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HA1999/07/13ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 PRESENT: CHAIRMAN : Tom Daly PRESENT: AUTHORITY MEMBERS : Frank Feldhaus, Lucille Kring, Tom Tait, Shirley McCraken ABSENT AUTHORITY MEMBERS : None PRESENT: CITY MANAGER : James Ruth SR. AS ST. CITY ATTORNEY : Cristina Talley SECRETARY: Lee Sohl EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT : Lisa Stipkovich ACTING POLICE CHIEF : Roger Baker A complete copy of the agenda for the meeting of the Anaheim Authority was posted at 4:00 p.m. on July 9, 1999 at the City Hall Bulletin Board; both inside and outside containing all items as shown herein. Chairman Daly called the regular meeting of the Anaheim Housing Authority to order at 5:43 p.m. FINANCIAL DEMANDS AGAINST THE ANAHEIM HOUSING AUTHORITY in the amount of $6,240.35 for the period ending June 28,1999 and $38,164.28 for period ending July 3, 1999 and $6,745.36 for period ending July 12, 1999 in accordance with the 1999-2000 Budget, were approved. ADDITIONS TO THE AGENDA : There were no additions to agenda items. ITEMS OF PUBLIC INTEREST : No items of public interest were addressed. 1. 161: (1 ) Adopting a Resolution approving a Negative Declaration for the Jeffrey Lynne Revitalization Plan, Cooperation Agreement and Affordable Housing and Neighborhood Revitalization Agreement; (2) approving the Jeffrey Lynne Neighborhood Revitalization Plan; and (3) approving and authorizing the Executive Director to execute and to take all actions necessary to implement the Cooperation Agreement and the Affordable Housing and Neighborhood Revitalization Agreement. RESOLUTION NO. A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Negative Declaration for the Jeffrey-Lynne Revitalization Plan, Cooperation Agreement and Affordable Housing and Neighborhood Revitalization Agreement (Jeffrey-Lynne Neighborhood). (Continued from the meeting of June 15, 1999, Items Hsg 1 and Hsg 2). Chairman/Mayor Daly. He first reconvened the Redevelopment Agency and Council Meetings and then asked staff to outline changes or revisions to the plan for the Jeffrey-Lynne Area. Lisa Stipkovich , Executive Director of Community Development. She will first clarify the different items before the Authority/Agency/Council tonight and then respond to the issues brought forth at the last hearing (see Housing Authority minutes of June 15, 1999 where there was extensive discussion and public input). The Housing Authority is being asked to adopt a resolution for a Cooperation Agreement also between the City, Redevelopment Agency and Housing Authority relating to the Jeffrey-Lynne (J-L) area. The Authority is being asked to adopt the Revitalization Plan which is a concept plan as well as approve an Affordable Housing Agreement and Revitalization Agreement. Regarding the City action, based upon input received and organized through the City Manager’s Office, joint recommendation between the Police Department, Code Enforcement, Planning and Community Development. If the plan is approved tonight, the recommendation is also to reinstate on-site parking for tenants on one side of the street and to implement that plan through the Code Enforcement Department. That is a change in terms of City action. Mrs. Stipkovich then briefed what has transpired during the last month. A number of meetings small and large have taken place with tenant groups, surrounding property owners, as well as discussions with some of the property owners in the area. She then presented a Power Point slide presentation – Jeffrey- Lynne Neighborhood Revitalization Project (hard copies of which were submitted to the Authority/Agency/Council and made a part of the record) addressing all the concerns raised at the last ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 meeting (see Housing Authority minutes of June 15, 1999) and to indicate some of the changes made in the proposal. full The issues were: (1) surrounding property owners concerned about implementation of the project area, (2) tenant concerns about displacement/affordability, (3) owners concerns about their participation options, (4) concern for potential loss of housing. The presentation addressed each of the issues with Issue 1 Mrs. Stipkovich briefing all of the items as submitted in the slides/hard copies : – showed Proposed Site Plan encompassing the Revitalization Project (emphasized the plan at this time is a concept plan – it is not the final plan to be implemented). Although not stressing the perimeter properties in terms of changing them physically, they did want full participation through CC&R’s, cooperation in gating the community, having it consistent looking and having the whole project work together. The Issue 2 Community Center is also a concept plan at this time. - Recommendation for a 10-member Advisory Committee not appointed by the Council (see pg. 4 of the submittal), Relocation and Anti- Issue 3 Displacement Plan. - Alternatives for Owner Participation ( CC&R’s and Beautification Grant, Issue 4 - Rehabilitation Loans, Land Lease, Sale of Property, Property Exchange). “Estimates” of