HomeMy WebLinkAboutRDA Min 1971-03-08
3-8-71
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March 8, 1971
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The Redevelopment Agency of Seal Beach met in regular session on
March 8, 1971 at 8:00 p.m. in the Council Chambers, 211 8th Street,
Seal Beach, California. The meeting was called to order by Chairman
Jay Covington with the Pledge of Allegiance.
ROLL CALL
Present:
Chairman Covington
Members Barnes, Jackson, Lindstrom, Scheib1auer
None
Absent:
Also Present: Robert E. Myers, Executive Director-Secretary
Dennis Courtemarche, Assistant to City Manager
Bill Murphy, Director of Public Works/City Engineer
Jim Bentson, Legal Counsel
Eugene Jacobs, Special Legal Counsel for the Agency
APPROVAL DF MINUTES
Chairman Covington expressed displeasure at the brief format of
the minutes of the meeting of February 22. 1971 and asked that if
possible that all future meetings of the Redevelopment Agency be
taped and a more complete detail be presented as part of the minutes.
It was moved by Lindstrom, second by Covington, not to approve the
minutes as presented of the meeting of February 22, 1971, and that
they be redone and presented at the next meeting.
AYES:
NOES:
Covington, Barnes, Jackson, Lindstrom, Scheiblauer
None Motion carried
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PROPOSED RESOLUTIONS REGARDING PAYMENTS IN LIEU OF TAXES
Chairman Covington asked that the Executive Director-Secretary
read all of the resolutions regarding in lieu payments. Following
additional discussion concerning the subject of in lieu payments,
and dissolution, Resolution 71-6 was read by the Executive Director-
Secretary titled "A RESOLUTION OF THE REDEVELOPMENT AGENCY OF SEAL
BEACH RECOMMENDING DISSOLUTION OF THE REDEVELOPMENT AGENCY." The'
resolution was read in its entirety. Chairman Covington asked if
the members of the Agency had any comments concerning the resolution.
Mrs. Scheib1auer made the following statement regarding per position
concerning the Redevelopment Agency. She felt the Redevelopment
Agency was immoral because it takes money away from the schools.
The City had progressed for years without a Redevelopment Agency
and she sees no reason why we cannot finance public improvements
the same way as we have in the past. In other cities, no agency
existed, therefore, they go to bonds. She also indicated that
she gets calls from people saying that they like the small town
atmosphere of Seal Beach, but they don't like what is happening
with the Redevelopment Agency, and that is big development and
that's what we have right now, as a result of the Agency. She
feels that it's a stretch of the imagination to declare vacant
land near the beach as blighted. "I will never buy that theory
in a million years" she added. "My understanding of the definition
of blight, I feel, is interpreted as in the eyes of the beholder,
that would be the Agency or the City Council, calling what it
feels blight, and this I don't agree with. I do have confidence
in the members of this present Agency but we must face facts.
We will not always be the Agency. Also, we must face f.acts that
the City Council can certainly take the Agency back and what then?
That is the question. What then? Our present plan has not been
amended, we just talk, talk, talk. It still includes what it
always has. We cannot, I understand, zone. So far we have done
nothing about changing the Plan. I realize too, that someone will
say, yes, a City Council can take it back, and they can formulate
a new agency. And I think that the people are wiser now, however.
I have had so many people tell me that they did not know what
the former city fathers were up to. Now that's the way they put
it to me. I believe now they would have a very difficult time of
forming a new Redevelopment Agency."
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Mr. Lindstrom then made the following comments. He agreed with
everything that Mrs. Scheib1auer stated but also would like to
present a few more facts. The Redevelopment Agency was started
in 1967 and amended in 1968 and as far as he could determine in
going back through the plans, the purpose was to develop properties
for multiple family units in Seal Beach. Zoning requests were
made by the former Councilor the former Redevelopment Agency to
the Planning Commission who were also sitting as City Councilmen
at the time. The citizens of old town here fought the development
of the P. E. Right of Way. They didn't want the so called "Berlin
Wa 11" down on the P. E. Ri ght of Way. They wanted that open space
for parks and parking. All of the studies made by the City prior
to the Agency formation all came to the same conclusion: that the
P. E. Right of Way should be open space. So far, we have done
nothing to amend the plan for the simple reason that the Redevelopment
Agency as an agency existing to divert tax monies had to conform
with the Master Plan. The Master Plan and the Redevelopment Plan
you might say, morally are in conflict, legally they are not.
