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HomeMy WebLinkAboutDECEMBER 16,1980 CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK I INVOCATION !'LEDGE OF ALLEGIANCE ROLL CALL MINUTE APPROVAL HEARING Conditional Use Permit Q (March 17) I lIEARING (Tennis Court) ....PPROVED 25:0182 MINUTES CITY COUNCIIL OF THE CITY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY REGULAR MEETING DECEMBER 16, 1980 The City Council of the City of Arcadia and the Arcadia Redevelopment Agency met in a regular session at 7:30 p.m. December 16, 1980 in the Arcadia City Hall Council Chamber. Bishop Bruce Ballard, Church of Jesus Christ of Latter Day Saints James R. Helms, Jr. (former Mayor of the City of Arcadia) PRESENT: ABSENT : Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None . On MOTION oy Councilman Saelid, seconded by Councilman Dring and carried unanimousiy the minutes of the regular meeting of November 18 were ap- proved as amended and the minutes of the regular meeting of December 2, 1980 were approved. Councilman Gilb abstained from voting as he was absent from the two meetings. Appeal of the Planning Commission's denial of a Conditional Use Permit (75-14) relating to a request for extension of hours of operation at the Silverado Saloon, 131 1/2 E. Huntington Drive. The Planning Director ex- plained the reasons for the Commission's denial of the request - one was that there were possible health code violations which the owner-operator had not complied with. Attempts to locate the owner have thus far been unsuccessful. The parking situation was also explored. It was also noted thatthe facility apparently has a new owner although the escrow for the transaction has not been completed. Mayor Pellegrino declared the hearing open and Mark Askren, 265 Hacienda, Arcadia, spoke as the new owner and explained some of the improvements he intends to make to the facility and asked for time to prove that he can improve the subject property and operate it successfully. It was submitted that this property has been a problem to the City for many years and Coun- cil expressed the hope that Mr. Askren will be able to upgrade the opera- tion. Inasmuch as the escrow has not closed and corrections ha~e not been made in all the required areas it was MOVED by Councilman G~lb, seconded by Councilman Saelid and carried on roll call vote as follows that the HEAR- ING BE CONTINUED TO MARCH 17. (An earlier date could be requested by Mr. Askren if he finds he can be in compliance sooner.) AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None Appeal of Planning Commission's denial of a request for modifications for construction of a tennis court at 312 W. Las Flores Avenue. The Commis- sion on November 12 voted 6 to 0 with one member absent to deny the request on the grounds that approval would not secure an appropriate improvement - that the tennis court would be a too intensive use for the property; that a 10' 0" fence a long the property line would be inappropria te; tha t the proposed lighting may result in a problem and that the required 5'0" side -1- 12-16-80 25:0183 yard setback should be adhered to. Adjacent property owners have submit- ted letters indicating they did not object to the tennis court. It was noted that a portion of the proposed tennis court would extend into proper- ty at 315 W. Longden Avenue. Mayor Pellegrino declared the hearing open and James R. Helms, Jr., repre- senting the applicants - Mr. and Mrs. Richard McEntee, explored the compre- hensive plans which were prepared by landscape architect along with scale drawings. These were circulated among the City Council. The request is for a ten foot fence and a 20 foot light standard. He noted that the land on which the court will be constructed has lain idle since the Baldwin Stocker subdivision was laid out. He felt it would be a benefit to the neighborhood and the applicant has an easement for the use of the property at 315 W. Longden Avenue ... any objection that has come to his attention I is from the owner to the east who feels the lights may be a problem, how- ever, Mr. Helms noted there is substantial distance between the two prop- erties '" and that particular land has not been developed in any way. Re- ferring to the request for a ten foot chain link fence he said this would be preferable to a six foot fence as it would cut down the tennis balls that might go over the fence. Mr. Helms continued that during the last 12 months the Modification Com- mittee has approved at least nine tennis court applications involving the increase of the lighting from 15 to 20 feet and an increase in the height of the fence from 6 to 10 feet... and that the City itself has constructed tennis courts immediately adjacent to private residences... in each of thes~ cases the fences have been higher and the lights have also been high- er than those reques ted by the applicant. .' .I Refe;ence was made to the type of lights proposed by Mr. McEntee -- photo- graphs'were circulated .. it is called a Parkette manufactured by the Bieber Lighting Corporation and it is possible to attach an additional shield when necessary to cut off the light source from any neighboring property. Let- ters from other cities indicating they have never had a complaint were sub- mit ted . Richard McEntee, 312 W. Las Flores Avenue, stated in part that he has been working on plans for a tennis court for quite some time .. he felt the un- used land could be put to better use as a tennis court than lying dormant for many years. As to the use of a portion of the property on Longden Ave- nue he said the owner agreed that he was not using the land and it would be alright for him to use it ---" they have worked out an easement. Dick Ramage, 315 W. Longden Avenue, spoke in favor of the tennis court and Sa i d in part that he will soon submit another modification request - that the neighbors are in favor of the court. Rav Hatter, 315 W. Las Flores Avenue, said in part that he has no objection to the propoed tennis court. Sara Goodno, 340 