RA1973/09/18REDEVELOPMENT AGENCY
September 18, 1973, (4:40 P.M.)
Council Chambers
Anaheim City Hall
PRESENT: Mr. Sneegas, Mr. Pebley, Mr. Thom and Mr. Dutton
ABSENT: Mr. Stephenson
PRESENT: EXECUTIVE DIRECTOR: Keith A. Murdoch
ASST. EXECUTIVE DIRECTOR: Alan G. Orsborn
ASSISTANT CITY ATTORNEY: John Dawson
SECRETARY: Dene M. Daoust
The meeting was called to order by Mr. Dutton.
MINUTES On motion by Mr. Sneegas, seconded by Mr. Pebley, minutes
of the meeting held September 4, 1973, were approved. MOTION
CARRIED.
PROPOSED PURCHASE - DREYFUS (McCOY DRUG STORE, SOUTHWEST CORNER
OF LINCOLN AVENUE AND ANAHEIM BOULEVARD Mr. Murdoch submitted
and read memorandum from Alan G. Orsborn, Assistant Executive
Director, Redevelopment Agency, relative to the possible
acquisition of the McCoy Drug Store building. He advised
that the Community Redevelopment Commission took "no action"
on the proposal, being of the opinion, that purchase of prop-
erty.at this time would be premature and should be postponed
until the City is further involved in a project.
Mr. Murdoch explained that this particular parcel
of property has factors quite different than others, one
being a decision deadline tomorrow (September 19, 1973) which
the owner has. Further, he is ready to reconstruct the
building.
Mr. Murdoch stated it was felt that the Agency has
a decision whether to acquire this property and since it is
in the Project Alpha,area, whether or not to issue the build-
ing permit for the reconstruction.
It was noted that the owner was agreeable to accept-
ance of the Assessor's Market Valuation, or $68,738.00. In
addition, there would be a cost of approximately $20,000.00
for demolition and filling in the basement area. Mr. Murdoch
advised that until funds from the tax inclement are received
by the Agency, the owner is agreeable to receiving 7 percent
interest. The property would be taken from the tax rolls,
reducing revenue to the City from that source by approximately
$178.00 per year and to all agencies, approximately ten times
that amount.
Discussion was held relative to purchasing the prop-
erty at this time at a cost prior to reconstruction. Noted
also was the two tenants remaining in the building and the
question of leaving the two tenants or demolishing the entire
building was considered, noting that the fact that certain
4
v
repairs would be required should the two tenants remain, and
possible relocation expense would be incurred should the build-
ing be demolished.
Mr. Orsborn reported that estimated costs for repairs
to the roof for protection of the two tenants were $2,000.00 or
$3,000.00, which could be compensated, in part, from rents
received. 1
Mr. Murdoch stated the real question was whether
there was any doubt that the streets will be widened under any
plan of redevelopment, and secondly, whether there is any doubt
that the price of this property will increase substantially. He
further stated that the eminence of having to do something with
the property necessitates a decision; that plans for remodeling
the property are presently filed.
Further discussion ensued, and Mr. Pebley noted the
possible precedent that could be established and ease by which
similar properties could assume the same predicament.
Considering the immediate increase in value after
remodeling, Mr. Sneegas noted the insurance company will be
indirectly increasing the value of the property by paying a
considerable amount of the remodeling costs necessitated by the
fire.
At the conclusion of the discussion, Mr. Dutton moved
the Agency purchase subject property under the negotiated terms
and conditions for a total price of $68,738.00, and 7 percent
interest until Agency funds are available. Mr. Sneegas seconded
the motion.
Vote on the above motion was as follows:
AYES: Mr. Sneegas and Mr. Dutton
NOES: None
ABSTAINED: Mr. Pebley and Mr. Thom
ABSENT: Mr. Stephenson
Said motion failed, not receiving an affirmative vote
of the majority of the Agency.
ADJOURNMENT Mr. Pebley moved to adjourn.
MOTION CARRIED.
ADJOURNED: 5:05 P.M.
Mr. Thom seconded the motion.
Signed
Secretary, Redevelopment Agency