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HomeMy WebLinkAbout11/22/1997 Minutes - Town Hall MeetingCITE! OF DIAMOND BAR AND DIAMOND BAR REDEVELOPMENT AGENCY TOWN HALL MEETING NOVEMBER 22, 1997 CALL TO ORDER: Mayor Huff called the meeting to order at 9:22 a.m. in the Castle Rock Springs Elementary School Multi -Purpose Room, 2975 Castle Rock Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Agency Member Ansari. City Council Roll Call: Council Members Ansari, Harmony, Mayor Pro Tem Herrera and Mayor Huff. Council Member Werner was absent. Agency Roll Call: Agency Members Ansari, Harmony, Herrera, and Vice Chairman Huff. Council Member Werner was absent. Also present were: Terrence L. Belanger, City Manager/Agency Executive Director; James DeStefano, Deputy City Manager; Frank Usher, Deputy City Manager and Lynda Burgess, City Clerk/Agency Secretary. ;i 2. WELCOME AND INTRODUCTION. Mayor Huff 3. OVERVIEW OF REDEVELOPMENT. Council and Agency Members agreed to dispense with the overview and concentrate on questions from the audience. 4. QUESTIONS AND COMMENTS CONCERNING REDEVELOPMENT AND THE REVITALIZATION AREA PLAN. Roger Meyer asked why, when the City Council voted to exclude it, eminent domain is still contained within the redevelopment document. CM/ED/Belanger responded that when Council adopted the current Redevelopment Plan, it adopted a resolution specifying that eminent domain would not be utilized in implementing the Redevelopment Project Area Plan in lieu of entering into a lengthy process to revise the Plan, The policy of the current Council is to not use eminent domain to implement the Plan. CIAMIHarmony said he was absent from the meeting in which Council j removed eminent domain authority but that he understood that, by a majority 1; vote of the City Council, the power of eminent domain can be immediately restored. NOVEMBER 22, 1997 PAGE 2 TOWN HALL MEETING CM/ED/Belanger explained that the intent of the resolution eliminating eminent domain authority is to provide that any future Council must go through the lengthy process of revising the Redevelopment Plan in order to restore the power of eminent domain. Responding to CIAMIHarmony, M/Huff stated the City Council currently has eminent domain powers. If the Redevelopment Agency chose to reinstate eminent domain, only business properties and two non -conforming residential properties within the Project Area would be effected. CM/ED/Belanger explained that Redevelopment Law allows a redevelopment agency the use of the power of eminent domain only for the first 12 years of the existence of a project area plan. It is likely that Redevelopment agencies in general will experience problems requiring the use of eminent domain with respect to residential properties and not with commercial and industrial properties. Commercial and industrial property and businesses owners tend to work more cooperatively with redevelopment agencies. MPTIAM/Herrera reiterated her position that she did not want eminent domain included in the redevelopment plan. Mr. Meyer asked if the City will have to create roadways outside the project area to accommodate additional vehicular traffic contemplated by the attraction of additional businesses to the community. CM/ED/Belanger explained that the plan contemplates commercial and industrial rehabilitation and business expansion and retention programs. The current roadways were designed to handle commercial center traffic at their maximum anticipated occupancy. Mr. Meyer pointed out that, with the addition of the movie theater, the Country Hills Towne Center has experienced increased residential cut - through traffic. He asked if the City will experience such problems as a result of adding businesses to other commercial centers. CM/ED/Belanger stated that the Country Hills Towne Center is affected by traffic from outside the area which in turn affects Fountain Springs Rd. The addition of businesses to the Center may or may not affect regional traffic. The redevelopment plan evaluation process will study the impacts of additional retail providers. Mr. Meyer asked if, through redevelopment, the City is becoming a lending agency. CM/ED/Belanger responded that, in part, the City will become a lending NOVEMBER 22, 1997 PAGE 3 TOWN HALL MEETING agency. Redevelopment resources are created from property taxes paid by property owners within the project area. These resources will be reinvested in those same properties. MPT/AM/Herrera stated that the objective of the redevelopment agency is to attract additional business to provide opportunities for residents to shop in the community. C/AM/Ansari stated that, for 4 years, the City has tried to attract businesses to D.B. When Council Members and staff attempt to market the City, one of the questions that many businesses ask is if the City has a redevelopment agency. D.B. has not been competitive with surrounding communities that have redevelopment agencies. She asked citizens to remember that only 10% of the City is included in the redevelopment plan. Mr. Meyer asked why the Gateway Corporate Center had not been filled with office buildings as originally contemplated. CM/ED/Belanger explained that Gateway Corporate Center construction was commenced at the height of the real estate market and completed at the time the real estate market began its downward plunge. The Center is attempting to adjust to the market that is causing businesses to move more slowly with respect to relocating