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Minutes 86-02-0322 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CYPRESS CITY COUNCIL HELD February 3, 1986 The adjourned regular meeting of the Cypress City Council was called to order at 6:09 p.m. on Monday, February 3, 1986, in the Instructional Center of the Cypress School District Offices, 9470 Moody Street, Cypress, California, by Mayor Otto Lacayo. PRESENT: Councilmembers Coronado, Partin and Lacayo ABSENT: Councilmembers Kanel and Mullen Also present were City Manager Darrell Essex, City Attorney Mark Huebsch, and the following City staff members: Barrett, Eynon, Hurst, Jones and Venables. Mr. Wayne Wedin and Mr. Brice Russell, consultants, were also present. COUNCILMAN KANEL ARRIVED AT 6:10 P.M.; COUNCILMAN MULLEN ARRIVED AT 6:15 P.M. The Council was present for a joint dinner and meeting with the Cypress School Board. The following Board members were present: PRESENT: Members Cornejo, Friedmann, McDougall, Southfield and Swain ABSENT: None Also present was William Calton, Superintendent. RECESS: Following dinner, Mayor Lacayo recessed the meeting at 6:50 p.m. to the Board meeting room. The meeting was called back to order in the Board room at 7:00 p.m. with all Council and Board members present. CONSIDERATION OF CYPRESS SCHOOL PROPERTY ALTERNATIVES AND REDEVELOPMENT STATUS (TEXACO TANK FARM): Superintendent Calton reported that, in response to direction from the Council /Board steering committee, the staffs of both the City and District had met and were returning with a joint proposal regarding the Cypress School property and a report on the redevelopment status of the Texaco tank farm. As a result of the Board's unanimous approval at its January meeting to sell 1.3 acres of the Cypress School site to the City, Mr. Calton reported that he will be meeting with the City planning and engineering staff and that the Redevelopment Agency will be filing the EIR and lending assistance in meeting Subdivision Map Act requirements. Mr. Calton reported that the Community Day School has been notified of the sale and stated he hoped to give them extra lead time to find an alternate facility. Mr. Calton stated the Board still maintains the position that it would like to dispose of the entire remainder of the site rather than portions at a time. He indicated that a cash sale may not be as beneficial as a sale that would generate long -term revenue. He stated the Board has continuing interest in trading, selling, or joint venture activities with the City. The City Manager reported that City staff has worked closely with the District to determine what is the best approach for the Cypress School property and the City -owned property adjacent to the Civic Center in view of what can be accomplished with the HUD grant. He reported that the City has received approval of the housing grant funding. Staff will process the parcel map, conditional use permit, plans and bids and if everything is on schedule, construction could begin in September 1986. He stated the City hopes to close the purchase with the District within the next fiscal year. Mr. Essex stated that the City would not close escrow until it is assured of funding from HUD and has a written commitment. The Planning Director stated the City should have a firm answer within the next few weeks but actual funding may not be until August. Staff indicated that the applicant, National Church Residences, is proceeding with plan development. In conjunction with the seniors housing project, Mr. Essex reported that staff has submitted a Seniors Center expansion project to the County for HUD block grant funding and it appears the County is interested in funding parts of the project. The expansion is planned in three phases, based on funding availability, and would comprise two acres for the building, driveway and additional parking. This would leave a balance of 2.68 acres having the potential for private development for seniors housing. Staff displayed a plan of the expansion proposal. 23 City Council Minutes February 3, 1986 With regard to the Board's interest in a joint venture, Mr. Essex requested their consideration of the Civic Center site. He distributed a report identifying the ownership, size, location and zoning of the various parcels adjacent to the Civic Center. He reported that the total area is 7.28 acres and of that the City and Redevelopment Agency own 3.72 acres; Mr. Erskine owns 1.21 acres; and left to be acquired are 2.35 acres. Mr. Essex described the potential for a joint venture between the City and District whereby the City could trade parcels it owns in the Civic Center area for property at the Cypress School site. A determination would have to be made where the acreage traded would be of equivalent value. He reported that Mr. Erskine has expressed interest in pursuing the development of seniors housing and his parcels could be included in a trade with the Cypress School property. Mr. Calton indicated that the District would prefer working with the City in a joint venture relationship. He stated the joint venture could provide the District with annual income on a long -term basis. Mr. Essex reported that an expenditure of approximately $1,000,000 would be needed to acquire the remaining parcels (2.35 acres) in the Civic Center area. Mr. Essex indicated that with the City's acquisition of the Cypress School property, the City could put together a development package for the Seniors Center and undeveloped area. The Redevelopment Agency could acquire, consolidate