Loading...
RA2002/10/05ANAHEIM, CALIFORNIA - ANAHEIM REDEVELOPMENT AGENCY MEETING OCTOBER 15, 2002 123 The Anaheim Redevelopment Agency met in regular session. Present: Chairman Tom Daly and Agency Members Frank Feldhaus, Lucille Kring, Tom Tait and Shirley McCracken. Staff Present: City Manager David Morgan, City Attorney Jack White, Secretary Sheryll Schroeder, Executive Director of Community Development, Elisa Stipkovich A copy of the agenda for the meeting of the Anaheim Redevelopment Agency was posted on October 11,2002 at the City Hall inside and outside bulletin boards. Chairman Daly called the regular meeting of the Anaheim Redevelopment Agency to order at 5:51 P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard. ADDITIONS/DELETIONS TO THE AGENDA: None. PUBLIC COMMENTS: None. CONSENT CALENDAR ITEMS 2 - 3: Chairman Daly moved approval of Agency Consent Calendar Items 2 and 3, seconded by Agency Member McCracken. Agency Member Tait abstained on Item 2. Motion carried. Approve and authorize the Executive Director to execute the Third Amendment to Affordable Housing Agreement with Mercy Housing California to extend the deadline to investigate potential suitable housing sites and negotiate appropriate agreements. Chairman Daly asked what the obligations of the agreement with Mercy Housing were and Director Stipkovich stated that the amendment would continue the negotiation period with Mercy Charities to jointly look for a site for multi-family. Once the site was identified, it would be brought back to the Redevelopment Agency for consideration, she noted, as any disposition or subsidy for the site. Chairman Daly asked what the necessity for a separate agreement was in connection with sites that had potential for future development in the City. Director Stipkovich said it was continuation of the agreement, due to the fact that when they worked on the west Anaheim project on Lincoln Avenue, a family project was proposed west of Brookhurst Street. She noted that the project had been changed to a senior project and, in exchange, the Agency would make an effort to assist Mercy in finding a multi-family site and the agreement to make it into a formal arrangement. She added that any site located would be at the Agency's discretion to decide if it was suitable for multi-family or appropriate for an affordable project. Chairman Daly asked if there was anything else in the agreement that would predict other projects and Director Stipkovich said that there was not and it was specific to just this one multi- family project. Chairman Daly asked if there were any other non-profit providers of affordable housing that were working with Community Development to locate sites and Director Stipkovich said that 123 161 ANAHEIM REDEVELOPMENT AGENCY MINUTES OCTOBER 15, 2002 PAGE 2 there were. Chairman Daly asked why other non-profit providers had not entered into an agreement like Mercy's and Director Stipkovich said it was because it had to do with that one particular transaction and Mercy had asked for a trade-off if they backed out of it and switched to a senior project in order to obtain a commitment from the Agency. She added that there was not another situation like this with the other non-profit groups. Chairman Daly said that enough time had passed and there had been enough opportunity for Mercy and that in fairness, the opportunity should be made available to other providers. He added that he was opposed to the project. Agency Member Feldhaus asked to place a cap on the date for the future and there needed to be a closing date on the agreement. Director Stipkovich noted that the proposed amendment would end June 30, 2003. Agency Member Kring asked if specific areas were being looked at that the Agency might consider or was Mercy just beginning to look for places. Director Stipkovich noted that Mercy Housing was looking at a number of sites and there was nothing definite. Community Development would need to provide 11,000 units of housing over a long period of time, she said, according to the Housing Element, and a certain amount would need to be done over the next few years. This would not preclude affordable housing developers from coming in with potential sites, she added. Chairman Daly moved, seconded by Agency Member Feldhaus, to not approve the proposed Third Amendment to Agreement with Mercy Housing. Roll call vote: Ayes - 2, Chairman Daly and Agency Member Feldhaus. Noes - 3, Agency Members McCracken, Kring and Tait. Motion failed to carry. Agency Member McCracken moved, seconded by Agency Member Kring, to approve and authorize the Executive Director to execute the Third Amendment to Affordable Housing Agreement with Mercy Housing California California to extend the deadline to investigate potential suitable housing sites and negotiate appropriate agreements. Roll call vote: Ayes - 3, Agency Members McCracken, Kring and Tait. Noes - 2, Chairman Daly and Agency Member Feldhaus. Motion carried. Chairman Daly moved, seconded by Agency Member McCracken, to approve Items 2 and 3. Agency Member Tait abstained on Item 2. Motion carried. Approve an Exclusive Negotiating Agreement with Zelman Retail Partners, Inc. regarding the Anaheim Westgate Center (northeast corner of Beach Boulevard and Lincoln Avenue). Agency Member Tait abstained. 