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HomeMy WebLinkAbout1979 03 15 CC MIN1979 03 15 CC MIN;¢f4ÊmUNOFFICIAL UNTIL APPROVED SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CITY HALL, COUNCIL CHAMBERS, 14403 E. Pacific Avenue, THURSDAY. MARCH 15, 1979 at 7:00 P.M. AND ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS, BALDWIN PARK REDEVELOPMENT AGENCY. 00- An invocation was given by Councilman Ize'11. Councilman Aguitar led the salute to the flag. INVOCATION FLAG SALUTE ROLL CALL Roll Call: CITY COUNCIL AND REDEVELOPMENT AGENCY DIRECTORS: Present: AGUILAR, IZE! L, KING, MC NEILL AND MAYOR WHITE Also Present: CITY MANAGER SEXTON, EXECUTIVE DIR. OF CRA) CITY ATTORNLY FLANDRICK, DIRECTOR OF COMFUNITY DEVELOP. KELLY, DIRECTOR OF hO'JSING AND ECONOMIC LOU OPMFN7 UNNWHAM, AC HUG C'TY NGINi ER FRENCH, ADMIN. P^HILL AND LI1Y C Ri. AI LIS And: REPRESLNTAH'/LS O." LEWIS/VANGUARD nEV'LOP^S i\ AR'INERSHIP AND KLNUALL- JOHN'^ COMPANY The special meeting of the CUv Council was for the purpose of PURPOSE OF conducting a joint and conci't'n'nt meeting with the Baldwin Park MEETING Redevelopment Agency to conduct u Public Hearing to effect the distribution of real property to 1. Lewis/Vanguard Developers, a Partnership San Gabriel River Redevelopment Project 2. Kendall-Johnson Compdny Puente/Merced Rede elopn'ent Project Mayor White read a tetter relative to the 8 p.m. hearing Disposition and Development Agreement Puente/Merced Redevelop- ment Project from the Director of Economic Development to the City Manager: Because of last minute details that could not be coordinated in the DDA due bo the unavailability of all parties to the agreement the staff is reluctant to present to the public and the Agency a document for consideration that is not in final form. Although the details are minor and have no actual bearing upon or delay in accomplishing the project the Staff does not consider it legal or proper to submit the agree- ment in its present form and recommends that this public hear- ing be continued until 7 p.m. on April 4, 1979 when a11 parties to the agreement will be available. CONTINUE PUBLIC HEARING ON DDA PUENTE/MERCED REDEVELOPMENT PROJECT TO 7 P.M. APRIL 4, 1979. M/S/C: KING/MC NEILL. There were no objections. Mayor White stated that it was the time and place fixed for a Public Hearing on the DDA for the San Gabriel River Redevelop- ment Project. Proper legal publications and notices were given. Continued CONTINUE PUBLIC HEARING PUENTE/MERCED PROJ. TO 4/4/79 7 P.M. PUBLIC HEARING DDA S.G.R. PROJECT LEGAL NOTICES BIB] 37656-U01 1979-U02 03-U02 15-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9593-U03 DO9708-U03 C4-U03 MINUTES1-U03 2/4/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1979 03 15 CC MIN;¢f4ÊmSpecial Meeting of the Baldwin Park City Council and Adjourned Regular Meeting of the Board of Directors, Baldwin Park Redevelopment Agency March 15. 1979 Page 2 Mr. Sexton said that in addition to the Agency public REVIEW OF hearing on the DDA for a portion of the San Gabriel River PROJECT Redevelopment Project, the Council would also consider the agreement for this project and approve the sale of land. He said the San Gabriel project was established in 1976. In 1978 staff was directed to develop 50 acres at the intersection of Rivergrade Road and Live Oak Avenue, Soon thereafter the firm of Municipal Services, Inc., represented at this meeting by Acting City Engineer Dwight French, was hired to assist in the project develop- ment. The City went through a selection process and during that time negotiations were opened with Lewis/Vanguard Developers, a Partnership. The final stage in the negotiations is the next step in this hearing. Mr. French reviewed major items in the agreement. He said REVIEW OF there were a few minor verbage changes in the agreement. AGREEMENT He explained that the developer is a partnership between Lewis Home Developers of Upland and Vanguard Builders in Rancho Cucamonga. He referred to a sketch of the site and a render- ings of the type of buildings thaL will be built. These were prepared by the developers. The purpose of this meeting was to approve the DDA and the sale of the land after acquisition. The agreement outlines the responsibilities of the agency and the developer. The land cost wilt be based upon our cost to acquire the land, the cost of building improvements; plus all the Agency overhead costs chargeable to the project, less the net tax allocation Lond issue proceeds allocated to the project. He said, based upon the appraisal and the budget and estimated street improvements, this will give a gross acreage figure of $62,000. per acre. We have an opinion from Taylor-Dart that this is fair market value, which is re- quired by law. The developers have agreed to guarantee their performance by the depositing of Faithful Performance Bonds totaling $325,000. There is a cancellation clause in the agreement which says, that if