M-8/5/1969
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REDEVELOPMENT AGENCY
OF THE
CITY OF SANTA MONICA, CALIFORNIA
August 5. 1969
4:30 P.M.
The Redevelopment Agency of the City of Santa Monica, California. met in
Special Meeting on August 5. 1969, at 4:30 P.M., In the City Council Chambers.
The Secretary reported that a Notice of Special Meeting had been mailed to
the Members on August I, 1969, as required by Article IJI, Section 3, of
the By-Laws.
PRESENT:
MEMBERS: J. Lee SchimMer, ChaIrman
B. Thomas Barnard
C I i fford Conne Ily
Ted Fach
L. Wayne Harding
Mortimer T. Richey
Philip E. Whiting
MEMBERS: NOne
ABSENT:
ALSO PRESENT:
Arnie Friedman. Evening Outlook Reporter
EUgene B. Jacobs, General Counsel
J~nn McCloskey, Councilman
J='~s 8. Reidy, Jr., C~~ncilman
p",o-,-': ~cr';-T, :.7ty Mal"np,'
O~If'n Sl:'i';lg~, Attorne') ~(.). ,,":m l1orc:.hart
Staff:
Gr~CE -.!,r"" "" d-:l", i'J~ I . 'OL' ,.-.Secretary
Gary G. ~...ll~S, AssisLant t..xecutive Director
May Palfrey, Stenographer
Amended land Disposi~!on A9reem~t - Crescent Bay Properties
The Secretary stated that on .;....;: 22, 1969 the City Council approved
the Alr.ended L"lnd 0 ispos i t ion A9rec'T.pr.t bct,!t!en the PCl1ev" ~0;>mtmt Agency
and Crescent Bay Properties and the :>'"r;;o;r;:;"s letter o. July 17, 1969,
subject to certain conditions which were outlined to the Members. She
stated that the Developer had since replied to the revised offer in a
letter to the Agency dated August 5, 1969. The August 5th letter from
Crescent Gay Properties was then read to the Members and discussion by the
Members followed. Mr. Eugene ~. Jacobs, Agency General Counsel, noted
that the principal changes involved the increase of the Developer's deposit
from $210,400 to $500,000 and a reduction in the loan amount to the Agency
for demolitiu,l of the pier. Mr. Jacobs also stated that, under said Letter
Agreement, tilo Developer would be obligated to purchase and develop any
two parcels from among Parcels 2, 3, 4, 5a and 5b before proceeding with
the development of Parcels C and F. The Members then requested Mr. perry
Scott, City Manager, to advise the Agency on the reduced cost of demolishing
the pier. Mr. Scott addressee the Agency, stating that in his opinion the
demolition cost would be $150,000 or less on a salvage contract basis.
Discussion followed on the timing of the demolition of the pier as related
to the development of the parcels in Projects I(a) and I(b). Mr. Barnard
expressed his opposition to proceeding with any development prior to demolish-
ing the pier, stating that the pier was an eyesore and a detriment to the
rest of the development.
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Minutes - 8/5/69
Page Two
Mr. Owen Strange, Attorney representing Mr. John Morehart, addressed
the Members, stating that his client was opposed to any highrise develop-
ment on Parcel F of the P.O.P. area. He further indicated that Mr. Morehart
desired immediate demolition of the pier.
Mr. Barnard then introduced a motion which increased the loan amount
shown in the August 5th letter from Crescent Bay Properties for pier demo-
lition from $150,000 to $500,000, and authorized the Executive Director
and Legal Counsel to negotiate with the Developer in an effort to obtain
a minimum $500,000 advance for demolition of the pier. The motion failed
to pass for lack of a second.
The Executive Director and Legal Counsel both recommended that the
Agency approve the August 5th letter from Crescent Bay Properties, stating
that in their opinion. this Agreement was consistent with the best interests
of the Agency and the CIty of Santa Monica. Mr. Harding then moved, seconded
by Mr. Whiting, that the Executive Director be authorized to accept the
letter from Crescent Bay Properties dated August 5. 1969. and to prepare
an Amended Land Disposition Agreement consistent therewith and present it
to the Agency at a formal public hearing after proper notice. The motion
carried with the following roll call vote:
AYES:
NOES:
ABSENT:
SChimmer, Connelly, Faeh, Harding, Richey, Whiting
Barnard
None
MEMBERS:
MEMBERS:
MEMBERS:
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
6:15 P.M.
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REOEVELOPMENT AGHICY
OF THE
CITY OF SANTA MONICA. CALIFORNIA
August 19. 1969
4:30 P.M.
