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Minutes 2003-02-24(1:00 p.m.) MINUTES OF AN ADJOURNED SPECIAL MEETING OF THE CYPRESS CITY COUNCIL HELD February 24, 2003 The adjourned special meeting of the Cypress City Council/Redevelopment Agency was called to order at 1:03 p.m. by Mayor/Agency Chair McCoy in the Council Chambers, 5275 Orange Avenue, Cypress, California. PRESENT: Council Members/Agency Board Members McGill, Piercy, Mayor Pro Tem/Agency Vice Chair Keenan, Mayor/Agency Chair McCoy ABSENT: Council Member/Agency Board Member Sondhi Also present were City Manager, City Attorney, Agency Counsel, Director of Finance and Administrative Services, Community Development Director, Chief of Police, Public Works Director, Recreation and Community Services Director, Assistant to the City Manager, Assistant Community Development Director, and City Clerk. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Mayor Pro Tem/Agency Chair Keenan. INVOCATION: The invocation was given by City Attorney Wynder. JOINT SPECIAL MEETING WITH THE CYPRESS REDEVELOPMENT AGENCY The City Attorney reported that the City Council would be meeting in a Joint Closed Session with the Redevelopment Agency regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9 (a), Cottonwood Christian Center v. Redevelopment Agency of the City of Cypress, Case Number SA02-60, United States District Court – Central District of California, Case Number 02CC01575, Orange County Superior Court – Central Justice Center (Removed to Federal Court), Case Number SA02-149, United States District Court – Central District of California. The City Attorney reported that the Redevelopment Agency would be meeting in Closed Session regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8, Real Property Identified by APN Numbers 241-091-19, 241- 091-20, 241-091-21, 241-091-22, 241-091-23, 241-091-24, 241-091-25, 241-091-26, 241-091-27, 241-091-28, 241-091-29, 241-091-30, 241-091-33, 241-091-34, 241-091- 36, 241-231-24, 241-231-25, 241-231-26, and 241-231-28; Consisting of approximately 75 Acres at Northwest corner of Katella Avenue and Walker Street within the Los Alamitos Race Track and Golf Course Redevelopment Project Area, Negotiating Party: Executive Director, Deputy Executive Director, and Agency Counsel, Under negotiation: Price and Terms of Payment. The meeting was recessed at 1:07 p.m. to Closed Session. The meeting was reconvened at 1:26 p.m. The City Attorney reported that the Council met in a Joint Closed Session with the Redevelopment Agency regarding Conference with Legal Counsel – Existing Litigation, pursuant to Government Code Section 54956.9 (a), Cottonwood Christian Center v. Redevelopment Agency of the City of Cypress, Case Number SA02-60, United States District Court – Central District of California, Case Number 02CC01575, Orange County Superior Court – Central Justice Center (Removed to Federal Court), Case Number SA02- 149, United States District Court – Central District of California. The City Attorney stated legal counsel briefly reviewed with the Council/Agency the operative terms and conditions CITY COUNCIL MINUTES FEBRUARY 24, 2003 and the legal affect of that certain Settlement and Mutual Release Agreement, which will be considered and potentially acted upon by the Council and Agency in public session. The City Attorney reported that the Redevelopment Agency met regarding Conference with Real Property Negotiators, pursuant to Government Code Section 54956.8, Real Property Identified by APN Numbers 241-091-19, 241-091-20, 241-091-21, 241-091- 22, 241-091-23, 241-091-24, 241-091-25, 241-091-26, 241-091-27, 241-091-28, 241- 091-29, 241-091-30, 241-091-33, 241-091-34, 241-091-36, 241-231-24, 241-231-25, 241-231-26, and 241-231-28; Consisting of approximately 75 Acres at Northwest corner of Katella Avenue and Walker Street within the Los Alamitos Race Track and Golf Course Redevelopment Project Area, Negotiating Party: Executive Director, Deputy Executive Director, and Agency Counsel, Under negotiation: Price and Terms of Payment. The City Attorney stated staff and legal counsel reviewed and summarized, and provided a status report on the legal affect and implications of that certain Agreement for Purchase and Sale of Real Property by and between the Agency and Cottonwood Christian Center. No action was taken in Closed Session, nor was any solicited. ORAL COMMUNICATIONS: LIMITED TO ONE-HALF HOUR. (THREE MINUTES PER SPEAKER, SPEAKING ONCE.) Pete Kinnahan, Cypress Residents for Planned Community Development, thanked the City Council, City staff, citizens, and Cottonwood Christian Center leadership for their diligent efforts in securing a mutually acceptable agreement between the City, Redevelopment Agency, and Cottonwood Christian Center. CYPRESS REDEVELOPMENT AGENCY MATTERS: New Business: Item No. 1: APPROVAL OF AGREEMENT FOR THE PURCHASE OF REAL PROPERTY BETWEEN THE CYPRESS REDEVELOPMENT AGENCY AND COTTONWOOD