CRA 2002-04-08MINUTES OFA REGULAR MEETING OF THE
CYPRESS REDEVELOPMENT AGENCY
HELD
April 8, 2002
Agency Chairperson Sondhi called the meeting of the Cypress Redevelopment Agency
to order at 8:40 p.m. in the Council Chambers, 5275 Orange Avenue, Cypress,
California.
PRESENT: Agency Board Members Keenan, McGill, Piercy, Agency
Chairperson Sondhi
ABSENT:
Agency Vice Chairperson McCoy
Also present were Executive Director, City Attorney, Deputy Executive Director, Agency
Treasurer, Public Works Director, Chief of Police, Recreation and Community Services
Director, Assistant Community Development Director, Assistant to the City Manager,
and Agency Secretary.
It was moved by Agency Board Member Keenan and seconded by Agency Board
Member MoGilI, to approve Consent Calendar Item No. 17.
The motion was unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
4 AGENCY MEMBERS: Keenan, McGill, Piercy, and Sondhi
0 AGENCY MEMBERS: None
1 AGENCY MEMBERS: McCoy
Consent Calendar:
Item No. 17: ADOPTION OF RESOLUTION AUTHORIZING THE ACCEPTANCE OF
DEEDS IN ACCORDANCE WITH GOVERNMENT CODE SECTION 27281.
Recommendation: That the Cypress Redevelopment Agency Board adopt the
Resolution by title only, authorizing the acceptance of deeds in accordance with
Government Code Section 27281.
RESOLUTION NO. CRA-102
A RESOLUTION OF THE CYPRESS REDEVELOPMENT AGENCY,
AUTHORIZING THE ACCEPTANCE OF DEEDS IN ACCORDANCE
WITH GOVERNMENT CODE SECTION 27281.
END OF CONSENT CALENDAR
New Business:
Item No. 18: CONSIDERATION OF AN OWNER PARTICIPATION PROPOSAL AND A
THIRD PARTY PROPOSAL SUBMI'I-I'ED FOR THE DEVELOPMENT OF THF
APPROXIMATELY 18-ACRE POTENTIAL REDEVELOPMENT SITE LOCATED AT
THE NORTHWEST CORNER OF WALKER STREET AND KATELLA AVENUF
WITHIN THE LOS ALAMITOS RACE TRACK AND GOLF COURSF
REDEVELOPMENT PROJECT AREA.
Agency Chair Sondhi stated that due to a conflict of interest she would step down from
the dais and abstain from voting. City code requires the election of a temporary Chair
due to the absence of the Agency Vice Chair.
CYPRESS REDEVELOPMENT AGENCY APRIL 8, 2002
Agency Board Member Piercy nominated Agency Board Member Keenan to serve as
temporary Chair and moved to close nominations.
The motion was carried by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
3 AGENCY MEMBERS: Keenan, McGill and Piercy
0 AGENCY MEMBERS: None
1 AGENCY MEMBERS: McCoy
1 AGENCY MEMBERS: Sondhi
The Deputy Executive Director provided background information on this item.
Jonathan Curtis, Sheppard, Mullin, Richter and Hampton, LLP, stated they were not
informed until five minutes prior to the start of the meeting that a presentation would be
allowed by Cottonwood. He asked for clarification on the Walker/Katella Project and the
origins of the project.
Bayless Conley, Pastor, Cottonwood Christian Center, stated he feels Cottonwood is
being treated unfairly, has never been given due process, and that the City is being
dishonest. He feels the City is pushing Cottonwood off of their property in order to
negotiate with Costco.
Todd Bartock, Development Manager, Costco, stated he was present to answer any
questions the City Council may have.
The City Attorney stated that, for the record, the City had received just prior to the City
Council meeting, a letter from legal counsel for Cottonwood Christian Center that raises
no other legal issues other than those already raised. In the letter from legal counsel for
Cottonwood, there continues to be a deliberate, intentional, and selective breach of the
privileged and confidential nature of the ongoing settlement negotiations where
Cottonwood discloses one-sided versions of one topic of many topics that are included
in the settlement negotiations. He stated that all prior responses from the Agency to
Cottonwood shall also be included as part of the record.