W. Las Flores Avenue, spoke in favor of the tennis court. Diana Kincart, 330 W. Las Flores Avenue, spoke in favor of the tennis court I with the comment that it would be an asset to the entire neighborhood. Brock Robertson, 300 W. Las Flores Avenue, said he has no objection to the te n n is court and he has seen the plan. Speaking in opposition: Thomas Bates, 310 W. Las Flores Avenue, east of the subject property, stated in part that at the time the matter was before the Planning Commission he had said he would have no objection if a wind screen were placed around the court to stop the glare which would be visi- ble from his lot ... also that the lights be shielded on the east and north side so they would not come into his property. He had also asked that solid planting be provided along the east side of the fence. He said he would re- move his objection if the requested protection is provided by Mr. McEntee. -2- 12-16-80 I ; I YOUTH COMMISSION EXCURSION APPROVED 25:0184 Discussion ensued on making it a requirement that the light intensity at the property line shall not exceed one foot candle and that no glare shall be visible from the adjoining property. Mr. Bates said he would have no objection if that were made a requirement. Councilman Haltom, being a pro- fessional electrician, explained some of the intricacies of the lighting which is proposed, including the radiation of light away from the court ... due to reflection. No one else desiring to be heard the hearing was CLOSED on MOTION by Councilman Saelid, seconded by Councilman Dring and carried unanimously. Councilman Saelid MOVED to approve the requested modification subject to approval by the Planning Department of the lighting plan so as to protect adjacent properties from overspill exceeding one foot candle above the ambient and further that no glare shall be visible from the adjoining property or, in this instant case, the south end of the tennis court. Motion seconded by Councilman Gilb. Councilman Haltom submitted reasons for being against approving the re- quest - the zero side yard setback and the height of the light standards he felt that in the future the person who accupies 324 W. Las Flores may suffer .. he is against anything built on the property line. As far as the light standards are concerned it would cause a tremendous glow in the neighborhood ... that he would hope that eventually tre City Council will draw the l~ne on the height of 1 ight standards. .. In response Councilman Saelid commented in part that there is merit in what Councilman Haltom has said and as far as the light intruding into adjacent properties it is going to be measured by a light meter and if that is held to less than one foot candle it should not be an undue in- trusion in terms of glare or glow into adjacent properties. As to the zero side yard setback for this type of thing it has been rather consis- tent in the City to allow this and he doesn't see this as being terribly significant and soon Mr. Ramage will be requesting a modification for a ten- nis court and the same degree of protection will be given... this protec- tion is now greater than what we have provided before in terms of light intrusion. Councilman Dring said in part that he sympathized with Mr. Bates and hoped that the action proposed by Councilman Saelid to cut down the light will help abate any real problem; that Council is endeavoring to help as much as possible... property is owned by people to be used and this is apparently an aesthetic and useful project that not only the neighbors but the owners would be proud of ... that unless rights are offended a great deal Mr. McEntee should be allowed to construct it ... he would support the motion. Councilman Gilb said in part he has endeavored for some time to get this type of light in the City parks and mentioned where they are used in other cities. Councilman Haltom said in part that the City does use some type of quartz lights now on one particular tennis court and complaints have been received about the lights. Roll call vote was then taken on the motion: AYES NOES ABSENT: Councilmen Dring, Gilb, Saelid, Pellegrino Councilman Haltom None The Youth Commission asked the City Council to again sponsor the Annual Youth Commission Excursion to Disneyland. The 1979 trip was very success- ful with over 800 Arcadia students participating. It was MOVED by Council- man Gilb, seocnded by Councilman Haltom and carried on roll call vote as follows that the request be approved. -3- 12-16-80 ROLL CALL RESOLUTION NO. 4924 ADOPTED liEAR ING PROPERTY SALE FOR HOTEL (APPROVED) 25:0185 AYES NOES ABSENT: Councilmen Dring, Gi1b, Haltom, Saelid, Pellegrino None None Council then recessed in order to act as the ARCADIA REDEVELOPMENT AGENCY PRESENT: ABSENT : Members Dring, Gilb, Haltom, Saelid, Pellegrino None The Planning Director explained the content of Resolution No. 4924 and read the title, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA ADOPTING, AS THE LEAD AGENCY, THE FINAL ENVIRONMENTAL IMPACT REPORT FOR THE EAST HUNTINGTON DRIVE REDEVELOPMENT AREA AND CERTI- FYING ITS PREPARATION IN COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, STATE GUIDELINES AND CITY OF ARCADIA RULES IMPLEMENTING THE SAME." I It was MOVED by Councilman Saelid, seconded by Councilman Dring and carried on roll call vote as follows that the reading of the full text be waived: AYES NOES ABSENT: Members Dring, Gilb, Haltom, Saelid, Pellegrino None None . . It was further MOVED by Councilman Saelid, seconded by Councilman Haltom '" that Resolution No. 4924 be ADOPTED. Councilman Dring said in part that he woulg like to see the subject property rezoned commercial without any eminent domain provision and referred to a specific page in the Environ- mental Impact Report with which he could not agree. Roll call vote was then taken on the motion to adopt. AYES NOES ABSENT: Members Gilb, Haltom, Saelid, Pellegrino Member Dring None , FOLLOWING IS A SUMMARY OF THESE PROCEEDINGS. A TRANSCRIPT HAS BEEN PREPARED AND IS INCORPORATED