVING THE PROJECT OF HALFERTY
DEVELOPMENT COMPANY OVER ALL OTHER
PROJECTS FOR REDEVELOPMENT OF CERTAIN
REAL PROPERTY WITHIN THE CENTRAL BUSINESS
DISTRICT REDEVELOPMENT PROJECT AREA AND
MAKING CERTAIN FINDINGS WITH RESPECT TO
OWNER -PARTICIPATION RIGHTS THEREON
THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF THE CITY OF AZUSA DOES RESOLVE AS FOLLOWS:
SECTION 1. The Board of Directors of the
Redevelopment Agency of the City of Azusa finds, determines
and declares that:
A. Halferty Development Company has proposed to
redevelop certain real property within the Central
Business District Redevelopment Project Area which
consists of an approximately 35,000 square foot
commercial center on property located generally
north of Foothill Blvd., South of the Santa Fe
Railroad right-of-way and between San Gabriel
Avenue and Azusa Avenue.
B. On June 15, 1987, the Agency selected Halferty
Development Company over other potential developers
who were not owners or tenants of the subject
property based on the superiority of the Halferty
Development Company's plan.
C. Pursuant to the "Azusa Redevelopment Agency
Rules Governing Participation and Reentry
Preferences for Property Owners, Operators of
Businesses and Tenants in Agency Project.Areas,"
adopted by the Board of Directors (hereinafter
"Owner -Participation Rules"), the Agency duly
notified the owners and tenants of the subject
property of their rights as owners and tenants of
property within the Central Business District
Project Area pursuant to the Owner -Participation
Rules. These persons were given 90 days within
which to submit a proposal for redevelopment of the
subject site and an additional 90 days within which
to present evidence to the Agency Board on the
projects and to discuss with the Board and Agency
staff the relative merits of the proposals.
D. Of the notices mailed to owners and tenants
within the subject property and west of the subject
property, eight responded with statements of
interest in participating in redevelopment. Of the
eight responses received, only one submitted a
proposal to redevelop the site and two others
expressed interest in participating in that
redevelopment proposal. The remaining responses
expressed an interest in selling property to the
Agency. Statements of interest were received from
PMT/RES6117 • •
Dora Ruelas, Phyllis Hernandez, Robert Montano,
John Gonnella, Bill Simpson, June Hartwell,
David Moody, Phyllis Camarena and Nehme Khalaf.
Two specific proposals for development came from
Mrs. June Hartwell, of Valley Craft Center on
property leased at 721 North Azusa Avenue, who
proposed to upgrade the structure and adjoining
structures at 717 and 723 North Azusa Avenue; and
from Bill Simpson at 451-471 West Foothill
Boulevard to include his apartment building in the
project.
E. On February 10, 1987, March 2, 1987, March 16,
1987, June 1, 1987 and June 15, 1987, the Agency
held hearings on the relative merits of the
CoastFed Properties and Halferty Development
Company proposals, the Hartwell proposal and the
Simpson proposal, at which hearing all of the
property owners and tenants of the subject property
were provided with the opportunity to speak to the
Board and present evidence on the relative merits
of the major proposals, as well as other proposals
or suggestions from the owners or tenants.
F. The Owner -Participation Rules, described
above, give priority to existing property owners
and tenants desiring to participate in the
redevelopment plan by building new industrial,
commercial or residential developments on their
existing properties. The rules further set forth
considerations which the Agency may follow in
resolving approval of conflicting proposals between
owners and other persons wishes to develop property
within the project area.
G. Approval of the Halferty Development Company
proposal over the others is in the best interests
of the City and the Agency, and is necessary for
the full and complete effectuation of the Central
Business District Redevelopment Project in that:
1. The Project is in conformity with the
intent and objectives of the Central Business
Redevelopment Project Plan in that the project
will provide an increase in the commercial
market potential for area businesses and
development, and will also alleviate blighted
conditions in this key location in the City,
and further create a major aesthetic improve-
ment to the area. The owner -participant
proposals, however, would not significantly
alleviate the conditions of physical and
economic blight in the area and would impede
development of the entire site. Further, the
owner -participant proposals would hinder the
Agency's goals for the project area as it
would continue a pattern of piecemeal
development and not provide a major increase
in the commercial market potential for area
businesses.
2. The proposal of the Halferty Development
Company is of great benefit to the community
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PMT/RES6117 •
in achieving its goals and objectives based on
the information set forth in subparagraph 1
above. Also, the effect of the increased
commercial development will increase the
potential for jobs in the downtown commercial
area which would not occur with a simple
upgrading of the facades of the owner -
participant buildings.
3. The amount of sales tax revenue, tax
increment revenue and economic benefit
accruing to the City of Azusa and the
Redevelopment Agency of the City of Azusa for
the CoastFed and Halferty proposals will be
significant. The CoastFed and Halferty
Commercial project valuation would be
$14,000,000, as opposed to the current
assessed valuation of the site at $1.07
Million, thus, tax increments to the Agency
alone should be approximately $130,000 per
year. This would not occur with the owner -
participant proposals which would simply
provide for minor increases in value based
upon remodeling of the building facades.
Additionally, the introduction of comparably
more affluent households into the downtown
area with the increased commercial market
potential will increase the sales tax revenue
for existing downtown businesses. Finally,
tax revenues will be increased by the Halferty
Development Company's proposal based upon the
fact that this project will stimulate private
investment in the downtown area to a much
greater extent than would the owner -
participant proposals.
4. The Halferty Development Company's
proposal will provide a significantly
increased level of employment opportunities
and economic benefit to the community for the
reasons discussed in this resolution to a much
greater extent than would the owners
proposals.
5. Halferty Development Company has the
ability to redevelop the entire site to
implement the proposed project based upon its
financial capability, prior experience with
similar projects, the ability to obtain
financing, and its willingness to abide by the
Agency's standards and development controls.
The owner proposals by their nature address
only a very small fraction of the entire
development and the owners have not
demonstrated the ability to undertake the
major project proposed by CoastFed Properties.
6. The Halferty Development Company's
project is planned of located in a manner that
will be most compatible with the greatest
public good and the least private injury.
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PMT/RES6117 • •
7. The acquisition of the properties
identified in the Halferty Development
Company's proposal is necessary for the
implementation of the project and necessary to
maximize the public interest, convenience and
necessity.
8. Owners and tenants who will be displaced
by this project will receive relocation
benefits from the Agency.
SECTION 2. The Board of Directors of the
Redevelopment Agency of the City of Azusa does hereby
approve the proposal of Halferty Development Company to
redevelop the subject property, provided that the Agency and
Halferty Development Company can reach agreement on an
acceptable disposition and development agreement for the
subject property. By accepting the Halferty Development
Company's proposal, the Board of Directors of the Agency
hereby finds that the owner -participation rights of the
owners and tenants within the subject property area have
been fully accorded said owners and tenants in accordance
with the Owner -Participation Rules for the project area and
that said rights are hereby terminated in accordance with
said rules.
SECTION 3. The Secretary shall certify the
adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 29th day of
June , 1987.
CHAIRMAN
I HEREBY CERTIFY that the foregoing Resolution was
duly adopted by the Board of Directors of the Azusa
Redevelopment Agency of the City of Azusa, at a regular
meeting thereof held on the 29th day of June , 1987.
AYES: BOARD MEMBERS: AVILA, COOK, CRUZ, LATTA, MOSES
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
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