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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 1 City Council Special Minutes 05/20/10 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. 2 City Council Special Minutes 05/20/10 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 3 City Council Special Minutes 05/20/10