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HomeMy WebLinkAboutMinutes - 10-27-99 - Adjourned w CDC 13305 MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING OCTOBER 27, 1999 The City Council of the City of Downey held an adjourned regular meeting at 5:05 p.m., October 27, 1999, in the Council Chamber of the Downey City Hall, Mayor Keith McCarthy presiding. PRESENT: Council Members: Keith McCarthy Mayor Joyce L. Lawrence Mayor Pro Tem Robert C. Winningham Meredith H. Perkins Gary P. McCaughan ALSO PRESENT: Gerald Caton, City Manager Charles Vose, City Attorney Lee Powell, Assistant City Manager Judith McDonnell, City Clerk Darrell George, Director of Community/Economic Development PRESENTATIONS BY DEVELOPERS ON THE NASA PROPERTY Mayor McCarthy outlined the format for this meeting, whereby it is intended the presentations will be made in the order listed on the agenda, with approximately 60 minutes allotted to each developer and a question and answer period after each presentation for the City Council. There will be a short recess between the presentations. At the end of the presentations, the public will be given an opportunity to ask questions. Legacy Partners/Vestar Development Company presented their proposed project, with Mr. Erik Hansen, partner with Legacy Partners, discussing their vision for development of the pro- perty, which embraces the historical significance of the site. It will be a mixed use project with a place for the people of Downey to work, shop, dine and enjoy. He and Mr. Lee Henley, President of Vestar Development, gave a brief overview of their companies, which included major projects they are currently, or have been, involved with in other communities. Mr. John Thomas, President of Ware & Malcomb, design architects, discussed the planning criteria in approaching this project and the uses that would integrate with surrounding neighborhoods. It will be a mixed use project including retail; multi- tenant corporate industrial and manufacturing; a film and sound studio; and a commercial service center. When complete, the project would include such amenities as a day care center; an aerospace museum; a walking trail through the site; and a school and park reserve. It is their intent to develop the project in four phases, with the first phase being the entire retail portion, a multi- tenant industrial campus and film and sound studio that will begin generating revenue. He commented on plans for historical preservation of the site. City Council Minutes 10/27/99 (Adj.) - 13 30 6 6 Mr. Rick Kuhle, Vice President of Vestar Development, with the aid of a power point P � p P presentation, described plans for the retail component of the project with proposed use of heavy landscaping and water features. A video was shown regarding the projects Legacy Partners and involved y Vestar Development have been nvolved with, as well as describing their vision for the Downey Town Center project on the NASA site. Council Member Perkins asked questions concerning Vestar's projection for a project under way in Los Angeles on property previously owned by the Southern Pacific Railroad. He also asked questions concerning the anticipated length of time for the Downey project; whether the project could begin prior to the City acquiring the remaining 100 acres; the proposed retail development; and the type of dinner houses anticipated. Mr. Kuhle anticipated it would take 3 -1/2 to 4 years for this project, noting it could commence prior to the City's acquisition of the remaining 100 acres. He elaborated on the proposed retail element and commented that the type of dinner houses would be similar to developments the y have done in other communities. Council Member McCaughan said he was not in favor of a grocery store or a dry cleaners, but was told it is proposed as a one -stop shopping area for the public. He indicated' that if a super market is selected he would prefer it be up- scale, such as a Trader Joe's. Council Member Lawrence commented on the need for a major grocery store in the area south of Stewart & Gray and noted people tend to shop in their own areas. At her request, Mr. Hansen explained the concept of creating an environment which is attractive but new, with an historical tie and creating space for a variety of tenants that would create higher paying jobs. She favored the proposed quiet areas, water features, drive - through and walk - through areas and landscaping that would benefit everyone and asked if historic artifacts would be included in the development. Mr. Hansen replied yes and outlined their plans to work with the City. Council Member Winningham noted there have been discussions with an interested party on the southeast portion of parcel four toward Imperial Highway, and he asked that if the discussions � were to terminate, what Legacy/Vestar would be able to do with that parcel. Mr. Hansen explained it would allow them to continue the business park development into that area of the property. Mayor McCarthy expressed his understanding the project would be four phases over six years, but that it had been modified with consideration of a studio. Mr. Hansen explained a studio would provide an opportunity to generate some activity, interest, focus and revenue on that property. Mayor McCarthy pointed out it is hoped that at the first meeting in December, the Council will be able to arrive at a decision regarding selection of a developer. He then requested Legacy / Vestar to leave the mock -up of their project for display at the public meeting to be held in November. The meeting was recessed at 6:15 p.m. and reconvened at 6:25 p.m., with all Council Members present. Lennar/Industrial Realty Group (IRG) began their presentation to the Council, headed by Stuart Lichter, President of Industrial Realty Group, who discussed how the two firms were brought City Council Minutes 10/27/99 (Adj.) -2- 13 together to work as a team, noting his company specializes on reuse of existing buildings, whereas Lennar specializes in new construction. He then presented their vision for the project, reviewed the strengths of the individual partner members, and discussed the site plan. They envision the project as a multi -use site, including a studio, a retail component and a business park. Mr. David Team, President of Lennar Partners' real estate operations in the western United States, with projects from the Bay Area to southern California, Texas and Colorado, expressed excitement about their involvement in a proposal for development of the NASA site. With