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HomeMy WebLinkAbout1974 11 27 CC MIN1974 11 27 CC MIN(ÌìÒRpeINDEX November 27. 1974 Page Res. No. 74-107 Recite Facts of Special Election 11/5/74 and Declaring the Results thereof Adopted 1 Community Redevelopment Agency 1 Res. No. 74-109 Designating a Survey Area, Creating the Baldwin Park Redevelopment Revolving and Administrative Funds, Authorizing Appropriations thereto. Providing for Expenditures of such Monies and Directing Feasibility Studies Adopted 2-5 CRA Board to Meet 12/3/74 at 5:00 p.m. 5 Meeting adjourned at 5:40 p.m. 5 BIB] 37658-U01 1974-U02 11-U02 27-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9835-U03 DO9851-U03 C4-U03 MINUTES1-U03 2/5/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1974 11 27 CC MIN(ÌìÒRpeOOG511 ADJOURNED REGULAR MEETING OF THE BALDWIN PARK CITY COUNCIL CITY HALL COUNCIL CHAMBERS) 14403 East Pacific Avenue The City Council of the City of Baldwin Park met in adjourned regular session at the above place at 5:00 p.m. Councilman Gregory led the salute to the flag. Roil Call: Present: COUNCILMEN GREGORY. KING, MC CARON, WALDO AND MAYOR HAMILTON NOVEMBER 27, 1974 5:00 P.M. FLAG SALUTE ROLL CALL Also Present: Absent: CITY MANAGER MOCALIS, ACT- ING PLANNING DIRECTOR HALE AND CITY CLERK BALKUS CITY ATTORNEY FLANDRICK, DIRECTOR OF PUBLIC WORKS LATHROP, FINANCE DIRECTOR DUNCAN, CHIEF OF POLICE ADAMS AND CITY TREASURER CALE 00- City Clerk Balkus announced that this was the time and place fixed for receiving the Registrar of Voters of the County of Los Angeles Certificate as to the results of the Special Municipal Election held Tuesday, November 5, 1974. She stated that the whole number of votes cast except absentee voter ballots) was 8,154; that the whole number of absentee voter ballots was 180, making a total of 8,334 votes cast; that the Certificate of Canvass attached to Resolution No. 74-107 indicated the votes cast for and against the measure Shall Ordinance No. 684, Creating a Comnunity Redevelopment Agency for the City of Baldwin Park, be Adopted?"; that there were 4,404 yes" votes and 3,073 no" votes; that the measure did carry. City Clerk Bat k us read by title and recommended the adoption of: RESOLUTION NO. 74-107, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA RECITING THE FACTS OF THE SPECIAL MUNICIPAL ELECTION CONSOLIDATED WITH THE STATE WIDE ELECTION HELD IN SAID CITY OF BALDWIN PARK ON THE 5TH DAY OF NOVEMBER, 1974 DECLARING THE RESULTS THEREOF AND SUCH OTHER MATTERS AS PROVIDED BY LAW RESOLUTION NO. 74-107 ADOPTED AND FURTHER READING WAIVED. M/S/C: KING/WALDO. 00- City Manager Mocalis stated that Jim Sexton had put together a preliminary sequence of events of what will have to transpire now if we're going to meet the May deadline for the sale of tax increment bonds. His original sequence of events had been predicated upon the fact that the Registrar of Voters would have brought the Canvass back to us earlier. On November 20, 1974 Council would have had the organization of the Agency. He reviewed the tentative sequence of events for the Community Redevelopment Agency Board. He stated they would tike to bring this back to the Agency Board on December 3, and at this time it would be appropriate for Council to adopt a Resolution. Councilman King asked if this will include financing with respect to the people who will be doing the work on the project. Continued) CERTIFICATE OF CANVASS SPECIAL MUNICIPAL ELECTION 11/5/75 COMMUNITY REDEVELOP- MENT AGENCY) RES. NO. 74-107 RECITE FACTS SPEC, ELECTION 11/5/74 DECLARING RESULTS THEREOF RES. NO. 74-107 ADOPTED BIB] 37658-U01 1974-U02 11-U02 27-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9835-U03 DO9851-U03 C4-U03 MINUTES1-U03 2/5/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1974 11 27 CC MIN(ÌìÒRpeCL'O^l^ Adjourned Regular Meeting of the Baldwin Park City Council November 27» 1974 Page 2 City Manager Mocatis stated yes. The Council will have to adopt a Resolution which will set up a Redevelopment Agency, etc. Mr. Sexton had told Council some months ago that this would be approximately $85,000.00 to do the work up to the point of selling the bonds. That money would be repaid to the General Fund at the time the bonds are actually sold. This will be paid back with interest, as set in the Resolution, at 7% per annum. Councilman Waldo asked what amount would we be getting at a savings and loan. City Manager Mocalis stated we would get a little more on the open market but this is an accepted rate for this sort of operation. It could be set higher but this is an appropriate rate. He cautioned that if we do not adhere to a tight time schedule we could see the entire project put off for over a year as it is his understanding that if the Sheraton Inn cannot take possession by May 1, 1975 they will not do any ground breaking in 1975 and will want to hold off for a year, so it could be another year. Councilman King asked if we're on schedule and the feasibility study is satisfactory there is no question of these people settling then. City Manager Mocalis stated it was his understanding that the hotel people had already performed a feasibility study for their own use; this is not the same sort of study necessary for our purposes. The purpose of the Community Redevelopment