The Redevelopment Agency of the City of ~anta ~o~ica. Califor~ia. met in
regular session in the City Cc~ncil Chamb~rs. GO August 19. 1969. at 4:30 P.M.
PRESENT :
~1E?ltlERS: J. Lee Seh Immer. ehai rman
t Th0m~3 ~ur~3r(~
C"lfford Connelly
Ted Fach
Mortimer T. Richer
ABSENT;
MEMBERS: L. ~ayne Harding
Phil"p E. Whiting
ALSO PRESENT:
Arnie Friedman. Evening Outlook Reporter
Eugene B. Jacobs. General Counsel
Gary G. Joner,. Assistant Executive Dlrector-
Acting Secretary
/'lay Palfre". Stenographer
f\ppr;OVAL OF ~1't4UTES:
The minutes of June 17, 1969. June 24. 1969.
July 22. 1969 and August 5, 1969 were approved
as mai led.
~ PPROVA l, OF BILLS,:
The Acting Secretary reviewed the bills as follows:
Eugene.B. Jacob~ . . . . . . .
$3.992.75
S,43.M
-2f~C. 09,
TOTAL BILLS. . . . . . . . . . . ??IOI5~75
Shuir~n-Roq~y & Asso~iat~s. .
Filley Analyses.
Mr. Barnard requested a copy of the analysis sub~itted by Hr. Robert B.
Filley covering the appraisals and disposition price per unit schedule on
both Projects l(a) and l(b).
Mr. Barnard moved. seconded by Mr. ConnBlly. that the bills be paid as
submitted, in the amount of $5,015.75. The motion carrieJ with ..he following
roll call vote:
AYES:
NOES:
ABSENT:
Schimmer, Barnard, Connelly, Far-h, Richey
None
Harding. Whiting
MEHi3ERS:
MEMBERS:
MEMBERS:
Upon the Chairman's request, the Actrng Secretary read into the records
a letter from Mr. Robert 5. Filley, congratulating the Agency on the successful
conclusion of its negotiations of the Amended land Disposition Agreement with
Crescent Bay Properties.
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Minutes - 8/19/69
Page Two
PROJECT ACTIONS AND REPORTS:
Project I(a):
Report on Amended Land Disposition Agreement
The Acting Secretary reported that on August 12, ]969, the CIty Council
approved the Amended Land Disposition Agreement with Crescent Bay Properties,
subject to the terms of the letter of August 5, 1969 from the Developer. He
added that a public hearing on the sale of the Ocean Park Redevelopment Pro-
jects and the portion of P.O.P. included in said Amended land Disposition
Agreement had been set for ]1:00 A.M., on August 29. 1969. Mr. aarnard
asked if there was a possibility of postponing the public hearing because
of the anticipated absence of several Members on that date. The General
Counsel stated that the hearing could either be postponed to a later date
or it could be held on August 29 with any action being deferred to a later
date.
Project I (a):
Award of Project Notes - Second Series 196~
The Acting Secretary reported that a bid opening was held in the
Redevelopment Agency offices at 10:00 A.M., on August 12, 1969, for the
sale of the Second Series 1969 Project Notes, in the amount of $4,480,000,
and that the low bidder was the Bank of California with an interest rate of
5.65 per cent per annum. He added that, according to a report published by
the Department of Housing and Urban Development, 92 issues were sold on the
same date at an average of 5.79 per cent.
Projects I(a) and I(b):
Semiannual Dalance Sheets
The Acting Secretary submitted to the Members the Semiannual Balance
Sheets for Projects I(a) and I(b) for the period ending June 30, 1969 for
their review. Mr. Barnard moved, seconded by Mr. Fach. that Mr. John Gray,
Financial Consultant to the Agency, be authorized to make an analysis of the
financing costs to the Agency over the period of time in which the Agency
would be involved with the Amended land Disposition Agreement, for a fee
not to exceed $300.00. The motion carried with the following roll call vote:
AYES:
NOES:
ABSENT:
Schimmer, Barnard. Connelly, Fach, Richey
None
Harding, Whiting
MEMBERS:
MEMBERS:
MEMBERS:
Mr. Richey moved, seconded by Mr. Fach, that the meeting be adjourned
to an Executive Session for personnel purposes. The motion carried with a
unanimous voice vote. The meeting adjourned at 5:00 P.M.
The meeting reconvened at 7:15 P.M.
