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RA1983/11/2283 -91 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY November 22, 1983, 9 :30 A.M. PRESENT: AGENCY MEMBERS: Kaywood, Bay, Overholt, Pickler 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 10:00 a.m. MINUTES: Agency Member Kaywood moved to approve the minutes of the regular meetings held October 25 and November 1, 1983. Agency Member Pickler seconded the motion. Agency Member Overholt abstained on the minutes of October 25 and November 1, 1983, and Agency Member Bay abstained on the minutes of November 1, 1983, since they were not present at those meetings. MOTION CARRIED. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of 8,916.67 and $417,436.00 for Series "C" Bonds, in accordance with the 1983 -84 Budget, were approved. RECESS: Agency Member Roth moved to recess to 1:30 p.m. for the purpose of a joint public hearing with the City Council and the Redevelopment Commission. Agency Member Kaywood seconded the motion. MOTION CARRIED. (10:01 a.m.) AFTER RECESS: Chairman Roth reconvened the Anaheim Redevelopment Agency, all Agency Members being present, for the purpose of conducting a joint public hearing with the City Council and the Redevelopment Commission. (1:50 p.m.) PRESENT: ABSENT: PRESENT: ABSENT: PRESENT: COUNCIL /AGENCY MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth COUNCIL /AGENCY MEMBERS: None REDEVELOPMENT COMMISSIONERS: Robert Doty, Jane Oseid, Doug Renner, Dan Martinez, Robert Anthony, William Ranney REDEVELOPMENT COMMISSIONERS: Herb Leo CITY MANAGER: William 0. Talley CITY ATTORNEY: William P. Hopkins CITY CLERK: Linda D. Roberts EXECUTIVE DIRECTOR: Norman Priest CITY ENGINEER: William Devitt ASSOCIATE PLANNER: John Anderson 161.157/105: JOINT PUBLIC HEARING - PROPOSED REDEVELOPMENT PLAN FOR THE RIVER VALLEY REDEVELOPMENT PROJECT A joint hearing between the City Council, the Redevelopment Agency and Redevelopment Commission to consider the proposed Redevelopment Plan and Environmental Review Determination for the River Valley .� Redevelopment Project located northwest of the intersection of the Riverside Freeway and Weir Canyon Road. Vice Chairman of the Redevelopment Commission, William Ranney, called the Commission to order. (1:50 p.m.) 83 -92 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY mom November 22, 1983, 9:30 A.M. Mayor /Chairman Roth opened the joint public hearing, explaining its purpose was to consider the approval and adoption of the proposed Redevelopment Plan for the River Valley Redevelopment Project and the Environmental Impact Reports previously prepared for SAVI Ranch and Shorb Wells (EIR Nos. 230 and 258), pursuant to the Community Redevelopment Law of the State of California. Executive Director of Community Development Norman Priest then gave a summary of the proposed Redevelopment Plan, which involved approximately 160 acres, generally at the intersection of Weir Canyon Road and La Palma Avenue. The property had been deterred from development by the flood hazard created by the non - channelized Santa Ana River (see Exhibit A, Section 5 in the booklet entitled, Joint Public Hearing, River Valley Redevelopment Project, November 22, 1983, on file in the City Clerk's office, which included a map of the Project Area and a legal description of its boundaries. The booklet contained detailed documentation on all aspects of the Project Area from its inception to present). Mr. Priest briefed the extensive actions that had taken place culminating in the presentation of the Plan for approval today, as well as making certain findings that the provision of low and moderate income housing outside the River Valley Redevelopment Project Area and the use of tax increment revenues would be of benefit to the Project and also making certain findings in compliance with the California Environmental Quality Act (CEQA) with respect to the Project's environmental impacts. (Also see report to the City Council on the proposed Redevelopment Plan for the River Valley Redevelopment Project -- September 1983 -- Section 6 of the aforementioned booklet -- giving the Reasons for the Selection of the Proposed Project Area, Description of Physical, Social and Economic Conditions in the Project Area, Methods of Financing the Project, Plan and Method of Relocation, Analysis of the Preliminary Plan, Report and Recommendations of Planning Commission, Report Required by Section 65402 of Government Code, Project Environmental Impact Reports, Report of County Fiscal Officer and Fiscal Review Committee, Analysis of Report of County Fiscal Officer and Summary of Consultations with Taxing Agencies, portions of which were also briefed by Mr. Priest.) He then asked John Anderson, Associate Planner, to speak to the blighted conditions relative to the Project. In his presentation, working from posted maps, Mr. Anderson explained that the Santa Ana River flowing through Anaheim's canyon area had the potential for the worst flooding in the Nation, yet the River Valley Project parcels were singularly unprotected. The United States Corps of Engineers All River Plan would eventually provide protection along the River. As presently adopted, however, the subject area would remain unprotected in its natural state and the Federal Environmental Management Agency (FEMA) maps showed the area to be in the A -Zone Flood Hazard Area and Floodway. He then narrated a brief video record of the area taken after the moderate rains of 1980. He continued that, subsequent to the