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RA1994/02/15Anahein Civic Center, ANABEIN REDBVELOPMF.HT AGENCY FEBRUARY 15, 1994, 5 :00 P.N. PRESENT: AGENCY MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly ABSENT: AGENCY MEMBERS: None PRESENT: CITY MANAGER: James Ruth CITY ATTORNEY: Jack White SECRETARY: Leonora N. Sohl EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT: Lisa Stipkovich A complete copy of the agenda for the meeting of the Anaheim Redevelopment Agency was posted at 2:20 p.m. on February 11, 1994 at the Civic Center kiosk, containing all items as shown herein. Chairman Daly called the regular meeting of the Anaheim Redevelopment Agency to order at 5:24 p.m. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of $165,691.41 for the period ending February 11, 1994, in accordance with the 1993 -94 Budget, were approved. CLOSED SESSION: To confer with its Attorney regarding pending litigation pursuant to Government Code Sec. 54956.9(a) - City of Fullerton, et al. vs. City of Anaheim, et al., Orange County Superior Court Case 72- 36 -50. The Closed Session was held in conjunction with the City Council 3:00 p.m., Closed Session. ITEMS OF PUBLIC INTEREST: No items of public interest were addressed. PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments on Redevelopment Agency agenda items. CONSENT CALENDAR ITEMS 1 - 3: On motion by Agency Member Hunter, seconded by Agency Member Pickler, the following actions were authorized in accordance with the reports and recommendations furnished each Agency Member and as listed on the Consent Calendar Agenda. 1. 161: Receiving and filing Ordinance No. 5415 approving and adopting the Redevelopment Plan for the Commercial /Industrial Redevelopment Project. 2. 161: Receiving and filing Ordinance No. 5412 approving and adopting the Redevelopment Plan for the Brookhurst Commercial Corridor Redevelopment Project. 3. 112: Approving the Stipulated Judgment and executing the stipulation for entry of judgment, concerning Case No. 72- 36 -50, City of Fullerton, a municipal corporation; City of Fullerton Redevelopment Agency; Don Bankhead; and Robert E. Ward, Petitioners, vs. City of Anaheim; City Council of the City of Anaheim; City of Anaheim Redevelopment Agency; City of Anaheim Redevelopment Commission; and does I through XX, inclusive. 4. 121: HEARING - CONDEMNATION OF CERTAIN REAL PROPERTY INTEREST - 1007 AND 1007 1 4 E. BROADWAY: Finding and determining the public interest and necessity for acquiring and authorizing the condemnation of certain real property interests in real property located at 1007 and 1007 1/2 E. Broadway in the City of Anaheim. 94 -8 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY FEBRUARY 15, 1994, 5 :00 P.M. Submitted was report dated February 15, 1994 from the Redevelopment Manager, Rob ZurSchmiede recommending that the Agency proceed with said condemnation action. Letter dated February 11, 1994 was received from Mr. Kenneth Fisher, owner of the subject property requesting a 30 -day extension of the hearing in order to properly prepare to contest the resolution. Chairman Daly announced this is the time and place for the hearing on the proposed acquisition by eminent domain of certain real property interests required for road and public utility purposes relating to the property located at 1007 and 1007 % East Broadway, which property interests are legally described in Exhibit "A" of the proposed resolution attached to the Staff Report to the Redevelopment Agency dated February 15, 1994. He then asked to hear from staff. Lisa Stipkovich, Executive Director of Community Development. She first briefed the subject staff report which gave the history of the results of negotiations with the property owner which began in May, 1993, noting that to date, negotiations have been unsuccessful and settlement through continued negotiations is unlikely. In accordance with law, the property owner was given full notice of this hearing through registered mail received by him on January 28, 1994. It is critical for the property to be acquired by the Agency in order to comply with the development agreement with Kaufman & Broad. The entire area is scheduled to be made available for 152 residential units in downtown project ALPHA Development Area V. She is asking that the Agency consider going forward with this action this evening. Special Counsel is also available if there are any questions. Agency Member Feldhaus asked the basis for the extension request by the property owner. Lisa Stipkovich. The request for extension which she just received states that due to the fact that Mr. Fisher did not receive notice of the subject hearing until approximately February 1, 1994, he is requesting an extension of 30 days so that he can properly prepare to contest the resolution. She clarified that they have been in negotiations with Mr. Fisher since last July. Chairman Daly opened the public hearing inviting the owner of record of the described property or a designated representative to present testimony on any of the following issues only: 1. Whether the public interest and necessity require the project. 