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HomeMy WebLinkAboutCC Min 1986-05-19 5~12-86 / 5-19-86 " Mitzi Merten, 13th street, expressed her feeling that the CUP for Hennessey's should have been extended for only a year, inquired if the conditions apply indefinitely, and reported her understanding several ABC conditions had been placed en Hennessey's, one being that they maintain their restaurant status. Mr. Nelson advised that conditions of approval apply for the term of a permit, and reported he had met with Ms. Mortcn this date and had agreed to request the ABC conditions for Hennessey's. There were no other Oral Communications; Mayor Risner declared Oral Communications clesed. I i. ADJOURNMENT Brownell moved, second by Wilscn, to adjourn the meeting to Monday, May 19th at 7:00 p.m. AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried The meeting adjourned at 8:40 p.m. of the , Approved' 'tt '0" C9.. ~ M"AI Mayor ) Attest: I .: Seal Beach, California May 19, 1986 The City Council of the City of Seal Beach met in regular adjourned session at 7:00 o'clock p.m. with Mayor Risner calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Risner Councilmembers Brownell, Clift, Grgas, Wilson I Absent: None Also present: Mr. Nelson, City Manager Mr. Stepanicich, City Attorney Mr. Joseph, Assistant City Manager Mr. Baucke, Director of Development Services Mr. Thomas, Finance Director Mr. Osteen, Recreation Director Mrs. Yeo, City Clerk 5-19-86 WAIVER OF FULL READING Wilson moved, second by Brownell, to waive the reading in full of all ordinances and resolutions and that consent to the waiver of reading shall be deemed to be given by all Councilmembers after reading of the title unless specific request is made at that time for the reading of such ordinance or resolution. I AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried AGENDA AMENDED Clift moved, second by Brownell, to amend the agenda to include a proposed Resolution. AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried RESOLUTION NUMBER 3599 - SUPPORT OF FAIR PHONE RATES (LOCAL AND ZUM CHARGES) Resolution Number 3599 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH IN SUPPORT OF FAIR PHONE RATES." By unanimous consent, full reading of Resolution Number 3599 was waived. Clift moved, second by Wilson, to adopt Resolution Number 3599 as presented. AYES: NOES: Brownell, Clift, Grgas, Risner, Wilson None Motion carried I PROCLAMATIONS Mayor Risner introduced Mrs. June Roughton-Hopkins, resident of the community and President of the Seal Beach Coordinating Council, and read proclamations designating Mrs. Hopkins as Seal Beach's Ambassador of Good will to several Chinese communities that she would be visiting on a forthcoming trip. Mrs. Hopkins expressed appreciation to the Council. I DISCUSSION ZOETER SCHOOL SITE The Assistant City Manager presented the staff report, specifically noting that the subject site is comprised of 4.97 acres or 216,525 square feet and is presently zoned Public Land Use. He reported that the site was declared surplus by the Los Alamtios School District on June 13, 1982, subsequent to that two appraisals and one appraisal review was conducted of the site, the 1985 appraisal setting forth a value of $5,370,000 based upon a land use of commercial along the Pacific Coast Highway frontage and the balance residential, and reported that on May 14, 1986 the City received formal notification from the District of the availability of the site to which the City has sixty days to respond. Mr. Joseph noted the present use of the property consists of two preschools, three tennis courts and a baseball field. Mr. Joseph reviewed specific provisions of the State Education Code, referred to as the Naylor Act, regulating the disposal of surplus school playground, playing field and recreational property, which allows the City to lease or purchase thirty percent of the property at a cost of no less than twenty-five percent of fair market value, specifically noting that the value of the Zoeter recreational property, 1.4 percent less than the existing ball field, under the Naylor Act would be $402,750, and purchase of the entire site would be $4,161,750. He reported that the additional 1.4 percent of the recreation site would constitute an additional $162,000 calculated on the appraised value ~roportionate throughout the site. Mr. Joseph concluded 5-19-86 that in addition to the present use of the property for child care and recreation, the non-profit Old Zoeter School Foundation has proposed a third use, a community theatre within the main auditorium building, therefore prioritization of the use of the property is essential in determining the City's actions relating to the site. Mr. Steve Friedman, 3520 Hughes Avenue, Los Angeles, former Seal Beach resident and co-founder of the Old Zoeter School Cultural Center Foundation (OZ), suggested that consideration could be given to leasing the thirty percent of the site under the Naylor Act at a minimal rate, and pursue the purchase of the remainder of the site with remaining funds. Mr. Friedman read a prepared statement of the Old Zoeter School Cultural Center Foundation, setting forth their goal to preserve this historical site, retain the day care and pre-school facilities, and to