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HomeMy WebLinkAboutMinutes-10-22-79-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING OCTOBER 22, 1979 The City Council/Community Development Commission held an adjourned regular meeting at 5:00 p.m., October 22, 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 Kenneth J. Miller Mayor/Chairman ABSENT: William L. Greene (arrived at 5:10 p.m.) ALSO PRESENT: Ervin Spindel, Acting City Manager Ronald W. Leege, Director of Finance Howard Stup, Building Official Thomas Tincher, Housing & Redevelopment Coordinator Robert L. Shand, City Clerk -Treasurer The City Council/Community Development Commission conducted a study session regarding the 1979-80 Reinvestment in Downey Work Program and Budget. Councilman Jackman inquired regarding expenses for last year. Mr. Tincher explained the sheet distributed to the Commission contained budgeted amounts and what the unencumbered balance was at the end of the fiscal year for,both the Redevelopment Project and the Neighborhood Enhancement Program He said he will report on this at a later date, possibly in November, because there is a change in the interest rates. Mr. Tincher indicated there is a question of whether the City would want to continue with six percent and have an additional writedown, or whether the City should increase its base interest rate Banks are currently asking approximately 14 percent for similar loans. Councilman Greene arrived at the meeting at 5:10 p.m. Mr. Tincher said on Page 11, $1,155,250 is the unencumbered balance as of the end of the fiscal year. He then reviewed a sheet reflecting HCD funds. The Council opted to defer reading of the title on the Resolution adopting the 1979-80 Work Program and Budget for the Community & Neighborhood Enhancement Project and Housing Opportunities Program because the subject of Housing Opportunities Program has not been discussed. Mr. Tincher proceeded to discuss the Redevelopment Budget, beginning with Page 3 on a project -by -project basis. Upon adoption of the Budget, staff will proceed to obtain commitments from property owners and developers. Referring to Subarea A, Comolette and Paramount, Mr. Tincher mentioned the owner is waiting for an architect to finalize the plans. On Project A-2, per the Commission's direction, the owners have been notified they are in default and have 30 days from receipt of notification to satisfy the default. On Page 3 of the Budget (map), Mr. Tincher said each site has the potential of being consolidated into one project, and in some, cases two projects or a phase project. This program could proceed upon adoption of the Budget. As to Page 10 (Paramount/Comolette Commercial Center), he indicated the developer is waiting for the architect to finalize the plans. The project will commence very soon. Referring to Project A-2, duplex on Devenir east of alley, Mr. Tincher men- tioned Mr. and Mrs. Vincent have been notified they are in default of the OPA. A contractor, Mr. Bill Stewart, is interested in the property and his financing agent is reviewing a proposal to build on the site.', A 30-day default notice was served on the Vincents last week. Councilman Mackaig feels immediate action should be taken against Vincent if nothing has taken place by the end of the 30-day default period. Council/Community Dev. Comm. Minutes 10/22/79 (adj.) -1- Speaking to Project A-3, development of commercial or residential (or duplexes) along the east side of Paramount Boulevard south of Puritan, Mr. Tincher stated Mr. Bill Stewart is interested in the property and has been in touch with a local lend- ing institution. He assumes he will hear from Mr. Stewart in the next two weeks. Councilman Swearingen asked if any possibility exists for a shopping center at the corner of Paramount and Gardendale, and the response was no redevelopment program is currently under way. Councilman Jackman asked how interested Mr. Stewart is in borrowing money to develop the property. Mr. Tincher replied he is not sure, other than Mr. Stewart has built several units in the neighborhood. Councilman Jackman voiced concern that many of the projects will be difficult to launch because of the climbing interest rates. Mr. Tincher agrees that programs will probably be slowed. However, he feels some of the projects are being implemented as long-range developments (two to three years away).. Project A-3 does have dilapidated buildings and vacant commercial units. The City could acquire this property with HCD Funds and demolish in prepara- tion for development. Mr. Tincher then discussed Project B-7, Page 42, and mentioned meetings are currently under way with Western Extruded and Downey Heat Treatment Expansion companies. Republic Development Company plans to submit a proposal. The regional and local transit routes will tie in with Firestone Boulevard, the Santa Ana Freeway, and will include the I-105 Freeway. Mr. Tincher said Project B-8, south of the railroad tracks, has not yet been analyzed to any extent. On Subarea C, Project C-1, Mr. Tincher mentioned Mr. Diller has proceeded with the architect phase of the project and that the project is two weeks beyond the time frame deadline. He said it is time for Mr. Diller to submit the preliminary drawings. Councilman Jackman inquired if Mr. Diller has his financial commitment. Mr. Tincher replied Mr. Diller's financial assistant has indicated Mr. Diller will have .his financing. Councilman Jackman would like a financial progress report on Mr. Diller prior to the next work session with him. Councilman Swearingen said it seems like there isn't anything being done at all,' that everything seems to be "preliminary work." Mr. Tincher indicated Project C-2, a professional -residential condominium project has been proposed by Goldrich, Y.est & Stern for 