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Home My WebLink About01-24-1995 ORA MinutesORANGE REDEVELOPMENT AGENCY MINUTES OF A REGULAR MEETING ORANGE, CALIFORNIA January 24, 1995 The Orange Redevelopment Agency of the City of Orange, California convened on January 24, 1995 at3 :00 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 3:00 P.M. SESSION 1. ROLLCALL PRESENT ABSENT Murphy, Barrera, Coontz, Spurgeon, Slater None 1. 1APPROVAL OF MINUTES Regular Meeting January 10, 1995.MOTION SECOND AYES Spurgeon Coontz Murphy, Barrera, Coontz, Spurgeon, Slater ACTION: Approved.2. CONSENT CALENDAR 2. 1 Declaration of the Clerk of the Orange Redevelopment Agency, Marilyn J. Jensen, declaring posting of Orange RedevelopmentAgencyAgendaofregularmeetingofJanuary24, 1995, at Orange Civic Center MainLibrary, the Police Facility at 1107 N. Batavia and the Eisenhower Park Bulletin Board; allofsaidlocationsbeingintheCityofOrangeandfreelyaccessibletomembersofthepublicatleast72hoursbeforecommencementofsaidregularmeeting.ACTION: Accepted Declaration of Agency Posting and authorized its retention as a public record in the Office oftheAgencyClerk.2.2 Authorize Chairman and Director of Finance to draw warrants on Agency's Fiscal Agent in payment of demands.ACTION: Approved.REMOVED AND HEARD SEPARATELY) 2.3 Request authorizationtoapproveFirst-Time Homebuyer Loan and authorize the Fiscal Agent to prepare a warrantintheamountof$12,750.00. (RC2500.G.1.I)FISCAL IMPACT: Funds are available in Account No. 913-9804-465701-9104 (First TimeHomebuyerFunds) for Case #431. Detail number 23118 has been assigned to this loan. Director Murphy indicated the property address is 400 S. Flower Street, No. 12, in Orange whichansweredBarbaraDeNiro's question. PAGE 1 ORANGE REDEVELOPMENT AGENCY MINUTES January 24, 1995 2. CONSENT CALENDAR (Continued) MOTION SECOND AYES Murphy Coontz Murphy, Barrera, Coontz, Spurgeon, Slater ACTION: Approved. REMOVED AND HEARD SEPARATELY)2.4 RequestAgency Board approve lease with David Wilson for Agency-owned property located at 1429WestPalmyra. (RA2100.0.Agr.2338)FISCAL IMPACT: None.Barbara DeNiro, 1118 E. Adams asked what is the lease amount.The City Manager indicated it was $1.00 per year.Bob Bennyhoff, 10642 Morada Dr., asked the amount of sales tax the City is receiving, or is the issuethatunlesstheCityleasesthislandMr. Wilson would not take over Miller Ford?The City Manager reported there was not any preconceived ideas that the City had in terms of conditions of Mr. Wilson taking over Miller Ford. This is a lease for vacant land, land that was unproductive and full of weeds. It is now part of Miller Ford's sales lot and it is estimated there are 20 to 30 trucks stored on the lot, selling at $12,000 each and the City would get $120.00 from that, you would have to multiply the number of times the trucks would turn over.MOTION SECOND AYES Barrera Murphy Murphy, Barrera, Coontz, Spurgeon, Slater ACTION: Authorized Executive Director to execute lease on behalf of the Agency.REMOVED AND HEARD SEPARATELY)2.5 Request Agency Board review proposal from Independent Development Company, Inc. (IDe)and David ValentineforthepurchaseanddevelopmentofthesoutheastcornerofMainandChapman.FISCAL IMPACT: The Agency would realize a $630,000.00 increase in Account No. 922-000-291100.PAGE 2 ORANGE REDEVELOPMENT AGENCY MINUTES January 24, 1995 2. CONSENT CALENDAR (Continued) The Director of Economic Development was asked to review the proposal. A memo to Agency directors is to alert them to the fact that in 1992 the Agency paid approximately $29.41 per sq. ft. for the property and the proposal before Agency members is to sell it for $21.42 per sq. ft. There are a number of mitigating circumstances that have occurred over the past two years that have influenced the price of the property. The real estate market declined and a general decline in the economy has lessened the demand for vacant land. The parcel will also be reduced in size due to the street being widened. There are also ingress and egress problems. Appraisals within the area have been conducted at approximately $25.00 per sq. ft. In response to Director Slater's questions, the Director of Economic Development indicated the Agency has not evaluated the cost of demolishing the structure. There has not been a counter offer on the property. Given the number of times the agreement has been extended, it was felt if a sale could not be reached at this time, it was suggested time be taken to review the site, since the Director has been with the Agency for a short period oftime. This is why the purchase price was presented to the Agency and further direction was requested. David Valentine, 635 E. Chapman, commented he made an application for exclusive rights to negotiate in April, which was extended twice. Meetings with City staff have been held regarding the following: 1) took one week to eliminate prior issues brought forward by developers on the property, 2) brought to staff all potential users interested in the property, 3) went back to the users with the ingress/egress problems, 4) returned with six users willing to go there, 5) staff was presented with this information and asked of these interested users who would they like to see there - staff has come up with recommendations. John Aust did an investment of value