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CC - 09-04-84 - Adjourned Meetingx MINUTES OF THE ADJOURNED MEETING ROSEMEAD CITY COUNCIL SEPTEMBER 4, 1984 AT 6:00 P.M. CITY OF M)SMA E' AD DATE y F, The adjourned meeting of the Rosemead City Council was called to order by Mayor Pro Term Tury at 6:00 p. m., in the Conference Room of City Hall, 8838 E. Valley Boulevard, Rosemead, California. The Meeting was recessed immediately for dinner. The Meeting was reconvened at 6:30 p. m., by Mayor Taylor. The Pledge to the Flag was led by Mayor Pro Tem Tury. The Invocation was delivered by Councilman Bruesch. ROLL CALL OF OFFICERS: Present: Councilmen Bruesch, Cleveland, Tury and Mayor Taylor Absent: Councilman Imperial (Tardy) I. INTRODUCTION OF INTERSTATE CONSOLIDATED INDUSTRIES & ASSOCIATES . Carol Hoffman, Government Relations Officer, of ICI, introduced Steve Bazetti, Nadel Architecs, Sandra Bauer, Processor of Michael Brandman Associates, Gene Krekorian, Financial Consultant of Econo- mics Research Associates, and Scott Bell, property owner and Brian Barr. Carol Hoffman made her presentation of the improvements that are being planned for at the Rosemead Square which has recently been purchased by Scott Bell and his partner Leo Simon. The slides which were shown showed the various shopping centers that ICI has renovated and expanded.or is in the process of doing so. Also, there were slides shown of Rosemead Square as it is now, which is under utilized, and proposals of plans were shown of how it could be changed to better utilize a site of that size. There were sug- gestions of rearranging some of the businesses to more suitable sites and the addition of a super market such as Ralph's, and in- creasing the size of the theatre area and to include an eating area adjacent to the theatre. She added that the_new owners plan to change the name of Rosemead Square to Rosemead Towne Center. The Archtect, Steve Bazetti, pr.esented-tho.'concepfioinal de- sign of the expansion and renovation of the site. Gene Krekorian, Financial Consultant, stated that.this pro- posed renovation and expansion would be a financially viable pro- ject both for the owners of the property and the City. Carol Hoffman stated that ICI is hoping that the City and the RRA will support their project and assist in the leases, obtaining the right-of-ways and helping with Caltrans in the rearrangement of the on-ramp at Rosemead and the San Bernardino Freeway. She showed alternatives to the freeway ramps there at Rosemead Blvd. Also,the proposed cul-de-sac at Glendon Way was discussed. Councilman Jay Imperial entered the Conference Room at 6:50 p.m. Councilman Bruesch inquired if with the improvement and expansion of the mall,wouldn't that enhance Montgomery Ward sufficiently to go along with the renegotiations without the involvement of the RRA. Carol Hoffman stated that first of all it is necessary to come to the City first, and if there is an interest in proceeding then there are steps that can be taken together. She added that although a major tenant such as Montgomery Ward stands to gain a potential of 25% they are very hesitant to give up control over CM 9-4-84 Page #1 any of their leases.. She stated that there is a need to go for- ward with the City's intent and sometimes merely a threat of an action can produce the same feeling. Councilman Tury inquired who had the major leases at the site besides Montgomery Wards and Thrifty's. Scott Bell stated that the Theatre, Rosemead Cafe, Security Bank, Thrifty Drug Store have leases as well as a few tenants who have leases for five years,. which are in the building that is intended to be demolished. He stated that they had spoken with the Theatre owners and they are very anxious for the ex- pansion. The Texaco Service Station is not part of the property that has been purchased. He stated that the plot plan which has been presented to the Council is a general concept on uses and there is a lot of work that still needs to be accomplished with respect to traffic and that sort of thing, and the reason that they have brought this to the Council was to see if they wanted to pursue the project or not. Mayor Taylor stated that he felt that the entire Council would be in favor of the proposed concept, and in helping where the Council could; however, he had serious reservations regarding the Redevelopment procedure. Hart Street would not be a problem to dedicate the property back since the owner owns both sides of the street. He favored alternative #2 of the Freeway ramp change, and felt that it was the most feasible way. He questioned telling Montgomery Wards, the City's prime sales tax producer, that the City does not like the way they are running.their business. He stated that he was in agreement with the development of the site to its fullest potential; however, he did not like stepping on the businesses who have long term leases. Councilman Imperial stated that he felt that the concept which was presented was outstanding. He stated that what Mont- gomery Ward is doing now is not too different from what Sears was doing in E1 Monte, and right now Sears is boarded up. It is.a big blight to that area. He felt that Montgomery Ward has never given the City any cooperation and he felt that the Ward Center is somewhat blighted and will get worse if some action to improve it isn't taken. Councilman Tury stated that he agreed that