HomeMy WebLinkAboutMinutes-10-02-79-Adjourned Regular MeetingMINUTES OF THE
CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF DOWNEY
ADJOURNED REGULAR MEETING
OCTOBER 2, 1979
The City Council/Community Development Commission of the City of Downey held
an adjourned regular meeting at 4:30 p.m., October 2, 1979, in the Council Chamber
of the Downey City Hall, Mayor/Chairman Kenneth J. Miller presiding.
PRESENT: Council Members/Commissioners:
Milton R. Mackaig
William L. Greene
Kenneth J. Miller Mayor/Chairman
ABSENT: Theodore H. Jackman Mayor Pro Tem/Vice-Chairman
(arrived at 4:35 p.m.)
Lyell W. Swearingen (arrived at 4:35 p.m.)
ALSO PRESENT: Charles W. Thompson, City Manager
Ervin Spindel, Director of Community Development
Ronald W. Leege, Director of Finance
Howard F. Stup, Building Official
Tom Tincher, Housing & Redevelopment Coordinator
Franklin DeGroot, Principal Planner
John H. Saunders, Personnel Officer
Robert L. Shand, City Clerk -Treasurer
Councilman. Greene requested another Council Member serve as the Downey delegate
to SCAG at the meeting in Buena Park on October 3 and 4, as he will be unable to
attend.
Councilmen. Jackman and Swearingen arrived at the meeting at 4:35 p.m.
Councilman. Swearingen will attend the SCAG meeting in place of Councilman
Greene.
Mayor Miller announced the purpose of the meeting is for a study session on
the Reinvestment Budget.
Mr. Tincher proceeded to highlight the Redevelopment Budget. He said a re-
quest would be made to adjourn to another work session in the future to consider
adoption of the Budget. He said the Budget consists of three categories:
(1) Neighborhood Enhancement Program; (2) Redevelopment Work Program Budget; and
(3) Housing Opportunities Program. Plans include consideration for the Downtown
Firestone Corridor and the I-105 Freeway Corridor. Mr. Tincher said particular
emphasis is being placed on the maintenance and conformance of the Sign Ordinance
as it will relate to the Firestone Corridor. The outline indicates the need for
an additional ter feet of right-of-way on both sides of Firestone Boulevard.
Inflation is being considered in the new Budget.
Mr. Thompson then explained the breakdown of general administration and con-
tingency costs, including salary details. He also cited Section 8 - Housing
Assistance Program, wherein displaced home dwellers may be relocated as the outcome
of the Redevelopment project. The General Services and Financial Management is for
General Project Management and Fiscal Management to pay the City for financial
administration of the program.
Councilman Jackman inquired as to how long the HCD Fund program will continue
as far as being funded by the Federal Government.
Mr. Tincher replied the program will include the current fiscal year plus two
more years. If the program was to be discontinued the Community Neighborhood and
Enhancement Program would be eliminated. (Final fiscal year would be 1981-82).
Councilman Greene commented on code enforcement. during the program.
Mr. Spindel reported one inspector has been placed into service and another
inspector will be placed into service on October 1st.
Councilman. Jackman reported a house on Downey Avenue south of Imperial Highway
on the east side of the street has a large sign across the entire front.
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Mr. Spindel said he will dispatch an inspector to the location.
Councilman Greene said code enforcement seems to be a continuing question
among the citizens, especially regarding automobiles parked for indefinite periods
in front yards.
Mr. Tincher said the Budget has the ability to finance a third position for
an inspector. He then explained the "targeted" enhancement program, wherein
specific homes could be identified that are in need of some assistance. Also, a
Capital Improvement program approved by Council would be implemented, in that
specific blocks would be identified for beginning the program, whereby property
owners would be contacted to see if they desired to participate in the project.
A new Housing Rehabilitation Specialist has been hired to replace Juan Arroyo.
Citizen participation is a continuation of the community outreach effort in
conjunction with the Chamber of Commerce Reinvestment Committee.
Page 18 of the Budget includes $500,000 that will be reflected in the Rede-
velopment Budget as assisting in the relocation of residents.
Mr. Thompson reported on the neighborhood individual plans for each of the
Subareas, which included information regarding requirements to restore areas to
stabilized conditions.
Councilman Jackman inquired regarding the $15,000 allocation for Golden Park.
Mr. Tincher explained the Golden Park area residents have a need for an
expanded community room. The $15,000 would suffice for necessary design and archi-
tectural work.. The construction phase would not occur until the next fiscal year.
$129,000 has been reappropriated from last year's funding for financial
improvements at Apollo Park.
Councilman Jackman would like to see more money allocated to Golden Park prior
to spending more on Apollo Park.
Mr. Thompson said the Apollo Park project is not new.
Mr. Tincher mentioned the contracts for the job were let during the last
fiscal year.
Councilman Jackman would like to expedite the Golden Park Community Center
construction.
Councilman Mackaig agrees that Golden Park should have top priority for
improvement.
The Council instructed the City Manager to give Golden Park top priority for
improvement.
Mr. Tincher proceeded to explain the Redevelopment Work Program Budget. The
document consists of two major components. Section One is a detailed analysis of
the preliminary financial feasibility of the various projects.
Councilman Jackman is concerned about the Devenir duplex project.
Mr. Tincher reported the owner has not vet followed through on the agreement
to raze the dwelling. It is suggested to proceed with litigation (default on
contract) and seek to have the property demolished. The owners have had difficulty
in financing. A developer is negotiating with the owner to acquire the parcel.