But I don't think it serves the best wishes of the citizens of
Seal Beach to divert tax monies for the benefit of private developers.
If we don't dissolve this agency, the best use of the tax monies
diverted is to put it back into public use, mainly parks and
parking or some other form of public use that the citizens of
Seal Beach will get some benefit from. The other point being that -
and this is a fact that maybe Mr. Jacobs will bear me out - under
State Law, every city in California has the inherent redevelopment
agency within its power. Any legislative body in any city can
declare the need for a redevelopment agency and it suddenly exists,
simply by declaring some area of the city blighted. We could
dissolve the agency, we could all resign. Yet here sit five
electorate citizens appointed by a City Council that exists now.
And the State law, very prudently, I think has a stipulation in it
that every chartered city over 250,000, if the legislative body
wants a redevelopment agency, then they must turn that agency over
to the electorate. They cannot operate it themselves. We here in
Seal Beach are: a small beach town with very high value properties
and you might say, we could consider ourselves a small Balboa
Island. We've been overcrowded throughout the years, run by real
estate operators and what not and oil companies wBnting to have
their foot in the door. I think now is the time where the citizens
of Seal Beach have started to take some action. They've shown up
at Council meetings; they've shown up at Planning Commission meetings;
and they even take part on the various commissions and agencies by
pressuring the City Council to appointing citizens to these boards.
The main point being that if we dissolve this agency tonight, we
can have a complete turnabout in the agency after March 30 at the
next election. And if the new City Council by a majority vote
decided to keep it under their own wing, not have public meetings,
not publish agendas, meet in separate sessions in City Hall, but
not by publicizing it, the apathy of the taxpayers, being what it
is, usually, we could be right back in the same situation that we
were before. There is no such thing as a dissolution of this
agency, morally, physically or otherwise because it says so under
State law. The only thing you can do is manage what you have
prudently and hope for the best and I would rather trust ~se1f,
~ fellow compatriots than I would a city council.
Mr. Barnes said he was confused with some of Mr. Lindstrom's
, logic to have delusions of grandeur that we will remain as the
Agency. He said that he had the utmost confidence in the people
that are sitting up here with him and that he has the confidence
that if they would be the agency with or without him, he would
have really few qualms about the agency in terms of what would
happen to Seal Beach in the interim. "But I don't have delusions
of grandeur what may happen after March 30. The new City Council
can appoint a new agency just as they can appoint five new
electorates to sit on the agency just'as they can take the agency back
to their own hands - they would have that power. So I think the
argument that the agency is inevitable is a fallacious one. It is
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not an inevitable thing. I think the main consideration as I've
said many times and has been said by others, is the agency good
for the development of Seal Beach? Now, everyone wants to be
omnipotent but I get the feeling of power just sitting up here
as to being able to decide whether Marx Dressler is going to get
any money for the children who are attending his school or not.
I'm an independent being, in that the electorate has no control
over me and ~ fellow members except we cannot really be
removed in the present situation but if I were Mr. Marx Dressler,
is this the way I would want tax money to be decided by five
individuals who are doing something that the law allows them to
do and perhaps the law shouldn't allow them to do? Regarding the
original intent of the agency, and the fact that it's blight land.
Actually, the true blighted land and many friends of mine feel
this way and their interpretation of what blight is, the true
blighted land is what is being put up over there right now.
That is blighted land. It was fine before until that edifice was
constructed. So in terms of what is blight and what is not, is
the question once again, in the eyes of the beholder. I am sure it
would not be difficult for an agency to decide that mY particular
house on Central Ave. between 4th and 5th would be b11ghted. It
could be declared blighted, just as easily as the vacant land on
the riverfront was and the P. E. Right of Way. The agency is an
interesting thing and I can see certain advantages that can come
from it and Mr. Lindstrom's comment about not trusting the City
Council is true but very undemocratic. If you can't trust your
elected people to determine the right to do good for the public,
who can you trust? I think we're being presumptuous in saying
that we trust ourselves but we don't trust those who the people
elect and that's in essence, what we are saying here. I do feel
that perhaps I could decide certain issues better than the City
Council but that's saying I should have the right to determine
the policy for the rest of the community and I'm not so sure that
that's valid. All things considered, I think the harm that the
agency has done - and I do believe that there has been harm done,
despite what people say, I do not think we would have an R & B
development if the agency didn't exist. I don't think we would have
had Suburbia without the agency. which is a mixed blessing at best.
