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Home My WebLink AboutSEPTEMBER 2,1975 ROLL CALL I MINUTE Al'PROVAL HEARING I M I NUT E S ARCADIA COMMUNITY REDEVELOPMENT AGENCY REGULAR MEETING SEPTEMBER 2, 1975 The Arcadia Redevelopment Agency met in regular session on September 2, 1975 at 9:30 p.m. in the Arcadia City Hall Council Chamber. PRESENT: ABSENT: Members Lauber, Saelid, Helms, Scott, Gilb None On MOTION by Member Saelid, seconded by Member Lauber and carried unani- mously the minutes of the regular meeting of August 19, 1975 were APPROVED. Member Helms abstained as he was absent at that time. Time and place scheduled for a public hearing on a proposed Disposition and Development Agreement and development of property generally'located at the northeast corner of Huntington Drive and Second Avenue. A report dated August 14 set forth the anticipated tax revenue, impact of the lot configuration on future development, land assembly process and value of the Agency's remaining parcel, future development of the Agency's remaining parcel and secondary benefits of the projected development. The City Manager explained in detail the proposed agreement with the Majestic Realty Company. "that the development would produce a sub- stantial increase in the assessed valuation. The total cost of the project including building improvements, tenant 'improvements, permanent inventory and exterior improvements is estimated at $1,432,500. Less exemptions and deductions for existing improvements, the new project would produce a net increase in property taxes of approximately $32,950. The development if approved would bring into the City a business which would employ about 175 people at a substantial annual payroll. This would create a considerable demand for services and goods which would improve the Project Area and the community at large. Projecturals of the subject area were reviewed. Chairman Gilb declared the hearing open. Kent Valley, representing the Majestic Realty Company, presented himself to the Agency and offered to answer questions. He stated in part that he has other industrial companies interested in coming into the redevelopment area of the City, .all have high quality labor personnel with between $14' and $16,000 anual incomes, It has taken about three months to come 'to this point in this transaction. ';\ Bill Connolly, 813 E. Camino Real, owner of 21 S. First Avenue, and President of the Arcadia Business Association (representing the downtown area) stated in part he is in favor of the proposal and referred to the Towne Centre area and how it was acquired and developed. He noted the improvement of the entire surroundings and submitted that the same would happen to the area of Huntington Drive and Second Avenue if the subject, proposal were approved, Ed Peterson, 412 E. Huntington Drive, recalled that not one improvement has occurred in the area between Second and Fifth Avenues on Huntington Drive during the last twelve years and asked for favorable consideration of the subject proposal, Richard Carlson, 128 E. Huntington Drive, spoke to the advantages to the City and the Business community if the new business were to come into the City.. ,the annual payroll...the improvement of vacant property...the removal of dilapidated buildings, etc. He asked that the proposal be approved. Howard Bong, 1548 Marendale, representing his: mother who is owner of property to the north of the subject location, submitted an alternate 9-2-75 - 1 - proposal,...to trade his property on a square foot for square foot basis for a portion of the upper part of that in the subject ,proposal from Majestic Realty Company. The Economic Coordinator explained that any additional negotiations could be considered at a later date. He recommended that, the,.Agency proceed with the agreement with Majestic and ,~erhaps it would be possible, by working within the framework of that agreement, to .meet the. needs of Mr. Bong.as well as Majestic. Mr. Bong was advised to confer with Mr. Pollard on this. Mr. Valley advised that as far as the Bong property is concerned it is not in the plans to expand on Mr. Bong's property at this time or in the future if Mr. Bong does not want to work with the Agency. He noted he had talked with Mr. Bong to see if he would exchange a portion of his property but had been informed by Mr. Bong that he wanted to develop his property himself. Majestic Realty did not want to become involved in this as the business he represents has need for immediate expansion. Ed Passmore, 1109 Columbia Road, stated in part that the amount of taxpayerl money starting to be spent is enormous and that it is not taking care of slum housing which, he understood was the basis for the Redevelopment Act. . He sub~itted opposition to the principle of the City' purchasing the land thus taking it off the tax rolls, He felt the citizenry should have had an opportunity to vote on ARA. ,.and from statistics what is needed is more land on the tax rolls,.keep taxes in line so that people can afford to live in the community which means reduced spending and not spending tax dollars for business welfare, Walt Landor, 1654 Rodeo Road, asked Council to hold this matter in abeyance until a forthcoming public hearing is held by the Fair Political Practices Commission on redevelopment matters. With reference to statements which were made at a previous, meeting concerning participation in CRA matters by Council members with real estate ties Mr. Landor was advised that an investigation had been made and there is no foundation for the allegation, No one else desiring to be heard the hearing was CLOSED on MOTION by Member Scott, seconded by Member Helms and carried unanimously. Member Scott stated in part that the subject proposal has taken months of effort to bring about the consolidation of properties in this area which is long overdue for upgrading. That from the reports compiled by staff it appears that the new proposal will pay its own way and not be taken off the tax rolls. It goes into the tax program the same as other tax money but goes for a specific purpose the way certain amounts of tax money go to support the Fire, Police and other functions of the City. He favored the proposal and hoped other good developments would be forth- coming in the Project Area. Member Helms endorsed the comments of Member Scott. Member Saelid stated in part that he has no objection to the proposed new industry coming into the City, but felt if it is a viable enterprise it could be done privately and not take the power of the City operating as a redevelopment agency to bring it about. He could not see why the City has to get into the land inventory business. Why not wait until there is a developer or a commercial enterprise interested in using the I property rather than building up the City's land inventory, He felt something could be done incorporating Mr. Bong's property but hoped it could be done privately. That if the Agency does act as a transfer agent that the Agency be given time to work out the details and not become a holding agency, Chairman Gilb stated in part that he had met with Majestic Realty Company and explored the type of building proposed. He said the subject industrial company has a fine reputation and would contribute a great deal to the City.., It must have larger quarters as soon as possible due to its growth. He continued that he has checked this particular project thoroughly as he has made up his mind that he would look into each and everyone of the projects that corne up for consideration, and looking at 9-2-75 - 2 - , I ADJOURNMENT I ,'-. . . ',. the "subject project and as a businessman he felt the Agency should move ahead, Member Helms commented in part that,~roposals such as these must be analyzed thoroughly and.philosophical positions have to be disregarded when each individual ,proposal is being considered. He then referred to a forthcoming Councilmanic election and felt it would be dangerous for the electorate to elect a candidate who runs on a position solely related to ARA..that when a candidate runs on a philosophical basis in opposition ,~en he, would have difficulty voting in favor of a proposal which would not have a,negative impact on the City but would only be beneficial. He noted.in.par,ticular the demise of the downtown area despite predictions of economic growth until the City got into the land packaging, business and was able to put together a feasible commercial package which has completely turned around the economic development of that area. That if it can be done economically with some plan for the future and for the benefit of the community then it is not bad. He would support the proposal. Member Scott then MOVED that the agreement be APPROVED in principle, that staff work with Majestic Realty Company to prepare the terms and conditions of a final document, have the appropriate resolutions drawn up for submission to and consideration by the Agency. Member Helms seconded the motion which was carried on the following roll call vote. AYES: NOES: ABSENT: Members Lauber, Scott, Helms, Gilb Member Saelid (for reasons stated) None The meeting then adjourned sine die. Secretary 9-2-75 - 3 -