HomeMy WebLinkAboutOCTOBER 10,1961
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M I NUT E S
CITY COUNCIL OF THE CITY OF ARCADIA
ADJOURNED REGULAR MEETING
OCTOBER 10, 1961
Pursuant to the order of adjournment of the regular meeting of the City
Council of October 3, 1961, the City Council of the City of Arcadia met
in regular adjourned session in the Council Chamber of the City Hall at
7:00 P.M., October 10, 1961.
PRESENT :
ABSENT:
Councilmen Butterworth, Camphouse, Reibold, Phillips, Balser
None
The matter of the possible acquisition of the so-called Cadwallader
property was opened for discussion. The Administrative Assistant to the
City Manager stated in part that since the Council authorized the City
Manager to secure a six months option to acquire said property the
P. E. Railway Company land had become available to the City; that it is
presently the recommendation of the City Manager's office that the offer
to the Cadwallader people not be changed and if anything withdrawn; that
if left as is, the financial position of the City be studied in the
middle of December.
In answer to Council's query as to whether it is the desire of the City
Manager to withdraw the Cadwallader authorization at this point, the City
Manager Pro Tempore stated in part that he felt the financial position of
the City should be studied and specifically that the matter be held in
abeyance until at least Spring, at which time the City's financial
position could be re-evaluated; that he would not recommend a $5000.00
option on this property with the anticipation that in six months the City
would be in financial position to purchase the property.
In the general discussion that followed it was stated that perhaps the
owners would not be agreeable to an option; that by the City withdrawing
from the deal the owners would be free to proceed with a sale of the property
to someone else; that if the property is not sold within six months the
City might then wish to resubmit its offer.
Mr. Fred K. Cadwallader, one of the owners of the subject property,
addressed the Council, and chronologically explained the situation and
the owners' interpretation of the proceedings to date, stating in substance
that he had been advised by the City Manager in February, 1961 that the City
was interested in his property; that on the basis of information forth-
coming from the City Manager, said property had been removed from the
market and appraisals made by appraisers of both the owners (between
$113,000 to $132,000) and the City (between $85,000 and $104,000); that
during the interval and in anticipation of the sale they dissolved their
corporation for tax purposes; that they have suffered monetarily from loss
of rentals or sale of said property to other prospective purchasers due to
an alleged condemnation cloud; that in their conversations with the City
Manager there was no question as to availability of funds, only the matter
of price, and that they were surprised to receive a letter from the City
Manager to the effect that now the City desired an option to buy the
property. That their price for the property was based on a figure of
$1.00 per square foot although property adjacent to theirs had recently
been sold for $1.50 per square foot, the reason for this being, in their
opinion, one of zoning; that they had reduced their price $15,000 and that
they would like to have the City fulfill its promise made last February
through the City Manager.
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Upon being questioned as to his statement that the subject property was
under a condemnation cloud, Mr, Cadwallader explained in substance that
in negotiating with the City for the purchase of the property the threat
of condemnation would eliminate other prospective purchasers.
The City Attorney then read a portion of a letter dated May 3, 1961
from the City Manager to the Cadwallader-Pacific Company, to wit:
"......however, since we do not contemplate condemnation action in the
matter we feel free to quote the figures and to offer you an opportunity
to review the complete contents of the appraisal...." and added that said
letter should speak for itself in that particular respect. That in his
opinion, Mr. Cadwallader probably meant that'the City may have the power
of condemnation rather than the threat that it would use it. I
It was then stated, in answer to Mr. Cadwallader's query as to whether the
City intended buying the property in 1961, that during his last meeting
with the City Manager it had been stated, among other things, that there
was some apprehension on the part of some members of the Council that
because of the "war situation" the race track, which opens December 26, 1961,
might not open with the resultant loss of anticipated revenue therefrom;
however, that if it did open something could be worked out on that basis.
Mr. Theodore Francisco, another owner of the subject property, then
addressed the Council, and in part stated that if the property was not
sold this year they would be financially hurt from a tax standpoint; that
in good faith they had dissolved their corporation for tax purposes and
that unless the property is sold in 1961 they would be financially
embarrassed.
It was then again stated that the City could not commit itself unless it
had funds available; also that no commitments could be made by the Council
as to the zoning of the property in order to facilitate a transaction of
this type, and that the Council has no other alternative but to withdraw;
that even outside financing could not be considered as the Council cannot
anticipate future revenues.