Nothing against the people who live there, just the particu1ac
architectural styling and cramming of a number of dwellings on a
relatively small area of land. I don't think this was in the
best interests of this city. All of these things considered, I
haven't seen any good come out of the agency. Mr. Covington will
argue that we will accomplish certain things in the future and
that could very well be true. We could accomplish good for the
future. But I see ~ future, and I'm making a political prediction,
is about two weeks long or thereabouts. So taking all these things
into consideration, and being not only an idealist but a realist,
I can't see how this city will benefit at the present time by
keeping this agency.
Mr. Covington then asked for Mr. Jackson's comments. Jackson
said he had very mixed feelings about the agency. "First of all,
I'd like to say that I disagree with Martha that the agency has
promoted high density housing. It doesn't necessarily have to be
that way. The agency is an executive body, not a policy making
body. It's a body that carries out the overall master plan for
the city within the particular boundaries chosen for the project.
If the Master Plan is revised to emphasize public use, such as the
P. E. Right of Way for parking or open space, parks and so forth,
then the Redevelopment Agency is the instrument to carry that out.
The agency provides a means for raising money that is necessary
for this type of thing which in our past experience was very hard
to raise. And it's also a means to obtaining closer control of
the housing development of the Master Plan. Tax diversion from
the schools, in ~ own opinion, should be made up. They certainly
should get a comparable amount of money, say, for example, for
capital improvements which is the subject of a number of resolutions.
The overall problem of whether it's moral to divert taxes. Every
governmental agency diverts taxes. It's a problem.
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Well, I have, Covington says, because I agree with many of the points
that have so far been expressed tonight and in my own way I'd like to
refer to just some of them. 'First of all, it is absolutely certain
that it is immoral in my opinion, to ,try to have the agency accomplish
its goa~ as originally stated, in the method that it was originally
outlined. For it to accomplish these goals, that was essentially
the use of public powers utilizing public funds to enhance the
developmental value of areas within the plan for commercial benefit
has to be the greatest immorality. If we, however, talk about I
morality, of diverting some monies that would otherwise go to
various school districts, I think that anyone in education,
particularly would agree that the decision that the school at any
level, is part of society's means of presenting an environment
enriched for development of the children into adulthood that
would be most beneficial to those children and society as a whole.
And I certainly cannot feel that the direction and consensus that
has been expressed by the members of the agency so far here towards
changing the direction of the agency in terms of acquisition of
land for public use, parks and open space, recreational facilities,
is fine; at least it's morally consistent with this obligation
that society has to present an enriched, total cultural environment
for our children and give, them a superior opportunity to grow up as
useful, performing citizens. So then to say that it is immoral to
accomplish this good for the children by these such developments
as opposed to letting it all go back to the schools, I am not so sure
that that is a fair evaluation morally. I think it no longer
becomes a question of relative morality and as Dr. Jackson has
stated already, there is a great deal of diversion of monies at all
governmental levels and compromise is a very normal political thing,
I think.
Covington: I think changes in the plan as proposed by members of
the agency would certainly be consistent with the benefit of the
children. Therefore, again, we have the question of relative I
morality and not total immorality versus morality and black versus
white and perhaps no long consistent with what other members of
the agency have expressed. Now, leaving that point and coming
to the issue of open space. In general there was an open space
referendum in this city several months ago as I recall, is that
not true, Mr. ~ers?" A positive answer was given regarding an
advisory ballot.
"There was no money involved, it was just a consensus or an indi-
cation of the general public will. Secondly, since the new City
Council has taken office, July 1, one of the few areas in my
recollection, there was a majority view which was the support of the
general concept of open space development and acquisition of land
for open space, use of park land; recreational facilities. I
think we'rd really beating a dead horse. I would be the first
one to agree with anyone that the original r.edeve10pment plan as
constituted and laid out was wrong and if we were only talking
about that plan or no plan at all, then I certainly would be in
favor of implementing no plan. But I don't think we're really
talking about that. I think we're talking about modifying the
plan as Mr. Lindstrom points out at a time when it's possible
to do so when it is consistent with the General Plan which is
presently under review and from all indications will certainly
rely on the concept of development for the next 20 or 30 years.
