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Home My WebLink AboutRDA MINUTES 1981 04 20MINUTES OF A P3~GULAR MEETING OF THE T~STIN CITY ~OONCIL COUNCIL CHAMBERS 300 Centennial Way April 20, 1981 I. CAT.T. TO ORDE~ The meeting was called to order by Mayor Sharp at 4:13 p.m. Cj~T.T. Councilpersons Present: Edgar, Hoesterey, Kennedy, Saltarelli, Sharp Councilpersons Absent: None Others Present: James G. Rourke, City Attorney Dan Blankenship, City Administrator Mary E. Wynn, City Clerk R. Kenneth Fleagle, Acting Comm. Dev. Dir. Bob Ledendecker, City Engineer Roy Gonzales, Personnel Director Royleen White, Community Services Director Ronald Nault, Finance Director Alan Warren, Senior Planner Eva Solis, Deputy City Clerk Nancy Miller, Administrative Aide Approximately 10 in the audience III. RECESS It was ....... moved bgy~_Edl~ar,__ seconded by Ke~nnedy, to recess to the Rede- velopment Agency meeting a 4:14 p.m. Carried 5:0. MINOTES OF A ~ MEETING REDEVELOPMENT A~~ April 20, 1981 1. The meeting was called to order by Chairman Sharp at 4:14 p.m. 2. Members Present: Edgar, Hoesterey, Kennedy, Saltarelli, Sharp Members Absent: None 3. APPROVAL OF MINUTES - April 6, 1981 It was moved by K_ennedy, seconded by Edgar, to approve the min- utes of the April 6, 1981, meeting. Motion carried 5:0. Bids for subject project were received as follows: Holstrum Const. Corp., Huntington Beach Noveco, Inc., Corona Lawson Const. Co., Wilmington Changing Times Enterprises, Buena Park J & B Contractors, Crestline Gosh Const. Corp., Los Angeles John T. Malloy, Los Angeles M. Grbavac Const., La Verne City Const., Covina B. K. Baker Co., Santa Ana Richard A. Osborn Const., Garden Grove Delta Pipeline, Stanton R & L Sewers, Paramount Kelley-Moran, Canoga Park Risto Const. Co., Inc., E1 Toro Burch Eng. Const., Baldwin Park Pakacin & Runje, Pasadena Gillespie Const., Buena Park Dale Casada Const. Co., Anaheim $22,226.78 $27,286.28 $27,306.90 $27,816.20 $27,827.10 $27,979.00 $28,163.05 $28,394.50 $29,851.65 $31,685.13 $31,952.40 $31,988.90 $32,235.00 $36,198.25 $36,756.10 $38,136.00 $39,994.00 $39,466.00 $43,752.50 The low bid is 32% below the Engineer's estimate of $32,599.00; with $30,000.00 in RDA funds presently budgeted for this project. CITY COUNCIL MINUTES Page 2, 4-20-81 As recommended in the memo dated April 13, 1981, prepared by the Assistant City Engineer, it was moved by Kennedy, seconded by._ Ed__~_~, to award subject project to Holstrum Construction CorDo- ration, Huntington Beach, in the total amount of $22,226.78. Motion carried 5:0. 81 91 5. OLD TOWN PARKING STUDY Dr. Fleagle, Acting Community Development Director, provided additional information on the Old Town Parking Study dated February 16, 1981, and the memo dated April 20, 1981, Specifi- cally related to 445 "C" Street identified as a future municipal parking facility, which was followed by Council discussion. It was then moved b~ Hoesterey, seconded by Edgar, to: a) Proceed on a priority basis with proposal for participation and development of the Gfeller parking site at 445 "C" Street; and b) Contact the School District administration to determine interest and feasibility of leased parking facilities. Dr. Fleagle emphasized the above motion would direct staff to evaluate the Gfeller proposal of participation in a parking structure on "C" street, to further investigate the feasibility of developing school properties for public parking, and come back to Council with a recommendation on a priority basis indi- cating which is the best way for the City to proceed. The motion carried 5:0. 81 Councilman Edgar stated he reached the conclusion, based on material presented and discussions of the Redevelopment Agency, that parking considerations at the intersection of Prospect and 2nd Street do not justify acquisition of property for that pur- pose; however, the opportunity to acquire that property for renovation by a private developer makes it appropriate to make such a commitment. He proposed acquisition with friendly con- demnation by the City for the purpose of reselling to a devel- oper for construction. Dr. Fleagle responded it is staff's intent to first obtain a developer and then transfer escrow where there would be no commitment of City funds, but the City would have a deposit guaranteed purchase. By using condemnation