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HomeMy WebLinkAbout12/14/1998 - City Council Special Meeting - Redevelopment Agency118 ROLL CALL SPECIAL JOINT CITY COUNCIL AND REDEVELOPMENT AGENCY MEETING CITY OF COSTA MESA DECEMBER 14, 1998 The City Council , and Redevelopment Agency of the City of Costa Mesa, California, met in special joint session on December 14, 1998, at 4:00 p.m., in Conference Room 1-A of City Hall, 77 Fair Drive, Costa Mesa. Notice of the special meeting was given as required by law. The meeting was called to order by Mayor/Agency Chairperson Monahan. Council/Agency Members Present: Mayor/Agency Chairperson Gary Monahan Mayor Pro Tem/Agency Vice Chairperson Libby Cowan Council/Agency Member Joe Erickson Council/Agency Member Heather Somers- Council/Agency Member Linda Dixon Council/Agency - Members Absent. None Officials Present: City Manager/Agency Executive Director Allan Roeder City/Agency Attorney Thomas Kathe Redevelopment and Housing Manager Muriel Ullman Assistant City Engineer Ernesto Munoz Project Administration Manager Larry Arruda Budget and Research Officer Carol Jacobs Accounting Supervisor Diane Butler POSTING The Agenda for the Special Joint meeting of the City Council and Redevelopment Agency was posted at the Council Chambers and Police Department on December 10, 1998. MINUTES On motion by Council/Agency Member Erickson, seconded by Council Member/Agency Vice Chairperson Cowan, and carried 5-0, the minutes of the regular Redevelopment Agency meeting ;and Special Joint Council/Agency meeting of October 12, 1998, were approved as distributed. REDEVELOPMENT The Redevelopment and Housing Manager reported that in AGENCY ANNUAL accordance with the Bylaws of the Redevelopment MEETING Agency, the annual meeting of the Agency shall be held at a public meeting on the date which corresponds with the Agency's regularly scheduled December meeting in even -numbered years, for the 1 LJ 1 purpose of selecting a Chairperson and Vice Chairperson for two-year terms. Selection of Agency Chairperson Monahan called for nominations for Chairperson Chairperson and Vice of the Agency for a two-year term, expiring in December, Chairperson 2000. Agency Member Erickson made a motion to nominate Agency Member Somers as Chairperson. The motion was MOTIONS seconded by Vice Chairperson Cowan, and carried 5-0. The Selected Somers as new chairperson assumed the Chair and called for Chairperson and nominations for Vice Chairperson of the Agency. On motion Cowan as Vice by Agency Member Erickson, seconded by Chairperson Chairperson Somers, and carried 5-0, Vice Chairperson Cowan was selected for a second term which will expire in December, 2000. Chairperson Somers closed the Agency's annual meeting. PUBLIC HEARING Council Member/Agency Chairperson Somers announced Council Options for that this was the time and place set for the public hearing to Surplus City -owned consider the options available to Council regarding surplus Properties City -owned properties. Motion to Approve A motion was made by Mayor Pro Tem Cowan, seconded by Option (b) was Council Member Erickson, to select Option (b), aid and Withdrawn cooperate with the Redevelopment Agency to plan and develop affordable housing by Habitat for Humanity at 282 and 286 Del Mar Avenue; and directing staff to determine if there is any interest from adjacent landowners concerning properties at 2136 Raleigh Avenue, 2135 Sterling Avenue, and 2136 Wallace Avenue. Since the public hearing was still open, ' Mayor Pro Tem Cowan withdrew her motion until public input was completed. In response to a question . from Mayor Monahan, the Redevelopment and Housing Manager confirmed that set- aside money is not tied to surplus City -owned properties for development by Habitat for Humanity. Council Member Somers referred to Page 3 of the Agenda Report "...legal costs would 'need to be..." and asked if this referred to a definite dollar `amount. The Redevelopment and Housing Manager responded that tax increment generated for low and moderate income housing is approximately $40,000.00 119 The Redevelopment and Housing Manager summarized the Agenda Report dated December 14, 1998, and presented two options for consideration: (a) Continue proceedings for disposition of designated surplus City -owned properties under Government Code proceedings; or (b) Aid and cooperate with the Redevelopment Agency to plan and develop affordable housing by Habitat for Humanity of - Orange County, Inc. Mayor Pro Tem Cowan stated that she requested that this item be brought forward based on a request from Habitat for Humanity, and because the Redevelopment Agency moved toward developing a park on the Maple Street/Victoria Street site, which was in the original contract with Habitat. It was her opinion that the City should honor the original agreement by providing four properties to Habitat. She stated that Habitat is a premier group for developing affordable, single- family homes. Motion to Approve A motion was made by Mayor Pro Tem Cowan, seconded by Option (b) was Council Member Erickson, to select Option (b), aid and Withdrawn cooperate with the Redevelopment Agency to plan and develop affordable housing by Habitat for Humanity at 282 and 286 Del Mar Avenue; and directing staff to determine if there is any