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RA1992/12/15Anahe£m C£v£c Cen~er~ AN~SXN I~D~P~ &~ENC¥ DEC~4B~R 15~ 199R~ 5~00 P.M. PRESENT: ABSENT: PRESENT: AGENCY MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly AGENCY MEMBERS: None 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 3:25 p.m. on December 11, 1992 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 5:45 p.m. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of $69,980.45 for the period ending December 11, 1992, in accordance with the 1992-93 Budget, were approved. PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments on Redevelopment Agency agenda items. ITEMS OF PUBLIC INTEREST: No items of public interest were addressed. CONSENT CALENDAR ITEMS 1-5: On motion by Agency Member Pickler, seconded by Agency Member Simpson, 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: Approving a First Amendment to Agreement with The Arroyo Group, extending the term of the agreement to December 18, 1993, for the design and planning of the Plaza Project Area and proposed redevelopment project areas; and authorizing the Chairman and Secretary to execute said Agreement on behalf of the Agency. 2. 123: Approving a Second Amendment to Agreement with 3DI, in the amount of $30,000 for construction administration and project management services (Koll Anaheim Center project); and authorizing the Chairman and Secretary to execute said Agreement on behalf of the Agency. 3. 123: Approving the terms and conditions of the General Depositary, Loan Origination and Servicing Agreement between Corporate Bank, the City of Anaheim, and the Anaheim Redevelopment Agency; and authorizing the Chairman, Secretary, City Treasurer, and Executive Director to execute said Agreement and related documents. 4. 161: Approving the exterior elevations, colors, and materials submitted for the subject project - River Valley Redevelopment Area, Sari Ranch, K-mart. 5. 161: Approving minutes of the Redevelopment Agency meeting held November 17, 1992. END OF CONSENT CALENDAR. MOTIONS CARRIED. RECESS: Agency Member Simpson moved to recess to 6:00 p.m. for a Joint Public Hearing with the City Council regarding the proposed Owner Participation 92-90 Anaheim Civic Centert ANAHEIM REDEVELOPMENT AGENCY DI~CEMBISR 1St 1992t 5~00 P.M. Agreement with the California State Teachers Retirement System. Agency Member Pickler seconded the motion. MOTION CARRIED. (5~46 p.m.) AFTER RECESS: Chairman Daly called the Anaheim Redevelopment Agency to order, all Agency Members being present. (6:50 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. D1. 123: JOINT PUBLIC HEARING - OWNER PARTICIPATION AGREEMENT BY AND BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND THE CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM AND CERTIFICATION OF THE FINAL SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR ANAHEIM PLAZA: Submitted were the following reports: (1) Report dated December 8, 1992 with attachments from the Community Development Department recommending that the Agency approve proposed resolutions pertaining to the subject along with approval of schematic drawings for redevelopment of the subject site and authorizing the Agency Executive Director to take actions necessary to fulfill the requirements of the agreement and, (2) Report dated December 8, 1992 from the Community Development Department recommending that the Council take certain actions relating to the subject agreement. (Also submitted was the final Anaheim Plaza project Environmental Impact Report dated December, 1992.) Also introduced into the record was letter dated December 15, 1992 from Keyser Marston Associates, I.nc. attached to which was report dated December, 1992 entitled Economic Analysis - Anaheim Plaza (made a part of the record). City Clerk Sohl. She announced that the hearing is not an advertised public hearing since such a hearing is not necessary at this point. However, she believes it is the intention of staff and the Council/Agency to allow the public to participate. Mayor/Chairman Daly asked to hear from those who wished to speak. Lew Overholt, 651 N. Dwyer, Anaheim. He is appearing as a resident to implore the Council/Agency to continue the hearing on this action in full or in part to give the residents an opportunity to receive adequate notice of the action being taken. There has been no opportunity for the residents to be notified. He understands that the Redevelopment Agency did telephone the Chairman of the group known as, Residents for Anaheim Plaza (RAP) but no communication came from him to anybody. He feels the impact of the action planned to be taken tonight, the approval of the owner/participation agreement, locks the City in an agreement that will affect the future of the parcel for the next 30 or 40 years. He reiterated, before final action is taken, that the hearing be postponed in full or in part to the next available meeting. He then confirmed for the Mayor that the public input portion be continued. He knows for a fact that the people who attended the two meetings held at the Plaza do not know what is happening tonight which is the ultimate act. Council/Agency Membe~ Pickler. He feels the two meetings referred to were the time for input from the people in the area. At those hearings, the majority 92-91 