RA1992/12/15Anahe£m C£v£c Cen~er~ AN~SXN I~D~P~ &~ENC¥
DEC~4B~R 15~ 199R~ 5~00 P.M.
PRESENT:
ABSENT:
PRESENT:
AGENCY MEMBERS: Feldhaus, Hunter, Pickler, Simpson, 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 3:25 p.m. on December 11, 1992 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 5:45 p.m.
FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of
$69,980.45 for the period ending December 11, 1992, in accordance with the
1992-93 Budget, were approved.
PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments on
Redevelopment Agency agenda items.
ITEMS OF PUBLIC INTEREST: No items of public interest were addressed.
CONSENT CALENDAR ITEMS 1-5: On motion by Agency Member Pickler, seconded by
Agency Member Simpson, the following actions were authorized in accordance
with the reports and recommendations furnished each Agency Member and as
listed on the Consent Calendar Agenda.
1. 123: Approving a First Amendment to Agreement with The Arroyo Group,
extending the term of the agreement to December 18, 1993, for the design and
planning of the Plaza Project Area and proposed redevelopment project areas;
and authorizing the Chairman and Secretary to execute said Agreement on behalf
of the Agency.
2. 123: Approving a Second Amendment to Agreement with 3DI, in the amount of
$30,000 for construction administration and project management services (Koll
Anaheim Center project); and authorizing the Chairman and Secretary to execute
said Agreement on behalf of the Agency.
3. 123: Approving the terms and conditions of the General Depositary, Loan
Origination and Servicing Agreement between Corporate Bank, the City of
Anaheim, and the Anaheim Redevelopment Agency; and authorizing the Chairman,
Secretary, City Treasurer, and Executive Director to execute said Agreement
and related documents.
4. 161: Approving the exterior elevations, colors, and materials submitted
for the subject project - River Valley Redevelopment Area, Sari Ranch, K-mart.
5. 161: Approving minutes of the Redevelopment Agency meeting held
November 17, 1992.
END OF CONSENT CALENDAR. MOTIONS CARRIED.
RECESS: Agency Member Simpson moved to recess to 6:00 p.m. for a Joint Public
Hearing with the City Council regarding the proposed Owner Participation
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Agreement with the California State Teachers Retirement System. Agency Member
Pickler seconded the motion. MOTION CARRIED. (5~46 p.m.)
AFTER RECESS: Chairman Daly called the Anaheim Redevelopment Agency to order,
all Agency Members being present. (6:50 p.m.)
SWEAR-IN OF THOSE TESTIFYING AT PUBLIC HEARINGS:
The City Attorney announced that it is appropriate at this time for all those
intending to testify at any or all of the public hearings including staff be
sworn in at this time.
Those testifying were requested to stand by the City Clerk and asked to raise
their right hand. The oath was then given.
D1. 123: JOINT PUBLIC HEARING - OWNER PARTICIPATION AGREEMENT BY AND BETWEEN
THE ANAHEIM REDEVELOPMENT AGENCY AND THE CALIFORNIA STATE TEACHERS RETIREMENT
SYSTEM AND CERTIFICATION OF THE FINAL SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT
FOR ANAHEIM PLAZA:
Submitted were the following reports: (1) Report dated December 8, 1992 with
attachments from the Community Development Department recommending that the
Agency approve proposed resolutions pertaining to the subject along with
approval of schematic drawings for redevelopment of the subject site and
authorizing the Agency Executive Director to take actions necessary to fulfill
the requirements of the agreement and, (2) Report dated December 8, 1992 from
the Community Development Department recommending that the Council take
certain actions relating to the subject agreement. (Also submitted was the
final Anaheim Plaza project Environmental Impact Report dated December, 1992.)
Also introduced into the record was letter dated December 15, 1992 from Keyser
Marston Associates, I.nc. attached to which was report dated December, 1992
entitled Economic Analysis - Anaheim Plaza (made a part of the record).
City Clerk Sohl. She announced that the hearing is not an advertised public
hearing since such a hearing is not necessary at this point. However, she
believes it is the intention of staff and the Council/Agency to allow the
public to participate.
Mayor/Chairman Daly asked to hear from those who wished to speak.
Lew Overholt, 651 N. Dwyer, Anaheim. He is appearing as a resident to implore
the Council/Agency to continue the hearing on this action in full or in part
to give the residents an opportunity to receive adequate notice of the action
being taken. There has been no opportunity for the residents to be notified.