The Council directed Ms. Tincher to proceed with satisfactory negotiations to
enable the removal of the Devenir dwelling and render the property clear for
development. So ordered by the Mayor.
Mr. Tincher proceeded to review the plans for the Subareas. Subarea A south
of the N1j-5 Auto Parts store is recommended for residential purposes as compared
to commercial.
Councilman Swearingen prefers to consider the property in an objective manner,
so as to go either way with commercial or residential development.
Mr. Thompson recommended that Mr. Tincher "keep the door open both ways"
regarding development of the Subarea A project.
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Councilman Mackaig requested an update on all Owner Participation Agreements
negotiated by the Commission.
Mr. Tincher said the Mingura plans are being readied for Building & Safety
Division. Mr. Mingura should be ready to break ground "right away." He reported
on plans to contact the Diller architects during the week of October 1st to review
plans for the preliminary layout for both the medical office building and the
board and care facility. The Cardono status is contained in a memo already sub-
mitted to the City Council.
The Vincent OPA status was reported earlier in the meeting.
Councilman Jackman inquired if the Diller OPA is still within the time frame
limits.
Mr. Tincher replied Mr. Diller is within about a week and a half of the
September deadline for presenting preliminary plans. Mr. Diller's main concern
is the problem of acquiring the Blocker property. Mr. Tincher hopes to have the
plans within the next two weeks for the Commission to review.
Mr. Tincher reported on Subarea B, Mr. Santangelo's commercial center. An
OPA is anticipated to be drafted within the next few weeks for Council
consideration.
Discussion on the Nance Street project reflected that Leslie Graves has con-
tacted the three owner -occupants of property that would require negotiations. He
has an option on the property in the center of Phase One. Meetings are scheduled
with the other property owners this week. Thirty days remain of the 90-day time
frame for feasibility studies. Phase Two is still under negotiation. Phase Three
appears to involve over one-half of the cost as compared to the other two phases.
Phase Three involves other elements not present in the first two phases: Owner of
Phase Three displays no interest in selling; there is a six -unit, relatively new
building on the property; and finally, there is a property owner of the corner lot
at Nance and Pangborn, who plans to develop a sir. -unit apartment building. Mr.
Tincher recommended Phase Three be reconsidered and the existing apartment building
remain, and that the City move forward with an intervention agreement with Mr.
Karger and Mr. Evola to allow them to develop their apartment on the corner of
Nance and Pangborn.
Mr. Tincher stated Projects B-7 and B-8 will represent, perhaps, the largest
project the City is likely to face in terms of area and overall development. Two
developers are interested in the site. A minimum guarantee of $17 million would
have to exist in new development to be self-supporting.
Subarea C could support a "professional condominium" project consisting of
small living quarters for business persons residing outside of Downey. The
intensity of the development would be subject to whether or not SB-99 financing
would be available, whereby the Commission has the ability to issue mortgage
revenue bonds to provide a developer tax-exempt mortgages.
Mr. Mike Wagner of Municipal Services, Inc., proceeded to explain the details
of SB-99 as it relates to the Reinvestment Budget. SB-99 is a method, whereby an
agency may issue tax-exempt bonds in the 8i to 9§ percent range to buyers. (The
money does not go directly to the developers but goes to the buyers.) Commissions
may borrow money at 7 percent and loan it out at 811 percent and take advantage of
the arbitrage margin. In order to take advantage of the SB-99 program it is urged
that the Commission adopt a resolution to implement a grandfather clause indicating
intentions to possibly use this type of financing in existing project areas or
future project areas.
RESOLUTION NO. 21
A RESOLUTION AUTHORIZING THE ISSUANCE OF .CITY OF DOWNEY
COMMUNITY DEVELOPMENT COMMISSION, RESIDENTIAL MORTGAGE
REVENUE BONDS, FOR THE PURPOSE OF ACQUIRING MORTGAGES
ORIGINATED WITH RESPECT TO THE HEREIN DESCRIBED PROJECTS
The Resolution was read by title only. It was moved by Commissioner Mackaig
and seconded by Commissioner Greene to waive further reading.
It was moved by Commissioner Greene, seconded by Commissioner Swearingen, and
Passed by unanimous vote to adopt Resolution No. 21.
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e
Mr. Tincher referred back to Page 52 of the Dolan -Iowa Condominium Project
and said attempts are being made to contact owners of the property on the site
regarding purchase of the land to the north and east of the project area. Parking
needs of the Brookshire Medical Office Building could be met by this facility.
Mr. Tincher then asked that the Commission adjourn to another appropriate time
for actual and formal consideration of the work program and budgets and any direc-
tion the Commission desires to give to staff *in terms of the nature of the projects.
(Set for 5:00 p.m., Tuesday, October 16, 1979.)
Mr. Thompson referred to Page 6 of the last section, Housing Opportunities
Program, and explained the existing sites identified for the HCD Program. There is
no suggested planning on the I-105 element. There are sites indicated as possi-
bilities to serve for residential purposes including mobile homes.
Councilman Jackman does not think other types of low-cost housing will enhance
the present residential situation in the I-105 area. (High density is an existing
problem.)
Mr. Tincher said the final section will include consideration for replacement
housing programs and plans for each of the projects that will affect low and
moderate income housing.
At 6:08 p.m., the meeting was adjourned to 7:30 p.m
the Water Board.
Robert L. Shand, Citv Cleric -Treasurer
for a joint meeting with
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