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RA1996/12/17PRESENT: ABSENT: PRESENT: AGENCY MEMBERS: Shirley McCracken, Tom Tait, Bob Zemel, Lou Lopez, Tom Daly AGENCY MEMBERS: None CITY MANAGER: James Ruth CITY ATTORNEY: Jack White SECRETARY: Leonora N. Sohl EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT: Lisa Stipkovich A complete copy of the agenda for the meeting of the Anaheim Redevelopment Agency was posted at 1:55 p.m. on December 13, 1996 at the Civic Center Kiosk, containing all items as shown herein. Chairman Daly called the regular meeting of the Anaheim Redevelopment Agency to order at 5:48 p.m. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of $108,412.11 for the pedod ending December 13, 1996, in accordance with the 1996-97 Budget, were approved. ADDITIONS TO THE AGENDA: There were no additions to agenda items. ITEMS OF PUBLIC INTEREST: Jeff Kirsch, 2661 W. Palais, Anaheim. He noted that Circuit City at Beach and Lincoln is relocating out of the City and that the Cai Comp site had been put up for sale. He asked if either one had been contacted in an effort to keep them in the City. Lisa Stipkovich, Executive Director of Community Development. Redevelopment had no involvement relative to the Circuit City move. Her understanding is they wanted a bigger site. However, they were very much involved with Cai Comp which was taken over by Lockheed. Lockheed is looking to remarket the site and have made decisions based on a broader perspective. Redevelopment did get involved in marketing the site to other potential users. PUBLIC COMMENTS - AGENDA ITEMS: Public input was received on Items Agency 1 and Agency 3 (see discussion under those items). CONSENT CALENDAR ITEMS I - 4 and Item 6: On motion by Chairman Daly, seconded by Agency Member Lopez, the following actions were authorized in accordance with the reports and recommendations furnished each Agency Member and as listed on the Consent Calendar Agenda. 105: Receiving 'and filing a Disclosure of Property Interests in Redevelopment Areas as submitted by Agency Member Shirley A. McCracken. Lee Sohl, Secretary. Agency Member McCracken has filed a replacement disclosure letter which has been submitted to the Agency. She did have a savings and checking account to record which are in a Redevelopment Area. 123: Approving an Agreement with Stone & Youngberg for underwriter services; approving an Agreement with Katz, Hollis, Coren & Associates to provide financial consulting; and authorizing the Executive Director to execute all necessary documents (financial consulting in conjunction with refinancing of Agency Bonds). 161: Approving the Revised Site Plan for a portion of Anaheim Center, and directing staff to implement the improvement program. Submitted was Staff Report dated December 17, 1996 from the Community Development Department recommending approval of the revised Site Plan for a portion of Anaheim Center and directing staff to implement the improvement program. Agency Member Lopez. Since the Master Plan was done, there was an agreement there would be some additional parking on Anaheim Boulevard brought about by concerns of senior citizens and handicapped people. People normally park in the back of City Hall and go to the front. He had asked if there could be parking right in front of City Hall. Lisa Stipkovich, Executive Director of Community Development. She has spoken briefly this morning and this afternoon with the Engineering Department and will be working with them to investigate the feasibility of parking in front and will be getting back on that issue as soon as possible. Chairman Daly. This will be a follow-up item about the potential of parking on both sides of Anaheim Boulevard between Lincoln and Broadway. Agenecy Member, Shirley McCracken. She wants to congratulate staff on moving forward with the plan for downtown. This is the first step of probably many. The task forces and the input from the community allowed staff to move forward with the development plan and she believes this is the .right way to go. Chairman Daly. The pavillion space is a conceptual idea but before moving forward will be coming back to the Agency. Lisa Stipkovich. Staff is not recommending approval on that space this evening. It is something they want to examine more closely pdor to going with a permanent structure. The majority of the construction will be for permanent improvements but not all the recommended improvements are to be approved tonight, just the ones listed in the staff report. Chairman Daly. Echoing what Mrs. McCracken said, he believes this is a necessary step forward. They do need more amenities in the downtown area to attract visitors and residents to downtown. Quite a bit of progress has been made in the proposals which came together as a result of a number of meetings with members of the community and the Downtown Business Association. Agency Member Zemel. He wants to be sure he understands that as far as these being development plans, actually they do not know what is going to go on the site. He does not want to give the wrong impression that there are definite plans and they are not approving the pavillion. Lisa Stipkovich. The plans are perimeter plans and also plans for an interactive fountain and some seating and a play area at the comer of Lemon and West Harbor Place. Other items on which they are requesting approval are - the use of the current Post Office site, which is going to be demolished, for interim parking and also creating a much nicer landscape buffer along Anaheim Boulevard. The posted site plan does show, with the various things they are doing now, it can still accommodate the whole center of the site. The site itself is not going to be built on. She further clarified for Agency Member Zemel that the shade awnings and the steel frame are a part of the plan to approve. Staff report, Exhibit C, checks off the things staff is recommending and N/A is indicated where they are not recommending. She reiterated, the pavillion is not being recommended at this time. The full parking is also not being recommended and the intedm park open space turf area is also not being recommended. 