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HomeMy WebLinkAbout09/24/1996 Minutes - Regular MeetingMINUTES OF THE CITY COUNCIL REGULAR MEETING OF THE CITY OF DIAMOND BAR SEPTEMBER 24, 1996 1. CALL TO ORDER: Mayor Ansari called the meeting to order at 7:06 p.m., in the SCAQMD Auditorium, 21865 E. Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Art O'Daly. ROLL CALL: Council Members Harmony, Herrera, Werner, Mayor Pro Tem Huff, Mayor Ansari. Also present were: Terrence L. Belanger, City Manager, Frank Usher, Assistant City Manager, Amanda Susskind, Assistant City Attorney; James DeStefano, Community Development Director, Bob Rose, Community Services Director and Tommye Nice, Deputy City Clerk. 9. NEW BUSINESS: 9.1 (A) RESOLUTION NO. 96-65: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AUTHORIZING THE DIAMOND BAR REDEVELOPMENT AGENCY TO DESIGNATE A REDEVELOPMENT SURVEY AREA FOR STUDY PURPOSES PURSUANT TO CALIFORNIA COMMUNITY REDEVELOPMENT LAW (HEALTH AND SAFETY CODE SECTION 33000, ET SEQ.) - Felice Acosta, Rosenow Spevacek Group, Inc. (R.S.G.), concluded her presentation on the blight assessment report and financial feasibility study relative to establishment of a redevelopment project area and initiation of a redevelopment process. In response to CM/Belanger, Ms. Acosta clarified the statement at the bottom of Exhibit B. (2): 'first increment received December of following year." Calif. Redevelopment Law states that if the plan is adopted by June, 1997, the project total of all assessed values in the project area will be based upon the 1996-1997 base year. The Redevelopment Agency would not receive any increment during the 1997-1998 fiscal year (July 1 through June 30). The Agency would begin receiving tax increment in December during fiscal 1998-1999 year.. In response to MPT/Huff, Ms. Acosta stated that the adoption process would take approximately 9 months. The Preliminary Plan should be adopted immediately to allow the taxing agencies to produce a base year report. The County has 60 days from notification to produce a base year report. The Redevelopment Agency cannot proceed without the base year report. The 9 -month schedule is realistic if the process continues in an orderly fashion. In response to C/Harmony's request for clarification of the Agency's goals and objectives, Ms. Acosta explained that, typically, the SEPTEMBER 24, 1996 PAGE 2 Agency's goals are to eliminate blight (physical and economic) and "create economic development within a community. The goals and objectives have not yet been stated because the agency has not embarked upon a plan adoption process. The study looks at blight assessment and financial feasibility from the standpoint of the conditions and related economics of the study area. Most of the City's physical blight identified was in the area of dilapidation, repair and maintenance and not severe physical blight. The study revealed a large amount of defective and substandard design (lack of parking and incompatible uses) in commercial areas. According to the law, these are conditions of physical blight. The study area suffered a sharp decline in assessed value from 1994- 1995 to 1995-1996 as compared to the City of L.A. There is a high prominence of vacancy among the D.B. commercial centers. The area's crime rate has increased over the past few years. Additionally, contributing factors such as traffic and circulation call out for remedies. C/Harmony asked why blight remedies cannot occur under the auspices of the City and the market forces knowing that infrastructure improvements are not necessarily acceptable projects for Redevelopment Agencies. Ms. Acosta responded that infrastructure projects are an acceptable use for Redevelopment Agency funds. Economic blight is one of the primary considerations in the D.B. study area. All surrounding communities have the powers of redevelopment and have been working to capture all of the available excess retail and other types of commercial uses. As a result, D.B. is at a very real disadvantage in addressing its issues without tools for creating private partnerships that are available to adjoining communities. C/Hanywy asked how the blighted areas relate to the interest of the health, safety and welfare of the community and to the state. Ms. Acosta responded that when a business community is in decline, it reverberates across the entire community. A question is whether economic blight or physical blight occurs first and how long a structure will be vacant because there is no-one to lease the facility before it becomes a nuisance and ultimately, a health and safety concern. D.B. does not have the type of physical blight seen in downtown L.A. However, there are considerations in this community that will lead to health and safety considerations. C/Harmony asked what kind of low-income housing will the City be _ required to provide if it forms a Redevelopment