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HomeMy WebLinkAboutDECEMBER 2,1980 (2) CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK I INVOCA TION PLEDGE OF ALLEGIANCE ROLL CALL HEARING TRACT NO, 35704 APPROVED p.. J ))\;t>\ I HEARING consolids ted Lighting Maint. Dist. (Annex, 10) yO'l ~ fl 25:0174 MINUTES CITY COUNCIL OF THE CITY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY REGULAR MEETING DECEMBER 2, 1980 The City Council of the City of Arcadia and the Arcadia Redevelopment Agency met in a regular session on December 2, 1980 at 7:30 p,m, in the Arcadia City Hall Council Chamber, Rev, Charles crismier, Jr, - Arcadia Friends Church Lyle W, Alberg, City Manager PRESENT: ABSENT : Councilmen Dring, Haltom, Saelid, Pellegrino Councilman Gilb On MOTION by Councilman Saelid, seconded by Councilman Dring and carried unanimously Councilman Gilb was excused, Tentative map of Tract No, 35704 proposing an 18 unit residential condo- minium at 924 - 928 Arcadia Avenue. The Planning Director explained the conditions set forth in the staff report, It was noted that originally the tentative map had been approved by the Planning Commission in August of 1979 and by the Council on September 4, 1979, Final approval was granted in August of 1980, The applicant refiled this tentative map be- cause of a time extension which was not requested before the original expiration date which was September 4, 1980, A communication had been received from Gilbert Engineering Company stating the sequence of events and the delay in the processing of the final map, Mayor Pellegrino declared the hearing open and no one desiring to be heard the hearing was CLOSED on MOTION by Councilman Saelid, seconded by Councilman Dring a nl carried unanimously, It was MOVED by Councilman Sae1id, seconded by Councilman Dring and carri- ed on roll call vote as follows that the tentative map be approved; that the Negative Declaration be approved and filed and that the project will not have a significant effect on the environment; that the tract is con- sistent with the General Plan and that the waste discharge from the tract would not result in a violation of the existing requirements set forth in the Water Code and that the Director of Public Works be authorized to ap- prove the subdivision agreement for said tract, AYES NOES ABSENT: Councilmen Dring, Haltom, Saelid, Pellegrino None Councilman Gilb This is the time and place scheduled for hearing objections to the proposed annexation of certain lands to the Consolidated Lighting District (Annexa- tion No, 10), This hearing was scheduled by Resolution No. 4918, The Di- rector of Public Works explained that the required notice of the hearing was given - posted and published, Also that he had not received any oppos- ing communications; that one call had been received from a property owner on Las Flores and his question was answered. Mayor Pellegrino declared the hearing open and Bob Reynolds, 119 W. Arthur - 1 - 12-2-80 ~(\\\\'I ,~cv v/ o 'HOLLY AV, SCHOOL (Historic Reg is ter) (City Atty, to report) ROLL CALL 25:0175 Street, was advised that his property will not be affected, No one else desiring to be heard the hearing was CLOSED on MOTION by Councilman Dring, seconded by Councilman Saelid and carried unanimously. Whereupon it was further MOVED by Councilman Dring, seconded by Councilman Saelid and carried on roll call vote as follows that there were no protests; that the assessments in the various zones set forth in the Engineer's report be confirmed and that a resolution be adopted at the December 16 meeting ordering the annexation for the subject district. AYES NOES ABSENT: Councilmen Oring, Haltom, Saelid, Pellegrino None Councilman Gilb Council received the communication from the Arcadia Beautiful Commission advising that it had been approached by the Holly Avenue Homeowners and Residents Association as to whether the City would like to submit Holly Avenue School to the National Historical Register, The Commission felt this would be a worthwhile project and it passed a motion to suggest to the Council that it consider co-sponsoring the application along with the Homeowner's Association, The City Attorney will check into the legal ram- ifications of disposal of school properties, I Council then recessed in order to act as the ARCADIA REDEVELOPMENT AGENCY PRE SENT: ABSENT : Members Dring, Haltom, Saelid, Pellegrino Member Gilb On MOTION by Member Dring, seconded by Member Saelid and carried Member Gilb was excused, Member Dring said in part that since public notice has been given concern- ing the proposed Disposition and Development Agreement and sale of city owned property at Second Avenue and Huntington Vr1ve to the Hometels group he felt it appropriate to make some comments relating thereto, His remarks were as follows: (~"I am concerned about the Redevelopment Agency's actions and potential "1,~\5 actions