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Resolution No. 5463 1- RESOLUTION NO. 5463 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS ADOPTING WRITTEN RESPONSES TO WRITTEN OBJECTIONS ON THE SECOND AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE LOS ALAMITOS RACE TRACK AND GOLF COURSE REDEVELOPMENT PROJECT AREA AND THE NEGATIVE DECLARATION PREPARED IN CONNECTION WITH THE SECOND AMENDMENT WHEREAS, the City Council of the City of Cypress ("City" or "City Council"), on June 18, 1990, adopted Ordinance No. 851 approving and adopting the Redevelopment Plan ("Plan") for the Los Alamitos Race Track and Golf Course Redevelopment Project Area ("Project Area"); and WHEREAS, the City Council, by Ordinance No. 952 adopted on January 9, 1995, amended the Plan to conform the Plan to the requirements of Assembly Bill 1290 as codified in Health and Safety Code Section 33333.6 ("First Amendment"); and WHEREAS, the Plan as amended by the First Amendment is hereinafter referred to as the "Redevelopment Plan;" and WHEREAS, the Cypress Redevelopment Agency, a public body, corporate and politic, organized and existing under the Community Redevelopment Law (Health & Safety Code § 33000 et seq.) ("CRL"), has proposed to the City Council the Second Amendment to the Redevelopment Plan ("Second Amendment") for the purpose of extending the Agency's eminent domain authority under the Redevelopment Plan for twelve years, amending the Land Use section of the Plan to provide that land uses within the Project Area shall be in conformity with the City's General Plan, as it exists today or is hereafter amended, and making nonsubstantive textual changes to the Plan to update Plan language consistent with the CRL, which Second Amendment is presented in the form of an Amended and Restated Redevelopment Plan; and WHEREAS, on March 26, 2001, the Agency and City Council held a joint public hearing, duly noticed and held in accordance with applicable law, on the proposed Second Amendment to the Redevelopment Plan; and WHEREAS, at or prior to the time of the joint public hearing, the City Council received three written objections to the adoption of the Second Amendment, which written objections were from (1) Jonathan C. Curtis, an attorney with the law firm of Sheppard, Mullin, Richter & Hampton LLP, 333 South Hope Street, 48th Floor, Los Angeles, CA 90071-1448, representing Cottonwood Christian Center, (2) Robert K. Hillison, an attorney with the law firm of Caswell, Bell & Hillison LLP, Post Office Box 5259, Fresno, California 93755-5259, representing Los Alamitos Race Course, and (3) Alice B. Jempsa, Mayor of the City of Los Alamitos, 1391 Katella Avenue, Los Alamitos, CA 90720-5600, on behalf of the City Council of the City of Los Alamitos and the City of Los Alamitos; and WHEREAS, the CRL requires that prior to the adoption of a redevelopment plan amendment that the City Council respond in writing to any written objections received by adopting written responses to the written objections; and WHEREAS, following the closure of the March 26, 2001 joint public hearing of the Agency and City Council, the proposed adoption of the Second Amendment and proposed approval of the negative declaration prepared in connection with the Second Amendment, were continued to the April 9, 2001, Agency and City Cou. cil meetings, to permit the City Council to consider the written objections and to permit the ;valuation of the written objections and the preparation of written responses to the written objections; and WHEREAS, at the April 9, 2001, Agency and City Council meetings, the foregoing items for consideration were further continued to permit the further evaluation of the written objections and the preparation of written respo ,ses to the written objections; and WHEREAS, the City Council has re'sewed, evaluated, and fully considered the Report to Council prepared by the Agency in connecticn with the Second Amendment and submitted to the City Council and all other oral and written staff reports and information presented, all evidence and testimony for and against the adoption of the Second Amendment, and all objections to the adoption of the Second Amendment, including the t:aree written objections; and WHEREAS, written responses to the three written objections received to the Second Amendment have been prepared and have been fully reviewed, evaluated, and considered by the City Council; NOW, THEREFORE, the City Council of the City of Cypress does hereby resolve as follows: 1. The Recitals set forth above are true and correct and are incorporated herein as though fully set forth and are made a part hereof. 2. The City Council has reviewed, evaluated, and fully considered the three written objections to the Second Amendment received at or prior to the joint public hearing, which objections are set forth in Exhibit "A" hereto, and the City Council hereby finds and determines that such objections are without merit and are hereby overruled for the reasons detailed in the written responses to these three written objections set forth in Exhibit "B" hereto. The written responses attached hereto as Exhibit "B" are hereby adopted as the written findings of the City Council in response to the three written objections received. All oral and written objections to the Second Amendment received at or prior to the joint public hearing are hereby overruled. 3. The City Clerk is hereby directed to transmit, by prepaid first class mail, a certified copy of this Resolution, including Exhibit "A" and Exhibit "B", to Jonathan C. Curtis, Robert K. Hillison, and Mayor Alice B. Jempsa, at their respective addresses. PASSED, APPROVED, AND ADOPTED this 27th day of August, 2001. 74/ A\ MAYOR OF THE CITY OF CYPRESS ATTEST: S� • 111• Y CLERK OF T CITY OF CYPRESS STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS I, JILL R. INGRAM-GUERTIN, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 27th day of August, 2001, by the following roll call vote: AYES: 4 COUNCIL MEMBERS: Keenan, McCoy, Piercy, and McGill NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 1 COUNCIL MEMBERS: Sondhi (Mayor Pro Tem Sondhi did not participate in this action due to her ownership of property in proximity to the project area.) • ■ 6. 1,-11 - ITY CLERK OF T:i CITY OF CYPRESS -2- 3 EXHIBIT "A" COPIES OF THREE WRITTEN OBJECTIONS TO SECOND AMENDMENT RECEIVED BY AGENCY AND CITY COUNCIL [SEE FOLLOWING PAGES] SHEPPARD, MULLIN, RICHTER & HAMPTON LLP .a .•co a.wo.a.•..w.• •.•«caua«o w«wa cowro•■••o«• ATTORNEYS AT LAW FORTY-EIGHTH FLOOR 333 SOUTH HOPE STREET LOS ANGELES,CALIFORNIA 90071-14-48 WRITERS DIRECT LINE TELEPHONE (2131 620-1780 OUR FILE NUMBER (213)617-5565 FACSIMILE (2131 620-1398 WXH-67327 jcurtis@smrh.com March 26, 2001 HAND DELIVERED City Council of the City of Cypress City of Cypress 5275 Orange Avenue Cypress, California 90630 Re: City of Cypress City Council Public Hearing on Monday. March 26, 2001, Agenda Item Nos. 4. 11 and 12.to Consider the Second Amendment to the Redevelopment Plan for the Los Alamitos Race Track (LART) and Golf Course Redevelopment Project Area(the "Amendment") and Certification of the Negative Declaration. Honorable Mayor Piercy and Members of the City Council: This Firm represents the Cottonwood Christian Center("Cottonwood"),the owner of approximately 17.9 acres of real property("Cottonwood Property")at the northwest corner of Katella Avenue and Walker Street within the Los Alamitos Race Track and Golf Course Redevelopment Project Area(the "Los Alamitos Redevelopment Area"). As you know,Cottonwood and representatives of the City of ("City")and the City of Cypress Redevelopment Agency("Agency") have had numerous discussions regarding developing a mutually acceptable planning scheme for the redevelopment of a portion of the Los Alamitos Race Track and Golf Course Redevelopment Project Area (the "Project Area"), and Cottonwood remains enthusiastic and committed to working with the City and the Agency to do so. As a result, our client feels that the proposed Amendment to the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Redevelopment Project Area (the "Redevelopment Plan") is premature. Based on the fact that Cottonwood, the City and the Agency are still in discussions to develop alternative planning scenarios for the Project Area and no definitive redevelopment plan as been established, it seems likely that additional amendments to the Redevelopment Plan may be necessary or desirable. Accordingly,Cottonwood hereby requests that this hearing on the Amendment be continued to,among other things,allow Cottonwood,the City,the Agency and others additional time to formulate a mutually acceptable redevelopment project. However, in the event that the City Council conducts the hearing on the Amendment,our client has certain comments,objections LOS ANGELES ■ ORANGE C OU N T Y • SAN DIEGO • SAN FRANCISCO A-4 • • • ■ • • 5 SHEPPARD, MULLIN, RICHTER & HAMPTON LLP City Council of the City of Cypress March 26, 2001 Page 2 and concerns with respect to the Amendment which are set forth below,in particular the language contained in the Amendment as to the legitimacy of future changes in land uses for the Project Area. California Health and Safety Code Section 33333 provides that a redevelopment plan must, among other things, include"[1]imitations on type, size,height, number,and proposed use of buildings? In this regard, the proposed Amendment to the Redevelopment Plan provides at Section 401 the following: "[t]he land uses permitted by this Plan shall be those permitted by the General Plan and Zoning Ordinance ... as they exist now or are hereafter amended? Section 410 of the proposed Amendment also provides the following: "[t]he limits on building intensity, type, size and height, shall be established in accordance with the provisions of the General Plan, the applicable zoning ordinances ... as they now exist or are hereafter amended." As noted above, the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.)