48 to 60 units at Dolan and Iowa Streets. They would be one bedroom units for use by office or profes- sional workers. Discussions have been under way for several months to acquire the property. Consideration is also being given to parking facilities. Discussion followed on various means of expediting the doctors into action on their portion of the project. Referring to Page 58 (several projects) Downey, Iowa, Dolan and Davis block - one story/two story professional office buildings, Mr. Tincher said the intent is to concentrate parking in one area less compatible for office use. Site No. 4 contains space for an office building. The project could be expanded to include one long unit facing Downey Avenue at that site (Downey Avenue between Davis and Iowa Streets). Mr. Joe Adragna, Jr., is investigating the possibility of senior citizen housing at the site. Mr. Spindel commented that the water well must remain on the site because it is the best producing well in the City. Also, the water yard storage area will have to be replaced. On Page 73, Subarea C -Texas Street concept for senior citizen housing project or condominium project. Mr. Tincher said this will involve the closing Council/Community Dev. Comm. Minutes 10/22/79 (adj.) -2- (vacation) of Dolan Street and acquisition of property which includes one owner - occupied resident located on the south side of Texas Street. The property to the east and on the north side of Texas Street could be developed as condos or senior citizen units. Mr. Tincher stated Project D-1, the prospect of office development on the north side of Second Street (opposite Cardono site), will include common parking. He will be meeting with Republic. Development to discuss a proposal, and he should be hearing from both Cardono and Republic before the end of next week. Mayor Miller inquired regarding Page 78, Bonded Indebtedness, $4.38 projected tax increment. Mr. Tincher explained the City will receive the increment because it is an indebtedness that will be retired, but the City cannot bond against it. Referring to Page 83, Mr. Tincher is now working with Mr. Ralph Grenade, the property owner, and the Republic Development Company. The plan calls for a four or five story building. Mr. Tincher said Project D-3 relates to D-4, Page 86. The concept calls for redevelopment of the entire two block area showing the closing of Second Street for parking purposes and the development of two mid -rise office buildings. The property owner at the corner of Downey and Dolan Streets has retained a broker and architect to prepare a preliminary analysis. Plans are also included for long- range parking to include surrounding facilities. Other long-range plans call for an extension of Third Street to Stonewood Shopping Center (through Downey High School). Page 94 includes a summary of the projects Discussion followed regarding development of tax increments to pay for financing of the various projects. Councilman Jackman commented the indicated financing program appears to be somewhat different than as outlined by the consultants in the preliminary stages. Mr. Tincher explained the "bottom line" will be the type and amount of development that will take place. Mr. Tincher said Subarea B and B-1, Page 22, should have Phase I marked out. The owner, Jim Santangelo, is attempting to put together a project. Mr. Tincher stated Project B-2 on Page 26 is owned by Simon David. Mr. David has plans for developing a commercial center at his location, as well as Project B-5. Mayor Miller asked if the vacation of Pangborn Avenue has been evaluated by the Fire Department. Mr. Tincher responded there has been some concern because of a long cul-de-sac situation that could possibly provide an access problem. .Consideration will have to be given to limited access from Firestone Boulevard before the project goes forward. Mr. Tincher explained Project B-3 is the condominium project with Leslie Graves Development Company. The City is nearing the end of the 90-day right -to - negotiate period. Leslie Graves was successful in obtaining an option to purchase the VanderHeyden property. Appraisals on two other pieces of property should be available this week (by October 26th). No activity has taken place for purchase of the property in Project B-2 from Mr. and Mrs. Bathurst. Mr. Tincher indicated that in Phase 3, no progress has been made in purchasing the property in the center of the area. Mr. Carter and Mr. Evola are considering construction of a six -unit apartment on the corner of Nance and Pangborn. Mr. Tincher suggests the City proceed entering into an agreement with Mr. Carter and Mr. Evola for the development of the site as planned and to retain the apartment building to the north. Leslie Graves has indicated he is still interested in developing the remainder of Phase 3. Mr. Spindel requested information regarding the apartment on Pangborn north of the corner that is to remain. He pointed out it would be impossible to vacate Pangborn because that is the only access. Council/Community Dev. Comm. Minutes 10/22/79 (adj.) -3- Mr. Tincher agreed and suggested possibly limited access (one way) could be constructed. Mr. Tincher then referred to Page 31, B-4 as the apartment building Mr. Evola and Mr. Carter are proposing to develop, noting the plan should be coming forward fairly soon. Mr. Spindel reported that a 600 foot water main in the Pangborn system would cost approximately $25,000, maybe less, depending on the length of the main and where the main would be tied into an existing nearby main. Continuing into B-6, Mr. Tincher referred to Page 39 and said decisions re- main to be made by the property owner. The area is designated for light industrial uses. The proximity to the railroad and existing light industries does not favor an office complex. Another