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RA1975/03/18ANAHEIM REDEVELOPMENT AGENCY 75 -15 March 18, 1975 (1 :00 P.M.) Council Chambers Anaheim City Hall PRESENT: Mrs. Kaywood, Mr. Seymour, Mr. Pebley, Mr. Sneegas and Mr. Thom ABSENT: None PRESENT: EXECUTIVE DIRECTOR: Keith A. Murdoch CITY ATTORNEY: Alan R. Watts SECRETARY: Alona M. Hougard REDEVELOPMENT DIRECTOR: Knowlton Fernald ASSISTANT0RDEVES,OE!MEN` , DIRECTUR::' Christian Hogen- FINANCE DIRECTOR: M. R. Ringer birk Chairman Thom called the meeting to order at 1 :00 P.M. MINUTES On motion by Mrs. Kaywood, seconded by Mr. Seymour, minutes of the Regular Meeting held March 4, 1975, and Adjourned Regular Meeting held February 25, 1975, were approved. MOTION CARRIED. PROPOSED AMENDMENT TO AGREEMENT WITH CITY OF ANAHEIM Rede- velopment Director Knowlton Fernald reported on proposed modifications to that agreement between the Anaheim Redevel- opment Agency and the City of Anaheim, originally dated March 20, 1973, wherein the Agency agrees to reimburse the City for the costs of the Redevelopment Staff salaries, plus a percentage of the overhead costs. One modification would delete the separate payment allocated for the City Attorney's Office staff, inasmuch as in place of additional personnel being employed in that office to handle the Redevelopment work, a special Counsel is to be utilized. The second modification would raise the overhead allocation from 10% to 15% of the total salaries plus fringe benefits, which amount to approximately 16 -2/3 %. In answer to question by Mr. Seymour, Mr. Fernald advised that the 15% overhead figure was suggested by the City Treasurer. Mr. Ringer further advised that there is no percentage set forth in the agreement; it was deleted at his request in order to avoid amending the contract each year, since the overhead rates will be re- determined by the City and the Federal Agency every year. Further discussion ensued, and Chairman Thom and Mr. Seymour were of the opinion that the contract should be amended to read that the indirect cost formula shall be that which is accepted for all other grants to the City. Mr. Fernald and Mr. Ringer indicated their concurrence. RESOLUTION NO. RA75 -26 Mr. Seymour offered Resolution No. RA75 -26 for adoption, amending agreement between the City of Anaheim and the Anaheim Redevelopment Agency as recommended by the Redevelopment Director, subject to the additional amendment suggested by Chairman Thom and Mr. Seymour. 75 -16 RESOLUTION NO. RA75 -26 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY ACCEPTING THE TERMS AND CONDITIONS OF AN AGREEMENT WITH THE CITY OF ANAHEIM AND AUTHORIZING THE EXECUTION THEREOF. Roll Call Vote: AYES: Mrs. Kaywood, and Mr. Thom NOES: None ABSENT: None Mr. Seymour, Mr. Pebley, Mr. Sneegas Chairman Thom declared Resolution No. RA75 -26 duly passed and adopted. ADJOURNMENT Mr. Sneegas moved to adjourn to Tuesday, March 25, 1975, at 1:00. P.M., in the Anaheim City Council Chambers. Mr. Pebley seconded the motion. MOTION CARRIED. ADJOURNED: 1:06 P.M. SIGNED: Secretary, Redeve opment Agency ANAHEIM REDEVELOPMENT AGENCY March 25, 1975, (1:00 P.M.) Council Chambers Anaheim City Hall .PRESENT: Mrs. Kaywood, Mr. Pebley (arrived 1:25 P.M.), Mr. Sneegas and Mr. Thom ABSENT: Mr. Seymour PRESENT: EXECUTIVE DIRECTOR: Keith A. Murdoch CITY ATTORNEY: Alan R. Watts SECRETARY: Alona M. Hougard REDEVELOPMENT DIRECTOR: Knowlton Fernald Chairman Thom called the adjourned regular meeting of the Anaheim Redevelopment Agency to order at 1:00 P.M. ECONOMIC JUSTIFICATION - PROPOSAL FOR ORANGE COUNTY HEALTH DEPARTMENT ADMINISTRATION BUILDING WITHIN PROJECT ALPHA AREA: (Proposal origi- nally discussed at the adjourned regular meeting of the Anaheim Redevelopment Agency, February 25, 1975.) Mr. Knowlton Fernald submitted an informational memorandum to the Agency Members prepared by Redevelopment Agency Staff Economist, Sybil Silverman, outlining the following economic justifications for the Orange County Health Department Administration building proposal: 1. Employment opportunities on -site - 81.4 man years for construction; off -site activities 170.0 man hours of labor. 2. Growth in services provided by the Health Department will result in 186 additional positions by 1979. Redevelopment Agency, March 25, 1975, Continued: 75 -17 3. Increased support for retail goods and services - incre- mental expected expenditure of $318,200 in taxable retail sales currently,.