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AOENCY DECEMBER 15t 1992t 5~00 P.M. talked about going ahead with the plan being proposed. He attended one of the hearings. Everyone had an opportunity to state their thoughts. He feels it would be redundant to go through that process again. Lew Overholt. He was a member of the executive group that organized those meetings. That group did not have a position. The second meeting was long and drawn out and people got tired and left. The argument that the majority of the people, around 400, had approved the plan was not the case. Only 7 people spoke up. This is the body that makes the decision (Council/Agency). To not give adequate notice is ignoring the interest of the people who live in Anaheim. Chuck Cooper, Hickory Farms, 500 N. Euclid (Anaheim Plaza). He is present tonight to ask that the Council be unified in going forward with this program, one that he has fought for for the last seven years. He has to disagree with Lew Overholt. He and Mr. Overholt were the ones who had talked about forming a group of citizens to discuss the matter in the open. Big crowds attended the RAP meetings. He felt everybody had an opportunity to speak their peace and to hear what was being done. At the last meeting, they were shown what the proposed plan was going to be. He concedes that perhaps they did not like it and he is not saying that he likes it; however, this is the retailing change for the next century. They are not going to get a Nordstrom or a May Company. The big retailers are in trouble. The people making the money today are the Wallmarts, Mervyns, Cosco, etc. If they are going to wait another 10 years for a May Company or other department stores, they are going to sit there with nothing. Tonight they have the owners at the table. He reiterated tonight is the night for the Council/Agency to make the decision. The neighborhood has had appropriate and adequate opportunity to know what is happening. The decision to go forward is needed desperately. He is urging support of the plan and that a decision be made tonight. Mayor/Chairman Daly then asked to hear from staff. Lisa Stipkovich, Executive Director of Community Development. She first apologized for the confusion as to the status of the hearing tonight. It is not a public hearing but a joint meeting of the Agency and the Council to consider the items indicated on the Agenda. Secondly, they have been working with the RAP group from the inception of the Redevelopment process in 1990 and before that with the tenants in the mall who were extremely cooperative with the City in establishing the project as a Redevelopment area. There have been at least five meetings with the RAP group with the developer present. Two were very large and there were at least three other meetings with the executive committee where the developer went over the plans. Her understanding is RAP is not a lobbying group and they do not take any position formally. Staff assumed that the meetings that were held with the help of RAP was the best way of getting information out to the public as well as some newsletters that were done occasionally by Redevelopment to not only those who live in the area but anyone who expressed interest. As a result of those meetings, some changes were made to the plans. In the last meeting she attended with the executive committee, the developer accommodated the request of the neighborhood to a great degree. She felt there was some consensus building that the project would be acceptable to the community, not that they took any formal position. Relative to the action before the Council/Agency tonight, she would like the architect to review the overall plans for the project which were presented at the last RAP meeting and also presented to the Redevelopment Commission last 92-92 Anaheim Civic Center, ANAHEIM K~DEVELOPMENT AGENCY DECEMBER 15, 1992, 5~00 P.M. Wednesday which they approved and recommended for Council/Agency approval. Mr. Mike Strle from the O'Connor Group will then give his comments. Leesan Pomeroy, Architect, President, LPA Architectural Firm who is working on the project first explained how they developed a theme for the design and subsequently showed slides which depicted the plan as it exists today and briefed the three major components of the plan. He then deferred to Mike Strle. Mike Strle, O'Connor Realty Advisors, Los Angeles (O'Connor Group). He has been before the Council/Agency previously specifically in May of this year when the site plan was approved and were challenged to go out and secure approval on behalf of the State Teachers Retirement System who he is present to represent. In the beginning of November, he and Bruce McLeod attended a State Teachers Board ~eeting and received conditional approval to proceed on this project. They feel very good about the agreement. The State Board is committed to moving forward and have spent over one million dollars while the contingencies are being satisfied to move forward. They look forward to a positive vote this evening to not only move the project into next year, but also to satisfy the existing tenants remaining in the Plaza to begin the relocation process that they deserve. Lisa Stipkovich. The Owner Participation Agreement before the Council/Agency represents approximately six months of