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RA1975/06/1775 -58 ANAHEIM REDEVELOPMENT AGENCY June 17 1975, (10:30 A.M.) Council Chamber Anaheim City Hall PRESENT: Mrs. Kaywood, Mr. Seymour, Mr. Sneegas and Mr. Thom ABSENT: Mr. Pebley PRESENT: CITY ATTORNEY: Alan R. Watts SECRETARY: Alona M. Hougard DEPUTY CITY CLERK: Linda D. Roberts REDEVELOPMENT.DIRECTOR: Knowlton Fernald RECREATION SUPERVISOR: Patsy Ray Chairman Thom called the meeting to order at 10:30 A.M. PROPOSAL - INTERIM THEATRE FACILITY (Submitted to Council Members were copies of Redevelopment Department staff reports dated June 2, June 11 and June 16, 1975, as well as Community Redevelopment Commissioners' comments from their meeting of June 16, 1975.) Mr. Fernald summarized the memorandums submitted and the pro- posal as set forth to the Redevelopment Commission, which is to: (1) acquire an existing building located at 318 West Lincoln Avenue, remodel this as a theatre for performing and other cultural arts uses, with a total recommended budget for acquisition and remodeling of $420,400.00 ($400,400 in Redevelopment funds and $20,000 previously approved by the City for electrical work at the former Zion Lutheran Church Sanctuary); lease this remodeled structure to the City so that the Parks, Recreation and the Arts Department could manage, operate and maintain the building, for a minimum period of two years, until needed for redevelopment. The second stage is a step towards a more permanent facility for a full Cultural Arts Center, and calls for a long -range program { which might appropriately include theatres, art galleries, museum, classrooms and storage. In this connection, the reports call for the approach to begin with the Agency contracting with architects to prepare a preliminary design and budget; the Agency designating a committee or commission to work with the architect and to prepare financing and implementation plan. Mr. Fernald indicated that the Community Redevelopment Commis- sion discussed this project with approximately 47 people in the audience representing many of the cultural arts- groups in the com- munity. All of these groups indicated they were in support of some kind of program to establish a cultural and performing arts facility, although there were some differences of opinion as to how to accomp- lish this objective. He reported that at the conclusion of the meeting, the Cultural Arts Commission voted 3 to 2 in favor of an interim facility; the Community Redevelopment Commission by a 4 to 1 vote recommended an interim theatre facility as proposed in Act II of the proposals submitted. Mr. Fernald advised that it is generally felt the theatre facility would aid the redevelopment Alpha area by encouraging people to come into the downtown area; and would afford the various cultural groups an opportunity to work together to make maximum use of the facility. I" Mr. Fernald pointed out that according to the architect's break- down, there is the possibility of saving $10,000 by not enclosing the port cochere portion of the structure as a lobby. This would provide an additional 4500 square feet of space which other activities could use either in conjunction with or independent of the theatre's operation. In reply to Mr. Seymour,.Mr. Fernald advised that Commissioner Morris voted in opposition and that nei;�hcr Commissioner Leo nor Commissioner Morris had any additional comments to offer. Redevelopment Agency, June 17, 1975, Continued 75 -59 During brief discussion with the Agency Members, Mr. Fernald advised that the acquisition cost of $280,000 is the Department's estimate, an appraisal has not been completed; that the proposed building has been judged structurally safe, is in very good condi- tion, is air conditioned and contains approximately 5500 square feet; that the Church of Anaheim presently occupies the building under a lease /option which has expired and they are attempting to vacate the building by June 30, 1975; that if relocation assistance by the Agency is required or necessary, $2,500 would be the.maximum. Mr. Sneegas stated that he would be very gravely concerned about the expenditure of this amount of redevelopment funds for a non - producing facility before any other redevelopment project which would yield some tax benefits is even in the planning stages. Mr. Fernald commented on the question of whether or not this redevelopment project should produce income. He noted that in redeveloping the downtown area, the Agency will do many things which will not specifically produce direct income, including the widening of streets and the creation of parks and plazas. He felt that a part of the problem which must be recognized in the redevelop- ment project is that there is the necessity to attract people back into the area and this is done by either creating facilities which offer new jobs or facilities which they will want to attend, either commercial or non - commercial. He felt this was a very appropriate kind of project for the Agency to be involved in. Mr. Thom stated that he has been supportive of a community center that would embody facilities for the cultural and performing arts, public meeting rooms, museum, etc., but the immediate problem is that this proposal calls for the expenditure of nearly one -half million dollars for an interim facility. He