HomeMy WebLinkAbout12/18/2006 Minutes - Special MeetingCITY OF DIAMOND BAR
CITY COUNCIL SPECIAL MEETING
DECEMBER 18, 2006
STUDY SESSION: Mayor Tye called the Special Meeting to order
at 9:05 a.m. in Conference Room CC -3 of the South Coast Air Quality
Management District/Government Center, 21865 Copley Dr., Diamond Bar,
California.
PLEDGE OF ALLEGIANCE: Mayor Tye led the Pledge of Allegiance
Present: Council Members Chang, Herrera, Zirbes
(telephonically), Mayor Pro Tem Tanaka and Mayor Tye.
Also Present: James DeStefano, City Manager; David Doyle,
Assistant City Manager; Nancy Fong, Community Development Director; David
Liu, Public Works Director; Ken Desforges, IS Director; Ryan McLean, Senior
Management Analyst; Marsha Roa, Public Information Manager and Tommye
Cribbins, City Clerk.
CM/DeStefano said the purpose of this morning's meeting was to update Council
on the pending economic development initiatives that were set forth earlier this
year through workshops and the Council's goals and objectives.
1) KMART
CM/DeStefano reported that staff and the City's Economic Development
Consultant, Larry Kosmont have had recent discussions with the Kmart
property owner, Arman Gabey. The discussions focused on creation of a
parking authority to accommodate the creation and financing of additional
parking spaces on the property. Mr. Gabey has an interest in
redeveloping his property, the Kmart portion. And he also has an interest
in redeveloping the surrounding properties that include the retail center,
gas stations, fast food establishments, etc. that exist on Gentle Springs
Ln. and from that point to Golden Springs Dr. Mr. Gabey is not looking to
acquire any of the properties, rather, seeking the City's assistance in
assembling the properties through creation of a parking authority. Staff
told Mr. Gabey that he would need to provide a more detailed proposal to
back up his request for a significant financial contribution from the City.
In response to C/Herrera CM/DeStefano explained that the project has
gone from big box type stores to smaller retail and restaurant "lifestyle"
uses and Mr. Gabey felt it would take a couple of months to prepare a new
plan. CM/DeStefano believed it would be February or March before the
City received the new proposal. A parking authority would not be
' established until the City was fully aware of the proposed project.
CM/DeStefano responded to C/Chang that he believed Mr. Gabey was
very clear on the City's position.
DECEMBER 18, 2006 PAGE 2 CC SPECIAL MEETING
C/Herrera asked if Mr. Gabey intended to contribute investment money or
was expecting the City to foot the entire amount.
CM/DeStefano indicated that talks have not progressed to that level of
detail but said he knew that Mr. Gabey was aware he would have to
contribute a substantial portion of the total investment dollars necessary to
complete the project.
C/Herrera felt the City should consider the larger 20-25 acre project over
the smaller 8 or 10 acres occupied by Kmart to maximize the full potential
of the area. She asked if there was consideration of connecting the upper
and lower portions of the mall with a driveway.
CM/DeStefano responded Yes. The concept included removing one of the
buildings inside the Jolly Bagel shopping center and replacing it closer to
the old Sheriff's substation or looking at a broader opportunity to create an
entirely new palate by removing all of the buildings and proposing a much
more intense development.
2) HONDA PROPERTY
CM/DeStefano stated that at this point the owner is still 10-12 months
away from relocating to the City of Industry, a site that has not yet
commenced construction. The owner proposes to sell or lease the 5 -acre
property and believes the value of the property to be about $10 to $12
million including the Burger King site. The owner does not favor relocating
from D.B. However, it is a Honda dealership requirement. The graphic
shows potential freeway modification for new on/off ramps at the
Grand/SR57 merge through the Honda storage lot. The new ramp would
replace the existing on/off ramp at Grand Avenue. The City commented
back that the new on/off ramp probably has merit but not at its proposed
location because it slices and erodes the Honda property even further.
The City of Industry and D.B. have a strong interest in widening the Grand
Avenue Bridge to add capacity and to review the existing on/off ramps and
merging of the SR60 and SR57. Old Brea Canyon Road is owned by the
City of Industry, which gives D.B. an opportunity to talk with Industry about
vacating the property to D.B. and pushing the road further west. The next
step for D.B. is to assist the property owner's broker in promoting the site
for the types of land uses that would be most acceptable to D.B. It is
unlikely that the site would ever be used as a new car dealership again.