interest from adjacent landowners concerning properties at 2136 Raleigh Avenue, 2135 Sterling Avenue, and 2136 Wallace Avenue. Since the public hearing was still open, ' Mayor Pro Tem Cowan withdrew her motion until public input was completed. In response to a question . from Mayor Monahan, the Redevelopment and Housing Manager confirmed that set- aside money is not tied to surplus City -owned properties for development by Habitat for Humanity. Council Member Somers referred to Page 3 of the Agenda Report "...legal costs would 'need to be..." and asked if this referred to a definite dollar `amount. The Redevelopment and Housing Manager responded that tax increment generated for low and moderate income housing is approximately $40,000.00 119 120 per year; administrative costs and legal fees are budgeted, and whatever remains is budgeted for projects. She noted that surplus money has been carried over from prior years; however, money ;is being spent rapidly, mainly because of the First Time Home Buyer Assistance Program. She added that $1.5 million ' in HOME funds has been reallocated for single-family rehabilitation. Council Member Somers again referred to Page 3 of the Agenda Report, the section entitled "Alternatives Considered", and asked for clarification of the statement contained therein. The Redevelopment and Housing Manager ! explained that Mayor Pro Tem Cowan had requested that four parcels be removed from the surplus properties bid proceedings for exclusive negotiations with Habitat for Humanity; but should the City Council decide not to take such action, the properties should be included in the bid process for the general public and developers. Mayor Pro Tem Cowan asked about Habitat's priority in the bid process. The Redevelopment and Housing Manager replied that even; though Habitat may be given priority, it does not have priority standing. In addition, she stated that Council has the option to award Habitat the properties in cooperation with! the Redevelopment Agency in the development of affordable housing. The City/Agency! Attorney mentioned that the City has already issued a notice to all agencies of the availability of the surplus properties, but no responses were received. He also reported that priority was given to Habitat for Humanity some time ago. Mayor Monahan referred to Attachment No. 2 of the Agenda Report entitled 1 "Summary of Surplus Properties and Recommendations" and asked if any interest had been shown by the property owner adjacent to the Wallace Avenue parcel. The Redevelopment and Housing Manager replied that no inquiry was received. The Assistant City Engineer reported that the adjacent property owners! of the sites on Sterling and Raleigh Avenues contacted the City and are in the audience. ®an Makaena, 2132 Raleigh Avenue, spoke on behalf ,of Ivan and Jenny Tavares, who have owned the property for 18 years. Mr. Mekaena reported that Mr. Tavares expressed his desire to purchase the sites at 2136 Raleigh Avenue and 2135 Sterling Avenue at the appraised price of $58,000.00. The City/Agency: Attorney emphasized that Council has the right to change its action; however, it had already given a first priority to residents who want to build single-family dwellings and live in them. He reported that if the properties were to be sold ; through the bid process, the City will be bound by some of those priorities. He noted that preference has been given to ' adjoining property owners recognizing that some of the! surplus parcels will affect their properties. He stated for the record that the Agenda Report shows an appraised value of :558,000.00 per parcel and Mr. Tavares will be required to pay in excess of $116,000.00 for both sites. In addition, the City/Agency Attorney reported that 3 121 Mr. Tavares may not qualify for purchase of the parcel at 2135 Sterling Avenue since he, is not an adjoining property owner of that" site. Mark Korando, Habitat for Humanity of Orange County, Inc., 8361 Westminster Boulevard, Suite 210, Westminster, recognized the Council's option to request Habitat to bid competitively for the parcels; but instead of going through the bid process, he thought it would be, helpful to receive some direction. Mayor Monahan believed that the Council could work with Habitat to find available properties for sale elsewhere in the City that- are not 'designated surplus". Mr. Korando reported that Habitat has a partial. listing of properties in Costa Mesa, and is„willing to work with the City to purchase private parcels; except that there may be difficulty in coming to an agreement on price which could increase the cost of affordable housing. He commented that purchasing such properties would depend upon the amount of money the City is willing to spend for affordable units. In response to Council Member Dixon's inquiry, Mr. Korando stated that he spoke only for Habitat for Humanity of Orange County, Inc., an affiliate of Habitat for Humanity, and mentioned that the Orange County affiliate has not undertaken demolition projects since agencies usually provide raw land. There being no other speakers, the Mayor closed the public hearing. MOTION A motion was made by Mayor Pro Tem Cowan, seconded by Selected Option (b) Council .Member Erickson, and carried 4-1, Mayor Monahan voting no, to select Option (b) which