prior to acquisi- tion, then transferring to a developer at no expense would allow the City to proceed without exhausting its Redevelopment resources. To acquire the property, demolish, have it vacant, and wait for someone to come along with a development proposal could tie up Redevelopment funds for a series of years with the added burden of assuming relocation assistance projects. Dr. Fleagle suggested waiting until submittal of a proposal by a private developer. It was then moved by Edgar, seconded by Kenned_~, that acquisition of that property be considered by friendly eminent domain at such time as a feasible proposal is submitted. Councilman Saltarelli felt a purchase offer should be made to the willing seller under conditions favorable to the City based on the appraisal, and offer the parcel for resale to highest bidder (a private developer) - which would place the property back on the market, bring in additional tax increment, and allow improvements at that location. He suggested the owner may be willing to provide a one-year escrow, after which time the City could enter a purchase agreement with the Redevelopment Agency, and subsequently have the ability to place the property back on the market for resale and development; and it could possibly be worked out by attorneys and seller so that the tax benefit from same would go to the seller, even if there is not a friendly condemnation. CITY COUNCIL MINUTES Page 3, 4-20-81 A substitute .motion .was made by Saltarelli, seconded by Edgar, to direct staff to enter negotiations with owners for purchase of property at appraised value, to explore as lengthy an escrow as is feasible, come back to Council with a proposal, and simul- taneously find a developer who will proceed in a manner of most benefit to the City. Dr. Fleagle interjected that even with a willing seller, pro- ceeding with the above direction could obligate the City to relocation assistance, which is probably not included in the appraised value. The City Administrator indicated there may be some options the City Attorney's office could explore which would allow the City to avoid relocation costs. The substitute motion carried 5:0. 6. INCREMENT TAX FINANCING FOR HOUSING 81 85 Councilman Edgar stated it is apparent from the Redevelopment Agency financial report that increment tax financing will be subject to limitations next year due to increase in revenue, and it is appropriate to consider modifying the Agency agreement to allow expansion of revenue based upon expansion of tax base. He continued, stating the City has fully recognized that by making this type of commitment, we will be exposed to committing a por- tion of Redevelopment funding to housing, with ramifications of that need still to be explored. It was then moved by Edgar, seconded by Kennedy, that a study be conducted by staff, identi- fying what the constraints are, what the steps are to make the change, and what the obligations will be with a reconstitution of the Redevelopment Agency. The City Administrator stated this might occur in Fiscal Year 1982-83, and it was staff's intent to prepare such a study in advance so that it could be considered at an opportune time. Mayor Sharp concurred with the need for such a study and requested a time certain on completion of same. Dr. Fleagle indicated the study had commenced, and approximated that 60 days would allow sufficient time for completion of the study. The City Administrator noted that any changes would not become effective until the following year. Councilman Edgar added that timing in terms of completing the report and taking action could affect the amount of funding available to the Agency. The motion carried 5:0. 81 7. REFIFND OF PARKING DISTRICT FEES Barbara Clem, 220/250 E1 Camino Real, stated a reponse had not been received on a request for refund of _parking district fees at subject location. Dr. Fleagle reported the matter had gone before Council and read from the January 5, 1981, minutes indi- cating denial of said request. Council concurred with the Mayor that staff provide a written response to Mrs. Clem on the matter. 81 8. It was moved by Hoestere¥, seconded by Kennedy, to adjourn at 4:50 p.m. to the City Council meeting. Carried 5:0. V. PI~LIC CONCERNS None ~S OF T~STIN CIT~ COUNCIL RECONVENED AT 4:50 P.M. April 20, 1981