the aid of a power point presentation, he noted the strengths of Lennar Partners, which was founded in 1954, and the number of the J ro'ects have done nationwide, including reuse of former military bases, which also p Y involved some environmental issues. Mr. Stuart narrated a power point presentation and reiterated that his company specializes in taking over large industrial facilities for reuse and reoccupying the space. They have done projects in approximately 20 states. He commented on some of the projects they have done with a mix of retail, office, industrial, creating public parks, as well as this type of development which can be done on the NASA site. Also added to their team are people involved in the movie industry. Mr. Michael Bobenko with the Entertainment Industry Development Corporation (EIDC) explained his involvement in the project to promote the studio component, which he feels has a good chance of being successful. He has approximately 15 years experience in the industry working with production companies and location managers. Mr. Stuart went over the site plan for the NASA project, which includes a retail center, a studio component, restaurants, a new building component devoted to hi -tech studio - related busi- nesses; a business park; and industrial space. Mr. Stuart was asked by Council Member Perkins if there were any definite plans for people to come into the buildings. He explained they are confident in the ability to turn the buildings into a studio. Tentative inquiries have been made regarding retail uses. As soon as the property is available, they can begin to negotiate for its use. In response to a question by Council Member Perkins, Mr. Cluff gave the composition of membership on the Board of Directors of the non-profit corporation he is involved with in regard to the studio industry. He pointed out there are not many buildings or property like the one located on the NASA property that would suit filming needs, and he noted this property fits the desirable needs of the film industry. Council Member McCaughan inquired whether the project would be one story or two and was told it would be single story. He then asked if there would be any internal restaurants and was informed there are restaurants planned for the perifery. Mr. Stuart explained how the buildings would be modified to accommodate the loading facilities for the retail uses. The museum component would be located in the rotunda building. Council Member Lawrence feels by the Council's questions that the retail component should be unique. She asked how Mr. Lichter would attract these types of businesses to the project, and he noted there are a number of uses under served in the area, which he would discuss with the City. City Council Minutes 10/27/99 (Adj.) -3- 13308 Council Member Lawrence indicated she is not interested in putting in another home improvement g rovement p center and feels that good paying jobs are important to the community. At his request, Council Member Winningham was provided input from Lennar/IRG on how they would propose development of the property in phases. Mayor McCarthy noted the unique component of a film studio, which he feels is a good idea. He asked about the likelihood of a film company corning in on a permanent basis. Mr. Cluff responded there is a good likelihood, explaining there have been several large film companies interested in the site since there is a shortage of space for this type of use, although they are not leased on a long -term basis but on a project -by- project basis. He anticipated annexing to Building 290 a facility for permanent uses of production companies. Council Member Lawrence noted the Federal budget contains $4 million for a space camp for this site, which is currently involved in a feasibility study, and that this type of facility generally includes an Imax theatre devoted to science and a space theme movies. She hoped that the firm the City partners with for the NASA project would include this in their plan. Council Member McCaughan asked if the southeast corner does not integrate with the proposed studio, whether it would be a good location for a corporate headquarters type business park for major companies. The response was yes. The meeting was recessed at 7:17 p.m. and reconvened at 7:38 p.m., with all Council Members present. The final presentation was given by The Ezralow Company, with Mr. Marshall Ezralow, President of the company, giving opening remarks and commenting on the background of the business. He pointed out they use their own company funds for projects they are involved with, which number over 500, and noted his sons are also involved in the business. Mr. Bryan Ezralow discussed the company's track record, noting their experience in ,,,.■ construction of retail units, and introduced the company's team selected for this project. He showed a video of the projects the company has been involved with and their vision for the Downey Business Center. He emphasized the financial strength of the company; the continuity of the company and that they maintain their projects for a long period of time. Mr. Doug Gray commented on their proposal for a mixed use development, which includes utilizing all of Building One, along with the office component in front, as studio space. He described the proposed location for the retail component and office space, including studio ancillary uses; the school and park site; and space museum. Mr. Marc Ezralow noted his experience in producing feature films, as well as being involved with internet companies. He stressed the need for studio space and noted the NASA site would be an excellent location for internet companies. Mr. Steve Batcheller,with DB Richard Ellis Co., emphasized the strength of the Ezralow Company, the quality of their projects and the continuity of the company. He expressed confidence in City Council Minutes 10/27/99 (Adj.) -4- i330g being able to fill space on the property and noted their intent to market this site over the worldwide web. He narrated a power point presentation of the site plan and proposed development of the site. Council Member Perkins asked how long it is anticipated to complete the build -out of the site. The response was 3 to 3-1/2 years. He felt the studio concept is a gamble, which uses a large portion of the land. Council Member Lawrence referred to the proposal for an internet facility and noted it would not bring in revenue. At her request, Mr. Bryan Ezralow provided input regarding internet companies that would be interested in this