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RA1992/04/21Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY APRIL 21, 1992, 5:00 P.M. PRESENT: AGENCY MEMBERS: Simpson, Ehrle, Pickler and Daly ABSENT: AGENCY MEMBERS: Hunter 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 4:00 p.m. on April 17, 1992 at the Civic Center kiosk, containing all items as shown herein. Vice Chairman Daly called the regular meeting of the Anaheim Redevelopment Agency to order at 5:45 p.m. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY AUTHORITY in the amount of $209,908.72 for the period ending April 10, 1992 and $471,502.30 for the period ending April 17, 1992, in accordance with the 1991-92 Budget, were approved. PUBLIC COMMENTS - AGENDA ITEMS: Jeff Kirsch, 2661 W. Palais, Anaheim. He posed questions on Agency Items 2 and 4. (See discussion under those items.) ITEMS OF PUBLIC INTEREST: No items of public interest were addressed. CONSENT CALENDAR ITEMS 1 - 3: On motion by Council Member Pickler, seconded by Council Member Ehrle, 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. 123: Awarding a contract to the lowest and best responsible bidder, Environmental Control Systems, Inc., in the amount of $136,170 for the removal and disposal of asbestos containing building materials (ACBM) from 33 Agency-owned properties (Contract No. AR 92-1). 2. 123: Approving the revised Basic Concept Plan for the Anaheim Plaza site, and authorizing the Executive Director to negotiate an Owner Participation Agreement to redevelop the site. Submitted was report dated April 10, 1992 from the Community Development Department attached to which was a Concept Site Plan. Lisa Stipkovich, Executive Director of Community Development. The site plan is for Agency review at this time. The plan has been subject to a public forum before the Redevelopment Commission in conjunction with "RAP" - Residents for Anaheim Plaza - on April 6, 1992 at the site attended by approximately 500 people. The Concept Plan is just that. It does not in any way depict specific architecture or specifically identify any tenants or any economic deal to be approved by the Agency at this time. As part of the negotiations agreement executed with the owners, they are asking for approval of the concept. The owners will have to take that concept, market it and finalize tenants that they would then come back and identify. The Agency would then proceed to negotiate and summarize an owner participation agreement that would be very specific about the architecture, traffic issues, public area issues, tenants, and what the economic terms of the agreement would be. That agreement would then come back to the Agency for final approvals sometime 92-26 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY APRIL 21, 1992, S~00 P.M. in July, since there will also be an environmental impact review. She reiterated what the Agency is approving tonight is part of a negotiation agreement which required that the developer present a proposal. One was submitted in December which was unacceptable. The developer revised the proposal and submitted the subject plan which again went through public comment and was approved by the Redevelopment Commission. Comments from the various groups involved were generally positive. They wanted to see something accomplished with the site. Vice Chairman Daly asked how many additional opportunities the public will have as well as the Agency/Council to review the proposal, evaluate and discuss it. Lisa Stipkovich. At the minimum, there will be one additional opportunity. John Machiaverna, RAP. He read letter dated April 21, 1992 from the Chairman of RAP, L. Ward Wisemen, MD which listed the four goals of RAP relative to the Redevelopment of Anaheim Plaza as well as a request for the opportunity to offer further input as renovation proceeds. (The letter was submitted to the Agency - made a part of the record). The letter states in concluding that, "we look forward to a final plan which, by combining the best features of all existing types of mercantile systems with new and innovative ideas, leads to a community retail center which is original and unlquel" After comments by Agency Members relative to the Concept Plan and their hopes for the Plaza generally, Vice Chairman Daly stated that the Development Agreement that will be coming back in July will be the key document. Their action tonight encourages the developer to proceed and move quickly to llne up tenants. He is encouraged by CALSTR$ who finally appears to be ready to put tens of million of dollars into the mall. 3. 