He understands that the Redevelopment Agency did telephone the Chairman of the
group known as, Residents for Anaheim Plaza (RAP) but no communication came
from him to anybody. He feels the impact of the action planned to be taken
tonight, the approval of the owner/participation agreement, locks the City in
an agreement that will affect the future of the parcel for the next 30 or 40
years. He reiterated, before final action is taken, that the hearing be
postponed in full or in part to the next available meeting. He then confirmed
for the Mayor that the public input portion be continued. He knows for a fact
that the people who attended the two meetings held at the Plaza do not know
what is happening tonight which is the ultimate act.
Council/Agency Membe~ Pickler. He feels the two meetings referred to were the
time for input from the people in the area. At those hearings, the majority
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talked about going ahead with the plan being proposed. He attended one of the
hearings. Everyone had an opportunity to state their thoughts. He feels it
would be redundant to go through that process again.
Lew Overholt. He was a member of the executive group that organized those
meetings. That group did not have a position. The second meeting was long
and drawn out and people got tired and left. The argument that the majority
of the people, around 400, had approved the plan was not the case. Only 7
people spoke up. This is the body that makes the decision (Council/Agency).
To not give adequate notice is ignoring the interest of the people who live in
Anaheim.
Chuck Cooper, Hickory Farms, 500 N. Euclid (Anaheim Plaza). He is present
tonight to ask that the Council be unified in going forward with this program,
one that he has fought for for the last seven years. He has to disagree with
Lew Overholt. He and Mr. Overholt were the ones who had talked about forming
a group of citizens to discuss the matter in the open. Big crowds attended
the RAP meetings. He felt everybody had an opportunity to speak their peace
and to hear what was being done. At the last meeting, they were shown what
the proposed plan was going to be. He concedes that perhaps they did not like
it and he is not saying that he likes it; however, this is the retailing
change for the next century. They are not going to get a Nordstrom or a May
Company. The big retailers are in trouble. The people making the money today
are the Wallmarts, Mervyns, Cosco, etc. If they are going to wait another 10
years for a May Company or other department stores, they are going to sit
there with nothing. Tonight they have the owners at the table. He reiterated
tonight is the night for the Council/Agency to make the decision. The
neighborhood has had appropriate and adequate opportunity to know what is
happening. The decision to go forward is needed desperately. He is urging
support of the plan and that a decision be made tonight.
Mayor/Chairman Daly then asked to hear from staff.
Lisa Stipkovich, Executive Director of Community Development. She first
apologized for the confusion as to the status of the hearing tonight. It is
not a public hearing but a joint meeting of the Agency and the Council to
consider the items indicated on the Agenda. Secondly, they have been working
with the RAP group from the inception of the Redevelopment process in 1990 and
before that with the tenants in the mall who were extremely cooperative with
the City in establishing the project as a Redevelopment area. There have been
at least five meetings with the RAP group with the developer present. Two
were very large and there were at least three other meetings with the
executive committee where the developer went over the plans. Her
understanding is RAP is not a lobbying group and they do not take any position
formally. Staff assumed that the meetings that were held with the help of RAP
was the best way of getting information out to the public as well as some
newsletters that were done occasionally by Redevelopment to not only those who
live in the area but anyone who expressed interest. As a result of those
meetings, some changes were made to the plans. In the last meeting she
attended with the executive committee, the developer accommodated the request
of the neighborhood to a great degree. She felt there was some consensus
building that the project would be acceptable to the community, not that they
took any formal position.
Relative to the action before the Council/Agency tonight, she would like the
architect to review the overall plans for the project which were presented at
the last RAP meeting and also presented to the Redevelopment Commission last
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Wednesday which they approved and recommended for Council/Agency approval.
Mr. Mike Strle from the O'Connor Group will then give his comments.
Leesan Pomeroy, Architect, President, LPA Architectural Firm who is working on
the project first explained how they developed a theme for the design and
subsequently showed slides which depicted the plan as it exists today and
briefed the three major components of the plan. He then deferred to Mike
Strle.
Mike Strle, O'Connor Realty Advisors, Los Angeles (O'Connor Group). He has
been before the Council/Agency previously specifically in May of this year
when the site plan was approved and were challenged to go out and secure
approval on behalf of the State Teachers Retirement System who he is present
to represent. In the beginning of November, he and Bruce McLeod attended a
State Teachers Board ~eeting and received conditional approval to proceed on
this project. They feel very good about the agreement. The State Board is
committed to moving forward and have spent over one million dollars while the
contingencies are being satisfied to move forward. They look forward to a
positive vote this evening to not only move the project into next year, but
also to satisfy the existing tenants remaining in the Plaza to begin the
relocation process that they deserve.