Whereupon Councilman Carophouse MOVED that the City withdraw its option
offer inasmuch as it appears that the City and the owners of the subject
property are not together on price; that the option arrangement does not
work out for the best tax benefits of the owners of the subject property
and that the best interests of the citizens of Arcadia would be served
by permitting the owners to place the property on a free market. Council-
man Phillips seconded the motion which was carried on roll call vote as
follows:
AYES: Councilmen Butterworth, Camphouse, Reibo1d, Phillips, Balser
NOES I None
ABSENT: None
Further discussion developed. Mr. Cadwallader stated in part that they
did not have an offer of a price, only suggestions that they lower their I
price, and requested that a firm offer be made at this time as to what
price would be satisfactory, and then to grant them a few days time
within which to discuss the matter with Mr. Shannon, the third owner of
the property, after which they would give the City a firm answer.
Councilman Camphouse stated that he had specifically not referred to the
price the City would offer in order not to set a price at which other
prospective buyers might aim,
The City Attorney summarized the City's situation in this matter by stating
in part that as a result of preliminary studies the City'Manager was
authorized to negotiate a purchase of the subject property; that the
intervening months were then spent in attempting to arrive at a mutually
satisfactory figure; that such figure apparently has never been reached
by both sides; that what the Council has stated at this meeting is that
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DUARTE ROAD
PROPERTIES
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they feel it would be only fair to the owners to rescind the authorization
to the City Manager to secure an option for six months and that the owners
be free to deal with the property without any hold on it, express,
implied or otherwise, on the part of the City; that when the City is in
financial position to make a deal, if the subject property is still avail-
able they may reopen negotiations at that time; that the City would probably
likewise study other sites or a revision of their planned expansion to
coincide with available funds.
Mr. Francisco then read the following excerpt from a letter dated
September 27, 1961 from the City Manager: ".,..the Council feels that
if financially possible we should acquire the p~operty in question.
They have therefore authorized this office to secure an 180 day option
to purchase the property for a total of $105,000 with $5000 to be paid
upon the execution of the option. May we hear from you in this matter."
That this was actually what they had come to this meeting to discuss -
whether or not this could be modified in a way where they could have the
property in escrow before the end of 1961 and that he'understood the
quoted excerpt as a firm statement authorizing the City Manager's office
to attempt to secure an 180 day option on said property.
Councilman Camphouse then stated that 1) if the owners are willing to
accept the option the Council, in his opinion, would be obligated to
proceed; and 2) if the owners are agreeable to the City's price, then
in his opinion the City is almost committed to proceed.
It being the consensus of the Council that they agreed with Councilman
Camphouse's statement, Mayor Balser suggested that the owners of the
subject property contact the City Manager after October 26, 1961 (his
anticipated return to the City).
Councilman Camphouse MOVED at 7:50 P.M. that the meeting adjourn to the
Conference Room. Councilman Phillips seconded the motion which was
carried unanimously.
At 7:55 the meeting reconvened in the Conference room.
Discussion held on the report from the City Manager on properties recently
purchased by the City located on Duarte Road, said report .containing estimated
costs of painting, papering, and repairing as a condition toward the possible
leasing of 68, 72 a~d 82 West Duarte Road; also the estimated cost of
demolishing present structures and the clearing of the properties.
Anticipated returns by the leasing of the properties was also set forth
in said report,
It being the consensus of the Council that the complete clearing of these
properties with the possible salvaging of trees in good condition, would
lead to a general improvement of the area, Councilman Camphouse ~
that authorization be given the City Manager and the Purchasing Officer
to call for bids for the removal of all the structures located on 68, 72
and 82 West Duarte Road, and that the Director of Public Works submit an
estimate of the cost of final clearing after said improvements have been
removed. Motion seconded by Councilman Reibold and unanimously carried.
Councilman Camphouse further MOVED that the City offer the area to_ the
School District to use as parking and that the staff submit an estimate
of the cost of paving the balance of land at the Library to be used for
parking purposes. Councilman Reibold seconded the motion which was
carried unanimously.
Discussion held on the report from the City Manager on the possible resale
of certain excess properties purchased from the Pacific Electric
Railway Company. Attached to the report was a recommendation regarding
location of the new Santa Clara Street and the properties lying south
of the new right of way which are proposed for disposal. Pertinent
factors for consideration in setting a price on excess lands was
incorporated there. (Letter on file in office of the City Clerk).
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ORD INMlOE:XED
NO. 1149
(Adopted)
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HOUSEMOVERS
ORDINANCE
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YOUTH HUT
(Bonita
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Various percentages in possible re~overy of part of the cost of the
street extension in the price of the land being offered for sale were
reflected in said report. The recommendation of the City Manager being
that the City offer those properties south of the right of way at the
price of $2.20 per square foot, and that portion north of the right of
way at $2.05 per square foot, providing a proper use of the land is
proposed which would not include manufacturing.
After further review of the map of the area and discussion on the price
per square foot, Councilman Camphouse ~ that the staff recalculate
the square foot figures for purposes of sale, taking into consideration
cost of right of way to be used for the street, one half of the cost of
street improvements and to be defrayed in part by the sale of property on
the south side of the street to the property owners adjacent thereto t
and the balance of the cost of property acquisition and street improvement
to be paid through the sale of City property on the north side. Motion
seconded by Councilman Phillips and unanimously carried.
The Director of Public Works advised that the State Highway Division is
now considering route adoption for the Foothill Freeway from Lincoln
Avenue in Pasadena to 1500 feet east of Michi11inda in Arcadia and that
the matter will appear on the agenda for October 17, 1961.
It was ~ by Councilman Camphouse, seconded by Councilman Phillips and
unanimously carried, that the request of the Arcadia Community Chest for
permission to place 300 posters on lamp standards throughout the City be
granted, Said posting to begin October 21, 1961 and removed December I, 1961.
The City Attorney presented and read in its entirety Ordinance No. 1149
entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, AMENDING THE ARCADIA MUNICIPAL CODE BY AMENDING THE TITLE OF
PART 1 OF CHAPTER 2 OF ARTICLE II; BY REPEALING DIVISION 1 OF PART 1 OF
CHAPTER 2 OF ARTICLE II THEREOF; BY ADDING A NEW DIVISION 1 COMPRISING
TITLES 1 AND 2 THERETO; AND BY REPEALING SECTION 2212.3."
MOTION by Councilman Camphouse, seconded by Councilman Phillips and
carried on roll call vote as follows that Ordinance No. 1149 be adopted;
AYES: Councilmen Butterworth, Camphouse, Reibo1d, Phillips, Balser
NOES: None
ABSENT: None
The City Attorney presented each member of the Council with a preliminary
draft of a housemovers ordinance.
MOTION by Councilman Camphouse, seconded by Councilman Phillips and
carried unanimously that the matter of the possibility of a local service
club building a youth hut at Bonita Park was referred to staff for report
back to Council.
MOTION by Councilman Reibo1d, seconded by Councilman Phillips and carried
on roll call vote as follows that Mayor Balser, Councilmen Camphouse,
Butterworth and Phillips be authorized to attend the League of California
Cities Conference to be held in San Francisco October 22, 1961 to October
25, 1961; that expenditures in connection therewith be paid by funds
budgeted for that purpose and substantiated by an itemized expense state-
ment upon their return;
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AYES: Councilmen Butterworth, Camphouse, Reibold, Phillips, Balser
NOES: None
ABSENT: None
The meeting was adjourned to an Executive Session at 8:55 P.M.
The meeting reconvened at 9:15 P.M.
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CIVIL
DEFENSE
BOARD
(Appointments)
Mayor Balser accepted the names of persons recommended for .appointment to
the Civil Defense Board.
It was MOVED by Councilman Camphouse, seconded by Councilman Butterworth and
carried unanimously that the following appointments be made in accordance
with the City Charter:
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Joseph C. Boggio I "1,-1
Kenneth Mergen If')
Edward E. Simpkins /9'.5-
Robert Dow / ,<J
James Parker 11'6'"
James Lee - I?GJ-
Representative from the School District to be
recommended by the School Board and later
appointed by the Council.
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Mayor Balser commented that he would contact the President of the School
Board on this appointment.
Meeting adjourned at 9:30 P.M.
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May BaIse
ATTEST:
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City Clerk '
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