stated he feels a strong sense of responsibility to the Ana - Modjeska Players, however, this amount of money for a projected two -year interim facility is, In his opinion; not a judicious use of tax increment funds. Mr. Sneegas agreed and further pointed out that the remodeling of this building for a two -year interim facility might also preclude the use of that entire block for a permanent redevelopment project without requiring another large expenditure to again relocate the theatre facility. He pointed out that the Redevelopment Agency did establish a policy,to some extent, when they declined to purchase property at the corner of Anaheim Boulevard and Lincoln Avenue be- cause there was no specific redevelopment use for it at the time despite the fact that the Agency Members were aware it will have to be purchased at some time in the for street widening purposes. Mr. Sneegas also referred to the City's current budget delibera- tions and the fact that they are faced with economic problems and cutbacks in all areas. Mr. Seymour noted that in addition to the initial purchase of the building for $270,000, to provide this theatre facility would require an expenditure of $160,000 prorated over two years, or $80,000 per year for a facility which may be replaced in two years. He indicated that he wholeheartedly supports a cultural arts center or a theatre facility and perhaps at the proper time, redevelopment funds would be the vehicle with which to fulfill this community need. He voiced concern that if this activity should move into an interim facility, once located and operating it would be much more difficult to justify relocation to a larger, permanent facility. He also felt it should be considered that if a developer could justify the need for the property then the Agency incurs the respon- sibility to relocate the theatre and perhaps to create a facility that ideally would be ten times the financial dollars invested in this interim facility. Chairman Thom invited interested citizens in the audience to address the Agency. 75 -60 Redevelopment Agency, June 17, 1975, Continued Mrs. Betty Lillis, (a member of the Cultural Arts Committee of the Women's Division, of Commerce) indicated that she personally agrees there is a need for a performing and cultural arts facility and stressed that this facility should also include a museum. She felt that the City's leaders should look forward to the ultimate _ cultural and historical needs and not spend.redevelopment funds on this particular temporary facility at this time. Mrs. Vi Wheeler, 1417 Beverly Drive, Past President of the Anaheim Arts Council, stated that the Council's recommendations for a future cultural arts facility are included in Mr. Fernald's report. She noted that they are certainly behind a cultural arts facility in the future. She felt the present Cultural Arts Center provides adequately for arts and crafts, but there has been,no provision made for converting any portion of it for the performing arts. She voiced the opinion that the momentum engendered by the Anaheim Civic Theatre project warrants efforts to foster and preserve. Mr. Kent Johnson, Consultant for the Ana - Modjeska Players, noted that in 1968 he read an article in the newspaper that a Council was being formed for the express purpose of galvanizing ideas for a cultural center in the City of Anaheim, at which time he volunteered his services and now, seven years later, there is still talk of a civic cultural center but no actual facility. He voiced his concern that there will still be nothing but talk seven years from this date unless some positive step such as the proposed interim facility is taken. The effect of such an interim facility would be to coordinate and consolidate various group efforts, give the cultural segment a focal point upon which to concentrate so that their voices might be heard. It would also be a showcase for the cultural art groups, and when the time comes for the permanent facility, these groups will have amalgamated their efforts towards the type of facility which is required and the funding available. Mr. Seymour indicated that he concurs a permanent facility is needed and it is a high priority item. He stated that he did not wish his remarks to be construed as passing the responsibility on, but rather he felt that the differences lie in the approach and-hope- fully within this year there would be a program for redevelopment that would have vitality and be a program that all groups could rally around and work together to achieve. Mr. Johnson cited the large amounts of City utilized in such sport - oriented recreational amenities as tennis courts, golf courses, ball diamonds, etc., and noted that the amount of money which the City spends on these is disproportionate to that which is spent on cultural and performing art activities. He further cited that the Agency Members have recommendations favoring the interim proposal from their own staff, Commissioners and Consultants which should be carefully considered. Mrs. Kaywood stated that she is a charter patron of the Ana - Modjeska Players and was in on formation of the Foundation for the Cultural Arts Center, but has a great deal of difficulty in accepting what is being proposed at a cost of $420,000, when the project was originally budgeted at $20,000. She