RA1990/09/18Anaheim Civic Center, ANAHEIM REDEVELOPMENT AGENCY
September 18, 1990, 5:20 P.M.
PRESENT: AGENCY MEMBERS: Daly, Ehrle, Pickler and Hunter
ABSENT: AGENCY MEMBERS: Kaywood
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 3:30 p.m. on September 14, 1990 at the Civic Center
kiosk, containing all items as shown herein.
Chairman Hunter called the regular meeting of the Anaheim Redevelopment Agency
to order at 5:40 p.m.
MINUTES: Approval of the minutes was deferred until the next regular meeting.
FINANCIAL DEMANDS AGAINST THE REDEVELOPMENT AGENCY in the amount of
$326,531.44, in accordance with the 1990 -91 budget, were approved.
161.123. TERMINATION - OWNER PARTICIPATION AGREEMENT WITH COMMUNITY SYSTEMS
ASSOCIATES. INC. AND WJS INVESTMENTS LTD. (MARKETFAIRE): Submitted was report
„® dated September 11, 1990 from the Community Development Department
recommending termination of the subject Owner Participation Agreement (OPA).
MOTION: Agency Member Hunter moved to terminate the Owner Participation
Agreement with Community Systems Associates Inc., and WJS Investments Ltd.,
developers of Marketfaire at Anaheim, and authorizing the Executive Director
of the Redevelopment Agency to notify the participants and land owner of this
action as recommended in report dated September 11, 1990 from the Community
Development Department. Agency Member Ehrle seconded the motion. Agency
Member Kaywood was absent. MOTION CARRIED.
ITEMS OF PUBLIC INTEREST:
Mr. Marshall Krupp, President, Community Systems Associates, Inc. The action
taken by the Agency to terminate the OPA with Community Systems Associates and
WJS Investments Ltd. has a severe financial implication on not only him but
also the City. He is present because the Agency took an action pursuant to
the land owner's request which will result in the extinguishment of a major
economic development program in Anaheim Hills. Several years ago the City
lost its Auto Center for almost the same reason. Mr. Krupp then briefed the
extensive information contained in his 9 page letter dated September 17, 1990
(subject: Marketfaire at Anaheim) which had previously been submitted to the
Agency (made a part of the record). He emphasized that he hoped the Agency
had read his letter, that the community reads it and that it does become
public. It is unfortunate that the land owner is now capitalizing on the
Agency's decisions to do something good for the community as well as his
--- company's decision and the expense and time that they have put into the
project for the last 18 months. Community Systems Associates, Inc. was able
to bring commercial zoning to the property and now the land owner is taking
that, capitalizing on it and going somewhere else to generate a project that
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Anaheim Civic Center ANAHEIM REDEVELOPMENT AGENCY
September 18. 1990, 5:20 P.M.
was never the Agency's intention. He is disturbed that the Agency /Council is
terminating the agreement. He acknowledges the fact that the Agency has
cooperated with him and facilitated and expedited the process and he also
thanks staff because they have gone beyond themselves. The cost to the City
just in staff time is considerable. He condemns the fact that the Marketfaire
project is being lost because of the property owner's unwillingness to
cooperate. The property owner - Savi Ranch represented by Hillman did
cooperate much of the time until they saw or perceived the project was not
going to proceed. The project could have happened if not for the lack of
cooperation they received from Hillman in the last 3 months. Community
Systems Associates/WJS Investments Ltd. has to protect their interests and are
going to pursue whatever remedies are available to protect themselves. Those
actions are not to be a criticism of the Agency or staff.
Chairman Hunter thanked Mr. Krupp for his input. He believes they still have
a relationship and what Mr. Krupp said was accurate - that things took place
which were beyond the Agency's control and staff's control. He asked to hear
from the Executive Director of Community Development.
Lisa Stipkovich, Executive Director of Community Development. They have an
Owner Participation Development Agreement and need to have control over the
site and evidence that the person and entity they are dealing with has either ....
an option to buy the property or title to the property. Staff informed
Mr. Krupp in June that they were notified that escrow had fallen through and,
therefore, believe there is no alternative at this time but to terminate the
Agreement. Should Mr. Krupp get into negotiations again with the property
owner, staff would be happy to sit down with him and negotiate an agreement.
Mr. Krupp again complimented staff which comes from an honest understanding of
the staff's and Agency's intent to work with him. It is unfortunate as they
both look back and what they both did for the good of the community that a
property owner has taken advantage of that situation and the ones to be hurt
will be the community, the Agency as well as himself and his company.
ADJOURNMENT: Agency Member Hunter moved to adjourn. Agency Member Pickler
seconded the motion. Agency Member Kaywood was absent. MOTION CARRIED.
(5:49 p.m.)
LEONORA N. SOHL, SECRETARY
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