RA1977/12/1377 -142
ANAHEIM REDEVELOPMENT AGENCY
DECEMBER 13, 1977 (1:00 P.M.)
Council Chamber
Anaheim City Hall
PRESENT: AGENCY MEMBERS: Kaywood, Seymour, Kott, Roth and Thom
ABSENT: AGENCY MEMBERS: None
PRESENT: CITY MANAGER: William 0. Talley
CITY ATTORNEY: William P. Hopkins
SECRETARY: Linda D. Roberts
EXECUTIVE DIRECTOR: Norman J. Priest
DEPUTY CITY ATTORNEY: M. E. Slaughter
Chairman Thom called the regular meeting of the Anaheim Redevelopment
Agency to order.
MINUTES On motion by Mrs. Kaywood, seconded by Mr. Seymour, the
minutes for the regular meetings held November 29 and December 6,
1977, were approved. MOTION CARRIED.
FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the
amount of $27,206.98, in accordance with the 1977 -78 Budget, were
approved.
161.107: SALE OF THE CAHEN (SCHUSTER) HOUSE Following report and
recommendation of the Executive Director and, on motion by Mrs. Kay -
wood, seconded by Mr. Seymour, a public hearing was set for Tuesday,
January 3, 1978, 1 :00 p.m., to consider the sale of the Cahen
(Schuster) house located at 211 South Claudina. MOTION CARRIED.
161.107: DEMOLITION AND SITE CLEARANCE - ACCT. NO. 52- 4147 - 973 -11:
In accordance with the recommendation of the Executive Director,
Mr. Kott offered Resolution No. ARA77 -98 authorizing publication of
a Notice Inviting Sealed Bids for the demolition and site clearance
of the following Agency properties and setting December 29, 1977,
2 :00 p.m., as the date and hour for the opening of said bids:
1.
125
South
Claudina
2.
201
South
Claudina
3.
210
South
Lemon
4.
131
South
Philadelphia
5.
123
North
Helena
6.
113 -117 North Clementine
77 -143
ANAHEIM REDEVELOPMENT AGENCY - December 13, 1977 - 1 :00 P.M.
RESOLUTION NO. ARA77 -98 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT
AGENCY APPROVING THE DEMOLITION AND SITE CLEARANCE OF CERTAIN AGENCY
PROPERTIES AND AUTHORIZING AND DIRECTING THE SECRETARY OF THE AGENCY
TO PUBLISH A NOTICE INVITING SEALED PROPOSALS FOR SAID DEMOLITION AND
CLEARANCE. (ACCT. #52- 4147 - 973 -11 -0000)
Roll Call Vote:
AYES:
AGENCY
MEMBERS:
Kaywood, Seymour, Kott, Roth and Thom
NOES:
AGENCY
MEMBERS:
None
ABSENT:
AGENCY
MEMBERS:
None
The Chairman declared Resolution No. ARA77 -98 duly passed and adopted.
161.123: DAN W. HEIL AND WI LLIAM C. STOOKEY - FIRST AMENDMENT
Following recommendation of the Executive Director, Mr. Kott offered
Resolution No. ARA77 -99 approving a First Amendment to Negotiation
Agreement with Dan W. Heil and William C. Stookey, extending the
negotiation period to February 17, 1978.
RESOLUTION NO. ARA.77 -99 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT
AGENCY APPROVING THE TERMS AND CONDITIONS OF A FIRST AMENDMENT TO
AGREEMENT WITH DAN W. HEIL AND WILLIAM C. STOOKEY, AND AUTHORIZING
AND DIRECTING THE CHAIRMAN AND SECRETARY TO EXECUTE SAID AMENDMENT.
Roll Call Vote:
AYES:
AGENCY
MEMBERS:
Kaywood, Seymour, Kott, Roth and Thom
NOES:
AGENCY
MEMBERS:
None
ABSENT:
AGENCY
MEMBERS:
None
The Chairman declared Resolution No. ARA77 -99 duly passed and adopted.
161: SQR STORE - CLAIM FOR LOST GOODWILL Mr. Priest reported that,
in accordance with Agency direction on November 18, 1977, a committee
comprised of Glenda Brown, Real Property Manager, M. E. Slaughter,
Deputy General Counsel, and Thomas Stoever, Special Counsel, had
met with attorneys and representatives of the SQR Department Store
concerning the matter of the SQR claim for alleged loss of goodwill.
It was the unanimous recommendation of said committee that an apprai-
sal of the SQR goodwill, if any, not be undertaken at this time.