Agency. Ms. Acosta responded that financial compliance requires the City to set aside 20°x6 of its gross tax increment revenue into a fund for improving and producing affordable housing. With respect to inclusionary requirements, the law provides that 15% of all units created in the SEPTEMBER 24, 1996 PAGE 3 project area boundaries must be made affordable and available to low -and moderate -income households. C/Harmony asked how and where the City will use the power of Eminent Domain, tax increment and tax allocation bonds to alleviate slums and blight conditions in the economically depressed urban areas. Ms. Acosta responded that, assuming the City adopts a project area, the Agency will make those decisions as the project progresses. If the City includes tax increment as a financing tool in its Redevelopment plan, it will be utilized from the date the plan is effective in order to capture the incremental increase in revenue because the funds will be used to support the agency's activities. Use of the power of Eminent Domain is a Redevelopment Agency and City Council decision. Most, but not all, Redevelopment plans include the power of Eminent Domain. She indicated that, in her experience, she has seen the Eminent Domain used extremely sparingly and only after very careful evaluation. The use of Eminent Domain is the exception. Tax Allocation Bonds will be used at the discretion of the Redevelopment Agency. From a practical standpoint, Tax Allocation Bonds cannot be issued until the City is generating enough tax increment to support a Bond Issue that makes sense. The rule of thumb is that the City can issue a Bond that is 10 times the amount the City is receiving on an annual basis. C/Harmony asked how the City qualifies as predominately urbanized and low income when the median income is about $66,000 annually and does not experience prolonged disinvestment or out -migration of industries. Ms. Acosta responded that the law does not require -the community to be low income. The community experiences depreciated property values, high vacancy rates, and per capita retail sales (below all surrounding communities). The law does not require consideration of out -migration. C/Harmony asked if redevelopment means the community has to choose between the City's rural country living characteristic and transference into a more faceless urban community characteristic. Would redevelopment bring more taxes, transforming the community's commercial centers into high volume box centers? Ms. Acosta 'responded that the study area incorporates existing commercial property within the City. The proposed Redevelopment Plan would recommend that the land use plan for redevelopment would be the City's General Plan land use plan. If the City's General Plan is amended, the Redevelopment Plan would be amended. Implementation of the Redevelopment Plan with respect to land use and densities is a City decision and Planning Commission decision and not a Redevelopment Agency decision. With respect to turning the commercial centers into big box centers, retail commercial experiences cycles. The current trend is toward big box centers which SEPTEMBER 24, 1996 PAGE 4 tends to draw sales from the neighborhood centers. The City may have the opportunity to recycle its centers with some big box users. The nature of D.B.'s majority of centers does not lend itself to big box users. The Planning Commission, City Council and community will decide what they want to see in the community. It is likely the community wishes to proceed in the direction outlined in the recently adopted General Plan. She stated it is not the intent of redevelopment to change the City's character. C/Harmony asked if D.B. can pride itself on being an affluent upscale community and call itself a blighted community similar to other low income City communities. Ms. Acosta responded that in her opinion, D. B. is comparable to communities such as Rancho Palos Verdes and other upscale communities that have utilized redevelopment for specific purposes. She believed most people are aware that redevelopment has been utilized to create economic development within communities that are not typical downtown L.A. areas or other types of traditional Federal Urban Renewal projects. However, the standards are different. C/Harmony stated that, under AB 1290 enacted in 1994, a blighted area is one that is predominately urbanized and the combination of -- blight is so prevalent and substantial that it causes substantial reduction in the proper use of an area and is a serious burden on the community which cannot reduce itself without redevelopment. This revised definition of blight must be prevalent in substantial, not just characteristic. He asked how D.B. can justify such a claim. Ms. Acosta responded that ultimately, through Redevelopment Plan adoption process and further study, RSG will provide a preliminary report to the City Council that documents