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M-4/15/1969 (3) . - REDEVELOPMENT AGENCY OF THE CITY OF SArnA MOi'lCA, CALIFORNIA . APRI LIS, 1969 .c . . 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 Philip E. Whiting ABSEIIT: tiEMBERS: L. Wayne Hard i n9 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 APPROVAL OF MINUTES: The minutes of March 18, 1969 were approved as ma i led. APPROVAL OF JtLLS: The Secretary reviewed the bills as follows: John F. Gray. . $340.00 $150.00 Eugene B. .Jacobs TOTAL '; ILLS . .$490.00 Mr. Barnard moved, seconded by Mr. r-ichey, that the bills be paid as submitted, in the amount of $490.00. The motion carried with the following roll call vote: AYES: NOES: ABSENT: MEt-1BERS: MEMBERS: j'lEMl1ERS: Schimmer, ~arnard, Connelly, Fach, Richey, Whiting None Harding PROJECT AC TI OdS AND REPORTS: Project I (a): Report on Tender Offers on Tax Allocation Gonds 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 C.onds. He recommended, together with the Secretary, that the offer from Blyth & 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." rtr. Barnard moved, seconded by l1r. Connelly, that Resolution 1"0. 273 (R.A.S.), "A ilESOLUTlON OF THE REDEVELOPt1HJT AGENCY OF THE CITY OF SAI-'TA t10NICA, CALIFORNIA, AUTHORIZING THE PURCHASE OF OUTSTANDING ~ONOS Ii' ACCOHOAi~CE WITH SECTlO~l 19 OF AGENCY RESO- lUTI O~I NO. 203 l4ITH REGARD TO TilE REOEVELOPIIENT PROJECT K[~OHN AS OCEAN PARK PROJECT ~O. I (a)", be adopted with the correction in Section 2 and that further . . . . . 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: ~equest tg Speak ~ John Mor~har~ 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.D.P. property. Project Ua): Oevelopment 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 lea). 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 KeL's 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 Nei Ison Way corporation, a Ca]ifornla 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 toomes, 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. 274 (R.A.S.), releasing Kern County Land company from its obligation under the Land Disposition Agreement dated Septem- ber 4, ]962 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 6:45 P.M. Mr. Barnard made the following statement: "From eve~ything 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 4S.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 Oirector and the Lega] Counsel that we proceed. in the best interests of the Agency, to release Kern from their . . ~ .., . . 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.), I~, RESOLUTION OFTHE REDEVElOPMENT, AGENCY OF THE C ITV OF SANTA MONICA, CALIFORNIA, AI,.ITHOR IZ.!.NG"IHE EXECUTI VE D I RECTOR...TO .RECE IVE, P/,OCESS "AND, f'~.CEPT TtlE ASS IGN- MENT AND TRANSFER OF THE KERN COUNTY LAND COMPANY LAND D ISPOS I T ION AGREEMENT Of.. THE OCEA/Il"PARK REDEVELOPMENT PROJECT i (a) ,TO CRESCEtfT' BAy PRO,PER-fIES AND FURTHER AUTHORIZING'THE EXECUTIVE DIRECTOR TO RECEIVE AND PROCESS AN AMENDED LAND DISPOSlTlClN AGREEMENT SIGNED AND 'SUBMITTED BY CRESCENTBAV PROPERTIES FOR OCEAN PARKRED~VELOPMENr 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 1\ ca I t vote: AVES: NOES: ABSENT: MEMBERS: MEMBERS: MEMBERS: Schlmmer, Barnard, Connelly, Fach, Richey, WhitIng None Hard I ng tlUD,,(-\udlt 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 ~ote. The meeting adjourned at 6:51 P.M. .~~~~ Grace Thomas Secretary rnp