and trade the remaining Civic Center area parcels to the District. Mr. Calton stated it would be preferable for the City to develop the property as a joint venture and the District would then get a percentage of the revenues. In response to a question from the Council, the City Attorney and consultant reported that there is precedent for the type of cooperative agreement proposed. Staff pointed out that the Redevelopment Agency has great flexibility with respect to legal requirements for the sale, lease or acquisition of property which could benefit the School District. They indicated that the Agency and District would need to determine a fair and reasonable sharing of the tax increment. In discussion of this item, all Councilmembers expressed support for pursuing the proposal for a trade of properties. Board Member Friedmann felt the joint venture and trading of properties was a good idea but she expressed concern that the School District might find itself in a desperate financial situation sometime in the future. The Mayor suggested an escape clause for the District's protection. Member Cornejo felt a joint venture would be good for both the District and City. He expressed concern about concentrating one group (i.e. the seniors) at one location and stated if the seniors housing project was larger he would not want it on one site. Councilman Coronado stated he would like to see a continuation of professional buildings along Orange Avenue and that he would oppose seniors housing facing Orange. Mr. Paul Erskine stated he had discussed with staff the possibility of trading his property for land at the rear of the Civic Center. One disadvantage that staff pointed out is that this would be a long -term project while a trade for the school property would have more immediate results. In regard to redevelopment status of the Texaco Tank Farm, Mr. Essex reported that the consultant has been working with all districts and affected parties. Mr. Russell reported that the Agency has initiated an amendment to the Civic Center redevelopment project to include the Texaco Tank Farm and Edison facilities. He stated the redevelopment program could remedy traffic and drainage problems at the Tank Farm and allow the widening of Denni Street. He indicated that the redevelopment plan process requires that any actions must be consistent with the City's General Plan which currently designates both facilities as RS- 6000. With the elimination of the Tank Farm and Edison facilities, he stated there would be the opportunity to build 695 single - family homes resulting in a population growth of 2,400. Mr. Russell reported that the .plan amendment process requires the Agency to inform taxing agencies of the impacts of a project and help find remedies to mitigate the impacts. Mr. Russell stated staff projected 3.08 persons per unit. Mr. Calton estimated .5 students per home, or 350 students in K -6 grades. He stated the District may have to reopen closed schools. Mr. Wayne Wedin reported that the staff was in the process of trying to establish rules and guidelines on how to deal with mitigation measures, changing demographics, and provision of public improvements and City and District services. Mr. Essex stated he would meet with Texaco representatives soon. The Council requested that he obtain more information on the status of the Tank Farm and particularly whether it presents any serious environmental problem. -2- 24 City Council Minutes February 3, 1986 RECESS: Mayor Lacayo recessed the meeting at 8:20 p.m. to the Administrative Conference Room of the Cypress City Hall, 5275 Orange Avenue. The meeting was called back to order at 8:35 p.m. with all Councilmembers present. At the City Manager's request, the Mayor added Item #3 to the agenda regarding a Redevelopment Agreement with the Orange County Water District. CONSIDERATION OF LINCOLN PROPERTIES PROPOSAL FOR PARTIAL DEVELOPMENT OF THE RACE TRACK PROPERTY: Mayor Lacayo stated that he had spoken with the City Manager and City Council regarding cancellation of this presentation and noted that representatives of the track and applicant were present. Mr. Noel Hatch, representing Hollywood Park, stated he was aware this meeting was cancelled. Mr. Hatch reported that, during the master planning process, the track was contacted by Lincoln Properties regarding the possibility of residential use at the Cerritos /Denni corner. In discussions with staff, it was felt that an informal workshop session would be beneficial in providing the applicant with feedback from the staff and Council. Mr. Hatch stated that the applicant may have overstepped their bounds with their contacts and he apologized and stated that nothing further will occur. Mr. Hatch requested that the workshop be rescheduled. Mayor Lacayo stated the Council is interested in what is being planned for the entire property and that this should be addressed in a workshop. He suggested adopting a policy so that the City and track could cooperate in resolving short and long -term plans. He stated he was disturbed about hearing of the possibility of housing at the race track. Councilman Coronado stated he had received input from residents on Cerritos Avenue who do not want concrete corner to corner but want landscaping. He asked to see an overall master plan for the property. Councilman Kanel agreed that a workshop on a master plan would be in everyone's best interests. He stated he was disturbed about hearing that the track may cut down on racing dates. Mayor Lacayo stated a workshop would be productive in