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Home My WebLink About03/10/1997 - City Council Special Meeting - Redevelopment Agency14 ROLL CALL OLD BUSINESS Development of Parcel E SPECIAL JOINT MEETING OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY CITY OF COSTA MESA MARCH 10, 1997 The City Council and the Redevelopment Agency of the City of Costa Mesa, California, met in special joint session March 10, 1997, at 6:00 p.m._, following the regular 5:30 p.m. Agency meeting, in first floor Conference Room A, City Hall, 77 Fair Drive, Costa Mesa. Notice of the special joint meeting was given as, required by law. The meeting was called to order by Mayor/Agency Member Buffa. Council/Agency Members Present: Mayor/Agency Member Peter Buffa Mayor Pro Tem/Agency Chair- person Gary Monahan Council Member/Vice Chairperson Libby Cowan Council/Agency Member Joe- Erickson oeErickson Council/Agency Member Heather Somers Council/Agency Members Absent None Officials Present: City Manager Allan Roeder City Attorney Thomas Kathe Redevelopment and Housing Manager Muriel Ullman Assistant Finance Director Marc Davis Accounting Supervisor Diane Butler Executive Secretary Marie Thompson The Redevelopment and Housing Manager reviewed the Agenda Report dated March 10, 1997: a letter was' received from Pacific Development Partners (PDP) and Sid Partow (Newport Boats) regarding development of the 3.07 acres located directly across the street from Triangle Square. PDP requested an exclusive right to negotiate with the City for the site. An offer was also received from. HC Companies, representing Borders Books and Music Store for City -owned property known as Parcel E. HC Companies has optioned both the Siler Trust and Pope Family Trust properties, and purchase of Parcel E would allow completion of its project. Both concepts were discussed at the joint City Council/Redevelopment Agency meeting on February 10, 1997, when staff was directed to prepare a legal analysis j and obtain cost estimates for a- feasibility study.. Subse- quently, Rich Shapiro, representing PDP, informed staff that he is no longer interested in a formal "exclusive right to negotiate agreement" which could trigger relocation require- ments, but preferred a land sale similar to the Borders Books and Music Store proposal whose offer has also been revised. 15 The City Attorney noted for the record that communications were received from Paul J. Barba, and J. Tim Konold of Higgs, Fletcher & Mack; both dated March 7, 1997, supporting the Borders proposal. Brenda Godfrey, HC Companies, stated that the firm offered to purchase the City property at its fully appraised value and is very anxious to move forward with the project. Council/Agency Member Erickson mentioned that at the meeting of February 10, 1997, Ms. Godfrey proposed a private transaction with the members of both family trusts, and asked if HC Companies would agree to an open process since the market place would determine the value of the City parcel. Ms. Godfrey responded that the firm is under pressure to open stores in this area; therefore, she was requesting a notice of consideration to begin exclusive negotiations with' Borders Books and Music Store by March 21, 1997. The City Manager stated. that a minimum of 30 days would be required to place the property on the ,open market, and mentioned that the City has held the property for several years with the intent that it be integrated with the adjoining properties. Council/Agency Member Erickson commented that common sense dictates that the property would be much more valuable to the adjacent properties than standing alone. The City Attorney reported that he would have to do some research if it were decided not to enter into an exclusive negotiating agreement with one party, and then determine the appropriate findings on why that action was taken. Rich Shapiro, 2515 Holly Lane, Newport Beach, a general partner of Triangle Square, felt that PDP's project was more ambitious, of greater benefit to the downtown area, and that neither financing nor condemnation would be an issue. In reply to a question from Council/Agency Member Somers, Mr. Shapiro acknowledged that his proposal was only in the conceptual stage until the City offers the opportunity to develop a plan. Responding to an inquiry from Mayor/Agency Member Buffa, Paul Barba, attorney for the Siler Trust, advised that the applicant would be HC Companies; that both family trust properties were offered to PDP and Sid Partow (Newport Boats) in the past, but the offers were declined. Mr. Shapiro acknowledged Mr. Barb..a's offer approximately 2-1/2 years ago, but felt that the development climate was not appropriate at that time. Sid Partow, Newport Boats, 1880 Newport Boulevard, Costa Mesa, stated that Mr. Barba had never offered the property to him; however, since he is not a developer, he would not have accepted the offer. Mr. Partow stated that he first learned of the proposed Borders .Books and Music Store project 10 days ago and has never been approached -by the firm in respect to developing the entire site. He added that he would like the opportunity to.purchase the subject_ site since he has a business at that location. CITY MANAGER REPORTS CITY ATTORNEY. REPORTS/Request for Closed Session Ta Nguyen, owner of a liquor store at 145 East 19th Street, Costa Mesa, asked if the City would protect his existing business at that site. Mayor/Agency Member Buffa assured Mr. Nguyen that his business was not located on City -owned property, and encouraged.him to address his concerns to the current property owner and any future developer of the site. After discussion, Mayor/Agency Member Buffaannounced that any further consideration of this item would be trailed to a closed session pursuant to a request from Council Member/Agency Vice Chairperson Cowan. The City Manager announced that he had no reports to discuss this evening. The City Attorney requested a closed session pursuant to Government Code Sections 54956.8 and 54956.9(a) to discuss the following: (a) Provide directions to the City Manager on negotiations for the sale of Parcel E. ' Orange County Bankruptcy MOTION Authorized Settlement ADJOURNMENT Regarding the Orange County Bankruptcy, United States Bankruptcy .Court Case No. SA94-22272-JR, by a vote ,of 5-0, the Council/Agency authorized the City Attorney to proceed with the settlement as outlined in his confidential memorandum dated February 28, 1997. At 7:00 p.m., Mayor/Agency Member Buffa adjourned the special joint meeting to a special City Council meeting. Mayor of the City osta Mesa ATTEST: i i Deputy City CI rk of the City of Costa Mesa (b) Orange County Bankruptcy, United States Bankruptcy Court Case No. SA94-22272-JR. ADJOURNED TO Mayor/Agency Member Buffa adjourned the special joint CLOSED SESSION meeting to a closed session at 6:15 p.m. in accordance with j the City Attorney's request. MEETING At 6:55 p.m., Mayor/Agency Member Buffa reconvened the - RECONVENED special joint meeting and the City Attorney announced the action taken. during closed session. i Sale of Parcel E The City Attorney reported that no action was taken by the Redevelopment. Agency concerning Parcel E; however, by a MOTION vote of 5-0, the City Council directed that within 30 days, Directed City the City Manager shall invite proposals for the purchase of Manager to Invite Parcel E at the highest net price, provided that Parcel E is Proposals i combined with another lot on the block, with the City Council reserving the right to reject all offers. Orange County Bankruptcy MOTION Authorized Settlement ADJOURNMENT Regarding the Orange County Bankruptcy, United States Bankruptcy .Court Case No. SA94-22272-JR, by a vote ,of 5-0, the Council/Agency authorized the City Attorney to proceed with the settlement as outlined in his confidential memorandum dated February 28, 1997. At 7:00 p.m., Mayor/Agency Member Buffa adjourned the special joint meeting to a special City Council meeting. Mayor of the City osta Mesa ATTEST: i i Deputy City CI rk of the City of Costa Mesa