(the"redevelopment Law"),requires that the permitted uses in a redevelopment plan area must be set forth with some amount of specificity. Here,the Agency is not only proposing to incorporate existing uses but also any future changes in uses that occur in future amendments to the General Plan or applicable zoning ordinances by relying upon the general language of "or are hereafter amended? This language does not conform with the specificity requirements of Redevelopment Law and will also effectively allow the City and the Agency to circumvent the law by not requiring the Agency to follow applicable amendment procedures for an amendment of the Redevelopment Plan to account for any future changes in permitted uses in relevant zoning and planning documents. Provisions such as these in a redevelopment plan that purport to automatically amend the redevelopment plan when a General Plan or zoning is changed are ultra vices. Redevelopment Law has specific provisions and mandates that procedures be followed for the amendment of redevelopment plans. For example, under California Health and Safety Code Section 33450, an amendment can only be done by ordinance,and there are extensive notice and hearing requirements under Health and Safety Code Sections 33452-33455. With the Amend- ment,as proposed, the City and the Agency will be able to effectively amend the Redevelopment Plan without having to follow any of the provisions set forth above. This is in violation of Redevelopment Law and should not be allowed by this City Council. Moreover, Redevelopment Law establishes a twelve (12) year time limit for a governmental agency to exercise its power of condemnation in the project area,which time limit can only be extended by an amendment to the redevelopment plan. Cal.Health and Safety Code §33333.2(a)(4). In connection with this power of condemnation,the governmental agency must find the existence of both physical and economic blight. Cal. Health and Safety Code § 33031. Here, the Agency made the requisite findings of blight approximately twelve years ago. Now, without undertaking any additional"blight"study and making any new findings of blight,the City and the Agency propose to extend the power of condemnation for an additional twelve(12)years. A-5 6 . SHEPPARD, MULLIN, RICHTER & HAMPTON LLP City Council of the City of Cypress March 26, 2001 Page 3 This is not right. Rather, when establishing this time limit, the Legislature intended that after twelve years of redevelopment, substantial progress would have been made to ease the blighting conditions that burdened the area at the time the original plan was adopted. Thus, if an agency chooses to extend its powers of condemnation for an additional term,at a minimum, a new blight study must be prepared and new findings of blight must be made to justify the extension. Under the current circumstances, however, neither the City nor the Agency has done so, which violates Redevelopment Law. Finally,we received a copy of a letter from Caswell Bell&Hillison LLP,attorneys for Los Alamitos Race Course, to the City dated March 19, 2001 with respect to his client's objections and concerns to the Negative Declaration. We hereby concur with those objections. CONCLUSION Given the foregoing, on behalf of Cottonwood, we hereby request that the City Council reject the proposed amendment to the Redevelopment Plan at this time for being both premature and in violation of Redevelopment Law. Should the City Council proceed, however, Cottonwood requests that after public comment and testimony, the City Council postpone the hearing on the proposed Amendment(i) to allow the parties to continue their discussions with respect to a mutually agreeable development plan for the Project Area and(ii)to provide the City and the Agency with sufficient time to comply with Redevelopment Law as provided above. Ve ly; •urs, Ig- Jon. - • . Curtis for SHEPPARD, MULLIN, RICHTER&HAMPTON up IALCC\[EMVX11170277243.1 cc: City Clerk Patrick P. Importuna, City Manager Bill Wynder, Esquire, City Attorney Pastor Bayliss Conley Rev. Mike Wilson Mr. Mel Malkoff Marsh Tanner, Esquire • • • • A-6 7 CASWELL BELL & HILLISON LLP ATTORNEYS AT LAW POST OFFICE BOX 5259 G. THOMAS CASWELL. JR. JAMES M. BELL FRESNO, CALIFORNIA 93755-5259 ROBERT K. HILLISON RAN GOLF KRBECHEK 5200 NORTH PALM AVENUE TELEPHONE 559.225.6550 HAGOP T. BEDOYAN OEANNA K. JENSEN SUITE 211 FACSIMILE 559.225.7912 BRIAN K. CUTTONE FRESNO. CALIFORNIA 93704-2228 www.casweilbell.com OF COUNSEL 1. RUSSELL HOSE :OBERT O. CROSSLAND March 19, 2001 MA JEAN HARVEY L BY FEDERAL EXPRESS Mr. Doug Hawkins, AICP City of Cypress 5275 Orange Avenue - Cypress, CA 90630 Re: Initial Study dated February 28, 2001 Second Amendment to the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Redevelopment Project Area Dear Mr. Hawkins: We are attorneys for Los Alamitos Race Course and, on behalf of our client, we submit herewith our comments to the above-referenced Initial Study. For the reasons set forth herein, we object to the recommendation that a Negative Declaration for the project should be adopted, and request that the City of Cypress Redevelopment Agency ("Agency"), as the lead agency, reject the recommendation and direct that an Environmental Impact Report("EIR") be prepared. The Initial Study's fundamental defect is that it does not take into account the proposed Cypress Town Center Master Plan Project("Town Center Project") which is described in the City of Cypress Proposed Town Center Master Plan attached hereto. As of the date hereof, the Agency has taken substantive steps to implement the Project: the Agency has developed a comprehensive description of the Town Center Project, it has obtained a restaurant feasibility study, it has requested Statements of Interest in participating in the Town Center Project from owners of property in the Los Alamitos Race Track.and Golf Course Redevelopment Project Area("LART Project Area"), and a moratorium on development in the LART Project Area which will not expire until September, 2001, has been adopted. The fact that the Initial Study does not consider the Town Center Project constitutes a fatal flaw in the environmental analysis and, therefore, A-7 • • • 8 . Mr. Doug Hawkins, AICP March 19, 2001 Page 2 the recommendation that a Negative Declaration be adopted instead of preparing an EIR as required by the California Environmental Quality Act("CEQA") must be rejected. In its preparation of the Initial Study, the City of Cypress ("City") has violated its own Guidelines for Evaluation of Environmental Impacts contained in Section 3.3 of the Environmental Checklist Form. For example, Section 3.3(2) states that, "All answers must take account of the whole action involved, including off-site as well as on- site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts." The City's analysis in the Initial Study mores the Town Center Project as if it does not exist and fails to take into account any of the impacts of the Town Center Project. Section 3.3 of the Environmental Checklist Form requires a finding of a "Potentially Significant Impact" if the lead agency lacks information to make a finding of insignificance. Throughout the Initial Study, the City has stated that information is unknown but, contrary to the Guidelines for Evaluation of Environmental Impacts, has concluded that there will be no significant impact. Examples are found in Section 4.4(b) with respect to riparian habitats or sensitive natural communities; Section 4.4(d)with respect to wildlife corridors or native wildlife nurseries; Section 4.5(c)with respect to paleontological resources; Section 4.5(d) with respect to human remains; and Section 4.10(a)with