2. Whether the project is planned and located in a manner that will be most compatible with the greatest public good and least private injury. 3. Whether the property sought to be acquired is necessary for the project. 4. Whether the offer required by Government Code Section 7267.2 has been made to the owner or owners of record. 94 -9 Anaheim Civic Center. ANAHEIM REDEVELOPMENT AGENCY FEBRUARY 15, 1994, 5 :00 P.M. Mr. Ken Fisher, owner of the property at 1007 and 1007 'A East Broadway. He first asked if he was to understand that his request for an extension is being turned down. He asked for an extension and feels it is a reasonable request. He went to the library today and he could not find Section 7267.2 of the Government Code and is going to go to the main library tomorrow. He is also trying to find legal representation and 17 days is not enough time. He was hoping there would be more reasonable negotiations. He will hold his remarks until it is determined if he will get an extension. Duff Murphy, Special Counsel to the Agency. Under eminent domain law, the time of notice given to the property owner is sufficient. It is stated the owner must respond 15 days prior to the hearing to advise whether he intends to appear. The notice was given 20 days before this date. Under the statute, there has been adequate notice to this property owner of this hearing. Chairman Daly. He asked how long City staff has been in discussion with the property owner regarding acquiring the property. Lisa Stipkovich. She reiterated it has been since July. The property owner originally approached the Agency regarding acquisition of his property. The actual first offer was November 10, 1993 and the final offer made December 29, 1993. She also emphasized that no matter what happens tonight and whether the Agency moves forward or not, Agency staff still intends to negotiate with Mr. Fisher. It does not end formal or informal negotiations. They would still like to work with the property owner to try to resolve the issue. They would like the time clock to start the process so that they can look forward to a point in time where they could get this into the courts should it be necessary but she would prefer to negotiate a settlement with the property owner. Mr. Fisher stated he has been informed by real estate agents that there are certain legal precedents and decisions that he has not had time to research. He will address the other issues when and if he knows he has an extension. He cannot prepare in 17 days. City Attorney White. Staff is recommending the request for continuance be denied and the hearing proceed this evening. This does not preclude the property owner from contacting and hiring an attorney and preparing in the event litigation becomes necessary. Tonight the hearing is before the Agency and consideration of adopting a resolution of necessity. Four issues that are relevant for tonight's hearing are as outlined by the Chairman. Those should be what the testimony is directed toward. If there are other issues such as the amount of compensation as indicated by Mrs. Stipkovich, staff is willing and intends to continue negotiations. If those negotiations do not result in an agreement, the property owner or his legal counsel has the right to contest that through court action. He reiterated, staff is recommending that the Agency proceed with the hearing and that testimony should be directed at the four issues outlined. MOTION: Agency Member Pickler moved to deny the request of a 30 -day continuance of the subject hearing. Agency Member Hunter seconded the motion. MOTION CARRIED. Chairman Daly. The public hearing is still open. He invited Mr. Fisher to proceed regarding the four appropriate areas according to State law which primarily have to do with whether it is appropriate for the City to proceed to acquire the property. 