HomeMy WebLinkAboutMinutes - 11-04-03 - Regular MeetingMINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
ADJOURNED REGULAR MEETING
NOVEMBER 4, 2003
TABLE OF MINUTE ACTIONS
SUBJECT ACTION PAGE NO.
Recess to Closed Session
Approval of Purchase & Sale Agreement and Ground Lease
with Industrial Realty Group
Adopted
Reso. # 6713;
Introduced
Ordinance
1
Agreements to purchase right-of-way easements for
Lakewood Boulevard Improvement Project Approved 3
4
4
Oral Communications
Adjournment to 6:30 p.m., November 12, 2003
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MINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
ADJOURNED REGULAR MEETING
NOVEMBER 4, 2003
The City Council of the City of Downey held an Adjourned Regular Meeting at 6:35 p.m.,
November 4, 2003, in the Council Chamber of the Downey City Hall, Mayor Rick Trejo presiding.
PRESENT :Council Members:
Rick Trejo
Kirk O. Cartozian
Anne M. Bayer
Keith McCarthy
Meredith H. Perkins
Mayor
Mayor Pro Tempore
ALSO PRESENT:Gerald M. Caton, City Manager
Charles Vose, City Attorney
Kathleen L. Midstokke, City Clerk
Lee Powell, Assistant City Manger
James Makshanoff, Assistant to the City Manager
Desi Alvarez, Director of Public Works
Darrell George, Director of Community & Economic Development
Vanessa Rojas, Special Project Coordinator
RECESS TO CLOSED SESSION
Mayor Trejo announced the City Council is recessing to Closed Session (6:35 p.m.) to
discuss matters under the authority of the following sections of the California Government Code:
1.SECTION 54956.8 – Conference with real property negotiators Gerald Caton and
Darrell George re: property described as: Parcels 1 – 6 of the Downey NASA site
generally bounded by Stewart & Gray Road, Imperial Highway and Lakewood
Boulevard; Negotiating parties: Downey Landing LLC, Industrial Realty Group LLC,
Kaiser Permanente; Under negotiations: price and terms of payment.
RECONVENE
The meeting reconvened in open session at 7:53 p.m., with all Council Members present.
There were no Closed Session actions to report.
2.APPROVAL OF PURCHASE AND SALE AGREEMENT AND GROUND LEASE
WITH INDUSTRIAL REALTY GROUP.
City Clerk Midstokke noted that there is supplemental material dated and distributed
November 3, 2003; and additional supplemental material dated and distributed November 4, 2003 .
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A staff report was presented by Community & Economic Development Director George who
explained that staff was presenting two agreements tonight: a Resolution for a real property Purchase
and Sale Agreement between the City of Downey and Industrial Realty Group, LLC for acquisition of
an approximately fifty-eight (58) acre portion of the NASA Industrial Plant site and an Ordinance
approving a Ground Lease for fifty-five (55) years between the City of Downey and Industrial Realty
Group, LLC for lease of an approximately twenty (20) acre portion of the NASA Industrial Plant site;
both for the purposes of the development of a film studio production facility. These documents will
provide for a $12.7 Million purchase and an annual lease revenue amount of $445,000 for the
development of Downey Studios, a studio production facility and other shop related businesses on a
seventy-eight (78) acre portion of the former NASA site. The developer will be paying 83 Million for
off-site traffic mitigation. The City will receive one percent (1%) of all gross film rental receipts.
The developer will be constructing the future 40,000 square foot Learning Center to be leased by the
City. This development should create approximately 1,500 full and part-time jobs.
Stuart Lichter, Industrial Realty Group, LLC, expressed that he is happy to be here in the City
of Downey and part of this development. He is totally committed to creating a lst rate studio and
development that the City of Downey can be proud of. He complimented the City staff he has
worked with in this process.
Council Member Perkins questioned Mr. Lichter about the list of 53 changes to the documents
that were submitted tonight and whether he approved of them. Mr. Lichter responded he does agree.
Council Member McCarthy expressed that he was delighted to have IRG as the developer,
noting that several years ago when proposals were solicited for the entire site that IRG was among the
leading bidders at that time. He further stated that John Gately Downey would have been proud to
have his name attached to this development.
In response to questions by Council Member McCarthy, Mr. Lichter indicated that when the
site is fully developed, there should be about 8 or 9 film shooting spaces available. It will be possible
to have 4 to 6 things going on at one time. There is one large sound stage in building 290 and
building 1 will be converted into 7 sound stages. The Downey Studios will be known for the big
spectacle movies due to the large spaces available.
Mayor Pro Tempore Cartozian noted that IRG is preeminent on the West Coast for
rehabilitating old industrial sites and commended their commitment to the City.
Council Member Perkins requested that the last sentence of Section 5.3 of the Purchase and
Sale Agreement, entitled “Failure of a Condition Precedent”, page 9 of the corrections dated
November 4, 2003, be deleted, noting he feels that anything like this should come back to the City
Council as policy makers.