respect to mineral resources. A project is an activity that may cause a direct(or reasonably-foreseeable indirect) physical environmental change. Throughout the Initial Study, the City states that the extension of the Agency's power of eminent domain will not"directly" impact the environment. The only reasonable inference from this statement is that the City concedes that the project(e.g., extension of the Agency's authority to condemn in the LART Project Area) will have a reasonably-foreseeable indirect significant impact on the environment. Throughout the Initial Study, there are explicit statements that issues will be handled in the future, a concession that there will be significant impacts from the Town Center Project. Many of the findings of"No Impact" are rationalized by statements that "no development is proposed." Considering only the steps that the Agency has taken to date with respect to the Town Center Project, such a statement is disingenuous, at best, or untrue, at worst. Throughout the Initial Study, the City admits that despite the fact that a certain concern may exist, because of the too narrow definition of"project," the City concludes (erroneously) that there will be no impact. --' A-8 • • • • • 9 Mr. Doug Hawkins, AICP March 19, 2001 Page 3 CEQA requires that the timing of environmental analysis begin at the earliest practicable time. A lead agency is prohibited from dividing a project into small components which, by themselves, may not have a significant effect on the environment. That is consistent with the CEQA Guidelines and the requirement of the Guidelines for Evaluation of Environmental Impacts contained in Section 3.3 of the Environmental Checklist Form used by the City in analyzing the project. If a governmental activity is a necessary first step in a chain of events which would culminate in physical impact on the environment, to comply with CEQA an EIR is required. If the proposed Town Center Project is included in the analysis, there are potentially-significant impacts with respect to, among other things, Aesthetics (Sections 4.l(c)and (d)), Air Quality (Sections 4.3(a)-(e)), Geology (Sections 4.6(a), (b) and (e)), Hazards (Section 4.7(g)), Hydrology (Sections 4.8(a), (c), (e) and(f)), Land Use(Section 4.9),Noise(Sections 4.11(a), (c) and (e)), Public Services (Section 4.13), Recreation (Section 4.14(a)), Traffic (Sections 4.15(a), (b), (e), (t) and(g)), and Utilities (Section 4.16). Therefore, the Mandatory Findings of Significance in Section 4.17 must be amended to show potential significant impacts will result and that an EIR is required. Taking Land Use as one example, the applicable Specific Plan designates the LART Project Area for use as a business park, golf course and race track. A review of the description of the Town Center Project(attached hereto) leads to the conclusion that changes in the Specific Plan, land use designations and zoning are necessary to implement the proposed Town Center Project. Because we know that today, an EIR is required now. The extension of the Agency's authority to condemn property in the LART Project Area is a necessary step in the chain leading to development of the Town Center Project; it represents a commitment by the Agency to the Town Center,Project because, without authority to condemn property in the LART Project Area, the Agency will not be able to proceed with it. The extension of the Agency's power of condemnation is not merely a step that does not necessarily lead to development because, without such authority, the Agency will be unable to proceed with the Town Center Project; there is a direct causal link between extension of the Agency's authority to condemn and development of the Town Center Project. A-9 • • 10 Mr. Doug Hawkins, AICP March 19, 2001 Page 4 The analysis required by CEQA must be integrated with the analysis required by the Community Redevelopment Law. For example, to amend the Redevelopment Plan for the LART Project Area and extend the Agency's power of eminent domain, the Agency must find that the LART Project Area is blighted within the meaning of the Community Redevelopment Law and, if found to be blighted, how the proposed Town Center Project will impact the LART Project Area. Since a finding of blight under the Community Redevelopment Law includes a physical component, CEQA is implicated and the in-depth analysis that is possible only in an EIR is required; blight cannot simply be assumed. If the Agency's authority to condemn property in the LART Project Area is extended without environmental analysis, all future Town Center Project analysis will assume that the Agency has the power of eminent domain for an additional twelve years, to 2014. Because the Agency cannot implement the proposed Town Center Project without the authority to condemn property in the LART Project Area,the extension of its authority is the necessary linchpin upon which the Agency's ability to proceed with the Town Center Project depends. Accordingly, an EIR is required. On behalf of Los Alamitos Race Course,we respectfully request that the Agency reject the recommendation that the Negative Declaration be adopted and, instead, direct the City to prepare an EIR. ery truly yo Robert K. Hillison RKH/ch Attachment c: Los Alamitos Race Course A-l0 • 11 EXHIBIT "B" City of Cypre Proposed Town Center Masterplan �( The Los Alamitos Race T9rack d Golf Course Redevelopment Project Area Includes a vacant frontage area of 35 to •5 acres. which is envisioned as the site for a Cypress Town Center development. • rrently this land area is in multiple private ownership and stretches from Walker.S •• t to the east to the Cypress Golf Course to the west along Kat+elia Avenue. The • •st westerly area is anticipated for a potential hotel development. Based upon the results of a •• rkct and feasibility study aimed at a restaurant row development scenario, the stn • goals and objectives of the City's Strategic Plan and the opportunity that :exists .to create a significant development to serve the City of Cypress at thie key location, •. City Council/Redevelopment Agency has directed staff to proceed with the devcl• • .•-• of a Town Center Masterplan. The Town Center will need to • orporate a tenant mix with two or three larger anchor rstallets/entertaiumcnt uses :to create the necessary synergy to draw a cross mix of consumers to shop the pro jot• along with drawing the additional quality retailers to augment the anchor tenant mix Examples of other canter of various sizes are: Long Beech Town Center.Irvisst kctplace and Aliso Viejo Town Center. While the exact tenant mix w be dependent upon specific marketing efforts, it is anticipated that the coznponen : of the Tow** Center could Include the following types and scale of uses: • Major anchor of. .. •roximetely 130,000 - 160,000 square feet - discount • warehouse.type user which generates over $150,000,000 in annual taxable sales. • Soft goods retailer •or of approximately 60,000 - 80,000 square feet, which generates ov $30,000,000 in annual taxable sales, • Upscale health elu. of approximately 40.000 square feet, which draws restaurants. • Multiplex theater •or of approximately 80,000 square feet or another similar . • .. . • oriented use, which draws restaurants and shops. • Office supply user f approximately 25,000 square feet, which generates • over $5,000,000 In .ual taxable sales. • Soft goods related • domestics/Iinens concept of approximately 40,000 square feet, which • • •tog over$7,000.000 in annual taxable sales. • Three to five, 5,000 - 10,000 square foot restaurant pads. • Take out/food court • • pt of approximately 15,000 square feet with dining patio type atmosp• - • Specialty grocery • approximately 15,000 - 30.000 square feet. which generates over $15.. •1,000 in annual sales (estimate that 35% is taxable). Page 1of2 A-11 • • a • 12 EXHIBIT "B" The Town Center Ucvelopm t is envisioned as complimenting the existing Los Alamitos Race Track and.Cyp ess Golf Course. The precise northern boundary for the Town Center will need au co Ada- the parking needs of the Los Alamitos Race Track and be sensitive to mainta•• ig views of the race track facility. The proposed hotel development may procoed ah• • separately under separate ownership, but needs to be incorporated into the design a • site pluming stages of the Town Center development. The Town Center develops:le t shall strive to provide mutually beneficial linkages to the Los Alamitos Race Tuck the Cypress Golf Course and future hotel to reinforce the synergistic relationship be.• ecn these customer serving land uses. • • r Page 2 of 2 A-12 • • a 13 CITY OF LOS ALAMITOS March 21, 2001 p-b The Honorable Mike McGill • = ; City of Cypress r _ . , trr y 5275 Orange Ave. 