site. Council Member Winningham asked if a home improvement center is a major component and whether it could be exchanged for something else, and the response was yes. He then asked if the City were to proceed with development of the project only on the portion of property owned by the City at the present time, would Ezralow Company still be willing to go forward. The response was also yes. Council Member Lawrence asked the Ezralow Company if they would consider being a partner in a space museum and Imax theatre, and the response was affirmative. Council Member Perkins noted the large percentage of property being designated for a studio and questioned what benefit it would be for the community. He was informed it would allow the utilization of an existing building for immediate use, create jobs and space for office tenants. Mayor McCarthy requested more specifics on the retail element, other than a home improve- ment center. Mr. Gray explained the site plan includes a major merchandiser and medium size businesses, and if the home improvement is not included, it would allow for two major merchandisers and some smaller or medium type businesses. The meeting was recessed at 8:22 p.m. and reconvened at 8:28 p.m. with all Council Members present. Mr. Harold Tseklenis, resident of 8 Street, inquired about the approximate capital investment this project involves. LegacyfVestar estimated approximately $150 million based on their site plan and with the value of the land. Lennar Partners /IRG estimated without land value $200 million. Ezralow /- Ellis estimated $175 -$200 million total upon build -out. Mr. Robert Bryan, 7214 Benares Street, inquired regarding the impact the project will have on the immediate residential area, and what would be the incentive to bring people to this site. He also commented on the need for restaurants. Legacy /Vestar: Mentioned a shortage of restaurants and that a number of fine sit -down restaurants would be considered with input from the community. There is also a need for other for other uses on the site. A circulation plan was prepared to eliminate any intrusion into the residential area. Lennar /IRG: Addressed the traffic issue, noting their studies do not anticipate additional traffic impacts. Minimal impacts would be created through overall design of the project. City Council Minutes 10/27/99 (Adj.) -5- 13 310 Ezralow/Ellis : Noted the responsibility of the company to tie -in uses so that they do not generate more traffic for the area. It was felt 3-4 quality restaurants could be filled on the site. John Lacy, 8419 Dacosta, read the conclusions of the Sedway Group following their analysis of the property as it relates to a sound stage studio, which stated in part that it would be a risky development, not well located for entertainment industry professionals, would involve high development costs and the space is not flexible. Julio Giron, 8324 Davis Street, asked if the site is clean of toxics; what would be the guarantee '^ of jobs for residents; and indicated he would like to see places where he can go to dance and enjoy music without interfering with the residential community. Mr. George responded that staff has been working with representative of NASA regarding environmental condition of the site and that parcels 3 -6 have been certified as being clean. The remaining parcels cannot be conveyed to the City unless they environmentally clean. Legacy /Vestar: Their plan will bring in both white and blue collar jobs because it creates both industrial and office space for good, high paying jobs. Did not respond regarding a dance facility. Lennar/IRG: The sound stage studio component will create jobs as the facility is used, and it will also bring ancillary services to the site. Had no response relating to a disco facility. Ezralow/Ellis: Entertainment technology is a perfect business to bring in employment. Could not add any information regarding dance entertainment. Eraj Nasrolahi, representing Umex Moulding, 9151 Imperial Highway, expressed a need for growth and asked that the area under discussion not be landlocked. He commented on the intent to move the portion of his business located in Lynwood to Downey, which will require additional property for development in that area. Connie Patton, 7833 Kingby Street, asked if the Federal Government declares certain buildings as historical, what is the experience of the three developers with regard to developing around historical buildings. Mr. George commented on the investigation currently under way to determine whether any of the buildings would be declared historical. Vestar/Le ac : It would impact their site plan, but they do have experience with historic g Y p p Y buildings. The site would have to be reassessed and studied as to what would be viable. Lennar /IRG: Has been preserving buildings for 25 years. Ezralow /Ellis: It would be difficult to assess until they see the final report. They also have experience with historic preservation of buildings, but it would require re- thinking. City Council Minutes 10/27/99 (Adj.) -6- 133 11 Mayor McCarthy gave his "wish list" for the project, which included a museum reflecting the aerospace legacy, with possible participation from the developer and key tenants on funding the museum and serving on the board of directors; an education center, including space camp activities; an Imax theatre; preservation of the frontage along Lakewood Boulevard of the original building and rotunda landscaped roadways with a jogging and cycling path and exercise route; public art in key areas; and a design that would provide gateway integration of retail along with the other components. p He suggested other uses and activities that would benefit the youth of the community and favored textured pavements. Council Member McCaughan concurred with Mayor McCarthy regarding the museum and educational component and historic preservation. He noted this is an opportunity for a built -out city Y Y to develop a site that will dovetail with other synergies that already exist. He favored the movie studio concept balanced with retail and restaurants and said the museum component will be an important part p p p of the project. Mayor McCarthy thanked all developers for their presentations. He commented on the issues that will be taken under consideration by the Council prior to making any decision. ADJOURNMENT: 9:15 p.m. \Yi/tC-ea/ty i // J dish E. McDonnell, City Clerk eith * McCarthy, Y, or Y H: \CCLERKUMCDONNE\MINUT ES \CC 1 025a . WPD City Council Minutes 10/27/99 (Adj.) -7-