Lisa Stipkovich. The Owner Participation Agreement before the Council/Agency
represents approximately six months of negotiations. An additional item they
are being asked to approve are the actual plans which are included in the
Council/Agency packets. Those plans will not be the final plans. They will
be seeing additional levels of detail as the project moves forward and the
Planning Commission will be reviewing the entitlement process. They will
subsequently have to go through different approvals for zoning actions. She
then briefed the salient points of the Owner Participation Agreement as well
as giving a summary of the economic terms and conditions (see the Agency staff
report dated December 8, 1992, from Richard Bruckner, Redevelopment/Economic
Development Manager and attachment three - Summary of Economic Terms and
Conditions as well as the Owner Participation Agreement).
Following the foregoing presentation, a member of the public, Mr. Jeff Kirsch,
2661W. Palais, posed questions which were answered by Lisa $tipkovich.
Additional members of the public then gave their input.
John Machiaverna, J. Mac Jewelers, Anaheim Plaza. The reality is that Anaheim
Plaza is now a haven for drugs and crime. If something is not done
immediately, the community will continue to suffer. The Plaza cannot become a
Main Place or a Brea Mall. Discount type stores continue to be profitable.
Reality is that Wallmart is coming to Orange County. If something is not done
to Anaheim Plaza, he feels they might as well start designing the apartment
complex that will take its place. It is time to move forward. Anaheim has
lost millions in tax revenues because Anaheim Plaza has not kept pace.
Investment in its infrastructure is an investment in the future. It is
imperative for the Council to approve the proposed resolutions tonight. There
have been public hearings and many meetings. He then answered questions posed
to him by the Mayor. There will be a place for his business in the new Plaza
concept as long as the City allows people to return to that site. He feels
the plans proposed are the way retail is going in the future. He urged that
they move forward with the program.
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Ann Lowe, South Citron, owner and resident in Anaheim. She is totally
disgusted with the Anaheim Plaza and the way it has steadily deteriorated. It
is poor management, bad attitude, no caring and slum lords. She is outraged
that the City wants to give monies to the owners for improvements. She is
interested in a first-class shopping center, not all discount stores that are
going to bring it down. The group, NOVA, is also interested in upgrading and
preserving the City's neighborhoods. She suggested that they ask Disneyland
for marketing and research ideas. Further, before cormmitting dollars to the
project, she asked that they consider replacing the management company.
Chuck Cooper. He interjected and explained that there have been four
management companies in the seven years CALSTRS (California State Teachers
Retirement System) has owned the Plaza. He will defend everyone as doing the
very best job they possibly could. It is not the management companies but the
owners. The owners are now at the table. He again urged that now is the time
to get the job done.
Mike Strle, O'Connor Group. Over a period of eight months, using the best
minds in the business they endeavored to generate interest from anchor
department stores to restore the Plaza to its traditional nature. There was
absolutely no interest expressed. The department stores have abandoned
Anaheim Plaza and Anaheim. They have put together the best plan currently and
for the future of Anaheim Plaza. The economics of the plan are such that they
need to be reimbursed by the City as prescribed in the Owner Participation
Agreement to make economic sense.
Susan Kocsis. NOVA is interested in having a nicer City and one of the things
they are interested in is Anaheim Plaza. No matter what they do to Anaheim
Plaza is not going to help if they do not get rid of drugs and gangs. If they
cannot get good quality merchants into the Plaza, large or small, people are
still going to be traveling and bussed to other destinations to shop. There
are many discount sro. res nearby but there is no Nordstrom, May Company or
Robinsons. It does not have to be any one of these, but places where she can
buy good quality merchandise nearby.
Mayor/Chairman Daly closed the public meeting.
Lew Overholt. He reiterated his request that the meeting be kept open and he
does not believe the Council addressed that. He is concerned about the
residents having an opportunity to know what is going on.
Council/Agency Member Hunter offered Resolution No. ARA92-28 and A/{A92-29 for
adoption. Refer to Resolution Book.
RESOLUTION NO. ARA92-28: A P~ESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
CERTIFYING THE COMPLETION OF A FINAL SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT
FOR DEVELOPMENT OF THE PROPOSED ANAHEIM PLAZA PROJECT, MAKING CERTAIN FINDINGS
AND ADOPTING A MITIGATION MONITORING PROGRAM.
RESOLUTION NO. ARA92-29: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
APPROVING AND AUTHORIZING THE EXECUTION OF AN OWNER PARTICIPATION ACREEMENT
WITH THE CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM AND M/tKING CERTAIN
FINDINGS IN CONNECTION HEREWITH.
MOTION: Council/Agency Member Hunter moved to approve schematic drawings for
redevelopment of the site; and authorizing the Agency Executive Director to
take actions that ar~ necessary and desirable on the part of the Agency to
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DECEMBER 15, 1992, 5~00 P.M.
fulfill the requirements of the Agreement. Agency Member Simpson seconded the
motion.