2 Agency Member Zemel posed additional questions relative to the proposal and the expenditures. Mrs. Stipkovich clarified approval is being requested on the $350,000 (Public Improvements - perimeter sidewalks and landscaping, interactive fountain and promenade) and the $139,000 (Interim Improvements - play area and seating, event space, parking), but not the $78,000 (addition to Post Office site parking lot, open space turf area near Anaheim Blvd.) at this time but will in the future. (See Staff Report of 12/17196). Agency Member Zemel asked if they were instead to take the $139,000 and invest it in a marketing plan to find someone who is permanently going to be located on the site, would staff feel that would get the job done. Lisa Stipkovich. She does not think they need that kind of money to market the site. It is more of a marketing effort by contact with key players and key users that would like to buy the site. It is not a matter of dollars, but of effort and also getting the Koll Disposition and Development Agreement changed. Chairman Daly. This is a very sensible combination of permanent improvements and interim improvements. All the improvements have been discussed with the Downtown Business Association and many persons have had a hand in packaging the recommendations which will be very helpful to an improved downtown atmosphere. They need to remind themselves there are only a couple of available downtown sites to be developed including the important comer at Harbor and Lincoln which Mrs. Stipkovich referred to as part of the Koll agreement, and the property immediately behind the Anaheim Museum. 123: Approving an Agreement with Stradling, Yocca, Carlson & Rauth for services as bend and disclosure counsel to the Redevelopment Agency. Accepting the bid, and authorizing the execution of an Agreement with Karo Landscaping, Inc., AKA Mike's Landscaping & Maintenance, Inc., in an amount not to exceed $35,490 for a one year pedod with four one-year optional extensions for landscape maintenance at various locations through the City on property owned by the Redevelopment Agency, in accordance with Bid #5571. Chairman Daly moved to approved consent calendar items 1 -4 and 6, Agency Member Lopez seconded the motion. MOTIONS CARRIED. 123: PUBLIC HEARING - BROOKHURST REDEVELOPMENT AREA HOME DEPOT DISPOSITION AND DEVELOPMENT AGREEMENT (DDA): Finding that the project was previously covered under EIR No. 319; approving the DDA with Home Depot U.S.A., Inc.; and authorizing the Chairman to execute the document, and the Executive Director to take all necessary actions to implement the Agreement. This matter was Continued from the meeting of December 10, 1996, Agency 3. to this date. Submitted was Staff Report dated December 17, 1996 from the Community Development Department recommending the subject actions. Agency Member Tait declared a conflict on this item and will, therefore, abstain from any discussion and voting. He temporarily left the Council Chamber (6:17 p.m.). Chairman Daly asked staff to summarize the highlights of the proposed agreement. 3 Lisa Stipkovich, Executive Director of Community Development. Home Depot is currently located on Lincoln Avenue which was not a site built to their specifications. They have been looking to relocate to a larger site and due to a previous involvement with the City, they want to stay in Anaheim. They are interested in a site in a new project area - the Brookhumt Project Area - previously occupied by Lear- Siegler which has been vacant for at least five or six years. It was bought by IBM but they were unable to develop the site. It has become a blighting influence on the area. There is also another parcel that is involved which is an auto/truck repair facility. With the agreement, the Agency would be playing the role of assisting with parcelizing the area. Secondly, the Agency will help with their entitlements and a City development agreement. Home Depot will be responsible for all costs for developing a 105,700 s.f. facility plus a 25,025 s.f. garden center. The Agency would have the right to review plans and specifications and have them comply with the corridor improvements particularly landscaping proposed for the Brookhurst Corridor. There will be no financial assistance at all by the Agency. It is more of a technical assistance approach and something they have been very happy to see. The project will be a big improvement for the area and eliminate some of the blighted properties. Staff is recommending approval subsequent to the Public Hearing. Chairman Daly opened the Public Hearing. Jeff Kirsch, 2661 W. Palais, Anaheim. He relayed concerns and questions relative to the proposal. Location of Home Depot to the present site was also to eliminate blight in the area. He is concemed that there is no contingent agreement