the Agency does not perform their part of the agreement and the developer does perform his part of the agreement that the Agency must pay the developers their costs allocated to the project, such as engineering, time, testing, surveying, etc. If the developer does not perform and the Agency has to cancel then the developer has to pay the costs the Agency has involved. Also the developer must pay a penalty if he does not perform as fast as the agreement says he will, which is completion of construction in a 3 1/2 year period. The penalty is related to the loss in tax increments that the agency would incur. If the developer performs faster than agreed to, he wilt be paid a bonus based upon 1/2 of the additional tax increment that he generates. There is a cancellation clause for the developer for soils related problems; that is, 30 days after we give him right of entry to enter onto the property to take tests, if there are soil problems that could not have been anticipated he has the opportunity to cancel within that 30 days. We are responsible for constructing the public improvements and the land clearing. However, after final plans are prepared and net costs are determined if the developer can bring about the construction of these improvements at a lesser cost or at a more timely performance then we will agree upon these prices and he will proceed with the construction. This would be reflected in the land costs. The condemnation clause in the agreement, states that if the agency must condemn and there is a time delay relative to the agreement, then if the land cost increases that the developer has a right to review Continued BIB] 37656-U01 1979-U02 03-U02 15-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9593-U03 DO9708-U03 C4-U03 MINUTES1-U03 2/4/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1979 03 15 CC MIN;¢f4ÊmSpecial Meeting of the Baldwin Park City Council and Adjourned Regular Meeting of the Board of Directors, Baldwin Park Redevelopment Agency March 15, 1979 Page 3 this cost and if he cannot absorb this cost he has a right to cancel the agreement. The arbitration clause eliminates the need to go to court if there is a problem between the developer and the agency. A reverter clause says that if the developer does not proceed in accordance with the agreement the agency takos the property back, but it allows the developer to pay the tax increment in case he is slow; however, if he pays the tax increment then the Agency would not take the property. The City and the Agency are jointly responsible for the timing of the Agency performance. This was requested by the developer as the City is an alter ego of the Agency and he doesn't want a delay by the City to escape a delay by the agency. The time for completion of the total project is 3 years from March 1, 1981 or the tax date of March 1, 1984. He must have a11 the property on the ground and tax increments ready by March 1, 1984. The benefits to the City include: the project is in accordance with the General Plan and it meets the redevelopment plan. The project should create between 1000 and 1500 new jobs. This is based upon similiar developments of th-is size. An estimate of sates tax generation for the city would be a minimum of $65,000, to a top of $200,000 per year. In answer to Counci hikiii Kinrj, Mr. French and Mr. Flandrick further elaborated on the Reverter Clause. Pg 26, sect. 513. In answer to Councilman Ize11, Mr. French said the property would be conveyed in two parts, one half of the site immediately upon acquisition of the first large piece and the other half approximately one year later. If they have a loan on the property thun under the reverter clause, we would either have to pay them off or assume that loan. It does not allow us to wipe that person out. Mr. Flandrick said, regarding loans, that Mr. Lewis has represented to our people that he has had those portions of the agreement reviewed by his proposed lender. In answer to Mayor White, Mr. Flandrick said this is a relatively standard format for a DDA used by cities for some- time. Mayor White asked if the ad hoc Committee members. Councilman Aguilar and Councilman Me Neill had any comments relative to the project. Councilman Me Neill said they had met with the committee several times since the project started and it appeared to him that the people who are working on the project are working sincerely and are successful so far in attempting to consummate the program. He urged proceeding with the project. Councilman Aguilar said he felt comfortable with the agreement and that working with the ad hoc committee Lewis/Vanguard had been very cooperative and he felt they would develop the project. Mr. Ketly said he had reviewed the project documents: The E.I.R. certified 12/2/76 The Agency plan approved 12/2/76 and The proposal submitted by Lewis/Vanguard Continued PROJECT COMPLETION AND BENEFITS SITE CONVEYED IN 2 PARTS PROJ. DOCUMENTS E,I.R. PLAN