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HomeMy WebLinkAboutMinutes-07-20-87-Adjourned Regular Meeting CDC8291 MINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING JULY 20, 1987 The City Council/Community Development Commission of the City of Downey held an Adjourned Regular Meeting at 7:30 a.m., July 20, 1987, in the Council Chamber of the Downey City Hall, Mayor/Chairman Diane P. Boggs presiding. PRESENT: Council Members: Diane P. Boggs Mayor/Chairman Robert G. Cormack Mayor Pro Tem/Vice-Chairman Randall R. Barb Roy L. Paul James S. Santangelo ALSO PRESENT: Don Davis, City Manager Jenny Young, City Clerk -Treasurer Lee Powell, Director of Administrative Services Dan Cassidy, Labor Negotiator (during closed session) Mark Huebsch, Community Development Counsel Brice Russell, GRC Redevelopment Consultant Jake Wager, Redevelopment Manager The Flag Salute was led by Council/Commission Member Cormack. The Community Development Commission recessed during the following Council actions: Mr. Jake Wager, Redevelopment Manager, read the following statement into the record: In the interval between the introduction of the Ordinance adopting Amendment No. 4 on July 6, 1987, and the introduction of the Woodruff Industrial Project on July 8, 1987, a number of scriveners errors have been discovered. To a great extent the errors related to items that had been subject to discussion with various community groups right up to the introduction of the Ordinances at each respective Public Hearing. This morning we have available for you a corrected Ordinance for Woodruff Industrial Project and a complete Redevelopmemt Plan for Amendment No. 4, reflecting the modifications agreed to as well as reflecting the recommendation for approval made by staff on July 6, 1987 and again on July 8, 1987. The revisions and additions have been reviewed by Special Counsel and are found to be consistent with the clearly stated intent of the City Council in regards to both Amendment No. 4 and the Woodruff Industrial Project. In light of the ongoing negotiations with Los Angeles County, staff had directed its Consultant to prepare an analysis of financial feasibility for Amendment No. 4 and the Woodruff Industrial Project. Since the final points have not been agreed to, and hence no agreement has been executed, staff's comments will be general in nature, but will help provide the Council with a clearer picture in regards to the financial feasibility of the Redevelopment Projects being proposed. The analysis provided by the Consultant, which I will make reference to, is based on the business points that staff has discussed with the representatives of the Chief Administrative Office of Los Angeles County. The first question addressed by Mr. Russell was the effect that an agreement would have on the overall tax increment revenue that would be received by the Community Development Commission. The subsequent question, logically, is what would the impact be on Project implementation and the achievement of the goals set forth in the Redevelopment Plan and the associated documents. As presently formulated the agreement with Los Angeles County would result in a diminution of Commission tax increment which would in fact be exaggerated by the payment of any interest. Nevertheless, the willingness of the County to provide funds in the early years, even when considering the payment of interest, greatly enhances early implementation efforts by increasing Commission's cash flow City Council/Community Dev. Minutes 7/20/87 (Adj.) -1- 821J2 above what would be available if a straight pass-thru to the County was negotiated. The deferral, when coupled with a flexible term of repayment, softens the impact of any loss of tax increment revenues and thus also reduces the impact on both projects. In conclusion, the agreement as proposed would reduce the fund availability to the Commission for its implementation activities. This reduction may cause one or a combination of the following conditions: (1 A lengthening of time it takes to complete the Project. 2) A greater dependency on alternative financing techniques. 3) A reduction in the overall activities of the Commission. Given, however, that the Commission will be able to service tax increment funds, substantial improvements to the Project Areas will be possible. Thus, conditions of blight would be eliminated or greatly reduced from current levels and the Project would be financially feasible based upon the community benefit which would result." ORDINANCE NO. 855 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING AND ADOPTING THE REDEVELOPMENT PLAN FOR THE WOODRUFF INDUSTRIAL PROJECT AS THE OFFICIAL REDEVELOPMENT PLAN FOR SAID PROJECT The Ordinance was read by title only, It was moved by Council Member Cormack, seconded by Council Member Barb, and carried 4-0 (Council Member Santangelo abstaining) to waive further reading and to adopt Ordinance No. 855. ORDINANCE NO. 856 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING AND ADOPTING THE REDEVELOPMENT PLAN FOR DOWNEY REDEVELOPMENT PROJECT AMENDMENT NO. 4 The Ordinance was read by title only. It was moved by Council Member Cormack, seconded by Council Member Barb, and carried 4-0 (Council Member Santangelo abstaining) to waive further reading and to adopt Ordinance No. 856. The Community Development Commission reconvened in joint session with the City Council. All Council/Commission Members present. A letter dated July 7, 1987 from Mr. Lennie Whittington, 8542 Manatee St., was entered into the record. The letter was received at the meeting of July 8, 1987 and designated in opposition to Project Area No. 4. Mayor/Chairman Boggs stated that the Council/Commission is recessing to closed session for the purpose of discussing employee negotiation matters, and pending litigation pursuant to the provisions of Section 54956.9 - Government Code, Subdivision (b). The meeting reconvened at 9:15 a.m. with Mayor/Chairman Boggs and Council/Commission Members Cormack and Paul present. It was noted that Council/Commission Members Barb and Santangelo were excused during closed session. ORAL COMMUNICATIONS: There were none. ADJOURNMENT: The meeting was adjourned at 9:17 a.m, to a Joint Adjourned Regular Meeting at 6:30 p.m. on July 28, 1987, in the Council Chamber of the Downey City Hall, to include closed session. rJeruyv i Cle - asurer/ Diane P. Boggs, Mayor"/`" S cr 6 o issi Chairman City Council/Community Dev. Minutes 7/20/87 (Adj.) -2-