Corps plans and FEMA maps, private levee construction in the vicinity had changed the flood patterns and while the levees now provided protection to adjacent properties, they would act to channelize flood flows and direct the flows against the unprotected Shorb Wells and SAVI parcels. The River bisected the River Valley Project east to west and within the Shorb Wells parcel there were several flood protection /drainage concerns. He then 83 -93 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY November 22, 1983, 9:30 A.M. pointed to those areas from the engineering map, concluding that the areas must be properly filled, protected by erosion control landscaping, provision made for conveyance of area -wide drainage and adequate flood protection provided including levees, channel improvements and excavations. Similar blight was found on the westerly portion of the SAVI Ranch and those deficiencies would require fill and provision for conveyance of area -wide drainage and for adequate flood protection by completion and improvement of levees and by channel improvements. Mr. Priest then reported that in terms of land use and land ownership, the land was largely vacant. There were six owners with 18 assessor parcels and a number of those owners were utility companies. The major owners were SAVI, owning 50 plus acres in agricultural use, and the City of Anaheim, with 50 plus acres in the Shorb Wells site. The River channel bisected the property and occupied the remainder of the 150 acres. He then explained the zoning on the property and the possible capital improvements contained therein. He continued that the proposed Redevelopment Plan was not typical of those they had considered previously and acquisition would be very limited to only that necessary for proper parcelization and carrying out public improvements. Relocation was provided for in the Plan, although there were no Project residents. It further provided for demolition and public improvements. Key elements they would envision utilizing was the ability the Plan gave to participate with current owners in the development of the property and a provision of the Plan indicating the intent of the Agency to coordinate with other public bodies in the Planning and implementation of the program. The financing permitted the use of tax increments in the Plan up to $30 million and that was their estimate of a worst -case basis. It also envisioned utilizing other sources of financing, whether State, Federal, Corps of Engineers and County, as were available in combination. (Also see Page 5 of report to the City Council on the Redevelopment Plan, Section 6 of the booklet.) He then asked Mr. Don Swartz of Hillman Properties, representing SAVI, to comment on their proposed development. Mr. Don Swartz, 450 Newport Center Drive, Newport Beach, stated they were the owners of the property shown on the map in blue, marked A, B and C. Their proposed development was of two types -- office development near Weir Canyon, and industrial development to the west of the property of approximately 300,000 feet of office buildings to be developed, and 600,000 feet of light industrial buildings at this time, if the channel improvements were put in place. Without those improvements, the property was difficult to plan and use, and they would probably get from one - quarter to one -third of the amount of industrial space on the property. The bridge across Weir Canyon was essentially complete and should be connected to the Riverside Freeway in the next 60 days. They were supportive of the Project and felt it would benefit the entire County. He then confirmed for Council /Agency Member Bay that the commercial office would be developed whether or not the Redevelopment Project was approved, but the industrial portion would otherwise only be 25 percent developable. 83 -94 Anaheim Civi Center, ANAHEIM REDEVELOPMENT AGENCY November A.M. Mr. Anderson then described the potential development of the Shorb Wells property under the General Plan. The General Plan designation and compatible zoning would permit uses including development of a neighborhood shopping center or commercial uses in support of the anticipated nearby SAVI commercial /industrial and the Bauer Ranch regional shopping center. Working from the posted map, Mr. Anderson stated that should the parcels be precluded by noted flood and drainage concerns from planned development, not only would the subject parcels remain blighted and underdeveloped, but also the larger vicinity would to that extent be blighted by unsightly, dysfunctional and underdeveloped parcels within the center of what was planned to be an intensively developed community core. Mr. Priest then elaborated on the financing aspect of the Project, pointing out that the tax increment of full development would be slightly in excess of $1 million and there were two significant factors relative to that. Under California State law, 20 percent of that increment was committed to low and moderate income housing in the community and was a legal requirement. Additionally, recognizing that the Project having eliminated flooding and creating developable land would lead to development which could create approximately 3,100 jobs. They, therefore, recognized that there might be impact upon school districts and surrounding public bodies. They had been in consultation with those public bodies, and at this point in time, suggested to them agreements known commonly as pass- through agreements, in which case a 0--m' portion of the