Proposed Changes (Core Area). In briefing the data, she clarified there is a net loss of 74 units but a net gain of 380 bedrooms and also in square footage. Twenty-eight units are combined to create four- bedroom units; bedroom count increases by 308. Net square footage increase , 87,201 sq. ft. There will be some displacement of 60 to 80 households. Other items broached : Mrs. Stipkovich. If the Council approves the agreements tonight, everything is not over and done with -- it is not a “done deal.” She then briefed the data in the submittal – Additional Approval Needed Prior to Proceeding, Pg. 9. The developer needs to submit the application for tax credits by July 15, 1999. In order to do so, they must have an agreement with the City. She stated there are many other issues and matters that need to be resolved and reiterated/emphasized, it is the start of the process and not the end of the process. Mayor Daly then posed questions relative to a statement in the staff report, “The Cooperation Agreement would allow for the allocation of funding to the. The Housing Authority would proceed to acquire properties with Anaheim revitalization partners in order to implement the revitalization strategy for the Jeffrey-Lynne area as specified in the agreement. “ He asked what would need to happen between now and those acts of acquiring properties. Mrs. Stipkovich answered they have to find out if the tax credit allocation is approved and the developer would have to show evidence of financing for his conventional loan. In addition to that, she would have to make conditional offers based upon their having a sufficient amount of properties under control for the project to go forward. Pending those two things happening, financing and sufficient participation, those are the key issues. The other is the relocation plan. Mayor Daly. He surmised that further Council actions are needed before any properties are aquired and that there would be one or more opportunities for the Council to review the progress of the plan (relocation plan, participation by owners, etc.); Mrs. Stipkovich answered that was correct. In concluding, Mrs. Stipkovich recapped the points of the Jeffrey-Lynne Neighborhood Revitalization Project : Extensive Rehabilitation and New Construction of Units; Long-term Affordable Housing; Increase Number of Bedrooms (308) and Parking (165 spaces); Increased Open Space; New Community Center; Gated Community; Professional Management; Land Owned by Housing Authority; Ownership by Housing Authority of the project in 55 years; Repayment of Housing Authority Investment Over 35-40 years; Savings of $24,500,000 of local funds over 35 Years. Authority Member Feldhaus expressed his concern relative to the language the Mayor pointed out that if they approve the requested action tonight, the Housing Authority would proceed to acquire properties. He was assured this action tonight is merely to give authority to the staff to allow the applicant to apply for tax credit; Mrs. Stipkovich clarified it would give staff the right to negotiate but they could not close escrow and would not have any money to buy anything. They would like to be able to find out what some of the owners would like to do and seriously negotiate with them before any final action is taken and report back to the Authority/Agency/Council. They could also not do anything without a Relocation Plan. 2 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 Authority Member Feldhaus stated he would prefer the wording read – “If approved, the Housing Authority would proceed to negotiate with property owners” . . . (instead of, to acquire properties). Lisa Stipkovich . She does not have a problem with that; Mayor/Chairman Daly clarified that the language is contained in the Housing Authority Staff Report dated June 15, 1999, page 1, under the Discussion section (last sentence in the paragraph). Mrs. Stipkovich . She will ask the attorneys to review the langauage as the matter proceeds but clarified all staff would like is permission to negotiate and make contingent offers. Authority Member Feldhaus . Speaking to the Police Chief, he asked how he substantiates the costs associated for services to the Jeffrey-Lynne area since they have been told consistently it is a lot different place, the crime rate continues to go down with less gang activity, but the cost for providing Police services does not seem to decrease. Acting Police Chief, Roger Baker. The calls for service do tend to drop in the Jeffrey-Lynne area when there is a large Police presence mostly done by Community Policing teams followed by the Gang details. The average number of calls for service per reporting district in the City is about 91 calls per year. In the Jeffrey-Lynne area, there were 1,164 calls for the last 12 months. There is a cost index that they use for those calls for service plus the addition of about 5,500 labor hours to keep the calls down. Adding that together, it comes to about $500,000 which does not include all the time the Gang or Vice details spend in that area. There is also additional money involved that is