into the City. He cited the fact that while the South Coast Air Quality Management District is a fine building, it is tax exempt and does not contribute to the City. As a result of the lack of activity, under the law, the Center is deemed to be blighted. C/AM/Harmony stated that Zelman chose to not sell their Gateway Corporate Center property until property values increased. He said the Gateway Corporate Center does not meet the legal definition of blight, M/VC/Huff stated that Mr. Harmony's reference to $300,000,000 of "your" dollars is a misrepresentation. Those are tax dollars paid by businesses currently going outside of the City. By bringing those tax dollars back into the community through redevelopment, we can reinvest in the community. Redevelopment would allow D.B. to spend its own money and not pass it through to the County for disbursement to other cities and agencies. CM/ED/Belanger read the definition of economic blight from the Code in response to C/AM/Harmony's assertion that the Gateway Corporate Center is not blighted. Further, he stated that he had never distributed a copy of the lawsuit to City Council Members. C/AM/Harmony said he received a copy of the lawsuit. Mr. Meyer asked how the City recovers monies invested in the NOVEMBER 22, 1997 PAGE 4 TOWN HALL MEETING redevelopment project area. CM/ED/Belanger responded that if project area dollars are loaned to a business within the project area, the business would be required to repay that loan in the same manner in which a party would be required to repay a bank loan. Mr. Meyer asked if the Redevelopment Agency would use special interest rates to attract business. CM/ED/Belanger responded that redevelopment agencies seek to make it more attractive for commercial and industrial business owners to engage in rehabilitation activities. The primary goal of this project is to rehabilitate and retain existing businesses. Therefore, to accomplish these goals, loans may be granted at an interest rate that is below the current market rate. Mr. Meyer said that several people are afraid that the redevelopment agency is a "giveaway" program. CM/ED/Belanger stated that, in cases where incentives are given to attract business, the evaluation process determines whether that business will return a greater amount of tax dollar revenue to the City than the community has invested in the attraction of the business. C/AM/Ansari left the meeting at 10:12 a.m. Art O'Daly said that Mr. Harmony is putting forth a great deal of misinformation. He reminded the participants that a Vice President of Zelman Development stated that if D.B. had had a redevelopment agency, Avery Dennison would have remained in the City. C/AM/Harmony reiterated that his investigation revealed that Brea did not invest one dollar toward attracting Avery Dennison. CM/ED/Belanger reiterated that all decisions related to investment issues, loans, etc. are made by the redevelopment agency board of directors at public hearings. He explained how the Brea Redevelopment Agency wrote down improvements which rendered the property more attractive for Avery Dennison's relocation. In response to C/AM/Harmony's statement, he stated that D.B. donates an extra $1,000,000 per year for fire protection. D.B. also subsidizes the County Library. MPT/AM/Herrera stated that the City is in the process of formulating a specific redevelopment plan. Contrary to Mr. Harmony's assertion, school districts will benefit from redevelopment. For instance, the redevelopment agency could supplement matching funds for construction of Pantera School. NOVEMBER 22, 1997 PAGE 5 TOWN HALL MEETING D.B. can benefit from mistakes made by other city's redevelopment agencies. MNC/Huff reminded residents that Diamond Ranch High School is a direct result of redevelopment agency funding. Mr. O'Daly stated that the Chamber of Commerce rejected Mr. Harmony's offer to speak to the Chamber on redevelopment because he continues to distribute misinformation. He asked why the City doesn't contract to lower its fire protection costs. CM/ED/Belanger responded that D.B. is part of the consolidated fire district and as a member of the district, there is no process to negotiate a contract. Mr. Meyer asked why Council Members and Agency Board Members are the same people, MIVCIHuff stated that City Council Members are elected and therefore, directly accountable to the people. The current arrangement is more economically feasible with respect to compensation and time involved. CM/ED/Belanger stated that very few cities have redevelopment agency boards separate from the City Council which allows for a much higher level of cooperation between the business property owners and decision makers. The benefit is that, in the event the voters do not approve of the decision maker, they can be recalled or not re-elected as a Council Member and simultaneously be removed as a redevelopment agency member. Mr. Meyer suggested that a City of Industry street addition would result in lack of support to local businesses. MIVCIHuff responded that the City of Industry is not in D.B.'s sphere of influence. CM/ED/Belanger explained that D.B. will negotiate with the City of Industry to impose "impact fees" because of development which will have an impact on the City of D.B. The same type of negotiations are taking place with the City of Chino Hills for development of property within their community which will have an impact on D.B. Mr. Meyer expressed concern that, in the