'J • , e��� Cypress, CA 90630 J••.i 101 V. Dear Mayor McGill: „la, The City of Los Alamitos has had an exceptional relationship with the City of Cypress for 0hce ts.Jemoso many years, and we believe that the relationship can and will continue. However, we Council Members have an issue which must be brought to your attention, and that is Cypress' interest to 2onald Bates 4rtnur oeBolt develop commercial and retail uses on the Los Alamitos Race Track and Golf Course Kenneth C.Porker Marilynn M.Poe Redevelopment Project Area. City Manager: Robef1 C.Dominguez Our respective City Managers and City Attorneys have met and discussed the concerns of the City of Los Alamitos, which essentially are over increased traffic. While we believe that these meetings have been beneficial and that they will continue, the City Council has met and asked that this letter be drafted and directed to your office. Pursuant to your notice regarding the proposed second amendment to the Redevelopment Plan, we voice our objection to the extension of eminent domain if it will be used to directly, or indirectly, eliminate potential uses which could provide the residents of Los Alamitos with genuine traffic mitigation on Katella. The City further objects to any change in the Redevelopment Plan, or the extension of eminent domain, that could modify or exclude uses that are currently permitted and which would result in a reduction in traffic on Katella compared to other alternative developments. Your notice indicates that the second amendment to the Plan would be considered at your March 26,2001 joint meeting of the City Council and the Redevelopment Agency. Accordingly, we are raising our objection at this time. The City of Los Alamitos also requests prior notice before your City Council or Planning Commission considers future development options at the the Race Track property, and we would appreciate being part of those discussions. It is the desire of the City of Los Alamitos to continue to work cooperatively with Cypress on the Race Track development, and become part of the solution that would address the needs of the City of Cypress and the concerns of the City of Los Alamitos. 3191 Katella Avenue Los Alamitos,CA 90720-5600 Sincerely, Telephone: (562)431-3538 CITY OF LOS ALAMITOS FAX(562)493-1255 www.Ci.Los•A arnitos.CA.US ALICE B. JEM Mayor ® RECYCLABLE A-13 a :ti 14 EXHIBIT "B" WRITTEN RESPONSES TO WRITTEN OBJECTIONS I. LETTER FROM JONATHAN C. CURTIS, ATTORNEY, LAW FIRM OF SHEPPARD, MULLIN, RICHTER & HAMPTON LLP, REPRESENTING COTTONWOOD CHRISTIAN CENTER The City Council, received a three-page letter, dated March 26, 2001, from Jonathan C. Curtis, attorney with the law firm of Sheppard, Mullin, Richter & Hampton LLP, 333 South Hope Street, 48th Floor, Los Angeles, CA 90071-1448, representing Cottonwood Christian Center ("Cottonwood"). A copy of Mr. Curtis' letter is included in Exhibit "A" to this Resolution. Mr. Curtis' letter states that Cottonwood is the owner of approximately 17.9 acres of real property at the northwest corner of Katella Avenue and Walker Street, defined in his letter as the "Cottonwood Property." The described real property is within the boundaries of the Los Alamitos Race Track and Golf Course Redevelopment Project Area. After introductory statements, Mr. Curtis specifies or alludes to six objections against the adoption of the Second Amendment. Each objection and the response thereto is set forth below. Objection No. 1: Mr. Curtis argues the Second Amendment is premature because the City and Cottonwood are in discussions "to develop alternative planning scenarios for the Project Area and no definitive redevelopment plan has been established." Mr. Curtis states that action on the Second Amendment should be continued to allow Cottonwood, the City, the Agency, and other additional time to formulate a mutually acceptable redevelopment project. Response to Objection No. 1: The premise of Objection No. 1 is that the Second Amendment is being undertaken because of discussions between the Agency and certain Project Area landowners about the future uses of certain Project Area properties, including the Cottonwood Property. That premise is incorrect and there is no merit to the objection. There are currently three redevelopment plans adopted within Cypress: (1) The Redevelopment Plan for the Los Alamitos Race Track and Golf Course Project Area [in which the Cottonwood Property is located]. The Agency's authority to acquire property by eminent domain with respect to this Project Area expires on or about June 18, 2002. (2) The Redevelopment Plan for the Civic Center Project Area. The Agency's authority to acquire property by eminent domain with respect to this Project Area expires on or about April 10, 2001. 15 (3) The Redevelopment Plan for the Lincoln Avenue Project Area. The Agency's authority to acquire property by eminent domain with respect to this Project Area expires on or about June 25, 2002. At its August 14, 2000, meeting, the Agency authorized Agency staff to undertake steps leading to the possible amendment of all three redevelopment plans to address the expiration of eminent domain authority with respect to each and all of the three redevelopment plans. The Second Amendment is part of that process and unrelated to any discussions concerning future land uses on any real property within the Los Alamitos Race Track and Golf Course Project Area. Discussions concerning land uses in that Project Area have occurred from time to time and with various of the landowners within Project Area. There is no Agency plan or project as of today that would require the adoption of the Second Amendment in order to proceed. Indeed, the Agency's authority to acquire real property with respect to the Los Alamitos Race Track and Golf Course Project Area does not expire for another ten (10) months. In light of the requirements of the California Community Redevelopment Law (Health & Safety Code § 33000 et seq.) with respect to amending redevelopment plans to extend eminent domain authority, the Agency could have undertaken the proposed Second Amendment now, as it decided to do, or a year from now, or even after the date eminent domain authority had expired. Thus the timing of the Second Amendment is not related to any discussions concerning future land uses, but results from a desire of the Agency to retain all of its redevelopment tools in all three of its redevelopment project areas. In that regard, the City Council, with no oral or written objections received, approved and adopted for first reading the ordinance approving the Third Amendment to the Redevelopment Plan for the Civic Center Project Area at its March 26, 2001, meeting, the same meeting at which action on the ordinance approving the Second Amendment to the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Redevelopment Plan was to be considered but was deferred due to receipt of the three written objections to which this Resolution responds. The proposed amendment to the Redevelopment Plan for the Lincoln Avenue Project Area was the subject of a joint public hearing the Agency and City Council held on August 13, 2001. As such, the purpose of amending all three redevelopment plans is the same: to extend the Agency's eminent domain authority and to make certain other revisions to the plans including language changes to retain consistency between the redevelopment plans and the City's General Plan. Thus, the Second Amendment to the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Redevelopment Project Area, about which this objector is concerned, has not been proposed to single out the Cottonwood Property or any property within that project area, but rather as an overall Agency effort to revise and update its redevelopment plans in order for the Agency to retain all of the redevelopment and property acquisition tools currently existing in each of the redevelopment plans. Therefore there is no need to defer action to allow time for the Agency, City, Cottonwood, and others "to formulate a mutually acceptable redevelopment project." The Los Alamitos Race Track and Golf Course Project Area would continue in existence regardless of the Second Amendment, the Agency's eminent domain authority would continue for another ten (10) months even if the Second Amendment were not adopted, and any planning or other discussions with respect to properties within the Project Area may occur or not occur regardless of whether -2- 16 the Second Amendment is adopted. Moreover, there is nothing in the actions proposed to be taken by the Agency and the City Council with respect to the Second Amendment that precludes the Agency and City from continuing a dialogue with Cottonwood or any other property owner in the Project Area. See also the City Council's responses below to the written objections received from Robert K. Hillison asserting that the CEQA analysis for the Second Amendment was flawed because