HomeMy WebLinkAboutResolution No. 03-C07311
RESOLUTION NO, 03-C73
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA OVERRULING
WRITTEN AND ORAL OBJECTIONS AND ADOPTING WRITTEN FINDINGS IN
RESPONSE TO WRITTEN OBJECTIONS RECEIVED FROM AFFECTED PROPERTY
OWNERS AND TAXING ENTITIES AND OVERRULING SUCH WRITTEN
OBJECTIONS TO THE EIGHTH AMENDMENT TO THE REDEVELOPMENT PLAN
FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AND THE
THIRD AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE WEST END
REDEVELOPMENT PROJECT AREA
WHEREAS, the City Council of the City of Azusa ("City") approved and adopted a redevelopment
plan for the Central Business District Redevelopment Project Area ("CBD Project Area") on September 18,
1978, by Ordinance No. 2062; and approved and adopted a separate redevelopment plan for the West End
Redevelopment Project Area ("West End Project Area") on November 28, 1983, by Ordinance No. 2196; and
WHEREAS, on November 7, 1988, by Ordinance No. 2382, the City Council adopted the sixth
amendment to the redevelopment plan for the CBD Project Area and the first amendment to the West End
Project Area which, among other things, merged the CBD Project Area with the West End Project Area creating
one merged project area ("Merged Project Area"); and
WHEREAS, the Redevelopment Agency of the City ("Agency") has proposed and prepared an eighth
amendment to the redevelopment plan for the CBD Project Area and a third amendment to the West End Project
Area (together "Amendments") which, among other things, (i) add territory to the Merged Project Area ("Added
Territory"); (ii) reinstate the Agency's right to use eminent domain within certain non-residential portions of the
Merged Project Area; (iii) redefine the method by which the tax increment limit is calculated and measured for
the Merged Project Area; (iv) combine the bond indebtedness limits of the Merged Project Area and the Added
Territory; (v) replace the separate redevelopment plans for the CBD Project Area and the West End Project
Area with one amended and restated redevelopment plan ("Amended and Restated Redevelopment Plan")
applicable to the Merged Project Area; and
WHEREAS, on June 30, 2003, a duly noticed joint public hearing on the proposed Amendments was
conducted by the City Council of the City and the Governing Board of Agency, after which a joint meeting was
continued to July 8, 2003 and continued again to September 2, 2003; and
WHEREAS, any and all persons having any objections to the proposed Amendments, or the regularity
of the prior proceedings, were given an opportunity to submit written statements prior to the commencement of
or at the joint public hearing, or to give oral comments at the joint public hearing, and show cause why the
proposed Amendments should not be adopted; and
WHEREAS, the City Council has directed Agency staff to respond to written objections received from
affected property owners and taxing entities in detail, giving reasons for not accepting specified objections and
suggestions, and the City Council has reviewed ad considered such responses; and
WHEREAS, the City Council has heard and considered all evidence, both written and oral, presented
in support of and in opposition to the adoption of the proposed Amendments.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa as follows:
Section 1. The City Council hereby finds that all persons have had the opportunity to be heard or
to file written objections to the Amendments to the Merged Project Area or to the regularity of the proceedings
with respect to the proposed Amendments.
Section 2. Having heard and reviewed such oral and written objections, the City Council hereby
makes certain findings in response to each written objection as set forth in Exhibit "A," attached hereto.
Section 3. The City Council hereby finds and determines that there are compelling reasons to
justify adoption of the Amendments as proposed, notwithstanding such written and oral objections.
Section 4. The City Council hereby finds and determines on the basis of substantial evidence
contained in the report ("Report")to the City Council submitted by the Agency and other substantial evidence in
the record that written and oral evidence in opposition received prior to or at the joint public hearing is not
persuasive.
Section 5. The City Council hereby find and determines that the City and the Agency have duly
complied with all the provisions, requirements and procedures of CRL relating to the preparation and adoption
of the Amendments.
Section 6. The City Council hereby overrules any and all objections to the adoption of the
Amendments.
