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HomeMy WebLinkAboutResolution No. 3760 0 RESOLUTION NO. 376 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE PROJECT OF COASTFED PROPERTIES 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. CoastFed Properties (Casden Co.) has proposed to redevelop certain real property within the Central Business District Redevelopment Project Area which consists of a multiple -family residential apartment complex on approximately acres of land generally located north of Foothill Boulevard and surrounded by the Santa Fe Railroad right-of-way and San Gabriel Avenue. B. On June 15, 1987, the Agency selected CoastFed Properties over other potential developers who were not owners or tenants of the subject property based on the superiority of the CoastFed Properties' 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 east 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 Dora Ruelas, Phyllis Hernandez, Robert Montano, John Gonnella, Bill Simpson, June Hartwell, PMT/RES6115 0 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 proposal, 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 CoastFed Properties' 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 the introduction of comparably more affluent households into the downtown area with an increase in the commercial market potential for area businesses, and will also alleviate blighted conditions in this key location in the City, and further create a major aesthetic improvement 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 CoastFed Properties is of great benefit to the community in achieving its goals and objectives based on -2- PMT/RES6115 • • the information set forth in subparagraph 1 above. Also, the effect of the increased commercial markets due to increased housing 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 proposal 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 CoastFed Properties' 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 CoastFed Properties' 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. CoastFed Properties 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 CoastFed Properties' project is planned of located in a manner that will be most compatible with the greatest public good and the least private injury. 7. The acquisition of the properties identified in the CoastFed Properties' proposal is necessary for the implementation of the project and necessary to maximize the public interest, convenience and necessity. -3- PMT/RES6115 0 40 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. CoastFed Properties to redevelop the subject property, provided that the Agency and CoastFed Properties can reach agreement on an acceptable disposition and development agreement for the subject property. By accepting the CoastFed Properties' 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. I HEREBY CERTIFY that the foregoing duly adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa, at meeting thereof held on the 29thday of June AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: Resolution was Azusa a regular 1987. AVILA, COOK, CRUZ, LATTA MOSES NONE