HomeMy WebLinkAbout02a. Minutes - 05-20-10 Special Meeting
MINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
SPECIAL MEETING
MAY 20, 2010
The City Council of the City of Downey held a Special Meeting at 4:01 p.m., May 20, 2010, in
the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, Mayor
Anne M. Bayer presiding.
PRESENT:
Council Members:
Anne M. Bayer Mayor
Luis H. Marquez Mayor Pro Tem
Roger C. Brossmer
David R. Gafin
Mario A. Guerra
ALSO PRESENT:
Gerald M. Caton, City Manager
Edward W. Lee, City Attorney
Gilbert Livas, Assistant City Manager
Kathleen L. Midstokke, City Clerk
Desi Alvarez, Deputy City Manager/Special Projects
Mark Sauter, Deputy City Manager/Emergency Services
Scott K. Pomrehn, Assistant Deputy City Manager
Brian Saeki, Community Development Director
John Perfitt, Economic Development Director
Other City Staff
InvocationFlag Salute
The was delivered by City Clerk Midstokke. The was led by City
Clerk Midstokke.
PUBLIC COMMENT ON SPECIAL MEETING AGENDA ITEMS:
No one came forward to speak.
RECESSED TO CLOSED SESSION :
under the following authority
1. Government Code Section 54956.8 – Conference with real property negotiator Gerald
Caton re: property at 12224 Lakewood Boulevard (Downey Studios); negotiating party:
Stuart Lichter, Industrial Realty Group; under negotiations: price and terms of payment.
2. Government Code Section 54956.8 – Conference with real property negotiators Gerald
Caton and Edward Lee re: property at 11500 Brookshire Avenue; negotiating party:
Downey Regional Medical Center; under negotiations: terms and conditions of lease.
recessedreconvened
The meeting to Closed Session at 4:02 p.m. and in Open Session at
4:10 p.m. with all Council Members present. There were no actions to report.
1. RECEIVED AND FILED AFFIDAVIT OF NOTICE OF SPECIAL MEETING:
City Clerk.
It was moved by Council Member Brossmer, seconded by Council Member Gafin and was
receive and file.
unanimously carried to
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At this time, the Council Members made comments regarding the news today that Tesla
Motor Company will not be manufacturing cars in the City of Downey, but rather in Fremont,
California with the financial backing of Toyota Motors.
Council Member Brossmer expressed that he was shocked to hear the news and noted that
Downey is the third City that has been used by this company to simply get better business deals.
He indicated that many people worked very hard to get this deal finalized including City staff, City
Council, local and State elected officials. Toyota Motors used $50 Million to trump the deal with the
City of Downey. He concluded that Downey will move on and get something else for redevelopment
on the subject property.
Mayor Pro Tem Marquez expressed that he was shocked and utterly surprised that Tesla will
be using another site for their electric car manufacturing. Yesterday he was in Sacramento working
with State representatives Calderon and De La Torre for passage of Assembly Bill 2065 which will
help facilitate the redevelopment. Tesla could have and should have let the City know sooner and
prior to the press announcement. He indicated he is proud of the City Council and staff who worked
as hard as they could for this regional project. He concluded that this is a great piece of property
and other business entities will be interested.
Council Member Gafin indicated he is almost speechless and shocked and appalled. After
countless hours of work and negotiations, to string along the City of Downey is unconscionable.
Council Member Guerra said he felt betrayed and stabbed in the back and that Mr. Musk did
not act in good faith. He noted being informed by a call at 12:45 p.m. today from the Associated
Press. The Special Meeting was called today to approve the amendment to Lease Agreement with
Industrial Realty Group so that the project can be finalized. He expressed that Council and staff
worked very hard for over a year. He concluded by stating that Downey is a great, stable community
which is open for business.
Mayor Bayer indicated that she is stunned by the announcement that Tesla will be partnering
with Toyota Motors and manufacturing the electric cars in Fremont instead of Downey. She noted
that Downey and Tesla jointly testified to a legislative committee in Sacramento on Tuesday
regarding enabling legislation and how hard everyone has worked on this project. She concluded
that this is Tesla’s loss and not the City of Downey’s.
2. ADOPTION OF AN URGENCY ORDINANCE TO AMEND THE GROUND LEASE, DATED
DECEMBER 4, 2003, BY AND BETWEEN THE CITY OF DOWNEY AND INDUSTRIAL
REALTY GROUP, LLC (now comprised of IRG DOWNEY, LLC, a Delaware limited
liability company and PCCP IRG DOWNEY, LLC, a Delaware limited liability company):
City Attorney.
A. ADOPT ORDINANCE NO. _______, AN URGENCY ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF DOWNEY, MAKING FINDINGS FOR AND APPROVING
AN AMENDMENT TO THE GROUND LEASE, DATED DECEMBER 4, 2003, BY AND
BETWEEN THE CITY OF DOWNEY AND INDUSTRIAL REALTY GROUP, LLC.
This item was withdrawn by staff.
3. INTRODUCTION OF AN ORDINANCE TO AMEND THE GROUND LEASE, DATED
DECEMBER 4, 2003, BY AND BETWEEN THE CITY OF DOWNEY AND INDUSTRIAL
REALTY GROUP, LLC (now comprised of IRG DOWNEY, LLC., a Delaware limited
liability company and PCCP IRG DOWNEY, LLC., a Delaware limited liability company):
City Attorney.
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A. INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY,
MAKING FINDINGS FOR AND APPROVING AN AMENDMENT TO THE GROUND
LEASE, DATED DECEMBER 4, 2003, BY AND BETWEEN THE CITY OF DOWNEY
AND INDUSTRIAL REALTY GROUP, LLC.
This item was withdrawn by staff.
recessedreconvened
The meeting to Closed Session at 4:25 p.m. and in Open Session at
4:53 p.m. with all Council Members present. There were no actions to report. Council Member
Guerra did not participate in discussion of Closed Session item Number Two, due to a conflict of
interest by his company selling insurance to Downey Regional Medical Center.
ADJOURNMENT:
The meeting adjourned at 4:53 p.m.
___________________________________ ____________________________
KATHLEEN L. MIDSTOKKE, City Clerk ANNE M. BAYER, Mayor
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