Rather, it would likely be a satellite new car store or used car, recreational
vehicle, motorcycle or a boat sales facility. It may also be developed with
hotel and restaurant uses.
DECEMBER 18, 2006 PAGE 3 CC SPECIAL MEETING
3) CRESTLINE PROPERTY
CM/DeStefano explained that the unincorporated area has been
considered for annexation to D.B. for about two years. Residents are
confused about their jurisdiction. Planning staff continues to move forward
with the annexation process that will take about two years to finalize. D.B.
needs to amend its General Plan, to provide zoning for the properties,
apply for the annexation, schedule a vote of the property owners and
develop an environmental document for certification.
CDD/Fong responded to C/Chang that the few residents who attended the
community meetings were in favor of annexation and looked forward to
having D.B. take care of their streets.
CM/DeStefano stated that ingress/egress for the existing developed
property is via Brea Canyon Cutoff. There is no other access proposed
and no other access that is feasible. This property is adjacent to the 100
acres that D.B. is looking to purchase from the City of Industry and is
adjacent to the Aera Energy property. LAFCO gave preliminary approval
for the potential of this property to become part of D.B. because it makes
sense for many reasons.
4) SITE D
CM/DeStefano stated that Site D is the 28 -acre site located at Diamond
Bar Blvd. and Brea Canyon Rd. and is declared excess property that is
owned by the School District. D.B. was in escrow with Lewis to purchase
the property. However, the agreement with Lewis expired and the
property went back on the market. D.B. has discussed with the School
District its desire to create a specific plan for the site with 50 percent
commercial development because residential is not as promising as a
freeway -oriented and residential serving commercial site at that location.
The School District is interested in a residential plan because it would
meet their objectives to generate the highest value possible. Last week
staff and CA/Jenkins met with the School District's Superintendent and
attorney to finalize the details of a Memorandum of Understanding (MOU).
If the MOU comes together the way staff believes it will the matter would
be placed on the Council's January 16 agenda for approval. Incorporated
within the MOU is the City's interest in processing a specific plan for the
property in an expeditious manner that would include the City fronting the
cost for the specific plan estimated at about $250,000. The School District
would reimburse the City upon sale of the property.
CM/DeStefano responded affirmatively to C/Herrera's questions regarding
the specific plan changing the land use and the City's General Plan. The
General Plan land use is currently Public Facility and the zoning is Single
Family Residential, neither of which would fit with the desires of either the
DECEMBER 18, 2006
City or the School District.
to conclude.
PAGE 4 CC SPECIAL MEETING
The entire process is likely to take about a year
5) UPDATE ON THE COUNTRY HILLS TOWNE CENTER
Mr. McCarthy (MCC Capital) is continuing to seek tenants for his property.
The City does not have any information with respect to new tenants.
However, Mr. McCarthy has had recent conversations with the City and
has talked about coming forward in about 30 days to address those
issues. Currently, Mr. McCarthy is moving existing tenants in preparation
for new tenants. For example, he is moving the State Farm Insurance
office into the Friends of the Library space and has given the Friends of
the Library notice to vacate in the middle of January. Mr. McCarthy has
been encouraged to give the Friends additional time but it is his business
decision. The grocery store is under construction and slated to be
completed by June 2007. However, it is more likely to be completed about
August. Starbucks has been approved to move forward with construction
at the old Wherehouse location.
CDD/Fong stated that MCC Capital has submitted a sign program for
review. Staff has completed its review and anticipates sending the matter
to the Planning Commission in January and then to the City Council for
final approval.
CDD/Fong responded to C/Herrera that the applicant proposes to
refurbish the existing pylon sign rather than construct a new tower. The
entry will look much nicer with the fountains and the entry statement.
C/Chang asked if the applicant was proposing a high-end restaurant to
replace the theater.
CDD/Fong said she believed the applicant was looking for a spa use at
that location.
MPT/Tanaka said he was bothered by what the applicant's plans were for
the entire project, how it was being done piecemeal and the length of time
it was taking for completion.