not included such as the participation of Code Enforcement and others which he explained. If they devote anything less to the area, the calls for service continue to go up. Crime will continue to decline as long as they are devoting 5,000 to 7,000 labor hours to the area. If those hours are removed, then the crime rate escalates, not just the calls for service, but also Part I and Part II Crimes. He then answered questions posed by Council Member Kring wherein he explained/clarified that there has been some general decrease in crime in the Jeffrey-Lynne area as in other parts of the City but to a lesser degree in the Jeffrey-Lynne area. The area does not stand on its own even with programs such as Neighborhood Watch. Council Member Kring asked if it is a problem with the owners or tenants, or a combination; Chief Baker stated the responsibility would go first to the owners, then managers, and then the tenants. The Chairman/Mayor then opened the issue to comments from the public. The following people then spoke to the plan (a number having given input at the meeting of June 15, 1999 – see minutes that date), either in favor, in opposition, commenting in general, expressing concerns, and some giving recommendations. All comments are briefed/summarized. Seferino Garcia, 1233 Diamond, Anaheim – SOLEVAR Community Development. Relative to an Advisory Council, they thought it was going to be more along the lines of a Development Council to develop criteria that would satisfy the needs of the community. Linda Davidson, 1357 S. Walnut/ Pepperwood Village, President of the Homeowner’s Association. On July 6, 1999 Pepperwood held a meeting attended by 57 homeowners, tenants and City representatives. The City presented an overall plan (for J-L) and responded to questions and answers. After the meeting, a petition was circulated to the homeowners/tenants present ;their Board Members also walked petitions asking for signatures to support the J-L Revitalization Plan but amended to include the following: (1) Rehabilitation of all apartment buildings in the designated area. (2) Address the parking on Cerritos Avenue and Ninth Streets. (3) Find alternative housing for displaced residents. She thereupon submitted the petition (made a part of the record) containing 186 signatures urging that they address all the buildings in the project and to please get started. Pamela Pietras, Pepperwood Village Homeowner’s Association. She has found an additional funding source, that being the County of Orange, Housing and Community Development, Notice of Funding Application ( NOFA) for affordable housing in Orange County. Applications will be available from mid to late August. She has the information and a contact name. 3 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 Margaret Patino , 1243 W. Laster Ave., Anaheim. She submitted copies of a two-page letter (made a part of the record) listing concerns of the residents in her neighborhood (Walnut Neighborhood Council area) relative to Jeffrey-Lynne and which also contained recommendations. (The letter also noted that on June 21, 1999 a list containing approximately 55 homeowners was delivered to the Council showing support for revitalizing the Jeffrey-Lynne area.) As stated in the letter, “Our neighborhood favors a plan that would rid our area of sub-standard housing and blight.” Bob Ball, 1532 W. Laster, Anaheim. He urged Council approval of the plan. He is speaking for about 20 other people on the west end of Laster as well. The protection of their property values and the high rate of blight are their principal concerns. Bill Moynihan , 1507 W. Cerritos, Anaheim. He is concerned that what has been presented are “maybes” and “possibilities” but no concrete, firm conclusions on what is going to happen. He then referred to and read portions of recent newspaper articles regarding the plan and the principals involved. He concluded by asking, if the City is going to be a partner in the plan, what are the others going to give back to the City. Francisco Ceja , 1303 W. Lynne, Anaheim – Vice President, United Neighborhoods/ LULAC #316. Their organization will continue to take a very active role in advocating for the residents regardless of the decision made tonight. The residents directly affected must be included in the decision-making process. They must begin to tear down the walls of distrust because of the way that Jeffrey-Lynne residents have been mislabeled. George Savas , 1767 S. Heather, Anaheim. Apartment owners of Jeffrey-Lynne are incapable of bringing about the change so desparately needed. His fear is the Council will not take the step to bring about revitalization or that it will fall short of full revitalization including the perimeter. Consider what the right solution is for Anaheim and its citizens, not the J-L property owners. It is now time for the City to act with courage and vision for the future of Anaheim. He urged support of the plan. John Karczynski , 2432 W. Gramercy , Anaheim. He is Chairman of the Anaheim Redevelopment and Housing Commission but is speaking on his own behalf. He outlined the key elements