in the future, Redevelopment Agencies were originally chartered ,,' ' to build and renovate low and moderate income housing, I find us in a f, \ position where we are contemplating building a hotel or office buildings. I know, at least it is my opinion, that criteria for creating a redevelop- ment agency is finding an area that has blight in it yet as I look at the area in question I think of it more in terms of underdeveloped rather than blight, I am concerned about the powers that the Agency has " the power of eminent domain, which are awesome; the indebtedness that the Agency can create without public review of any kind and we are in debt over a million dollars already, The impact on taxing authorities, such as school districts which do not achieve the full tax value of that land, and because it falls within the redevelopment agency the tax base was frozen when that area was declared within the Redevelopment Agency, "'" .,"'." ,. cO, '''''. ,~"" 'b" '"'" , .m "" .",,"", ", "",," I There is nothing wrong with the hotel, But I am against what I consider to be a gift of public funds, We bought that land for $360,885. The current appraisal value at the current zoning is $1,500,000, The rezoning which we are contemplating and surely will do, unless there is something that comes completely out of the blue, we will reevaluate that land and according to our appraiser the current value would then be $3,500,000, Hometel will buy and the majority of the council, as it is constituted now, will sell or has a- greed to sell at $1,300,000 " $200,000 less than the current zoning and $2,2 million less than the rezoned value, Hometel has stated they will close escrow with no contingencies and it is my opinion that I can certainly - 2 - 12-2-80 25:0176 see why because the land value will appreciate that $2,2 million within six months, eight months maybe " however long it takes to rezone it and certainly that rezoning process is well underway now, I find I have diffi- culty looking at the hotel project" as a stand-along entity, I "I look at the redevelopment project as a whole and that brings in Repub- lic Development, It has been stated by a majority of the Council Members maybe I should say it has been stated by some of the Members of the majority of this Council., that the hotel project will not go through unless there is condemnation of certain projects around it, Republic has come to us and asked for condemnation to begin immediately on several properties ,. or at least contemplated immediately. We have agreed to condemn if they cannot reach agreement, around Fifth and Huntington, as well as the Kiewit proper- ties. I don't understand why we need to condemn the Kiewit properties be- fore the rezoning takes place, Should a developer reap the benefits of the rezoning which are substantial, I don't think so, Why doesn't the Redevel- opment Agency release the moratorium that was put on building back in 1977, rezone the land and then let the market-place and the developers build that area, Right now we have frozen it off and we claim no one is building there and they can't by order of the Agency, "In my opinion, the five men sitting on this Agency, are not qualified or competent as developers " and trying to develop as amateurs is going to be a very expensive, time consuming process and the people of this City will have to pay for that. I just don't see why five men should go out and condemn people from their homes and apartments of which it is estimated to be around 109 people, 40 different homes and aparonents, and condemn busi- nesses from their business location and turn around and award this land to a developer who will realize incredible profit from the simple act of re- zoning, On top of that, Hometel did two studies as to whether a hotel is feasible. The two studies were very negative, The first one was very neg- ative. The second one was negative but less so, Rezoning will create such a windfall that it is no wonder they are willing to take no contingencies in their escrow. They will build whatever it is zoned for. At those rates all we have to do is rezone it and they make $2.2 million profit and appre- ciated land value, The Arcadia Chamber of Commerce and the Businessmen's Association have stated their support for it, I appreciate that, There are two things that come to mind, Do they do their polling to their mem- bers with the concept of knowing that condemnation would have to be done. I think this has an impact on whether their members are willing to support the hotel site and the surrounding development around it, I "I just think the Agency is out of place in what it is attempting to do here and the way it is going about it, I think if Hometel would like to buy land at market-value rezoned, which we are going to do and they know it, then they are welcome to it, I would love to have them build a hotel, Marvelous, I would venture