RA1964/02/25REDEVELOPMENT AGENCY
February 25, 1964 (10:00 A.M.)
PRESENT: Mr. Chandler, Mr. Schutte, Mr. Krein and Chairman Coons.
ABSENT: Mr. Dutton.
PRESENT: CITY MANAGER: Keith Murdoch.
ASSISTANT CITY ATTORNEY: John Dawson.
PLANNING DIRECTOR: Richard Reese.
SENIOR PLANNER, URBAN RENEWAL: Clarence Dingman.
SECRETARY: Dene M. Williams.
MEMBERS OF URBAN RENEWAL ADVISORY COMMITTEE PRESENT:
Mr. Harry I. Horn, Chairman
Mr. James L. Morris
Mr. J. W. DeDapper
Mr. Morris Martinet, Jr.
Chairman Coons called the meeting to order.
MINUTES: Minutes of the meeting held November 19, 1963, were approved on motion
by Mr. Krein, seconded by Mr. Schutte. MOTION CARRIED.
Chairman Coons advised that the purpose of the meeting was to further
consider the report and recommendations of the Urban Redevelopment Advisory
Committee consisting of:
1. The employment of Victor Gruen and Associates to prepare a detailed
plan for the redevelopment of the center -city area.
2. The appointment of a separate Redevelopment Agency.
Further,at the request of the Redevelopment Agency, opinions have
been submitted by the City Attorney 's Office and Mr. Dingman, as to the
powers, duties and responsibilities of the Agency.
Chairman Coons advised than in his opinion, here again would be
an appointed committee given rather broad powers such as the powers of
Eminent Domain, Expenditure of Funds and Execution of Contracts, and would
be an appointed committee- beyo6d the reach of'the votere. It was'his further
opinion that all of the activities inherent by the Redevelopment Agency could
be accomplished by recommendations of an advisory committee; that final decisioi
and action should be that of the City Council, the only group directly responsi
ble to the voters.
Mr. Coons advised he would be opposed to the appointment of a
separate agency and that this stand was in no way a reflection on the Advisory
Committee, who in his opinion, have performed an outstanding service to the
City.
Mr. Chandler felt that the Advisory Committee's basic recommenda-
tion was that redevelopment be accomplished,and without reflection on anyone,
their recommendation was one of the methods by which it could be done.
Mr. Chandler further advised that in his opinion the employment of
Victor Gruen and Associates to make a detailed study and plan was the crux of
the matter,and that before he could intellingently vote,:he would have to'de-
termine in his mind that if the plan is drawn,the Council is committed to the
proposition and will follow through with a redevelopment program, using. the
power of Eminent Domain for this purpose that as of now, he was
not convinced that the Council would do this.
Mr. Krein advised that he would be opposed to contracting for another
survey unless there was an agreement'on two points ;`-6ne, the point made by Mr.
Chandler, will the City proceed with the redevelopment program; and secondly,
will the City Council sitting as an agency exercise the authority of
9
(2)
Redevelopment Agency, February 25, 1964 - Continued:
Eminent Domain. He personally doubted that they would.
Mr. Schutte doubted that redevelopment would be accomplished even
if the program was undertaken, and asked who would do the redeveloping.
Mr. Krein was of the opinion that the property owners themselves
could work out these problems, and personally knew private capital was
interested.
It was recognized that land assembly could not be accomplished without
the eventual use of condemnation.
Considering the cost of center -city property, Mr. Coons noted that
a developer takes into consideration the total economic re -use of the land,
and if controls were established permitting high -rise type of developments,
economic re -use could be obtained.
Mr. Coons referred to his former stand concerning the use of Eminent
Domain, and advised if a developer was successful in obtaining a sizable
percentage of an entire block for redevelopment,and it became an issue where
a very small amount of ownership prevented the project, in this case the use
of Eminent Domain, in his opinion, would be in the best interest of the entire
community. What percentage of property should be obtained before Eminent
Domain is considered, is another factor that would have to be determined.
Reference was made to a recent proposal for the redevelopment of
the 100 block of East Lincoln Avenue, wherein of the fourteen property
owners, eleven favored the proposal and the three property owners restrict-
ing the development represented less than five percent of the total value,
and two percent of the total land area.
As pointed out by Mr. Chandler, if the power of Eminent Domain is
exercised,firm commitments should be obtained insuring development.
