HomeMy WebLinkAbout2001-279 I RESOLUTION NO. 2001-279 2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING A RESPONSE 3 TO WRITTEN AND ORAL OBJECTIONS RECEIVED PRIOR TO OR AT THE AUGUST 20, 2001, JOINT PUBLIC HEARING CONCERNING THE 4 PROPOSED 2001 EMINENT DOMAIN AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY SOUTH 5 REDEVELOPMENT PROJECT 6 7 WHEREAS, the City of San Bernardino ("City") is a charter city organized and existing 8 under the Constitution and laws of the State of California; and 9 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a 10 public body corporate and politic, organized and existing under the California Community 11 Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL"); and 12 WHEREAS, the Community Development Commission of the City of San Bernardino (the 13 "Commission") is the governing board of the Agency; and 14 WHEREAS, the Mayor and Common Council ofthe City ("Common Council"), by adoption 15 of Ordinance No. 3572 on May 3,1976, approved and adopted the Redevelopment Plan for the 16 Central City South Redevelopment Project ("Original Plan"); and 17 WHEREAS, the Common Council, by adoption of Ordinance No. MC-564 on December 8, 18 1986, approved and adopted the First Amendment to the Original Plan ("First Amendment"); and 19 WHEREAS, the Mayor and Common Council, by adoption of Ordinance No. MC-724 on 20 April 2, 1990, approved and adopted the Second Amendment to the Original Plan, as amended 21 ("Second Amendment"); and 22 WHEREAS, the Common Council, by adoption of Ordinance No. MC-919 on December 20, 23 1994, approved and adopted the Third Amendment to the Original Plan, as amended ("Third 24 Amendment"); and 25 WHEREAS, the Original Plan, as amended by the First Amendment, Second Amendment, 26 and Third Amendment is hereinafter referred to as the Redevelopment Plan; and 27 28 SB2001:25264.1 I ,- , 2001-279 I WHEREAS, the Redevelopment Plan delineates the redevelopment project area for the 2 Central City South Redevelopment Project (the "Project Area"); and 3 WHEREAS, the Agency and Common Council have initiated proceedings for the adoption 4 of a further amendment to the Redevelopment Plan entitled "2001 Eminent Domain Amendment to 5 the Redevelopment Plan for the Central City South Redevelopment Project" (the "2001 6 Amendment"); and 7 WHEREAS, the 2001 Amendment shall reinstate the Agency's eminent domain authority 8 with respect to all non-residentially used or occupied property in the Project Area for a twelve (12) 9 year period, commencing on the effective date of the Ordinance approving the 2001 Amendment; 10 and 11 WHEREAS, the Mayor and Common Council consented to hold a joint public hearing with 12 the Commission with respect to the 2001 Amendment, at which hearing all persons having any 13 objection to the 2001 Amendment, the proposed Addendum to the 1976 Environmental Impact 14 Report for the Redevelopment Plan for the Original Plan (the "Addendum to the 1975 EIR"), or the 15 regularity of any prior proceedings concerning the 2001 Amendment, were allowed to appear before 16 the Common Council and show cause why the 200 I Amendment should not be adopted; and 17 WHEREAS, notice of the joint public hearing ofthe Commission and Common Council with 18 respect to the 2001 Amendment and the Addendum to the 1976 EIR was prepared, published and 19 served by United States Mail in accordance with applicable law and a copy of the affidavit of 20 publication of such public notice and a declaration of service by United States Mail of such public 21 notice is on file in the Office of the City Clerk; and 22 WHEREAS, the joint public hearing ofthe Commission and Common Council was duly held 23 on August 20, 2001 at which time the Commission and the Common Council received one (I) 24 written objection to the adoption ofthe 2001 Amendment and one (1) oral objection to the adoption 25 of the 2001 Amendment; and 26 27 28 SB2001:25264.1 2 2001-279 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Community Redevelopment Law requires that prior to the adoption of an amendment to the Redevelopment Plan for the Central City South Redevelopment Project that the Common Council respond in writing to written objection received by adopting a written response to the written objection; and WHEREAS, following the closure of the joint public hearing at the August 20, 2001, consideration of the proposed adoption of the 2001 Amendment was continued to the September 4, 2001, meeting of the Commission and the Common Council to permit the Common Council to consider a written response to the written objection and to the oral objection as submitted at the meeting at which this Resolution is adopted; and WHEREAS, all objections to the adoption ofthe 2001 Amendment, including the one written objection and the one oral objection received as of August 20, 2001 have been fully considered