HomeMy WebLinkAbout04/14/1997 - City Council Special Meeting1
ROLL CALL
SPECIAL MEETING OF THE CITY COUNCIL
CITY OF COSTA MESA
APRIL 14, 1997
The City Council of the City of Costa Mesa, California, met
in special session April 14, 1997, at 6:30 p.m., in
Conference Room 1-A of City Hall, 77 Fair Drive, Costa
Mesa, following the special joint City Council/
Redevelopment Agency meeting. Notice of the special
meeting was given as required by law. The meeting was
called to order by the Mayor.
Council Members
Present:
Council Members
Absent:
Officials Present:
Mayor Peter Buffa
Mayor Pro Tem Gary Monahan
Council Member Joe Erickson
Council Member Libby Cowan
Council.Member Heather Somers
None
City Manager Allan Roeder
City Attorney Thomas Kathe
Redevelopment and Housing
Manager Muriel Ullman
Executive Secretary Marie
Thompson
NEW BUSINESS The Redevelopment and Housing Manager reported that at
Parcel E Proposals the joint City Council/Redevelopment Agency meeting of
March 10, 1997, the City Manager was authorized to invite
proposals for purchase of Parcel E, 1898 Newport Boulevard;
and bids were received from Capital & Counties, U.S.A.,
Inc./PDP for $450,000.00; Borders Costa Mesa, LLC, for
$286,000.00; and Ta Trung Nguyen and Lien Hoang Le for
$301,000.00. She gave a synopsis of the main points of the
bid summary.
Ta Nguyen, 296 North Thora Street, Orange, owner of a
liquor store at 145 East 19th Street, Costs Mesa, was
concerned about retaining his business at the same location.
Responding to Mayor Buffa's inquiry, Mr. Nguyen confirmed
that his proposal did not include development of the entire
site.
J. Tim Konold, of Higgs, Fletcher & Mack, LLP, 401 West
"A" Street, Suite 2000, San Diego, attorney for the Pope
Family Trust, introduced Mrs. Pope, and briefed Council on
the proposal from Borders Books & Music Store. He stated
that no inquiries or proposals were received from Capital &
Counties. Mr. Konold also reported that Mrs. Pope entered
into a new contract with Borders Books and Music Store to
prevent Icss of the project, and urged Council to approve the
sale to Borders Books.
Jeff Robertson, Linkletter Developments, 2081 Business
Center Drive, Suite 101, Irvine, realtor representing the Siler
Family Trust, introduced Mrs. Siler. Mr. Robertson stated
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that Mrs. Siler supports the Borders Books and Music Store
project and wants to sell her property to them. He reported
,that an offer was received earlier in the day from Capital &
Counties; however, Mrs. Siler will not be responding to it.
Paul Barba, 17291 Irvine Boulevard, Suite 315, Tustin,
representing the Pope Family Trust, confirmed that an offer
had been received from Capital & Counties. He urged
Council to act in favor of the offer from Borders Books and
Music Store.
Brenda Godfrey, Borders Costa Mesa, LLC, 410 - 17th
Street, Suite 1705, Denver, Colorado, believed that their
proposal is the highest and best use of the property. She
reported that HC Companies and Borders is a joint venture;
financing will be through Bankers Trust of New York; and a
$125 million line of credit is backed by Borders.
Rich Shapiro, 2515 Holly Lane, Newport Beach, Triangle
Square General Partner, stated that Capital & Counties,
U.S.A., Incorporated, have letters of intent from three major
tenants who are not currently in Costa Mesa, and the best
use of the site would be to bring a tenant mix not presently
in place. It was Mr. Shapiro's opinion that another book
store would not be prudent in this area.
H. Turner Newton, Capital & Counties, U.S.A., Incorporated,
101 California Street, Suite 2525, San Francisco, confirmed
that an offer was not sent to either the Pope or Siler Family
Trusts prior to April 11, 1997. He added that Capital &
Counties is interested in developing the entire site.
Mark Burger, Pacific Development Partners (PDP), 177 South
Beverly Drive, Beverly Hills, believed that if the City -owned
parcel is purchased by Capital & Counties, U.S.A.,
Incorporated, the Siler and Pope Family Trusts would settle
with them instead of Borders Books.
Ta Nguyen again expressed his desire to continue doing
business at .the 19th Street location. Ms. Godfrey, Borders
Costa Mesa, LLC, assured Mr. Nguyen that he will be given
the opportunity to remain at the site.
During discussion, representatives from Capital and Counties,
Pacific Development Partners, Borders Costa Mesa, LLC,
Marcus & Millichap, and the Pope and Siler Family Trusts
answered questions from Council.
CITY ATTORNEY The City Attorney request a closed session pursuant to
REPORTS/Request Government Code Section 54956.8 to receive direction from
for Closed Session Council .concerning the sale of Parcel E.
ADJOURNED TO At 7:15 p.m., Mayor Buffa adjourned the meeting to a closed
CLOSED SESSION session as requested by the City Attorney.
`MEETING At 7:35 p.m., the Mayor reconvened the special meeting and
RECONVENED the action taken during closed session was announf,ed.
MOTION !A motion was made by Council Member Cowan, seconded
Directed the City by Council Member Erickson, and carried 4-I, Mayor Buffa
Manager to voting no, the City Manager was authorized to enter into
Negotiate with exclusive negotiations with Borders Costa Mesa, LLP, and to
Borders Books report back to the City Council by April 21, 1997.
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ADJOURNMENT The Mayor declared the meeting adjourned at 7:40 p.m.
Mayor of the City *os a Mesa
ATTEST:
Deputy City I rk of the City of Costa Mesa
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