negotiations. An additional item they are being asked to approve are the actual plans which are included in the Council/Agency packets. Those plans will not be the final plans. They will be seeing additional levels of detail as the project moves forward and the Planning Commission will be reviewing the entitlement process. They will subsequently have to go through different approvals for zoning actions. She then briefed the salient points of the Owner Participation Agreement as well as giving a summary of the economic terms and conditions (see the Agency staff report dated December 8, 1992, from Richard Bruckner, Redevelopment/Economic Development Manager and attachment three - Summary of Economic Terms and Conditions as well as the Owner Participation Agreement). Following the foregoing presentation, a member of the public, Mr. Jeff Kirsch, 2661W. Palais, posed questions which were answered by Lisa $tipkovich. Additional members of the public then gave their input. John Machiaverna, J. Mac Jewelers, Anaheim Plaza. The reality is that Anaheim Plaza is now a haven for drugs and crime. If something is not done immediately, the community will continue to suffer. The Plaza cannot become a Main Place or a Brea Mall. Discount type stores continue to be profitable. Reality is that Wallmart is coming to Orange County. If something is not done to Anaheim Plaza, he feels they might as well start designing the apartment complex that will take its place. It is time to move forward. Anaheim has lost millions in tax revenues because Anaheim Plaza has not kept pace. Investment in its infrastructure is an investment in the future. It is imperative for the Council to approve the proposed resolutions tonight. There have been public hearings and many meetings. He then answered questions posed to him by the Mayor. There will be a place for his business in the new Plaza concept as long as the City allows people to return to that site. He feels the plans proposed are the way retail is going in the future. He urged that they move forward with the program. 92-93 Anaheim Civic Center, ANAHEIM P. EDEVELOPMENT AGENCY DECEMBER 15, 1992, 5500 P.M. Ann Lowe, South Citron, owner and resident in Anaheim. She is totally disgusted with the Anaheim Plaza and the way it has steadily deteriorated. It is poor management, bad attitude, no caring and slum lords. She is outraged that the City wants to give monies to the owners for improvements. She is interested in a first-class shopping center, not all discount stores that are going to bring it down. The group, NOVA, is also interested in upgrading and preserving the City's neighborhoods. She suggested that they ask Disneyland for marketing and research ideas. Further, before cormmitting dollars to the project, she asked that they consider replacing the management company. Chuck Cooper. He interjected and explained that there have been four management companies in the seven years CALSTRS (California State Teachers Retirement System) has owned the Plaza. He will defend everyone as doing the very best job they possibly could. It is not the management companies but the owners. The owners are now at the table. He again urged that now is the time to get the job done. Mike Strle, O'Connor Group. Over a period of eight months, using the best minds in the business they endeavored to generate interest from anchor department stores to restore the Plaza to its traditional nature. There was absolutely no interest expressed. The department stores have abandoned Anaheim Plaza and Anaheim. They have put together the best plan currently and for the future of Anaheim Plaza. The economics of the plan are such that they need to be reimbursed by the City as prescribed in the Owner Participation Agreement to make economic sense. Susan Kocsis. NOVA is interested in having a nicer City and one of the things they are interested in is Anaheim Plaza. No matter what they do to Anaheim Plaza is not going to help if they do not get rid of drugs and gangs. If they cannot get good quality merchants into the Plaza, large or small, people are still going to be traveling and bussed to other destinations to shop. There are many discount sro. res nearby but there is no Nordstrom, May Company or Robinsons. It does not have to be any one of these, but places where she can buy good quality merchandise nearby. Mayor/Chairman Daly closed the public meeting. Lew Overholt. He reiterated his request that the meeting be kept open and he does not believe the Council addressed that. He is concerned about the residents having an opportunity to know what is going on. Council/Agency Member Hunter offered Resolution No. ARA92-28 and A/{A92-29 for adoption. Refer to Resolution Book. RESOLUTION NO. ARA92-28: A P~ESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY CERTIFYING THE COMPLETION OF A FINAL SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR DEVELOPMENT OF THE PROPOSED ANAHEIM PLAZA PROJECT, MAKING CERTAIN FINDINGS AND ADOPTING A MITIGATION MONITORING PROGRAM. RESOLUTION NO. ARA92-29: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE EXECUTION OF AN OWNER PARTICIPATION ACREEMENT WITH THE CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM AND M/tKING CERTAIN FINDINGS IN CONNECTION HEREWITH. MOTION: Council/Agency Member Hunter moved to approve schematic drawings for