Discussion was held concerning the advisability of obtaining the
study and plan proposed by Victor Gruen and Associates, for the purpose of
re- design and re- engineering of the sewer, water and power system, and for
the re- design of the traffic circulation to accommodate high -rise structures
whether or not the desired redevelopment materializes. Discussion was also
held concerning the present city staff undertaking this necessary planning
and engineering re- design
Planning Director Richard Reese and City Manager Keith Murdoch,
were requested to express their opinions as to the value of such study,
whether or not it is used as an official redevelopment program.
Mr. Reese advised that redevelopment of the center -city area whether
planned or unplanned, will require a study of this area and a complete under-
standing of the problems and potentials of the area on the part of the city
staff. That such study would be a direct assistance to the city staff;
further, the consulting team can bring a total package with alternative
means to accomplish the potentials as set out in the Economics Research
Association Report.
In addition Mr. Reese advised that such a report would be valuable
in budgeting and planning for long -range capital improvements; in his
opinion, the value of those reports already obtained has been very real;
they are used in discussions with_developers.and investors who are in-
terested in the downtown area. These reports have created interest and
have established confidence that Anaheim is concerned with the center -
city problems• Inasmuch as Anaheim is competing with all Orange County
cities for new development, this confidence obtained by prospective
investors is most important.
G:
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Mr. Chandler asked if the cost of the Victor Gruen Study would
be eventually expended should the re- design of subject area be_under-
taken by city staff, perhaps over a period of a few years,
(3)
Redevelopment Agency, February 25, 1964 - Continued:
Mr. Reese was of the opinion that far more than the cost of the
Victor Gruen Survey would be expended if the study extended over the next
decade. Mr. Reese stated that he felt the employment of this firm to make
the study would be the most efficient and economical method to gain the
needed information in order to reactito the present problems.
Mr. Murdoch advised that to relate the expenditure of funds for
information obtained in these studies to a specific dollar value to the
city at any given point in time, would be difficult if not impossible to do,
He stated that the two previous surveys, particularly the Economics
Research Associates Report has already resulted in some tangible results,
both directly to the city and to the attitude on the part of some of the
potential developers of the downtown area; the next step, as recommended by
the Committee, is the detailed plan, and in his opinion the most - advantageous
of the three studies. However the detailed plan could not have been made
without the two previous reports.
Mr. Murdoch reported that if the downtown area did not change,
it would not be necessary to make plans to change the physical facilities,
however, he felt certain that the downtown area would not remain as it is,
that is one and two story buildings primarily residential in character.
He stated the Economics Research Associates Study was most valuable con-
cerning anticipated changes, and the conclusions thereof most valuable in
planning physical services to accommodate anticipated changes.
Mr. Murdoch stated that if the City is to, instill in the minds
and the actions of potential developers the confidence needed, a positive
step must be taken to assure them that land assembly can be accomplished,
and that facilities will be available and that access to and from the
downtown area will be provided.
Mr. Schutte was of the opinion that multiple- family residential
could not be accomplished in the downtown area because of the high cost
of land; and further advised that he would support a large redevelopment
in the center -city area whether or not the Gruen report was obtained.
Mr. Chandler referred to other professional services acquired
to assist the City of Anaheim, and felt that the decision should be
whether or not the Gruen study and the expenditure of this amount of
funds for an aid to the administration of the city government should be
acquired, regardless of redevelopment.
Mr. Murdoch advised that the downtown area development is an
entirely different complex, and is a conversion of multiple - family re-
sidential and commercial enterprises into a potential of a very large
population to support a much heavier type of retail and other types of
activity.
Further, in his opinion assistance is needed to reach the proper
conclusions for providing the facilities that are necessary to do the job
that should be done in the downtown area, the alternative "to leave well
enough alone" will result in a piece -meal situation that has not been
successful in the past, and will also result in many duplications.
Mr. Reese agreed that there were developments that would take
place in the next couple of decades, whether the Victor Gruen report is
obtained or not, merely because of the geographical location and the value
of this area; however, the potential outlined..in, the Economics Research
Associates Report will only be accomplished if the city proceeds with the
necessary physical planning,and charts a course of action. In his opinion c
the Economics Research Associates Report represents 100 percent of the
potential development that could occur, he would estimate 15 percent to
20 percent of the potential would occur anyway, which would be far short
of the goal available to the City of Anaheim.