is to aid and cooperate With . the Redevelopment Agency to plan and develop affordable housing projects by Habitat for Humanity of Orange County, Inc., on properties located at 282 and 286 Del Mar Avenue and at 2136 Wallace Avenue. Mayor Monahan did not support the motion as stated because he could only agree with the 2136 Wallace Avenue proposal, and the possibility of looking for other sites to develop. He noted that a home was recently constructed by Habitat at 212 Del Mar Avenue, and he questioned whether Habitat should construct two more projects so close to one another. He also pointed out that a recent change in direction was made by Council in regard to developing a City park, rand this motion'.to select Option (b) would reverse that decision. Mayor Pro Tem Cowan responded that she had concerns about the Council's having completely changed its decision on the other properties that had been designated to accommodate three homes via an agreement with Habitat. She would have preferred having the City honor the original agreement which would have provided four sites for Habitat projects. She stated that costs would increase dramatically if properties were sought in the open market. 1�2 Council Member Erickson stated that the project which was completed at 212 Del Mar Avenue is an asset to the community, and ',once the sign is- removed, people will not know it is a Habitat project, and the area will have quality single-family housing. Mayor Monahan 1 stated that he, too, was proud of the completed project at 212 Del Mar Avenue and would like to see the City go forward with the project at 2136 Wallace Avenue as well as seeking other properties in the City. He mentioned that when residents in the Maple Avenue area learned of Habitat's proposal for 212 Del Mar Avenue, they decided they wanted a park, in spite of the existing agreement. He was concerned that the same problem would arise if two additional projects were constructed on Del Mar Avenue. I Council Member Somers asked for clarification of the zoning at 282 and 286 ;Del -Mar Avenue, and asked if Habitat for Humanity intended to build single-family homes on those lots. Mr. Korando replied that the plan is to build a condominium project of three to four single-family detached homes. The City/Agency Attorney reported that lots could be combined for a total of 15,200 square feet, upon which four units could be built, similar to the project adjacent to the site. At the request of the Mayor, the City/Agency Attorney repeated that the City Council's direction was that there would be a preference to individuals who want to build owner -occupied homes, and this applies to all surplus City - owned properties listed. He stated that these particular properties have a higher appraisal value because of the R2 zone which allows two houses per lot. He also noted that there are no restrictions on these properties except for the regular zoning and permit requirements. AGENCY NEW The Redevelopment and Housing Manager requested BUSINESS direction from the Redevelopment Agency concerning Habitat for Humanity availability "of.' and negotiations for, surplus City -owned Negotiations for parcels, and referred to Council's direction given at their City -owned Parcels Special City Council meeting held earlier in the afternoon. The Executive Director asked the Agency to designate "the Executive Director, or his designee", for the purpose of negotiating withi Habitat. He felt that it may not be appropriate for him to negotiate on properties which are within 300 feet of his residence. The City/Agency Attorney clarified the action 'required of the Redevelopment Agency in working with the City to purchase City -owned properties, and then negotiating with Habitat for Humanity. MOTION Agency Vice Chairperson Cowan made a motion authorizing Gave Directions the Executive Director, or his designee to negotiate with to Staff Habitat for Humanity of Orange County, Inc., and for the Agency to work with the City on the purchase of properties identified in the Fast motion. The motion was seconded by Agency Member Erickson, and carried 5-0. WARRANT On - motion by Agency 'Member Erickson, seconded by RESOLUTIONS Agency Member Monahan, and carried 5-0, Warrant Resolution CMRA-258 was ratified, and Warrant Resolution CMRA-259 was approved. COUNCIL/AGENCY Mayor/Agency Member Monahan, stated that because MEMBERS several Agency projects involve City funding and are of COMMENTS interest to a wide section' of the community, he would suggest that future Redevelopment Agency meetings be held Televising Agency in the Council Chambers so that they can be televised. He Meetings added that there .will be no impact on the Planning Commission meetings which are held at 6:30 p.m. At the request of the City/Agency Attorney, it was agreed to bring this item back to. a Special Redevelopment Agency meeting following the regular City Council meeting on December 21, 1998, at 6:30 p.m', in the Council Chambers of City Hall. ADJOURNMENT Council Member/Agency Chairperson Somers adjourned the special joint meeting to a Special Redevelopment Agency meeting on December 21, 1998, at 6:30 p.m., in conjunction with the regular City Council meeting. ot.- 1 7 Mayor of the City of Costa Mesa ATTEST: Deputy City Verk of the City of Costa Mesa 1 1.23