it failed to include the Town Center Master Plan, which responses are incorporated herein as though fully set forth and are made a part of this Response to Objection No. 1. For the foregoing reasons Objection No. 1 is without merit and is hereby overruled. Objection No. 2: Mr. Curtis cites to Health and Safety Code Section 33333 and asserts the California Community Redevelopment Law requires that permitted uses in the Project Area be set forth with some amount of specificity and that amending the language in the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Project Area to allow permitted land uses to conform to the City's General Plan as now existing or as the General Plan may be amended in the future "does not conform with the specificity requirements of the Redevelopment Law." Response to Objection No. 2: There is no merit to this objection as the court in Franklin-McKinney School Dist. v. City of San Jose (1991) 234 Cal. App. 3d 1599, 1605-1606, rejected this same argument and held that reference to the city's general plan satisfied the requirements of Health and Safety Code Section 33333. The school district, the plaintiff in that case, challenged the adoption of a series of ordinances that (i) approved redevelopment plans for three new redevelopment project areas and (ii) merged two of the new project areas with nine other existing project areas. The school district made the exact assertion made here by Mr. Curtis, i.e., that the redevelopment plans were defective because the plans failed to include the minimum level of information required by Section 33333 and instead simply referred to the city's general plan. The court rejected the school district's argument and held when the relevant information is readily accessible from the general plan without unreasonable efforts by interested parties, no substantial rights are implicated. In sum, it is well-settled practice in the adoption of redevelopment plans and plan amendments, as confirmed by the court in the above-referenced case, to refer to the city's general plan for the relevant information. For the foregoing reasons Objection No. 2 is without merit and is hereby overruled. Objection No. 3: Following the same path as Objection No. 2, Mr. Curtis asserts that referring to the General Plan will permit the City and the Agency "to circumvent the law by not requiring the Agency to follow applicable amendment procedures for an amendment of the Redevelopment Plan to account for any future changes in permitted uses in relevant zoning and planning documents." -3- • • 17 Response to Objection No. 3: The response to Objection No. 2 is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 3. By holding as it did in Franklin-McKinney School Dist. v. City of San Jose (1991) 234 Cal. App. 3d 1599, the court authorizes redevelopment plans to refer to a city's general plan for its permitted land uses and related matters. Thus there is no "circumventing of the law" as referring to the city's general plan is authorized under California law. Thus any future changes in permitted land uses under a redevelopment plan are permitted to be controlled by a city's general plan and changes to the city's general plan. In that regard it is important to note that general plan amendments are legislative acts (Gov. Code § 65301.5) and that the City Council must hold a noticed public hearing prior to adopting a general plan amendment (Gov. Code § 65355). Thus neither a landowner nor the public at-large is disadvantaged by a redevelopment plan referring to the City's general plan for its land use controls or changes to those land use controls effected through amendments to the City's general plan. For the foregoing reasons Objection No. 3 is without merit and is hereby overruled. Objection No. 4: Mr. Curtis asserts that redevelopment plan provisions "that purport to automatically amend the redevelopment plan when a General Plan or zoning is changed are ultra vires" because there are specific procedures set forth in the California Community Redevelopment Law ("CRL") for amending redevelopment plans, including extensive notice and hearing requirements, and with the Second Amendment the City and Agency would be able to effectively amend the Redevelopment Plan without having to follow the redevelopment amendment provisions of the CRL. Mr. Curtis concludes that the provisions of the Second Amendment that refer to the City's general plan for land use control is a violation of the CRL. Response to Objection No. 4: The responses to Objections Nos. 2 and 3 are incorporated herein as though fully set forth and are made a part of this Response to Objection No. 4. Again, referring to the City's general plan for a redevelopment plan's land use controls is expressly authorized by Franklin-McKinney School Dist. v. City of San Jose (1991) 234 Cal. App. 3d 1599 and so is not "ultra vires." The court implicitly approved the very process about which Mr. Curtis complains. When amendments to the City's general plan occur that affect property within the Project Area, no amendment to the redevelopment plan is necessary as the redevelopment plan remains consistent with the general plan as amended. Although Mr. Curtis may believe that referring to the general plan for the redevelopment plan's the land use controls is contrary to the CRL, the court in the Franklin-McKinney case held otherwise and expressly permits the type of amendment with respect to land use controls set forth in the Second Amendment. For the foregoing reasons Objection No. 4 is without merit and is hereby overruled. Objection No. 5: Mr. Curtis asserts that in connection with a redevelopment plan amendment that extends the Agency's authority to exercise its power of condemnation in the Project Area, the Agency must prepare a new blight study and a new finding of blight must be made to justify the extension of eminent domain authority. Based on this premise, Mr. Curtis -4- • 18 asserts that because neither the City nor the Agency has undertaken that new blight study or made new blight findings, the Second Amendment violates the CRL. Response to Objection No. 5: Mr. Curtis acknowledges that when the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Project Area was originally adopted the requisite findings of blight were made. What Mr. Curtis fails to note is that once the blight findings are made, those findings are final and conclusive. (Health & Safety Code § 33368; see, also Sweetwater Valley Civic Assn. v. City of National City (1976) 18 Ca1.3d 270.) Pursuant to the CRL, new blight findings or an analysis of blight remaining in the Project Area need be undertaken only for specified and limited types of amendments to redevelopment plans. The Second Amendment is not one of those types of amendments for which the CRL requires either a new blight study or new blight finding or an examination of blight remaining in the Project Area. When a new redevelopment plan is proposed, the Agency must prepare a report pursuant to Health and Safety Code Section 33352. That report must include a description of the physical and economic conditions in the proposed project area that cause the project area to be blighted. (Health & Safety Code § 33352, subd. (b).) The ordinance adopting a new redevelopment plan must include the finding that the project area is a blighted area, the redevelopment of which is necessary to effectuate the public purposes declared in the CRL. (Health & Safety Code § 33367, subd. (d)(1).) Although required for new redevelopment plans, the foregoing described blight analysis and blight finding are not required for all redevelopment plan amendments and are not required for this Second Amendment to the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Project Area. In amending a redevelopment plan, Health and Safety Code Section 33457.1 expressly authorizes the Agency to prepare only those reports and information required by Health and Safety Code Section 33352 and to make only those findings required by Health and Safety Code Section 33367 that are warranted by the proposed amendment. The blight analysis and blight finding are not warranted by the proposed Second Amendment. The State Legislature, in enacting various CRL provisions, has established that a new blight analysis and blight finding, or an examination of blight remaining in a project area, are required only for "major amendments" that result in a potential financial impact on the division of tax dollars. The Second Amendment is not any of these following described types of"major amendments:" 1. An amendment that proposes to add tax increment financing to a redevelopment plan that does not have that tax allocation provision. (Health & Safety Code § 33354.5.) This CRL section is not applicable as the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Project Area included tax increment financing provisions when originally adopted. The Second Amendment does not alter or affect those provisions. 