Agency is to be able to show that we will be able to have a sufficient increase in the tax increment funds to repay the bonds, as the only thing standing behind the bonds are the tax increments. So our feasibility study would take into consideration the appreciation and the realty tax base, the assessed value of the land and those would be pledged as security for the sate of the bonds. If we cannot show this in a feasibility study we will not find buyers for the bonds. Our purpose is to show that the bonds are marketable and a good investment. They are interest free like municipal bonds. Councilman Gregory stated that $85,000.00 will be appropriated from the General Fund, to defray the cost of administration. Is this $85,000.00 a fund that will be slowly dissolved, and how will it be reconstituted as it goes what's coming in and from where? City Manager Mocalis stated a budget will be presented to the Community Redevelopment Agency Board at the first meeting which will explain how the funds will be used. The bulk of the money will go for the payment to the consultants for providing the Agency with the necessary studies. Mayor Hamilton stated the Council is the Agency. Does this need further action? City Manager Mocalis stated the Ordinance stipulated that the Agency consisted of the newly elected and appointed City Council. The Agency exists according to the Ordinance. City Manager Mocalis read by title Resolution No. 74-109 and the detailed sections: RESOLUTION NO. 74-109, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DESIGNATING Continued) RES. NO. 74-109 DESIGNATE SURVEY AREA. CREATE B. P. BIB] 37658-U01 1974-U02 11-U02 27-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9835-U03 DO9851-U03 C4-U03 MINUTES1-U03 2/5/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1974 11 27 CC MIN(ÌìÒRperTS900 Adjourned Regular Meeting of the Baldwin Park City Council A SURVEY AREA, CREATING THE BALDWIN PARK REDE- VELOPMENT REVOLVING AND ADMINISTRATIVE FUNDS, AUTHORIZING APPROPRIATIONS THERETO, PROVIDING FOR EXPENDITURES OF SUCH MONIES AND DIRECTING FEASIBILITY STUDIES. Mr. Jim Sexton defined the exterior boundaries of the area as follows: On the East boundary of the City of Baldwin Park and West Covina's West Boundary it follows that on the North and on the East and the South over to Big Dalton and up North again. It's 1 sq. block which involves the area on the Eastern boundaries of Baldwin Park and on the West to Big Dalton and on the North and South to the prolongations of the West Covina boundary. Councilman King asked what about the 2 acres there were supposed to be in the project area for the other motel. Does this fall in these boundaries? Mr. Sexton stated, yes, it does. Councilman King said, so you are using the freeway as a boundary on the South. Mr. Sexton stated we are going beyond the South boundary of the freeway. It will be a square area. City Manager Mocalis stated the study area is always larger than the project area to study the effect on adjacent properties, etc. After the study area has been designated then the Planners will bring that down into the project and the Agency will adopt a Project Area. City Manager Mocatis stated that they have indicated before that the question was raised in the CRA election what could possibly happen if anything goes wrong. The worst that could happen would be that the City would be on the hook for $85,000.00 if no monies are available for repayment of the loan. Once the bonds are sold and that repayment is made there is no way that the City can be obligated for any kind of funds. A11 the obligation is upon the Agency. It cannot become a debit against our citizens. Councilman Gregory asked if it fails would we be out $85,000.00. City Manager Mocalis stated that's correct. Councilman Waldo stated when the study is made and they find that it is not practical to have the hotel and we are not able to find a buyer, then we'd be on the hook until we find a buyer. City Manager Mocatis agreed. Councilman King asked if there would be an alternate study made. City Manager Mocalis stated the only thing to be studied at this time will be to getting the Sheraton Inn in. Councilman King stated with this amount of money the people could say that an alternate to this would be—- continued) November 27, 1974 Page 3 REDEVELOP. REVOLVING & ADMIN. FUND, AUTH. APPROPRIATIONS. PROVIDE FOR EXPEND. AND DIRECT FEASIBILITY STUDIES BIB] 37658-U01 1974-U02 11-U02 27-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9835-U03 DO9851-U03 C4-U03 MINUTES1-U03 2/5/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1974 11 27 CC MIN(ÌìÒRpeC 006514 Adjourned Regular Meeting of the Baldwin Park City Council November 27, 1974 Page 4 City Manager Mocalis said that if during the consultants study it becomes apparent to them that we have a problem they will immediately call it to the attention of the Agency Board and the staff and we'll start looking for alternatives if any are available, but we have a relative amount of assurances that the feasibility study will show whether this is economically sound, that there will be a ready market for sale of the bonds, that we have a good project for the money. If it's shown not to be feasible we'll halt right at that time and explain what the problem is. Councilman Waldo