Mr. Richey moved, seconded by Mr. Barnard, that the Agency Members
consider the matter which was under discussion in the Executive Session.
The motion carried with a unanimous voice vote.
Mr. Barnard moved, seconded by Mr. Connelly, that the Agency terminate
Mrs. Grace Thomas in her capacity as Executive Director of the Santa Monica
Redevelopment Agency forthwith as of August 19, 1969. The motion carried
with the following roll call vote:
AYES:
NOES:
ABSENT:
Schimmer, Barnard, Connelly, Fach, Richey
None
Harding, Whiting
MEMBERS:
MEMBERS:
MEMBERS:
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Minutes - 8/19/69
Page Three
Mr. Barnard moved, seconded by Mr. Richey, that Mr. Gary G. Jones be
appointed as Acting Executive Director at his present compensation until
such matter is discussed at the next regular meeting of the Agency. The
motion carried with the following roll call vote:
AYES:
I~OES:
ABSENT:
MEMBERS:
MEMBERS:
MEMi3ERS :
Schimmer, Barnard, Connelly, Fach, Richey
None
Harding, Whiting
Mr. Barnard moved, seconded by Mr. Fach, that the Agency's bank
accounts with the Santa Monica Bank and Bank of America be set up so
that Mr. Gary G. Jones will be the official signatory, as Acting Executive
Oirector, and that Mrs. Grace Thomas' authority to sign all of the Agency's
bank accounts in any capacity whatsoever be terminated. The motion carried
with the following roll call vote:
AYES:
NOES:
ABSENT:
HEtl13ERS:
MEMDERS :
MEMBERS:
Schimmer, Barnard, Connelly, Fach, Richey
None
Harding, Whiting
Mr. Barnard moved, seconded by Mr. Richey, that the Agency General
Counsel be instructed to refer the matter presented to the Agency to the
District Attorney's office for appropriate action. The motion carried
with the following roll call vote:
AVES:
NOES:
ABSENT:
MEMBERS:
MEMBERS:
MEMBERS:
Schimmer, oarnard, Connelly, Fach, Richey
None
Harding, Whiting
Mr. Barnard moved, seconded by Mr. Connelly, that the Chairman be
authorized to issue a press release in the form read into the records.
The motion carried with the following roll call vote:
AVES:
NOES:
ABSENT:
MEMDERS:
MEM3ERS:
MEr1BERS:
Schimmer, Barnard, Connelly, Fach, Richey
None
Harding, Whiting
Mr. Jacobs then read into the records the following press release:
"During the course of a regular audit of Santa Honice Redevelopment Agency
Funds, the auditors disclosed to the Agency evidence that sums totalling
$4,666.98 had apparently been misappropriated. The Agency is properly bonded
qnd these funds will be replaced.
The Agency's Executive Director, Mrs. Grace Thomas, has been terminated
from her employment. The Assistant Executive Director, Mr. Gary G. Jones,
has been appointed Acting Executive Director. All other employees of the
Agency have been retained in their employment.
The Agency Legal Counsel has been instructed to refer the matter to
the District Attorney's office for appropriate action.
There has been no other evidence or indication of further improprieties
or irregularities in Agency busIness or activities."
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
7:40 P.M.
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REDEVELOPMENT AGENCY
OF THE
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CITY OF SANTA MONICA. CALIFORNIA
1<~~~
OF THE
CITY OF SANTA NIONICA
CITY HALL, 1685 MAIN STREET. SANTA MONICA, CALIFORNIA 90401
PHONE (213) 393.9731
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GRI\CE THOMI\S
Executive Olrector
August 20, 1969
NEWS RELEASE
During the course of a regular audit of Santa Monica Redevelopment
Agency Funds, the auditors disclosed to the Agency eVidence that sums
totalling $4,666.98 had apparently been misappropriated, The Agency is
properly bonded and these funds Will be replaced.
The Agency's Executive Director, Mrs. Grace Thomas, has been
terminated from her employment. The Assistant Executive 01 rector,
Mr. Gary G. Jones, has been appointed Acting Executive Director. All
other employees of the Agency have been retained in their employment.
The Agency Legal Counsel has been instructed to refer the matter
to the District Attorney's office for appropriate action.
There has been no other evidence or indication of further improprieties
or irregularities in Agency business or activities.
MEMBERS J LEE SCHIMMER, JR, Chairman . B THOMAS BARHARO, Chairman Pro-Tern . CLIFF CONNELLY . TED FACH . L WI\YNE HARDING
MORTIMER T RICHEY . PHILIP E WHITINS