of his concern which included the large amount of money spent each year by the City in that one neighborhood as well as the concentrated Code Enforcement effort and additional Police. He urged support and moving forward with the plan. Sam Jacolette , 18062 Irvine Blvd., Tustin , an owner in the J-L area. He has attended numerous meetings with Bill Witte and Lisa Stipkovich. He believes they cannot be taken seriously. At a June 22 meeting, Mr. Witte said he would never deal with or negotiate with Chris Sutton, the Attorney representing the owners. The owners are not being considered. He then relayed a remark made by Mr. Witte (“there is more than one way to skin a cat”) which he believes refers to the taking of properties through eminent domain. If that is the intent, it will lead to a legal quagmire. He requested that they review the plan. Jim Benson, 905 S. Lemon, Anaheim. He is concerned over the amount of public money being used for a private investment. He also explained what he feels will happen if they keep approving projects that reduce more units given the present rental housing “crunch”. He urged that they look at the issue with a more broader perspective. Abbey Silverstone, property owner, 1619 Ninth Street, Anaheim. He owns property on the perimeter but has never been notified by anybody except the Owner’s Association that this was occurring. They should have been notified first. He also urged that they talk to people who might not be totally for the project. Josie Montoya , United Neighborhoods/ LULAC . They have come to the conclusion that the plan is going to take place no matter if 400 people were present with petitions. They had gathered 500 signatures last time. Their position tonight is that they are going to be advocates. They are not going away and are going to make sure the tenants are treated fairly and justly. She is concerned that they are listening to people talk about the residents as if they are invisible. She then relayed some of the things that occurred since the last meeting (some Council Members accepted their invitation to come to Jeffrey-Lynne). She also commented on and challenged statements made about the high-cost of Police in J-L stating there is 4 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 no permanent policing assigned to the area. Residents can attest that days go by without seeing a patrol car. th Allen Baldwin, 1833 17 St., Santa Ana, Executive Director, Orange County Community Housing Corporation. Although the project is an excellent one, the sponsors superb, and justification has been given as to why it should be approved, the problem is, they do not have a normal housing market and have not for the 20 plus years he has been involved in the affordable housing issue in Orange County. The market has created the problem that exists with Jeffrey-Lynne residents. The difficulty is in approving a negative declaration and to determine where the families moving out are going to go in order to mitigate the impacts. The plan will be exacerbating housing in other projects. There are no vacancies at this time in Orange County. It will reduce population in the project, which is affordable housing, by at least 300, maybe as high as 1,000. Recommendations if the project is approved: (1) mitigate the adverse environmental impact by building no less than the number of units necessary to house the families dislocated from the Tiajuanita (Jeffrey-Lynne) neighborhood, (2) restrict the rents of the Tijuanita neighborhood to those affordable to families earning less than $20,000 a year and (3) resolve that citizenship status shall not be an issue regarding the re-housing of any families in Tiajuanita. If they oppose the plan, they should be directing staff to find a health and safety resolution. Rudy Stolman, owner in Jeffrey-Lynne (residence, 12682 Bubbling Well Road, Santa Ana). He has taken some pictures of a couple of buildings in J-L rehabilitated with some HUD money. There needs to be more such participation as well as programs used by other cities that use similar monies. The biggest problem is they are eliminating the owners and they are not ready to go. They would like to work with the City. (He thereupon submitted data entitled – Jeffrey Lynne – Possibilities with Owner Participation – which included photographs of projects accomplished with minimal City support.) Richard Ornales , Anaheim resident. His presentation covered a number of issues relating to affordable housing, property values in the area, etc. He noted that Jeffrey-Lynne sits on 31 acres across from Disneyland Hotel. The property is a “golden nugget ” and is perhaps worth $90 million plus. He feels it is disgraceful to take this property away from the owners. Delia Varela, speaking through an intrepreter. She is present to talk about forming a committee with organizations and different residents. It seems there are just a few residents. They want to have a lot of ears and eyes so the same thing will not happen to the residents (in J-L) as it did in the Citron project. They would also like for Lisa Stipkovich to be ready to relocate all