to prevent that site from returning to its former condition when the facility moves. Although there is no financial involvement, he is concerned that the purpose seems to be to use the eminent domain process. He hopes that does not send a negative message to the small business community. If eminent domain is a stumbling block, he wonders if alternative sites have been considered. He also posed additional questions relative to a return to the citizens, estimate for removal of asbestos, traffic, incremental taxes, etc. He further noted that there was a reference to landscaping conforming to that in the City of Garden Grove surmising that statement may be in error. Mrs. Stipkovich answered the questions posed. The proposed site is also in a Redevelopment area and it was chosen by Home Depot after a great deal of searching for a site. They anticipate the property owner will agree and continue on to closure with Home Depot. The Agency wants to have the option for the Council to consider eminent domain if necessary. It is not saying it is going to be necessary, but it gives the opportunity. There is a toxic problem on the Lear-Siegler site. There was no analysis by the Agency because the Agency is not putting any money into the deal. It is more about getting a land use entitled in the area. The City will continue to get any sales tax generated and it is anticipated there will be an increase in sales tax with the new site. Any incremental tax will come to the Agency as part of the Redevelopment process. Environmental issues are totally at the cost of Home Depot. The Agency will also have long-term control over the site. From a zoning standpoint and part of the process they are going through now, is trying to get entitlements for commercial. They did not require an operating covenant or a specific type of use because they are not putting any money into it. The traffic issue is part of the entitlement process and they are working with the Traffic Department. It has to go through planning staff, the Planning Commission and ultimately to the City Council. The Garden Grove reference is an error and should say, City of Anaheim. There are other references that specifically state they will adhere to Anaheim's standards. Chairman Daly closed the Public Hearing. Agency Member Zemel. Having gone through the agreement, he is concerned relative to the use of eminent domain in acquiring the other parcels. He asked if they are setting themselves up legally. City Attorney White answered no. Neither the Agency nor the City can, as a matter of law, contractually commit in a Disposition and Development Agreement or in any other contract, to exercise the power of eminent domain in the future. That requires a separate Public Hearing. There are various issues of public necessity that have to be made in good faith. There is case law that a City or Redevelopment Agency, in this case, could not make that type of decision on condemnation. Staff is careful in any agreement to craft it in a way that it does not obligate the Agency or the City to exercise that power. If in the future the City Council or Redevelopment Agency chose not to do so, they would not be setting themselves up for litigation from the developer. There is no recourse to the Agency or City. Agency Member Zemel. He knows time is of the essence but asked if there was an opportunity to settle that issue with the other property owner even though they are not setting themselves up legally. Part of the agreement is that they are probably going to end up taking a vote on eminent domain. Lisa Stipkovich, Executive Director of Community Development. They anticipate they will be able to resolve the problem with both property owners. Relative to the traffic problem, she believes that is the only issue in terms of cost. It is something the two parties might not be able to agree on. This has been a long process. What the agreement says now is they are not ready to spend the money to acquire the land until they get their entitlements. Part of that is at least knowing that the Agency has an agreement with them that they want this to happen as far as redevelopment and they are in the process of going for the G.P.A. It is a problem for the developer because he is trying to get all his 'ducks in a row" before putting his cash out to buy the property. City Attorney White. He explained for Agency Member Zemel the same legal theory applies to the entitlements in that the City, by entering into the agreement, is not committing to exercise its discretionary zoning powers in any way. That will be the subject of subsequent hearings and by entering into this, they are not prejudicing those subsequent hearings. Upon questioning, Mre. Stipkovich then relayed specifics relative to the site regarding square footage, perking, and traffic circulation. MOTION. Chairman Daly moved (1) to adopt the finding that the project was previously covered under EIR No. 319, (2) to approve the DDA, substantially in the form attached, with Home Depot U.S.A., Inc., and (3) to authorize the Chairman to execute the document and the Executive Director to take all necessary actions to implement the Agreement. Agency Member Zemel seconded the motion. Agency Member Tait was temporarily absent (declared a conflict). MOTION CARRIED. Agency Member Tait entered the Council Chamber (6:33 p.m.). ADJOURNMENT: Chairman Daly moved to adjourn, Agency Member Lopez seconded the motion. MOTION CARRIED. (6:34 p.m.) LEONORA N. SOHL SECRETARY 5