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HA1980/12/0280-69 ANAHEIM HOUSING AUTHORITY December 2, 1980 Council Chamber Anaheim City Ha 11 PRESENT: AUTHORITY MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour ABSENT: AUTHORITY MEMBERS: None PRESENT: CITY MANAGER: William 0. Talley CITY ATTORNEY: William P. Hopkins SECRETARY: Linda D. Roberts EXECUTIVE llIRECTOR: Norman J. Priest REDEVELOPMENT MANAGER: Susan Schick Chairman Seymour called the regular meeting to order at 1:26 P,M. MINUTES: On motion by Mrs. Kaywood, seconded by Mr, Roth, minutes of the regular meeting held November 25, 1980, were approved. MOTION CARRIED. FINANCIAL DEMANDS AGAINST THE ANAHEIM HOUSING AUTHORITY in the amount of $27,11, in accordance with the 1980-81 Budget, were approved, 177.123: AGREEMENT FOR SALE AND DEVELOPMENT FREMONT JUNIOR HIGH SCHOOL SITE - RIVER CITY DEVELOPMENT COMPANY INC /THE TOMAN COMPANY/CITIZENS SAVINGS AND LOAN ASSOCIATION: Executive Director Norman Priest reported that in accordance with Housing Authority direction at the November 12, 1980, meeting, Authority staff had negotiated with River City Development Company, Inc./The Toman Company/Citizens Savings and Loan Association for a proposed -agreement which specified that the Authority would agree to sell the Fremont School site to the developer and the developer would agree to purchase same for the price of $3,600,000, and convey to the City of Anaheim approximately two acres of said property for~se by the City of Anaheim for recreational purposes. Additionally, the developer would provide to the City }100,000 for the purpose of rehabilitating the recreational facilities on the two-acre parcel. The developer also would provide that 84 out of 230 residential units (or a minimum of 25%) on the balance of the property would he in the "affordable" range. He called attention to Exhibit A recently furnished to the Authority Members which depicted the total parcel and outlined the two-acre portion with existing main structure which would be the facility used for the Cultural Arts Center for the City, with buildings 1 through 4 to be demolished. Mr. Priest reported that the Anaheim Union High School District had not modified the $4.8 million amount they were hoping to receive for the property when bids were submitted December 11, 1980, however it was recommended that the Housing Authority make its offer in the amount of $3,600,000, based on the proposed agreement, which he felt was a realistic one. Mr, Overholt moved that the terms and conditions of the proposed agreement bu approved, and that the Authority Chairman and Secretary be authorized to execute said agreement. Mr. Seymour seconded the motion. ti ~J-; V ANAHEIM HOUSING AUTHORITY DECEMBER 2 1980 1:00 P M Discussion followed, and in response to question by Authority Member . Overholt, Mr. Priest advised that although Paragraph 1 of the Statement of Proposal mentioned purchase of the Fremont Junior High School site by River City-Tomah in an amount "not to exceed $4,300,000", the language of the final agreement would prevail, and the figure would be $3,600,000. Mr. Michael T. Collins, Vice President of River City Development Company, Inc., advised that the figure alluded to was in a Statement of Proposal dated October 21, 1980, and was since amended. He responded to additional questions by the Authority, stating that approximately two acres of the six-acre parcel would be devoted to the Cultural Arts Center and parking therefor, the balance of the property to be developed for housing purposes with a minimum of 84 residential units in the affordable range, and 146 to be for sale at "market" rates. He pointed out that the financial agreement was reached approximately one week earlier. Mr. Roth stated that he had not received Exhibits B and C until this date; therefor e, he had not been able to study them and was reluctant to take action at this time, Mr. Priest advised that the two exhibits referred to were the original ar,d amended proposals. Mr. Bay concurred with Mr. Roth's statement and questioned the impact if the Authority continued action on this matter for one week. Mr. Priest replied that the School Board would be accepting proposals for the property and would not have the City's proposal before them at the time they probably would be taking action on the proposals thyy received. Mr. Bay stated he would like an opportunity to study Exhibits B and C, further, that he would like to hear more public input on the proposed purchase of the school site. tlr. Seymour expressed the opinion that by approving the proposed agreement and authorizing the offer to the School District, the Authority would be approving a concept with no binding agreements concerning the exact density, street patterns, etc.; these matters would be considered at subsequent public hearings before the Planning Commission. He felt the initially proposed 25 affordable units to the net acre and 19 "marketable" units to the net acre, plus 2 acres and the existing structure for the Cultural ~:rts facility with a pe r.forming arts center, and $100,000 toward its renovation, was a very flexible concept. It would be difficult to achieve the public in,p ut without taking these preliminary steps, and he felt the Authority should be prepared to move ahead so that the School Board would be assured that the City was prepared to follow through with necessary public hearings if the proposal were accepted. Mrs. Kaywood was of the opinion that by approving the concept, action on any future zoning involved would be pre-determined. She noted some citizen concerns she had heard expressed about theexisting sewers in the area, already inadequate. 80-71 ANAHEIM HOUSING AUTHORITY, DECEMBER_2 19.8.0.1:00 P.M, Mr. Priest noted that it was not intended that zoning on the property be pre-determined, however the City did not own the property nor did it have the funds for acquisition. Mr. Collins briefly reviewed the negotiations between his company and the klousing Authority staff in an effort to obtain a proposal which would not he contingent upon the City guaranteeing any use or density, and would achieve a Cultural Arts Center for the citizens. htrs. Kaywood pointed out that she was very much in favor of preserving tl~e former school auditorium as a Cultural Arts Center which would be beneficial to the City, howevez one of the concerns expressed to her related to the possibility of three-/and four-bedroom units being con- structed on property which once served as a school, bringing many children who would then have no schools. Mr. Overholt conrmented that the people involved in the Foundation for Culture and the Arts conceived the idea of preserving the Fremont School auditorium for a Cultural Arts and Performing Arts Center and should be given the credit. At the invitation of Chairman Seymour, P1rs. Alarguerite Lee, President of the Foundation for Culture and the Arts, came forward and advised that the present Cultural Arts Center at Harbor I3oulevard and LaPalma Avenue was very limited in size, and over 75,000 people were being instructed in various art classes annually. Due to the limited space, many people had to be turned away. She noted the need for a theatre with a stage so that little theatre groups could rehearse and present their productions, Mrs. Lee stated that the Foundation's directors consisted of representa- tives from all art groups within the City, and it was their opinion that ehe building at the Tremont School site would be very workable for the Center's purposes, She reported that during the most recent board meeting, a vote was taken and the Board of llirectors voted unanimously for a proposal to enter into a cooperative venture with the City of Anaheim, which would continue for from three to five years until the Foundation becomes self-sustaining. A copy of the ballot referred to was submitted for the record. Responding to a question by Mr. 73ay, Mrs. Lee reported that in approxi- mately four years, the Foundation had raised about $15,000; that once the facility was designated for their purposes, grants would be available and more donations would he conmiitted. Chairman Seymour asked if anyone else wished to address the Authority. Mr, Ray Campbell, 6LO Gilbuck Street, member of the Foundation's Board of llirectors, advised that their survey group contacted most of the City's prominent citizens and as a result, they felt that in addition to the normal dues, donations of approximately $50,000 per year would be realized if the new facility became a reality. Mr, Campbell reported he had collected 1700 signatures on petitions (not submitted for the record) favoring a Center at the subject location. Chairman Se}anour asked if anyone else wished to address the Housing Authority; there was no response. ~1 ()-%2 ANAttEIM HOUSING AULHORITY. DECEMY,ER 2, 1980, 1:00 P.M Authority Member Overholt invited Mr. James Ruth, Deputy City Manager, to address the Authority with regard to his report dated November 25, 1980, concerning the proposal under consideration. Mr. Ruth came forward and expressed the opinion that the proposed funding and maintenance of the facilities for a Cultural Arts Center was a viable project in which the City could become involved, and he noted that CETA Services Manager William Hepburn had discussed utilizing the facility as a training opportunity for young people. In addition, the North Orange County Community College District Regional Occupation Program people were interested in the possibility of using space in the facility. In short, there were methods of approaching the funding for the center without utilizing the City's General Fund. The City would have to be very much involved during the formative years until the facility became self-supporting. In response to question by Mrs. Kaywood, Mr. Ruth stated he felt that necessary funds would be forthcoming; he had spoken with representatives of two long-standing major businesses in the City, and they indicated an interest in making contributions only if government were involved. The Irvine Foundation had also indicated an interest in contributing. Reference was made by hir. Bay to the expenses projected in Mr. Ruth's report, it being noted that operating costs would cover salary and fringe benefits for one full-time staff member together with necessary supplies; that other projected expenses such as parking lot and Uuilding renovation, -- at a total of $420,000, would allow for subsequent improvements; however, building maintenancewould be an on-going yearly expense of approximately $100,000. Of the $40,000 projected under revenues for building rental, approximately $25,000 was already accounted for. h1r. Bay expressed concern about CLTA programs being eliminated under the new administration taking office in 1981, however Mr. Ruth was of the opinion that only certain programs would he jeopardized, and the proposed CLTA lease, shown at $42,000, would not be affected. Mr, [iay stated that recurring expenses for operating costs and building maintenance would amount to approximately $160,000 a year, and during the first year there would be an additional $340,000 expense. To him, it was necessary to expect that the $500,000 would be coming out of the City's yearly budget. Pfrs. Kaywood questioned whether the Cultural Arts Center was not expected to become self-supporting. Mr. Ruth concurred, noting that the City's financial portion would phase out altogether within three to five years. hir. Overholt was of the opinion that Mr. Ruth's report was a convincing argument for the viability of the project and should give great strength to the Foundation for raising additional funds to enable the Center to be self-supporting. 80-73 ANAHEIM HOUSING AUTHORI'LY DECEMBER 2 1980 1:00 P,M. Chairman Seymour called attention to the fact that between two and two and a quarter million square feet of commercial office space was currently proposed in the Downtown Redevelopment Area, and he noted there would be a need for more housing located as near as possible to such facilities. Ile felt the housing aspects of the proposal were sound, and noted that an approval today would be for the concept only, with no commitment to density, and further consideration would be given at necessary public hearings in the future. He further stated that he was totally supportive of what the Foundation for Culture and the Arts wanted to accomplish, and noted that this organization had, with the help of the Anaheim City Council, moved into the former Horace PLann Elementary School building and refurbished it for their use as a Cultural Arts Center. I{e felt they could do so again with the larger facility at the Fremont site. Mr. Seymour pointed out that the concepts of many past ventures had been approved by the City without having every detail established initially, and he was confident that the Center would be self-supporting. in a few years. Ile noted the principles were well spelled out in the proposed agreement, and he congratulated the staff and the developer for working out such a unique and creative plan. Mr. Roth expressed support of the concept, noting that he had voted for the Cultural Arts Center at the former Horace Mann School. Mr. Overholt pointed out Chat he also had voted for the present Cultural Arts Center, but from the standpoint of being on the School Board at that time, He noted some of the problems that had to be resolved by the hoard at the time and was of the opinion that the Center had since served the City well. IIe foresaw an even greater potential for the Fremont site which should serve the citizens for many years to come, and he commented on the City staff's innovative thinking which led to the proposal at hand. NIr, Bay stated that he would cast a "no" vote on the proposal, based on the principle that in his opinion, approval of the proposal would constitute pre-determination of the number of residential units for the property, and would be a commitment of taxpayer monies, The motion was re-stated, as follows: Authority Member Overholt moved that the Ilousing Authority authorize an agreement with the River City Development Company, Inc./1'he Toman Company/ Citizens Savings and Loan Association for the sale and development of the Fremont School site. Mr. Seymour seconded the motion. Ro11 Ca11 Vote: AYES: AULHORITY MEMBERS: Werholt, Kaywood, Roth and Seymour NOES: AVt HORI'PY M1iMBE RS: Bay AIiSENT: AUPHORITY h4M6ERS: None MOTION CARRIEll, Mr. lverholt moved that the Executive Director be authorized to make an official offer in the .smount of 43,600,000 to purchase the Fremont School site from the Anaheim Union High School District in accordance with the agreement just authorized. Mr. Seymour seconded the motion. 90-4 ANAHEIM HOUSING AUTHORITY DECEMBER 2 1980 1:00 P.M Roll Call Vote: AYES: AUTHORITY i4:MBERS: NOES: AUTHORITY MEMBERS; ASSENT; AUTHORITY MEMBERS: MOTION CARRIED. Overholt, Kavwood, Roth and Seymour Bav None ADJOURNMENT; There being no further business to come before the Anaheim Housing Authority, Mr. Roth moved to adjourn. Mrs. Kaywood seconded the motion. MOTION CARRIED, ADJOURNED: 2:36 P.M. LINDA ~D. ROBERTS, SEC TARY