It is completely different than what was originally laid out in I
the 6D's. So if that is the case, then it makes no sense to me
to destroy the ability of the agency to get on with this oppor-
tunity. I am not saying that it will never get any better in
terms of cost for implementing the plan. Development costs will
always be higher as time goes on. For the agency to accomplish
their goals as expressed by agency members, that is to acquire
lands for public use and to acquire them as soon as possible,
dedicated to the city with the understanding that it would be
developed for recreation facilities, parks, and open space.
There has been no suitable, reasonable, logical, definitive
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alternatives of any kind for the city to perform this on its own
on a so called pay as you go basis. Pay as you go sounds very
fiscally sound and very appropriate. But if you really examine
pay as you go, you are really doing what the city has done in the
past. Is every citizen present tonight and those who are not
present thoroughly in favor and in agreement with the manner in which
development has occurred within this city? In the part of the city
in which I live, College Park East, to me, there has been an abysmal
performance in this public obligation of tr.ust that the city has to
supply an adequate amount of park land and open space land for
residents in every part of the city and from the impressions I've
received from many other citizens from other parts of the city, they
share the same feeling about their part of the city. So, if pay as
you go really means performing in the future as the city has done
in the past, then I cannot see that that is in any way an acceptable
approach if it means what you 'can afford or raising the tax rate so
you can afford some more. Raising the tax rate is a very unpopular
way ,and I don't think it will happen in the future in any significant
amount that will allow you to perform at a different rate than you have
in the past. So, if you're not gojng to do that, then pay as you go
means really you!re going to do nothing and will be able to do less
and less as the land that is available costs more than ever to
acquire. So, if until a reasonable set of alternatives is presented
to accomplish what I feel is the direction that the agency majority
has indicated that they would like the agency to go, that is,
acquisition of a maximum, optimum amount of remaining undeveloped
land for public use supported by a minimum of the remaining land
developed for commercial use, I have to support the agency and I
can certainly consider an opportunity in which to dissolve. But
because no suitable alternative plan has been presented, I look
upon my appointment to this agency as working for all the people
of the city and I cannot honestly say that an adequate amount of
public open land, recreational facilities exists. We have a last
time opportunity to reverse this trend. We are faced with a poor
ratio between the number and population density and whatever the
technical terms for public land are. How else are we ever going
to reverse that except how in one swoop in a reasonably short
period of time. If we don't reverse the pattern, let's at least
get back to some meaningful ratio that has not existed in the
past; it is certainly not going to exist in the future if we drop
back and rely on the pat phrase of pay as you go. It doesn't
really stand up.
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Mr. Barnes then made some comments regarding "pay as you go."
If this community is unwilling to pay for parks and the only way
this city is going to get parks is to divert them from schools and
mosquito abatement, etc., then this city doesn't deserve parks.
Mr. ~ers and I had a conversation after the last meeting and if
we build a new sewage treatment plant, and I can't remember the
figure he used, but it would cost every citizen in Sanitation
District #3. I went home and figured it out for a new sewage
treatment plant, that would seemingly be better than the present
one we have and better than District #2. I figured out it would
cost me $40 a year in additional taxes on my house. I would be
willing to pay that $40 a year in order to get a sewage treatment
plant that did not have to have a sewage treatment plant built from
the diversion of taxes from schools. But the problem here as Mr.
Covington raises it, it's a good point, that while I would be
willing to pay the $40, most of the community would not. Therefore,
we do not get a sewage treatment plant,. So our alternative is
either to tie into District #3 or go on as we are. The alternative
is this really - if we need a sewage treatment plant, and that has
been established. But let's say that it is. That people are not
willing to pay for it and still cannot favor diverting money from
the schools and these other agencies to pay for one when the
people don't deserve parks if they're not willing to pay for it.
And to use this scheme, a device, a law, to give the people
something that they really don't want because they're not willing
to pay for it to me is not right. It is not correct. Mrs.