PROPOSAL BIB] 37656-U01 1979-U02 03-U02 15-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9593-U03 DO9708-U03 C4-U03 MINUTES1-U03 2/4/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1979 03 15 CC MIN;¢f4ÊmSpecial Meeting of the Baldwin Park City Council and Adjourned Regular Meeting of the Board of Directors, Baldwin Park Redevelopment Agency March 15, 1979 Page 4 Mr. Kelly said that the proposed project as submitted by Lewis Vanguard is consistent with the E.I.R. and the Agency Plan. These details were confirmed with Mr. French, Mr. Randrick and Mr. Raphiel. He said, it was his finding in accordance with the California Environmental Quality Act section 15607, that no further analysis need be prepared for two reasons: 1) no changes are proposed to the project which wilt require any revision to the E.[.R. and 2) no new infor- mation of substantial importance to the project has been available. He said the staff will monitor the project and see that it is processing to guarantee full compliance to the E.I.R. He said, the staff recommends that the Agency find and continue with the project based upon and there is no need at present for any further departmental review. Mayor White declared the Public Hearing open on the Disposition and Development Agreement for the San Gabriel River Development Project. PUBLIC HEARING OPEN S.G.R. DDA F. E. Me Donald, 199 w. Las funas, San Gabriel, said he was an engineer representing the Otting Brothers. He said Harry Otting was present to answer any questions. He said they own approximately 11 acres which are included in this project. He had heard nothing mentioned in the agreement that covered how trading and evaluating their property would be ascertained. He referred to the document which was utilized to instigate this project and said Item D, page 42, Owner Participation, mentions specifically Maximum amount of frontage will be made available to present tenants and owners in the project area in retaining their ownership and occupancy through the participation agreements such as set forth in the Community Redevelopment Law. etc" F.E. MC DONALD FOR OTTING BROS He asked, how are these items to be included in the agreement so his clients would know where they stand, and the further negotiations, in order for them to arrive at parcels on which they may be able to develop. Mr. Sexton said he had met with Mr. Me Donald once before and both the Otting brothers on several occasions. He said the eastern boundry of the project happens to be the western boundry of the Otting parcel. He said the boundry is not set in concrete. We are negotiating with four different companies and/or individuals to effectuate some type of land trade or compensation. This is not settled yet and he had so advised Mr. Otting today. Mayor White asked if anything is going forward now that would irrevokably effect Mr. Ottings property so it cannot be changed at some later time? Mr. Sexton said he had told Mr. Otting that whatever we arrive at in the area of negotiations would have his full approval, Mr. Me Donald said that perhaps this was satisfactory, but since a very complex agreement is being negotiated here, there is no mention of the nature of his clients property. He wondered if something would be in order, officially on the record that everyone is quite clearly aware of the situation. They have a vital part of that property and it is contiguous to their exist- ing facility and it is extremely important to them to maintain contiguous property for development of their existing facility and future development. This is adjacent to them and thats the way they would like to keep it if possible. Since nothing has been mentioned and it does mention owner participation and some kind BIB] 37656-U01 1979-U02 03-U02 15-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9593-U03 DO9708-U03 C4-U03 MINUTES1-U03 2/4/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1979 03 15 CC MIN;¢f4ÊmSpecial Meeting of the Baldwin Park City Council and Adjourned Regular Meeting of the Board of Directors, Baldwin Park Redevelopment Agency March 15, 1979 Page 5 of an agreement in here, which they have nothing but verbal agreement, situation now. Mayor White asked if the Otting property by itself now, will that be effected by the early portions of the development? Mr. Sexton said, no the project starts at the Westerly boundry and works Easterly. Mr. French agreed. Mayor White said in the agreement we're about to enter into with Lewis/Vanguard, would that be binding that we would at sometime take the Otting property if we enter into that tonight? * Mr. Sexton said he felt that Lewis/Vanguard was aware of the negotiation process, Mayor White asked if the representatives of Lewis/Vanguard were aware of the negotiation process and that there might be some adjustment to that at a later date. Mr. Jim Smirl of Lewis/Vanguard said the negotiation process is set out in the agreement dnd it is satisfactory