PASSED, APPROVED AND ADOPTED this I5'h day
rvieyuc
City of Azusa
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CERTIFICATION
I, Vera Mendoza, City Clerk of the City of Azusa, and Secretary of the Redevelopment Agency of the
City of Azusa, do hereby certify that the foregoing joint Resolution No. 03-C73 was duly adopted by the
City Council of the City of Azusa and the Redevelopment Agency of the City of Azusa at a regular
meeting thereof, held on the 15"' day of September, 2003 by the following vote, to wit:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSTAIN:
COUNCILMEMBERS
ABSENT: OUNCILMEMBERS:
Vera
City Clerk
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
Sonia R. Carvalho
City Attorney
HARDISON, STANFORD, ROCHA, MADRID
NONE
CHAGNON
NONE
�2
Secretary
Redevelopment Agency of the City of Azusa
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Exhibit "A"
Redevelopment Agency of the City of Azusa
Responses to Written Comments
Pursuant to California Community Redevelopment Law (Health & Safety Code Section 33000 et seg.)
("CRL"), the City Council of the City of Azusa ("City") approved and adopted a redevelopment plan for the
Central Business District Redevelopment Project Area ("CBD Project Area") on September 18, 1978, by
Ordinance No. 2062; and approved and adopted a separate redevelopment plan for the West End
Redevelopment Project Area ("West End Project Area") on November 7, 1988, by Ordinance No. 2382. On
November 7, 1988, by Ordinance No. 2382, the City Council adopted the sixth amendment to the
redevelopment plan for the CBD Project Area and the first amendment to the West End Project Area which,
among other things, merged the CBD Project Area with the West End Project Area creating one merged project
area ("Merged Project Area").
The Redevelopment Agency of the City ("Agency") has proposed and prepared an eighth amendment to
the redevelopment plan for the CBD Project Area and a third amendment to the West End Project Area
(together "Amendments") which, among other things, (i) add territory to the Merged Project Area ("Added
Territory"); (it) reinstate the Agency's right to use eminent domain within certain non-residential portions of the
Merged Project Area; (iii) redefine the method by which the tax increment limit is calculated and measured for
the Merged Project Area; (iv) combine the bond indebtedness limits of the Merged Project Area and the Added
Territory; (v) replace the separate redevelopment plans for the CBD Project Area and the West End Project
Area with one amended and restated redevelopment plan ("Amended and Restated Redevelopment Plan")
applicable to the Merged Project Area.
The following are the Agency's responses to written comments received on July 8, 2003 and September
2, 2003 during the continued joint public hearing on the proposed Amendments. The responses: (i) identify the
person(s) commenting on the Amendments: (ii) summarize the comments (which are attached hereto in their
entirety); and (iii) set forth the Agency's response.
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Robyn A. Deppe
Attorney representing Mr. James D. Yenyo and Ms. Sharon Yenyo Espinoza (Business Owners) and Mr.
Wayne Fletcher and Ms. Velda Fletcher (Property Owners)
Letter received by the Redevelopment Agency June 30, 2003
Ms. Deppe represents the business and property owners of Wimpy's, located at 650 North Azusa
Avenue. In her letter, Ms. Deppe states: "[T]he business and the area in which it is situated does not
meet the requirements necessary to be constituted a 'blighted area' under [CRL] Section 33031." Ms.
Deppe also states that her clients have indicated that "they are prepared to make any changes of any
sort, necessary to accommodate the City's [redevelopment plan for the Merged Project Area]" solely at
the cost of the business and property owners.
As provided in Part 11 of the Report to City Council on the Amendments, the area in which the Wimpy's is
located within the Merged Project Area is blighted because: (i) the area contains small parcels of irregular form
or shape for development; and (it) the area contains many vacant buildings and structurally unsound and unsafe
buildings.
As stated in Section 308 of the Amended and Restated Redevelopment Plan, the Agency does not intend to
acquire property from owners of property within the Merged Project Area who have entered into an owner
.participation agreement with the Agency. Pursuant to certain rules, the Agency has adopted ("Owner
Participation Rules"), if the Amendments are adopted, as owners of property within the Merged Project Area,
the property owners would be entitled to submit a proposal to participate in the development of the Merged
Project Area. This process will allow the property owners to express any desires they may have to participate in
the Agency's development efforts.