by the Common Council; and WHEREAS, a written response to the one written objection and the one oral objection received to the 2001 Amendment has been prepared and have been fully reviewed and considered by the Common Council. NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Common Council has thoroughly reviewed and considered the one written objection to the 2001 Amendment received at or prior to the joint public hearing, which objection is set forth in Exhibit "A" hereto. The Common Council hereby finds and determines that the written objection is without merit for the reasons set forth in the written response to such written objection presented in Exhibit "B" hereto. The written response attached hereto as Exhibit "B" under the hearing "Response to Written Objection" is hereby adopted as the written findings of the Common Council in response to the one written objection received. SI3200U5264.1 3 2001-279 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 2. The Common Council has thoroughly reviewed the one oral objection to the 2001 Amendment received at the joint public hearing which oral objection has been summarized and is presented in Exhibit "B", under the heading "Oral Objection". The Common Council hereby finds and determines that the oral objection is without merit for the reasons set forth in the written response to such oral objection presented in Exhibit "B" hereto. The written response attached hereto as Exhibit "B" under the heading "Response to Oral Objection" is hereby adopted as the written findings of the Common Council in response to the one oral objection received. Section 3. All oral and written objections to the 2001 Amendment received at or prior to the joint public hearing conducted on August 20,2001, are hereby overruled. Section 4. The City Clerk is hereby directed to transmit, by prepaid first class mail, a certified copy of this Resolution, including the written objection set forth as Exhibit "A" and the written response to objections set forth as Exhibit "B", to each person who has submitted a written or oral objection to the 2001 Amendment as of the August 15, 2001, joint public hearing. Section 5. This Resolution shall take effect upon adoption. SB200L25264.1 4 6 7 8 9 10 11 12 13 14 15 16 17 18 2001-279 1 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING A RESPONSE TO 2 WRITTEN AND ORAL OBJECTIONS RECEIVED PRIOR TO OR AT THE AUGUST 20, 2001, JOINT PUBLIC HEARING CONCERNING THE PROPOSED 3 2001 EMINENT DOMAIN AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY SOUTH REDEVELOPMENT PROJECT 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor 5 and Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the 4th day of September ,2001, by the following vote, to wit: Council ESTRADA LIEN McGINNIS SCHNETZ SUAREZ ANDERSON McCAMMACK AYES X X X X X X X NAYS ABSTAIN ABSENT ~};J.~ML The foregoing Resolution is hereby approved this k day of September, 2001. 't:t( ~~ alles, Mayor Approved as to form 19 and legal content: 20 By: ~~ 9.~ // City Attorney 21 U 22 23 24 25 26 27 28 SB200L25264.1 5 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss 2 CITY OF SAN BERNARDINO ) 3 I, City Clerk of the City of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of Mayor and Common Council of 4 the City of San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. 5 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the 6 official seal ofthe Mayor and Common Council of the City of San Bernardino this day of ,2001. 7 8 9 10 City Clerk 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB2001 :25264.1 6 2001-279 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB2001:25264.1 EXHIBIT" A" COPY OF WRITTEN OBJECTION TO 2001 AMENDMENT (Central City South Redevelopment Project) 7 \ . . , . 2001-279 EXHIBIT "A" " i 0.. ~;~~. ~..;~;:........ :J 4463 RainbOW VIsta Dr. Fallbrook, CA 92028 . 2001-279 1 2 3 4 5 6 7 8 9 10 EXHIBIT "B" WRITTEN RESPONSE OF THE CITY OF SAN BERNARDINO TO WRITTEN AND ORAL OBJECTIONS TO THE 2001 AMENDMENT (Central City South Redevelopment Project) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB200L25264.1 8 2001-279 EXHIBIT "B" Response to Written and Oral Objections Obiection #1 (Written Objection) Letter from Henry J. Thys 4463 Rainbow Vista Drive 195 West Bennett Street San Bernardino, CA His ten year lease was just signed in 2000 would like to be informed of information. Response to Objection # 1 The Agency has no plans to acquire or relocate any individuals or businesses in the Project Area at this time. However, if the Agency were to consider the acquisition of the Thys Property and then relocation of the business on it, the Agency shall comply with all Federal and State property acquisition and relocation procedures. These procedures include written notice of intention of the Agency to prepare an appraisal of their property before any final decision