the people when the time comes to move them but do not give less than 30 days as was also the case with the Citron project. She wants them to look and see all the parts not just the parts the sponsors (of the project) want them to see. She would be willing and would like to be a part of the committee. Jacob Felder . He and his wife own buildings in the Jeffrey-Lynne area. In the last year, the neighborhood has made tremendous progress relative to crime, gangs, drugs, run-down properties and bad appearance. (He then compared what happened in the past to the way things are in the present.). The appearance has been tremendously improved. Community Policing has done a terrific job teaming with Code Enforcement. They believe if they are left alone to continue and be successful, the private sector will continue improving the area for the benefit of all without spending millions of dollars in public money. th Liz Moyer , Jeffrey-Lynne property owner, 1600 9 Street, Anaheim. She addressed what the Owner’s Association has done in the last three years. If they can continue and also develop additional programs such as those in Tustin and Westminster to assist in helping their neighborhood, they will not have to go through with the proposed plan. She is opposed to the plan. A gentleman (name unknown) speaking through an intrepreter , stated he is speaking for the people in Jeffrey-Lynne. One of the problems is parking. Giving back the parking will resolve some of the problems in the community. Many people were unable to attend the meeting because of their jobs. He would like a meeting where flyers can be made so all can see what is going on. In reality, all the people affected are Spanish speakers and they are the ones who have the problem. John Huong, property owner, 1330 W. Lynne, Anaheim. He commented on some remarks made previously by Mr. Witte. If they are going to lose their property, they want to deal with a fair 5 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 businessmen. He is concerned they are using public money to assist in getting their (the owner’s) property. He emphasized , the owners are not slum lords. He also questioned why they want to put a housing project in the location when it is such a valuable location. It will make a lot more money for the City in the future if they put in another use. He is talking about money for himself as well. He clarified for the Mayor , he favors building hotels on the property and for the housing to go away. He suggested changing the zoning as a benefit to the owners and a benefit to everyone living in the area. Peter Kurionov , 300 S. Beach Blvd., LaHabra. He is the owner of two properties at 1623 and 1629 Walnut. He is speaking for the tenants and about humanity and compassion. He asked that they do the right thing in their conscience and their heart. Jose Perez, Owner. They are trying to enhance the area. He does not feel that Code Enforcement and the Police have been doing enough in the recent past. (He addressed the issues involved.) Vending trucks are the majority of contributors of trash around the area. David Cordero , Director of Public Affairs, Apartment Association of Orange County. Orange County is experiencing an affordable housing crisis. People are moving out of the County to other counties. Jeffrey-Lynne provides affordable housing to people who need it the most. The Revitalization Plan may be nice on paper but the impact will go far beyond Jeffrey-Lynne. Government should not be interfering in private property rights. He encouraged non-support of the Plan. Bob Omatry, owner, 1537 S. Hampstead, Anaheim. He also manages two other buildings on Hampstead (residence, 1102 Marjan, Anaheim). He believes in private property rights. Sixty-five owners have signed a proclamation opposing the Revitalization Plan. He urged that they get the local people involved. Linda Sain, 9422 Hazel Circle, Villa Park, owner, 1603 and 1607 Walnut. As owners, they feel they will not be compensated. They are being forced to sell when the market is coming back. More housing is needed and not less. They were not contacted or spoken to. The plan should be delayed another year until they get more information. Lucille Jesinani , 1529 S. Jeffrey Drive, residence at 834 E. Ferndale, Orange. The project is all concepts. She wants to hear something about the tenants – where would they go and how much money will they get and how much the landlord will get. Before they approve the plan, they have to have something conclusive. Joanne Stanton, 649 S. Roanne , Anaheim. The residents have seen the changes in the community and have worked diligently in different areas in the City to bring back positive programs. They were very involved with the Pepperwood condominium project in the 70’s. If the Walnut-Cerritos Owners Association had not gotten involved, there would have been over 550 condominiums built on only 38 acres. They have seen proposals come and go relative to Jeffrey-Lynne. They believe the proposed plan is a good start and, as Mrs. Stipkovich emphasized, it is just a start. She speaks for many of the homeowners in the