CRA 2002-05-28MINUTES CFA REGULAR MEETING OF THE
CYPRESS REDEVELOPMENT AGENCY
HELD
May 28, 2002
Agency Vice Chairperson McCoy called the joint meeting of the Cypress
Redevelopment Agency and City Council to order at 7:43 p.m. in the Council Chambers,
5275 Orange Avenue, Cypress, California.
PRESENT:
Agency Board Members Keenan, McGill, Piercy, Agency Vice
Chairperson McCoy
ABSENT:
Agency Chairperson Sondhi
Aisc present were Executive Director, City Attorney, Agency Counsel, 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, Agency Secretary, and Deputy City Clerk.
NEW BUSINESS
The Mayor Pro Tern stated that Agenda Item No. 16 and 17 would be considered at the
same time.
The City Attorney stated there were two items that needed to be called to the attention
of the City Council. Despite best efforts to coordinate with legal counsel for Cottonwood
Christian Center to receive all of their comments and observations, staff received two
letters tonight at the eleventh hour.
The City Attorney stated the first letter is directed to Council/Agency Member Piercy,
which accuses her of bias and conflict of interest. In his opinion, repeated public
statements reported in the newspapers are not evidence of bias and cities are often
misquoted. The other accusation is that Ms. Piercy has a conflict of interest because
she works for the Cypress School District. He stated that Ms. Piercy does not work for
the Cypress School District and even if she did, her income as a school teacher is not
income that triggers the conflict of interest provision of the Political Reform Act.
The City Attorney stated he received a 25-page fax as he entered the Council Chamber
from legal counsel for Cottonwood Christian Center commenting on the proposed
Resolution of Necessity. He stated this is disappointing because staff worked at great
lengths with legal counsel to give them the staff report, recommendations, and
supporting resolutions at the earliest possible opportunity to give them the maximum
comment period. Comments received on Friday were hand delivered to Council, and
today, the City has received eleventh hour comments from Cottonwood, which will be
made a part of the record.
Item No. 16: CONFORMANCE OF THE PROPOSED ACQUISITION OF THF
WALKER/KATELLA SITE AND THE PROPOSED DEVELOPMENT OF THF
WALKER/KATELLA RETAIL PROJECT WITH THE CYPRESS GENERAL PLAN.
The Assistant Community Development Director provided background information on
this item.
Item No. 17: CONSIDERATION OF RESOLUTION OF NECESSITY AUTHORIZING
FOR THE APPROXIMATELY 18 ACRE PROPERTY LOCATED AT THE NORTHWEST
CORNER OF WALKER STREET AND KATELLA AVENUE (THE "PROPERTY").
The Deputy Executive Director introduced Serine Ciandella from Kimley Horn &
Associates, Collette Morse, RBF Consulting, and Mike Rubin and Phil Kohn from the
law firm of Rutan and Tucker.
CYPRESS REDEVELOPMENT AGENCY MAY 28, 2002
The Deputy Executive Director provided background information on this item.
Council/Agency Board Member McGill asked for clarification on public interest versus
public use versus private use.
Agency Counsel stated the Walker/Katella project is a public use that justifies the use of
eminent domain, and that redevelopment has been conclusively identified as a public
use.
The meeting was recessed at 8:45 p.m.
The meeting was reconvened at 9:08 p.m.
The following provided testimony on behalf of Cottonwood Christian Center:
Andy Guilford
Bayless Conley, Cottonwood Christian Center
Scan O'Connor, Sheppard, Mullin, Richter & Hampton, LLP
Gideon Kanner
Marc Strong, Assemblyman Ken Maddox's Office
Chris Norby, Municipal Officials for Redevelopment Reform
Sally Flowers, Council Member, City of Artesia
Jim Cobrae
Linda Hicks
The meeting was recessed at 10:03 p.m.
The meeting was reconvened at 10:09 p.m.
The City Attorney stated the City has received sound, correct legal advice and most
importantly, this is sound public policy for the greatest good with the least private injury.
He stated he would like to address the issue regarding the moratorium. Moratoriums are
recognized in State law as lawful "time outs" so that a public agency can engage in a
thoughtful planning of a broad piece of property. The moratorium at issue was adopted
after Cottonwood submitted its materials for a Conditional Use Permit and after those
submittals were returned as being incomplete. When the legal adequacy of the
submittals were ultimately brought before the City Council for a determination, legal
counsel for Cottonwood argued that there should be nothing contained in the
Conditional Use Permit Application Resolution findings with respect to the moratorium
because the Cottonwood application had nothing to do with the moratorium, which he
agrees with. The only reason for the delay on hearing for the Conditional Use Permit
appeal submittal was at the request of legal counsel for Cottonwood.
The City Attorney stated the City has not predetermined an outcome regarding the
agendized resolutions. He stated that during the deposition of Costco, the
representative stated there is not a done deal between the City and Costco. The project
under consideration is the Walker/Katella Retail Project, not Costco.
Agency Counsel stated the United States and California Supreme Courts have both
concluded that redevelopment is a public use for which eminent domain can be used.
The site is a vacant piece of property and it is misleading to say the taking by eminent
domain of the property is taking the church or the church's project. The Walker/Katella
Retail Plan is more consistent with the goals and objectives of the redevelopment plan.
He stated the project area was determined to be blighted in 1990 when the
redevelopment plan was adopted and continues to be deemed blighted today.
Council/Agency Board Member Keenan stated that the City of Fullerton, which Mr.