Before further action was taken on the Resolutions or the Motion,
Mayor/Chairman Daly posed questions relative to the maximum Agency
contribution to the project of 6.3 million dollars, future improvements to the
Euclid Street interchange and some design aspects of the plan which were
answered by both Leesan Pomeroy and Lisa Stipkovich.
Council/Agency Members Pickler and Feldhaus also posed questions which were
answered by Lisa Stipkovich.
Council/Agency Member Pickler posed questions relative to the length of time
staff had been working on the Plaza project subsequently leading to the
proposed action tonight; Council/Agency Member Feldhaus inquired about the
movie theatre and food court.
Lisa Stipkovich. Recapped the sequence of events since the process started in
1988. Relative to the movie theatre, it is a film distribution problem as it
is with the proposed theatre in the downtown area. They can get second run
theaters but that does not seem to be the desirable alternative. There is
nothing wrong with the location, but the distribution of films makes it
difficult for anyone to get a theatre operator.
Council/Agency Member Pickler. The City had been hoping for a regional center
and the ideal would be to have stores like Nordstroms, a Macys or Bullocks.
The management companies have tried to find those kinds of tenants but it is
not realistic for Anaheim Plaza. He does not want apartments or condominiums
built on that property but a project that will be of benefit to the City and
its citizens. He feels the concept proposed will be that. Mrs. Stipkovich
and Redevelopment have finally gotten CALSTRS to the point of an Owner
Participation Agreement. Time is of the essence. Although he wishes there
could be more time for people to comment, he feels they would hear the same
things that have already been aired. The Plaza is at the point where
something must be done now. He will be voting yes to assure that happens.
Mayor/Chairman Daly. He believes the plan they have before them probably is
the best plan they are going to get. Speakers have been very convincing on
both sides this evening as well as over the past year. However, he believes
it would be prudent to allow one final opportunity for the public to comment.
Once the agreement is approved, it is locked in place for 25 years. The
community has waited '7 years - it deserves one final opportunity to speak.
They have not had a chance to have a say in the Council Chamber for some time.
He attended the meetings at the Plaza and walked away with a feeling that
there were conceptual plans but the mix of stores and the discussion of
exactly what stores was left hanging. People did leave the meetings early.
Many people all over Anaheim are concerned. He feels waiting three more weeks
would be prudent. If he is outvoted and the majority want to proceed, he
will pledge to work to make the plan a great one for Anaheim. He feels the
plan is a good one as well as design, the landscaping and architecture. He
has looked at other cities and feels they have been more aggressive with their
shopping centers. He will be voting against the proposed actions since he
believes there should be one more opportunity for public participation and
comment.
A vote was then taken on the foregoing Resolutions offered by Agency Member
Hunter and carried by the following vote:
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DECEI/BER 15, 1992, 5z00 P.N.
Roll Call Vote on Resolut£on Nos. ARA92-28 andABA92-2V for adopt£on~
AYES: AGENCY MEMBERS: Feldhaus, Hunter, Pickler, Simpson
NOES: AGENCY MEMBERS: Daly
ABSENT: AGENCY MEMBERS: None
The Chairman declared Resolution Nos. ARA92-28 and ARA92-29 duly passed and
adopted.
A vote was then taken on the foregoing motion approving schematic drawings and
carried by the following vote: All Ayes with Agency Member Daly voting no.
WAIVER OF READING - RESOLUTION: The title of the following resolution was
read by the City Clerk. (Resolution No. 92R-253)
Council Member Hunter moved to waive the reading in full of the resolution.
Council Member Simpson seconded the motion. MOTION CARRIED.
Council Member Hunter offered Resolution No. 92R-253 for adoption. Refer to
Resolution Book.
RESOLUTION NO. 92R-253: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM CONSENTING TO THE APPROVAL BY THE ANAHEIM REDEVELOPMENT AGENCY OF AN
OWNER PARTICIPATION AGREEMENT BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND THE
CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM, APPROVING THE PROVISION OF PUBLIC
IMPROVEMENTS AND MAKING CERTAIN FINDING IN CONNECTION THEREWITH.
Roll Call Vote on Resolution No. 93R-253 for adoptions
AYES: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson
NOES: COUNCIL MEMBERS: Daly
ABSENT: COUNCIL MEMBERS: None
The Mayor declared Resolution No. 93R-253 duly passed and adopted.
ADJOURNMENT - ANAHEIM REDEVELOPMENT AGENCY: Agency Member Hunter moved to
adjourn, Agency Member Daly seconded the motion. MOTION CARRIED. (8:39 p.m.)
LEONORA N. SOHL, SECRETARY
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