refurbish the auditorium facility to provide a community theatre. Mr. Friedman submitted a petition signed by ninety-nine attendees of the pre-school in opposition to the sale of the Zoeter site or any change that could result in the loss of the day care center at this location. Mr. Friedman reviewed several funding sources that could be taken into consideration, such as exchange or development of city-owned property, inclusion of Zoeter indebtedness in a development agreement for the Hellman property, grant funds, renegotiated terms, annual City contribution to an interest bearing account over several years, a bond issue, etc., noting also the potential for a minimum of $130,000 generated annually from lease of the main building based upon a $1.00 per square foot formula, plus the pre-school rents. Mr. Friedman acknowledged that three grant sources have been identified for construction of the theatre, those monies not available for purchase of property, he also noted that one dollar per square foot is a conservative estimate for the lease of the main building. Mr. Friedman concluded that any division of the Zoeter site is unacceptable to the OZ Foundation. Mr. Harlan Kelley, 1125 Catalina Avenue, spoke on behalf of the Seal Beach Tennis Club and submitted a petition bearing signatures of persons supporting retention of the tennis courts, also spoke in support of retaining the entire Zoeter site. The Mayor suggested that all persons interested in retaining the Zoeter site should make their presentation before the School Board. Mr. Friedman responded that it is the intent to attend the June 2nd Board meeting. Carolyn Huber, 13650 Del Monte Drive, spoke in support of a community drama center and also for a health/exercise facility at the location, and inquired why the City would consider rezoning the property for highest and best use. The City Attorney clarified that under the Naylor Act the City is required to zone the property similar to adjacent zoning. He stated that even though the property is presently zoned for Public Land Use it would be unlawful for the City to attempt to value that property for the purpose of acquisition under its present zoning, the City would therefore be required to rezone the property to commercial and residential. Mr. John Stillwell, 424 Jade Cove Way, stated he wished to speak on behalf of the children and youth of Seal Beach, expressing his feeling that the loss of the Zoeter site would severely impair existing recreation programs, and also voiced his objection to relocation of the recreation facilities behind the Police Department. Mr. Stillwell reported that since the merger of the school districts maintenance of the McGaugh site has deteriorated, that I I I 5-19-86 I site now basically maintained by parents. Mr. Dennis Buell, 501 Riviera Drive, spoke regarding the lack of cooperation of the Los Alamitos School Board and maintenance of the McGaugh School site. Mary Testerman, 615 Ebbtide, pre- school teacher, spoke for retaining the entire site, however the ball field, playground and day care facilities would be her highest priority. There was discussion of relocation of the child care facilities to meet the community's needs should that situation arise. The City Manager noted that a number of private companies are now providing child care facilities in cooperation with local government agencies, shopping centers, etc. Ms. Testerman responded that most parents would be unable to afford such private care facilities. Mrs. Carla Watson, 1635 Catalina, referred to the Zoeter site as an historical landmark of special significance to the City's past, proclaiming the community's need to retain all of the recreation facilities at the site, concluding that this community can not allow the Los Alamitos School District to dispose of this property. Mr. Stan Anderson, 632 Balboa, recalled his experiences as a participant and coach at the Zoeter site and the need to retain this location for future open space/recreational use, and urged that all interested citizens convey their feelings to the School District. Mr. Larry White, 1135 Driftwood Avenue, expressed his opinion that the site should be retained even if it necessitates raising taxes, and reported his particular interest in retaining the auditorium which could be used for the Haydn orchestra performances which have outgrown the present libra~y facilities. The City Manager noted that pursuant to Proposition 13 a two-thirds vote would be required to implement a special tax, that an investigation could be commenced to determine the costs involved for an assessment district, and likewise a two-thirds vote required under the Mello-Roos Community Facilities Act, noting the City's time limit of sixty days to notify the School District of its intentions. I I Judy Adams, Sunset Beach resident, spoke in support of the quality of the day care facility and its teachers, noting her use of this facility as a single parent. Martha Mickens, 240 - 5th Street, referred to a previous comment regarding private child care centers, expressing her feeling that their location within a shopping center would be an inappropriate location, however questioned where existing care centers could be located in the event of the loss of the Zoeter facilities, and asked