161: Approving minutes of the Anaheim Redevelopment Agency meeting held March 17, 1992. 4. 123: AGREEMENT WITH ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM (OWNER) AND BACE PLASTICS GROUPt INC. (TENANT) - APPROVAL OF CONSTRUCTION DRAWINGS AND LANDSCAPE PLANS: Submitted was report dated April 21, 1992 from the Community Development Department recommending approval of the subject along with background and discussion relative to the proposed agreement, the Utilities Department and the Agency participation along with an explanation of the economic benefits. Lisa Stipkovich, Executive Director of Community Development. As part of the Economic Development Program in Anaheim, the Agency is trying to work with existing businesses and have actually formed a partnership with the City's Utilities Department to retain jobs and businesses in Anaheim. It is necessary to be very competitive as a City and a State. This agreement is one of the more creative agreements they have entered into. It combines several departments and different opportunities. She then briefed the information contained in the April 21, 1992 report, the terms of the Utilities participation, the Agency obligation and the obligation of BACE. In concluding, she stated since the tenant is taking all the risk on the revenue, the Agency is not as concerned about any guarantees in terms of tax increment because they put the money out front and if it is not there, they do not get paid back. BACE is obligated to maintain at least 250 employees on the site. If they do not comply, they do not get the rebate. There are other obligations as well. In terms of sales tax revenue, it is difficult for a 92-27 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY APRIL 21, 1992, 5~00 P,M, company to guarantee that. It is not being used as a revenue stream to analyze the deal. The positive story is that they were able to find out what really were the key issues with the company. They wanted to stay in Anaheim but were being offered other opportunities that were extremely attractive. The Agency wanted to see how they could compete to keep them in Anaheim. The net effect is making it more cost effective for the company to stay as well as a utilities program that would lower utility costs and yet save the utilities money by being able to provide utilities at a lower rate. The bottom line is - they kept a company in Anaheim and prevented over 300 jobs from leaving the City. Vice Chairman Daly. He asked for an explanation one more time - the term of the agreement and what the minimum performance requirements are. Lisa Stipkovich. The term of the agreement is 11 years and 2 months. The Agency will not pay back any money unless the company meets all the conditions. The minimum requirements of the applicant as far as Redevelopment are that (1) the company moves into the new site, (2) puts 1.7 million dollars (combination between BACE Plastics and the owner) into rehabilitation and, (3) provides a minimum of 250 jobs for the duration of the 11 years. Relative to utilities, she does not know the specifics, but they would have to put in a thermal energy storage system and there is a payback over time to the owner because of the savings to the owner. There are also specific usage requirements. Public Utilities General Manager, Ed Aghjayan. He then gave the specifics relative to the Utilities aspects. The programs are intended to make the company more efficient in their operation by using less energy at peak and more at non-peak hours. That is the efficiency lighting program which is offered to other customers as well along with the thermal energy storage program. The only difference between the thermal eDergy storage program in this instance and what is now offered by Utilities, they have established a formal rate which the Council has approved at a slightly reduced level, $200 rather than $300, but reduces the KW rate from 4~ cents to 3 cents. The values of this program are available to all customers. It makes a company more efficient and able to better compete in the marketplace. Relative to the 12,000 Volt discount, Utilities offered a 4% discount and indicated they were considering increasing the discount from 4% to 6% which has been done. That is also offered to any customer who wishes to make the investment to have the 12,000 volt service, and in addition they pass that same increased discount to all 27 existing 12,000 volt customers. Mr. Mike Noggle, Chief Executive Officer, BACE Plastics. He thanked the Agency and Utilities for working with them. It was becoming increasingly difficult to run his company competitively in Anaheim and Orange County. They