Minutes 81-01-19M]NilrfEs OF AN AI).IOURNED REf;PLAR bff]ET'IN~;
OF THE CYPRESS CITY COUNCIL
HELD
danuarv 19, 1981
Tho adjourned regular meeting of the Cypress (]Jty Council was called to urder at
7:30 p.m. on Monday, January 19, 1981 in the Administrative Conference Room of
the Cypress City Ifa]l, 5275 Orange Avenue, Cypress, California, Mayor Vickie Evans
presJ diug.
PRESENT:
ABS tNT:
to the Civic Center: (>ne from (;A ConStruction Company, and the other submitted by
Affordable Development CorporatJon for a senior citizens houslng project. The
public hearing regarding Conditions] Use Permit {/80-25 relating to GA Construction's
prop~,saJ was continued from the I)e~ember 8 meeting to this work session. The City
Manager reported that, as directed by the Council at the December 8 meeting, the
s~tati had p~-epared a preliminary appraisaJ of the property value. Staff's estimate
Mr. Robert Medearis of CA (]onstruct[on reported that their office development
proposal for the parcels fronting on Orange Avenue wou]d involve the property
owners, with the exception of Mr. Erskine, partJcLpating as partners, lie reported
the companv would request a six month escrow foF the front parcels on Orange,
and an additfona[ sJx month escrow for the parcels to the rear. He stated they
felt the interest rate in June or ~]u]v would make it feasible then to proceed
with the project. He reported their development p~oposal was for 4.73 acres,
and they planned to construct 90 to~homes ou the rear portion of the property.
Mr. Hedearis reported there were seven property o~ers at the rear of the property,
and two ~roperty owners d5d not wish to participate 5n a joint venture with GA
Constmmtion. He reported that (;A wou]d oftera toe, home at cost to the property
owners in the area. Mr. HedearJs stated GA would pay $9.00/square foot for the
parcels in the front, and $8.00/square foot for the parcels at the rear of the
deve]opment site. [{e reported they planned to begin construction at the corner of
Orange a,d Walker Street.
The City Hanager indicated that, based on CA's proposal, the City would receive
$300,000 for the sale of its parcels, in~ luding //]4, 15 and a portion o1: 12, for
the offile development; and $550,000 for tile sale of Parcels 7, 11, 22, 23 and a
portion el 12 for the condominium development. The City Manager described how
a Redevelopment Agency ou the subject property wou]d generate approximately
$100,000 per year through tax increment profit with development as proposed by GA.
He reported this revenue could be used elsewhere in the redevelopment project
area which inc]uded the Oxfurd .Ir. High School site. The City Attorney indicated
that the redevelopment plan would have to be adopted by ordinance before August
20, 1981 for the City to receive the tax increment benefit. He stated the plan
would show genera] land use designations, what property improvements are required,
a total dollar limit on tax increment, compliance w~th the California Environmental
Quality Act (CEQA), and a replacement housing program if a substantial number
of fami] ies would have to be displaced.
Representatives of Affordable 1)evelopment Corporation introduced their officers,
and a background of tbe corporation. Also present were bls. Klm Shettler of the
County Housing & Community Development Department and Mr. Jim Hayes of Supervisor
Wleder's office, blt. Fred Rotb, President of ADC, reported they are a non-profit
organization formed for the specifi~ puri)ose of providing low cost housing for
the elderlv. He reported they were invited by the Cypress seniors group to present
a proposal for Cypress and that they had prepared two design proposals for 106
affordable housing units for seniors.
City Council Minutes
January 19, 1981
Mr. Armando Vasquez, architect for ADC, described the two proposals in some detail.
Proposal A consisted of 3 acres and Proposal B consisted of 3.2 acres. He reported
that buildings nearest to the residences to the north would be two-story, and build-
ings adjacent to the future commercial development to the south would be three-story.
He described traffic circu]atlon patterns on tile plans, pedestrian access points,
and reported they would attempt to retain the trees on the property.
Mr. Reed Flory, consultant for ADC, reported that ADC expected the notice of avail-
ability of 20~/Section 8 rental subsidy funds to be announced in three to five
weeks and they would have one month to respond and present their plan. He stated
they wou~d need an indication from the City on whether it would grant ADC site
control so that they could begin negotiations with the private property o~ers.