increment would pass- through to those bodies to assist them in any detriment and the maximum amount of such pass- through would be approximately 23 percent of the total increment. In concluding, Mr. Priest stated that the Project would not only eliminate the flooding, but it also would create additional jobs, provide tax increment only as necessary to either do the Project or close the gap with other available financing, and it would not be their intention to get extensively into land acquisition, transfer or development. He then outlined the documents submitted and announced that Rhonda Gale from Weiser, Kane, Ballmer and Berkman, Special Counsel, and Mr. Kalva Hollis of Katz Hollis, and Redevelopment staff were present. Questions were then posed to Mr. Priest by Council /Agency Members for purposes of clarification, as well as questions posed by Redevelopment Commissioners Doug Renner and Robert Anthony, which were answered by City Engineer William Devitt. Mr. Devitt reported that the Project provided localized protection, and the problem Mr. Renner emphasized relative to the Santa Ana River as indicated in the public notice mailed out with property tax statements, was a Corps of Army Engineers problem, which would take multi - billions of dollars to solve. The two were not directly associated and he reiterated that relative to the subject Project, they were looking at localized protection for an intermediate period of time and ultimately the All River Plan must be built. He also clarified that the site did flood now without the necessary protection that was being proposed. He also confirmed for Council /Agency Member Bay that there was levee protection south of the area. The Flood Control District had for many years been making improvements along the River and particularly around the bend at Lincoln Avenue. It was an on -going program of continued progress. 83 -95 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY November 22, 1983, 9:30 A.M. Mayor /Chairman Roth asked the estimated value of the Shorb Wells property which was owned by the City, if it had an adequate amount of flood protection for building or developing; Mr. Priest answered that he did not have that figure. In terms of developable parcels, there were approximately 42 acres. Mr. Anderson interjected and stated that 42 would be an optimistic acreage in terms of what would be developable. That was based on Assessor's data previous to the time that some of the road work was completed, and the actual usable area might be anywhere from 19 to 30 acres. Mr. Devitt also reported, in answer to the Mayor /Chairman, that there was a great deal of fill involved in the property and without that fill, it was not likely that anything worthwhile could be developed; Mayor /Chairman Roth stated that was the answer he was looking for. It was a valuable piece of property whether it was going to be used for commercial or industrial in the future, and thus would have a far - reaching effect as far as the taxpayers in the City were concerned. Council /Agency Member Pickler asked Mr. Hollis if he had an estimate of the value of the property as broached by the Mayor; Mr. Kalva Hollis stated they did not try to estimate the value of the land. It was commercial- industrial property, which in Orange County, if developable, could be a minimum of $4 and as high as $9 or $10 a square foot. The Mayor /Chairman asked if anyone wished to speak to the proposed River Valley Project. Denise Racine, 5500 Morro Way, La Mesa, representing the California Department of Fish and Game, read a prepared statement, the essence of which was as follows: The Department had commented on development proposals for the area in the past. Their concerns regarding protection of the habitat along the River remained the same regarding the subject Project. Their comments on the SAVI Ranch General Plan Amendment in 1979 stated that the Horseshoe Bend area within the Santa Ana River Flood Plain contained some of the most productive riparian habitat found below Prado Dam. They intended to be very protective of the habitat and believed the Project was incompatible with their objective in protecting those resources. They recommended that riparian resources within the Horseshoe Bend area be given full protection from and buffered against any urban development. A continuous corridor of riparian woodlands linking Yorba Linda Regional Park and Featherly Regional Park should be provided to preserve the region from excess urban encroachment to maintain its value for riparian wildlife. In concluding, she stated they would like to support the Corps of Engineers All River Plan which designated the area as open space. Council /Agency Member Bay asked Miss Racine if she had responded in writing to the EIR report; Miss Racine answered they did not. Mr. Priest pointed out that they did respond on the prior EIR's and they considered those in the Project. They would have taken those comments into consideration at that time. •. Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY November 22, 1983, 9:30 A.M. Council /Agency Member Bay surmised then that the mitigation statements were in the plans; Mr. Priest answered "yes." There being no further persons who wished to speak, the Mayor /Chairman closed the public hearing. Redevelopment Commission Vice Chairman William Ranney asked the Commissioners if there were any questions or any other deliberations they wished to undertake; Commissioner Renner posed a question relative to the Planning Commission resolution and deletions that he noted. Mr. Priest clarified that the deletions did not pertain to the resolutions that they would be considering. Commissioner Ranney offered Redevelopment Commission Resolution No. CRC83 -2 for adoption. Refer to Redevelopment Commission Resolution Book. REDEVELOPMENT COMMISSION RESOLUTION NO. CRC83 -2: A RESOLUTION OF THE COMMUNITY REDEVELOPMENT COMMISSION OF THE CITY OF ANAHEIM ADOPTING THE PROPOSED REDEVELOPMENT PLAN FOR THE RIVER VALLEY REDEVELOPMENT PROJECT AND JOINING IN WITH THE ANAHEIM REDEVELOPMENT AGENCY IN THE SUBMITTAL OF SUCH PLAN, TOGETHER WITH THE REPORT, TO THE CITY COUNCIL OF THE CITY OF ANAHEIM. Roll Call Vote: AYES: REDEVELOPMENT COMMISSION MEMBERS: Ranney, Doty, Oseid, Martinez and Anthony NOES: REDEVELOPMENT COMMISSION MEMBERS: Renner ABSENT: REDEVELOPMENT COMMISSION MEMBERS: Leo The Chairman declared Redevelopment Commission Resolution No. CRC83 -2 duly passed and adopted. Council /Agency Member Bay stated he had a comment before taking action. Relative to the subject Redevelopment Project, there was no comparison with Project Alpha either in dollars or size; however, it was important for the public to understand the major differences between the two Projects. The Redevelopment Law in the State had undergone a number of changes since they initiated Project Alpha and one of the changes that became very apparent on the subject Project was the mandatory 20 percent of the full tax increment to be allocated to low and moderate income housing outside of the Project. The Housing Department in Sacramento had pushed to get more and more allocations where there was a problem on low and moderate income housing. That was one of the basic differences. Estimates by staff indicated that another 23 percent of the tax increment would be going to other districts in the Project, leaving for the Plan 57 percent of the total increment. Across the 30 years, at approximately $1 million a year, they could count on roughly 55 to 57 percent of the money going into the Project. The benefits of the Project were many and varied for the citizens of the City, particularly in taking almost totally undevelopable land and making it developable for the good not only of the City owning Shorb Wells, but also providing more jobs in the industrial development that would occur. 83 -97 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY November 22, 1983, 9:30 A.M. Agency Member Roth offered Resolution No. ARA83 -46 for adoption. Refer to Resolution Book. RESOLUTION NO. ARA83 -46: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY FINDING THAT THE PROVISION OF LOW AND MODERATE INCOME HOUSING OUTSIDE THE RIVER VALLEY REDEVELOPMENT PROJECT AREA AND THE USE OF TAX INCREMENT REVENUES THEREFORE WILL BE OF BENEFIT TO THE PROJECT. Roll Call Vote: AYES: AGENCY MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None The Chairman declared Resolution No. ARA83 -46 duly passed and adopted. MOTION: Agency Member Roth moved to approve the report of the Fiscal Review Committee. Agency Member Overholt seconded the motion. MOTION CARRIED. Agency Member Roth offered Resolution Nos. ARA83 -47 and ARA83 -48 for adoption. Refer to Resolution Book. RESOLUTION NO. ARA83 -47: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY MAKING CERTAIN FINDINGS IN COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) WITH RESPECT TO THE ENVIRONMENTAL IMPACTS OF THE RIVER VALLEY REDEVELOPMENT PROJECT. RESOLUTION NO. ARA83 -48: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING THE REPORT TO CITY COUNCIL ON THE PROPOSED REDEVELOPMENT PLAN FOR THE RIVER VALLEY REDEVELOPMENT PROJECT. Roll Call Vote: AYES: AGENCY MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None The Chairman declared Resolution Nos. ARA83 -47 and ARA83 -48 duly passed and adopted. Councilman Roth offered Resolution No. 83R -451 for adoption. Refer to Resolution Book. RESOLUTION NO. 83R -451: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM FINDING THAT THE PROVISION OF LOW AND MODERATE INCOME HOUSING OUTSIDE THE RIVER VALLEY REDEVELOPMENT PROJECT AREA AND THE USE OF TAX INCREMENT REVENUES THEREFORE WILL BE OF BENEFIT TO THE PROJECT. Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 83R -451 duly passed and adopted. MOTION: Councilman Roth moved to approve the Redevelopment Agency's response to the report of the Fiscal Review Committee. Councilwoman Kaywood seconded the motion. MOTION CARRIED. Councilman Roth offered Resolution No. 83R -452 for adoption. Refer to Resolution Book. RESOLUTION NO. 83R -452: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MAKING CERTAIN FINDINGS IN COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) WITH RESPECT TO THE ENVIRONMENTAL IMPACTS OF THE RIVER VALLEY REDEVELOPMENT PROJECT. (including Statement of Overriding Considerations) Roll Call Vote: AYES: COUNCIL MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 83R -452 duly passed and adopted. ORDINANCE NO. 4463: Councilman Roth offered Ordinance No. 4463 for first reading. ORDINANCE NO. 4463: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING AND ADOPTING THE REDEVELOPMENT PLAN FOR THE RIVER VALLEY REDEVELOPMENT PROJECT. ADJOURNMENT - REDEVELOPMENT COMMISSION: Commissioner Doty moved to adjourn. Commissioner Oseid seconded the motion. Commissioner Leo was absent. MOTION CARRIED. (2:46 p.m.) ADJOURPZIENT OF THE REDEVELOPMENT AGENCY: Agency Member Roth moved to adjourn. Agency Member Kaywood seconded the motion. MOTION CARRIED. (2:47 P.M.) LINDA D. ROBERTS, SECRETARY