is made about acquisition of the property. The Thys letter states that the property owner has just signed a ten-year lease in 2000. If the Thys property ever becomes a candidate for acquisition by the Agency, a series of notices would be provided to both the owner and any tenant. Notice of intent to appraise along with written offers would be presented in person and by mail. For tenants, relocation benefits are required by law and would include suitable referrals, moving expenses, re-establishment expenses, and compensation for loss of goodwill. These benefits are not subject to income tax. The property owner will have 2 to 3 years to reinvest for federal tax purposes (IRS tax code section 1033), assessed value of the property can be transferred to new (like) property in any county in the State (purchase price within 120% of compensation paid by agency for property purchase), and the Agency must pay for all escrow and title costs. Attached is a "Summary of Business Relocation Benefits" that highlights the benefits and process the Agency must follow if a business were to be relocated. Finally, before the Agency will consider the acquisition of the Thys Property or that matter, any other non-residentially zoned or used property in the Project Area, the Agency will solicit the interest of owners and business tenants on that property in becoming "owner participants" under a specific redevelopment agreement with the Agency. Mr. Thys and the new tenant are both encouraged to contact the Agency to investigate whether the Agency may be of assistance in the expansion of the business currently being conducted on the property. The Agency believes that the reinstatement of the power of eminent domain in the Project Area will prove to be an important resource in assisting existing owners and businesses to grow and expand in the Project Area. Without this resource, the capacity 2001-279 of the Agency to assist owners and businesses to remain in the Project Area and to improve and redevelop their property, and neighboring properties is reduced. Land assembly considerations are often times a crucial part of the decision of any business to remain in an area and expand or move to another location. The ability of the Agency to support the efforts of current owners and existing businesses to expand and grow in the Project Area is a central focus of the Agency's efforts to prevent and eliminate the spread of blight. In view of the foregoing factors, this objection is overruled. Obiection #2 (Oral Obiection) Mr. Keller had to leave for a medical appointment and because he was not able to get the answers to his questions, he opposes. Response to Objection #2 No response provided as no specific oral objection presented. Obiection #3 (Oral Obiection) Ms. Francine Wixon 799 East Avery Street San Bernardino, CA I own in a partnership 7 Yz acres in the CCS area. A family member owns an adjacent 2-Yz acres. So I am speaking for 10 acres and a third of my parcel. I am asking that the proposal be denied for several reasons. Mr. Schnetz gave us a discussion on how appraisers will go ahead and appraise the value and if they cannot find any sales comparables going back a year or two that they will go outside of the area and then they have the ability to adjust down. San Bernardino will probably be adjusted down because we have not had very good economic conditions here in the last few years. We have a high crime rate. We have school problems and these are the issues that would be taken into consideration. Probably the most important reason I'm asking you to deny it is because for the last ten to fifteen years you have controlled my life on this property. I purchased the property because the City of San Bernardino asked me to buy the property. Mrs. Estrada and I have discussed this for years, she has been very, very helpful. She knows our story. We had a business on E Street, we were told they were going to take us by eminent domain and they would allow us to buy or they suggested that we buy this property on G Street to move our business. In the process of doing this, you changed the zoning rules. So when we went to get a zoning permit you made so many requirements that it became unfeasible for us to build on our property. And my husband put his business some place else. We have tried to sell the property for the last ten or fifteen years and you keep changing it. And what you're doing is you're putting my value down. Now we are recreational. Your ballpark is there, which you're losing money on and nobody wants to put anything else there. So you are controlling my life. I want to be able to control it myself. Somebody comes to me and offers me XYZ for it and I don't like it, I want to be able to say no. And if you have the power for the next twelve years to take it by eminent domain, I don't have that power, you do. If they offer you XYZ and you want to put a deal together you can say yes and you can take my property. I am too old to start fighting in the court oflaw, but if it were necessary we would do that. I just heard a conversation 2001-279 when I was waiting for you to reconvene that this morning that you were talking about possibly putting a high school there and you didn't think it was compatible. Everything we have come to the City for has not been compatible to your current zoning. Please do not allow this to go through and then think about re-zoning this area to what would be more suitable to freeway traffic and allow the people that are there to live their lives and go on with their lives. So please, I'm asking you to deny this amendment. Response to Obiection #3 It is important to note that since the Project Area's inception the Agency has not utilized eminent domain to acquire property. In addition, the Agency has no plans to acquire or relocate any individuals or businesses in the Project Area at this time. However, staff believes that it is very important to reinstate this power because it is essential in addressing the remaining conditions of blight in the Project Area. If the Agency determined it needed to acquire a property to further redevelopment efforts in the Project Area, the Agency would need to determine fair market value for the subject property. As indicated in the response to the Written objection above, a number of specific procedures would need to be followed before the Agency would consider acquisition of any property on either a negotiated basis or by condemnation. The Agency is required to pay at least fair market value for any property it acquires. To accomplish this the Agency would seek an appraisal from an independent appraiser that is a member of the Appraisal Institute. Appraisers utilize three methods for determining the fair market value of the subject property (depending on the land use of the subject property). The three common approaches, all derived from the market, are as follows: . The Cost Approach is determined by obtaining land value of the property and the cost to replace or reproduce the improvements on the property, less any physical deterioration, functional obsolescence or economic obsolescence found on the property . . The Comparison Approach utilizes properties of similar size, quality and location that have been recently sold to determine value. Often in a slow market it is necessary for the appraiser to enlarge their area of search for comparable properties. This is especially true for unique properties where there may only be a few such properties in a county. It is the appralser's responsibility to ensure that like properties are review to ensure a viable appraisal. . The Income Approach provides an objective estimate of what an investor would pay based upon the net income the property produces to determine value. This approach is of more importance in ascertaining the value of income producing properties and is utilized less for determining value in residential type properties. For some properties all three methods are employed by assessing the proportional relevance of each approach. This evaluation leads to the determination of the property's fair market appraised value. The owner of the subject property has the right to negotiate market value presented by the Agency and can obtain their own appraisal or 2001-279 appraisals to support their opinion of value. The Agency must negotiate in good faith with property owners, providing them with the pertinent data use by its appraiser to determine value. In reality, most acquisitions by public agencies are accomplished through negotiation and never lead to condemnation or a hearing at the court level. If the Agency were to initiate relocation proceedings after acquiring a property, the Agency would need to comply with all Federal and State relocation guidelines. Concerning the zoning issues mentioned in the oral objection, the Redevelopment Plan of the Central City South Redevelopment Project is subordinate to the General Plan and zoning codes established by the City Council and the Planning Commission. The Redevelopment Plan must be in conformance with the General Plan and cannot change the City's zoning codes. Land use designations and zoning codes are established by the City Council with input from property owners and the Planning Commission. Concerns about the zoning classification of property, specific development standards which may be applicable to particular commercial or industrial uses of property and any change to the City's land use designations or zoning may be processed through the Planning Commission and City Council upon the request and application of a property owner. For the foregoing reasons, as well as the reasons set forth in the response to the written objection, above, this oral objection is hereby overruled.