He state~ they would need an answer from the City within the next two Co~cil
meeting dates. Mr. Flory reported that ADC's purchase of the City and privately
owned parcels would require approximately $300,000 to $400,000 of HCD block grant
funds combined with their land acquisition dollars. He indicated that Proposal
A would permit a larger purchase price per square foot for the City land; however,
both proposals would result in land purchase payments to the City significantly
less than market rate. Mr. Flory reported that if the City used its block grant
funds and own funds to purchase all of the subject property and then lease it
to ADC, HUD would pay the City approximately $30,000 to $50,000 in annual lease
payments. He stated the lease must be for a period of 55 years. Mr. Flory esti-
mated t~at if $9.00/square foot was paid for the private parcels then ADC would
be able to pay $4.00/square foot for the City parcels. Mr. Flory stated that
if ADC r~ceived the Section 8 funds commitment then they wonld he guaranteed
~02% di~ct construction financing through FHA. He stated the Civic Center prop-
erty is an excellent site for seniors housing based upon FHA standards.
The City Manager reported that the staff had been reviewing two sites which were
o~e(t by tile Cypress School District for affordable housing projects. The City
Manager suggested that ADC c}~eck the property adjacent to the Cypress School
District administrative headquarters at Moody and Orange and the property on
Crindlay Street at the old Cypress Elementary School site to determine whether
they would be appropriate for tl~e seniors housing project.
Councilman Lacayo stated ~le supported a seniors housing project on the Civic
Center property and felt it was a choice spot because of amenities in the area.
Councilman Mullen stated he also supported the Civic Center site for the seniors
housing project. Councilman Rowan stated he did not support the ADC proposal
and felt it would perpetuate some of the problems at the Civic Center site. He
stated ht~ did not like the deadlines associated with ADC's proposal and he felt
quick action by the Council relative to the property would be detrimental to the
City. He also recommended that the Council pursue development of zoning codes
and standards for seniors housing and determine appropriate areas which may be
zoned for t[~is purpose. Councilman Rowan stated he supported pursuing a redevel-
opment project to establish a sound tax base prior to considering private develop-
ment proposals. Mayor Evans also stated she supported proceeding with a redevel-
opment plan and implementing it by August 20.
Councilman Lacayo requested that staff prepare a report analyzing the purchase and
lease options, possibility of a joint venture, and the possibility of reducing the
scope of the ADC proposal. The Council further requested representatives of
Affordable Development Corporation to meet with Mr. Calton of the School District
relative to the school district properties. ADC representatives agreed to meet
with Mr. Calton. Mayor Evans requested that staff prepare a financial analysis
of the redevelopment project proposal. She suggested that the Council hold another
study session with ADC following their meeting with Mr. Calton.
It was moved by Councilman Lacayo, seconded by Councilman Coronado and unanimously
carried to continue the public hearing regarding Conditional Use Permit #80-25,
office condominiums, 5401 - 5481 Orange Avenue, to the February 23 Council meeting.
RECESS: Mayor Evans called a recess at 10:15 p.m. The meeting was called back
to order at 10:25 p.m. with all Councilmembers present.
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City Council Minutes
January 19, 1981
Mayor Evans requested that the City Council reconsider their action taken at the
January t2 meeting to initiate annexation of the Cypress Islands. She reported
this issue was discussed at the January 17 ~layors' meeting where concern was
expressed by the Mayor of La Palma over annexation of the County islands and its
relationship to fire service costs. The Council agreed to reconsider this matter
at the ,Ianuary 26 Council meeting.
Councilman Coronado reported that the Board of the Anaheim Union High School
District would hold a hearing on Thursday, January 22, at 7:30 p.m. regarding
the Oxfo~-d school site. The Council requested the City Manager to prepare a
letter f~r Councilman Coronado to present to the Board on January 22 expressing
the Council's desire for a meeting with the Board.
EXECUTIVE SESSION: Mayor Evans called an executive session at 10:40 p.m. to
discuss matters of personnel. The meeting was called back to order at 11:03 p.m.
with al: Councilmembers present.
ADJOURNb~NT: Mayor Evans adjourned the meeting at 11:04 p.m.
20, at 7:00 p.m. in the Administrative Conference Room.
to Tuesday, January
MAYOR OF THE CI~TY OF CYPRESS
A[TE, T:
CITY CLERK OF THi~C~II ~ OF (:XPRESS
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