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HomeMy WebLinkAbout07/14/1997 - City Council Special Meeting137 SPECIAL MEETING OF THE CITY COUNCIL CITY OF COSTA MESA JULY 14, 1997 The City Council of the City of Costa Mesa, California, met in special session July 14, 1997, at 6:30 p.m., in first floor Conference Room 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. ROLL CALL Council Members Present: Mayor Peter Buffa Mayor Pro Tem Gary Monahan Council Member Joe Erickson Council Member Libby Cowan Council Member Heather Somers Council Members Absent: None Officials Present: City Manager Allan Roeder City Attorney Thomas Kathe Redevelopment and Housing j' Manager Muriel Ullman Management Analyst Paula Schaefer OLD BUSINESS The Redevelopment and Housing Mariager gave background Parcel E Proposals information on Parcel E, City -owned property consisting of approximately 12,000 square feet, located at 1898 Newport Boulevard: The parcel contains a commercial structure and is occupied by Newport Boats, a tenant under a short-term lease. The City Manager was directed to negotiate a purchase and sale agreement with Borders Costa Mesa, LLC. Outside special counsel, Herbert Weiser, of King, Weiser, Edelman & Bazar, created an agreement containing the following details: a purchase price of $370,000.00 net to the City; the property is to be conveyed "as is", both as to the condition of the parcel and condition of title; at the close of escrow, the purchaser shall have obtained title to not less than 120,000 square feet of contiguous property; sale is by the City in its proprietary capacity, and the'City will retain all regulatory powers under applicable law and ordinances; the $20,000.00 deposited previously by the purchaser shall become a deposit and purchaser will bear the cost of any claims for compensation or relocation benefits made by the occupants of the site, except for the tenant, Newport Boats. Responding to Mayor Buffa's inquiry, Special Counsel Weiser reported that the lease agreement with Newport Boats has a notice provision and, in the agreement with Borders Costa Mesa, LLC, it is represented that Newport Boats is in possession of Parcel E under a month-to-month lease which waives any rights to relocation. The special counsel added fr � MOTION Adopted Resolution 97-63, Approving the Agreement Negotiations with Habitat for Humanity of Orange County that prior to close of escrow, the purchaser has the option of either requesting the City to terminate the lease or the City will sign over the lease to the purchaser, who then can terminate the lease at a later date. Ms. Godfrey, Borders Costa Mesa, LLC, stated that she is very comfortable with the agreement as presented. Mayor Buffa announced that he received questions from Sid Partow, Newport Boats, and Ta Nguyen, owner of a liquor store on the site, and hoped that any issues could be addressed by easy access to Borders Costa Mesa, LLC. Ms. Godfrey reassured Council this would be the case. A motion was made by Council Member Erickson, seconded by Mayor Pro Tem Monahan, and carried 5-0, adopting Resolution 97-63, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING THE TERMS AND CONDITIONS OF THE AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY BETWEEN THE CITY OF COSTA MESA AND BORDERS COSTA MESA, LLC, AND AUTHORIZING THE EXECUTION AND IMPLE- MENTATION OF SAID AGREEMENT. Ms. Godfrey, Borders Costa Mesa, LLC, outlined a tentative schedule and reported that escrow should close by early fall, 1997. Special Counsel Weiser referred to two important time periods referenced in the agenda report: the purchaser has the right to withdraw from the purchase and sale agreement within 45 days after the effective date of the agreement, and have its deposit leturned. He added that after that time,' the purchaser shall pay a nonrefundable amount of $5,000.00 per month, and has 120 days in which to object to any conditions contained in the agreement, including rezoning of the site. The Redevelopment and Housing Manager summarized the agenda report dated June 16, 1997: On May 19, 1997, the City Council voted to enter into negotiations with Habitat for Humanity of Orange County for a home ownership/new construction program. Since that time, staff met with the City's Development Services Department and Habitat for Humanity to discuss the feasibility of building such projects on 14 City -owned surplus properties at the locations contained in a letter from Mark Korando, Habitat for Humanity of Orange County dated June 12; 1997. On the advice of the City Attorney, the City must declare the properties as surplus by resolution of the City Council. This would allow legal descriptions and appraisals. The City would then be required to provide a written notice and offer to sell or lease the property to any public entity within whose jurisdiction the surplus property is located. Priority is required to be given to the development of affordable housing. The Redevelopment Agency would qualify to receive notice from the City. The Redevelopment Agency has been reviewing the requests received from Habitat for Humanity for funding to purchase the City -owned properties for low and moderate income housing. 