area who would like to see the plan go forward. Judith Ann Gollette , 649 S. Roanne , Anaheim, WAND. Jeffrey-Lynne is not just a little area of the City. It involves a good part of west Anaheim. WAND has made a difference in the quality of life in west Anaheim. Input matters. She urged that they get together with the tenants, owners and the neighborhood. She wants something better for her neice who lives in Jeffrey-Lynne, for the other residents who live there, and for the owners and their property values. Because the developer is under a July 15 deadline to apply for tax credits , something needs to be done tonight. Manny Maroquin , 24731 Loscero , Mission Viejo . He is Deputy District Director for LULAC in Orange County and a member of United Neighborhoods of Anaheim. He has been involved in the Jeffrey-Lynne area for the last year. He then commented on his observations and things that have been disturbing to him. His primary concerns are the violoation of civil rights and lack of fair housing. (He elaborated on those two issues.) He subsequently urged consideration of all the facts and all the residents of the neighborhood. They are the citizens of the community – they are the community. 6 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 Hortensia Osario , resident/owner at 1319 W. Lynne. She is very much opposed and wants the plan stopped. It is a waste and it will displace people. Janet Irwin, 1543 S. Hampstead , Anaheim. The whole area is getting much better. The people who live there control their own lives and no one should be trying to control them. Mayor Daly. The public input is now concluded. He asked to hear from staff. Lisa Stipkovich . She will respond to one issue and then have Mr. Witte speak. Council Member Feldhaus asked earlier regarding a statement in the Housing Authority staff report of June 15, 1999 (which was not the current staff report) where it stated the Authority would proceed to acquire properties. That is changed to “would proceed with negotiations to acquire property.” She wanted to clarify that for the record. She has talked to the attorneys who worked on the agreement and the agreement does not have that specific language, i.e., acquire properties.) They could not do anything or proceed until a relocation plan was approved in any case. Mr. Bill Witte , Partner, The Related Companies of California, 18201 Von Karman, Ste. 400, Irvine, CA 92612. He explained there are several mechanisms in the agreement which are called performance criteria. The first is, the success of any development is measured over the long term and in a case like this, property management is the best way to assure that success. There are a number of places in the agreement that give the City the authority to intervene if a determination is made that the property management is not up to par. It is unusual, although they accept it. Secondly, the $24 million in private money in return for tax credits requires those investors to stay as a limited partnership in ownership for at least 15 years. The thrid control, unlike most property, their partnership would not be able to share in any of the cash flow flowing from the development if approved until after 15 years at which point there would be some sharing with the City. It is a repayment of the City’s loan over time. (He briefed the details). Mr. Witte then also responded/rebutted/defended some of the comments made relating to him and things he had said, why he said them and in one case explaining a comment that was totally misinterpreted since it meant the exact opposite. He also noted the statement was made that Mr. Sutton represents all of the owners which comes as a surprise to him. Since the last meeting, he ( Witte) has had numerous calls from various owners who have said they want to sell. There are a lot of different circumstances and, if approved, their intention would be to try to fashion a consensus that would satisfy those circumstances. Lisa Stipkovich . To reiterate, there were many owners who spoke, many on the periphery, and they (staff) would like to see them participate in some way. They talked about rehabilitation grants and beautification, yet some of the owners were implying that were talking about acquiring their property. That is not the case. They do not know the answers to everything either on relocation, on a final plan , how many owners are willing to do what, exactly what properties should be acquired and which should not. Those would have to come back to the Authority in a final form for a relocation plan and an overall concept plan that would possibly have to be revised. They want to work with all the tenant groups. That is what the tenant Advisory Committee is about. It is not just about relocation, but the overall project planning and social programs that would be involved. Authority Member McCracken . People are looking form something specific but that can’t be done until the first step is approved. If the developer cannot get any tax credits , nothing is going to happen. They would have to start over or try something else. She very much cares about the