stated it is reassuring to know that the Sheraton Inn has already done their feasibility stucty and they are ready to go. City Manager Mocalis stated this was the reverse of most projects. In most projects you create a study area, then you get the project area, then you show it*s feasible, then you try to interest somebody in the area. In this case we have a very firm conmitment from the Sheraton and they feel this is the most desirable spot anywhere in this end of the valley. Councilman King asked if this was verbally. City Manager Mocalis stated that this is as firm a verbal commitment that we have. To the extent that they are able to give it to us they have given us written notice of intent. They cannot obligate themselves to an Agency that doesn't exist. Now that the Agency exists we can start entering into written assurances. Councilman King agreed that at this point we have come along so far he would feel that at this point they could give us a copy of their feasibility report with respect to the area and a written report as to their feeling at this point, their intentions. Maybe a little more favorably than they have. City Manager Mocalis stated he was sure they'd be glad to cooperate with us now. Councilman King stated his point is that we are in an economic down trend and it's going to continue that way, the crisis in gas could get worse and this is what distrubs him. He does not want to slow this down but wants to look into it very thoroughly with respect to their intent prior to just automatically seeing yes" on a verbal commitment. Councilman Waldo stated that what made him feel good, was that as of yesterday he understood that K-Mart is hanging right in there strong. Mayor Hamilton stated that to sum up, the estimated cost is $85,000.00. City Manager Mocalis stated that would be the totality of our anticipated costs up to the point of selling the bonds and when the bonds are sold the Agency Board will have been provided, prior to that time, with what the costs will be for the Agency to administer the project as it goes along and any other incidental costs. The only monies that the city Council should extend to the CRA are those funds that are necessary to take it up to the point of where they sen the bonds. From there on the Agency should be on their own and they should not require any more City help. Continued) BIB] 37658-U01 1974-U02 11-U02 27-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9835-U03 DO9851-U03 C4-U03 MINUTES1-U03 2/5/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1974 11 27 CC MIN(ÌìÒRpeCr06915 Adjourned Regular Meeting of the Baldwin Park City Council Councilman King asked when was the last time anyone had talked to K-Mart. Councilman Waldo stated they had talked to Mr. Sexton yesterday and Mr. Sexton had said they were strong and hanging right in there. Councilman King said he had spoken with Mr. Ray some month and a half ago and he didn't indicate that they were that sure. That's why he was overly cautious at this point and wanted to be sure that the $85,000.00 was fairly secure. Mayor Hamilton stated the main thing was to get the hotel first and then after that there will be no problem of other businesses wanting to come in. Mr. Mocalis recommended that Council adopt Resolution No. 74-109. RESOLUTION NO. 74-109 BE ADOPTED AND FURTHER READING WAIVED. MOVED: WALDO Discussion followed as to the by-laws and budget being a CRA Agency project. In answer to Councilman Gregory, City Manager Mocalis explained that action of the Agency precedes the action by the Council. He suggested that the Agency Board meet a day before a Council meeting, possibly at 4:00 p.m. The Board meetings require legal notice for public hearings. It is not best to have both meetings the same day as it win be difficult to determine when the Agency meets. The Agency Board will be under the rules of the Brown Act. The Council, at this time, can set the date of the first Agency Board meeting. Future Board meetings must be set by the Board. Councilman McCaron requested a decision from the City Attorney as to Council acting as the Agency Board, but still the same 5 people. City Manager Mocalis stated he would get an opinion from the City Attorney, but there is no conflict within the law. November 27. 1974 Page 5 RES. NO. 74-109 ADOPTION MOVED COUNCILMAN KING SECONDED. objections. Roll Call. There were no RES. NO. 74-109 ADOPTED Mr. Mocalis suggested the Council set the Board meeting for 7:00 p.m. on Wednesday» December 4, 1974. Council agreed that the Agency Board would meet on a separate night from the City Council meeting. It was decided that December 3rd at 5:00 p.m. would be the date set for the organizational meeting of the Community Redevelopment Agency Board. Councilman Gregory directed that the City Clerk make all legal published notcles of the Agency meeting. 00- AT 5:40 P.M. MEETING ADJOURNED. M/S/C: GREGORY/KING. 00- CRA BOARD TO MEET 12/3/74 5:00 P.M ADJOURNED 5:40 P,M /^- TtiiLMA L. BALKUS. CtTV CLEftK——— APPROVED: 4^^^ Date of Distribution to City Council: Date of Distribution to Departments: 7 A^J T^LA^. z± M± 1974 1974 BIB] 37658-U01 1974-U02 11-U02 27-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9835-U03 DO9851-U03 C4-U03 MINUTES1-U03 2/5/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06