C/Chang asked if it was a problem that the City would not expedite the
project.
CDD/Fong responded No, that staff's goal was to get the shopping center
renovated as quickly as possible.
CM/DeStefano said it has taken a great deal of effort to get the applicant
to respond to the City's desire to expedite the completion of the
redevelopment of this shopping center. Regarding Starbucks, the City has
1
DECEMBER 18, 2006
PAGE 5 CC SPECIAL MEETING
been stymied on the issue of the block wall behind the old Wherehouse
building. There is supposed to be a drive-through in that area that
necessitates pushing the existing block wall closer to Diamond Bar Blvd.
and requires a significant amount of geotechnical documentation to
support the design to hold up Diamond Bar Blvd. similar to the wall
between Target and Grand Ave.
M/Tye asked why the City would not require the applicant to place a drive-
through on the south end of the building rather than compromise a City
thoroughfare.
CDD/Fong said the design was most likely based on the desire of the
tenant.
C/Herrera asked if the owner definitely had a lease with Starbucks.
CDD/Fong felt certain that he did because Starbucks would not be
proposing construction plans without a lease.
C/Herrera said she was concerned because the owner presented so many
conflicting stories and felt he might take the City down a certain path only
to tell the City that the tenants backed out and he would come back with a
different proposal. Worse, the City lets the applicant go through the
motions of cutting the hillside and putting in a big wall and no tenant would
be in the site. She said she had visions of Mr. McCarthy walking away
from the project or sell the center and the City be left with an eyesore.
MPT/Tanaka asked if staff could verify whether Mr. McCarthy sold the
Village Loop Center because the building designated as a restaurant still
has chain link fencing around it and the market is gone.
CM/DeStefano said that in the general area Mr. McCarthy has had some
successes. For example, he renovated a dilapidated center in Yorba
Linda about five to seven years ago; one in Chino at the corner of Central
and Philadelphia about five years ago; he purchased the Phillips Ranch
Center which was in far worse shape than the Country Hills Towne Center
and that has not been quite as successful; shortly after he bought the
Phillips Ranch Center he bought the D.B. Center and as everyone knows,
the project has been quite frustrating. Mr. McCarthy has demonstrated
some success and he does renovate and sell centers as part of his
business. The same thing happened to the Jolly Bagel Center. A
contractor purchased the property, fixed it up and sold it.
CM/DeStefano said staff would verify the sale of the Pomona property and
commented that when Starbucks presents tenant improvement plans to a
City it is generally a sign that they are moving forward.
DECEMBER 18, 2006 PAGE 6 CC SPECIAL MEETING
C/Chang felt that both the City and Mr. McCarthy were frustrated and
when Mr. McCarthy comes to the City again the City should require him to
put forth a commitment as to when he expects to finish the project so that
the City can work with him to help move it along.
M/Tye recalled that Mr. McCarthy originally wanted to build the
professional two-story building and M/Tye said he would not be interested
in moving forward with that project because he has not done much toward
completing the first phase of the project.
6) TRES HERMANOS
CM/DeStefano referred to the vacant land between Diamond Bar and
Chino Hills of which D.B. has approximately 700 acres from Grand Ave, to
the south side of Diamond Ranch High School. Chino Hills has about
1700 acres from Grand Ave. south to the Boy Scout property. Both Cities
have set aside the property for future development opportunities and both
Cities have limited residential build out opportunities. The Tres Hermanos
Conservation Authority was created a few years ago to look at the
possibilities for the property owned by the City of Industry. It has not been
determined whether City of Industry wishes to pursue a water use on the
property. Staff was directed by the Authority Board to prepare an RFP
(Request for Proposal) to obtain the services of a consultant to help Chino
Hills and D.B. determine the best use for the property. A final draft RFP
was prepared for consideration about September 2006. However, the
Authority Board has not met since that time and will not be meeting until
late January or February to consider the RFP.
C/Chang felt consensus was not forthcoming and that a project would be
too costly.
CM/DeStefano said that the City of Industry has talked about master
planning the entire 8000 acres. However, D.B. is fundamentally interested
in the Tres Hermanos property and at this time there is no interest in the
Tonner Canyon property. At this point, the two cities do not yet know if
City of Industry is a willing participant.
