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09/27/1979CITY OF GRAND TERRACE COUNCIL MINUTES ADJOURNED REGULAR MEETING - SEPTEMBER 27, 1979 An adjourned regular meeting of the City Council of the City of Grand Terrace was called to order at 12354 Mt. Vernon, First Baptist Church of Grand Terrace, Grand Terrace, California, at 6:06 p.m. on September 27, 1979. PRESENT: Tony Petta, Mayor Thomas A. Tillinghast, Mayor Pro Tempore Jack Allen, Councilman Hugh J. Grant, Councilman Seth Armstead, City Manager John Harper, representing Ivan Hopkins, City Attorney Myrna Lindahl, Executive Secretary/Deputy City Clerk ABSENT: Doug Erway, Councilman Ivan Hopkins, City Attorney Joe Kicak, City Engineer The meeting was opened with invocation by Baptist Church of Grand Terrace, followed Floyd Rinehart. Page one - 9/27/79 David Burckhardt, Minister of Music, First by the Pledge of Allegiance, led by CONTINUED JOINT PUBLIC HEARING - CRA & CITY COUNCIL Continued Joint Public Hearing of the Community Redevelopment Agency and the City Council on the proposed Redevelopment Plan and Draft Environmental Impact Report for the Grand Terrace Community Redevelopment Project. Mayor Tony Petta opened the Joint Public Hearing, and the following citizens addressed the Agency and Council: Gary Walker, 12788 Fremontia; Dolores Kossman, 22735 DeSoto; Roy Nix, 12173 Country Club Lane; Steve Kiacz, 11809 Holly St.; and B. E. Gigandet, 22743 Miriam Way. The following citizens spoke against the project: Don Reeder, 12474 Vivienda Avenue; Tom Ogden, 22130 Tanager St.; Mel Lynn, 11798 Kingston St.; Ed O'Neal, 22608 Minona Drive, stated that he had petitions against the project with 65 citizen signatures; and Darlene Stormes, 12218 Warbler Avenue. The following citizens spoke in favor of the project: John Lotspeich, 22111 Newport Avenue; and Barney Karger, 11668 Bernardo Way. Mayor Petta temporarily closed the Joint Public Hearing and asked Marshall Linn, Urban Futures Incorporated, to review the program. Mr. Linn stated that, due to recent legislation, the City of Grand Terrace could be limited to a $20,000,000.00 bond issue, and the mortgage money would have to be used within nine months. Mr. Linn also reviewed the SB 99 process and tax increment financing. RECESS Mayor Petta called a Recess at 8:04 p.m. Council reconvened at 8:27 p.m., with all members present. RECEIPT OF STATE CLEARINGHOUSE CORRESPONDENCE Don Otterman, Urban Futures Incorporated, reported that a letter dated September 21, 1979 from the State Clearinghouse was received stating that none of the State agencies have comments, and verifying compliance with environmental review requirements of the California Environmental Quality Act. This letter is on file in the Office of the Secretary of the Community Redevelopment Agency. The Environmental Impact Report is now complete and ready for final action. RECEIPT OF STATE BOARD OF EQUALIZATION REPORT Don Otterman, Urban Futures Incorporated, reported that a report dated September 25, 1979 was received from the State Board of Equalization showing the various utility agencies in the project area and the assessed valuation of their improvements which total $243,690.00. He stated that this is a technical requirement of the Redevelopment Plan. This report is on file in the Office of the Secretary of the Community Redevelopment Agency. Mayor Petta asked why it is critical to take immediate action on the redevelopment project. Marshall Linn and Don Otterman, Urban Futures Incorporated, stated the following reasons for the urgency: (1) State Legislature enacted AB1355, which changes the whole aspect of mortgage revenue bond financing; (2) H R3712 will be passed for low and moderate income housing only; (3) bonds cannot be sold for 60 days after final adoption of the ordinance; this would allow 3 weeks in December to sell the bonds. Waiting until January to sell the bonds involves the risk of further restrictive legislation being passed. A reasonable period of time needs to be given in selling the bonds in order to get the best possible interest rate. Page two - 9/27/79 Councilman Allen stated he would vote in favor of the Redevelopment Plan for the following reasons: (1) Reports have been received from the State Board of Realtors and the League of California Cities that the impact on the cities involved in redevelopment projects has been favorable. The number of cities in California who have redevelopment projects is 197; (2) It has been studied, analyzed and implemented by the Federal Government; (3) Stimulation of construction of better class of home developments at better interest rates; (4) Will provide funds for the benefit of the entire community such as park & recreation facilities, street improvements, storm drains, better sewage facilities, improved police protection and fire protection, street sweeping and lighting, community service center, improved public transportation, and more jobs; (5) Will provide substitute for city property taxes, which we do not have, without increasing county taxes, which we do have; (6) The benefits will make Grand Terrace a more attractive and desirable place to live -thus enhancing the value of the existing homes; and (7) Neither the City nor its citizens have any liability if there is a default in bond payments. Councilman Tillinghast stated he would support the Redevelopment Program for the following reasons: (1) Requested Staff to check with other cities who have redevelopment projects - to check with boards of realtors and property assessors regarding the values of homes in those areas. The information that was received was that homes have increased in value; (2) Appears to have been one process by which more homes have been sold; in one community, for each home that was sold under the SB99 Program, there were two homes sold that were not under the SB99 Program. Councilman Grant stated that he supports the Redevelopment Program, but suggested that Staff be directed to place in a newspaper of wide circulation a legal notice in which the text of the Redevelopment Plan would be placed for one day - one publication, and that the second reading of the Ordinance be delayed to the next Council Meeting. Mayor Petta asked City Manager Seth Armstead to read a Memorandum from Councilman Erway, dated September 21, 1979, which he requested be read at this meeting in his absence. The Memorandum stated that Mr. Erway is in favor of the Redevelopment Plan and would vote approval on the matter if he were present at the meeting. The Memorandum is on file in the City Clerk's Office. CONTINUED JOINT PUBLIC HEARING Mayor Petta again opened Joint Public Hearing, and the following citizens addressed the Agency and the Council: Mel Lynn, 11798 Kingston St.; John Lotspeich, 22111 Newport Avenue; Barney Karger, 11668 Bernardo Way; Dolores Kossman, 22735 Desoto; Page three - 9/27/79 Steve Kiacz, 11809 Holly St.; Ed O'Neal, 22608 Minona Drive. Mayor Petta then closed the Joint Public Hearing. RECESS Mayor Petta called a Recess at 9:22 p.m. Council reconvened at 9:24 p.m., with all members present. RESOLUTION NO. 79-42 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE CERTIFYING AS TO THE REVIEW OF THE FINAL EIR WITH RESPECT TO THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS WITH RESPECT TO SAID PROJECT. CC-79-305 Motion was made by Councilman Tillinghast, seconded by Councilman Allen and carried unanimously, by all present, to adopt Resolution No. 79-42 as presented. ORDINANCE NO. 25 (Second Reading) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AND ADOPTING A REDEVELOPMENT PLAN FOR THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AS THE OFFICIAL REDEVELOPMENT PLAN FOR SAID PROJECT. Motion was made by Councilman Grant to instruct City Staff to publish, in a newspaper of wide circulation, the text of the Redevelopment Plan for the Grand Terrace Redevelopment Project, and that the matter of consideration of this Ordinance, the second reading, be delayed for vote for one week. The Motion died for lack of a second. CC-79-306 Motion was made by Councilman Tillinghast, with waiver of the reading in full, to adopt Ordinance No. 25, as presented. Councilman Allen seconded, with AYE votes of all present. Mayor Petta stated that Redevelopment Plans will be placed throughout the community, and individuals will be allowed the opportunity to speak before Council at the next meeting. PUBLIC PARTICIPATION The following citizens addressed Council: Barney Karger, 11668 Bernardo Way; Mel Lynn, 11798 Kingston St.; and Dolores Kossman, 22735 DeSoto. Page four - 9/27/79 ADJOURN The adjourned regular meeting adjourned at 9:40 p.m., with the next regular meeting to be held October 4, 1979 at 6:00 p.m. Respectfully submitted, C i *ty C I e -qrkMo-&A Approved: x", Mayor Page five -• 9/27/79