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Joan Singleton
Azusa Pacific University
901 East Alosta Avenue
Azusa, CA 91702
Letters received by the Agency June 30, 2003
Ms. Singleton prepared two letters, one dated June 26"' and the other June 27"'. The June 26`n letter asks that the
City's Specific Plan, which governs the development of certain property owned by Azusa Pacific University
("APU"), supersede the requirements of the redevelopment plan for the CBD Project Area. In addition, Ms.
Singleton requests that Section 323 of the redevelopment plan for the CBD Project Area be revised due to
certain housing policies of APU. The second letter requests the removal of three (3) specific properties from
the CBD Project Area.
To avoid the potential for duplicative review processes involving City staff and Agency staff, the Agency will
amend the redevelopment plan for the CBD Project Area to allow the City's Specific Plan to supersede the
redevelopment plan for the CBD Project Area, as it pertains to APU. Also, Section 323 will be revised to insert
the word "illegal" before the word "discrimination."
To remove APU's requested properties from the CBD Project Area, the Agency must undergo an amendment to
the Amended and Restated Redevelopment Plan. Such amendment would cost the Agency significant time and
expense. At this time the Agency does not have the financial or staffing means and resources to carryout such
amendment and still carry out the Agency's existing projects. Because APU has not demonstrate a compelling
reason to remove such properties from the CBD Project Area, the Agency does not have any intentions of
removing such properties from the CBD Project Area.
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Dr. Martin Habern
826 North Azusa Avenue
Azusa, CA 91702
Letter faxed to Agency on June 25, 2003
Dr Habern informed the Agency that he would not be able to attend the meeting, but would like to discuss with
Agency staff the impact of the Amendments to his business.
On July 14, 2003, Mr. Amador discussed with Dr. Habern the potential impact of the Amendments on Dr.
Habern's business and explained to Dr. Habern that his particular property will not be subject to eminent domain
as a result of the Amendments. Dr. Habern indicated that he was not opposed to redevelopment in the Merged
Project Area.
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Ms. Jane -Ping Chen and Mr. Ching -Ching Ying
Ying's Coin Laundry
130 West 91h Street
Azusa, CA 91702
Letter received by the Agency June 16, 2003
Ms. Chen and Mr. Ying are opposed to the Amendments because they believe that the Amendments will not
"raise up" occupation in the commercial center where Ying s Coin Laundry is located, because said center is
already fully occupied. Ms. Chen and Mr. Ying also note that the Amendments will not increase their business.
A change in the number of tenants within a commercial center is determined by the owner of the center, not by
any Agency or City action. The Amendments do not change the number of occupants within a commercial
center.
The principal goal of the Amendments is to eliminate all remaining blight and complete all Agency -assisted
redevelopment activities within the Merged Project Area, including the property upon which the commercial
center is located. The Amendments accomplish this goal by: (i) addressing the presence of physically obsolete
and unsafe buildings; (ii) improving business climate and increasing property values; and (iii) developing long-
range plans to promote compatible land uses and construct public improvements.
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Mr. John A. Lambrecht, Jr.
Cardinal Church Furniture
401 South Irwindale Avenue
Azusa, CA 91702
Letter received by the City Clerk Judy 8, 2003
Mr. Lambrecht is opposed to the use of eminent domain. According to his letter, the City has tried to acquire
his property through the use of eminent domain on three (3) occasions. Mr. Lambrecht's first experience with
eminent domain was when Cal -Trans widened Irwindale Avenue. The second was when the Raiders were
proposing to move to Irwindale. The third time was in 1995, when the Agency attempted to reinstate eminent
domain on the Merged Project Area. He states that eminent domain maybe abused by future members of the
City Council. In addition, Mr. Lambrecht believes that he will not be properly compensated if his property is
acquired, therefore, he provides a list of how he should be compensated. Mr. Lambrecht also stated that the
public was not advised that any challenge to the Amendments is limited to issues raised at the public hearing.