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Scheib1auer would also like to mention that we're talking of open
space. The P. E. Right of Way has been sitting there vacant
and the tracks were taken out some years ago. But there could
not have been any purchase on that because the property was in
litigation and now as I understand it, the city did on purchasing
that portion of the right of way that was available and that from
15th St. to Seal Beach Blvd. They also, at the same time, I
believe, are leasing on a purchase'option basis Bullet Hill Park.
So the city is moving itself in that direction toward open space.
In so short a time they certainly have taken a good stand in that
direction.
Mr. Lindstrom: For a point of clarity and to stir the pile a
little more and to let the people know what the agency is in for,
I ~rou1d like Mr. Myers at this time to present to the agency and
those members that weren't present at the Sanitation District
meeting Saturday morning, the proposals and the results of that
meeting as to what the plans of the Sanitation District are and
the decision they made and proposed alternative action being
proposed to them to prolong the life of the agency. Mr. Covington
wanted to know if that was related to what the discussion was nOW
focused upon.
Mr. Lindstrom indicated that it was pertinent to the discussion.
Barnes asked the question that if it was an action affecting the
agency, wouldn't it normally come in the report of the Executive
Director-Secretary and the report appears to have been omitted
from our agenda. The report generally follows the approval of
the minutes so in that sense, maybe it would be in order besides
what Mr. Covington says along this line of inquiry. "I'm trying
to establish that," Mr. Covington said. Barnes said that type of
activity comes in the report. Mr. Myers responded and gave a brief
resume" of what was actually presented concerning construction
costs, method of payment for tying'in with Sanitation District #3. I
He pointed out that the issue was not one of who will finance but
whether or not we would connect with Sanitation District #3 which
was approved by the Sanitation District at their Saturday meeing
of March 6.
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Mr. Barnes stated that his question would be once again, that the
members of the Sanitation District have not had an opportunity to
voice their pleasure about solving the sewage treatment problem.
It might not be a bad idea to have some type of advisory opinion
from the electorate in terms of presenting alternative proposals
and allowing them to decide which they would favor. But as it
stands now, a majority of the members of the Sanitation District
do not even live in the district themselves. So what I'm getting
at is you say these alternatives were presented. I think one
alternative was omitted. That very well may be the one that the
people living in that district might prefer if they knew what the
other alternatives were. MYers responded that he was under the
impression that the alternatives that were under discussion were
those that were presented to the Board.
Barnes felt that there is no way the sanitation problem can be
resolved in just one way. Myers again responded, stating that the
direction that was given by Sanitation District #4 and that is
they authorized that we pursue proposals for engineering to connect
with Sanitation District #3 and that we get a proposed agreement I
between Sanitation District #4 and Orange County Sanitation District
as far as annexation is concerned. And funding is an issue that
has not been settled. Myers added that one thing you have to
consider that we couldn't resolve, in any proposal that you're
talking about, in the city, Sanitation Distr~ct #4, perhaps the
Redevelopment Agency, a Building Authority and Sanitation District
#3 and I would qualify any statements that I make that anyone of
those agencies could present a problem in the finalization of this.
We just have to naturally recognize that all those agencies are
not in every detail covered. MYers reaffirmed this. Chairman'
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Covington then asked Mr. Jacobs if he had any comments concerning
the validity of this resolution.
He indicated that the resolution as a legal document does nothing
because it doesn't actually consent, as required by the statute,
that the City Council should vote to dissolve is simply a suggestion
on the part of the agency. Again', legally it accomplishes nothing
except the statement that it makes. He indicated to consent to
dissolution would require a unanimous vote.
Mrs. Dorr pointed'out that the agency had neglected to mention the
other alternative of the environmental tax. She felt that it's
childlike for any adult on a board to consider that there is a
magic'way to make money. People should recognize that they are
going to have to pay taxes in one form or another. You still have
to pay for things. It's simply a matter of degree and to what extent.
Mr. Covington responded to Mrs. Dorr's remarks. Mr. Bishoff
stated that he was not sure how the taxes were diverted or where
the taxes, come from. Myers responded to the question and explained
the tax diversion method of the Redevelopment Agency. Mr. Jacobs
also ,responded indicating that it was not on a parcel by parcel
basis but the total project. Mrs. Dorr expressed confusion as to
why the members of the agency feel that because they make some
plan that should benefit the citizens in their judgement, that
this is going to stand up with the next council. What confidence
do you have that they don't want to have the agency, back and
handle it their own way? You said we should do it right away,
within a year or two. There's going to be an election March 30.