Agency Board Member Keenan asked about the timing of this particular procedure.
The City Attorney stated that everything happening at this meeting is being compelled
because Cottonwood Christian Center chose to assert that the City does not have the
right to engage in a standard, routine practice which has occurred in all three of its
project areas. Periodically, project area plans have to be reviewed, updated, and the life
of the eminent domain authority of the Agency renewed. Cottonwood has filed a lawsuit
challenging the right of the Agency to reauthorize its eminent domain authority for an
additional 12 years. As a consequence of asserting that right, the Agency must
undertake its redevelopment powers and complete its redevelopment process during
the current life of its redevelopment authority. The Agency must pursue and perfect its
rights, if at all, before June 2002 when those powers become disputed by virtue of the
pending claim raised by Cottonwood Christian Center as to the right of the City to
engage in a routine amendment to its redevelopment plan. One of the steps of the
process is to complete the Owner Participation process.
Agency Board Member McGill asked if the retail concept for the area is allowable into
the Specific and General Plan.
The City Attorney stated the City and Agency have specifically articulated its authority
for this project in the answer filed to the Cottonwood Federal District Court complaint.
The Deputy Executive Director stated there is a section of the General Plan entitled
"Land Use" which identifies the land use goals and objectives in the City's General Plan,
He read verbatim the section regarding "Maintaining Business Park Competitiveness."
The Assistant Deputy Executive Director stated that in September 2001, the City
adopted a General Plan update. He then read verbatim from the Cypress Business and
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CYPRESS REDEVELOPMENT AGENCY APRIL 8,2002
Professional Center Specific Plan, which has been in place since 1990, the subsection
entitled "Professional Office."
The City Attorney stated it is staff's opinion, supported by Agency counsel and the City
Attorney, that the authority to develop a retail project within this project area is permitted
by the General Plan, by the Specific Plan, and by specific authorization within the
General Plan that allows the transfer of land uses within the Specific Plan area such
that it could permit the development of a retail complex being proposed.
Agency Board Member Piercy stated the issue under consideration is an Owner
Participation proposal and decisions made by the City are for the benefit of all Cypress
citizens.
Agency Board Member McGill stated the Council and staff want to continue to develop
negotiations with Cottonwood.
Agency Board Member Keenan stated he is disappointed that negotiations and dialogue
have been colored by this proposal, and the City is procedurally bound to follow a
certain process.
It was moved by Agency Board Member Piercy and seconded by Agency Board
Member McGill, to: 1) Find and determine that the development proposal submitted by
Cottonwood Christian Center, Inc. ("Cottonwood") in response to the Agency's invitation
to express interest in participating in the proposed Walker/Katella Retail Project is non-
responsive; and 2) Find and determine that, even if the Cottonwood proposal were
deemed responsive, the development proposal submitted by Costco Wholesale
Corporation ("Costco") is (a) responsive to the Agency's proposed Walker/Katella Retail
Project, and (b) is more consistent with the goals and objectives of the Los Alamitos
Race Track and Golf Course ("LART") Redevelopment Project Area, the City's General
Plan, Strategic Plan, and the Cypress Business & Professional Center Specific Plan;
and 3) On the basis of numbers 1 and 2 above, select the Costco development proposal
for further consideration; and 4) Find and determine that, pursuant to the Agency's
Rules and Governing Participation and Preferences for the LART Project Area, and the
provisions of California Community Redevelopment Law ("CRL"), the owner
participation process for the WalkedKatella Retail Project has been completed, and that
the Agency no longer has obligations to extend the owner participation process or
consider proposals from owner participants for the Walker/Katella Retail Project.
The motion was carried by the following roll call vote:
AYES: 3 AGENCY MEMBERS: Keenan, McGill and Piercy
NOES: 0 AGENCY MEMBERS: None
ABSENT: 1 AGENCY MEMBERS: McCoy
ABSTAIN: 1 AGENCY MEMBERS: Sondhi
ADJOURNMENT: Agency Chairperson
ATTEST:
Sondhi adjourned the meeting at 9:42 p.m.
S
ECRETARY OF '~'~E CYPRE"~S
EDEVELOPMEN¥'AGENCY
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