whether it would be determined to be acceptable to bus pre-school children to another area as Seal Beach school age children are now. She suggested a fund raising effort similar to that for rebuilding the pier could be initiated, and spoke in support of retaining the entire Zoeter site, most pa~ticularly the child care facilities. Ms. Debbie Daniello, 408 Marble Cove, Over the Rainbow partner, pointed out the importance of good child care facilities to the community, noting the necessity for both parents to be in the work force, as well as the importance of attracting families to the community. Ms. Daniello stated that when the school opened in 1982 their facilities consisted of one classroom for children under two years of age, another for pre-school children, that the school currently has eight classrooms and accommodates one hundred ninety-seven families, many of which have more than one child. She spoke in support of retaining the entire site. Mr. Bruce Stark, 204 Ocean, suggested that the City secede from the Los Alamitos School District, or float a bond issue for purchase of the site, also suggesting that the School Board should be approached 5-19-86 for an additional extension of time to resolve the funding problems. Mr. Friedman explained that between July 1984 and July 1985, there was an agreement in principal to purchase one-half of the site for under $200,000 down with payment of less than $100,000 per year, subsequent to that agreement of terms, the Board then decided to increase that amount to $500,000. The Mayor clarified that the terms referred to were $100,000 annually for three years, $500,000 annually I thereafter, the problem being that it would difficult to obtain a tenant on a short term lease that could generate monies sufficient to cover such payments. Mr. Stark also questioned the proposed purchase of the site located adjacent to Landing Avenue versus the area adjacent to Pacific Coast Highway which is more valuable, and referred to a court case which related to a city rezoning property as parkland thus reducing the value of the land. The City Attorney responded that the referenced case involved the City of Tiburon, explaining that in years past cities were downzoning school district properties to preserve certain uses by the city, the legislature then responded by adopting an amendment to the Naylor Act requiring a city to zone or rezone PLU property owned by a school district similar to the adjacent properties, therefore in this case the City would be compelled by State law to rezone the site to residential/commercial. He also stated that if the property is zoned for those particular uses, the City would likewise be compelled to issue building permits in accordance with that zoning. Mr. Stark inquired what the School District has planned for the four to five million dollars they could receive from the disposal of this site, a return of taxes, construction of a new school, and expressed his feeling that the District did nothing to acquire the property, did not spend any money on the property, however would I be receiving a windfall at the expense of the City of Seal Beach. Carla Watson again addressed the Council, stating - that Seal Beach rescued the Los Alamitos School District when they were below required enrollment through the consolidation of the districts and the attendance of Seal Beach school children, and that Seal Beach should not now be required to sacrifice the Zoeter site. With regard to prioritization of the Zoeter site, Patrice Levin, 281 Electric Avenue, stated there are very few child care centers that provide the care and service of those at the Zoeter School location, and although acquisition of the entire site would be desirable, the softball and tennis facilities are less important. The Mayor noted that the buildings in which the child care facilities are located do not qualify under the Naylor Act, the City required to pay full market value for that portion of the property. The Council again urged that all persons present attend the Los Alamitos School Board meeting and express their feelings to that body directly. Mr. Friedman requested that the City submit a request to the Los Alamitos Board for a presentation before that agency on June 2nd. Mr. Norman Shutzberger, Chairman of OZ, expressed his concern I that the Council may be looking toward saving the Zoeter site on a section by section basis, expressing his feeling that retaining the entire site is important to the environment and quality of life in the Seal Beach community, no matter its acquisition price. He requested that the City government take a strong stand to preserve this property, and requested the Council, City Manager and City Attorney make a concentrated effort legally to forestall any premature sale of the site. He stated he felt that the Board should be made aware that the City will not accept sale of a piece of property they now desire to dispose of. 5-19-86 I Councilman Grgas stated that although the provlslons of the Naylor Act state that the property must be zoned for compatible uses and the appraisal of the property was predicated upon those compatible uses as assumptions for deriving the fair market value, he inquired if any provision of the Naylor Act would prevent the District from