Montgomery Ward's has been a very good sales tax producer for this City for a long time, although the Center has been going steadily down-hill and he felt that it might not be a bad idea just to shake up Wards a little. He felt that the Council should look into the alterna- tives in order to give some assistance to the developer, and he felt that something should be done for the Center. He was pleased that there was a new owner, and requested that staff look into the alternatives that are available to be assistance to the new owner. Councilman Cleveland stated that he was very pleased with the concept and he felt that something should get started before the Montebello Mall is completed. The same,thing that happened to the Sears Complex in E1 Monte could very easily happen at Rosemead Square. Mayor Taylor reiterated his statement that the entire Council is in favor of the project and encouraging the developer to proceed with it. The developer made reference to five major leases and these are only small problems that need to be worked out. He stated that the concept and the presentation was fine; however, the methods in which the results are obtained will be the most difficult part of this project. Mayor Taylor requested the sales tax statements from all of the businesses for'.therpast few years. Councilman Bruesch stated that he too was in favor of the project, and especially the aesthetics, the market being there, the improvement of the Theatre, and he did not have reservations about the vacation of Hart Street; however, he did have reservations about using the Redevelopment powers. He felt that as a total package, he was very much in favor of the concept. CM 9-4-84 Page #2 Mayor Taylor stated that the Council is 80% in favor or the concept and the technicalities have to be worked out. Councilman Tury requested that the developer talk to the leasors to see if voluntary cooperation could not be achieved.. Carol Hoffman stated that ICI really hoped that the Council would serve as the catalyst to make this project happen, and that maybe the staff can examine the requests made for consideration and determine what vehicles it will require to accomplish those goals.and then they would come back to the Council for a review of those vehicles. At that time a program would be established for the developer to go forward. Councilman Imperial stated that the last time this site was considered for expansion it involved the demolition of homes; however, that is not the case now. This improvement is within an existing parcel of land that is strictly commercial, and he did not have a problem with that. If Montgomery Ward decided that that operation was no longer financially feasible, they would board it up like the Sears in E1 Monte did. They would not care what it did to the City of Rosemead. He stated that this is not taking peoples homes; these are business leases. Councilman Tury stated that this is a parcel under one owner- ship and that this was a, different situation. Mayor Taylor stated that he did not have a problem with the existing Council. The other project there were about five hundred homes involved; however, there are other areas of concern. -The City of Alhambra's Redevelopment Agency is in the throws of default, and the City of Pasadena have put themselves in a position of de- faulting on their bonds and refinancing, and the City of Industry has done the same thing. Maybe it is not even necessary to get the RRA involved. He inquired if Montgomery Ward and Security Pacific had been contacted regarding their leases. Scott Bell stated that he had not contacted them as he wanted to hear what the Council had to say about the project. Mayor Taylor stated that there would probably be a 4-1 vote on the project or maybe 3-2 to use that condemnation procedure. Frank G. Tripepi, City Manager, stated that in addition to commending the owner on the selection of his team and their pre- sentation of the proposal, he also commended him for putting his money on the table. This is the first opportunity that the City has had in dealing with the developer. Usually, a concept is brought to the Council and say that if the Council helps them, they will buy it and make things happen. In this case, Center was purchased and then came to the City. The City Manager stated that even though leaseholds can be condemned with four votes, he would want this to be a five vote project. He felt that in order for the project to get the positive publicity that is needed, to get the merchants behind it and the Chamber of Commerce, it really should be a total effort of the entire City Council. There may be a possibility of forming parking districts as an alternative measure. He stated that there are items that can be researched and come back to the Council with. He felt that it would be important to the owner to discuss with Montgomery Ward's that the City does support his efforts, does support in concept what his plan is, and will if necessary as a City take steps to do whatever it takes to make that project a reality. He felt that the first way would be to have the cooperation of Ward's; however, they should be told if they don't cooperate there are other methods that can be taken to make that project happen. He recommended support from the Council to allow the staff to join with the owner to move forward with this project by contacting some of the major leasees. It