3. Approve minutes of the Redevelopment Agency meeting held October 1, 2002. PUBLIC HEARINGS: At 6:07 P.M., Chairman Daly moved, seconded by Agency Member Kring, to recess to the joint public hearings with the City Council, Items C1, C2, C3 and C4. Chairman Daly reconvened the Anaheim Redevelopment Agency at 6:56 P.M. ANAHEIM REDEVELOPMENT AGENCY MINUTES OCTOBER 15, 2002 PAGE 3 123 123 123 Disposition and Development Agreement with Zelman Retail Partners, Inc. regarding the Anaheim Westgate Center (northeast corner of Beach Boulevard and Lincoln Avenue). (Refer to Item C1 ). Withdrawn by staff. Consider a Resolution approving a Disposition and Development Agreement with Gateway, LLC. for the sale of real property and the development of two restaurants, a public plaza and other improvements. (Refer to Item C2). Withdrawn by staff. Consider the adoption of a Resolution approving a Disposition and Development Agreement with Brookfield Southland Holdings, LLC. regarding certain property at 2340 West Lincoln. (Refer to Item C3). Executive Director of Community Development, Elisa Stipkovich, stated that the redevelopment law required that any time the Redevelopment Agency sold property, both the legislative body and the Redevelopment Agency had to hold a hearing regarding the sale of land. She said that the site referred to was in the West Anaheim Project Area and was formerly the old Home Depot parking lot site. The site was 4.5 acres and had been designated in the vision plan and general plan as residential, she noted. Community Development had been negotiating with the Brookfield Development group and the Agency approved an exclusive right to negotiate with them, she said, and based upon the negotiations, had a Disposition and Development Agreement where the Agency would approve the sale of land to Brookfield for a project that would consist of 38 units comprised of 16 attached affordable units and 22 market-rate units. The affordable units would range from $261,000 to $285,000 and the 22 market-rate units that would not be restricted in price and would be in the Iow $400,000 range, she said. In addition to the Iow-income prices on the attached product, the Agency was asked to set aside approximately $500,000 for down payment assistance, as part of the regular down payment assistance programs and earmarking some for the specific units, she informed. The land sale price had been reviewed by the firm of Kaiser-Marsten and the summary report had been prepared and was available for the public, she reported. The acquisition cost to the Agency for the project was $3,292,000 and the proposed sale price was $2.5 million and the anticipated property tax increment to be received would be $2.9 million and was a net present value of $1.4 million and the total net to the Agency in net present value dollars would be $600,000 and actual $2.1 million. She said she recommended approval of the disposition and development agreement and the conceptual site plan. Chairman Daly opened the public hearing and hearing no testimony, closed the public hearing. Chairman Daly asked when the Agency would be reviewing the final site plan and architecture and Director Stipkovich said it would be in 60-days and was in the schedule of performance. Chairman Daly asked if the action would bind the City to a certain number of units on the site and she said it would bind the City to the sale price based on the number of units and if it changed, there was an adjustment factor in the deal that was based on the square foot amount for land and depended on what would happen with the final site plan. The commitment was to sell the property and the actual site plan number of units was open and formula was adjustable, she added. ANAHEIM REDEVELOPMENT AGENCY MINUTES OCTOBER 15, 2002 PAGE 4 123 Chairman Daly offered Resolution No. ARA2002-04 for adoption. C3. RESOLUTION NO. ARA2002-04 RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY approving a Disposition and Development Agreement with Brookfield Southland Holdings, LLC. regarding certain properly at 2340 West Lincoln and making certain environmental and other findings in connection therewith (Agency Item 6). Roll call vote: Ayes - 5, Chairman Daly and Agency Members McCracken, Feldhaus, Tait, and Kring. Noes-0. Motion carried. Consider the adoption of a Resolution approving a Disposition and Development Agreement with Clean City, Inc. regarding property at the northwest corner of Lincoln Avenue and East Street. (Refer to Item C4). Executive Director of