selling or leasing the property for less than the fair market value. He noted that it could be derived as a gift of pUblic funds should that involve a private organization, however asked if that would apply to another public agency. The City Attorney responded that there is nothing in the Naylor Act that requires the School District to use the property for the highest and best use, the only issue would be from the School District's point of view as to whether it would be a gift of public funds or a breach of their fiduciary duties to their District by not utilizing the property to their economic benefit. He explained that the Act guidelines are very flexible, therefore there would not be an ultimate obligation to use the property for the highest and best use nor necessarily require the highest price, however noting that the District does have the option of pursuing that. Mr. Stepanicich explained that before the Naylor Act was amended to require a City to zone the property consistent with surrounding uses, the City would have had a major leverage with the threat of downzoning the property, now however, school districts have the right to require that they receive the highest value under the permitted zoning. The City Attorney explained that within the sixty day period, the City is required to express its intention in writing to the District that it desires to either lease or purchase the site, at which point the City and the District would be required to negotiate in good faith, stating however that there is no requirement in the Act that an agreement be consumated or finalized within the sixty day period. He noted that the Act is silent as to how long the District is required to negotiate with the City. Mayor Risner inquired if the City would be legally bound to purchase the entire site if, after negotiations, it is found that funds are only available to purchase a portion of the site. Mr. Stepanicich stated that an expression of intent is not a legal commitment to purchase the entire site since there must be an agreement between the City and the District as to the terms of purchase. He cautioned however, that once negotiations begin and if it were found that the City did not have adequate monies to purchase the entire site, the District could in turn declare that the City was not negotiating in good faith, terminate the proceedings and dispose of the property. He added that should that occur, the City would insist that they are entitled to purchase at least the thirty percent of the site. I with unanimous consent, the Mayor declared a recess at 9:00 p.m. The Council reconvened at 9:15 p.m. with Mayor Risner calling the meeting to order. I Mr. Bill Anderson, 216 - lOth Street, suggested that all factions interested in preserving the site, organize for a concentrated presentation at the School Board meeting. A member of the audience asked if the Recreation Department could send out a memorandum to interested parties noticing the Board meeting. The City Manager cautioned that it would not be appropriate for the City to be involved in organizing a presentation to the Board during the negotiating process. Discussion continued regarding the Council and staff participation before the School Board. 5-19-86 Dr. Robin Huber, member of OZ and co-founder of Pacific Theatre Guild, suggested that the OZ Foundation assume the responsibility to notify the various groups and individuals of the presentation proposed before the School Board. Dr. Huber explained that a professional theatre group is proposed to utilize the refurbished auditorium on the Zoeter site, and should the theatre become a reality it would be proposed that dinner/theatre packages be developed that I would also benefit the commercial business in the community. Dr. Huber confirmed that the auditorium would be refurbished through outside funding sources with no City funds involved. Karen Ferretti, 129 Cottonwood Lane, spoke in support of the Sun and Fun Co-op Nursery, and questioned where within the City that school could relocate with comparable rent if the Zoeter site is lost. Carol Lewellyn, 2nd Street, spoke in specific support of the Sun and Fun Co-Op, however urged that the site not be divided. Councilman Grgas noted the importance for the community and the Council to stand united and attempt to convince the Board that the amount the District is asking for the Zoeter site is much more of a windfall than is reasonable. Council expressed their understanding of the desire to retain the entire Zoeter site, however noted the funding constraints to accomplish that goal, which may necessitate prioritizing specific areas of the site. Mayor Risner suggested consideration be given to refinancing the previously issued Redevelopment Agency tax allocation bonds therefore allowing repayment of the Agency's debt to the City which could provide additional monies to purchase a greater portion of the Zoeter site, and requested that the staff be directed to prepare a preliminary analysis of this proposal for consideration of the Council. The Mayor and Council conveyed appreciation to those present I for their participation in the Zoeter site acquisition - discussion. ADJOURNMENT By unanimous consent, the meeting was adjourned at 9:57 p.m. io clerk of the Approved: I Attest: