RA1983/09/1383 -70
Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY
September 13; 1983, 9:30 A.M. M°
PRESENT: AGENCY MEMBERS: Kaywood,. Pickler, Overholt, Bay and Roth
ABSENT: AGENCY MEMBERS: None
PRESENT: CITY MANAGER: William 0. Talley
CITY ATTORNEY: William P. Hopkins
SECRETARY: Linda D. Roberts
EXECUTIVE DIRECTOR: Norman J. Priest
Chairman Roth called the regular meeting of the Anaheim Redevelopment Agency
to order at 9:42 a.m.
MINUTES: Agency Member Kaywood moved to approve the minutes of the regular
meetings held August 2, August 9, August 16, August 23 and August 30, 1983.
Agency Member Bay seconded the motion. Agency Members Pickler and Overholt
abstained on the minutes of August 16, Agency Member Bay abstained on the
minutes of August 23, and Agency Members Overholt and Roth abstained on the
minutes of August 30, 1983, since they were not present at those meetings.
MOTION CARRIED.
FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of
19,319.39 and 41,909.89 for Series "C" Bonds, in accordance with the 1983 -84
Budget, were approved.
161.121: CONTINUED CONDEMNATION HEARING: To consider the acquisition of --M
property generally located at 108 -116 West Chestnut Street and 203 -227 South
Anaheim Boulevard and owned by Frank A. Dusek, Trustee -- continued from the
meeting of September 6, 1983 (See minutes that date).
RECESS - CLOSED SESSION: City Attorney William Hopkins requested a Closed
Session to discuss potential litigation with possible action.
Agency Member Roth moved to recess into Closed Session. Agency Member Pickler
seconded the motion. MOTION CARRIED. (9:43 a.m.)
AFTER RECESS: The Chairman called the meeting to order, all Agency Members
being present. (9:56 a.m.)
Chairman Roth stated that they would field any questions on the subject
condemnation relative to the following three items: (a) Whether or not the
public interest and necessity required the project. (b) Whether or not the
project is planned or located in a manner that will be the most compatible
with the greatest public good and least private injury. (c) Whether or not
the property sought to be acquired is necessary for the project.
Chairman Roth declared the hearing open and asked to hear from anyone who
wished to speak.
Mr. Leonard Hampel, Attorney, Rutan and Tucker, 611 Anton Boulevard, Costa
Mesa, stated he had represented the Duseks (owners of the Pickwick Hotel)
since early 1981. The Chairman accurately stated the issues, but he would
suggest that the burden was on the Agency to produce evidence to support the
findings set forth in the condemnation resolution and also to present evidence
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Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY
September 13, 1983, 9.30 A.M.
to support California Environmental Protection Act (CEQA) findings that must
relate to some form of explanation as to irreparable environmental damage that
was about to occur to a historical monument. None of that evidence, to his
knowledge, had been presented to the Agency. Based on the record, it would be
a gross abuse of discretion to proceed without that type of evidence. He
would produce evidence which, in their opinion, would show lack of necessity
for the taking. In order to save time and avoid duplication of the extensive
hearings held before the Agency in 1981, Mr. Hampel asked if he could have all
the evidence as outlined in his letter of September 6, 1983, presented at this
hearing without rereading and covering that same ground.
Mr. Tom Stoever, Oliver, Stoever and Laskin, Special Counsel to the Agency,
answered that would be appropriate.
Mr. Hampel then proceeded with his presentation, basically briefing his
six -page letter of September 6, 1983 (see letter on file in the City Clerk's
office, attached to which and incorporated as part of that letter were
documents listed "a." through "i.," consisting of previous documents and
testimony presented before the Agency and Advisory Commission as broached by
Mr. Hampel in his opening remarks). His presentation highlighted the
following: The purpose of the evidence presented established the Duseks'
desire and willingness to renovate the Pickwick Hotel and the point was
well - established that renovation was both economically and engineeringly
feasible. The EIR recognized the building was structurally sound and capable
of preservation. Relative to prospective commercial tenants, they had given a
list of nine such tenants for the ground floor of the hotel, and that list
could easily be supplemented. Renovation would be consistent with both the
Zoning Ordinance and Redevelopment Plan as a hotel. The proposed development
on Parcels 8 and 9 included a 300 -room hotel. Renovation and the advantages
of it would occur without cost to the City and without the necessity of direct
governmental subsidy.
They respectfully suggested that the Agency had no concrete or tangible
alternative. The EIR showed very little in the way of a project and the
City's offer was now based on an appraisal some two years old and could hardly
be considered reflective of current Fair Market Value of the property. There
was no disposition and development agreement of any kind currently in place,
or any exclusive negotiating agreement. The Agency had gone forward with no
plans to market the property. A developer was absolutely essential for the
project and there was no developer. It was a matter of weighing the public
good with proceeding against the private injury. Without a project, there was
no public good that they could evaluate.
Relative to private injury, the Duseks would be deprived of their property,
his tenants would lose affordable housing and the community would lose one of
its most important historic buildings. There was a requirement in
condemnation law that there be a reasonable probability that the project be
used for some public use in the foreseeable future. That use was not
identified. Finally, they had to make a finding of consistency with the
General Plan, which included a Housing Element and that was part and parcel to
having a relocation plan for the existing tenants. The Housing Element
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Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY
September 13, 1983, 9:30 A.M.
indicated a deficiency of 4,000 at present, and there was no way they could
justify eliminating more affordable housing in favor or potentially some
commercial or office space which would exacerbate the housing problem by
bringing in more employees.
In concluding, he stated that he hoped the Agency would not adopt the
Condemnation Resolution. If they did so, it would "put a gun to their head"
and put them in an adversary proceeding. The Duseks would prefer to work with
the Agency and have the opportunity to look at alternatives in a meaningful
manner. Mr. Priest had not had the opportunity of exploring the alternatives,
because several years ago the Agency had already made the decision to take the
property. They felt it would be useful, perhaps, with a committee of the
Agency and staff to explore realistically the alternatives and the prospects
for preserving the Pickwick Hotel.
Chairman Roth asked if anyone else wished to speak on the three items outlined
at the opening of the hearing. No one else wished to speak.
Agency Member Roth offered Resolution No. ARA83 -36 for adoption, finding and
determining the public interest and necessity for acquiring and authorizing
the condemnation of certain real property within the Redevelopment Project
Area and authorizing the law firm of Oliver, Stoever & Laskin to proceed.
Refer to Resolution Book.
RESOLUTION NO. ARA83 -36: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
FINDING AND DETERMINING THE PUBLIC INTEREST AND NECESSITY FOR ACQUIRING AND
AUTHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERTY WITHIN THE REDEVELOPMENT
PROJECT AREA (FRANK A. DUSEK, TRUSTEE)
Before a vote was taken, Agency Member Bay stated that there should be some
comment in response to the continual use of the words historical monument when
speaking about the Pickwick Hotel. He personally experienced dealing with the
California Historical Commission at a time when almost every 1920 spec
building in the Redevelopment Project was considered to be put on the Historic
Register. He had discussed the history of the Pickwick with people who lived
with that history in the City. He was more impressed with their first -hand
experience and the expression of their opinions of the historical or social
importance of the Pickwick. In dealings with the California Historical
Commission, their opinions had been anything but objective and, in fact,
blatantly subjective. There were thousands of items on the Historical
Register that had been put there for various sundry reasons and motivations.
A vote was then taken on the foregoing resolution.
Roll Call Vote:
AYES: AGENCY MEMBERS: Kaywood, Pickler, Overholt, Bay and Roth
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
The Chairman declared Resolution No. ARA83 -36 duly passed and adopted.
83 -73
Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY
September 13, 1983_,_9:30 A.M.
ADJOURNMENT: Agency Member Pickler moved to adjourn. Agency Member Roth
seconded the motion. MOTION CARRIED. (10:18 a.m.)
LINDA D. ROBERTS, SECRETARY