1 1 Mark Korando, 582 Park Drive, Costa Mesa, introduced Barbara D'Amore Beck, Executive Director, Habitat for Humanity of Orange County. Mr. Korando reported that a meeting was held in the neighborhood of Sterling, Raleigh, Wallace, and Del Mar Avenues, to explain the proposed development of low-income housing. He believed that all questions from the six attendees were addressed, and noted that concerns were expressed on the affect on property values. He also stated that those in attendance were invited to be a part of the process of choosing the families .or becoming mentors to the families. Ms. Beck addressed Council Member Somers's question concerning Conditions, Covenants, and Restrictions (CC&R's) which are intended to govern maintenance of the property. She also explained the participation required of the families chosen *,'tyke part in the program. Ivan Tavares, 2132 Raleigh Avenue, Costa Mesa, was not opposed to the project; however, he is remodeling his home, and was contemplating the purchase of the adjacent property. He now must reconsider if it would be worth continuing with his plan. Mayor Pro Tem Monahan emphasized that the Council is merely reviewing the process to declare City -owned property as surplus. The City Manager added that should the Council proceed with this direction, it would be an indication that the City is interested in selling or conveying properties to Habitat for Humanity. Mayor Pro Tem Monahan stated that he would have some concerns if no one else were permitted to express interest in the properties. The City Manager noted that the list would need to be expanded if additional properties are considered, and reported that a memorandum from Planning Manager Perry Valantine indicates that four properties should be conveyed to Habitat for Humanity. Mayor Buffa was concerned about interaction with adjacent property owners, as in the case of Mr. Tavares. The Redevelopment and Housing Manager gave her under- standing of the surplus property process: should there be no interest from the Redevelopment Agency or other public entities, then the property could be sold to the adjacent property owner. Council Member Cowan commented that the recommenda- tion is to begin the surplus property process on all sites listed in the two memorandums from the Planning Manager dated May 29 and June 20, 1997, except for the Westside Substation, starting with. the properties listed in the letter dated June 12, 1997, from Habitat for Humanity. The City Manager suggested that the remaining City -owned parcels not considered for low income housing be evaluated for other purposes. Mr. Korando requested that the offer be extended back to Habitat for Humanity if property owners in the area show no interest in the adjacent City -owned property. Jim Begin, 2123 Sterling Avenue, Costa Mesa, supported Habitat for Humanity, but wondered what the City's options :139 141D MOTION Gave Directions to Staff on City - owned Surplus Property Spring and Fall Neighbors -for - Neighbors Events Were for the parcels. Mayor Buffa replied that the Council was being asked to consider declaring some City properties as surplus; and on a parcel -by -parcel basis, this item would be considered by both the Agency and the Council. He suggested that Mr. Begin keep in touch with Housing Manager Ullman to receive updated information. i Mary Hornbuckle, 2221 Raleigh Avenue, Costa Mesa, urged Council to support Habitat for Humanity's request to construct affordable housing at the locations previously mentioned. She also asked if staff could visit the small parcel on the north side of the cul de sac on Raleigh Avenue I hich is overgrown with weeds. A motion was made by Council Member Cowan, seconded by Council Member Somers, and carried 5-0, authorizing staff to proceed with appraisals and the process of declaring as surplus those City -owned properties contained in the interoffice memorandum dated May 29, 1997, and all properties except 5657567 West 18th Street shown in the interoffice memorandum dated June 20, 1997; and requesting staff to return with options for each parcel. Mayor Buffa's request to remove 2136 Raleigh Avenue from the list was not supported by Council. The Redevelopment and Housing Manager summarized the Agenda Report dated June 25, 1997, noting that eight events have been held since the program began in 1993. i She reported that at the Council meeting of June 16, 1997, staff asked for direction on selecting a location for the fall, 11997, event; however, Council requested an analysis of the costs for both the smaller spring, and larger fall events prior to making a decision. The Redevelopment and Housing Manager referred to the list Of tasks necessary to maintain the events, and stated that because of the growth of these projects, it is no longer possible to maintain coordination by in-house staff. Based on the assumption that the Council desires to continue the events at the present scale, she reported that there is $67,930.00 appropriated in the 1997-98 Community Development Block Grant (CDBG) budget for both the spring and fall events. She reviewed Alternatives A and B, stating that staff preferred Alternative B. Council Member Somers noted that 75 percent of the cost is for staff salaries and overhead. The City Manager stated that the idea of using a consultant was simply a means by which to privatize the events and alleviate staff from ;devoting so much time to these projects. Mayor Buffa thought that trash hauling has the largest impact on the ;neighborhoods. He stated that a morning "coffee, danish, and bagel kick-off" followed by everyone picking up trash would receive his support. . (Council Member Cowan believed that the program was a public relations -community building event, and was concerned that the entire program was being operated by Housing and Community Development and the City ;Manager's office. She believed that the Community Services r-7 LJ 1 Department should be involved. The Redevelopment and Housing Manager responded that Community Services does do certain tasks but was uncertain if that department had the time or budget to do more. MOTION On motion by Council Member Erickson, seconded by Mayor Selected Option B; Pro Tem Monahan, and carried 5-0, Alternative B was Gave Directions to selected (which includes a small lunch, and the location Staff being the Rolling Homes Senior Mobile Home Park); and at the request of Council Member Cowan, added a direction to staff to investigate the possibility of placing this program under the direction of the Community Services Department. After discussion, it was decided that if vendors, such as Taco Mesa, want to participate, they would be welcome to do so; however, no staff support would be involved. ADJOURNMENT The Mayor declared the meeting adjourned at 7:25 p.m. Mayor of the City of Co t esa ATTEST: Deputy City Cler of the City of Costa Mesa 1 141