event a Tonner Canyon bypass road is built, D.B. will lose traffic which will influence businesses not to locate in the City. He asked what the City is looking for. MNCIHuff responded that D.B. is looking for less traffic. He reiterated that there is sufficient traffic within the City to support existing businesses. While NOVEMBER 22, 1997 PAGE 6 TOWN HALL MEETING some stores are seeking high traffic counts, if the nature of the City is to reduce traffic, those businesses will not locate in this City. This City Council's primary concern is to attract the types of businesses that the residents will support. Ron Clark asked if the Redevelopment Agency has the power to overturn the City's adopted General Plan. MIVC/Huff responded that the Redevelopment Plan does not change land use. The adopted General Plan refers to the use of redevelopment funds as a mechanism for implementation. CM/ED/Belanger explained that a General Plan is the foundational document of any community. The Redevelopment Area Plan is a secondary document and must be in conformance with the General Plan. CIAMIHarmony stated that the General Plan can be amended 4 times a year. He mentioned the current Brea Canyon project as being allowed by the City Council under the City's Hillside Ordinance. DCM/DeStefano stated that, with respect to the development that is occurring on Brea Canyon Road, it is very important to understand that the developer processed the project beginning with the City's Incorporation in 1989. The developer had pre -established rights as a result of a provision in the State Subdivision Map Act that allows for a Vested Subdivision Map. The Vested Subdivision Map allows the developer to proceed under the rules and regulations at the time the application was approved for process. Therefore, that developer's application preceded the adoption of the City's Hillside Management Ordinance. If the project was processed today, it would look dramatically different because it would be following the City's adopted General Plan and provisions within the Hillside Management Ordinance. CIAMIHarmony said Council made exceptions to the Hillside Management Ordinance in approving the project. DCMIDeStefano stated there were no exceptions to the Hillside Ordinance because the Hillside Ordinance that was adopted in 1991 was not required to be complied with by this developer's 1989 Vesting. A Conditional Use Permit was required as a part of the overall development. Mr. Clark asked if there are significant resources in the early years of the Redevelopment Agency to warrant millions of dollars of bonding monies. CM/ED/Belanger responded that the answer to Mr. Clark's question is "No". Based on the consultant's projections shown in Section E of the NOVEMBER 22, 1997 PAGE 7 TOWN HALL MEETING supplemental report, it is suggested that the maximum bonding capacity for this project area is about $48,000,000. It will take several years for the bonding companies to consider investing in the Agency. Mr. Clark asked if, as a result of the Agency's lack of cash flow in the early years, would the Agency then have more time to fine-tune its goals and objectives. CM/ED/Belanger responded that one of the requirements of the Plan is to develop the programs suggested within the plan such as commercial rehabilitation, business retention and attraction, parking improvements and public improvements. The second paragraph of the adopted Ordinance outlines an 18 month process for the creation of these pians. Mr. Meyer asked if the City will hire a professional agency to assist the City Council and Redevelopment Agency is determining what types of businesses should be relocated into the City or if the process will be completed by the City Council and staff. MIVC/Huff responded that the City hires professional consultants on an "as needed" basis. Council employed a consultant to assist the Redevelopment Agency in identifying the community's business needs. CM/ED/Belanger stated that consultants who have the appropriate expertise will be used to assist the Agency. 4. WRAP UP AND NEXT MEETING PLAN. MPT/AM/Herrera stated that, according to the professional expertise of City employed consultants, D. B.'s commercial and industrial areas suffer from economic and physical blight and a Redevelopment Agency should be considered as a funding mechanism to cure these conditions. She reiterated that the funding for the Redevelopment Agency will result from property taxes paid by the commercial and industrial businesses located within the Project Area. She cautioned citizens not to rely on misinformation that is being circulated within the community. CIAM/Harmony spoke about what he views as the downside of redevelopment and "boondoggle" projects contained within the Agency documents. M/VC/Huff said there is no place in D.B. for "big box" shopping centers. School districts endorse redevelopment. He thanked the citizens for expressing their vote of confidence in the recent City Council election. He believed the citizens will be favorably impressed with the City's direction to reduce traffic impacts and entice appropriate businesses to the community through redevelopment efforts. He thanked the citizens for their NOVEMBER 22, 1997 PAGE 8 TOWN HALL MEETING participation. 5. ADJOURNMENT: There being no further business to conduct, Mayor and Redevelopment Agency Vice Chairman Huff adjourned the Town Hall meeting at 11:32 a.m. LYNDA BURGESS, City Clerk ATTEST: Re , velop nt Agency Vice Chairman