to say they wouldn't come anywhere near the appraised value of the new zoning that we are going to put through and I am not sure if it is appropriate for the City to be giving away this kind of funds. And, I am against the project because of the give away of funds, in my opinion, or the unwillingness to sell at near-market value and I am against the redevelopment project because of the condemnations that have to come about, I appreciate your patience listening to this rambling. I am concerned because a public notice has been filed that contains very little to no information. The related information sheets that we have samples of .,' if these are the samples and City Hall does not mention that it is going to be rezoned and if it is rezoned it is worth $3.5 million and yet the public is asked to comment on it in two weeks with very little information, I am concerned about it, I don't think it will be a fair or appropriate judgment by the public and once again I raise the issue of why not bring the facts to the public and ask them to vote upon it, It is a major issue both expensive and it will affect our sky line and the look of the City for a long time to come, I don't think some- thing like that should be done off hand with millions of dollars without the public having some vote of aporoval on the project, Thank you," - 3 - 12-2-80 25:0177 Councilman Haltom said in part "" "I agree substantially with what he said, I am concerned with these other problems. I am not sure the Council understands, I have been looking at this redevelopment and have been digging and digging and I am constantly surprised at what I have turned over, Since everyone is so hot about the Hometel property let's talk about that for a minute, Everybody thinks it is' going to generate so much more income for the City, but what it is go- ing to become ,is a tremendous burden for the City. It will be taxed under the old tax increment of a previous property usage and a new taxing rate will go to the redevelopment agency which is great because then we will have a lot of money. The catch is that the City has to provide services for the hotel and all the other commercial buildings which are built there without the City ever receiving another tax dollar for it other than for former usage. So therefore, we the property owners, you and I, will carry I the burden of the redevelopment until such a time as the Redevelopment Agency no longer has a debt and as of the latest reports I have read, no Redevelopment Agency has ever terminated, It is an on going thing, They start one project and the money for that is put into another project, It becomes endless, All I can see is a tremendous burden taxwise for the homeowners and the business property owners, I think the key to the whole thing is when we rezone it, I think when it is rezoned finally the devel- opers will come in and develop the property, "I am also concerned about our exposure to lawsuits. A case I have been reading about took place in Baldwin Park where the City declared some land blighted and went on to redevelop it and it got thrown out of court because it was not legally blighted. It has to meet quite a criteria and one of the criteria is not the fact that it is not developed as Some of the vacant property is, nor is it the fact that it is underdeveloped, nor is it the f ac t that it is not a tits bes t land usage .. blighted, Bunker Hill Towers they did downtown, I questioned when they did it and they have statistics to prove that it was blighted, that it was a health hazard, that there was a tremendously high crime rate " something like eight or ten times the normal crime rate ., and so after reading the statistics I have to agree with them that it was blighted, I can't believe that some of those prop- erties are blighted, They may not be the most beautiful buildings in the world but they are somebody's livelihood, somebody has put a lot of blood and sweat into them to make a go of a small business and I definitely would not exercise eminent domain." Councilman Saelid then stated: "As long as we are having a philosophical discussion on whether or not this is evil or whether or not this is good, I will make a few comments. When 1 came to this Council I was opposed to redevelopment. I thought that it was not necessary within the City of Arcadia, The redevelopment law in my opinion allows for a lot of abuses and we have seen in some areas of Cali- fornia where these abuses, in my opinion, have occurred, I believe that the Arcadia Redevelopement Agency has not been guilty of such abuses, I think I have not agreed with all of the actions of the agency in the past. As a matter of fact I did not agree with the acquisition of the property in question at the time that we acquired this property, We are now in the I position, good or bad, of having within our inventory a number of different parcels of property., a major