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1964/04/097691 City Halt,.An~heim, CalifgrDia -.COUNCIL MINUTES - April 9. 1964. 2:00 P.M. ADJOURNFD REGULAR MEETING The Joint Meeting of the City Council of the City of Anaheim and the Orange County Board of Supervisors was called to order by Mayor Coons, PRESENT: COUNCILMEN~ ABSENT: COUNCILMEN: PRESENT~ SUPERVISORS: ABSENT: PRESENT: SUPERVISORS: CITY MANAGER: Dutton, Chandler, Schutte, Krein and Coons None William 3o Phillips - Chairman, C. M, Featherly, David Lo Baker, William 3. Hirstein, Alton E. Alien None Keith A. Murdoch CITY ATTORNEY: Joseph Geisler DIRECTOR OF FINANCE: Douglas Ogden COUNTY DIRECTOR OF ADMINiSTRATIVE COORDINATION: David Hitchcock COUNTY COUNSEL: George Holden DF~oUTY COUNTY COUNSEL: Adrian Kuyper CITY CLERKt Dene M. Williams CLERK OF THE BOARD OF SUPERVISORS: Mabel E. Casteix Mayor Coons announced that this was a 3oint Meeting for the purpose of exploring the possibility of constructing a publicly owned stadium facility for sport activities, to serve Orange County. In noting the tremendous growth of the County in population, industry, education and recreation tourist amusement attractions, Mayor Coons advised that the one area lacking was a sports complex. He reported that it has been the opinion of many people for several years that in order to have a fully rounded economical situation in the County of Orange, something should be done to encour- age this activity; and many people over the years have been working towards this goal, including Mr. 3ohn McShane, Councilman of Buena Park, officials of the Cities of Fullerton and Santa Aha, and residents in the Yorba Linda area. Mayor Coons further advised that when it was recognized that the Los Angeles Angels might be interested in locating in Orange County, several sessions were held with Mr. Tallis, Business Manager for the Angels. The economic benefits, prestige and stature that would acquire to the entire County were evident, and at that time, Supervisor Phillips was contacted, and from that point the project became a joint venture. Mayor Coons stated that the 3oint Meeting was also for the purpose of receiving a Letter of Intent from the Golden West Baseball Club (Angels). Mro William Phillips, Chairman of the Orange County Board of Super- visors, noted the growth of the County from Two Hundred Sixteen Thousand popula- tion in 1950 to a population now in excess of One Million, One Hundred Thousand, with a projected Two and One-Half Million population by 1980. Mr. Phillips also recognized the complete cooperation existing between cities and the County, and felt it was incumbent on all to plan for all needs to serve the population. He advised that the proposal would be considered with a multiple-purpose approach:J; that perhaps the University of Irvine and the State College in Fullerton could utilize such a stadium, instead of spending tax funds at this time for a similar facility. He called attention to the fact that the proposed stadium would be centrally located to serve the entire County, and would be a part of the over-all master planning concept, which would be providing a County-wide benefit. Mr. Gene Autry, Chairman of the Golden West Baseball Company Board, and Mr. Robert Reynolds, President, were introduced and invited to address the 3oint Meeting. Mr. Autry advised that when the ball club was first formed, Mr. Walter O'Malley suggested that two major league teams should not share the same ball park. He also reported that their relations with Mr. O'Malley have always been friendly. Mr. Autry stated that the Angels were truly a Southern California team, as practically everyone with the organization is from the Southern California area; and according to their research, Orange County has substantiated the entertainment world in all forms (Disneyland, Knott~s Berry Farm, etc.); however it was their 7692 City Hall, Anaheim, Califgrnia - COUNCIL MINUTHS - April 9, ~964,. ~:00 P.M fUrther opinion that this was merely the beginning of what the future holds for Orange County in the coming ten years; In'conclusion, Mr. Autry advised that they would like very much to be associated with the County of Orange, if this could he accomplished to the mutual benefit of the County and the Angels. Mr. Autry introduced Mr. Robert Reynolds, President of the Golden West Baseball Club Company, and stated that he would back any statements made hy Mr. Reynolds concerning any committments he might make. Mr. Reynolds reported that according to their agreement with the Dodgers, they must now commit themselves to a term of two years or five year~. In their opinion, if a move is to be made, the time is now. Mr. Reynolds further advised that very early after the Angels were franchised, it became apparent to them that the various communities and indivi- duals in Orange County appeared to want the Angels to locate in this area. According to the surveys and studies made of this area, including their independent study, they felt certain Orange County was destined to be the hub of a great metropolitan complex, and would be a wonderful home for a major league baseball club. Mr. Reynolds reported that in their considered judgement, they can attract to this area One and One-Half Million spectators a year, and perhaps more, realizing that this would depend and he related to their performance in the field, In conclusion, Mr. Reynolds reported that through Mr. Walt Disney, a member of their Advisory Board, they were made aware of the existing cooperation between the communities and County; and through their own contacts, this existing cooperation has been a revelation. Further, in the final analysis, they were certain that