M-4/15/1969 (2)
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REDEVELOPMENT AGENCY
OF THE
CITY OF SArHA 110;'1CA, CALIfORNIA
~ APRil 15, 1969 ~
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4:30 P.M.
The Redevelopment Agency of the City of Santa Monica, California, met in
regular session in the City Council Chambers, on April 15, 1969, at 4:30 P.M.
PRESENT:
MEMBERS: J. Lee SChimmer, Chairman
B. Thomas Barnard
Clifford Connelly
Ted Fach
Mortimer T. Richey
Phil ip E. Whiting
A8SENT:
~EMBERS: L. Wayne Harding
ALSO PRESENT:
John F. Gray, Financial Consultant
Eugene B. Jacobs, General Counsel
Arnie Friedman, Evening Outlook Reporter
Ray Ripton. Los Angeles Times Reporter
Ed Moosebrugger, Evening Outlook Reporter
Grace Thomas, Executive Director-Secretary
Gary G. Jones, Assistant Executive Director
May Palfrey, Stenographer
The minutes of March 18, 1969 were approved
as mai led.
APPROVAL OF MINUTES;
~PPROVAL OF 3ILLS:
The Secretary reviewed the bills as follows:
John F. Gray
$340.00
Eugene B. Jacobs
$150.00
TOTAL '31 LLS
_$4~O.OO
Mr. Barnard moved, seconded by Mr. Richey, that the bills be paid as
submitted, in the amount of $490.00. The motion carried With the following
roll call vote:
AVES:
NOES:
ABSENT:
Schimmer, ~arnard, Connelly, Fach, RiChey, Whiting
None
Harding
KH1BERS:
MEMBERS:
f"EMOERS:
PROJECT ACTI OdS AND REPORTS:
Project l(a):
Report on Tender Offers on Tax Allocation Conds
The Secretary introduced Hr. John Gray, who reported that the Agency had
received on that day two tender offers on the purchase of a portion of its Tax
Allocation [.onds. He recommended, together with the Secretary, that the offer
from 81yth & Company be accepted, and that Resolution No. 273 (R.A.S.), authorizing
the purchase of said bonds, be approved. Discussion followed. in which it was
agreed to change the wording in Section 2 of the resolution to read: "The
Executive Director-Secretary of this Agency is hereby authorized to purchase
Agency bonds (issued pursuant to Agency Resolution No. 203) with moneys available
in the Reserve Fund and in the Special Fund in the manner established in Section
19 of Agency Resolution No. 203 in the amount not to exceed $195.000 in face
value of the bonds, including brokerage or other expenses." 11r. Barnard moved,
seconded by /ir. Connel IV. that Resolution ["0. 273 (n.A.S.), "A i1ESOLUTION OF
!HE REOEVELOPI1ENT AGENCY OF THE C!TV OF SAf'lTA ~\ON I CA I CALI FORN IA 1 AUTHOR I Z 'NG
T,HE PURCHASE OF OUTSTANDING 1;ONDS Iii Accor;OAi~CE WITH SECTIO~J 19 OF AGENCY RESO-
LUTION ~IO. 203 I-J1TH REGARD TO THE REDEVF.LOPflENT PROJECT KNOl.m AS OCEAN PARK
PROJECT ~!O. I (a)", be adopted with the correction In Section 2 and th~t further
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Minutes - 4/15/69
Page Two
reading be waived. The motion carried with the following roll cal I vote:
AYES:
NOES:
ABSENT:
Schimmer, Barnard, Connelly, Fach, Richey, Whiting
None
Harding
MEMBERS:
MEMBERS:
MEMBERS:
Project I (a):
Reconveyance of Deeds of Trust
The Secretary informed the Members that on March 21, 1969, the recordation
of full reconveyances was made on all remaining parcels in Project I(a) in
accordance with HUD's requirement that a Deed of Trust be recorded on each
parcel acquired in the Project Area with HUD as beneficiary.
GENERAL:
Request to Speak - John Morehar~
Mr. Joseph Coomes, Jr., and Mr. Owen Strange, both attorneys representing
Mr. Jack Morehart, addressed the Agency, restating that Mr. Morehart was Interested
in developing the P.O.P. property.