with them. Mayor White asked Mr. Me Donald if this was agreeable to him and Mr. Me Donald said that as long as it was on the records it was fine with them. Sam Shafer Jr., business address 5136 Rivergrade Road, Baldwin Park, CA stated that he has been looking for the past several months for another site and that it was imperative that his company Shafer Trucking Co.) remain in the local area. He has asked the Agency for a determination on remaining in the project, which he understands has been turned over to the Agency Attorney but no answer has been given. Mayor White requested that Mr. Flandrick make his response to Mr. Shafer. Mr. Flandrick stated that as a tenant on the property he is entitled to relocation advice and benefit, which includes an effort on the Agency's part to relocate them. Mayor White asked how many people was employed by the Shafer Trucking Co. Mr. Shafer stated that he directly employed about 7 people; however, there were approximately 40-45 men who own their own vehicles who park at the facility and work out of this place of business. Of the 40-45 people, 28 or 29 are associated with equipment that Mr. Shafer owns. Mayor White assured Mr. Shafer that the Council members had no intention of driving enterprise out of Baldwin Park and that everything would be done to relocate them. Walker Brown, 13774 East Live Oak, Baldwin Park, CA stated that he was in the same situation as Mr. Shafer. Mr- Flandrick stated that the same principle would apply to Mr. Brown regard- ing relocation assistance. Mr. Brown stated that he had been in the area for 20 years and had 11 people on his payroll with approximately 30 other individuals connected with his facility, Mr. White assured him that everything would be done that the Agency could to keep him in the area. As there was no further testimony either in favor of or in opposition to the DDA for the San Gabriel River Development Project, Mayor White declared the Public Hearing closed. JIM SMIRL NEGOTIATIONS SAM SHAFER, JR TRUCKING CO. RELOCATION DISC. WALKER BROWN RELOCATION PUBLIC HEARING CLOSED SGR PROJECT BIB] 37656-U01 1979-U02 03-U02 15-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9593-U03 DO9708-U03 C4-U03 MINUTES1-U03 2/4/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1979 03 15 CC MIN;¢f4ÊmSpecial Meeting of the Baldwin Park City Council and Adjourned Regular Meeting of the Board of Directors, Baldwin Park Redevelopment Agency. March 15. 1979 Page 6 Mr. Sexton read two statements into the record Quote: All proper legal advertisements and notices have been made and copies are on file in both the Redevelopment Agency Office and the office of the City Clerk. All documents required by law to be available to the public have been available in the office of the Redevelopment Agency for the past two weeks." Unquote. Mayor White asked for any other comments by Council/Board Members and any further legal advise. Mr. Flandrick stated that if they wished to proceed with the matter, the staff recomnendation is that they enact the resolution that appears as item one on the Agenda...if that recomnendation is carried by motion the Chairman be instructed to execute the Agreement described by Mr. French. City Clerk Balkus read by title: RESOLUTION NO. 79-24 APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT AND SALE OF LAND WAIVE FURTHER READING AND ADOPT RES. NO. 79-24. M/S/C: AGUILAR/KING. There were no objections. AUTHORIZE THE AGENCY CHAIRMAN TO EXECUTE THE AGREEMENT. M/S/C: AGUILAR/IZELL. There were no objections. Mr- Jim Smirl, Upland, CA stated that he and Mr. Lewis appreciate the chance to do this project in the city and are very excited about it. Groundbreaking will be on schedule. Mayor White stated that on behalf of the Council, the ad hoc Committee, the Staff and Agency are also excited about the project and see it as a definite sign of progess. He compli- mented Mr. Raphiel, Mr. Cunnigham, Mr. Kelly, City Manager. City Attorney and Councilman Me Neill and Councilman Aguilar, who served on the ad hoc Committee, for the speedy negotiations He promised the people being affected by the project that the Agency will do everything in their power to make their move pleasant and not upset anyone's business. Mr. De Dios was asked to set a time for a Study Session on tax allocation bonds. The date of April 4 was decided for the Study Session. AT 7:45 P.M. THE CITY COUNCIL MEETING ADJOURNED. There were no objections. AT 7:45 P.M. the Agency meeting adjourned to 7:00 p.m,, April 4, 1979. COUNCIL RES. NO 79-24 DDA/SALE SGR DEV. RES. NO. 79-24 ADOPTED 7:45 P.M. COUNCIL^ MEETING ADJOURNEC 7:45 P.M. AGENCY MEETING 7 P.M. 4/4/79 APPROVED: /^^L/ c^^t^', 1979 Date of Distribution to Council: Date of Distribution to Departments: THELMA L. BALKUS. CITY CLERK BIB] 37656-U01 1979-U02 03-U02 15-U02 CC-U02 MIN-U02 LI1-U03 FO9591-U03 FO9593-U03 DO9708-U03 C4-U03 MINUTES1-U03 2/4/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06