all of the conditions within the area. The Redevelopment Agency and the City Council will decide whether the conditions meet the letter of the law. The feasibility study concludes there is sufficient evidence to warrant moving ahead. Additional studies may recommend a reduction of the project area or adoption of the entire area during plan adoption process. C/Harmony asked when the Project Area Committee (PAC) will be formed. Ms. Acosta responded that the law requires a Project Area Committee only if the City displays a substantial number of low and moderate residential units. The proposed study area contains only two residential units; therefore, the law does not require the City to form a Project Area Committee. RSG recommends that rather than creating a Project Area Committee, the City should focus on public education forums and committees to discuss and disseminate redevelopment information. Requirement for a PAC in the project area formation is a highly prescribed process within the law dealing with the assumption that the City will displace low- and moderate- SEPTEMBER 24, 1996 PAGE 5 income households. As a result, the law requires notification of all property owners, businesses, tenants and residents within the study area. C/Harmony asked Ms. Acosta if the parks shown on the map contained in the study area exhibit are considered urban areas. Ms. Acosta responded that they are considered urban areas because they are development in the manner prescribed by the General Plan and not considered vacant. The study incorporates all perceived vacant land and analysis of urbanization criteria. W.V.U.S.D. property adjacent to Pathfinder Rd. was not considered urbanized. The Bramalea property was considered vacant. 14% of the area included in the report is considered non -urbanized. The report suggests that the Gateway Corporate Center has urban blight characteristics due to the fact that the subdivision has existed for a period of time with slope problems and high vacancy rates. Ms. Acosta responded to M/Ansari that an abnormally high rate of vacancy occurring over a period of years is a characteristic of blight and is characteristic of the D.B: study area. M/Ansari expressed concern that many of the businesses considering relocation in D.B. have* asked if the City has a Redevelopment Agency. She observed that many of the City's neighboring communities have Redevelopment Agencies. She indicated she is aware that since 1994, the standards have become very strict. The City is currently unable to attract business because of parking and shopping center layout considerations. She asked Ms. Acosta if there are any guarantees that the City would be successful in the event a Redevelopment Agency was adopted. Ms. Acosta responded to M/Ansari that there are no guarantees. D. B. is in a. very jurisdictionally-competitive environment. Surrounding communities have a number of characteristics which make them more desirable to businesses such as the ability to use financing and other tools related to redevelopment. The brokerage and development community spoke about D.B.'s antiquated shopping centers, undesirable traffic problems, lack of visibility and no redevelopment. M/Ansari indicated the City can either adopt a proactive stance or do nothing and allow the commercial buildings to remain vacant. She stated she is aware of commercial buildings that have not been occupied since they were constructed. She asked if the Redevelopment Agency could concentrate on one area of the City at a time. Ms. Acosta responded that her advice to any agency embarking upon implementation is to consider the most important goals and greatest SEPTEMBER 24, 1996 PAGE 6 opportunities, and to select projects very carefully and to embark upon those projects first. In response to C/Herrera, Ms. Acosta explained that it is not the consultant's role to decide Agency development goals and objectives. If the City was within the adoption process, RSG would propose certain goals and objectives it considers. important in achieving redevelopment of the area. Ms. Acosta reiterated to C/Henera that if the City has no intentions of eliminating a neighborhood of houses, it is not required to develop a Project Area Committee. As a result, the Redevelopment Agency and City Council is afforded more latitude in formulating what kind of public participation program it desires. If RSG had included residential properties in the study area, and the City was required to have a Project Area Committee, the PAC must contain representative members from the project area slated for elimination and as well as property owners, businesses, residents, residential tenants and community organizations, if headquartered within the boundaries. Ms. Acosta responded to C/Herrera that if the Ordinance is not adopted by July 17, 1997, there would be a loss in potential tax -- increment to the Redevelopment Agency because, instead