Project I (a):
Development
Mr. Eugene B. Jacobs, General Counsel, advised the Members of Kern County
Land Company's decision not to proceed with development in the Ocean Park
Project I(a). Concurrently, Mr. Jacobs presented to the Agency a letter from
Kern County Land Company requesting a transfer and assignment of all rights
under the Land Disposition Agreement dated September 4, 1962 to Crescent Bay
Properties--Such transfer and assignment would not affect KCLts rights or
obligations with respect to the First Installment Parcel under the above
Land Disposition Agreement. (Crescent Bay Properties is a joint venture
composed of Neilson Way Corporation, a California corporation, a wholly-
owned subsidiary of Amfac, Inc., of Honolulu, Hawaii, and Santa Monica
Investment Corporation, a Washington Corporation, a wholly-owned subsidiary
of Richard H. Hadley, of Seattle, Washington.) Mr. Jacobs further advised
the Agency that Crescent Bay Properties had executed an Amended Land Disposi-
tion Agreement and had submitted said Agreement and a security deposit in the
amount of $210,000 to the Agency on this date. Mr. Joseph Coomes, Jr.,
representing Mr. Jack Morehart, requested and received permission to be heard
at this point. Mr. Coomes again stated that Mr. Morehart was ready to enter
into negotiations for the development of P.O.P. with the City or Agency and
that the P.O.P. property should be excluded from any Land Disposition Agree-
ments now pending before the Agency. Mr. Jacobs and the Secretary then
recommended that Resolution No. 214 (R.A.S.), releasing Kern County land
company from its obligation under the Land Disposition Agreement dated Septem-
ber 4, 1962 and transferring Kern's interest to Crescent Bay Properties, be
approved. Mr. Barnard suggested that. because of the possibility of litigation
as a result of a possible default on the part of KCL related to this action,
that the meeting be adjourned Into an ExecutIve Session. The meeting was then
adjourned into an Executive Session at 6:10 P.M.
The meeting reconvened at 6:4$ P.M. Mr. Barnard made the following
statement:
"From everything we have had before us. it seems to me that proceeding
with the new proposed developer is In the best interest of the Agency. This
Is obviously a matter of such import on short notice, even though our Executive
Director and the Legal Counsel spent a lot of time studying it, negotiating It
and drafting a contract. Recognizing your expertise, I think the procedure
you set forth of giving us a 45-day period to consider It, so to speak. Is a
good one. There is no question that this appears on the face to be In the
very best interests of the Agency and the City, and I would hope that if we
would approve it, we would be able to Iron out all the details concerning
Tenneco. KCL as early as possible. It is my understanding that it is the
strong recommendation of the Executive Director and the Legal Counsel that we
proceed, in the best interests of the Agency, to release Kern from their
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Minutes - 4/15/69
Page Three
obligation based on their assignment and that the Agency and the proposed new
developer will be protected, and are protected. so that there are no outstanding
issues that could come up on the assignment. With this In mind, and also taking
into account that I would presume within the 45-day period we would have
opinions from our Bond Counsel. opinions from our Condemnation Counsel, opinions
from an economic consultant as to land cost. and a thorough investigation of
the capitalization of the proposed developer, that we proceed. and also that
Section 201 be corrected as previously discussed in the meeting. Based on
that, I would like to move the adoption of Resolution No. 274 (R.A.S.), '~
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SA~ITA MONICA, CALIFORNIA,
AUTHORIZING THE EXECUTIVE DIRECTOR TO RECEIVE, PROCESS AND ACCEPT THE ASSIGN-
MENT AND TRANSFER OF THE KERN COUNTY LAND COMPANY LAND D ISPOS ITlON AGREEMENT
Of THE OCEAN PARK R~DEVELOPMENT PROJECT I(a) TO CRESCENT BAY PROPERTIES A~~
FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO RECEIVE AND PROCESS AN AMENDED
LAND DISPOSITION AGREEMENT SIGNED AND SUBMITTED BY CRESCENT BAY PROPERTIES FOR
OCEAN PARK REDEVELOPMENT PROJECTS I (a) AND I (b)". and that further reading be
waived. The motion was seconded by Mr. Connelly and carried with the following
ro 11 ca 11 vote:
AYES:
NOES:
ABSENT:
MEMBERS:
MEMBERS:
MEMBERS:
Schlmmer, Barnard, Connelly. Fach. Richey. Whiting
None
Hard I n9
HUD Audit Report No.3
Upon Mr. Barnard's request, the Secretary agreed to place this item on
the next agenda.
There being no further business to be brought before the Members, Mr. Richey
moved, seconded by Mr. Connelly. that the meeting be adjourned. The motion
carried with a unanimous voice vote. The meeting adjourned at 6:51 P.M.
.L~~
Grace Thomas
Secretary
mp