The~'s going to be some following elections. People go out of
office. The majority shifts. That's the way life happens.
They ,may not want that to go on. And because you put in some soft
wear in here for open space seems to be presumptuous of all five
of you to believe that you can control a future council. Now
why do you?
Covington expressed that he hoped he had never given the impression
that he was trying to control any council but indicated he had no
idea what the next city councilor the one after that would do.
"I do know what I feel is right. I do know what responsibility
I have been given as being appointed to this agency. I do know
what the apparent public consensus is which is already reflected
in the public stands taken by the General Plan Review Committee
by a 'group of 21 ~itizens specifically charged with reviewing
the General Plan to make it more amenable with current public
desires. The Agency must agree. Any agency plan must agree with
the"General Plan. Therefore, I take the position that, true, I
cannot foresee the future. I don't know what will happen. But I
do know what is possible now. I do know what the present publiC
consensus appears to be and I have the opportunity and obligation
and responsibility to make whatever small efforts are available
now to accomplish those public wishes. And future counci1s,if
they change that, that is as it should be. But we have an
obligation to act now: not predict what's going to be in the future.
Mrs.',Dorr then said that tax increment is the real purpose of this
whole situation. That is the big key word - tax increment - tax
increment - tax increment. We're going to need it for the sewer
plant we've been told for months and months and months. Then
now will there be anything left for open space?
Covington responded that it is anticipated with the completion of
R & B that the Redevelopment Agency will get between $240,000 and
$250,000. 'Frank Sales asked Mr. Jacobs the following questions:
"I think you're aware that the Council recently voted to spend
$100l000 to buy a portion of the P. E. Right of Way. Now here's
my question - the Leisure Wor1ders are assessed a tax on the Seal
Beach schools. They send no children to school. They have no
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complaints about this, however, it seems to me that the Council,
by spending the $100,000 out of the general fund to buy this park
is really taxing them double when indeed, a park could have been
purchased out of redevelopment money. Now I understand that their
taxes could go up to make up for what's necessary to send those
30 some children from Suburbia to school. I would like to know
really how much it costs those Leisure Wor1ders for that difference
in schoo 1 taxes."
Jacobs said that if you're talking about the fiscal impact on I
taxpayers in Seal Beach, use of the Redevelopment Agency funds is
a relief of the burden on the taxpayer in the City of Seal Beach
to the extent that that money would have had to come from 100%
on the dollar from that taxpayer for school purposes or city
'purposes. No question, fiscally, this project, the more you use tax
increment funds, the better off the taxpayer of Seal Beach is
fiscally. The issues here, however, go well beyond these things.
But the problem of whether or not to have density, parks and so
forth is where the issue stands. Fiscally, there really is no
question about the taxpayers coming out better.
Sales indicated he understands that and posed one more question.
"MY understanding is that you need more fire protection in downtown
Seal Beach prior to any more building. This fire station could
be on the Redevelopment Agency land. It would not, however, just
benefit Riverfront Redevelopment area. Could this be built from
Redevelopment Agency funds?" Jacobs answered that to whatever
extent it benefits the project, yes.
Tom Brady said "I think what we're really talking about here is
what authority does the agency have? Now three new councilmen
could change the power of the council. Three of those live
outside the district, quote, unquote, Redevelopment Agency.
They're going to have to make decisions on what happens down here. I
The citizens in this end of town have not had a chance to take a
vote on whether they want it or don't want it and it appears
unfair that we didn't have that opportunity." Brady also pointed
out how the agency could have high density, high rise and a great
deal of income up to $500,000 if it continued. He feels the agency
should be disbanded and that if a new council wants to start a new
Redevelopment agency, then the people in "Old Town" should have
a chance to speak concerning this. He feels the citizens should
have something to say about'this.
Covington indicated that the only citizens involved in the
Redevelopment Agency right now are those who live in Suburbia.
Brady indicated that the agency affects all of old town. Brady
again indicated that the agency is unfair for the citizens in old
town., He referred to the proposed Suburbia project on the P. E.