redevelopment of the site; and authorizing the Agency Executive Director to take actions that ar~ necessary and desirable on the part of the Agency to 92-94 Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY DECEMBER 15, 1992, 5~00 P.M. fulfill the requirements of the Agreement. Agency Member Simpson seconded the motion. Before further action was taken on the Resolutions or the Motion, Mayor/Chairman Daly posed questions relative to the maximum Agency contribution to the project of 6.3 million dollars, future improvements to the Euclid Street interchange and some design aspects of the plan which were answered by both Leesan Pomeroy and Lisa Stipkovich. Council/Agency Members Pickler and Feldhaus also posed questions which were answered by Lisa Stipkovich. Council/Agency Member Pickler posed questions relative to the length of time staff had been working on the Plaza project subsequently leading to the proposed action tonight; Council/Agency Member Feldhaus inquired about the movie theatre and food court. Lisa Stipkovich. Recapped the sequence of events since the process started in 1988. Relative to the movie theatre, it is a film distribution problem as it is with the proposed theatre in the downtown area. They can get second run theaters but that does not seem to be the desirable alternative. There is nothing wrong with the location, but the distribution of films makes it difficult for anyone to get a theatre operator. Council/Agency Member Pickler. The City had been hoping for a regional center and the ideal would be to have stores like Nordstroms, a Macys or Bullocks. The management companies have tried to find those kinds of tenants but it is not realistic for Anaheim Plaza. He does not want apartments or condominiums built on that property but a project that will be of benefit to the City and its citizens. He feels the concept proposed will be that. Mrs. Stipkovich and Redevelopment have finally gotten CALSTRS to the point of an Owner Participation Agreement. Time is of the essence. Although he wishes there could be more time for people to comment, he feels they would hear the same things that have already been aired. The Plaza is at the point where something must be done now. He will be voting yes to assure that happens. Mayor/Chairman Daly. He believes the plan they have before them probably is the best plan they are going to get. Speakers have been very convincing on both sides this evening as well as over the past year. However, he believes it would be prudent to allow one final opportunity for the public to comment. Once the agreement is approved, it is locked in place for 25 years. The community has waited '7 years - it deserves one final opportunity to speak. They have not had a chance to have a say in the Council Chamber for some time. He attended the meetings at the Plaza and walked away with a feeling that there were conceptual plans but the mix of stores and the discussion of exactly what stores was left hanging. People did leave the meetings early. Many people all over Anaheim are concerned. He feels waiting three more weeks would be prudent. If he is outvoted and the majority want to proceed, he will pledge to work to make the plan a great one for Anaheim. He feels the plan is a good one as well as design, the landscaping and architecture. He has looked at other cities and feels they have been more aggressive with their shopping centers. He will be voting against the proposed actions since he believes there should be one more opportunity for public participation and comment. A vote was then taken on the foregoing Resolutions offered by Agency Member Hunter and carried by the following vote: 92-95 Anaheim C£v£c Center, AN~EIN RED~PI~N'f AGENCY DECEI/BER 15, 1992, 5z00 P.N. Roll Call Vote on Resolut£on Nos. ARA92-28 andABA92-2V for adopt£on~ AYES: AGENCY MEMBERS: Feldhaus, Hunter, Pickler, Simpson NOES: AGENCY MEMBERS: Daly ABSENT: AGENCY MEMBERS: None The Chairman declared Resolution Nos. ARA92-28 and ARA92-29 duly passed and adopted. A vote was then taken on the foregoing motion approving schematic drawings and carried by the following vote: All Ayes with Agency Member Daly voting no. WAIVER OF READING - RESOLUTION: The title of the following resolution was read by the City Clerk. (Resolution No. 92R-253) Council Member Hunter moved to waive the reading in full of the resolution. Council Member Simpson seconded the motion. MOTION CARRIED. Council Member Hunter offered Resolution No. 92R-253 for adoption. Refer to Resolution Book. RESOLUTION NO. 92R-253: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CONSENTING TO THE APPROVAL BY THE ANAHEIM REDEVELOPMENT AGENCY OF AN OWNER PARTICIPATION AGREEMENT BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND THE CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM, APPROVING THE PROVISION OF PUBLIC IMPROVEMENTS AND MAKING CERTAIN FINDING IN CONNECTION THEREWITH. Roll Call Vote on Resolution No. 93R-253 for adoptions AYES: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson NOES: COUNCIL MEMBERS: Daly ABSENT: COUNCIL MEMBERS: None The Mayor declared Resolution No. 93R-253 duly passed and adopted. ADJOURNMENT - ANAHEIM REDEVELOPMENT AGENCY: Agency Member Hunter moved to adjourn, Agency Member Daly seconded the motion. MOTION CARRIED. (8:39 p.m.) LEONORA N. SOHL, SECRETARY 92-96