$483,050 by 1979. 4. Direct and indirect sources of revenue will result in incremental revenues totaling $3,464 per year at current levels of aervice, while ..-cessitating public service expenditures of $776 per annum, constituting a positive revenue /cost ratio of 4.45. Mr. Fernald related that a portion of this health facility already operates within the City of Anaheim at South East Street, and in fact the health services provided to the residents of Anaheim at this facility represents 12% to 18% of its case load for selected health services. Of the Orange County Health Depart- ment total employment, 234 individuals are employed at the Anaheim location and 183 at the Santa Ana location which provides primarily administration and central lab facilities. Mr. Fernald reported on the meeting held with the Board of Supervisors on this issue, specifically that they have determined they would purchase the State Farm building for use by other County Departments and concurrently indicated they very strongly feel they do need a new County Health building. The effect of this decision is that the strongest competition to the Anaheim Redevelopment Agency offer, in terms of price, has been eliminated since the County has decided to purchase it for other uses. TRANSFER OF AGENCY FUNDS: Mr. Fernald reported on the transfer of funds within the Redevelopment Agency budget, as recommended by the Community Redevelopment Commission at their March 19, 1975 meeting as follows: 1. Electronic calculator, Account No. 910 -67 ($1,200 under retail price because the machine is in receivership) $ 1,000 2. Miscellaneous office furniture and cabinetry, Account No. 910 -84 2,800 3. 'Xerox duplicating service, Account No'. 364 900 4. Storm drain improvement costs (account number as established by the Engineering Division) 76,975 The total amount of transfer requested and recommended by the Community Redevelopment Commission, therefore, is $81,675 from the Redevelopment Budget Item No. 937 -51 to the account numbers as shown above. Mrs. Kaywood inquired whether it is more or less expensive to contract with Xerox for duplicating services to which Mr. Fernald replied that if maximum use is made of the machine the cost is reduced to 2, cents per copy. The Community Redevelopment Commis- sion recommends that the Redevelopment Department install their own duplicating equipment, using Agency funds, since the Department is currently running between 6,000 and 9,000 copies per month which would amount to a cost of 3 cents-per copy on a Xerox 4000 machine. The increased convenience and efficiency of having the machine within the Department would more than off -set a 1 cent differential in cost. On motion by Mr. Sneegas, seconded.by Mrs. Kaywood, the Anaheim Redevelopment Agency authorized a transfer of $81,675 from Account No. 937 -51 to the various accounts shown above and for the purposes indicated. MOTION CARRIED. PLANNING SERVICES PROPOSAL - VTN FOR CANYON INDUSTRIA COMPLEX: Mr. Fernald submitted the recommendation from the Community Redevelopment Commission that the Agency approve a contract with VTN to perform a planning study in the canyon industrial area of Project Alpha. The fees submitted for this projected study are $26,000 for basic tasks and $5,000 for supplementary tasks. Mr. Fernald advised that this contract is set up in similar fashion to the contracts with other planning consultants, i.e., the consultant firm will bill on a time and materials basis, work- ing against these fees as maximum figures. 75 -18 Redevelopment Agency, March 25, 1975, Continued: Mr. Murdoch stated that in reviewing the proposed scope of work he noted that it deals with consolidation and analysis of data which, it would appear to him, the City already has in Develop- ment Services Department. He questioned whether the problem is that the data is not in usable form. Mr. Fernald stated that this point has been reviewed with both the Director of Development Services and Zoning Supervisor and that it is a matter of putting the information together so. that it is correlated and that a very small portion of the contract is related to the function of gathering information. Mr. Thom questioned if the material is available and merely requires assembling, then could not the City staff assemble it. Mr. Fernald advised that this would be done to the greatest extent possible, but would take additional staff to complete the entire job