Right of Way to help pay for the sewer plant and now we find out
that that money is not needed to pay for it. He again reiterated that
the citizens should have a voice in what happens regarding the
Redevelopment Agency. He doesn't feel we've had a fair vote on it.
Lindstrom indicated his opposition along with Brady against development
of the P. E. Right of Way. "I was dead against that kind of action
by the Redevelopment Agency then and I'm against it now." Lindstrom
feels that the P. E. Right of Way should be purchased for pub)ic use
and parking so that we won't have to fight the battle against I
development of the area for years to come.
Covington pointed out that this agency did not initiate the plan.
It was initiated before we came. Jacobs indicated he had rewritten
the resolution introduced by Mrs. Scheib1auer so that it would be
put on the floor and it would read paragraph 1: "The Redevelopment
Agency of the City of Seal Beach hereby consents to the dissolution
of the Agency." Paragraph 2 would state: "that the agency hereby
recommends to the City Council that the agency be dissolved."
Paragraph 3 would then read: "This resolution is effective if the
City Council shall assume all responsibilities, debts and obligations
3-8-71
109
of the Agency at the date of dissolution and if all tax and other
revenues due the Agency from the 1970-71 tax year shall be used to
repay the City of ,Seal Beach for funds advanced by the City to
the Agency." "That, I think, would have some legal effect," he
indicated, although that was part of the resolution. It would
also require an order from the City Council by a majority vote
that the dissolution be done.
I
Covington then entertained a motion to approve the amended resolution.
It was moved by Covington, second by Lindstrom. Covington invited
more comments from the floor.
I
Mr. Leddy spoke. commenting that the General Plan Review Committee
had requested the agency not to take any action whatsoever until,
the General Plan Review Committee had completed its General Plan
study. Leddy asked Jacobs if there was anything in the Redevelopment
Agency documents that prevents these people on the Redevelopment
Agency from voting themselves a salary. Jacobs said that any
salary would have to be approved by the City Council. Leddy
indicated that the point he is trying to make is that the people
on the agency keep searching for reasons to keep the agency in
existance when he feels that they're sure the majority of people
that' are aware of the agency and understand it and the diversion
of taxes from the other agencies are opposed to the agency. "I
keep hearing any explanation of tax diversion; to use an example,
vacant land. And the taxes from that land continue to go to
other agencies, for instance, schools, only that improvement
does not go to the schools. Another thing happens that you never
mention, at least I haven't heard it mentioned. Suburbia is a
good example. The schools still get the same taxes from the land
that they got before the homes were built except that they now
have 52 more students going to school from there. It's not only
the Seal Beach school district but the Huntington Beach school
district which is also affected. The junior colleges are also
involved and the Redevelopment Agency isn't going to pay for
those. "
I
Both Covington and Jackson responded to Mr. Leddy's comments.
Jackson also asked about altering the present plan. He asked
what the mechanics actually were of specifically changing the
designations of housing development, parking space, parks, public
use, etc. Jacobs answered that the Redevelopment Agency could
pass a resolution which would suggest to the City Council the
changes to be considered. A joint session could save time. It
requires a three week notice. It would have to go the Planning
Commission and they have 30 days to act on this and would make
recommendations either for or against the changes and would then
be forwarded to the City Council. Once the recommendations are
made, it is in the hands of the City Council to pass an ordinance
amending the plan. '
Mrs. Tom Brady asked what the agency can do for this town. Jacobs
answered that there is no question, fiscally, that it is of benefit
to the residents of the city since for example, you could pay 25%
from normal taxes and perhaps 75% from other taxing agencies
through. the Redevelopment Agency. Mrs.,Casarea asked how long the
agency had been in existance with the citizens for it. The answer
was about five months. She asked questions regarding conformance
of the Redevelopment Agency Plan to the General Plan. Members
then discussed the question of whether or not they were a policy
making body.
Dr. Jackson then asked if we passed the resolution as worijed by
Mr. Jacobs, then what happens to the plan? Jacobs indicated it
would be his recommendation that if you have all the votes then
there is no argument as to what you want to do. I would recommend
that an amendment to the Redevelopment Plan which in effect,
terminated the Redevelopment Plan and as long as the City Council
3-8-71
1~O
~
picked up all the responsibility, let the City Council work its
way out of this contract. There are one or two things in this
contract which I think ought to be seriously looked at and to see
what responsibilities there are. Unless the City Council did
pick that up, I don't think you can effectively dissolve the
problem. Questions were raised from the audience regarding
ability of Mr. Jacobs to recommend and participate with the
Redevelopment Agency Board.