Community Development, Elisa Stipkovich, said that this was a joint public hearing to consider the sale of land and a Disposition and Development Agreement on a project with Clean City, Inc. The project had been discussed with Council and the community and was a historical preservation project where the house that was previously located at 320 North Sunkist Street and a house that the developer owned on 407 North Anaheim Boulevard had been moved to this location, she said. The site plan had been worked out with the historical architect and all of the design and final construction of the project would be in conformance with the Federal Department of Interior standards. The project consisted of 4,500 square feet of commercial office space that the developer would be responsible to complete and the project would be restored and the units, which were previously residential, she informed, would be converted into commercial uses. The land sale of the project would indicate that both the developer and the Agency would share in the cost of the project, she informed. The land would be conveyed to the developer who would be responsible to fund $800,000 in improvements and the Agency would fund $210,000 in a rehabilitation loan, she noted. Based upon Kaiser- Marsten's analysis, Community Development had worked out a participation agreement whereby if the developer sold the property, the Agency would participate in any net proceeds over the original $800,000 the developer put in with no return on the investment and would receive 30 percent of all net proceeds. If the property was not sold within 20-years, the Agency would still need to be paid off and that would be accomplished through and MAI appraisal at that time, she noted. In looking at the summary report, she commented that Community Development was required by State law to indicate what the cost of a project was and the anticipated revenue and the properties were originally purchased as part of a realignment of Lincoln Avenue and the original purchase price was around $800,000. She said she believed that about $230,000 of the money should be attributed to this project in terms of land cost. Based on both property tax increment and revenue from the 30 percent participation the City would receive approximately $549,000 over the next 20-years, she said, and there would be a new cost to the Agency of $210,000 and there should be a net income, minus the original acquisition cost, of $300,000. She said Community Development recommended approval of the project and that this was a critical element to the historical preservation projects into the City and a great gateway into the downtown and Colony areas. She added that the project was both economically feasible and acceptable to the community. Chairman Daly asked if there had been any progress in obtaining the cooperation of the Edison Company and Director Stipkovich said she did not have anything to report and noted that 123 ANAHEIM REDEVELOPMENT AGENCY MINUTES OCTOBER 15, 2002 PAGE 5 Community Development was working with the Utilities Department to see if the pole could be modified or pushed to a different location. Agency Member McCracken noted that she was pleased about the design of the carriage house and noted that it would be a place for a caretaker to live on the property. She said she believed that it would be a concern to the neighbors to have a commercial property next door in the historic district along Rose Street. Director Stipkovich added that the carriage unit was over a four-car garage and it would be improved in a way that meetings could be held in that room since it would be finished like a room and not just a typical garage. Chairman Daly opened the public hearing. Ken Chen spoke in favor of the project and said he agreed that it would make a marvelous gateway to the historic district. He reported that after meeting with his neighborhood, they were also in support of the project. Chairman Daly closed the public hearing. C4. RESOLUTION NO. ARA2002-04 RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY approving a Disposition and Development Agreement by and between the Anaheim Redevelopment Agency and Clean City, Inc. regarding certain property at the northwest corner of Lincoln Avenue and East Street and making certain environmental and other findings in connection therewith (Agency Item 7). Roll call vote: Ayes - 5, Chairman Daly and Agency Members McCracken, Feldhaus, Tait, and Kring. Noes-0. Motion carried. In response to Chairman Daly, Director Stipkovich said that the final design should return to the Agency in 60-days. ADJOURNMENT: There being no further business, Chairman Daly moved to adjourn the Anaheim Redevelopment Agency, seconded by Agency Member McCracken. Motion carried unanimously. The regular meeting of the Anaheim Redevelopment Agency adjourned at 7:21 P.M. Sheryll Schroeder, CMC/AAE Secretary, Anaheim Redevelopment Agency