77 -144
ANAHEIM REDEVELOPMENT AGENCY - December 13, 1977 - 1:00 P.M.
Val Renner of the SQR Store was present and gave a short presentation
on the history of the store since its opening in 1907,noting that
they presently own the land and building and that the rent is fixed
by the taxes paid. She added that they are a downtown store, not a
mall store, and there is no economically feasible place to move.
She concluded with a request to the Agency for just compensation for
being put out of business.
Doug Renner of the SQR Store was also present and distributed to
Agency Members copies of the "Statement of the Agency's Determination
of the Amount of the Offer ",referencing that portion indicating the
Agency would appraise the loss of goodwill, if any, upon a proper
showing by the owner of the following:
1) That there is a loss of goodwill caused by the acquisition
of the property;
2) That the loss cannot reasonably be prevented by relocation
of the business or other prudent steps;
3) That compensation for loss of goodwill will not duplicate
other payments the owner is receiving, including relocation
payments.
He expressed his disappointment with Agency staff and the redevelop-
ment process as it is being applied in the City of Anaheim and
requested the right to have the goodwill appraised,as the Agency had
offered and as new State rules and regulations require. He reported
that neither they nor their attorneys were advised of the results of
the meeting with the Agency committee concerning the matter of the
SQR claim or of the proposed action to be taken today. He explained
the issue being pursued by SQR is one of just compensation and asked
that their building be appraised as a business asset.
In reply to concern of Mr. Kott as to certain rules being followed,
Mr. Stoever, Special Counsel, advised that under State guidelines
(Code of Civil Procedure, Section 1263.510), the Agency is not
required to have goodwill appraised until the three aforementioned
prerequisites have been satisfied. The purpose of the meeting held
with the SQR representatives was to determine whether or not the
prerequisites had been met,and it was the unanimous opinion of the
Agency committee that they had not been satisfied.
77 -145
ANAHEIM REDEVELOPMENT AGENCY - December 13, 1977 - 1:00 P.M.
Mr. Renner commented that although he was not present at said meeting,
he did not feel that certain members of the Agency committee could
act with impartiality noting differences of opinion experienced as
to the interpretation of redevelopment laws.
,.�. In reply to questions by Mr. Seymour as to the intent of SQR to
remain in business, Mr. Renner advised that they have met once with
the relocation experts and never said that they would not consider
relocation. He added that a private firm has been searching the area
for a building suitable for their use and the best they could find
was located in Garden Grove and required remodeling. He felt it
was not economically possible to relocate the SQR as a department store,
and again requested Agency consideration of appraising their building
as a business asset rather than at fair market value.
James Leitao, proprietor of the Anaheim Book Dragon, 100 West Lincoln,
was present and spoke in support of the SQR claim for appraisal of
goodwill and expressed his views as to the redevelopment process
and interpretations of the redevelopment laws.
In reply to question by Mr. Seymour, Mr. Stoever advised that if an
appraisal of goodwill was ordered, it would indicate that the property
owner had fulfilled the prerequisites of the Civil Code provision.
Following further explanation by Mr. Stoever as
appraisal processes, Mr. Seymour commented that
nized their strong legal position, he felt they
commitment and moved to approve an appraisal of
SQR Department Store. Mr. Thom seconded the mo
discussion.
to differences in
although he recog-
also had a moral
goodwill for the
Lion for purposes of
Mrs. Kaywood suggested an Executive Session be held prior to voting.
Due to the time constraint of the meeting, however, the Chairman
called for the question. The foregoing motion offered by Mr. Sey-
mour failed by the following vote:
AYES: AGENCY MEMBERS: Seymour and Roth
NOES: AGENCY MEMBERS: Kaywood, Kott and Thom
RECESS Following a brief discussion, on motion by Mr. Seymour,
seconded by Mrs. Kaywood, the Agency recessed into Executive Session.
MOTION CARRIED. (1 :40 p.m.)
77 -146
ANAHEIM REDEVELOPMENT AGENCY - December 13, 1977 - 1:00 P.M.
AFTER RECESS Chairman Thom called the meeting to order, all Agency
Members being present. (1 :55 p.m.)
On motion by Mr. Thom, seconded by Mr. Kott, the SQR claim for apprai-
sal of goodwill was denied. Mr. Seymour voted "No ". MOTION CARRIED.
ADJOURNMENT There being no further business before the Anaheim
Redevelopment Agency, Mrs. Kaywood moved to adjourn. Mr. Kott
seconded the motion. MOTION CARRIED.
ADJOURNED: 1:56 p.m.
A CXW-��
LINDA D. ROBERTS, CITY CLERK