HEREIN BY REFERENCE. Proposed sale and Disposition and Development Agreement for property commonly known as 205 - 223 E. Huntington Drive to the Hometels Develop- ment Corporation. The Assistant City Manager/Economic Development read a report dated December 16 giving the background starting with the date when negotiations began with Republic Development Company for its part~ci- pation in the development of East Huntington Drive - the area bounded by Second Avenue and Fifth Avenue, the AT & SF Railroad .aEd the 210 Freeway. The Agency had expressed its desire to have a quality hotel which was to include banquet facilities for at least 500 persons. Republic then intro- duced Hometels to the Agency. I He continued in part that Hometels has successfully developed high quality suite-type hotels in many cities throughout the country as well as cities i California with others underway. If approved pending amendments to the Gen eral Plan and Redevelopment Plan covering the East Huntington Drive area would change the current land use designation from industrial to commercial. In October of this year the Agency directed staff to enter into negotia- tions with Hometels for the purchase and development of the Agency-owned property at the northeast corner of Huntington Drive and Second Avenue. A tentative agreement was reached at a purchase price of $1.3 million subject to the Agency's review and approval of an appropriate Disposition and Devel- opment Agreement between Hometels and the Agency. -4- 12-16-80 25:0186 If approved the Agreement would obligate Hometels to construct a hotel with a minimum of 150 rooms and banquet facilities which would accommodate at least 500 guests... this obligation would be subject to the City's approval of the pending General Plan and Redevelopment Plan amendments. If the amendments are not adopted Hometels could develop the property as an industrial project. All such developments would be subject to the Agency's approval of Concept Plans and preliminary and final working draw- ings. Agency's estimated project costs: I Acquisition of site Pre-sale demolition Miscellaneous expenses (escrow, title insurance, fees stamps) $360,800 5,100 1,500 Sub-total $367,400 The proposed agreement provides that Hometels pay for demolition of the existing industrial warehouse as well as any relocation claims up to $10,000 which might be made by the warehouse tenant. Staff estimates re- location claims, if any, will be less than $10,000. Agency's estimated project revenues: , Land consideration Tax increment per annum $1,300,000 95,000 In addition to these revenues it is estimated that the project will gen- erate, as a minimum, the following revenues: Transient occupancy tax Utility users Business license $ 97,200/yr 6,000/yr 470/ yr Tota 1 $103,670 or more Consideration and financing: The total consideration for the site is comprised of a $800,000 purchase price combined with a $500,000 exclusivity fee. This is structured in order to provide Hometels the opportunity to maximize its tax deductions The proposed terms of the sale would provide the Agency, upon transfer of title, with a promissory note in the amount of $800,000 secured by a first trust deed on the property. The note will bear interest at a rate of 15% per annum and will become payable, principal and interest, thirteen months after the Hotel opens for business. It is estimated that the interest earn- ings will total approximately $340,000: I Prior to opening the public hearing Councilman Sae1id said in part that statements have been made that might mislead people in the community and he would like to make it clear that as far as any moratorium on the subject property is concerned there have been none since Decemger 1977 and what is being discussed at this meeting involves no use of eminent domain. Mayor Pellegrino declared the hearing open and Jack Rogers, Hometels Devel- opment Corporation, said he is a partner in most of its properties and re- sponsible for the management and funding of all their properties. Mr. Rogers explained the type of accommodation offered with as many comforts of home as possible. The hotel would have strong commercial characteristics with banquet facilities and a restaurant on the property. Photographs of other Hometel faciliites were then shown and described by Mr. Rogers. The Spanish motif is to be carried out. -5- 12"-16 - 80 25:0187 In response to a question by Councilman Dring Mr. Rogers said in part that they feel comfortable with the study which was made by their Certified Pub- lic Accountant ... that it indicates an occupancy at about 10 points higher than the rest of the industry... that the study or survey should not be construed as negative in his opinion. Mr. Rogers said he hoped to start construction just as soon as the legalities are completed - perhaps with- in six months .. and as far as raising the money they have determined that they can no longer move within the limitations of the mortgage market and intend to raise equity capital solely to build Hometels in the future that they will soon file a registration statement with the Securities and Exchange Commission. The exclusivity right was explained -- the City has given them the right or indicated to them that during the time that pay- ments are made for this year and next year that it will not enter into negotiations with another hotel company. These rights expire in the year of payment ... Mike Lloyd, Republic Development Company, explained his initial contact with Hometels which eventually led to a hotel under construction now in Covina; that their concept of hotels is different from the average hotel and the revised surveyor study is very positive without which you cannot obtain financing. He felt the hotel will be a benefit,to the community and the community will be pleased once it is here. '! I Dennis Loieski, 1230 Rodeo Road, representing the Arc~d~a'Exchange.Club of Arcadia, submitted action taken at a recent meeting :"Be it Resolved that the Arcadia Exchange Club adopted the