parcel of property.. " a major investment of the taxpayers' money, It would be very simple to just simply put this on the market at the existing zoning or change the zoning and hold out for the highest and the best use ,., and hope that somebody comes in there and is willing to pay three million five for the property, "As I understand it, the highest a nd best use would call for putting an eight story building in there roughly with commercial on the bottom " re- tailing, which does not seem to be something that would ,., there does not seem to be a market for that, We don't have a market for that right now. 1 think that Mr. Dring and Mr, Haltom may have been a little bit jaded by - 4 - 12-2-80 25:0178 the number. I admit that I was, You know when you talk about a piece of property three and a half years ago that we bought for $360,000 and we spent another $5100 or so clearing the property, So we had that kind of invest- ment in it even with a reasonable inflationary rate " return as you might get in a banking institution on your investment, you come no where near the three million five, I "I think we a 11 recognize ,. well, maybe no we don't all recognize, tha t the City could profit by having a fine hotel in our city" another one. We have several hotels or motels and another fine hotel would offer con- ference facilities would be a real asset to the City and a magnet for the development down there, I am not interested in going into essentially resi- dential areas as possibly Mr, Dring would be interested in doing in terms of possibly putting up low income housing, which sometimes is factiously re- ferred to as low income luxury housing. I think when this Agency years ago was considering including in the redevelopment area the properties which were residential in nature which had some of our families living in them who had lived in them since the days of Lucky Baldwin ., I was aghast that the Agency would even consider such a thing, Maybe if we lived in those neighborhoods, I am speaking of us as individuals, we might have had some objection to the way some of the people kept their homes but nevertheless they have been here many many years and I didn't like to see the agency go into those neighborhoods and throw out people from these homes. "What we are talking aoout down there, in the event we should ever come to the question of using eminent domain, is primarily not owner-occupied business but rather rental property with owners, generally speaking, out of the area. Maybe that sounds hard nosed and there are a lot of renters who have invested heavily in our city too and they have to be considered too and any action that the City takes has to consider their futures, The law provides for that and I am not ready to commit myself one way or the other on the use of eminent domain until we look at specific instances where it might be utilized on in this case Third Avenue. I don't know. It is something new to me I guess to pre-commit myself to an action before we have a public hearing on the matter, Certainly I am committed and think that I would prefer to see a fine hotel go in there. I have said that, But we have a public hearing yet to be held on the matter and I think to come out right now ani say that you cannot support it, without hearing what the people have to say about it at a public hearing, which is provided for within the law, within the city code and our operating by-laws, is improper. I "I am not at all in favor of the City continuing indefinitely to be in the redevelopment business but to do less than to make the most of the invest- ment that the City has .. the City taxpayers have in that property by bring- ing something into that area to generate the stimulus for getting additional developers in there, I think would be a mistake, In that sense it is a re- versal of my position of years ago when I said I didn't like to see Arcadia get in the Redevelopment business, But whether you like it or not, we are in it and we have an investment in property and yes, we can put the property on the market and we might hold it for years and years waiting for that in- vestor who is willing to spend three and a half million bucks for it and you know withllie rate of inflation chances are that sometime someone would be willing to sell it for three and a half but then members of this Agency might be jaded by a five million dollar number. This can go on indefinitely. I also agree that when you have a redevelopment project in some instances you have seen the peripheries begin to deteriorate because people tend to move into the nice new areas and then you have some landlords who then don't maintain their properties as they had before and you have an expansion of the redevelopment area, I think that is what you were talking about and it cer- tainly is SOmething that I would be concerned with. "As I said I don't want to see a continual growth of Redevelopment Agency activity, but Ithink we have a rather unique opportunity to get something good started in our City and I certainly am not going to go into the public hearing that we have set for December 16th with a committed position on the ma tter. - 5 - 12-2-80 AGENCY ADJOURNED Council Reconvened .; Y; DANCE / PERMIT , - J o. ~. ~_' r . - TRACT NO, 35704 VEHICLE PURCHASE (. I 1.'