HomeMy WebLinkAboutMinutes - July 28, 2014 - CC, Special MeetingCITY OF AZUSA
MINUTES OF THE SPECIAL MEETING OF
THE CITY COUNCIL
' MONDAY, JULY 28, 2014 - 7:15 P.M.
I
The City Council, of the City of Azusa, met in Special Session at the above date and time in the Azusa Light and
Water Conference Room located at 729 N. Azusa Avenue, Azusa, California.
A copy of the Notice of said Special Meeting was delivered to the Mayor and Counciltnembers on July 24, 2014,
between 4:45 and 5:15 P.M., by Senior Office Specialist Bautista.
Mayor Rocha called the meeting to order j Call to Order
ROLL CALL: Roll call was taken by City Clerk Cornejo. Roll Call
PRESENT: COUNCILMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA
ABSENT: COUNCILMEMBERS: MACIAS
ALSO PRESENT Also Present
Elected Officials: City Clerk Cornejo.
Staff Members: City Manager Makshanoff, City Attorney Ferre, Assistant City Manager/Public Works
Director Haes, Economic and Community Development Director Christiansen, Police Captain Chavez,
Assistant/Deputy City Clerk Hernandez.
' CLOSED SESSION Closed Session
The City Council recessed to Closed Session at 7:16 P.M. to discuss the following:
REAL PROPERTY NEGOTIATIONS Pursuant to California Government Code Section 54956.8 Prop
Agency Negotiators:
City Manager Makshanoff Negotiations,
Net Development:
Kevin Coleman Net Dev, 229 S.
Under Negotiation:
Price and Terms of Payment Azusa Ave.
Property Address:
Enterprise Property, 229 S. Azusa Avenue (APN 8614-014-918, 919 and 920)
The City Council reconvened at 7:19 P.M., City Attorney Ferre announced that there was no reportable Cncl Reconvene
action taken in Closed Session.
Council Recessed at 7:20 P.M. and reconvened at 7:30 P.M.
i
PUBLIC PARTICIPATION
None given.
AGENDAITEM:
' CONTRACT FOR FISCAL YEAR 2014/15 WITH THE AZUSA CHAMBER OF COMMERCE.
i
Economic and Community Development Director Christiansen presented the item stating that the
proposed renewal of the contract with the Azusa Chamber of Commerce reflects a 5% reduction from
last year's funding, per the contract requirements.
Councilmember Carrillo stated that the plan submitted by the Chamber would incur an annual 5%
reduction of the amount from the previous year, for the purpose of reaching a self sufficient plan;
Previously the Chamber was fully funded, 59% by Azusa Light & Water (AL&W) 41% by the Former
Redevelopment Agency (CRA); with the dissolution of CRA, the Chamber received :a substantialL&
reduction; he proposed that the Chamber continues to be fully funded with the 59% by A'W and to
eliminate the 5% annual reduction as stipulated on the contract; the Chamber will continue to work on
creating new revenue.
i
Public Part
Agenda Item
Renewal
Chamber
Contract
A. Carrillo
Comments
i
Economic and Community Development Director Christiansen responded that staff will include the full K. Christiansen
funding on the next year's budget, and will bring back a new 3 year term contract with 2 one year Comments
options to renew and to eliminating the 5% annual reduction.
Moved by Councilmember Carrillo, seconded by Mayor Pro -tem Gonzales, to authorize staff to amend, Appv Chamber
finalize and execute the Agreement Regarding Chamber of Commerce Funding and Support between the Contract With
City of Azusa and the Azusa Chamber of Commerce for Fiscal Year 2014/2015; the amendment will Amendments
reflect the fully funded amount without the 5% reduction for a total $44,493, by the following vote of the
Council:
YES: COUNCILMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA
ABSENT: COUNCILMEMBERS: MACIAS
SCHEDULED ITEMS
Sched Item
CONTINUED PUBLIC HEARING — SALE OF CERTAIN REAL PROPERTY OWNED BY THE Continued
CITY GENERALLY LOCATED AT 229 S. AZUSA AVE (APNs 8614-014-918; 8617-014-919; 8614- Public Hearing,
014-920), AND DISPOSITION AND DEVELOPMENT AGREEMENT ("DDA") BY AND DDA and Sale
BETWEEN THE CITY AND NET DEVELOPMENT CO, INC. of 229 S. Azusa
Ave.