stated she has a very real fear that if this facility was to be remodeled and provided on an interim basis, it would not be interim at all but become permanent. She compared the situation with the City's lack of an adequate City Hall, i.e., once there is such a facility, although totally inadequate, it is difficult to convince the taxpayers that a more adequate structure is necessary. She advised she has heard this same remark referenced to the Horace Mann Cultural Arts Center. She voiced the opinion that the City.needs a civic center proposal for a city hall and a cultural arts center with a joint parking use. She felt that a less costly interim solution should be devised and efforts be done immediately to work towards a permanent facility to encompass.all of the arts. Mr. Johnson pointed out that it is important to consider the momentuia which Lhe groups now have and "hut some of these perform- ing groups will find it difficult to survive if no help at all is given them. Redevelopment Agency, June 17, 1975, Continued 75 -61 Brief discussion regarding the alternative locations which might be used by the Ana- Modjeska Players was held during which Mr. Johnson stated that the Loara Playhouse is totally inadequate for the needs of the Ana - Modjeska Players and schools are not available. Mrs. Kaywood suggested that the Fox Anaheim Theatre be contacted about the possibility of leasing that facility for performances. Mr. Johnson stated that he had looked at most of the buildings in the redevelopment area and that the costs for conversion of any suitable building were roughly similar to the proposal under discussion. Mr. Seymour suggested that further buildings be investigated outside of the redevelopment project area if necessary, indicating that he would be agreeable to put forth $20,000 to $40,000 towards the project, or even provide something on a rental basis, but did not think it necessary to spend as much money as was proposed to reach the objective on an interim basis. Mr. Thom left the meeting and Mr. Seymour assumed chairmanship of the meeting. (11:40 A.M.) Mr. Andy Deneau, Chairman of the Heritage Committee under the Cultural Arts Commission, reported that when he originally became aware of the proposal to utilize the former Zion Lutheran Church Sanctuary as a civic theatre, he offered the services of the Heritage Committee to evaluate the structure at no charge. When no request was made for these services, he felt it was a safe assumption that prior to significant further investigation would be made since this 55 -year old masonry building would not meet current Codes. He stated that he did not consider this to be an obstacle to its further use. He indicated that his Committee feels reasonably sure that the structure can be reinforced for a nominal cost and suggested this option be investigated further. Mr. Deneau further suggested that the City consider leasing the Sanctuary structure to the Anaheim Foundation for Culture and the Arts and they could undertake the refurbishing activity which would absolve the City's responsibility and relieve the operational problems. He indicated, in response to Mr. Seymour, that he felt the structure could be reinforced for between $25,000 and $30,000. Mrs. Kaywood noted that the cost for just electrical rewiring and lighting was estimated at $20,000 and the structure was not strong enough to support the- weight of the lighting equipment. A much figure was given as to the cost to strengthen the building. Mr. Deneau replied that a structural analysis was not a cost analysis and he felt there was insufficient investigation of the building to predict a cost figure. Mrs. Ruth Salaets speaking for the cultural arts of Anaheim, stated that she believes in equal opportunity and that some of the other groups in the City would like to be equally represented in their efforts to obtain such facilities as a cultural center and a museum. She voiced the opinion that the Agency Members should not act with haste in this matter and that more research is necessary before going to an interim facility. She felt the total community has not been considered and all those organizations concerned with such a cultural facility should be given the same opportunity as the Ana - Modjeska Players to present their comments to the Redevelop- ment Agency. Miss Patsy Ray, Recreation Supervisor, clarified that Mr. Kent Johnson was hired and his salary paid entirely by the Ana - Modjeska Players, and no funds have ever been allocated in this direction by the City. She explained the role and function of the Parks, Recrea- tion and the Arts Department in connection with the various community cultural organizations as well as the history of their activity with the Ana - Modjeska Players since the former Zion Lutheran Church Sanctu- ary was considered for remodeling and use as a theatre. She related that at the time the approval was received from the City Council to turn the Sanctuary into a performing arts facility, no further in- vestigation was made upon the use of the structure by the 75 -62 Redevelopment Agency, June 17, 1975, Continued former tenants, the Covenant Presbyterian Church, since the theatre would not essentially change the use of that building. She summarized the other available City and school district facilities and indicated the