made the first call to the City to set up a contact and explain their concerns. They now have 350 employees and are continuing to grow and would like to do so in Anaheim. They understand it is not a special deal. They are having to take almost $2,000,000 to move to the new facility. It is a great investment in Anaheim. Their interest is not just their company but also other companies and what they can do to help retain business. Agency Member Pickler offered Resolution No. ARA92-9 for adoption, approving an agreement with the Orange County Employees Retirement System, BACE Plastics Group, Inc., and the City of Anaheim and also finding that the project is categorically exempt from the requirements to file an Environmental Impact 92-28 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY APRIL 21t 1992t 5~00 P.M. Report under the California Environmental Quality Act. Refer to Resolution Book. RESOLUTION NO. ARA92-9: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING AN AGREEMENT WITH THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM~ BACE PLASTICS GROUP, INC., AND THE CITY OF ANAHEIM; AND FINDING THAT THE PROJECT IS CATEGORICALLY EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. Roll Call Vote on Resolution No. ARA92-9 for adoption= AYES: NOES: ABSENT: AGENCY MEMBERS: Simpson, Ehrle, Pickler and Daly AGENCY MEMBERS: None AGENCY MEMBERS: Hunter The Vice Chairman declared Resolution No. ARA92-9 duly passed and adopted. MOTION: Agency Member Pickler moved to approve the construction drawings and landscape plans for the renovation of a 144,000 square foot facility located at 3125 Coronado Street, to be completed by the Orange County Employees Retirement System and occupied by BACE Plastics Group, Inc. Agency Member Ehrle seconded the motion. Agency Member Hunter was absent. MOTION CARRIED. RECESS: Agency Member Pickler moved to recess to 6:00 p.m. for a joint public hearing with the City Council, Agency Member Ehrle seconded the motion. Agency Member Hunter was absent. MOTION CARRIED. (6:16 p.m.) SWEAR-IN OF THOSE TESTIFYING AT PUBLIC HEARINGS: The City Attorney announced that it is appropriate at this time for all those intending to testify at any or all of the public hearings including staff be sworn in at this time. Those testifying were requested to stand by the City Clerk and asked to raise their right hand. The oath was then given. Vice Chairman Daly reconvened the Anaheim Redevelopment Agency, all Agency Members being present with the exception of Chairman Hunter. (7:00 p.m.) 123: JOINT PUBLIC HEARING - REDEVELOPMENT AGENCY/CITY COUNCIL - THIRD AMENDMENT TO HERITAGE PLACE DISPOSITION AND DEVELOPMENT AGREEMENT AND APPROVAL OF BASIC CONCEPT DRAWINGS: To consider a Third Amendment to the Heritage Place Disposition and Development Agreement (DDA) and approval of Basic Concept Drawings. The Third Amendment to the Heritage DDA was prepared to grant development rights to Kaufman and Broad for the construction of six for-sale townhome units on Agency property located on the east side of Olive Street between Broadway and Center Street (210, 220, 230, 240, 250 and 260 South Olive Street). Submitted was staff report dated April 10, 1992 from the Community Development Department recommending that the Council/Agency makes certain environmental findings relative to the subject proposal and approving the sale of the property subject to the Third Amendment to the Disposition and Development Agreement. Lisa Stipkovich, Executive Director of Community Development. She briefed the staff report noting that Kaufman and Broad is currently constructing 105 92-29 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AOENCY APRIL 21, 1992, 5:00 P.M. residential units in the downtown area of project ALPHA. The proposal tonight is to sell several lots to Kaufman and Broad that will allow the company to build six additional townhomes very similar to the townhomes under construction on Center Street. The Agency feels it is a convenient way to get a large developer to take on a small project. The developer is already in the area and will be using its current sales force and some of the same contractors to complete the project. The Agency is working on an overall neighborhood plan and this is consistent with that plan called Area IV. She further briefed some of the specifics of the proposal which were contained in the report. Tonight they are asking for the right to negotiate. There is another minor piece of the agreement which is a general agreement with Lincoln Properties and Kaufman and Broad for the entire Heritage Place project. They are asking for approval to sell