this move would he a good one for the Angels. Mro Reynolds thereupon submitted a Letter of Intent, setting forth the terms and conditions upon which the Golden West Baseball Club would enter into a firm lease of a baseball stadium, together with a resume of prospective stadium lease. Said letter was read by Mayor Coons, and copies thereof furnished each Member of the Board of Supervisors and City Council. Mr. Autry advised that they would have no objections whatsoever to the publication of the terms of their agreement. Mr. Keith A. Murdoch, City Manager, reported that during the past several months, many sites for a possible sports stadium to accommodate major sports have been investigated for the Los Angeles Baseball Cluh, aswell as for other uses. Two sites have been finally selected, which the Los Angeles Baseball Club have indicated would he satisfactory for their purposes. Map indicating the location of the two sites was posted on the east wall of the Council Chamber. Site Number One, south side of Ball Road between the proposed Orange Freeway and State College Boulevard, to the south boun- dary of Cerritos Avenue. Site Number Two, bounded on the North by Katella Avenue and the Santa Fe Railroad, on the West by State College Boulevard, on the East by the proposed Orange Freeway and Santa Ana River, and on the South by Orangewood Avenue. Mr. Murdoch advised, since the current arrangements for the Angels' use of the Dodger Stadium carry them only through the 1965 Season, time for action was critical; that the time is extremely short to acquire a site, build and equip a stadium; further, condemnation action would be much too slow to meet this schedule, and for this reason an attempt was made to obtain optionson the key 7693 City Hall, Anaheim, California - COUNCIL. MINUTES - April 9, 1964, ~OO properties required for stadium construction, and. in so doing, it was found that there was approximately One Million Dollars difference in the estimated value of Site Number One and Site Number Two; therefore, he strongly recommended the acquisition of Site Number Two. Mr'. Murdoch stated that the assured participation of the Angels in this project appears to make the financing of the stadium possible without tax funds, except for the initial years. The reasonable expectation of average yearly attendance at Angel base- ball games onl~ would be approximately One Million, Five Hundred people. This attendance would provide approximately $640,000.00 per year to the facility for interest and ammortization. Anticipating additional sporting events, religious rallys, rentals and other events, should provide another $360,000.00 per year for ammortization, and these figures are felt to be reasonable estimates. With the reasonable revenue expectation, a Twenty Million Dollar venture could be ammor- tized at the end of thirty-five years. Mr. Murdoch further reported that they had been assured by at least one major contractor that a fifty-thousand seat capacity stadium, suitable for major league baseball and football, can he built for Sixteen Million Dollars, or less, and ready for opening April 1, 1966, if the project is commenced now. Mr. Adrian Kuyper, Deputy County Counsel, reported on the method by which the stadium could he brought to a reality, advising that two groups could he formed. First, an appointment of a five-man commission hy a joint powers agreement between the City and County, two members appointed hy each of the con- tracting powers, the fifth member selected hy the four appointees. The commission would he the entity that would actually operate the stadium and own the land, and in turn, would lease the land to a non-profit corporation, who would sell tax- exempt bonds for the purchase and construction of the stadium; after which the non-profit corporation would lease back to the commission the land and stadium for their operation; the lease to he a period of time identical with the life of the bonds, and in finality, when the bonds are retired, the commission under the control of the City and County would own the facility in fee, and continue to operate the stadium. Mr. Murdoch submitted a report summarizing the revenue effect, based on attendance ranging from One Million to Two Million, Five Hundred Thousand, Mro Douglas Ogden, City of Anaheim Finance Director, reported that during the past several months, the City of Anaheim has been in close contact with all of the major financial consultants operating in Southern California, concerning the financing of the Anaheim Auditorium and Convention Hall project; that since Tuesday they have been contacted again concerning the stadium project, and .all were unanimous that 'the investment community would he interested in purchasing bonds to finance the stadium. Further, the consensus of feeling was that an interest rate between three and three-fourths per cent and four per cent could be anticipated, if selling on today's market; however, the exact interest rate will depend on the legal documents, contractural arrangements, the money market, and the effectiveness of the financial consultant in representing the City and County° In referring to the method of financing, as reported by Mr. Kuyper, Mr. Ogden advised that this general type of financing has recently been used by the City and County of Oakland, County of Los Angeles for the construction of the new Music Hall, and many others for the financing of City Halls, jails, etc. He stated that the procedures are well defined; however, if this project goes ahead, it would be necessary to employ a financial, consultant at the earliest possible moment. Mr. Murdoch referred to two maps posted on the east wall of the Council Chamber, with the two considered sites noted thereon; one illustrating the arter- ial highway system and the close confluence of the greatest numbers of th~ major freeways running through Orange~County. He noted the locations on the map of the Newport Freeway, the proposed Orange Freeway, the Santa Ana Freeway and Garden Grove Freeway, which will connect the San Diego and Santa Ana Freeway to the area. The second map indicated other communities which attendees could be expected to any major league football or baseball games. 