various reasons as to why these cannot accommodate the Ana - Modjeska Players. In reply to Mr. Seymour, Miss Ray indicated that she personally • is aware that the Heritage Committee offers building evaluation and inspection services, however, to her knowledge, Mr..Tom Barnes, President of the Ana - Modjeska Players, had not requested same or relayed the offer of the Heritage Committee to the Department. Mr. Seymour referred to Miss Ray's report dated May 27, 1975 on the chronology of events concerning the Anaheim Civic Theatre, which report indicated to him some implication that someone in the Parks, Recreation and the Arts Department had knowledge that perhaps this building was not structurally sound prior to the Council's commitment on same to the Ana - Modjeska Players. He inquired whether the actual memos or reports listed would support this indication. Miss Ray advised that she was not aware of any material which would support that statement, but noted that on numerous occasions it was openly indicated that the building was over 50 years of age and with the type of construction would not meet current building codes. Further, in preliminary discussions with the City Manager and City Attorney, it was indicated there was a life use of the facility and that within the risk - factor and the life use it was acceptable to continue in direction. She cited that there are numerous buildings in downtown Anaheim the same age as the Sanctuary structure which are still being utilized. Mr. Seymour inquired how certain .Miss Ray was of the figures given of between $100,000 and $200,000 to fortify the structure so that it would be structurally sound. Miss Ray replied that in a preliminary meeting and discussion of the alternatives open with regard to the building itself, Mr. Floyd Weaver indicated that the only portions worth saving were the floor and the roof structure, and it would be feasible to remove the ceiling and the wails and put up new ones. Another possibility was to gunite the entire exterior which would strengthen the structure, however, the build -, ing's architectural integrity and historical .significance would be lost. Both of these options had high costs and Miss Ray indicated she never heard a figure discussed of less than $100,000. At the conclusion of discussion, Mr. Fernald commented that he had been charged with the responsibility of initiating redevelopment activity and implementing a new City Department in a tight budget time. He stated that the purpose of redevelopment is to put together a comprehensive program for uses which will work well together. He stated that the ongoing performing arts activities in this City have no focal point, and he views these activities as very vital activities in trying to provide the catalyst which will encourage new investment in the downtown area. This project provides an opportunity to begin on something which is actually of modest cost if it will attract new investments. He stated that all of the public improvements which will ultimately be put in the downtown area will not necessarily have a direct economic benefit. Mr. Seymour stated that he could see two problems, a short -term problem of finding an interim facility at a reasonable cost; and a long -term problem of providing a permanent facility which is ample for the needs of all the City's cultural and performing arts groups. He stated that he felt the long -term objective might best be achieved by establishing a task -force with a broad -based representation from the full spectrum of cultural and performing arts groups to identify the needs, what the facility should be like, where it should be located, and how it will be financed. Mrs. Kaywood agreed, stating she also felt that something needs to be done immediately to provide a temporary facility for the Ana - Modjeska Players at a reasonable cost. Redevelopment Agency, June 17, 1975, Continued 75 -63 Councilman Sneegas stated that he could not visualize the citizens of Anaheim feeling that it would be advantageous to spend money on a project like this in the downtown area when the purpose of a Redevelopment Agency is to relieve the tax burden. He remarked that if, in the long run, a project such as this were coupled with another redevelopment project which would have positive tax incre- mental benefits, he would be more amenable to it. MOTION On motion by Mr. Seymour, seconded by Mr. Sneega -, the Anaheim Redevelopment Agency denied the proposal recommended by the Community Redevelopment Commission to remodel the former United States Bank Building, 318 West Lincoln Avenue, for use as an interim performing arts theatre, described as Act II in the redevelopment report. Mr. Pebley and Mr. Thom absent. MOTION CARRIED. Mr. Seymour felt it was further in order to ask the Parks, Recreation and the Arts Department to again seek realistic alterna- tives for a temporary facility and, further, that they be encouraged to work with Mr. Deneau and the Heritage Committee on further evalua- tion of the Sanctuary structure, since there is always room for an additional viewpoint. After discussing the positive and negative aspects of a task force with interested members of the audience, it was determined that Miss Patsy Ray would collect and submit a list of those organi- zations interested in having representation