7) REEDICITY OF INDUSTRY PROPERTY
CM/DeStefano explained that Los Angeles County has a "no net loss"
policy for recreation space meaning that the current golf course would
have to be relocated. Thus, the City has focused on the Reed property
along Pathfinder Rd. area in Rowland Heights and very recently the
Industry property became available as a potential replacement site.
ACM/Doyle stated that the City is in escrow on two properties and
conceptual plans were presented to the City Council. It appears that the
CM/DeStefano explained that the Reed/City of Industry property would
afford additional acreage necessary to accommodate a hillside facility in
place of the current flat course.
ACM/Doyle also explained that the effort would be to maintain as much of
the slope and oak areas as possible to lessen impacts and buffer the
homeowners associations.
CM/DeStefano stated that staff spoke with a member of the adjacent
residential neighborhoods who was opposed to a housing project
proposed by a developer through the County. D.B. is not proposing any
homes on the golf course and the City has been so stating that fact from
the very beginning. There has been some discussion that homes might
be appropriate and if D.B. were a private land developer it would make
sense because it would help offset the costs of building a golf course.
However, D.B. is not doing that. D.B. is tying this golf course development
with the existing D.B. golf course and there is the likelihood of housing on
the existing site and development on the existing site can help offset the
cost of building a new golf course. It is true that the two properties are not
connected and the connection point for those two properties is the Aera
Energy property. Staff is talking with Aera to acquire a portion of their
property to bridge the gap. Aera may have plans for homes on a portion
of their 3000 acres that exists in the area. However, this is not intended to
DECEMBER 18, 2006 PAGE 7 CC SPECIAL MEETING
properties could accommodate a golf course. There are a lot of moving
pieces and the City is looking at a number of alternatives in the area and
that this is a very preliminary effort toward looking at the properties as a
potential relocation for the golf course. Staff is in the process of setting a
meeting with the County's Parks staff to discuss the various options, look
at conceptual designs and they just received a proposal to do the metes
and bounds study which means that the property must be identified to
complete the 18 -hole course. The land mass is provided to the County so
that the County can appraise the mass and determine the value against
the appraised value of the current site to make certain there is no net loss.
Staff is most concerned about setting up public meetings in D.B. and
Rowland Heights to provide the public with the facts. Newspaper articles
and rumors are outside the scope of what D.B. has talked about and what
D.B. has considered. In fact, the opposite is true. ACM/Doyle further
stated that he has been interviewing consultants to help with the public
outreach slated to begin mid-January/early February. During the time the
appraisal is being done, the City needs to work with the County to
formulate the agreement, look at environmental impacts for both the new
and current courses and look at what potential development possibilities
exist from parkland and recreational uses to what types of commercial
developments might be feasible in accordance with the possible freeway
improvements. No decisions have been made to date and staff is making
every effort to move the project forward.
CM/DeStefano explained that the Reed/City of Industry property would
afford additional acreage necessary to accommodate a hillside facility in
place of the current flat course.
ACM/Doyle also explained that the effort would be to maintain as much of
the slope and oak areas as possible to lessen impacts and buffer the
homeowners associations.
CM/DeStefano stated that staff spoke with a member of the adjacent
residential neighborhoods who was opposed to a housing project
proposed by a developer through the County. D.B. is not proposing any
homes on the golf course and the City has been so stating that fact from
the very beginning. There has been some discussion that homes might
be appropriate and if D.B. were a private land developer it would make
sense because it would help offset the costs of building a golf course.
However, D.B. is not doing that. D.B. is tying this golf course development
with the existing D.B. golf course and there is the likelihood of housing on
the existing site and development on the existing site can help offset the
cost of building a new golf course. It is true that the two properties are not
connected and the connection point for those two properties is the Aera
Energy property. Staff is talking with Aera to acquire a portion of their
property to bridge the gap. Aera may have plans for homes on a portion
of their 3000 acres that exists in the area. However, this is not intended to
DECEMBER 18, 2006 PAGE 8 CC SPECIAL MEETING
be a golf course that has homes rimming it nor is it intended to be a golf
course that has access to Pathfinder Rd. The two most probably access
points are from the Aera Energy property and the other from Brea Canyon
Rd. south of the Crestline property. This proposal is at a very, very
preliminary stage with many unknowns. If the project does not move
forward the City can cancel the Reed escrow but it makes sense to move
forward with the purchase of the Industry property. This will be a long
process with many decisions to be made along the way to determining
whether or not to relocate the golf course.