neighborhood having lived there 30 years ago. The property has not held its own. The City is committed to residential. They would be remiss to change this to a hotel and have thousands of people displaced. If they approved the concept tonight, they can go forward but even in doing so it is not “written in stone.” (Mrs. Stipkovich reiterated the steps/actions that would take place if the plan is approved tonight – see submittal. She also answered additional questions posed by Council Members Feldhaus and Kring.) Mayor Daly. In the interest of reaching a conclusion to what has been a long hearing this evening as well as the previous hearing on the same subject (see minutes of June 15, 1999), three actions need to be voted upon this evening under the Housing Authority, Redevelopment Agency and Council. He is going 7 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 to be offering the Resolutions/actions in support noting, however, that Authority/Agency/Council Members may have comments. The following is a summary of Authority/Agency/Council comments: Authority Member Kring . This has been a “heart wrenching” process with just as many people supporting the plan as opposing it. Property rights are at the heart of the Constitution. As good a project as this sounds, she would like to put it on hold for a year. She would like the owners in nine months to a year to come up with a Homeowner’s Association, CC&R’s and to see the project under one management. It is necessary to have one management company only. They also need to have security control that can be monitored and there must be self-policing of the owners. When she visited the area the other day there was a great deal of trash. She would suggest tenant cleanup. She does not think they need to eliminate the vendors because they provide a service, but there perhaps should be an area where the vendors are allowed in one spot by permit. If they can get a commitment from the owners, she would like to put off a vote for a year so they can have meetings with Code Enforcement, Police, Redevelopment, Council, etc. Chairman/Mayor Daly. He believes they have to get started on the plan and this is just the start of a process that will take years to complete. The neighbors have been waiting long enough for City government to stop spending enormous amounts on Policing and Code Enforcement in the area and to start putting forth concrete solutions. There is no question Jeffrey-Lynne is overcrowded, that the housing is substandard on many of the properties and not well managed. There is too much crime. This plan starts to solve those problems. He has been to the property many times in the last 11 years. The apartments are not a decent place for residents to live. The decline of the properties is bad for the residents and surrounding residential. Anaheim probably has the second or third largest supply of affordable housing in Orange County. City staff has proven its abilility to be fair and humane to residents while projects like this are undertaken. He will insist on fair and humane treatment of all the tenants. Relative to the Advisory Committee, it is not something that will exist just on paper. It will have the utmost meaning and impact with him. He will be listening to every word the Committee has to say and take it seriously. The plan preserves and protects housing for working families in the tourism industry. They owe it to the community for a balanced quality of life. They will have many decisions to make in the future on the various pieces of the plan. Authority Member McCracken . She does not see this as a decision to take private property – it is one giving the property owners an opportunity to rehabilitate their properties. The idea of a non-profit taking over the properties came from one of the property owners three years ago who has since sold his property and moved on because his idea was not thought to be a viable one. It is necessary to proceed to see if the plan works. She has visited some of the properties; some of the owners are well intentioned but a high percentage are not. It is an unhealthy place for children to live as she observed first hand. She also does not agree with the property owner who wants them to change the zoning for other high-rise hotels. There are additional steps to be taken. If the plan does not appear to be working or if they do not get the participation needed, she will be the first to say stop. The neighborhood has been waiting for 35 years. She is concerned about the residents as well as the neighbors of Jeffrey-Lynne who have lived there for years. She wants to make sure all are fairly treated. Authority Member Feldhaus . Their vote is only to authorize staff to proceed in order for the developer to be able to apply for the tax credits necessary and, if they are, to begin a negotiation process. That is what he believes he is voting on tonight. When staff presents the next step, he may vote not to continue or ask for a year’s extension. His vote tonight is to allow the first step to take place. Chairman/Mayor Daly then offered the following under the different agencies: Housing Authority: (Item 1.) Chairman Daly offered the following: (1) Adopting a Resolution approving a Negative Declaration for the Jeffrey-Lynne-Revitalization Plan, Cooperation Agreement and Affordable Housing and Neighborhood Revitalization Agreement; (2) approving the Jeffrey-Lynne Neighborhood Revitalization Plan; and (3) approving and authorizing the Executive Director to execute and to take all actions necessary to implement the Cooperation Agreement and the Affordable Housing and Neighborhood Revitalization Agreement. 