explaining the politics of the community and its feelings toward future land uses. Mr. Hatch stated the Race Track recognized the Council's concern about residential development and that Lincoln Properties would like some guidance on whether the Council would entertain their proposal. He stated the proposal was made now because the applicant would have to begin the EIR and other studies if the Council was receptive. If not, then the Track could avoid this expense and delays with the balance of their program. Councilman Mullen stated that he was willing to consider housing in the context of a master plan but stated the odds of it occurring are questionable because of past community resistance. He stated he supported having more informal meetings to consider a master plan and try to work out a philosophical agreement with the Track. Councilman Coronado stated he shared the Mayor's concerns. Councilman Partin indicated he objected to having heard about the residential plans without seeing a master plan. He and Councilman Kanel voiced concerns with the compatibility and impacts of the project. Mr. Essex stated it appeared the consensus of the Council was to hold a workshop on the total master plan and not close the door to residential development. Mr. Hatch thanked the Council for cancelling the meeting and stated the meeting would have been premature. He stated he would like to move quickly and submit a specific plan in final form for the staff and Council to review. Councilman Partin inquired about the density of the residential proposal. Mr. Barry Kamel, Lincoln Properties, reported that about 19 units per acre would be possible based on RM -20 zoning and no density bonus on their 28.8 acres. Mr. Kamel extended apologies for contacting the Council and stated the applicant had only wanted to prepare itself if the Council had any concerns about their proposal. Mr. Kamel stated they have identified a significant need in the City for the housing they propose, they have addressed environmental issues and solutions, and they would like to share their findings with the Council. Mayor Lacayo recommended that the Council adopt a policy of guidelines governing the entire Hollywood Park property which should reflect the Council's interest in ultimate development of the entire 300 acres and require that any rezoning be in a systematic manner. He and Councilman Partin recommended that the Track demonstrate how any specific proposal fits in with their master plan. City Council Minutes February 3, 1986 In response to Councilman Mullen, the City Manager recommended that residential development not be considered on the Race Track property. Councilman Mullen stated he was inclined to accept staff's recommendation that residential development is unsuitable. Councilman Kanel stated there appeared to be too many negatives. Mayor Lacayo stated he had no interest in hearing a presentation by Lincoln Properties. Following a poll, the remainder of the Council concurred. Councilman Mullen suggested that staff prepare a position paper addressing housing as a separate issue. Mayor Lacayo asked Mr. Essex to advise the applicant that the Council is not interested in hearing its presentation. It was moved by Councilman Mullen, seconded by Councilman Coronado and unanimously carried to adopt a policy expressing the Council's desire to consider a total master plan for the Race Track property and deal with development proposals in relation to the master plan. The Council requested that Mr. Essex prepare a policy statement and also notify the applicant of the Council's adopted policy. BUDGET WORKSHOP: The City Manager presented a report dated January 31, 1986 which transmitted the 1986/87 Budget Calendar, Mid -Year Budget Review including the Detailed General Fund Revenue and Expenditure Reports as of December 31, 1985, and the Mid -Year Status of Departmental Goals and Objectives for 1985/86. The Council indicated they had no questions concerning the reports. In regard to Item #3, Consideration of Redevelopment Agreement with the Orange County Water District, Mr. Brice Russell, consultant, reported on his negotiations with the District concerning the amendment to the Redevelopment Project involving the Texaco and Edison facilities and reported that an agreement was negotiated whereby the Redevelopment Agency will pass through 80% of .56% of the tax revenues from the amendment area. Mr. Russell reported that the District Board has approved the agreement. It was moved by Councilman Mullen, seconded by Councilman Partin and unanimously carried that the City Council, acting as the Cypress Redevelopment Agency, approve the agreement between the Cypress Redevelopment Agency and the Orange County Water District regarding payment of tax revenues. In regard to the budget discussion, Councilman Partin inquired about employees on disability leave and asked if they could be replaced if they are unable to work. Mr. Barrett responded that the case cited by Councilman Partin should be resolved within 90 days based on the medical report. Mayor Lacayo reported that he received a complaint from a resident who was concerned when the cable company entered his property and dug up his lawn in order to install cable for his neighbor. Mayor Lacayo stated that Copley has a recorded message for Saturday calls. He directed Mr. Barrett to request that the cable company provide a telephone number for complaint calls on Saturday. ADJOURNMENT: Mayor Lacayo adjourned the meeting at 10:05 p.m. ATTEST: THE CITlP OF CYPRESS Eft) TY OF CYPRESS 25