and further he would prefer the expertise of an engineer- ing firm such as VTN which could perform analyses of these pieces of information. Mrs. Kaywood moved that the decision on the VTN proposal be continued one week to allow the Agency Members time to review same. Mr. Sneegas seconded the motion. MOTION CARRIED. Mr. Murdoch suggested that it might be helpful to both Agency Members and staff if Mr. Fernald could obtain a sample of the anticipated end product which would demonstrate the consolidation and analysis functions proposed to be performed by VTN. EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT - DR. WILLIAM BRASHEARS: Mr. Fernald reported that the proposed agreement incorporates two minor changes to the original exclusive right to negotiate agree- ment with this developer but has been drafted as a new agreement. The changes are: 1) to delete reference to the City Hall Super - block area and 2) to substitute a new Exhibit "A" site plan which delineates the property involved in this exclusive right to negoti- ate. The new Exhibit "A" submitted shows site plan of property bounded on the north by Lincoln Avenue, south by Broadway, west by Harbor Boulevard and on the east a proposed street. Mr. Fernald related that the original agreement included terminology which suggested that by mutual consent of the parties involved the 'site could be moved to another location. During work performed subsequent to that agreement, the location on Harbor Boulevard was mutually agreed upon to be a better choice for Dr. Brashears' project in that it is a continuation of an existing business and financial center. It is also felt that it provides a more marketable location for the project given conditions as they are today and understanding that this would be one of the fore- runners of redevelopment activity. In reply to Mrs. Kaywood, Mr. Fernald indicated that the only effect on the property originally considered for this project by this change would be that there is no longer a developer interested which allows some additional flexibility in the planning process. Mr. Claude Pomeroy, 456 Mariposa, Anaheim, 92801, was recog- nized by the Chairman and advised that this proposal disturbs him in that it brings to the foreground the weakness, in his judgment, of the planning approach being. used. He stated that there.is no doubt about the value and desirability of the proposed site in this agreement, however, he wonders if this relocation would not be emasculating the downtown area structure by removing from the market this principal entry which is unquestionably the most valu- able property in the area. He voiced the opinion that this could prove to discourage other developers from looking at the rest of the City and might Piave the effect of thwarting redevelopment efforts. Redevelopment Agency, March 25, 1975, Continued: 75 -19 Mr. Pomeroy stated that his position is that the traffic gen- erated on Harbor, Lincoln, and Broadway will make this particular area a most valuable location for a number of uses, however, if it is earmarked for high -rise office buildings and the land is taken off the market until June whatever other planning is desirable cannot be considered until some definiti,,a action is taken on it in June. Therefore, no alternative uses will be planned and available. Mr. Thom advised that he considers this right to exclusive negotiation agreement conveys a right to negotiate and not to con- summate the proposal. He felt there is a worse danger in not doing anything at all. Mr. Pomeroy felt that the planning process of the master plan of the whole revitalized downtown area should be further towards completion prior to making this type of commitment on the land. Mr. Thom reiterated that he viewed this only as a potential commitment. Mr. Pebley entered the meeting. (1:25 P.M.) Mr. Fernald stated that when the Redevelopment Department initiated the planning process, it was pointed out that the consul- tants would be working with developers to incorporate their ideas in this process and this is an implementation of that concept. He stated that the agreement is an indication that the Agency is interested in the project and that the proposed location would be a good site for it. Mr. Sneegas inquired whether the approval of this agreement would render the rights to exclusively negotiate on the prior side null and void, and Mr. Fernald replied affirmatively. Mr. Sneegas stated that he