of having a 1996-1997 base year, the City would have a 1997-1998 base year. If within those years, the property values increased, the City would lose whatever revenue was generated by the increase and cumulative incremental increases would be lost for the term of the project area. Over the period of the Redevelopment Plan, the revenue loss could be several million dollars. CMemer referred to the City's General Plan and asked Ms. Acosta if redevelopment funds would allow the City to achieve a stated goal of working toward improving the problems presented by the intrusion of regionally -oriented commuter traffic through the City and into residential neighborhoods. Ms. Acosta responded that pursuit of the Redevelopment Plan would allow the City to achieve this goal. Redevelopment Plans are documents that set forth goals and objectives and all of the powers that the Agency will have to revitalize the project area within the project area boundaries. Additionally, plans are required to have a Public Improvements Projects list. C/Werner again referred to the City's General Plan and asked Ms. Acosta if redevelopment funds could assist the City in encouraging the T retention, rehabilitation, refurbishment and/or expansion of existing business establishments. Ms. Acosta responded affirmatively. She indicated that all of the plans she has been involved with have contained goals and objectives regarding rehabilitation of both commercial and residential properties. SEPTEMBER 24, 1996 PAGE 7 Ms. Acosta further responded to CNVemer that a Redevelopment Plan would allow the City to encourage revenue -generating uses in locations that serve the City's needs and undertake programs to target revitalization of existing commercial uses and selected new retail uses needed to expand the range of goods and services available to local residents and to generate needed sales tax revenue. Responding to C/Wemers question regarding whether redevelopment funds could be used to fund arterial highway access to future schools, Ms. Acosta indicated that the provision of public improvements within or in proximity to, a project area and that would benefit the project area, is allowable. In response to C/Wemer, Ms. Acosta stated that through implementation of a Redevelopment Plan, redevelopment funds would become available to the City for implementation of that portion of the General Plan and the Housing Element contained therein. C/Wemer asked if the following General Plan policy is in conflict with the purview of the Redevelopment Agency program: "Establish a monitoring program which identifies the type and cost of housing being produced within D.B., as well as the availability of vacant land which can be used to accommodate a variety of housing types. Produce required reports to accomplish the programs outlined in this plan (there are numerous programs proposed) for housing that is affordable to very -low, low, and moderate income households." Ms. Acosta responded that the 15% requirement for inclusion includes the segments referred to in the General Plan and should be applied to all of the income types speed in the City's General Plan. C/Werner asked if the following General Plan policy would be constrained by redevelopment: "Facilitate the provision of single and multiple family dwelling units available to very -low, low, and moderate income households through participation in the County's Mortgage Revenue Bond program, issuance of mortgage credits, certificates and other viable economic resourced'. Ms. Acosta responded that, to the contrary, there would be a supportive effort to achieve the stated policy. C/Wemer asked if the following General Plan objective could be accomplished through redevelopment: "Specifically encourage development of assisted rental housing for the elderly, handicapped and disabled. Specifically encourage development of such housing through the use of tax exempt bonds, land write-downs, etc." Ms. Acosta responded that such a policy can absolutely be accomplished through redevelopment. CNVerner stated that although the City has not decided on a specific SEPTEMBER 24, 1996 PAGE 8 plan, there are implied commitments stated in its General Plan. He indicated that Ms. Acosta's responses indicate a properly developed and implemented program would assist the City in achieving its General Plan goals and objectives. Ms. Acosta explained to MPT/Huff that certain schools were included in the study area's preliminary boundaries in the event of future alternate uses because they are adjacent to, or in close proximity to, inclusive commercial areas. During the Redevelopment Plan adoption process, the boundaries will be revisited. Walnut School is an example of an inappropriate school site because it is bordered by industrial and commercial and the school is in poor condition. Ms. Acosta responded to MPT/Huff that Lorbeer Jr. High may qualify to be included under redevelopment