7694 Hall., Anaheim~ California - COUNCIL MINUTES - April 9, 1964, ~:00 " -Mr. Murdoch reported that sufficient options have been obtained in Site Number Two to construct the stadium itself, and provide considerable amount of parking, the remainder of the property to he acquired either hy eminent domain proceedings or negotiation; however9 it was critical to obtain action ~. so that property is not used for other purposes. Mr. Murdoch further reported on finances, in the event the City and County elect to proceed, stating that the City can make available, approximately Two Million Dollars to exercise immediate options; this amount to he returned when the bonds are sold hy the non-profit corporation, and will leave approximately $800,000.00 to he provided hy the County to complete the options necessary to start the project. He recognized that to make these amounts available requires a re-analysis of the budget, to determine what projects could he postponed to the next fiscal year. Mr. Murdoch advised that one of the options referred to expires tomorrow, and the other options expire Monday; that it is p°ssihle, however there was no assurance, that an extension on these options could he obtained. Supervisor Baker, noting the many engineering problems involved, asked if it was feasible to assume that the project could be completed by the April, 1966, Season. Mr, Murdoch replied, "Yes," and further advised that the time schedule has been reviewed by one of the major contractors~ experienced in this field, and in his opinion, completion of the facility could be accomplished within this period of time. Supervisor Baker asked what liability would be incurred, should the project not he completed within this period of time, and what would he the Angel's position. Mro Kuyper replied, concerning the liability, that this would depend upon the agreement entered into between the two entities, and an attempt would he made to set this out clearly in the agreement. Regarding the Angel's position, other quarte~s would have to he found, perhaps on a temporary basis. In answer to questions raised by Supervisor Allen concerning the con- struction contracts, bids and specifications, Mayor Coons advised that the awarding of the construction contract would be the responsibility of the non- profit corporation by either sealed bids or negotiation, in which plans and specifications could be required as a part of each bid. He further advised that the one firm contacted by the City of Anaheim was a major contracting firm, highly experienced in this field, and they would agree to submit a maximum cost to be adjusted on actual cost-plus basis; that the building program could be similar to that of Autonetics and Aero-Neutronics which were constructed on a more or less crash basis, with actual.engineering design performed in a field office, established on the site. Councilman Dutton asked if a premium would be indicated under a crash program of construction. Mr. Murdoch replied that as of now, the project has been discussed with only one contractor, and there was no premium for this time; however, it would require starting as soon as possible~ probably within the next ninety or one hundred and twenty days. Any delay could possibly require overtime, and would undoubtedly call for a premium. Councilman Krein asked if the contractor could be tied to any penalty in the contract with the Angels. Mr. Geisler replied that in his opinion, both the contract with the Angels and the contract for completion could contain a liquidated damaqe clause, perhaps based on the estimated amount per day that the stadium would not be available for use. The one contract thereby balancing the other. 7695 City Hall, Anaheim, California - COUNCIL MINUTES - April 9, 1964, 2:00 Supervisor Allen, considering the crash expectations of the program, even though the cost-plus basis would be subject to final audit, advised that the cost of the stadium could be considerably more than what the stadium would cost, built under a bid program. Mayor Coons stated that, according to the one firm that was contacted, the cost would not exceed the maximum figure agreed upon; that another thing to consider was the deadline date, April 1966, and if this schedule cannot be met, it might be best to abandon the project, as there was very little acreage of the size required to handle this type of a program, and the land could not be held for the three years that the Angels would be committed under their present contract. Mayor Coons was of the further opinion that the economic benefits to the County of Orange would justify the possible spending of additional money to get the Angels established in this area. Reference was made to the Minnesota Twins and their experience, after moving from Washington to St. Paul, Minnesota. Supervisor Allen, agreeing that to have the Angels located in this area would be a wonderful thing for Orange County, and for the purpose of explOr'- lng all economic business risks, asked who would be liable in the event revenues fell below expectations. Mr. Murdoch replied that there was no guarantee of any specific atten- dance, nor that any other events would be played