-'\ ~'I r . ~ ~)')( 25:0179 Councilman Haltom suggested that publicity or notices be placed in other newspapers so that more of the public may be reached, He then MOVED to place advertising in the Los Angeles Herald Examiner, San Gabriel section of the Los Angeles Times, the San Gabriel Valley Tribune, the Highlander and the Pasadena Star News to the effect that the City will be holding the public hearing on said redevelopment property on December 16. Motion seconded by Councilman Dring. Councilman Saelid said he could support the motion and asked that the record reflect that this in no way constitutes a change in the By-laws with regard to proper notification in advance of public hearings on the matter. Roll call vote was then taken on the motion: I AYES NOES ABSENT: COuncilmen Dring, Haltom, Saelid, Pellegrino None Councilman Gilb Councilman Saelid then asked that a staff report be prepared indicating what would accrue to the City if all the benefits were collected as a part of the genera 1 taxing ra te, The Agency then adjourned to December 16 at 7 p,m. AUDIENCE PARTICIPATION Herb Fletcher, 175 W. Lemon Avenue, referred to the communication from the Arcadia Beautiful Commission concerning Holly Avenue School and sug- gested that if there is interest on the part of the City Council in per- haps acquiring one or more of the schools which may be available depending on the decision of the School Board, that the two bodies should work to- gether on it. Sherry Passmore, 1109 Columbia Road, suggested that Council issue press releases concerning property in the redevelopment area including some of the facts So that the public may make intelligent comments at the public hearings, She was advised that the property at 610-618 N, Santa Anita was sold before the rezoning but in the proposal was the contingency state- ment on the rezoning ., which was the basis for the public hearing at the time it was offered. Mrs, Passmore was also advised that Jay Corey in the City Manager's office has a complete list of property owned by the City in the redevelopment area, CONSENT ITEMS APPROVED the dance permit for Pellegrino's Restaurant (under new ownership and management) at 101 S, First Avenue, It was noted that all corrections have been made and approved by the Fire and Building Departments, In the roll call vote Mayor Pellegrino abstained due to his affiliation with the restaurant. I APPROVED final map of Tract No, 35704 for an 18 unit residential condomini- um at 924-928 Arcadia Avenue subject to the condition that before the final map is recorded all outstanding conditions of approval be complied with, APPROVED purchase of the following vehicles for the Police Department, Funds are in the Revenue Sharing Account FY 1980-81, Two (2) Mustangs from Huntington Ford - $15,166,60 for the two, Ten (10) Police Patrol Vehicles from Mark Christopher Chevrolet Ontario - $90,098,90 (ten) One (1) 3/4 ton truck from Mark Christopher Chevrolet Ontario $8,638,98 - 6 - 12-2-80 '" \< DANCE PERMITS I SHORT RANGE TRANSIT PLAN APPROVED ,,~-I lOr;; " f; I f: EQUIPMENT PURCHASE (Hydraulic Hammer) 25 :0180 APPROVED the renewal of dance permits issued for the following: Ramada Inn 130 W. Huntington Dr, (electrical corrections to be made) Kitty Kelly's Reuben's Westerner Restaurant 80 W. Live Oak Avenue 1150 W, Colorado Boulevard 181 W. Colorado Boulevard (electrical corrections to be made) ALL OF THE ABOVE CONSENT ITEMS WERE APYROVED ON MOTION BY COUNCILMAN DRING, SECONDED BY COUNCILMAN HALTOM AND CARRIED ON ROLL CALL VOTE AS FOLLOWS: AYES NOES ABSENT : Councilmen Dring, Haltom, Saelid, Pellegrino None Councilman Gilb Council received a proposed Cooperative Agreement between the City and the Southern California Association of Governments for the preparation of the City's 1981-82 Short Range Transit Plan which is required by the Urban Mass Transportation Administration in order for the City to maintain its eligi- bility for federal transit grant funds. This will provide $2,920 reimburse- ment to the City for the preparation of the Plan, Council also received a proposed agreement with Wilbur Smith & Associates ,for the preparation of the Plan. Councilman Dring MOVED to approve the Cooperative Agreement with SCAG and that the Mayor and City Clerk be authorized to execute same in form approv- ed by the City Attorney, Motion seconded by Councilman Haltom and carried on roll call vote as follows: AYES NOES ABSENT: Councilmen Dring, Haltom, Saelid, Pellegrino None Councilman Gilb With