2. An amendment that proposes to add territory to an existing project area (the blight analysis and finding would refer only to the area being added and not to the original project area). (Health & Safety Code § 33354.6, subd. (a).) The Second Amendment does not -5- • • • 19 add any territory to the Project Area or change in any manner the boundaries of the Project Area or the territory included within the Project Area. 3. An amendment to a redevelopment plan that utilizes tax increment financing that proposes to increase the limitation on the number of dollars to be allocated to the redevelopment agency. (Health & Safety Code § 33354.6, subd. (b).) The Second Amendment does not include any increase to the number of dollars to be allocated to the Agency from the Los Alamitos Race Track and Golf Course Project Area. 4. An amendment that proposes to extend the time limit set forth in a redevelopment plan on the agency's establishment of indebtedness to be paid with tax increment funds. (Health & Safety Code §§ 33333.2, subd. (a)(1)(B); 33333.6, subd. (a)(2); 33354.6, subd. (a).) The Second Amendment does not propose to alter the foregoing time limit. 5. An amendment that proposes to lengthen the period during which the redevelopment plan is effective. (Health & Safety Code § 33354.6, subd. (a).) No change to the expiration date of the effectiveness of the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Project Area is proposed by or included in the Second Amendment. The time limit on the effectiveness of the Redevelopment Plan was established by the First Amendment to the Redevelopment Plan adopted in accordance with Assembly Bill 1290 by Ordinance No. 952 on January 9, 1995, and is not affected by the proposed Second Amendment. 6. An amendment that proposes to merge project areas. (Health & Safety Code § 33354.6, sub. (a).) The Second Amendment does not propose to merge Cypress' three redevelopment project areas. Each of the three project areas remains separate. 7. An amendment that proposes to add significant additional capital improvement projects, as determined by the agency. (Health & Safety Code § 33354.6, sub. (a).) The Second Amendment makes no changes in this regard. Because the Second Amendment is not the type of redevelopment plan amendment that, under the provisions of the California Community Redevelopment Law, triggers the requirement for a new blight analysis/finding or an examination of blight remaining in the Project Area, the objection to the Second Amendment is unfounded. For the foregoing reasons Objection No. 5 is without merit and is hereby overruled. Objection No. 6: Mr. Curtis states that he is in receipt of the letter from the law firm of Caswell, Bell & Hillison, dated March 19, 2001, which states objections to the Negative Declaration prepared in connection with the Second Amendment and that he concurs with the objections to the Negative Declaration. Response to Objection No. 6: The March 19, 2001, letter from Caswell, Bell & Hillison, referred to by Mr. Curtis, is the letter from Robert K. Hillison that constitutes the second of the three written objections to the -6- • • 20 Second Amendment received by the City Council. Included in Mr. Hillison's letter are objections to the Negative Declaration prepared in connection with the Second Amendment. The City Council's written responses to the written objections stated by Mr. Hillison with respect to the Negative Declaration are set forth below and are incorporated herein as though fully set forth and are made a part of this Response to Objection No. 6. For the foregoing reasons Objection No. 6 is without merit and is hereby overruled. For the reasons set forth above, the objections to the adoption of the Second Amendment presented by Jonathan C. Curtis on behalf of Cottonwood Christian Center are each and all deemed without merit and are each and all hereby overruled. II. LETTER FROM ROBERT K. HILLISON, ATTORNEY, LAW FIRM OF CASWELL, BELL & HILLISON LLP, REPRESENTING LOS ALAMITOS RACE COURSE The City Council received a four-page letter with two one-page attachments, addressed to Mr. Doug Hawkins [Mr. Hawkins is an Associate Planner for the City of Cypress], dated March 19, 2001, from Robert K. Hillison, an attorney with the law firm of Caswell, Bell & Hillison, Post Office Box 5259, Fresno, CA 93755-5259, representing Los Alamitos Race Course ("Race Course"). A copy of Mr. Hillison's letter is included in Exhibit "A" to this Resolution. The City Council acknowledges that the Race Course property is within the Los Alamitos Race Track and Golf Course Project Area. After introductory statements, Mr. Hillison sets forth a series of interrelated objections based on the adequacy of the environmental review conducted for the Second Amendment pursuant to the California Environmental Quality Act (Pub. Res. Code § 21000 et seq.) ("CEQA"), including an overarching assertion that an environmental impact report ("EIR") should have been prepared in lieu of the Negative Declaration, and a overarching assertion that the CEQA review was inadequate because the Initial Study and Negative Declaration did not consider the "Town Center Master Plan Project." In order to respond to these interrelated objections, the following five objections to the adoption of the Second Amendment are identified and articulated based on the presentation set forth in Mr. Hillison's letter. Each objection and the response thereto is set forth below. Objection No. 1: Mr. Hillison alleges that the Negative Declaration is inadequate insofar as it did not analyze the Cypress Town Center Master Plan Project ("Town Center Project"). According to Mr. Hillison, because the Initial Study and Negative Declaration do not consider the Town Center Project, the Negative Declaration is flawed and an Environmental Impact Report should have been prepared in lieu of the Negative Declaration. Response to Objection No. 1: The allegation that the Initial Study and Negative Declaration should have included the Town Center Project as part of the project analyzed pursuant to CEQA is unsupportable. To begin with, the Town Center Project represents, at this stage, only a potential and hypothetical development concept. At this time it is entirely speculative as to what types of development may -7- • 21 or may not ultimately occur within the Town Center area, an area that is smaller than the Los Alamitos Race Track and Golf Course Project Area. (The Second Amendment affects the entire the Los Alamitos Race Track and Golf Course Project Area, not just the properties within a potential Town Center area). Among the numerous development scenarios that have been discussed at one time or another, and that are continuing to be discussed to this day, include differing and hypothetical site plans involving a myriad of differing and hypothetical potential users and potential tenants. The potential users or tenants include various retail, commercial and non-retail components, none of which can be confirmed at this time. Indeed, it is for this very reason--the speculative and uncertain nature of the development which may or may not occur within the Town Center area--that the City adopted Ordinance Nos. 1005 and 1006. These Ordinances impose an interim moratorium on the processing of development applications concerning real property located within the Town Center area pending the City's completion of a review and analysis of various zoning and land use proposals concerning the Project Area. Additionally, whatever final development proposals result from the planning process may, in fact, require approval by the City's electorate. In light of the entirely speculative nature of the types of development that may or may not occur on properties within the Town Center area, the allegation that the "Town Center Project" should have been included in the environmental assessment is entirely unsupportable. Indeed, the California courts have long recognized that while CEQA cannot be avoided by intentionally "piecemealing" large projects into smaller projects, the courts have uniformly held that "where future development is unspecified and uncertain, no purpose can be served by requiring an EIR to engage in sheer speculation as to future environmental consequences." (Lake County Energy Council v. County of Lake (1977) 70 Cal. App. 3d 851, 854-55.) As the California Court of Appeal stated in Rio Vista Farm Bureau Center v. County of Solano (1992) 5 Cal. App. 4th 351, 372: CEQA requires consideration of the potential environmental effects of the project actually approved by the public agency, not some hypothetical project . . . [W]here future development is unspecified and uncertain, no purpose can be served by requiring an EIR