in the stadium at any given time; the obligations to cover any deficit in any given year would be that of the two governmental agencies, the City and the County, on a percentage factor agreed upon, perhaps on a fifty-fifty basis. He further reported that the figures on which the analysis was made were conservative, and were ones well within attain- ment. Reference was made to experience of the Cleveland Indians over a twenty-three year period, and also of the Minnesota Twins, during the period after their move to Sro Paul, Minnesota. Supervisor Baker asked if they were being requested today to approve the project in principal, or in finality. Mayor Coons replied that they had hoped to explore the proposals suf- ficiently to determine if the Board of Supervisors and the City wished to enter into this joint venture, and authorize negotiations for the acquisition of the land, instructing the attorneys accordingly, so that refinement of the contracts and agreements can be made. Councilman Chandler, referring to the Landlord Rental Summary sub- mitted~ advised that assuming the first year's attendance to be One Million, Five Hundred Thousand, and considering the revenues and costs, a deficit to each governmental body would be approximately $166,755.00. In his opinion~ if this is considered a deficit, the income coming in to the County must also be con- sidered as an indirect benefit. Chairman Phillips referred to the report submitted on the economic impact of the major league baseball stadium on the local community, noting the experience of the Minnesota Twins, and advised that the City and County would receive back revenue in sales tax benefits. Supervisor Baker reported that the City would have the right to impose an admission tax, which the County would not have, and perhaps the basis of responsibility should be considered in the light of a more unbalanced percentage. Councilman Chandler stated that it was his understanding that this would be a County-wide benefit, and as such, the City of Anaheim would benefit as one single entity of the County. Supervisor Baker advised that when this becomes a non-profit organiza- tion, there will be no tax levy against it, and revenues derived to the County would be nothing; therefore~ their portion would require a tax levy against the remaining portions of the County° 7696 City Hgll, ~naheim, California - COUNCIL MINUTES - April 9, 1964. 2:00 P.M. Mayor CoOns advised that he personally would oppose an admission tax, and asked if it would be possible as a part of the joint venture agreement to establish the percentage on a fifty-fifty basis, unless the City of Anaheim imposed an admission tax, and at that time the percentage figure be re-negotiated, Mr. Geisler advised that this could be specified, and in addition, it could be specified that the sales tax acquired from the operation of the facility and an admission tax, if one were imposed, the proceeds from such tax could be allocated to this project, and the balance of any deficit be divided on a fifty- fifty basis. Supervisor Hirstein asked if this meeting could be continued until tomorrow, to allow additional time to study the proposal. Mr. Murdoch advised that this could be arranged, and that it might be possible to secure extensions on the options; that the owner of the property on which the option expires tomorrow was primarily interested in this being determined~ as the site, and that there be some indication that the project is looked upon favorably by the two governmental bodies. Supervisor C. M. Featherly agreed that the project was a progressive step for the community; however he also requested additional time to study the proposal. Councilman Krein stated, if an adjournment is considered, he wopld like to have the contractor referred to present for the purpose of answering any questions. Supervisor Baker advised that Supervisor Phillips had kept him informed on this proposal, but at this point felt he was in no position to make a decision. He further advised that he was willing to stay as long as necessary to get all information in order to make the decision. At the conclusion of the discussion, it was moved by Supervisor Hit- stein, seconded by Supervisor Featherly, that it be determined we are actively consiSering the proposal, and that Site Number Two would be the site selected, if it is decided to proceed; further, that this meeting be adjourned to reconvene at 6:30 P.M. tomorrow (Friday, April 10, 1964). MOTION CARRIED. On motion by Councilman Schutte, seconded by Councilman Chandler, it was determined that we are actively considering the proposal, and that Site Number Two would be the site selected if it is decided to proceed; further, that this meeting be adjourned to reconvene at 6:30 P.M. tomorrow (Friday, April 10, 1964). MOTION CARRIED. After further discussion, considering the appointments and schedules of those involved, it was moved by Supervisor Hirstetn~ seconded by Supervisor Featherly, that the previous motion to adjourn be rescinded, and that it be determined that we are actively considering the proposal, and that Site Number Two would be the site selected, if it is decided to proceedl further, that this meeting be adjourned to reconvene at 1:00 O'Clock P.M. tomorrow (Friday, April 10, 1964). MOTION CARRIED. On motion by Councilman Schutte, seconded by Councilman Dutton, the previous motion to adjourn was rescinded, and it determined that we are actively considering the proposal, and that Site Number Two would be the site selected, if it is decided to proceed; and that this meeting be adjourned to reconvene at 1:00 O'Clock P.M. tomorrow (Friday, April 10, 1964). MOTION CARRIED. 30URNm (4 10 City Clerk !