reference to the proposed agreement with Wilbur Smith & Associates Councilman Dring said he felt the overhead rate is excessive but felt it prudent to proceed because of the time frame what with the holiday season and asked for a break-down of the overhead rate, Whereupon he MOVED to approve the agreement with Wilbur Smith & Associates for the preparation of the 1981-82 Short Range Transit Plan subject to approval by SCAG with a limit not to exceed $3,650, Motion seconded by Councilman Haltom and carried on roll call vote as follows: AYES NOES ABSENT: Councilmen Dring, Haltom, Saelid, Pellegrino None counc ilman Gilb During this consideration Dan Benson of Wilbur Smith & Associates explained the situation at this time and said he would supply the break-down as re- quested by Councilman Dring, The Water Manager explained the need to purchase a replacement for a mo- bile hydraulic hannner purchased in 1961. The hammer is used to break as- phalt and concrete paving for the installation of water lines and services and is also used to compact the trenches after construction, He presented the bids which were submitted and made recommendation for the purchase. It was MOVED by Councilman Haltom, seconded by Councilman Dring and carried on roll call vote as follows that the equipment be purchased from Crook Company in the amount of $36,008,20; that all other bids be rejected and that any informalities or irregularities in the bids or bidding process be waived, Funds are in the Revenue Sharing Budget for this fiscal year, AYES NOES ABSENT: Councilmen Dring, Haltom, Saelid, Pellegrino None Councilman Gilb - 7 - 12-2-80 SOLID WASTE MANAGEMENT ACT RESOLUTION NO, 4922 ADOPTED I RESOLUTION NO, 4923 ADOPTED I SAELID AGENDA ITEM JANUARY 6 I EXECUTIVE SESSION I ADJOURNMENT Dec. 16 25:0181 The Director of Public Works explained that Senate Bill 261 has modified the litter grant program and has caused some inconsistencies in the City resolutions currently on file with the Solid Waste Management Board, The Board has now requested new resolutions with applications for litter grants which must be submitted by December 15 " and will provide $5,141 for re- placement of City trash receptacles, Whereupon he presented and read the title of Resolution No, 4922 entitled: "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA APPROVING THE APPLI- CATION FOR GRANT FUNDS UNDER THE SOLID WASTE MANAGEMENT ACT OF 1980," It was MOVED by Councilman Dring, seconded by Councilman Haltom and carried on roll call vote as follows that the further reading of the full text of Resolution No, 4922 be waived and ADOPTED, I AYES NOES ABSENT: Councilmen Dring, Haltom, Saelid, Pellegrino None Councilman Gilb The City Attorney presented, explained the content and read the title of Resolution No, 4923 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA APPROVING IN PART AND DENYING IN PART M-80-136 FOR 1031 SOUTH TENTH AVENUE UPON APPEAL FROM THE PLANNING COMMISSION AND MAKING FINDINGS OF FACT." 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 of Resolution No. 4923 be waived and that same be ADOPTED, AYES NOES ABSENT: Councilmen Dring, Saelid, Pellegrino Councilman Haltom Councilman Gilb Councilman Haltom stated in part that he feels it is a mistake to allow a zero sideyard setback as provided in the above resolution; that it will be a hazard for firemen and to everyone and may be something to regret in the future. Referred to a previous report submitted by staff relating to what it would cost to retain legal counsel to handle matters of property maintenance and nuisance problems which the City Attorney does not have the time to actively pursue, He MOVED to have this item placed on the agenda for January 6, 1981. Motion seconded by Councilman Haltom and carried on roll call vote as follows: AYES NOES ABSENT: Councilmen Dring, Haltom, Saelid, Pellegrino None Councilman Gilb Council entered an executive sessi.on, reconvened and Councilman Sael id MOVED to adjourn in memory of Rose Magnolia who passed away recently, "Mrs, Magnolia was the mother of Mrs, Pellegrino, She was married in Ohio to Perry Magnolia, They had four children, Gina, Ron, Perry, Jr, and David, I I did not know this lady but from reading what she has done in her life I have to say that she was a very marvelous person, She was a member of the Holy Angels Parish; had a very great interest in children - to the extent that she fostered 170 children during the last 12 years of her life and dis- continued that only because of her illness. The last five years of her life she was on a dialysis machine three times a week, She lived with Gina and Don until she passed away November 26. She is survived by her husband, Perry, four children, nine grandchildren and three great grandchildren. I would like Mr. Mayor to adjourn this meeting in memory of Rose Magnolia," ~~~;z/~c Mayor ,,- 01}~'~ City Clerk a,~~ - 8 - 12-2-80