position as favoring the con- struction of a hotel complex in the redevelopment area. and Resolve fur- ther that, this Resolution be presented to the City Council at its meeting of December 16, 1980." Kelvin Mason, 611 W. Duarte Road, Executive Vice President of the Arcadia Chamber of Commerce, submitted results of a survey taken of the members as to whether or not they would want a hotel in the redevelopment area .. out of 900 cards sent out 400 were returned with 375 in favor and 25 opposing. He felt that perhaps the current selling price of $1.3 million might be the catalyst which would make the area go. He spoke in favor both as a resident and for the business community. Robert Whitmore, 512 Santa Maria Road, speaking as a resident and a con- sumer. He travels a great deal in his business as a banker and has had an opportunity to stay in a Hometels facility. It has been very comfort- able and that it would be an asset to the City. He said in his 25 years in the City he hasn't seen anything happen on the subject corner and he would hope the City Council takes action on the matter before them at this time. Raymond Moffett, 453 W. Duarte Road, President-elect of the West Arcadia Business & Professional Assocation, restated the position taken by that organization and presented to the City Council on October 7 --- that it supported the concept of a hotel complex in the redevelopment area. Paul Mnoian, 501 Arbolada Drive, said in his 28 years in the City he has I seen many developments which caused controversy and after the development was in the controversy disappeared .... He noted a few of these " it was felt when the 210 Freeway was to come in it would destroy the City - this has not been the case then when the Fashion Park was to come in the same thing occurred. He felt the hotel is needed and it would be an in- justice to the people if it did not become a reality. Pat Wallace, 425 Catalpa Drive, spoke as a resident of 32 years; that her family has stayed in Hometel facilities and said they are delightful. Perry Cope, 1231 San Carlos, said he was impressed with the proposed ban- quet facilities which are needed in this active community. As a business- man he books 100 to 150 people a year staying from one week to three weeks from other cities and with this facility they could stay locally and the -6- 12-16-80 25:0188 City could receive that tax money. He also was impressed with the amount of taxes it would generate. William Knight, 57 W. Sycamore Avenue, President of the Santa Anita Oaks Homeowners Association, said in part that although the entire membership had not been polled with relation to the hotel the matter had been dis- cussed with a number of the members and no one has been opposed; as a private citizen there is a need for a prestigious quality hotel and he was in favor. I Bill Connolly, 21 S. First Avenue, speaking as a homeowner and a local businessman, explained the difficult time he has of obtaining quality reservations for groups of an organization to which he belongs. He also felt it would bring in more taxes to the City especially with the econo- mic situation in some cities and mentioned the influx of people and the money they spend in a community. He favored the hotel and how it would improve an area which is on the downgrade. David Powell, 911 Victoria Drive, said he was impressed with the quality of the development; that the price it is being sold for is fair ... the City will triple its investment. He was in favor as the negotiations stand. Terry Goins, 73 E. Duarte Road, President of the Arcadia Business Associ- ation, representing over 110 business and professional:peop1e witnin the boundary of the redevelopment area. The membership is in favor of the hotel and felt they would benefit and prosper from the project .. that it will provide additional meeting rooms and a reborn interest in the down- town shopping district. Carleton Green, 1848 Stonehouse Road, as a professional urban development specialist, said in part he has followed the hotel discussions in the news- papers and has made some independent investigations; that the hotel is a catalyst project - to get a development moving which is true whether it is a new development or an endeavor to revitalize an older area. As to the selling price he felt a hotel with meeting facilities would do far more and be far more of a community asset than another type of development which might be willing to pay say $3. million -- but that use is unknown at this time. The City needs to build a strong anchor to pull back to the east especially in view of the new Pasadena Plaza. I James R. Helms, Jr., 2220 Sewanee Lane, reviewed what has transpired in the subject area during .the years... that it used to be a very viable retail district .. the deterioration of the shopping area was very rapid and the effect could be seen on the total community. Surveys taken in- dicated that something had to be done to revitalize it before it went be- yond the point of hope. He mentioned how some of the land was developed and recalled former Community Redevelopment hearings which were very trau- matic ., there were demonstrators, people carrying placards, speakers on all sides of the spectrum " the greatest fear raised at the hearings was the spectre of condemnation .. that the City would move people out into the cold and develop some megalopolis which would help developers and do nothing for the City. This has not come to pass. He felt through redevel- opment the easterly part of town can be developed. He felt the price the City will receive is fair and he supported the transaction and commended the City Council. Councilman Dring said in part that recently the matter of exerc~s~ng emi- nent domain has been before the Council.. property involving the rest of the project area including a home with people living in it ., that the fear is alive and growing in Arcadia. Mr. Helms said in part that it is not the spectre it was origianlly thought to be - he does not anticipate any abuse of the eminent domain