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HomeMy WebLinkAbout07/16/2019 - Special Meeting ARCADIA CITY COUNCIL SPECIAL MEETING MINUTES TUESDAY, JULY 16, 2019 CALL TO ORDER - Mayor Verlato called the Special Meeting to order at 5:03 p.m. in the Council Chamber Conference Room, 240 W. Huntington Drive, Arcadia, California. ROLL CALL OF CITY COUNCIL MEMBERS PRESENT: Amundson, Beck, Chandler, Tay, and Verlato ABSENT: None Pursuant to Government Code Section 54953(b), Council Member Amundson participated via teleconference from Princess Cruises, Crown Princess, Room D326, at 1:00 a.m. (Belfast, UK Time), and notice was properly posted as required by law. PUBLIC COMMENTS — Comments were held over until the Study Session item. CLOSED SESSION a. Pursuant to Government Code Section 54956.9(d)(1) to confer with legal counsel regarding the matter of Tom Crosby, an individual; Ellen Fu Crosby, an individual v. City of Arcadia, a California municipality; Santa Anita Oaks Homeowners Association, Inc., a California non-profit corporation; and Vincent I. Vargas, an individual (Los Angeles Superior Court Case No. BS172105). The Closed Session ended at 5:35 p.m. It was the consensus of the City Council to move the Study Session item to this portion of the agenda. Mayor Verlato announced that she has a conflict of interest regarding Study Session Item A, because she owns property in the proposed project area, and that she must recuse herself from participation and discussion in this matter. STUDY SESSION a. Report, discussion, and direction concerning potential development in Downtown Arcadia, including the City's public parking lot between Santa Anita Avenue and First Avenue, south of Wheeler Avenue. Mayor Pro Tem Chandler called for public comments. April Verlato, owner of business at 33 E. Huntington Drive, appeared and stated that she strongly advises against entering into an Exclusive Negotiation Agreement at this time; she reminded the City Council that there are other developers that are interested in the development of the public parking lot, and that the other developer (Serrano Development) has made an offer on her property, and are currently in negotiations; she stated that nothing should be jumped into regarding the development, and urged the City Council to take a full look at what is going to be best for the public parking lot; she stated that the City Council should keep in mind that all the properties that front Huntington Drive cannot be developed if there is not additional parking to accommodate the current businesses and other proposed uses; she feels there needs to be more public parking in order for growth and development on Huntington Drive and the Downtown area; she encouraged the City Council to let the developers present their cases, because this property is the only last big space in Arcadia that is available for this type of development, and hopes it will not be wasted. Because Mayor Verlato has a conflict of interest, which prohibits her from discussion and participation in the Study Session item, she left the room. Assistant City Manager/Development Services Director provided a report on the potential development of the City owned parking lot project. Charles "Ted" Matthews, owner of 37 E. Huntington Drive, appeared and indicated that he wants to see a quality development that benefits the community and the City; he feels that it is too premature and inappropriate to enter into an Exclusive Negotiation Agreement; and he thanked the City Council for all they do. In response to Council Member Beck's question, Mr. Matthews responded that one of the developers has approached him, but he is not in negotiations with anyone, and he is not interested in selling his property. Erick Wahl and Srinivas Yalamanchili, representing Positive Investments, Inc., appeared and proposed that the City Council approve an Exclusive Negotiation Agreement("ENA")between the City and Positive Investments regarding the development of the City-owned parking lot; they shared which properties in the project area they have purchased and are in the process of purchasing; they shared their concept of developing the site, which will include taking over the post office; and they proposed an ENA for a minimum of 18 months with an option to extend up to 30 months regarding the transfer of ownership of the City parking and provided examples of how they can change the current structure to modernize and update the site. Jason Tolleson, representing Serrano Development Group, appeared and expressed an interest in developing the City parking lot and provided a comprehensive vision of the site; he provided information about some of their past and current projects as reference in their letter submitted to the City Council; and asked the City Council that they be given a chance to compete to give the City the best project that fits the community. In response to Council Member Beck's question, Mr. Tolleson confirmed that they are in negotiations with Mayor Verlato, and he did confirm that they reached out to Mr. Matthew's, but he is not interested in selling. Dan Bacani, representing Lee and Associates on behalf of Serrano Development Group, appeared and shared the concept of a mixed-use development project and explained his reasons for this type of project, and feels that Serrano Development has the ideas for this type of project. A motion was made by Mayor Pro Tem Chandler, and seconded by Council Member Amundson and carried on a roll call vote to (1) enter into an Exclusive Negotiation Agreement with Positive Investments for a 12-month period regarding development of the City owned parking lot; (2) if feasible, include the post office in the development; (3) incorporate the Huntington Drive parcels; (4) preservation of the Denny's Windmill; and (4) that the City be part of the selection process of the developer. AYES: Tay, Beck, Amundson, and Chandler NOES: None The Study Session ended at 6:40 p.m. b. Pursuant to Government Code Section 54956.9(d)(2) to confer with legal counsel regarding anticipated litigation — one (1) case. c. Pursuant to Government Code Section 54957.8 to confer with Real Property Negotiators. Property: Public Parking Lot between Santa Anita Avenue and First Avenue, South of Wheeler Avenue (Assessor Parcel No. 5773-012- 901) Agency Negotiators: City Manager Dominic Lazzaretto, Assistant City Manager/Development Services Director Jason Kruckeberg, and City Attorney Stephen P. Deitsch Property Negotiators: Erik Wahl, Positive Investments Under Negotiation: Price and Terms of Payment No reportable action was taken on Closed Session Items A and B, and Item C was not discussed. The Special Meeting ended at 6:50 p.m. _11//Al 'yor of the City of Arcadia ATTEST: • �hief eputy City Clerk/ Recdtds Manager