on the property to determine if this was an inappropriate value, however it came within the range. There has been no feedback from staff regarding their initial proposal.The six users were presented with the project in August. It is not January, 1995. Timing is of the utmost importance and it behooves us to keep in communication with those tenants to keep them interested. The time frame from April to now is not an appropriate time frame.Mr. Valentine commented the first choice for the property is a retail user.Mr. Valentine was asked ifhe would be willing to pay the cost for demolition by Director Slater.Mr. Valentine commented it would be a qualified yes because as a developer he would not want to get into the demolition because he was not aware nor is staff given any assurances there is no hazardous material problems. If staff can assure Mr. Valentine there are no hazardous material problems with the site, the value could be quantified which could be a negotiated item. If there are no unforeseen circumstances, the cost of demolition would be approximately $30-35,000. PAGE 3 ORANGE REDEVELOPMENT AGENCY MINUTES January 24, 1995 2. CONSENT CALENDAR (Continued) Director Slater asked Mr. Valentine ifit would be appropriate if the bid could be raised to 650,000 to cover $20,000 of the cost. Chairman Coontz indicated the Agency members wouldhavetodiscussthecosts. The Executive Director reported when there is a purchase price of one million dollars and then anofferonthetableof $630,000, it behooves the staff to understand the direction, which the newlyhiredDirectorislookingfor. The offer came in on December, 1994, not April, 1994. Barbara DeNiro, 1118 E. Adams, asked the total square feet and price? Further, what is the account name for this item. The Executive Director reported the price equates to one million dollar purchase price. The account goes back to the Redevelopment Agency. MOTION SECOND AYES Murphy Spurgeon Murphy, Barrera, Coontz, Spurgeon, Slater Moved to finalize research on the subject piece of property and respond to the initial offer presented to us today under Item 2.4 ina timely fashion, hopefully not to exceed 30 days from today to initiate discussions for negotiations.Director Murphy amended the motion to read: Moved to finalize research on the subject piece of property and initiate and finalize negotiations prior to February 14, 1995. The desire being a recommendation from staff and a staff report return to the Agency on February 14, 1995.Research report to include demolition costs, underground problems, and all related concerns to the developmentoftheproperty.REMOVED AND HEARD SEPARATELY)2.6 RESOLUTION NO. ORA-0287 A Resolution of the Orange Redevelopment Agency authorizing the execution of a Public Works CooperationAgreementwiththeCityofOrangerelatingtopropertyacquisition, design and constructionofapublicparkinglotinanamountnottoexceed $400,000 located immediately acrosstherailroadtracks ( west side) from the Metrolink Train Station, at 184 N. Atchison St.ThesefundswillmatchaStateTransitCapitalImprovementGrant. (RA2100.0.Agr.2337)MOTION SECOND AYES ABSTAIN Spurgeon Murphy Murphy, Barrera, Coontz, Spurgeon Slater PAGE 4 ORANGE REDEVELOPMENT AGENCY MINUTES January 24, 1995 2. CONSENT CALENDAR (Continued) ACTION: Approved and authorized Chairman and Agency Clerk to execute on behalf of theAgency. MOTION SECOND AYES Murphy Barrera Murphy, Barrera, Coontz, Spurgeon, Slater Items 2. 3,2.4,2.5 and 2.6 were removed and heard separately, all remaining items were approved as recommended.END OF CONSENT CALENDAR 3. REPORTS FROM DIRECTORS _ None 4. REPORTS FROM BOARDS, COMMITTEES AND COMMISSIONS _ None 5. ADMINISTRATIVE REPORTS - None 6. REPORTS FROM EXECUTIVE DIRECTOR _ None 7. LEGAL AFFAIRS - None 8. ORAL PRESENTATIONS Carole Walters, 534 N. Shaffer, commented the City should not get involved in Chapman University's property negotiations to purchasetheOrangeUnifiedSchoolDistrict's property.The Executive Director responded a bid was submitted to the school district and was substantially lower than their minimum bidwhichwasrejected. This was done to facilitate not only the establishment of the law school but toworkwithChapmanUniversityandtheschooldistrict. The City did not have an agreement with Chapman intermsofthesubjectproperty. It has been made clear by the City Council that Chapman University beencouragedtoestablishalawschoolandtheCitywouldbewillingtoassistthem.9. RECESS MOTIONSECOND AYES Murphy Barrera Murphy, Barrera, Coontz, Spurgeon, Slater The Orange Redevelopment Agency recessed at 6: 40 p.m. and reconvened to a closed session at 9:30 p.m. for the following purpose:PAGE5 ORANGE REDEVELOPMENT AGENCY MINUTES January 24, 1995 9. RECESS (Continued) NOTE: Director Spurgeon left the Closed Session at 10:00 p.m. Conference with Real Property Negotiator. Property: Villa Santiago Apartment Complex at Prospect & Bond Streets Negotiating Parties: John Macuda & Agency Executive Director Under negotiation: Price and terms of payment 10. ADJOURNMENT MOTION SECOND AYES ABSENT Murphy Barrera Murphy, Barrera, Coontz, Slater Spurgeon The Orange Redevelopment Agency adjourned at 10:25 p.m.Q ~<P''(.#/MARIL . NSE~ MC, CLERK OF THE ORANGE REDEVELOPMENT AGENCY J "1 . L/.. ,.J~ l..- 7'-U/ i t- / ,./' ~c 10 C. COONTZ, C OF THE ORANGE REDEVELOPME AGENCY PAGE 6