would vote favorably, but reluc- tantly, to change the site in Dr. Brashears' exclusive right to negotiate since he personally feels that some concentration of effort is needed in the downtown core area originally considered. However, he feels it is far more important that some activity be initiated rather than its precise location. RESOLUTION NO. RA75 -27: Mr. Thom offered Resolution No. RA75 -27 for adoption, approving the agreement between the Anaheim Redevelop- ment Agency and Dr. William Brashears for exclusive right to nego- tiate on property located between Broadway and Lincoln, extending easterly from Harbor Boulevard. A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING THE TERMS AND CONDITIONS OF AN AGREEMENT GRANTING AN EXCLUSIVE RIGHT TO NEGOTIATE FOR THE REDEVELOPMENT OF CERTAIN REAL PROPERTY, TERMINATING A PRIOR AGREEMENT, AND DIRECTING THE EXECUTION THEREOF. (BRASHEARS) ROLL CALL VOTE: AYES: Mrs. Kaywood, Mr. Sneegas and Mr. Thom NOES: None ABSTAINED: Mr. Pebley ABSENT: Mr. Seymour Chairman Thom declared Resolution No. RA75 -27 duly passed and adopted. COMMUNICATION FROM CLAUDE POMEROY AND ASSOCIATES RE "STATISTICAL ANALYSIS OF THE ANAHEIM MARKET AREA Chairman Thom referred to communication received this date from Mr. Claude H. Pomeroy of Claude Pomeroy and Associates, 456 Mariposa, Anaheim, 92801, indicating that at the Council meeting of February 11, 1975, he presented to the City Council his report entitled "Statistical Analysis of the Anaheim i „ iarket Area” and that he has not to date received any comment on the report from the Agency /Council Members or staff. Mr. Thom inquired whether staff has read and evaluated this report and is prepared to comment on same. 75 -20 Redevelopment Agency, March 25, 1975, Continued: Mr. Fernald stated that this analysis was the subject of dis- cussion at a Community Redevelopment Commission meeting following which no action was taken. The Redevelopment Agency market con- sultants have been requested to comment on this report, and it is anticipated this will be forthcoming within the next 30 days. Mr. Pomeroy contended that at the meeting referred to by Mr. Fernald no definitive reference to his statistical analysis was made. Chairman Thom inquired whether Mr. Pomeroy would desire one - half to one hour at a regular Redevelopment Agency meeting to pre- sent his statistical analysis of the Anaheim market area to-the Agency Members, and upon receiving an affirmative reply, and with the concurrence of the Agency Members present, instructed staff to schedule time on the Agenda of April 15, 1975 at 1:00 P.M. for Mr. Pomeroy's presentation. REQUEST - ANA - MODJESKA PLAYERS - LOAN TO REFURBISH FORMER ZION LUTHERAN CHURCH INTO THE ANAHEIM CIVIC THEATRE: Request of the Ana- Modjeska Players proposing the negotiation of an interest -free loan in the amount of $5,000 to refurbish the former Zion Lutheran Church into the Anaheim Civic Theatre; further requesting permis- sion'to purchase 22 pews removed from said Church for $25. It was recommended by staff that if the Council /Agency Members agree with the concept of the loan that in lieu of a direct cash payment, the City would purchase materials and /or labor as necessary up to the $5,000 amount and be reimbursed by the Ana - Modjeska Players. Said request was considered by the Anaheim City Council at their meeting of March 18, 1975 and decision deferred, it being the feeling of the City Council that should such arrangements be made that the monies for same should come from Redevelopment Agency funds since the structure is location within Project Alpha. Mr. Murdoch reported that in the interim, he and the Chief Building'Inspector, Public Works Director and Parks, Recreation and the Arts Director have discussed the proposed remodeling of this structure from a Church into a community theatre and reviewed some of the problems involved. One of the concerns expressed is that the building, although it has been used as a place of public assembly and is a substantial structure,, was built prior to the Long Beach earthquake. The conversion from a Church, which used a minimum of-electrical service, to a theatre use requires struc- tural fortification to accommodate the heavy lighting fixtures. In addition, there is concern that the City review what the struc- tural requirements would be to bring the status of the building up to where it would have a reasonable chance of enduring earthquake