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HomeMy WebLinkAboutMinutes-05-07-79-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING MAY 7, 1979 The City Council/Community Development Commission of the City of Downey held an adjourned regular meeting at 4:30 p.m., May 7, 1979, in the Council Chamber of the Downey City Hall, Mayor/Chairman Kenneth J. Miller presiding. PRESENT: Council Members/Commissioners: Milton R. Mackaig Theodore H. Jackman Mayor Pro Tem/Vice-Chairman Lyell W. Swearingen William L. Greene Kenneth J. Miller Mayor/Chairman ALSO PRESENT: Charles W. Thompson, City Manager Ervin Spindel, Director of Community Development Ronald Leege, Director of Finance Howard Stup, Building Official Thomas Tincher, Housing & Redevelopment Coordinator Robert L. Shand, City Clerk -Treasurer Mayor Miller announced the purpose of the meeting is to discuss the Diller Project in Subarea C. He then called upon Mr. Frank Gasdia to give an update on what is occurring with the doctors' Brookshire medical building project. Mr. Gasdia said 92 percent of the members in the doctors' partnership have approved the construction of an addition to the present building. The, next steps are to obtain the City's thinking on the project, plan preparation and adequate financing. The bank says adequate financing is available with no problem. Mr. Gasdia explained he has several letters of intent from doctors, some of whom are in the present medical building. The letters date back to November 1978 and in- clude doctors who are not in the medical building but who want to be associated with the group. Because of the letters of intent, the doctors retained the services of an architect, Bill Hanes, to draft plans for a building with adequate parking. The addition would contain 30,000 square feet of floor space and additional parking. Property owned by Dr. Jay and Dr. Wilkins would be considered for parking use adjoining Dolan Street. The layout would consist of the medical building, the convalescent building, and open parking area. The latest project plan calls for a 30,000 square foot building with a three-story parking structure. The addition would be to the west of the present structure, and the parking structure would be in the northerly area. Mr. Gasdia said the doctors want to proceed with the project, but the question is now one of where does the City want the parking area. Councilman Jackman inquired when the outside doctors desire to occupy the new building. Mr. Gasdia replied the doctors are eager to move into the new building as soon as possible. He placed a chart on the wall showing the draft of the proposed new buildings and parking area. Discussion of the plan followed. Mr. Thompson pointed out Mr. Diller desires to proceed alone on a project that will lead to the entire development of the two block area. Mr. Tincher presented Mr. Diller's project plan that would include a 90 to 96 unit senior citizen board and care facility on the west end of the parcel along with the development of a four story 40,000 square foot building. He anticipates 30,000 square feet of medical offices and 10,000 square feet of general professional offices. All parking for phase one could be accommodated on -site and would not necessitate a parking structure. Under phase two, when a second building is con- structed, another parking structure could be developed to serve the demands created by the new facility. The plan also provides for landscaping. Iowa Street would be closed off and driveway access points would still permit entry into the area off Dolan and Brookshire Avenues. Mr. Tincher then referred to a prepared paper entitled Diller Project Financial Analysis outlining the costs the Commission would incur and the amount of revenues to be generated by both facilities. Cost estimates are preliminary. Sewer costs are not reflected in this analysis. Council/Community Dev. Comm. Minutes 5/7/79 (adj.) -1- :® 22 The Owner Participation Agreement (OPA) proposed language would include that between the time the agreement is executed by the Commission within a six year period, Mr. Diller would reserve the property for the construction of a comparable medical office related facility on the site. Atthesame time, the Commission will commit that the City will assist in the construction of a parking facility in a leaseback agreement that will support and allow for the new development. Councilman Jackman inquired if construction of an additional parking facility were not financially feasible, would that release Mr. Diller from his commitment? Also, how does the Commission commit a Commission six years from now? Mr. Tincher replied that if the City does not find