approach with the property owners would be a phase development, wherein the easterly portion of the area would be developed now, and then develop the other land in the future through property trades. Mr. Tincher suggested the City proceed to negotiate with an interested buyer of the Harris property at the triangle of Stewart & Gray Road and the railroad tracks. A light industrial building is intended for the site. Also, proceed to negotiate with Mr. and Mrs. Dimmick and Mrs. Duncan, whereby their property could be sold or commitments made, whereby the development could come into existence. Mr. Tincher said that if, at this point in time, an agreement is unlikely, then soon enough for the potential developer to move ahead, the Commission should consider acquiring the triangle property. The City could then proceed to put together the entire site for development. Councilman Mackaig asked if the Commission wants to become involved in buying property. He questioned what the Commission would do should there be a change of thought by the interested developers. Mr. Tincher believes the property is compatible. Under the Redevelopment Plan, the Commission could proceed to acquire the one-half block. Councilman Greene inquired regarding the status of the dog kennel. Councilman Jackman replied there is a lease on the property, the owner is free to do as he wants, and the property is within the Redevelopment Area. Mr. Tincher said Plan D-7 includes the kennel property. Councilman Jackman said 'actual developments might not begin to materialize until interest rates come down, and his concern is how much money will be expended by the Commission while "we are marking time." Mr. Tincher responded that one approach with a developer could be to negotiate an agreement which would commit to a development, whereby the developer would front the money today to the Commission for acquisition and relocation. The development would then unfold over a period of time. Councilman Jackman feels it would be unfair to develop one small section of the Stewart & Gray triangle for a machine shop at this time and hold off on re- maining development to a later time. He suggests waiting on the machine shop until the other development is ready. The budget summary reflects the overall appropriations requested, including the cost associated with alternative two on the Jewelry Center building. Page 99 outlines the General Administration activity, including half of Mr. Tincher's salary, his secretary's salary, and one Redevelopment Project Planner. Page 100, Planning Project Management, reflects continuation of utilizing a consultant for general redevelopment purposes. Also includes money to allow for carrying out preliminary types of acquisition appraisals and relocation estimates. Page 104, A-3: $84,000 should be changed to $100,000. Provision for the Paramount water main improvement is eligible under the HCD Program. The water main is for fire service in Subarea A. Councilman Jackman questioned why an additional fire main would be needed after new improvements have been completed vs. no water main at present when it could serve as protection for the existing fire danger. Council/Community Dev. Comm. Minutes 10/22/79 (adj.) -4- XG455 Mr. Tincher said the water main will increase the loop capacity for the area to be developed. Councilman Jackman inquired regarding the Apollo Park project money. He asked where the money is reflected for Apollo, as well as Golden Park improvements. Mr. Tincher referred back to the Community Enhancement Budget, Page 19. $15,000 is carried for the assessment of the needs and preparation of plans for the expansion of the Golden Park Community Center. $100,000 is still planned for expenditures on Apollo Park. He explained this money was appropriated last year and contracts have been let. Discussion followed regarding original development plans for Apollo Park to cost $30,000. Councilman Jackman said to date, over $200,000 has been spent on the Apollo Park Neighborhood Center, and yet the Council is talking about spending another $130,000 or $140,000. More money is being spent on Apollo Park, whereas an urgent need exists for improvements in Golden Park. He would like to see some of this money spent at Golden Park. Also, Independence Park has been idle for a year. Mr. Spindel commented that Independence Park plans are now being processed. Councilman Greene suggested Mr. Neavill give the Council an update report on October 23rd. The report should include the status on Independence Park, Golden Park, and Apollo Park. Councilmen Mackaig and Swearingen requested to be excused from the meeting at 7:28 p.m. due to a previous commitment. Mr. Tincher explained the City has to have a response to HUD by November lst regarding the Budget Resolution and Entitlement Agreement. Mr. Tincher then reviewed the Housing Opportunities Program. The City must adopt a Housing Assistance Plan. The 1979-80 fund application has been approved. He has completed a document containing recommendations of the goals and objectives in regard to the program. Mr. Tincher requested the Commission approve this document. The Commission will not take action at this time. Mayor Miller asked what is the requirement for a referendum. Mr. Tincher said where 50 percent of the units of any project are devoted to low income housing, public referendum is required. There being no further business to conduct at this time, the Community Development Commission portion of the meeting was adjourned. The City Council portion of the meeting was adjourned to 6:30 p.m., October 23, 1979, in the Council Chamber of the Downey City Hall, for a joint meeting with the Sister City Committee. Robert Land, Ci Clerk -Treasurer enneth J. ler, Mayor o Council/Community Dev. Comm. Minutes 10/22/79 (adj.) -5-