Norby represents, recently allowed a church to be built but only after the church agreed
to make the city whole on the loss of property tax to the school districts, O.C. Fire
Authority, and other affected agencies. He stated Assemblyman Maddox, while a
Council Member in Garden Grove, voted to use eminent domain to relocate 150 senior
citizens from a mobile home park, all in the interest of economic development, for a
development that was never built. He stated he hoped Assemblyman Maddox would
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CYPRESS REDEVELOPMENT AGENCY MAY 28, 2002
work harder in the Assembly to stop taking away cities money so cities don't have to be
so dependent on aggressive development.
Council/Agency Board Member McGill stated the City Council has been inundated with
phone calls, letters, faxes, and emails, and they are just not able to respond to
everyone. He thanked everyone for their input on the issue. He stated that Cypress
does welcome churches to the community; there are currently 31 churches and a
mosque, which is one of the highest per capita in Orange County.
Council/Agency Board Member McGill asked what happens with the discussions with
Cottonwood Christian Center.
Agency Counsel stated that adoption of the Resolution of Necessity would not preclude
continuing negotiations with Cottonwood.
Agency Counsel stated that information staff has states that Cottonwood purchased the
property in September, 1999 for $12,908,142.00. The Redevelopment Agency has
offered, as reflected in the staff report and as made in the formal offer letter,
$14,583,500.00 for the property.
It was moved by Council Member McGill and seconded by Council Member Keenan, to
adopt the Resolution by title only, relating to the conformity of the proposed acquisition
of the WalkedKatella site and the proposed development of the Walker/Katella Retail
Project with the Cypress General Plan.
The motion was unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
4 COUNCILMEMBERS: Keenan, McGill, Piercy, and McCoy
0 COUNCILMEMBERS: None
1 COUNCILMEMBERS: Sondhi
RESOLUTION NO. 5564
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
RELATING TO THE CONFORMITY OF THE PROPOSED ACQUISITION
OF THE WALKER/KATELLA SITE AND THE PROPOSED DEVELOPMENT
OF THE WALKER/KATELLA RETAIL PROJECT WITH THE
CYPRESS GENERAL PLAN.
It was moved by Agency Board Member Keenan and seconded by Agency Board
Member Piercy, to adopt the Resolution by title only, approving the Mitigated Negative
Declaration for the WalkedKatella Retail Project.
The motion was unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
4 AGENCY MEMBERS: Keenan, McGill, Piercy, and McCoy
0 AGENCY MEMBERS: None
1 AGENCY MEMBERS: Sondhi
RESOLUTION NO. CRA- 104
A RESOLUTION OF THE CYPRESS REDEVELOPMENT AGENCY,
APPROVING THE MITIGATED NEGATIVE DECLARATION FOR
THE WALKER/KATELLA RETAIL PROJECT.
It was moved by Agency Board Member Piercy and seconded by Agency Board
Member Keenan, to adopt the Resolution by title only, directing and authorizing the
condemnation of certain real property in the City of Cypress, State of California, and
declaring the public necessity therefor.
Council/Agency Board Member Piercy stated this is a difficult action and decision. The
Council is representing the entire community and doing what they think is best for the
community.
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CYPRESS REDEVELOPMENT AGENCY MAY 28, 2002
Council/Agency Board Member Keenan stated it is the Council's obligation as Council
Members to see that the City is developed in a socially and fiscally responsible way.
Mayor Pro Tem McCoy stated the job of Council Members is to ensure the economic
stability, not only for today but for the future also. He stated that with the current State
budget deficit, the City must look hard at how service levels will be maintained. The City
knows, from past practice, the State will look toward cities to recoup money to pay for
current programs they don't have the money to pay for.
The motion was unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
4 AGENCY MEMBERS: Keenan, McGill, Piercy, and McCoy
0 AGENCY MEMBERS: None
1 AGENCY MEMBERS: Sondhi
RESOLUTION NO. CRA- 105
A RESOLUTION OF THE CYPRESS REDEVELOPMENT AGENCY,
DIRECTING AND AUTHORIZING THE CONDEMNATION OF
CERTAIN REAL PROPERTY IN THE CITY OF CYPRESS,
STATE OF CALIFORNIA, AND DECLARING THE PUBLIC
NECESSITY THEREFOR.
The meeting was recessed at 11:08 p.m.
The meeting was reconvened at 11:18 p.m.
Consent Calendar:
It was moved by Agency Board Member Keenan and seconded by Agency Board
Member Piercy, to approve Consent Calendar Item No. 18.
The motion was unanimously carried by the following roll call vote:
AYES:
NOES:
ABSENT:
4 AGENCY MEMBERS: Keenan, McGill, Piercy, and McCoy
0 AGENCY MEMBERS: None
1 AGENCY MEMBERS: Sondhi
Item No. 18: APPROVAL OF HELP II CONTRACT SERVICES AGREEMENT FOR
ADMINISTRATION OF LOAN SERVICING.
Recommendation: That the Cypress Redevelopment Agency authorize the Executive
Director to execute the Contract Services Agreement with AmeriNational Community
Services, Inc. for continued administration of loan servicing duties for the HELP II
Program.
ADJOURNMENT: Agency Vice Chairperson McCoy adjourned the meeting at 11:20
p.m.
VICE CHAIRPERSON OF~THE CYPRESS
REDEVELOPMENT AGENCY
ATTEST:
TAR~ OF TH~CYPRE§S
REDEVELOPMENT/~"GENCY
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