to engage in sheer speculation as to future environmental consequences. Here, because the actual development that may or may not occur as a "Town Center Project" is entirely speculative, the allegation that the Negative Declaration prepared for the Second Amendment should have included an analysis of the "Town Center Project" is unsupportable. No "Town Center Project" or even portions of a "Town Center Project" have been formulated for presentation for approval to either the Agency or the City Council, and neither have the contours of what such a project may ultimately entail been identified at this preliminary and speculative stage in the process. Moreover, the allegation that a full blown EIR should have been completed is also unsupportable. The allegations set forth in Mr. Hillison's letter do not contain any evidence, much less substantial evidence, of potentially significant environmental impacts occurring by the mere adoption of the Second Amendment. The California courts have categorically held that unsupportable allegations of environmental impact made by an attorney do not constitute -8- 22 evidence of potentially significant environmental impact. (Pala Band of Mission Indians v. County of San Diego (1998) 68 Cal. App. 4th 556, 578-79 [stating that an attorney's letter containing "argument, speculation, unsubstantiated opinion or narrative . . . does not constitute substantial evidence" of potentially significant environmental impact.].) Additionally, it is not surprising that Mr. Hillison fails to identify potentially significant environmental impacts because the California courts have held that legislative acts of a scope similar to the Second Amendment do not produce physical changes to the environment and therefore are not, in many instances, required to be subject to any CEQA review. (See Kaufman & Broad v. Morgan Hill Unified School District (1992) 9 Cal. App. 4th 464, 474-75 [rejecting the assertion that the establishment of a Community Facilities District required CEQA review because "no definite plan ha[d] been formulated as to where or when to construct new facilities, and . . . [hence] there [was] no plan to review."].) Finally, once a project is defined and discretionary land use approvals are proposed, the Agency or City, as appropriate, will conduct the requisite environmental analysis. Indeed, to the extent a "Town Center Project" would require the City Council to submit revisions to land use designations to the voters of Cypress, the City Council would have to undertake environmental review prior to submitting such a ballot measure to the voters. (See Friends of Sierra Madre v. City of Sierra Madre (2001) 2001 Cal. LEXIS 1563 (filed March 29, 2001).) It bears repeating that the "project" for which the Negative Declaration was prepared was the Second Amendment to Redevelopment Plan for the Los Alamitos Race Track and Golf Course Project Area. The scope of the Second Amendment is limited to (i) extending the time during which the Agency is authorized to use the power of eminent domain, (ii) conforming the Land Use section of the Redevelopment Plan to provide that land uses within the Project Area shall be in conformity with the City's General Plan, as it exists today or as amended in the future, and (iii) making nonsubstantive textual changes to the Redevelopment Plan to update language consistent with the CRL. In light of the scope of the "project," the Negative Declaration was the appropriate level of CEQA review. In addition, the "Response to Objection No. 1" set forth in Section I of this Exhibit "B" (i.e., the response to Objection No. 1 with respect to the letter from Mr. Curtis on behalf of Cottonwood Christian Center) is incorporated herein as though fully set forth and is made a part of this Objection No. 1. For the foregoing reasons Objection No. 1 is without merit and is hereby overruled. Objection No. 2: Mr. Hillison also objects to the adoption of the Negative Declaration on the basis that the environmental assessment did not include detailed information concerning the project's potential impact on riparian habitats, wildlife corridors and native wildlife nurseries, paleontological [sic] resources, human remains, and mineral resources. Response to Objection No. 2: This objection is based primarily on the assertion that the initial study "did not go far enough." This objection is meritless. In the absence of any substantial evidence of potentially significant environmental impact, California courts grant broad deference to an agency's -9- • • M 23 determination made in an initial study. To this end, the California courts have held that conclusions reached in an initial study need not be amplified unless there are valid, cognizable reasons to dispute the conclusions contained therein. (See Leonoff v. Monterey County Board of Supervisors (1990) 222 Cal. App. 3d 1337, 1347 ["[W]e are aware of no authority supporting objectors' unstated premise that an initial study is inadequate unless it amounts to a full-blown EIR based on expert studies of all potential environmental impacts. If this were true, the Legislature would not have provided in CEQA for negative declarations."]; see also Gentry v. City of Murrieta (1995) 36 Cal. App. 4th 1359, 1370 (emphasis in the original) ["The lack of study is hardly evidence that there will be a significant impact."].) For the foregoing reasons Objection No. 2 is without merit and is hereby overruled. Objection No. 3: Mr. Hillison's asserts that the extension of the Agency's eminent domain authority with respect to the Los Alamitos Race Track and Golf Course Project Area is a (i) a necessary step in the chain leading to development of the Town Center Project, (ii) a commitment of the Agency to the Town Center Project because without authority to condemn the Agency will not be able to proceed with the Town Center Project, and (iii) therefore there is a direct causal link between the extension of eminent domain authority and the development of the Town Center Project. Response to Objection No. 3: The premise of Objection No. 3 is the same as the premise behind Objection No. 1 stated in the letter from Mr. Curtis on behalf of Cottonwood Christian Center. Thus, as its response to Objection No. 3 the Response to Objection No. 1 with respect to Mr. Curtis' letter, set forth above, is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 3. For the foregoing reasons Objection No. 3 is without merit and is hereby overruled. Objection No.4: Mr. Hillison makes a number of interrelated assertions concerning the extension of the Agency's eminent domain authority, blight, and environmental review. He argues as follows: (i) to amend the Redevelopment Plan for the Los Alamitos Race Track and Golf Course Redevelopment Project Area to extend the Agency's eminent domain authority for twelve years requires the Agency to find that the Project Area is blighted; (ii) the Agency must analyze how the proposed Town Center Project will impact blight in the Project Area; (iii) because blight has a physical component CEQA is implicated and the in-depth blight analysis required mandates an EIR; and(iv) blight cannot simply be assumed. -10- • • • 2 4 Response to Objection No. 4: With respect to item (i), as forth in the Response to Objection No. 5 with respect to Mr. Curtis' letter on behalf of Cottonwood Christian Center, the Agency and City Council do not need to analyze or reanalyze blight in the Project Area or make a new blight finding with respect to the Second Amendment. The Response to Objection No. 5 with respect to Mr. Curtis' letter, set forth above, is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 4. With respect to item (ii), the Response to Objection No. 5 with respect to Mr. Curtis' letter, set forth above, is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 4. Moreover, there is no requirement in the California Community Redevelopment Law that the Agency or City Council determine in advance as part of a redevelopment plan amendment how a yet-to-be-defined development will impact blight. The impact of a particular development project on alleviating blighting conditions in the Project Area need only be analyzed under the CRL when the Agency proposes to either dispose of real property for development that the Agency acquired with tax increment funds (Health & Safety Code § 33433, subd. (a)(2)(B)(iv)) or the Agency proposes to pay for the land for, and/or the cost of installing, publicly owned improvements [unless the funds related to production of affordable housing] (Health & Safety Code § 33445(a)(3). With respect to item (iii), the Response to Objection No. 5 with respect to Mr. Curtis' letter, set forth above, is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 4 with respect to the issues raised . Because the Second Amendment is not the type of amendment