ACM/Doyle responded to C/Herrera that the escrow period for the Reed
property contains an option for continuing it to May 2008, the same
timeframe put on the Industry property.
CM/DeStefano stated that it is the City's intent to have the golf course be
in the City of D.B. and if the City were to acquire the properties and pursue
a new golf course D.B. would move forward with annexation of the
property.
MPT/Tanaka asked what the benefit would be to D.B. in annexing the golf
course since the revenue does not flow to the City.
ACM/Doyle responded that any sales tax generated would flow to the City.
CM/DeStefano explained that the sales tax revenue from the current golf
course is minimal and a new contemporary golf course would generate
significantly more sales. However, the revenue would not be substantial.
Because the current golf course is in the City, staff believes it is important
that the relocated golf course be in the City as well and that the name
remain the same.
ACM/Doyle said the City has obtained information about sales tax leaks
and surveyed residents about what kinds of opportunities they would like
to see at the current site. Preliminary sketches for possible land use
would include buffering for existing residents, open space, parkland, retail
opportunities and so forth.
CM/DeStefano explained how the next round of freeway improvements
would impede upon the current golf course. It appears that there is
adequate room to increase capacity for the SR57/60 merge and eliminate
much of the weaving problems. More study is required and the City of
Industry is heading that effort as a benefit to them and to the region.
M/Tye asked if it made sense to move the westbound onramp closer to
the freeway to spare the Honda property would it not make sense to move
the eastbound off -ramp closer to the freeway to spare property.
DECEMBER 18, 2006 PAGE 9 CC SPECIAL MEETING
CM/DeStefano said that it may, but in lieu of having the eastbound Grand
Ave. traffic make a left turn to get onto the northbound freeway and
stacking on Grand Ave., the engineers believe that the free flow of traffic
with the proposed type of movement would be far superior. Indeed, the
penalty for the free flow of traffic is the need for acres of property to make
it work.
C/Herrera felt that a minimum of two public meetings per community
should be scheduled as quickly as possible.
C/Chang concurred.
8) AERA ENERGY
CM/DeStefano reported that tomorrow staff would present Council with a
five-year pre -annexation agreement with Aera Energy for approximately
2000 acres. The remainder of the Aera property is closer to Brea and
LaHabra Heights. Within the 2000 acres Aera is proposing a maximum
2800 dwelling units plus commercial, public safety facilities, schools,
parks, open space, etc. A very preliminary financial study reveals merit to
the proposal; however, the analysis is not yet complete and is based on
preliminary information. He said he would not be recommending a multi-
year agreement with steps to implement the terms of the agreement
unless it was financially rewarding for the City.
9) TARGET PROPERTY
CM/DeStefano reported that Chili's is in escrow and has submitted plans
to build a restaurant on the Golden Springs/Grand Ave. corner on the
Target pad. Panda Express is in escrow to purchase the second pad and
should be presenting their proposal for build out in the near future.
C/Herrera felt that for a small city D.B. had undertaken a multitude of very
dynamic and exciting projects that were very impressive. She
commended staff for doing such a great job with respect to economic
development efforts.
C/Chang agreed and recommended the City put the information on its
website.
MPT/Tanaka said he was excited about the projects but cautioned Council
that the City should not take on more than it can support.
C/Herrera felt it was important to rely on consultants and the City's
engineers to keep the City fully informed about all possibilities involving
projects.
DECEMBER 18, 2006 PAGE 10 CC SPECIAL MEETING
C/Zirbes said he heard a lot of good things this morning and has been in
touch with staff regarding the progress of these items. He thanked
everyone for participating.
PUBLIC COMMENTS: None Offered.
ADJOURNMENT: With no further business to come before the City
Council, M/Herrera adjourned the Special Meeting at 10:50m.
T MM E CRIBBINS, City Clerk
The foregoing minutes are hereby approved this 1 ct-h_ day of ,Tarry ,
2007.
STEV4T, Mayor