City Attorney Vose responded that there are two separate issues, one has to do with the
conditions to the closing; and another has to do with the time delays. One of the reasons for this
language as it relates to the conditions or requirements at the close of escrow is that it allows the City
Manager on ministerial things such as a title condition, or on a particular document, to waive or
modify that condition. He would suggest that this item be separated from the request by Council
Member Perkins as it relates to the time issue. He further indicated that in any transaction of this type
there are going to be these kinds of changes that will happen during the escrow period.
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City Manager Caton suggested that rather than substitute the City Council for the City
Manager, which would require a Special Meeting of the Council to be called, that the Mayor be added
so that someone has the authority to make these relatively minor changes.
Mayor Trejo expressed that he would like to see the wording stay the same and that the City
Manager has the expertise in dealing with these types of issues.
Mayor Pro Tempore Cartozian agreed that it is probably best as worded, consistent with the
agreement with Kaiser for the medical facilities development.
Council Member McCarthy suggested that the wording of the last sentence of Section 5.3 of
the Purchase and Sale Agreement be changed to: “... the City Manager of the City of Downey,
upon consultation with the Mayor is hereby authorized to approve extensions ...” and moved for
an amendment. The maker of the motion and the second agreed to the amendment.
RESOLUTION NO. 6713
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
APPROVING A REAL PROPERTY PURCHASE AND SALE AGREEMENT
BETWEEN THE CITY OF DOWNEY AND INDUSTRIAL REALTY GROUP, LLC.
City Clerk Midstokke read the title of the Resolution. It was moved by Mayor Pro Tempore
Cartozian, seconded by Council Member Bayer and unanimously carried to waive further reading
and adopt as amended.
ORDINANCE
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY
APPROVING A GROUND LEASE BETWEEN THE CITY OF DOWNEY AND
INDUSTRIAL REALTY GROUP, LLC.
City Clerk Midstokke read the title of the Ordinance. It was moved by Council Member
Perkins, seconded by Council Member McCarthy and unanimously carried to waive further reading
and introduce.
3.AGREEMENTS TO PURCHASE RIGHT-OF-WAY EASEMENTS FOR LAKEWOOD
BOULEVARD IMPROVEMENT PROJECT FOR PROPERTIES LOCATED AT
11801, 11812, 12520 AND 12460 LAKEWOOD BOULEVARD.
A staff report was presented by Public Works Director Alvarez explaining that this item
brings forth four agreements to purchase property along Lakewood Boulevard that would facilitate the
Lakewood Boulevard Improvement Project. The agreements have been negotiated with property
owners to acquire right-of-way that ranges from six hundred square feet to as much as twenty six
hundred square feet. In all cases the purchase price is equivalent to the appraised value.
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014611
Council Member McCarthy noted that he and Council Member Bayer have been working as a
Council Subcommittee with Director Alvarez on this project which complements the improvements
at the NASA site and goes further south so that traffic from other cities or the 1-105 Freeway have a
better access to Lakewood Boulevard. This is the first of a number of transactions that will be
undertaken for this project.
It was moved by Council Member Perkins, seconded by Council Member Perkins and
unanimously carried to authorize the Mayor to execute four agreements for purchasing right-of-
way easements that are necessary for the Lakewood Boulevard Improvement Project:
(1) An agreement with P.1. Properties, to obtain a permanent roadway easement
from the property located at 11801 Lakewood Boulevard (Downey Apt.), for an amount not to
exceed $25,228.96;
(2) An agreement with Jacob Wright, to obtain a permanent roadway easement from
the property located at 11812 Lakewood Boulevard, for an amount not to exceed $22,440.00;
(3) An agreement with Daily Brothers Real Estate, Inc. to obtain a permanent
roadway easement from the property located at 12520 Lakewood Boulevard (Embers Apt.) for
an amount not to exceed $88,125.00;
(4) An agreement with Daily Brothers Real Estate, Inc. to obtain a permanent
roadway easement from the property located at 12460 Lakewood Boulevard (Lakewood Apt.)
for an amount not to exceed $33,975.00.
ORAL COMMUNICATIONS
Lennie Whittington, resident of Downey indicated he is a major stockholder with Coca Cola
and he thinks that they will be donating property to the City for the Lakewood Boulevard Project.
Council Member Perkins thanked Mr. Lichter for being the City’s partner for the development
of the Downey Studios.
Mayor Pro Tempore Cartozian wished his Grandmother Florence a Happy 88th Birthday.
Council Member McCarthy noted that local elections were held today for Downey Unified
School District and Cerritos Community College District and commended the candidates for running
for public office.
ADJOURNMENT: 8:38 p.m.
The meeting adjourned to 6:30 p.m., Wednesday, November 12, 2003 in the Council
Chamber of Downey City Hall.
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