power and submitted that he represents clients who are experiencing this very problem - that they are not fearful and neither is he for them. -7- 12-16-80 25:0189 Councilman Saelid said the property referred to by Councilman Dring has been on the market for some time and Council has authorized the developer to approach those people and try to negotiate some kind of an agreement .. that Council and the Agency have always taken the position that it exhaust every possiblity of negotiating a price before eminent domain. Mayor Pellegrino then called for those who would like to speak in opposi- tion. Walter Muller, owner of the Westerner Inn, expressed concern at the pro- spect of a new hotel coming into the City.. that he was not given any subsidizing when he came into the City " he paid the market price for everything. He felt the subsidy Hometels would be receiving is a lot of money for the public to pay. He felt the land should be made available I at the market price. He referred to the feasibility study prepared by, in his opinion, the most outstanding hotel accountants in the country to which attention has not been given. He felt a new hotel can't bring people into the community and mentioned that the new hotel in Monrovia is not happy with its occupancy. He has heard some local people say they would be happy to buy the land for $1,300,000 but it wasn't offered to them ... that in his opinion that isn't right. Larry Palmer, Assistant Manager of the Howard Johnson Hotel in Monrovia, said in part that their occupancy is decent - not outstanding - that they thought they would have a better market than they do. Sherry Passmore, 1109 Columbia Road, said in part that there is already an agreement signed which includes the use of eminent domain and there are maps locating those already in progress... -that all that is necessary is the zone change and to implement the plan and its done. As to the tax base it should be understood that all of the property tax increment will go to the redevelopment agency which will go to other owners of other pro- perties or have those properties taken away from people who think they would like to make a profit on their investment. At this point Councilman Saelid said in part that the City and the School District would benefit by something in excess of $250 per year from those property taxes with the increment of some $95,000 going to the Agency. Staff responded to questions of Mrs. Passmore concerning the bodily in- jury and property damage insurance policy in an amount of one million dollars. Mrs. Passmore continued in part by referring to the possiblity of not being able to provide adequate police and fire protection with the advent of the new facility. She was not against a hotel - but against giv- ing away tax dollars as public gifts. She favored the free market place. Mrs. Passmore also referred to a notice which purportedly was sent to Mr. Passmore concerning the EIR. He did not receive such a notice which was to have gone to him as President of a Homeowners' Association and is So noted on the list. Councilman Saelid then commented that these lists are not always updated and suggested that changes should be sent to the City. Herb Fletcher, 175 W. Lemon Avenue, brought up the senior citizen housing. He suggested that before completing the subject transaction that Council I consider using this land for that purpose and if they decide against it they so advise the public who voted for senior citizen housing. He would like to know the true value of the subject property and felt the public should know how much money is being subsidized. He also felt it should be placed on the ballot and let the people decide if they want a hotel. Ernest Fox, 731 Fairivew Avenue, propounded questions and staff responded in part that it had interviewed five developers for the redevelopment area and narrowed it down to the Republic Development Company; that the avail- ability of the land was not advertised nationally and that Republic would DOt receive a finder's fee or commission in the sale of this property for a hotel. The necessity of obtaining a financial statement of the Hometels Development Corporation was discussed and Mr. Fox was assured that this will be done. Mr. Fox continued in part that in his opinion housing for -8- 12-16-80 c 25:0190 the senior citizens should be the first priority. He also felt that an opportunity is here for the City to make some money in excess of the $1.3 million and he could not understand why the taxpayers are not entitled to make that extra profit. No one else desiring to be heard the hearing was CLOSED on MOTION by. Councilman Gilb, seconded by Councilman Saelid and carried unanimously. I Councilman Saelidthen stated in part - in the beginning he had voted against the acquisition of the subject property as he was concerned at that point that many agencies tend to acquire property and write down the values substantially in order to bring investments into the community... there are examplesof where properties have been literally given away in order to bring industry or commercial ventures into various communities. In the subject case an appraisal has been made based on the highest and most intensive use of the property.. assuming there was some kind of market for it it could bring in as much as $3.5 million but an appraisal isn't any good unless there is someone willing to pay that however, there hasn't been any appreciable development in that area for many years. Council is now talking about a total investment in the development of about ten million dollars .. if you take $1.3 million out of that you're going to come out with $8.7 million and according to the industry standards the cost of property for hotel developments in Southern California approxi- mates 15% of the improvements costs and although it appears strange but if you take 15% of $8.7 million you come out with about $1.3 million.' He continued further in part that in his opinion the facilities constructed by Hometels are quality developments and explored his own experience of staying in one of the hotels. They have an excellent reputation. He felt that at least now there is some vitality in the subject area and he per- sonally was pleased with what is being considered now... the sale of the property to a developer who is going to hopefully come into the City with a very fine development and with all of the constraints which are part and parcel of the Development and Disposition Agreement it will be just that. Councilman Dring stated in part that he takes a different position from that of Councilman Saelid -- that it is agreed the zoning must be upgraded for the area and while he recognizes it might not be possible to secure $3.5 million at the highest use that selling it at 57% discount off that appraised figure would be ludicrous and almost a give-a-way. He referred to portions of a proposed Resolution (No. 4926) which he felt were not true and submitted in part that since Proposition 13 the City has increased its assets $8.8 million which is a 38.5% increase not including reevaluation of assets and over $5.1 million in the cash investment posi- tion of the City alone. And with reference in the Resolution to the area as being blighted he felt there is no legal justification for that as in his opinion the area may be under-developed but not blighted. He recognized that there will be banquet facilities which the Council has desired all along but to him it is a lot of money for such facilities and the question should be put to the people. I Reference was then made by Councilman Dring to the ARA Resolution (No. 61) stating that the developer possesses the qualifications and financial re- sources to acquire and insure the development... that he has never seen a financial statement .. that Council does not have a list of the principle officers in Hometel Corporation .. this to him is not a solid business proposition. He was not against a hotel... but against the circumstances under which Council is endeavoring to put this through .. the hotel is be- ing subsidized and although it is a good one, he was not sure it is right. He felt the area should be upgraded by rezoning and then let private enter- prise enter and do what it can do much more efficiently, economically and better than the five Councilmen who are not developers. He also felt using the property for senior citizen housing is not so far off as that determina- tion is not an open and closed issue. -9- 12-16-80 RESOLUTION NO. 4925 ADOPTED ARA RESOLUTION NO. 60 ADOPTED RESOLUTION NO. 4926 ADOPTED 25:0191 In response to an inquiry by Councilman Saelid the City Attorney stated that there is nothing improper in the wording in the resolution. Councilman Haltom MOVED that a Disposition and Development Agreement be entered into with Hometels Development Company with the change in the developer's exclusivity fee as agreed upon previous to this meeting - $800,000 with $400,000 payable before the execution of the agreement by the Agency.and $400,000 at the close of escrow. MOTION DIED FOR LACK OF A SECOND. At this point in the proceedings Mr. Rogers responded to questions and said in part that they have bargained with staff in good faith and that they are buying exclusivity for a very fragile period of time; that there is a certain amount of value that can be assigned to that exclu- sivity .. that they have been advised to do exactly as they are by their tax counsel. I Councilman Saelid presented Resolution No. 4925, read the title, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA MAKING ENVIRON- MENTAL FINDINGS NECESSARY FOR THE INDUSTRIAL USAGE CONTEMPLATED IN THE PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BY THE ARCADIA REDEVELOP- MENT AGENCY WITH HOME TEL DEVELOPMENT CORPORATION FOR THE SALE AND DEVEL- OPMENT OF 205-223 EAST HUNTINGTON DRIVE IN THE CENTRAL REDEVELOPMENT PRO- JECT." It was MOVED by Councilman Saelid, seconded by Councilman Dring and carried on roll call vote as follows that the further reading of the full text of,Resolution No. 4925 be waived. AYES NOES ABSENT: Dring, Gilb, Haltom, Saelid, Pellegrino .. Councilmen None .None It was further MOVED by Councilman Saelid, seconded by Councilman Gilb and carried on roll call vote as follows that Resolution 4925 be ADOPTED. AYES NOES ABSENT: Councilmen Gilb, Saelid, Pellegrino Councilmen Dring, Haltom None Agency Member Saelid then presented ARA Resolution No. 60, read the title, entitled: "A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY MAKING ENVIRONMENTAL FINDINGS NECESSARY FOR THE INDUSTRIAL USAGE CONTEMPLATED IN THE PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BY THE ARCADIA REDEVEL- OPMENT AGENCY WITH HOMETEL DEVELOPMENT CORPORATION FOR THE SALE AND DEVEL- OPMENT OF 205-223 EAST HUNTINGTON DRIVE IN THE CENTRAL REDEVELOPMENT PRO- JECT." It was MOVED by Member Saelid, seconded by Member Dring and carried on roll call vote as follows that the further reading of tne full text of ARA Resolution No. 60 be waived. I AYES NOES ABSENT: Members Dring, Gilb, Haltom, Saelid, Pellegrino None None It was further MOVED by Member Saelid, seconded by Member Gilb and carried on roll call vote as follows that ARA Resolution No. 60 be ADOPTED. AYES NOES ABSENT: Members Gilb, Haltom, Saelid, Pellegrino Member Dring None Councilman Saelid presented, read the title of Resolution No. 4926 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDERATION TO BE RECEIVED BY THE ARCADIA -10- 12-16-80 I A R A RESOLUTION NO. 61 ADOPTED I INDUSTRIAL PARK DEV. APPROVED 25:0192 REDEVELOPMENT AGENCY PURSUANT TO CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT BY THE ARCADIA REDEVELOPMENT AGENCY WITH HOMETELS DEVELOPMENT CORPORATION FOR THE SALE AND DEVELOPMENT OF 205-223 EAST HUNTINGTON DRIVE IN'llIE CENTRAL REDEVELOPMENT PROJECT: APPROVING THE PROPOSED SALE OF SAID REAL PROPERTY: AND APPROVING THE DISPOSITION AND DEVELOPMENT AGREEMENT PERTAINING THERETO; AND MAKING NECESSARY ENVIRONMENTAL FIND- INGS IN COMPLIANCE WITH LAW." It was MOVED by Councilman Saelid, seconded by Councilman Dring and carried on roll call vote as follows that the further reading of the full text of Resolution No. 4926 be waived. AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None Councilman Saelid then MOVED for adoption with the requirement that a proper and acceptable financial statement with Hometels Development Corporation, determined by the City staff, be received. Motion seconded by Councilman Gilb and carried on roll call vote as follows: AYES NOES ABSENT: Councilmen Gilb, Saelid, Pellegrino Councilmen Dring, Haltom None Member Dring then presented and read the title of ARA Resolution No. 61, entitled: "A RESOLUTION OF THE ARCADIA REDEVELOPMEN.T AGENCY MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDERATION TO BE RECEIVED BY THE ARCADIA REDEVELOPMENT AGENCY PURSUANT TO A CERTAIN DISPOSITION AND DEVEL- OPMENT AGREEMENT BY THE ARCADIA REDEVELOPMENT AGENCY WITH HOMETELS DEVEL- OPMENT CORPORATION FOR THE SALE AND DEVELOPMENT OF 205-223 EAST HUNTING- TON DRIVE IN THE CENTRAL REDEVELOPMENT PROJECT; APPROVING THE PROPOSED SALE OF SAID REAL PROPERTY AND THE DISPOSITION AND DEVELOPMENT AGREEMENT PERTAINING THERETO; AND AUTHORIZING THE EXECUTION AND IMPLEMENTATION OF SAID DISPOSITION AND DEVELOPMENT AGREEMENT: AND MAKING NECESSARY ENVIRON- MENTAL FINDINGS IN COMPLIANCE WITH LAW. " It was MOVED by Member Dring, seconded by Member Haltom and carried on roll call vote as follows that the further reading of the full text of ARA Resolution No. 61 be waived. AYES NOES ABSENT: Members Dring, Gilb, Haltom, Saelid, Pellegrino None None The Agency Counsel noted changes on page 2, Section 107 of the Disposition & Development Agreement; end of the paragraph, add a semi-colon and the words "and provided that the developer obtains the Agency's prior written consent, which shall not be unreasonably withheld." The Grant Deed (attachment No.6) does not contain the covenant referred to in Section 202 requiring that the promise to pay the promissory note not run with the land. Member Gilb MOVED to adopt this resolution with the conditions outlined by the Agency Counsel. Roll call vote as then taken. AYES NOES ABSENT: Members Gilb, Saelid, Pellegrino Members Dring, Haltom None Consideration of proposed Industrial Park Development at 119-127 La Porte Street. The Agency received staff's analysis of the development which would comprise two buildings with a total gross footage of 13,482 sq. ft. It was noted that there will be 25 parking spaces instead of the required 27. -11- 12-16-80 A R A FUND TRANSFERS APPROVED ADJOURNED TO JAN. 6 1981 ANNEXATION PROPOSAL Jan. 20 1981 HEARING January 6 HEARING January 20 WATER PURCHASE 25:0193 With the exceptions of some modifications outlined in staff report dated December 16 the plans are compatible with the standards and other require- ments set forth in the Redevelopment Plan. It was MOVED by Member Gilb, seconded by Member Haltom and carried on roll call vote as follows that the Executive Director be directed to approve the preliminary plan subject to the outlined modifications and that the Executive Director also be authorized to approve the final construction plan if it is in substantial compliance with the approved preliminary plan. AYES NOES ABSENT: Members Dring, Gilb, Haltom, Saelid, Pellegrino None None The Finance Director explained that the ARA Fund owes the General Fund $110,402 for prior years operating expenses. The Redevelopment Fund owes the Redevelopment Tax Increment Fund $300,339 as of June 30 .. Based on the final audited fund balances listed in the fiscal year 1979-80 finan- cial reports of the Agency transfers were recommended in the staff report dated November 25. Such transfers would leave a balance of $99,259 in the Redevelopment Fund. The adopted operating budget this fiscal year totals $91. 715. I It was MOVED by Member Dring, seconded by Member Gilb and carried on roll call vote as follows that the recommendation be APPROVED. AYES NOES ABSENT: Members Dring, Gilb, Haltom, Saelid, Pellegrino None None The meeting adjourned to January 6, 1981 at 7 p.m. AUDIENCE PARTICIPATION Ed Jenkins, 9714 Callita, (Arcadia Post Office Address) asked the City Council to consider annexing the area west of the City boundary currently within unincorporated area of Los Angeles County. It was MOVED by Councilman Gilb, semnded by Councilman Saelid and carried on roll call vote as follows that staff be directed to obtain addition- al information and submit to Council at the regular meeting of January 20, 1981. AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None CONSENT ITEMS SCHEDULED public hearing for January 6 on. the tenta tive map of Tract No. 41251 for a 16 unit residential condominium at 841 - 849 Fairview Avenue. I SCHEDULED public hearing for January 20 on Planning Commission recommen- dation concerning R-2 medium density multiple family residentail zoning regulatio,,"s. APPROVED the purchase from the City of Sierra Madre of up to 1764 acre feet of water at $55 per acre foot for 1980-81 and AUTHORIZED the Mayor and City Clerk to execute an agreement for said purchase in form approv- ed by the City Attorney. ADVERTISE APPROVED the specifications for the replacement of controller equipment FOR BIDS at Foothill and Santa Anita and AUTHORIZED the City Clerk to advertise (Traffic for bids. Estimated cost of this equipment is $27,000 to $30,000. Funds Signal are available in the Gas Tax Account. Modifica tion) -12- 12-16-80 EQUIPMENT PURCHASE (Foamaker Genera tor) VEHICLE PURCHASE (VAN) EQUIPMENT PURCHASE (Crack Sealer) I VEHICLE PURCHASE (Police) CANCEL BID AND REAWARD (Repa ir tower at Library) CANCEL BID AND REAWARD (Vehicle) TRAFFIC (Race Meet) DIAL-A-RIDE I 25:0194 AUTHORIZED the purchase from Pacific Sewer Maintenance Company for one Foamaker Generator Skidmount Model SKU for root control in sewers in the amount of $8,555. Funds in the 1980-81 Sewer Maintenance Budget. APPROVED the purchase of one Van for the Engeineering Division for survey work from El Monte Motor Company in the amount of $8,098.40. Funds in the Equipment Replacement Fund for 1980-81. APPROVED the purchase of one Crack Sealer from Sahuaro Petroleum and Asphalt Company for a total of $11,850. Funds are in the Capital Im- provement Projects Account for 1980-81. APPROVED the purchase of two Chevrolet Citations from Guaranty Chevrolet Company in the total amount of $16,934.18. These will be used by the Police Department for detective units. Funds are in the Federal Revenue Sharing Fund for 1980-81. Pursuant to recommendation of staff the bid awarded for the replacement of the glass tower at the Library to Live Oak Glass Company was cancelled due to the inability of the vendor to schedule the work and the.bid sub- mitted by the Arcadia Decorating Center for a total of $4,665 was accept- ed and the award was made to said firm. The work may.start at onc~. Funds for this project are in the Capital Improvement Budget for 1980-81. Pursuant to recommendation of staff the bid awarded for the purchase of one 3/4 ton truck to Mark Christopher Chevrolet was cancelled at 'the re- quest of the vendor and the bid submitted by Mission Chevrolet was ac- cepted in the amount of $9,473.53. Funds are in the Revenue Sharing Account for 1980-81. APPROVED an appropriation of $212,343 for traffic control by the Police Department for the 1980-81 Thoroughbred Race Meet. ALL OF THE ABOVE CONSENT ITEMS WERE APPROVED ON MOTION BY COUNCILMAN DRING, SECONDED BY COUNCILMAN GILB AND CARRIED ON ROLL CALL VOTE AS FOLLOWS: AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None Council. received the audit report of the Transit Fund for the Dial-A-Ride Program for fiscal years ending June 30, 1979 and June 30, 1980. Report on file in the office of the City Clerk. It was MOVED 'by Councilman Dring, seconded by Councilman Gilb and carried on roll.call'vote as fol'lows that: 1. Authorize a loan of $39,050 from the General Fund to the Transit Fund in anticipation of receipt of $39,050 of Urban Mass Transit Act, Section 5 Operating Funds for the fiscal year 1979-80. 2. Authorize the transfer of $5,300 from the General Fund to 'the Transit Fund as the City's portion of the local contribution to the 1979-80 Operating costs. 3. Authorize the $2,640 of UMTA Section.8 funds ,received July 18, 1980 to be applied to 1979-80 Operating costs, and 4. Authorize a loan of $60,969 from the General Fund to the Transit Fund in anticipation of receipt of $60,969 of UMTA Section 5 and Section 8 funds for fiscal year 1980-81. AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None -13- 12-'.16-80 DEFERRED COMPENSATION (EMPLOYEE) RESOLUTION NO. 4929 ADOPTED CANOPy REQUEST DENIED RESOLUTION NO. 4927 ADOPTED RESOLUTION NO. 4928 ADOPTED SAELID 25:0195 Council received the recommendation of staff for the amendment of the Employee's Deferred Compensation Plan. The Finance Director explained amendments to incorporate the changes in Federal and State regulations governing deferred compensation plans. Councilman Dring presented and read the title of Resolution No. 4929 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA ADOPTING AN EMPLOYEES' DEFERRED COMPENSATION PLAN AND AUTHORIZING THE EXECUTION OF AGREEMENTS RELATED TO SAID PLAN BY THE PLAN ADMINISTRATOR." It was MOVED by Councilman Dring, seconded by Councilman Gilb and carried on roll call vote as follows that the further reading of the full text of Resolution No. 4929 be waived and ADOPTED. AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None I The new operator of Pellegrino's Restaurant, 101 S. First Avenue, had requested a canvas/fabric canopy to be attached to the existing building to project over the pedestrian right-of-way (sidewalk area) adjacent to First Avenue. The Planning Department recommended denial of the request as submitted. (See report dated December 16, 1980). The standards under which an awning or canopy would be permitted were also set forth in said report. It was MOVED by Councilman Saelid, seconded by Councilman Haltom and carried on roll call vote as follows that the request be and it is hereby DENIED. AYES NOES ABSTAIN: ABSENT : Councilmen Dring, Gilb, Haltom, Saelid None Mayor Pellegrino (due to his business interest) None The City Attorney presented, explained the content and read the title of Resolution No. 4927, entitled: "A RESOLUTION OF THE CITY COUNCIL OF TIlE CITY OF ARCADIA APPROVING AI> AMENDMENT TO ARTICLE XIV OF THE BY-LAWS OF THE INDEPENDENT CITIES RISK MANAGEMENT INSURANCE JOINT POWERS AUTHORITY. " It was MOVED by Councilman Gilb, seconded by Councilman Haltom and carried on roll call vote as follows that the further reading of the full text of Resolution No. 4927 be waived and ADOPTED. AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None The City Attorney presented, explained the content and read the title of Resolution No. 4928, entitled: '~RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA ORDERING THE ANNEXATION TO AND DETACHMENT Of CERTAIN LANDS FROM THE ARCADIA CONSOLIDATED LIGHTING DISTRICT (ANNEXATION NO. 10)." It was MOVED by Councilman Dring, seconded by Councilman Saelid and carried on roll call vote as follows that the further reading of the full text of Resolution No. 4928 be waived and ADOPTED. I AYES NOES ABSENT: Councilmen Dring, Gilb, Haltom, Saelid, Pellegrino None None Express~d appreciation for the Christmas Trees presented to the various City facilities by Councilman Gilb and complimented the Recreation Depart- ment on the decorations throughout City Hall. At his suggestion the Arcadia High School Band will be presented with an -14- 12-16-80 I I DRING ADJOURNMENT January 6 198 1 25:0196 appropriate commendation for its superior winning for the third time. Also commended the Police Department on the report indicating what it felt it could do to improve services and suggested that the Council study the contents. Referred to the sewer system report which is forthcoming in January. At 1 a.m. December 17 the meeting adjourned to January 6, 1981 at 7 p.m. ~~~?pe() Mayor - ~aL City Clerk " -15- 12-16-80