CHRISTIAN CENTER. The City Manager stated that a joint presentation would be made for Item No. 1 and No. 2. The Community Development Director provided background information on Item No. 1 and No. 2. The City Attorney summarized the Settlement Agreement and Mutual Release between the City, Agency, and Cottonwood Christian Center. The City Attorney stated the three lawsuits are, in essence, put on hold subject to the closing of escrows and the obtaining of entitlements by Cottonwood Christian Center to develop the new site and following the expiration of any period to challenge those new developments. Following the completion of those events, the lawsuits that are identified in the Settlement Agreement will be dismissed with prejudice with both parties bearing their own costs and attorneys fees and mutual and general releases. The lawsuits will not be finally dismissed until all of the conditions of the Purchase and Sale Agreement are satisfied. Agency Vice Chair Keenan thanked Cottonwood Christian Center and City staff for all of their hard work during this process. Agency Board Member McGill also thanked City staff, Cottonwood Christian Center, and members of the community. It was moved by Agency Vice Chair Keenan and seconded by Agency Board Member Piercy, to review the Agreement for the Purchase of Real Property for the Agency’s 2 CITY COUNCIL MINUTES FEBRUARY 24, 2003 acquisition of the approximately 18-acre site owned by Cottonwood Christian Center at the northwest corner of Walker Street and Katella Avenue, and adopt the Resolution by title only, approving the Agreement for the Purchase of Real Property between the Agency and Cottonwood Christian Center. The motion was unanimously carried by the following roll call vote: AYES: 4 AGENCY MEMBERS: McGill, Piercy, Keenan and McCoy NOES: 0 AGENCY MEMBERS: None ABSENT: 1 AGENCY MEMBERS: Sondhi Agency Board Member Sondhi did not participate in the discussion, nor was she present in the Council Chambers due to her ownership of property in the project area, as per Government Code Section 87105. RESOLUTION NO. CRA-108 A RESOLUTION OF THE CYPRESS REDEVELOPMENT AGENCY, APPROVING AN AGREEMENT FOR THE PURCHASE AND SALE OF REAL PROPERTY BY AND BETWEEN THE AGENCY, AS BUYER, AND COTTONWOOD CHRISTIAN CENTER, INC., AS SELLER, OF AN APPROXIMATELY 18-ACRE PARCEL LOCATED IN THE CITY OF CYPRESS AT THE NORTHWEST CORNER OF WALKER STREET AND KATELLA AVENUE WITHIN THE LOS ALAMITOS RACE TRACK AND GOLF COURSE REDEVELOPMENT PROJECT AREA. CITY OF CYPRESS AND CYPRESS REDEVELOPMENT AGENCY ITEMS: New Business: Item No. 2: APPROVAL OF THE SETTLEMENT AGREEMENT AND MUTUAL RELEASE AGREEMENT WITH COTTONWOOD CHRISTIAN CENTER. It was moved by Mayor Pro Tem/Agency Vice Chair Keenan and seconded by Council Member/Agency Board Member McGill, to approve the Settlement and Mutual Release Agreement (the “Agreement”) by and between Cottonwood Christian Center, a non- profit religious corporation, the City of Cypress, a charter city and municipal corporation (the “City”), and the Cypress Redevelopment Agency, a public body, corporate and politic, and political subdivision of the State of California (the “Agency”), and authorize the Mayor and the Agency Chair to execute the same on behalf of the City and the Agency. The motion was unanimously carried by the following roll call vote: AYES: 4 COUNCIL/AGENCY MEMBERS: McGill, Piercy, Keenan and McCoy NOES: 0 COUNCIL/AGENCY MEMBERS: None ABSENT: 1 COUNCIL/AGENCY MEMBERS: Sondhi Council Member/Agency Board Member Sondhi did not participate in the discussion, nor was she present in the Council Chambers due to her ownership of property in the project area, as per Government Code Section 87105. Mayor/Agency Chair McCoy stated that this was a long process with both sides taking on some posturing, but he always felt both sides wanted a win-win solution, which is what today’s action provides. He stated that as Council Members, it is their responsibility to look out for all of Cypress, and the Council, through their actions, did that. Cottonwood needs a church to fulfill their requirements with a facility big enough for their entire congregation to meet. He stated that the Council views Cottonwood as partners in the community and welcomed them to Cypress. 3 CITY COUNCIL MINUTES FEBRUARY 24, 2003 ORAL COMMUNICATIONS: LIMITED TO ONE-HALF HOUR. (THREE MINUTES PER SPEAKER, SPEAKING ONCE.) None. The meeting was recessed at 1:50 p.m. to the Media Briefing at the 18-acre site located at the Northwest corner of Walker Street/Katella Avenue. The meeting was reconvened at the Media Briefing at 2:30 p.m. ADJOURNMENT: Mayor/Agency Chair McCoy adjourned the meeting at 2:45 p.m., to Monday, February 24, 2003, beginning at 5:00 p.m. in the Executive Board Room, 5275 Orange Avenue, Cypress, California. ____________________________________ MAYOR OF THE CITY OF CYPRESS ATTEST: ___________________________________ CITY CLERK OF THE CITY OF CYPRESS 4