it financially feasible, Mr. Diller would want to include in the agreement a provision he would still have the option to proceed with the office development. Mr. Thompson explained the Commission would not be putting up any money unless it was able to do so as the result of Mr. Diller's third phase development (second office building). Councilman Jackman questioned that if six years from now the Development Commission finds it is not feasible to construct another building, whether Mr. Diller would then be released from constructing his building. Councilman Mackaig said he will not vote for a partial development, i.e. phase one and phase two. Also, he understands Mr. Diller will go for the entire project if the Commission so desires. This project would include parking. Councilman Mackaig inquired regarding the status of moving existing tenants off Subarea C property. Mr. Thompson explained Mr. Diller will acquire the property. Mr. Tincher said Mr. Diller is awaiting development of a formal agreement before acquiring the privately owned property on Subarea C ($105,000 acquisition cost). Ms. Maxine Chavez of Municipal Services, Inc., reported on moving cost estimates of $16,000. Related expenses are estimated at $6,000 for the Rollo property. Mr. Richard Hill of Municipal Services, Inc., addressed Councilman Jackman's question regarding committing the Commission six years hence. What would exist is an agreement to have the development include three quarters of the lot in an exclusive negotiating agreement. The Commission and Mr. Diller is agreeing that within the next six years each party would only discuss development of the site and, likewise, Mr. Diller would only proceed to construct an office type development. Discussion followed regarding the Diller Project Financial Analysis, item by item. Mr. Spindel said the Analysis reflects the maximum cost for minimal improvements. In response to a question from Councilman Swearingen, Mr. Thompson explained the train of events and discussions leading to the Diller Project. only one OPA is to be signed at this time. The unused property parcels will be landscaped as lawns and cared for by Stanley Diller. The Commission will be responsible for what is now the Iowa Street right-of-way and what is now Davis Street right-of-way. Mr. Spindel commented on various ways for paying the sewer costs. The alternatives are Revenue Sharing Funds which would be paid for with connection fees; the possibility of an assessment district involving those properties enjoy- ing sewer use; or, Revenue Sewer Bonds could be issued. A connection fee would apply only to the new buildings such as Mr. Diller's building and the new Brookshire building. The total cost is estimated at $218,000 (not yet engineered).'____ Mr. Stanley Diller, 1177 South Beverly Drive, Los Angeles, stated the best program would have been to select the 55,000 square foot plan. However, he has contacted the Hospital Administrator and concerned doctors, and it has been decided to construct a 30,000 square foot building. Mr. Diller reviewed the original program involving the boarding/care home and the medical building (phase one and phase two). He, at this point, is willing to construct both units at the same time, which would undertake the whole program. The only difference would be 15,000 square feet less of the medical building. Council/Community Dev. Comm. Minutes 5/7/79 (adj.) -2- .632 It was moved by Councilman Jackman, seconded by Councilman Swearingen, and passed by the following vote to direct staff to bring back an Owner Participation Agreement for study. AYES: 4 Council Members: Jackman, Swearingen, Greene, Miller NOES: 1 Council Member: Mackaig Mr. Tincher requested a Commission study session at 4:30 p.m., May 14, 1979. Mr. Gasdia suggested all concerned staff get together and determine which plan is to be used and see what is to be done in the overall picture. Mr. Thompson requested Council to consider an alternate date for the May 22nd Council Meeting. The Council agreed to postpone the meeting to May 29, 1979, at 7:30 p.m. Mr. Thompson reported on the possibility of Council Members obtaining gasoline from City pumps to augment gasoline usage for City business. He said the City Attorney sees no problem if replenishment is based on public use. The City Attorney has also suggested checking the contract with the gasoline supplier re- garding resale question. There being no further business to come before the City Council/Community Development Commission, the meeting was adjourned at 6:06 p.m. 2,L/�"J t�_)/' _z Robert L. Shand, City Clerk -Treasurer f � Kenneth J. Mille May Council/Community Dev. Comm. Minutes 5/7/79 (adj.) -3-