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HomeMy WebLinkAboutOCTOBER 14,1980 (2) CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED ANn"ON FILE IN THE OFFICE OF TIlE CITY CLERK ,. 25 :0139 MINUTES CITY COUNCil. OF THE CITY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING OCTOBER 14, 1980 IMU The City Council and the Arcadia Redevelopment Agency met in an regular session on October 14, 1980 at 7:00 p.m. in the Arcadia Conference Room, adjourned City Hall CAu.. PRESENT: ABSENT : Councilmen Dring, Gi1b, Haltom, Saelid, Pellegrino None A R A PRESENT: ABSENT : Members Dring, Gilb, Haltom, Saelid, Pellegrino None TRANSCRIPT HAS BEEN PREPARED ON THE FOLLOWING SUMMARIZED PROCEEDINGS. Discussion ensued on the terms and conditions of the proposed agreement between the Arcadia Redevelopment Agency and Goldrich & Kest Associates for a senior citizen development. Robert Hirsch spoke at length submit- ting in part that it is their recommendation that consideration be given to constructing two smaller units rather than one say for 120 units or more; that HUD or the California Housing Finance Agency would probably be more favorable to this type of facility. He cited an instance where HUD would not accept more than 50 units in one given location; that it will undoubtedly be difficult to locate a site large enough for more than that number and that HUll would probably only consider the smaller number of units under Section 8 Subsidy Program .. that it would be pos- sib Ie to submit a second application but it would be their recommenda- tion to focus on obtaining maximum funding the first time around. Including the land units would cost approximately $50,000 each to con- struct ." land cost is somewhere in the $10,000 per unit bracket and in Arcadia it will probably be a problem because of the higher density of the land .., that the most they could probably obtain in funding would be 90% or about $45,000 ... perhaps less, I Mr. Hirsch explained that the units would not be sold ,.. that the company manages their own units and explored in detail how the manage- ment fee is established by HUD. In response to questions Mr. Hirsch said in part that they would eventually record a covenant restricting the property to senior citizen use for a period of say 40 years that the City is entitled to be given a guarantee that when the loan is paid off it will remain for the same use. ( Steps necessary to commence the program were explained; following the execution of an agreement they would endeavor to locate the land with the help of the Agency; the architects would then design a type of fa- cility; the Senior Citizen Committee would review the design and then the Agency.. if approved then the tons of paper work required would be accomplished and submitted to HUD and/or the California Housing Fi- nance Agency.. there would then ~e a waiting period, If all goes well and the project is completed a Certified Public Accountant will examine their books, certify to his audit to ascertain whether or not they have spe nt more than the 90% loan. During these proceedings a replacement cost is also placed on the facility. The proposed agreement provides for the Agency to review the concept plans, the architectural design; the Agency and the developer have to -1- 10-14-80 EXECUTIVE SESSION and RECONVENED HOTEL CONCEPT APPROVED ADJOURNMENT 25:0140 agree on the site and the developer would be required to put up a de- posit to guarantee faithful performance in an amount to be specified... it also would provide that if an adequate site is not located, or if the concept plans have not been prepared, or if a satisfactory Disposi- tion and Development Agreement has not been negotiated during the speci- fied period, the agreement would be terminated. It was suggested that there be 240 days between the date of the executed agreement and the D & D, The City Attorney will check into another area as to terms of an agree- ment and the matter will be placed on the agenda for the next regular meeting (October 21), The Agency entered an executive session. It was MOVED by Member Saelid, seconded by Member Gilb and carried on roll call vote as follows that the concept of a hotel at the northeast corner of Huntington Drive and Second Avenue be APPROVED. AYES NOES ABSENT: Members Gilb, Haltom, Saelid, Pellegrino Member Dring None Member Saelid then MOVED to offer the property at the northeast corner of Huntington Drive and Second Avenue to Hometels Corporation for $3,000,000 plus a willingness to discuss terms. Motion seconded by Member Gi1b and carried on roll call vote as follows: AYES NOES ABSENT: Members Dring, Gilb, Haltom, Saelid, Pellegrino None None At 11:00 p,m, the meeting adjourned to 7 p.m. October 21, 1980 in the Conference Room, Mayor ~~ ATTEST: ~~.~~ City Clerk : -2- 10-14-80 I I