Mayor Rocha declared the Public Hearing re -opened.
Mr. Jorge Rosales addressed the hearing stating that he was not opposed to the sale of the property for J. Rosales
the purpose stated, but he felt that the loss of $860,000 as a result of the sale should have been stated on Comments
the staff report for public information; the property was originally purchased in 2009 by CRA for
$3,310,000, and conveyed back to the City in March 2011, in lieu of payment of the loan; the property is
now being sold for $2,450,000.
Moved by Councilmember Carrillo, seconded by Mayor Pro -tem Gonzales, to close the Public Hearing, Hrg closed
by the following vote of the Council:
YES: COUNCILMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA
ABSENT: COUNCILMEMBERS: MACIAS
'City Manager Makshanoff and Economic and Community Development Director Christiansen
responded to comments made at public participation, stating that with the hotel expectations for
occupancy based on the room rates, the Transient Occupancy Tax (TOT) will increase approximately
$400,000 a year at the current 7.5% rates; the property will be sold at a loss from its purchased value, but
it is being sold at the current appraised value, which is what the City is legally obligated to sell; once the
hotel is built, the City will capture the TOT that will go directly to the general fund to help fund City
programs; the property will be put back on the regular tax rolls and the City will receive property tax for
the hotel building as opposed to a vacant building, which will also increase the City's income; the
construction will fix the blighted area that is an eye sore; the property could have been left on the
market, but the City could have lost control of the property to the State.
Mr. Kevin Coleman from Net Development, addressed the item stating that he contacted the owner of
the Valero Gas Station adjacent to the property, and he agreed to invest on upgrading his business; a
complete frontage renovation will be done on both properties, from Paramount to the Freeway entrance;
the existing back wall will remain in order to keep the buffer between the residents in back of the hotel,
and the back exit will only be used for emergency exit; the main exit will be through Paramount; he
responded to Mayor Pro -tem Gonzales, stating that the residents on San Gabriel Ave., will be notified of
the project.
Moved by Mayor Pro -tem Gonzales, seconded by Councilmember Carrillo, to approve the sale of certain
real property owned by the City generally located at 229 S. Azusa Ave (APNs 8614-014-918; 8617-014-
919; 8614-014-920), approve the Disposition and Development Agreement ("DDA") by and between the
City and Net Development Co., Inc., in substantially final form and subject to non -substantive changes
approved by the City Attorney; and authorize the City Manager to execute all documents and take any
'actions necessary to convey the real property consistent with the terms and intent of the DDA, (this
action is categorically exempt from the California Environmental Quality Act (CEQA) under Sections
15312, Surplus Government Property Sales, and 15332 infill development projects) by the following vote of
the Council:
YES: COUNCILMEMBERS: GONZALES, CARRILLO, ALVAREZ, ROCHA
ABSENT: COUNCILMEMBERS: MACIAS
07/28/2014 PAGE TWO
J. Makshanoff
and K.
Christiansen
Comment
K. Coleman
Comments
Approve Sale of
Property
COUNCILMEMBER'S COMMENTS
Mayor Rocha stated that there are several homeless individuals loitering around Slauson Park, and they
behave in inappropriate manners; he requested that the Police Department look into the matter, as there are
many children and families who visit the park and such behavior is unacceptable around children.
ADJOURNMENT
It was consensus of the Council to adjourn the meeting.
TIME OF ADJOURNMENT: 7:59 P.M.
NEXT RESOLUTION NO. 2014-C46. (City)
NEXT ORDINANCE NO. 2014-05.
NEXT RESOLUTION NO. 2014-RI1 (Former Redevelopment Agency)
07/28/2014 PAGE THREE
Council's
Comments
Adjourn