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HomeMy WebLinkAboutOCTOBER 10,1961 1,= OML Jf6Y-Y lNDEXED I 14: 5494 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the recommendation of the City Manager's office that the offer to the Cadwallader people not be changed and if anything withdrawn; that if left as is, the financial position of the City be studied in the middle of December.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. 1. 10-10-61 .1:: . , "~I' {r.....p iIWDEXED 14:5495 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 2. 10-10-61 I J-rj '/:6 DUARTE ROAD PROPERTIES :J- 8~O !:lND4E:n I PACIFIC ELECTRIC PROPERTIES :f ('1(P ;'~ ,. ' :'., 14:5496 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). !/iDEXED 3. 10-10-61 FREEWAY ROUTE J :.11 INDEXED COMMUNITY CHEST {2: f,R. CIVIL DEFENSE rL <? '.' ,..~ -.:T 0 _1 ~ ORD INMlOE:XED NO. 1149 (Adopted) y.. 'l?':; ;j llIDEXED HOUSEMOVERS ORDINANCE /VSP YOUTH HUT (Bonita Park~:1ID~T . J' i/j/ CONFERENCE ATTENDANCE (League of Calif. Cities) ;V5; 14:5497 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; I 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. 4. 10-10-61 \ 14:5498 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: I ClNDEXEn 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. J15 ~ ,. .:f,~ Mayor Balser commented that he would contact the President of the School Board on this appointment. Meeting adjourned at 9:30 P.M. ~ May BaIse ATTEST: ~U~~ City Clerk ' I 5, 10-10-61