on a task force charged with the of laying the groundwork for a permanent cultural arts facility, to the City Council on July 8, 1975. From these lists the Council Members will determine which organizations should be represented and ask them to submit names for potential task force members. Mrs. Kaywood urged that the various cultural arts groups not , permit the same type of in- fighting to occur which lost the cause for the Orange County Symphony. She noted that all of the groups have the same goal, and they should keep this in mind and be realistic in recognizing that they will need to cooperate and make some compromises. ADJOURNMENT: Mrs. Kaywood moved to adjourn. Mr. Seymour seconded the motion. MOTION CARRIED: ADJOURNED: 12:30 P.M. SIGNED: Secretary,-Redevel ment Agency 0 75 -64 ANAHEIM COMMUNITY DEVELOPMENT COMMISSION June 17, 1975, (1:00 P.M.) Council Chamber. Anaheim City Hall PRESENT: Mrs. Kaywood, Mr. Pebley, Mr. Sneegas and Mr. Seymour ABSENT: Mr. Thom PRESENT CITY ATTORNEY: Alan R. Watts SECRETARY: Alona M. Hougard REDEVELOPMENT DIRECTOR: Knowlton Fernald DEVELOPMENT SERVICES DIRECTOR: Ronald Thompson Chairman Pro Seymour called the meeting to order, all Commission Members being present with the exception of Mr. Thom. ANAHEIM COMMUNITY DEVELOPMENT COMMISSION (ANAHEIM REDEVELOPMENT �ENCY /ANAHEIM HOUSING AUTHORITY Ci ty Attorney Alan R. Watts reported that Ordinance No. 3424 was now in effect establishing a Community Development Commission, which can sit as a Housing Authority or as the Redevelopment Agency. He recommended that the City Council establish meeting dates for the Housing Authority. On the recommendations of the City Attorney, Mr. Seymour moved that the Anaheim Housing Authority meet on the first and third Tuesdays of each month at 1:00 P.M. Mr. Sneegas seconded the motion. Mr. Thom absent. MOTION CARRIED. P ROPOSED A GREEMENT, DRAINAGE FACILITIES - PROJECT ALPHA (MIRALOMA AVENUE AND BLUE GUM STREET): The City Attorney reported on proposed agreement between the Anaheim Redevelopment Agency and the City of Anaheim, advising that a 10 -acre industrial park is to be developed at the corner of Miraloma Avenue and Blue Gum Street; the developer has contributed $25,000 towards the construction of drainage facilities at that intersection, which it is estimated will total $85,000. The Redevelopment Agency would fund the balance of said construction costs which would be reimbursed by other properties in the immediate vicinity as they develop. Redevelopment Director Knowlton Fernald reported that the Community Redevelopment Commission recommended the approval of the initial expenditure for the drainage facilities. RESOLUTION NO. CDC75 -30: Mrs. Kaywood offered Resolution No. CDC75 -30 for adoption. A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING THE TERMS AND CONDITIONS OF AN AGREEMENT AND AUTHORIZING THE EXECUTION THEREOF. ( Miraloma Avenue and Blue Gum Street) ROLL CALL VOTE: AYES: Mrs. Kaywood, Mr. Pebley, Mr. Sneegas and Mr. Seymour NOES: None ABSENT: Mr. Thom Chairman Pro Tem Seymour declared Resolution No. CDC75 -30 duly passed and adopted. RESOLUTION NO. CDC75 -31 - SALE OF REAL PROPERTY IN THE NORTHEAST IN DUSTRIAL AR EA, PHILADELPHIA GEAR CORPORATION OF CALIFORNIA: On report and recommendation by the City Attorney, Mr. Seymour offered Resolution No.- CDC75 -31 for adoption, authorizing the conveyance to Philadelphia Gear Corporation of California certain property, as previously authorized by Anaheim Redevelopment Agency Resolution No. RA75 -23 on January 7, 1975. Redevelopment Agency, June 17, 1975, Continued: 75 -65 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY AGREEING TO SELL CERTAIN REAL PROPERTY AND AUTHORIZING EXECUTION OF A DEED. (Philadelphia Gear Corp. of California) (Located generally on the north side of Miraloma Avenue, east of Sunshine Way and south of Miraloma Way) ROLL CALL VOTE: AYES: Mrs. Kaywood, Mr. Pebley and Mr. Seymour NOES: Mr. Sneegas ABSENT: Mr. Thom Chairman Pro Tem Seymour declared Resolution No. CDC75 -31 duly passed and adopted. INTRODUCTION - ROSARIO MATTESICH, HOUSING DIRECTOR: Mr. Fernald introduced Mr. Rosario (Rick) Mattesich, the City's Housing Director as of July 1, 1975. COMMUNITY DEVELOPMENT BLOCK GRANT APPLICATION - HOUSING ASSISTANCE PLAN (HAP): Mr. Fernald reported that application for Community Development Block Grants are due to the Department of Housing and Urban Development (HUD) prior to the end of the fiscal year. The proposed resolution and application are based on 300 existing units and 200 new units, with the total application being amended to reflect the changes in numbers. RESOLUTION NO. CDC75 -32: Mr. Seymour offered Resolution No. CDC75 -32 for adoption. A RESOLUTION OF THE ANAHEIM COMMUNITY DEVELOPMENT COMMISSION, ACTING AS THE ANAHEIM HOUSING AUTHORITY, APPROVING AN APPLICATION FOR FUNDS UNDER SECTION 8 OF TITLE II OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974. ROLL CALL VOTE: AYES: Mrs. Kaywood, Mr. Pebley, Mr. Sneegas and Mr. Seymour NOES: None ABSENT: Mr. Thom Chairman Pro Tem Seymour declared Resolution No. CDC75 -32 duly passed and adopted. ADJOURNMENT: There being no further business, Mrs. Kaywood moved to adjourn. Mr. Seymour seconded the motion. MOTION CARRIED. ADJOURNED: 1:28 P.M. SIGNED f Secretary, An im Community Development Commission