8 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 Chairman Daly offered Resolution No. AHA99 -3 for adoption (covering the foregoing actions). Refer to Resolution Book. RESOLUTION NO. AHA99- 3 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY APPROVING A NEGATIVE DECLARATION FOR THE JEFFREY-LYNNE REVITALIZATION PLAN, COOPERATION AGREEMENT AND AFFORDABLE HOUSING AND NEIGHBORHOOD REVITALIZATION AGREEMENT (JEFFREY-LYNNE NEIGHBORHOOD). (CONTINUED FROM THE MEETING OF JUNE 15, 1999, ITEMS HSG. 1 AND HSG. 2). Roll Call Vote on Resolution No. AHA99-3 for adoption: AYES: CHAIRMAN/AUTHORITY MEMBERS: Feldhaus, McCracken, Daly NOES: CHAIRMAN/AUTHORITY MEMBERS: Kring, Tait ABSENT: CHAIRMAN/AUTHORITY MEMBERS: None The Chairman declared Resolution No. AHA99-3 duly passed and adopted. Redevelopment Agency: (Item 4.) Chairman Daly offered Resolution ARA99-5 for adoption. Refer to Resolution Book. RESOLUTION NO. ARA99- 5 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING A COOPERATION AGREEMENT WITH THE CITY OF ANAHEIM AND ANAHEIM HOUSING AUTHORITY REGARDING THE JEFFREY-LYNNE AFFORDABLE HOUSING AND NEIGHBORHOOD REVITALIZATION PLAN, AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH (CONTINUED FROM THE MEETING OF JUNE 15, 1999, ITEM AGENCY 2). Roll Call Vote on Resolution No. ARA99- 5 for adoption: AYES: CHAIRMAN/AGENCY MEMBERS: Feldhaus, McCracken, Daly NOES: CHAIRMAN/AGENCY MEMBERS: Kring, Tait ABSENT: CHAIRMAN/AGENCY MEMBERS: None The Chairman declared Resolution No. ARA99-5 duly passed and adopted. City Council: (Item A18.) Approving a Cooperation Agreement with the Anaheim Redevelopment Agency and Anaheim Housing Authority regarding the Jeffrey-Lynne Neighborhood Revitalization Plan. (Continued from the meeting of June 15, 1999, Item A29.) Before action was taken, Authority Member Feldhaus asked, for his own edification, how they can vote for a negative declaration when people will be displaced ; Lisa Stipkovich. There is an Initial Study which indicates there will be displacement but it will be mitigated; therefore, the negative declaration would be applicable. She deferred to outside Counsel. John McClendon . The negative declaration involves impacts to the environment. They went back and revised the negative declaration to use the most current form recommended for an Initial Study. The impact CEQA is concerned with is environmental and not for social or economic impacts. Under CEQA, the impact is environmental if the displacement causes the need for additional housing. In this case, there will not be additional construction to accommodate those displaced. They will be accommodated in existing housing units. They have data in the files indicating there is sufficient existing housing to accommodate the displacement; Lisa Stipkovich also confirmed for Mr. Feldhaus that they will be relocated within the surrounding area. 9 ANAHEIM CIVIC CENTER, ANAHEIM HOUSING AUTHORITY JULY 13, 1999 Lisa Stipkovich . Relative to Council action, the staff report submitted had three action items: (1) approving the Cooperation Agreement, (2) finding the Negative Declaration adopted by the Authority to be adequate and, (3) modifying the no-parking program (reinstate on-site parking for tenants on one side of the streets). Council Member Kring asked that the action relative to the no-parking modification be a separate motion. MOTION. Mayor Daly moved to approve a Cooperation Agreement with the Anaheim Redevelopment Agency and Anaheim Housing Authority regarding the Jeffrey-Lynne Neighborhood Revitalization Plan (excluding the parking modification). Council Member McCracken seconded the motion. Council Members Kring and Tait voted No. MOTION CARRIED. MOTION. Mayor Daly moved to approved the modification to the no-parking plan for the Jeffrey-Lynne area allowing reinstatement of on-site parking for tenants on one side of the streets as outlined in the staff report dated July 13, 1999. Council Member McCracken seconded the motion. Council Member Tait voted No. MOTION CARRIED. ADJOURNMENT/Housing Authority : On motion by Chairman Daly, seconded by Authority Member McCracken, the Housing Authority Meeting of July 13, 1999 was adjourned. MOTION CARRIED. (8:49 P.M.) ADJOURNMENT/Redevelopment Agency : On motion by Chairman Daly, seconded by Agency Member McCracken, the Redevelopment Agency Meeting of July 13, 1999 was adjourned. MOTION CARRIED. (8:49 P.M.) RECESS: By general Council consent, the Council meeting was recessed for 10 minutes (8:50 P.M.). (See Council Minutes – Council Meeting reconvened at (9:15 P.M.) LEONORA N. SOHL SECRETARY 10