Property owners and tenants that have their properties acquired through eminent domain are entitled to
compensation according to California law. Owners are paid the fair market value for their property, moving
expense, and, for businesses, any loss of goodwill. In this case, the Agency has not indicated in the Amendment
that it intends to acquire Mr. Lambrecht's property by eminent domain. The Agency has, in fact, made no
determination to condemn Mr. Lambrecht's property. If, in the future, the Agency was interested in acquiring
any property within the project area through eminent domain procedures, the Agency would follow the specific
provisions of Government Code Section 7260, el seq.
On the second page of the notice of the joint public hearing, it states: "If you challenge the Amendments,
including the Amended and Restated Redevelopment Plan, in court after (and if) it is adopted by the City
Council, the issues you raise in your challenge may be limited to only those issues you or someone else raise at
the June 30, 2003, joint public hearing." This statement was designed to advise challengers of the Amendment
that any challenges raised in court may be limited to the challenges raised at the joint public hearing on the
Amendments. The notice ofjoint public hearing complies with CRL Sections 333450, et seq. and 33360 et seq.
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David E. Janssen
Chief Administrative Officer
County of Los Angels
713 Kenneth Hahn Hall of Administration
Los Angeles, CA 90012
Electronic correspondence received by Agency staff on June 13, 2003
Letter dated September 2, 2003 - received by City
In his correspondence, Mr. Janssen expresses a concern regarding whether or not the Amendments will increase
the combined tax increment limit applicable to the CBD Project Area and the West End Project Area. Mr.
Janssen also notes that the County of Los Angeles Board of Supervisors must approve the Amendments, which
add three (3) unincorporated parcels of property to the Merged Project Area. In addition, Mr. Janssen expresses
concern that Proposed Areas 1 and 10 of the Amendments may not exhibit blighting conditions consistent with
CRL. Specifically, Mr. Janssen asserts that Proposed Area 1: (i) fails to meet the blightingconditions set forth
under CRL Sections 33030 and 33031, (ii) is not necessary for effective redevelopment pursuant to CRL
Section 33321.
The Agency is not proposing to increase the tax increment limits in the CBD Project Area or the West End
Project Area. Pursuant to the Amendments, the combined tax increment limit for the Merged Project Area,
including the Added Territory is the sum of the following data:
• The existing tax increment limit for the CBD Project Area, which is $28.9 million.
The maximum possible amount remaining in the life of the West End Project Area. This amount is
determined by multiplying the West End Project Area's existing $3 million annual tax increment limit
by the 20 years remaining in the life of the project.
The amount of tax increment the Agency has received to date from the West End Project Area. This
amount, according to the latest Remittance Advice from the County of Los Angeles Auditor -Controller
Tax Division, is $26,031,075 and is exclusive of amounts paid to County taxing entities through August
of 2003, the final disbursement of 2002-03 revenues.
CBD
West End
(remaining)
West End
(received to date)
Total
$28,900,000
.I 111 111
26,031,075
$114,931,075
Per the above information, the proposed tax increment limit for the Merged Project Area is $114,930,000.
Thus, the Agency is not increasing the tax increment limit in the Merged Project Area.
Moreover, the Agency intends to enter into an Agreement for the Reimbursement of Tax Increment Funds with
the County of Los Angeles, which will further address the County of Los Angeles's concerns about the
aforementioned tax increment limit. The Agency has complied with CRL Section 33354.6.
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Proposed Area 10 is blighted because: (i) numerous buildings within the Proposed Area 10 are dilapidated
and/or vacant, and (ii) many areas within Proposed Area 10 are poorly planned for modem retailing. At this
time, the Agency does not have any intention of removing Proposed Area 10 from the Merged Project Area
because significant blight remains in that area.
Proposed Area 1 is blighted because that area is predominantly urbanized and is not properly utilized to such an
extent that Proposed Area 1 poses a serious physical and economic burden on the community. In addition, the
CBD Project Area suffers from a lack of necessary commercial facilities, including grocery stores. Project Area
1 is the only potential area within the City upon which a full service grocery store may be developed. Thus,
Proposed Area 1 is essential for the effective development of the CBD Project Area. Redevelopment of
Proposed Area 1 furthers the health, safety and general welfare of the citizens of the City. At this time, the
Agency does not have any intention of removing Proposed Area 1 from the Merged Project Area.
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