that triggers any requirement in the CRL for reanalyzing blight or making a new blight finding, there is no basis for the objection posed. Lastly, with respect to item (iv), the finding and determination that the Project Area is blighted, made when the Redevelopment Plan was originally adopted, is deemed final and conclusive. (Health & Safety Code § 33368; see, also Sweetwater Valley Civic Assn. v. City of National City (1976) 18 Ca1.3d 270.) There is no basis for the objection posed. For the foregoing reasons Objection No. 4 is without merit and is hereby overruled. Objection No. 5: Mr. Hillison asserts that if the Agency's authority to condemn property in the Project Area is extended pursuant to the Second Amendment, "all future Town Center analysis will assume that the Agency has the power of eminent domain for an additional twelve years, to 2014." Response to Objection No. 5: Mr. Hillison appears to confuse the authority of an Agency to acquire property by eminent domain set forth in a redevelopment plan and the exercise of that authority. Although a redevelopment plan may provide the Agency with authority to exercise eminent domain powers with respect to a redevelopment project area, a redevelopment agency's power to acquire -11- v. • 2 5 property (by any particular means) is subject to the CRL and, further with respect to the exercise of the Agency's eminent domain power, is subject to the California Eminent Domain Law. (Code Civ. Proc. § 1230.010 et seq.) Under the CRL and applicable law, prior to acquiring property for a redevelopment project that is not property offered for sale on the open market, the Agency must offer the property owner an opportunity to participate in the redevelopment project. This "owner participation" process (which is further detailed in the Agency's adopted Owner Participation Rules) enables a property owner to respond to a proposed Agency redevelopment project and become involved in that redevelopment project. If the owner declines to participate, is financially or otherwise incapable of meeting the requirements of participation, or proposes to participate in a manner inconsistent with the proposed project, the Agency still cannot simply proceed to acquire the property by eminent domain. Rather, the Agency, consistent with California law, must first appraise the property and must offer to acquire the property for the appraised price. The Agency cannot "lowball" the purchase price. If the property owner refuses to sell the property and a mandated negotiation period does lead to a negotiated purchase, only then can the Agency initiate eminent domain proceedings by consideration of adoption of a "resolution of necessity" at a noticed hearing at which the property owner can appear and testify. Even if the resolution of necessity is adopted, the eminent domain law then requires the filing of an eminent domain complaint, which the property owner can answer and contest. In short, to say or imply that adoption of the Second Amendment will automatically result in the Agency's acquisition of property by eminent domain is simply incorrect. The Second Amendment is merely the means to continue the Agency's currently available authority so that it may, in the future, use the power of eminent domain to acquire real property (if it follows the requirements of the CRL and the California Eminent Domain Law). In and of itself, the Second Amendment is not an activity focused on or which authorizes the acquisition of specific property or an action that amounts to an actual or constructive taking of any property. The adoption of the Second Amendment is, to quote the California Supreme Court in Selby Realty Co. v. City of San Buenaventura (1973) 10 Cal. 3d 100, 119, "several leagues short of a firm declaration of an intent to condemn property." In Selby, the plaintiff asserted a cause of action for inverse condemnation because of the adoption of a general plan. The court held: If a governmental entity and its responsible officials were held subject to a claim for inverse condemnation merely because 2. parcel of land was designated for potential public use on one of these several authorized plans, the process of community planning would either grind to a halt, or deteriorate to publication of vacuous generalizations regarding the future use of land. We indulge in no hyperbole to suggest that if every landowner whose property right might be affected at some vague and distant future time by and of these legislatively permissible plans was entitled to bring an action in declaratory relief to obtain a judicial declaration as to the validity and potential effect of the plan upon his land, the courts of this state would be inundated with futile litigation. It is clear, under all the circumstances, that plaintiff has not stated a -12- • a 2 6 cause of action . . . for either declaratory relief or inverse condemnation. (Selby, supra, at 120-121.) The holding in Selby applies here. (See, also, Jordan v. City of Santa Barbara (1996) 46 Cal. App. 4th 1245, 1257 [no inverse condemnation because risk of a future event is not an "act" and thus no taking has occurred].) The Second Amendment will provide the Agency with general authority to acquire property by eminent domain for an additional twelve years, but exercise of that authority is subject to the other requirements of California law cited above. As such, there is no basis for this objection. For the foregoing reasons Objection No. 5 is without merit and is hereby overruled. For the reasons set forth above, the objections to the adoption of the Second Amendment presented by Robert K. Hillison on behalf of the Los Alamitos Race Course are each and all deemed without merit and are each and all hereby overruled. III. LETTER FROM MAYOR ALICE B. JEMPSA, MAYOR OF THE CITY OF LOS ALAMITOS, ON BEHALF OF THE CITY COUNCIL OF THE CITY OF LOS ALAMITOS AND THE CITY OF LOS ALAMITOS The City Council, received a one-page letter, addressed to Mike McGill, Mayor of the City of Cypress, dated March 26, 2001, from Alice B. Jempsa, Mayor of the City of Los Alamitos, 1391 Katella Avenue, Los Alamitos, CA 90720-5600, on behalf of the City Council of the City of Los Alamitos and the City of Los Alamitos. A copy of Mayor Jempsa's letter is included in Exhibit "A" to this Resolution. After introductory statements, Mayor Jempsa specifies or alludes to two objections to the adoption of the Second Amendment. Each objection and the response thereto is set forth below. Objection No. 1: The City of Los Alamitos objects to the eminent domain extension "if it will be used directly, or indirectly, to eliminate potential uses which could provide the residents of Los Alamitos with genuine traffic mitigation on Katella." Response to Objection No. 1: The extension of the Agency's eminent domain authority is not related to any specific development project but rather is part of an overall Agency effort to revise and update its three redevelopment plans in order for the Agency to retain all of the redevelopment and property acquisition tools currently existing in each of the redevelopment plans. The Response to Objection No. 1 set forth with respect to Mr. Curtis' letter is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 1. Moreover, the extension of the Agency's eminent domain authority as set forth in the Second Amendment will not preclude CEQA review of specific development proposals if and as required by CEQA. Determination of -13- r 2 7 traffic mitigation measures or the mitigation of any other impacts resulting from specific development proposals will be the subject of environmental review at the appropriate time in accordance with the requirements of CEQA. The Response to Objection No. 1 set forth with respect to Mr. Hillison's letter is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 1. For the foregoing reasons Objection No. 1 is without merit and is hereby overruled. Objection No. 2: The City of Los Alamitos objects to any change in the Redevelopment Plan or the extension of eminent domain that could modify or exclude uses that are currently permitted and which would result in a reduction in traffic on Katella as compared to other alternative developments. Response to Objection No. 2: Objection No. 2 has the same premise as Objection No. 1. The Response to Objection No. 1 set forth above is incorporated herein as though fully set forth and is made a part of this Response to Objection No. 2. For the foregoing reasons Objection No. 2 is without merit and is hereby overruled. For the reasons set forth above, the objections to the adoption of the Second Amendment presented by Mayor Alice B. Jempsa on behalf of the City Council of the City of Los Alamitos and the City of Los Alamitos are each and all deemed without merit and are each and all hereby overruled. [end of Exhibit "B"] -14- • • it