damage. It is felt that although it may take a substantially larger amount of money to remedy the structural situation than originally anticipated, in the opinion of the Chief Building Inspector, it can be remodeled at lower cost than building a new structure for this purpose. It is proposed that the Ana - Modjeska Players be requested to work with staff and put together a floor plan and description of what their ultimate intent is as far as the conversion of the building is concerned. It is further requested that the Council/ Agency employ a structural and electrical engineer to investigate the present structure and draw up plans to accommodate the intent set forth by the Ana - Modjeska Players in concert with the City. Consequently, Mr. Murdoch noted it is necessary that the Council/ Agency Members make the determination as to whether or not they are sincere and serious about this conversion. F:e noted that the structure does appear to have the potential of being converted into a civic theatre and that the Redevelopment Commission feels this utilization would fit into the redevelopment plan, however, if the structure is to be retained, it should be put into appro- priate condition for productive use. Redevelopment Agency, March 25, 1975, Continued: 75 -21 Mrs..Kaywood pointed out that the question narrows down to whether the structure will be used at all or destroyed since she understood if it were going to be used for any public function at all, the electrical work previously authorized by Council would have to be done. She noted that she personally felt the building .s in too good - condition to destroy. Mr. Murdoch recommended that the Agency Members authorize a structural engineer to review the building and prepare a recommenda- tion on the necessary structural modifications. In connection with the previously approved electrical modifications in the amount of $20,000, there is an on -going activity in the structure at the present time and considerable plans have been made for future use and, therefore, this electrical modification should be completed as soon as possible. Discussion ensued during which Mr. Thom pointed out that he would like to convert the building and use it as a theatre provid- ing the price tag for accomplishing this is not prohibitive. Mr. Murdoch reported it would take approximately $2,000 in fees to review the situation and ascertain what the cost to fortify the structure will be. The Agency further determined they would prefer to be apprised of the results of the structural engineer's analysis before proceeding with electrical modifications. Mrs. Kaywood suggested that perhaps this inspection and review by a structural engineer should have been performed prior to allowing the Ana - Modjeska Players to proceed with the work they have already done since they have spent thousands of hours on the project. Mr..Sneegas stated that when the issue originally came up, since the structure is located in the Redevelopment Area, he thought this request was on the same basis as the Church lease, for an interim use. He stated that he would like to know the dollar figures as to the total cost of putting this building into a condition so that it will be usable 25 years now. However, if that dollar cost is too high, then he could not justify main- ] taining the structure. Mr. Fernald stated that it is very important to get a good assessment of what the building's problems are and what can be done to remedy these. He pointed out that this procedure will have to be followed for any building in the Redevelopment Project -Area which is considered for rehabilitation. Mr. Sneegas moved that the Redevelopment Agency authorize expenditure of not to exceed $2,000 for review of the former Zion Lutheran Church by a structural engineer with regard to earthquake safety and fortifications necessary for theatrical lighting and plans as formulated the Ana - Modjeska Players and City staff. Mr. Thom seconded the motion. MOTION CARRIED. Mr. Murdoch inquired whether it would be agreeable to the Agency Members if he contacted Mr. Floyd Weaver who has performed similar work for the City and contracted his services at a not to exceed fee of $2,000, subject to confirmation by the Agency at their next meeting, and all Agency Members present agreed. ADJOURNMENT: Mr. Sneegas moved to adjourn. Mrs. Kaywood seconded the motion. MOTION CARRIED. ADJOURNED: 1:55 P.M. SIGNED Secretary, Redeve pment Agency