94 -10 Anahei= Civic Center ANAHEIM REDEVELOPMENT AGENCY FEBRUARY 15, 1994, 5 :00 P.M. Kenneth Fisher. This is a rental property where he was getting $2,025 a month in rent prior to the City buying up all the property around him. Because he could not get any renters in there, he did contact the Agency. They made him what he considers a ridiculously low offer. At that time, they did not even go inside the property when they did the appraisal. They did not realize he turned the front house into two bedrooms, two baths - four bedrooms instead of one bath and two bedrooms. They subsequently came back and gave him another appraisal and this time did go inside the property. He turned that offer down. He asked for a little bit more and the Agency said no. He then relayed some of the discussion he had with staff along with questions he asked of them. He concluded that he has a property by his calculation that should be worth $246,000 but because of the mess the Agency made of the neighborhood, he had to lower the rent to $1,800 or now an approximate worth of $216,000. He understands the code says they have to give him the money he needs to replace that property with a like -type investment. He cannot do that and that is why he said no and asked for the extension because he wanted time to research the code section to get the exact point of law. Chairman Daly. As staff indicated, they will continue to be available and willing to negotiate. Kenneth Fisher. They sent him a final offer and they have not called him since. He called them and now they are saying they are willing to negotiate. He is willing to negotiate but wants honest negotiation based on what he was getting from that property as an investment. Chairman Daly closed the public hearing. Agency Member Daly offered Resolution No. ARA94 -1 for adoption. Refer to Resolution Book. RESOLUTION NO. ARA94 -1: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY FINDING AND DETERMINING THE PUBLIC INTEREST AND NECESSITY TO CONDEMN CERTAIN REAL PROPERTY INTERESTS IN REAL PROPERTY LOCATED AT 1007 AND 1007 1 h E. BROADWAY IN THE CITY OF ANAHEIM, AND AUTHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERTY. Roll Call Vote on Resolution No. ARA94 -1 for adoption: AYES: AGENCY MEMBERS: Feldhaus, Simpson, Pickler, Hunter, Daly NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None The Chairman declared Resolution No. ARA94 -1 duly passed and adopted. RECESS: Agency Member Daly moved to recess to 6:00 p.m. for a joint public hearing with the City Council. Agency Member Feldhaus seconded the motion. MOTION CARRIED. (5:41 p.m.) AFTER RECESS: Chairman Daly reconvened the Redevelopment Agency for a continued joint meeting with the City Council. (6:02 p.m.) D1. 123: CONTINUED JOINT PUBLIC HEARING - REDEVELOPMENT AGENCY /CITY COUNCIL ON THE FOURTH AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND KOLL ANAHEIM CENTER ASSOCIATES A 94 -11 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY FEBRUARY 15, 1994, 5 :00 P.M. CALIFORNIA LIMITED PARTNERSHIP WHICH SETS FORTH THE TERMS AND CONDITIONS OF THE SALE OF CERTAIN REAL PROPERTY WITHIN REDEVELOPMENT PROJECT ALPHA LOCATION /REQUEST: The Alpha Redevelopment Project Area is roughly bounded by Lincoln Avenue, Anaheim and Harbor Boulevards, Broadway, and Oak Street. The request is to consider the approval of the Fourth Amendment to the Disposition and Development Agreement with Koll Anaheim Center Associates, which provides for revised terms and conditions for the sale and development of certain real property. PUBLIC NOTICE REQUIREMENTS MET BY: Publication in Anaheim Bulletin — January 25 and February 1, 1994 The joint public hearing was scheduled and continued from the meeting of February 8, 1994 to this date. Submitted was report dated February 11, 1994 from the Redevelopment Agency asking that the public hearing again be rescheduled to March 1, 1994. City Clerk Sohl. Although the agenda indicates that staff is requesting a one -week continuance, they have changed their recommendation to two weeks, to March 1, 1994 since there is no meeting scheduled next week. MOTION: Agency Member Daly moved to continue the joint public hearing to Tuesday, March 1, 1994. Agency Member Simpson seconded the motion. MOTION CARRIED. MOTION: Council Member Daly moved to continue the joint public hearing to Tuesday, March 1, 1994. Council Member Simpson seconded the motion. MOTION CARRIED. ADJOURNMENT: Agency Member Daly moved to adjourn the Redevelopment Agency meeting. Agency Member Simpson seconded the motion. MOTION CARRIED. (6:05 p.m.) 902 LEONORA N. SOHL, CITY CLERK 94 -12