Covington answered that he was special legal counsel to the
agency and was at the meeting at the request of the agency.
Jackson then asked what we're voting on, is it to dissolve the
agency or are we amending the plan? Jacobs answered that the
only way the agency cou~d be dissolved is by a vote of the City
Council. All the agency would be doing would be voting and
consenting to dissolution. If the vote is unanimous by all five
members which would then require action to be taken by the City
Council. The actual act of dissolution is the City Council's.
The resolution does not legally amend the plan. The problem
tonight is that you're faced with an election in a couple weeks
and you want to undo two or three years work. I'm not sure
that you can do that. I think the resolution that you are about
to vote on comes closest to it followed by a resolution of the
City Council ordering dissolution. In my legal judgement, that
would do it. The entire problem can't be cleaned up in a
matter of two or three weeks.
I
Carl Sandfi11 asked can't this be dissolved by an emergency
action. Jacobs said there is no way of overcoming a three week
notice. Mr. Fuhrman asked about an emergency ordinance and three
days provisions. Jacobs didn't feel that an emergency ordinance
would have any effect. He reiterated that the minimum would be
three weeks because the notice of heating provisions in the State
Code. A vote was then taken on Resolution 71-6.
I
AYES:
NOES:
Scheib1auer, Barnes, Lindstrom
Jackson, Covington Motion ,carried.
The resolution would pass and would be ineffective as far as
consent is concerned according to Section 33140 of the Community
Redevelopment Law.
The Redevelopment Agency recessed at 9:53 p.m.
The Agency reconvened at 10:05 p.m.
At 10:07 p.m., the Redevelopment Agency recessed to Executive
Session.
The Agency reconvened from Executive Session at 11:17 p.m.
Resolution 71-7 introduced by Mr. Lindstrom and titled "A RESDLUTION
OF THE REDEVELOPMENT AGENCY OF SEAL BEACH" was presented. It was
moved by Covington and seconded by Lindstrom to approve Resolution
71-7. Barnes felt that it was discriminatory to pay one school
district and not another. Mrs. Scheib1auer felt that she would be
against giving back money to school district at all and because
once we start giving money back, there is no reason for the agency
to exist. It should be dissolved.
I
AYES:
NOES:
Covington, Jackson, Lindstrom
Barnes, Scheib1auer Motion carried
Barnes introduced a resolution 71-8 "RESOLUTION OF THE REDEVELOPMENT
AGENCY OF SEAL BEACH AUTHORIZING PAYMENTS TO ALL SCHOOL DISTRICTS
AFFECTED BY THE FORMATION OF THE REDEVELOPMENT AGENCY OF SEAL BEACH."
The motion failed for lack of a second.
3-8-71
1~
Covington asked that the Executive Director-Secretary prepare
amendments to the Redevelopment Plan to be presented to the
Redevelopment Agency in its next meeting.
An amended agreement with R & B Development Company was presented
to the Redevelopment Agency by the City Attorney. It was moved
by Covington, second by Jackson, to approve the agreement.
I
AYES:
NOES:
Covington, Barnes, Jackson, Lindstrom, Scheib1auer
None Motion carried
ORAL COMMUNICATIONS
During oral communications, Mrs. Casares asked questions of Mr.
Jacobs regarding the decision of declaring land blighted. Mr.
Jacobs responded it was the authority of the City Council, after
public hearings, to declare areas of land blighted by ordinance.
Mrs; Casares then asked if low cost housing could be put in the
redevelopment project area. Jacobs responded only if it's part
of the redevelopment plan.
Further discussion followed relating to amendments to the general
plan and their effect upon the redevelopment plan. Jacobs was
questioned by Mrs. Casares about conflicts between changes in t~e
zoning laws of the city and the redevelopment plan. He answered
that changes in zoning cannot conflict with the redevelopment plan.
Upon further questioning by Mrs. Casares, Jacobs stated that the
original plan of the redevelopment agency was to maximize private
development and minimize public expenditures.
The meeting was adjourned by the Chairman at 11:42 p.m.
I
Executive Director-Secretary'
I