some pine trees which were taken out of the site and saved. These would be sold to Lincoln Properties at $5,500 per tree and there are three trees. She then introduced Scott Menomi, Director of Development for Kaufman and Broad. Scott Menomi, Director of Development. He first answered Council/Agency Member Pickler that relative to the homes presently under construction, thirty-five of the homes have been sold of the one-hundred and five. Speaking to the subject amendment, it involves the addition of six townhomes on Olive Street one-half block south of the existing project, California Gables. They are proposing to construct the same six-unit craftsman style townhomes they are building at the California Gables project. They will sell the homes out of their existing sales office. He respectfully requested approval of the Third Amendment to the Disposition and Development Agreement and also approval of the basic concept drawings. Agency/Council Member Daly opened the public hearing and asked to hear from anyone who wished to speak; there being no response he closed the public hearing. Agency Member Pickler offered Resolution No. ARA92-10 and ARA92-11 for adoption, the first making certain environmental findings with respect to the Third Amendment to the Disposition and Development Agreement and the second approving a Third Amendment to the Disposition and Development Agreement by and among the Anaheim Redevelopment Agency, Lincoln Anaheim Village Limited Partnership, and Kaufman and Broad of Southern California, Inc. Refer to Resolution Book. RESOLUTION NO. ARA92-10: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY MAKING CERTAIN ENVIRONMENTAL FINDINGS WITH RESPECT TO THE THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG THE ANAHEIM REDEVELOPMENT AGENCY, LINCOLN ANAHEIM VILLAGE LIMITED PARTNERSHIPv AND KAUFMAN AND BROAD OF SOUTHERN CALIFORNIA, INC. RESOLUTION NO. ARA92-11: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING A THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG THE ANAHEIM REDEVELOPMENT AGENCY, LINCOLN ANAHEIM VILLAGE LIMITED PARTNERSHIP, AND KAUFMAN AND BROAD OF SOUTHERN CALIFORNIA, INC. Roll Call Vote on Resolution No. ARA92-10 and ARA92-11 for adoption~ AYES: NOES: ABSENT: AGENCY MEMBERS: Simpson, Ehrle, Pickler and Daly AGENCY MEMBERS: None AGENCY MEMBERS: Hunter 92-30 Anahe£m C£v£c Center~ ANAHg:.IM RI~D~..V~LOPMENT AGENCY APRIL 21, 1992, 5:00 P.14. The Vice Chairman declared Resolution Nos. ARA92-10 and ARA92-11 duly passed and adopted. MOTION: Agency Member Pickler moved to approve the Basic Concept Drawings for the subject project, Agency Member Simpson seconded the motion. Agency Member Hunter was absent. MOTION CARRIED. WAIVER OF READING - RESOLUTIONS: The titles of the following resolutions were read by the City Clerk. (Resolution Nos. 92R-78 and 92R-79 for adoption.) Council Member Simpson moved to waive the reading in full of the resolutions. Council Member Daly seconded the motion. Council Member Hunter was absent. MOTION CARRIED. Council Member Simpson offered Resolution Nos. 92R-78 and 92R-79 for adoption, the first making certain environmental findings with respect to the Third Amendment to the Disposition and Development Agreement and the second approving the sale of the property subject to the Third Amendment to the Disposition and Development Agreement by and among the Anaheim Redevelopment Agency, Lincoln Anaheim Village Limited Partnership, and Kaufman and Broad of Southern California, Inc. Refer to Resolution Book. RESOLUTION NO. 92R-78: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MAKING CERTAIN ENVIRONMENTAL FINDINGS WITH RESPECT TO THE THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG THE ANAHEIM REDEVELOPMENT AGENCY, LINCOLN ANAHEIM VILLAGE LIMITED PARTNERSHIP, AND KAUFMAN AND BROAD OF SOUTHERN CALIFORNIA, INC. RESOLUTION NO. 92R-79: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING THE SALE OF THE PROPERTY SUBJECT TO THE THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND AMONG THE ANAHEIM REDEVELOPMENT AGENCY, LINCOLN ANAHEIM VILLAGE LIMITED PARTNERSHIP, AND KAUFMAN AND BROAD OF SOUTHERN CALIFORNIA, INC. Roll Call Vote on Resolution Nos. 92R-78 and 92R-79 for adoption: AYES: NOES: ABSENT: COUNCIL MEMBERS: Simpson, Ehrle, Pickler and Daly COUNCIL MEMBERS: None COUNCIL MEMBERS: Hunter Mayor Pro Tem Daly declared Resolution Nos. 92R-78 and 92R-79 duly passed and adopted. ADJOURNMENT - REDEVELOPMENT AGENCY: Agency Member Simpson moved to adjourn,. Agency Member Daly seconded the motion. Agency Member Hunter was absent. MOTION CARRIED. (7:15 p.m.) LEONORA N. SOHL, SECRETARY 92-31