criteria. If arterial improvements to Diamond Ranch High are needed to benefit the proposed project area, at some time in the future, benefit findings could be made to utilize funds for arterial road creation. She indicated she would be less enthusiastic about including this item in the redevelopment plan. Ms. Acosta responded to C/Harmony that RSG recommended not to include the canyon area extending along Golden Springs Rd. and -- adjacent to SR 60 because of the parcelization of the area and the fact that it would impact the urbanization of vacant land. Redevelopment does not allow parcel splits. C/Harmony asked for reconsideration of the project area to include the canyon area. He further asked if development of a big box shopping center would dilute an already existing economic condition or is the City building something that will survive in light of the current economic depression. Ms. Acosta agreed with C/Harmony that the retail evolution has produced the big box user issue which is one of the reasons that D.B. is not currently competitive. RSG relied on Economic Research Associates' work which looked at D.B. in the marketplace and analyzed the surrounding competition and identified areas in which D.B. could compete and pursue certain types of uses. Revenue projects reflect those types of projects. Prior to embarking upon any type of project, the City would want to make certain that it made sense within the marketplace. C/Harmony asked if L.A. County objects to the formation of a D.B. Redevelopment Agency. Ms. Acosta responded that she is not aware if anyone has approached the County. She indicated that she recently completed two amendments and a merger within the County and had no problems with the County, which was quite different from the conflicts experienced prior to December 1990. Ms. Acosta responded to C/Harmony that for the study area, RSG SEPTEMBER 24, 1996 PAGE 9 focused on the commercial areas within the City of D.B. If the City moves forward to adopt a Resolution, the next step is to develop goals and objectives for which the City's General Plan will be utilized. RSG did not consider the City's General Plan in drawing the study area boundaries. C/Wemer explained that he and MPT/Huff have had approximately six meetings with RSG since April or May, 1996 as sub -committee members. The meetings were. held to discuss the possibilities of pursuing a Redevelopment Plan. RSG has concluded that a Redevelopment Plan is worthy of consideration. He indicated that he received a survey study draft two weeks prior to all Council Members receiving final draft copies approximately two months ago. Each member of the Council had ample opportunity to discuss questions with staff. He stated that staff indicated no Council Members had offered comments regarding the plan. He further stated that he did not agree with back door approaches. He indicated he felt the Council had been forthcoming with the community and that staff had been forthcoming with the Council and the community. C/Wemer moved, C/Herrera seconded, to adopt Resolution No. 96- 65: A RESOLUTION OF THE CITY OF DIAMOND BAR AUTHORIZING THE DIAMOND BAR REDEVELOPMENT AGENCY TO DESIGNATE A REDEVELOPMENT SURVEY AREA FOR STUDY PURPOSES PURSUANT TO CALIFORNIA COMMUNITY REDEVELOPMENT LAW (HEALTH AND SAFETY CODE SECTION 33000, ET. SEQ.) RECESS: M/Ansari recessed the meeting at 8:45 p.m. RECONVENE: M/Ansari reconvened the meeting at 8:56 p.m. C/Herrera moved, CNVemer seconded to end the debate. The motion was approved 4-1 with C/Harmony voting No. C/Wemer called for the question on the motion to adopt Resolution No. 96-65. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS - Herrera, Werner, MPT/Huff, M/Ansari NOES: COUNCIL MEMBERS - Harmony ABSENT: COUNCIL MEMBERS - None (B) RESOLUTION NO. 96-66: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR APPROVING ADVANCE AND REIMBURSEMENT AGREEMENT NUMBER 2 WITH THE DIAMOND BAR REDEVELOPMENT AGENCY - C/Wemer moved, C/Herrera seconded, to adopt Resolution No. 96-66. SEPTEMBER 24, 1996 PAGE 10 C/Werner amended his motion to include "in accordance with the General Plan". C/Herrera seconded the amended motion. C/Wemer .moved, C/Herrera seconded to close the debate. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS - Herrera, Werner, MPT/Huff, M/Ansari NOES: COUNCIL MEMBERS - Harmony ABSENT: COUNCIL MEMBERS - None RECESS: M/Ansari recessed the City Council meeting to conduct the Redevelopment Agency Meeting at 9:02 p.m. RECONVENED: WAnsari reconvened the City Council meeting at 9:42 p.m. 9. COUNCIL SUB -COMMITTEE REPORTS: C/Herrera announced the next Wildlife Corridor meeting on October 2. She stated CPA's have reviewed the City's procurements, cash disbursements procedures and transaction procedures and made a finding, based upon cash disbursements made during the 3 -month period ending June 30, 1996, that the City is in compliance with the procurement and cash disbursement policy as stated by the American Institute of Certified Public Accountants. She commended staff. She indicated that several staff members, WAnsari and she will attend the Western Regional Conference for the International Council for Shopping Centers starting September 25. She explained the City's CD Rom presentation for attracting businesses to D.B. C/Harmony stated that last week C/Herrera passed out a memorandum to Council urging that if the property in Tonner Canyon is sold to the Wildlife Corridor, that the sales agreement include provisions for a highway to go through the Canyon. He indicated that the City's General Plan does not permit a highway through Tonner Canyon - it permits a highway outside the Canyon and located to the east. He then proposed that Olympic Gold Medal Winner congratulatory signs be posted on the City's bus stops. He requested a report on the business relocating to D.B. MPT/Huff stated that on September 4 & 5, the City culminated Sister City activities by hosting the Sanshia Chen, Taiwan, delegation of 48 at a banquet. On 9/9, the Four Comers Committee met and decided to reassess the group's goals and objectives. He indicated areas of concerns regarding involvement of City's elected officials and a Tonner Canyon bypass corridor. On 9/12, D.B. and Chino Hills Council Members met for the first time. Discussion included Chino Hills' weekly street sweeping, Chino Hills cut - through traffic, and the impact of Diamond Ranch High School opening onto Chino Hills city streets. Chino Hills Council Members indicated that the City favors a bypass road to mitigate its traffic problems. The discussion included mutual Sphere of Influence areas. MPT/Huff explained that the Chamber of SEPTEMBER 24, 1996 PAGE 11 Centers starting September 25. She explained the City's CD Rom presentation for attracting businesses to D.B. C/Harmony stated that last week C/Herrera passed out a memorandum to Council urging that if the property in Tonner Canyon is sold to the Wildlife Corridor, that the sales agreement include provisions for a highway to go through the Canyon. He indicated that the City's General Plan does not permit a highway through Tanner Canyon - it permits a highway outside the Canyon and located to the east. He then proposed that Olympic Gold Medal Winner congratulatory signs be posted on the City's bus stops. He requested a report on the business relocating to D.B. MPT/Huff stated that on September 4 & 5, the City culminated Sister City activities by hosting the Sanshia Chen, Taiwan, delegation of 48 at a banquet. On 919, the Four Comers Committee met and decided to reassess the group's goals and objectives. He indicated areas of concerns regarding involvement of cities' elected officials and a Tonner Canyon bypass corridor. On 9/12, D.B. and Chino Hills Council Members met for the first time. Discussion included Chino Hills' weekly street sweeping, Chino Hills cut - through traffic, and the impact of Diamond Ranch High School opening onto Chino Hills city streets. Chino Hills Council Members indicated that the City favors a bypass road to mitigate its traffic problems. The discussion included mutual Sphere of Influence areas. MPT/Huff explained that the Chamber of Commerce is sponsoring a membership drive on October 8, 9 and 10 and encouraged business owners to join and help support the City's businesses. The San Gabriel Council of Government (COG) met September 19. With the addition of Montebello, there are 30 member cities. He asked Council Members to return their October 4 State Senator and Assembly Reception -R. S.V. P.'s by October 1. He stated that, according to a letter from the State, L.A. County residences are specifically exempted from the MPDES regulation. He presented a Proposition A update. He indicated that if the Boy Scout property acquisition takes place, the current language prevents construction of a bypass road outside of the SEA on Boy Scout property as the City's General Plan calls for. He stated he protested this matter. He indicated Foothill Transit is proposing a 10 cent fare increase. Public Hearings for this item are scheduled for September 25, 26 and 30 with a formal Public ,Hearing Saturday, October 5 at the Foothill Transit Board Room. Call Foothill transit or City Hall for information. 10. COUNCIL COMMENTS: M/Ansari attended the Magic of Broadway opening at Mt. SAC's Performing Arts Center. On September 19, staff members, C/Herrera and M/Ansari attended the San Gabriel Commerce & Cities Consortium's Economic Conference at the Sheraton Fairplex. She has Alameda Corridor information for interested Council Members. She presented certificates to D.B. citizens who participated in the Pomona Fair Technology display. C/Harmony, C/Wemer and M/Ansari attended the SEPTEMBER 24, 1996 PAGE 12 conduct, M/Ansari adjourned the meeting at 10:12 p.m. TOMMYE NICE, Deputy City Clerk ATTEST: ea� /— Mayor