Mr. Glenn Fry, former City Councilman, was asked to express
his views and thereupon advised that he felt federal government assistance
(4)
Redevelopment Agency, February 25, 1964 - Continued:
should be obtained,thereby reducing the cost to the City of redevelopment.
Mrs. Barbara McEntee referred to former conversation with Mr.
Schutte, wherein she was of the impression that Mr. Schutte favored apart-
ment development in the downtown area. Mrs. McEntee asked if Mr. Schutte
had changed his position on this matter.
Mr. Schutte replied that eventually apartment developments will
occur but only when the land value of the center -city area is equalized with
the land values 9f the outside areas.
Mrs. Engelbrecht, Commercial and Industrial Realtor, addressed the
Council advising of a transaction wherein two large buildings were actually
sold twice to purchasers prepared to invest quite a sum of money to upgrade
the buildings, and because of advise received, and lack of encouragement shown,
the transactions were never consumated.
Further, in her opinion a definite stand should be taken as to
whether redevelopment will be accomplished on a wholesale basis or on a
partial basis, and a definite differential be established of those
buildings that can be refurbished and those possibly subject to con-
demnation.
Mr. Coons reported that a survey has been made by the Fire
Department, Electrical Department and others, regarding the feasibility
of bringing these buildings up to code requirement; that some of them
can be refurbished and some of them would be economically impossible. As
to whether or not a building can be re -used, could only be determined on
a total plan.
Mr. Krein stated that Mrs. Engelbrecht °s arguments were very
realistic, and those in this field were very much aware of the situa-
tion.
Mr. Jim McDonald, Real Estate Salesman, reported that a
client of his is interested in one of the main corners in the down-
town area, and he was asked to attend this meeting to hear the discus-
sion to determine possible action,
Mro McDonald further advised that his client is only interested
in making this large investment if the total plan is adopted.
Mr. Clinton Crocket verified the statements made by Mr. McDonald,
and advised that he represented the owner of property referred to.
Mr. Cliff Hunnel, owner of property, thought a definite plan
was long overdue, and that a development plan of the dowtown area should
of been formalized at the time shopping areas in the outlined districts
were commenced.
Mr. Schutte advised of the attempt made on the part of the
City to establish a parking district in the center -city area, recogniz-
ing parking to be essential to business.
Mr. Coons reported that a great deal of effort has been made
to encourage property owners to help themselves.
Mr. Ed Peterson, of Redwood Real Estate, reported that re-
development could mean potential investment of approximately 100 million —'
dollars, and to him the expenditure of approximately $60,000 for a
pattern or guide line would be ,justified.
Mr, Chandler felt that the question asked as to what the pro-
posal would encompass should be answered by a representative of the
Victor Gruen Associates, and suggested a continuance for that purpose
and also,as suggested by Mr. Schutte,to have some of the investors
personally express their position to the City Council.
(5)
Redevelopment Agency, February 254 1964 Continued:
Mr. Harry Horn referred to the request and recommendations of
the Committee, and further advised that as a City Council and Redevelop
ment Agency they have the power of Eminent Domain and authority to call
property owners to determine their wishes. In his opinion if this was
done, the City Council would find what the number of property owners
were, who were interested in forming corporations for'improvement of a
given area; for an example, taking a given block, it could be determined
whether or not there is any interest in perhaps developing a farmer's market.
At the conclusion of the discussion, it was moved by Mr.
Chandler, seconded by Mr. Schutte that this meeting be adjourned to March 3
1964 10:00 A.M., and that a representative of Victor Gruen and Associates
be requested to attend. MOTION CARRIED.
ADJOURNED: 12:05 P.M.
SIGNED: Z"'_ �1 , �'
Secretary, Redevelopment Agency
REDEVELOPMENT AGENCY
March 3, 1964 (10 :00 A.M.)
ADJOURNED REGULAR MEETING
PRESENT: Mr. Chandler, Chairman Coons.
ABSENT: Mr. Dutton, Mr. Schutte and Mr. Krein.
PRESENT: SECRETARY: Dene M. Williams.
Chairman Coons called the meeting to order and adjourned the
same for lack of quorum, advising that a future meeting will be scheduled
by the Secretary, Tuesday, March 24, 1964, at 10:00 O'Clock A.M.
ADJOURNED: 10:00 A.M.
SIGNED:
Secretary, Redevelopment Agency