would be a partnership and the City has as much to gain to try to convince Wards to do this in a cooperative manner. Councilman Tury stated that the staff should look into the possibilities and the Council would give whatever assistance they can. CM 9-4-84 Page #3 0 • Mayor Taylor stated that Montgomery Wards just as any other corporation is first and primarily interested in making a profit for themselves, and the Gilbert Properties have never given much cooperation on any projects. He commended Mr. Bell on taking the initiative on going ahead with the project, and some of the problems that have been brought certainly can be resolved, but how that will be done has not been answered as yet. He requested that the different Lessees be approach first and get a true read-out. Councilman Imperial stated that there had been a request that the revenue from sales tax from the Montgomery Ward Center for the past five years, and he would like the revenue from the Sears in E1 Monte also. Councilman Bruesch stated that he hoped that a vehicle other than.Redevelopment could be used to accomplish the expansion and renovation. Mayor Taylor stated that after contacting businesses, if they become hard-nosed about it, then the City has to realize that there is a total concept that must be taken care of. Even though it may become distasteful in some ways, there is the parking district as an alternative. What the alternatives will be, and what will be used is not decided at this time. He wanted Mr. Bell to have the feeling that the Council was in favor of the project, but how it will be handled cannot be answered now. Councilman Imperial commended Mr. Bell for putting his money where his.mouth is, and that is special. Scott Bell stated that he like the town and had driven by the property for five or six years and felt.that someone should do something about it, and when it became available Mr. Simon and he bought it. Frank G. Tripepi, City Manager, stated that it speaks highly of the confidence that Scott Bell had in the City of Rosemead by purchasing that property. Councilman Cleveland inquired if Mr. Bell would have a pro- blem in contacting the leasees. Scott Bell stated that he would do it under the direction of the Council; however, he does feel a little uncomfortable. In La Verne they had executed a binding agreement between the City, and they had made committments to do certain things and the City had made committments to him and he knew where he stood. He felt that he needed a document first; however, if the Council does not do, it that way, he will try some other way. Mayor Taylor stated that it would influence him to know that a good faith effort was made to try to talk to them and negotiate the leases. If they said they did not like it or did not know about it, then the Council could say that Mr. Bell had contacted them. Mr. Bell stated that he would contact the Wards and Thrifty. He stated that they are talking about removing tenants off of the site to a great extent. Basically, Thrifty would be moved to the Theatre building, and introducing a new tenant,Ralph's, Rosemead Cafe and possibly the other tenants would be relocated within the project. Mayor Taylor stated that he would not have too much reserva- tion about helping in some way to relocate them within the complex. Carol Hoffman stated that there may be a couple that may be located else where in the City, and there could be a set of goals and one of those would be the relocation of all tenants either on premises or off the premises. Mayor Taylor requested that be put into the proposal. CM 9-4-84 'Page #4 Scott Bell stated that he gets the feeling that the Council is in favor of this project, basically, and I get the feeling that if condemnation is the only alternative available you would be willing to exercise that right, and if this is not correct, he wanted to know now because he was going to proceed on that basis. He stated that he would speak to the people at Montgomery Wards and would fly back to their corporate offices in Chicago to dis- cuss the plan with them and also with Thrifty's. In the meantime he said he would work with staff on a specific plan for the pro- perty. Frank G. Tripepi, City Manager, inquired absent the DD & A or owner-participation agreement or binder, if it would be helpful to him if the City hosted the meeting between him.and the Leasee here at City Hall. Scott Bell stated that would be terrific, and it would help. Councilman Imperial stated that it is not an iron clad agree- ment, but it would tell them that the City is supportive enough to host a meeting. Mayor Taylor stated that would help get them up front to hear exactly what their opinions are. Councilman Tury stated that it would help the Council by knowing that everything possible has been done. Carol Hoffman stated then this presentation could be taylored to suit them, and then they would realize that there has been an in depth study on the project. Mayor Taylor inquired when such a meeting could be set up. Scott Bell stated that the only problem would be to get a committment from the corporate offices to send an individual, and this could be an indication to Council of the attitude of Montgomery Wards. Carol Hoffman stated that it can be done both ways, and if they can't come here, then we can go there. Councilman Imperial inquired if there would be a problem if the City Manager could go with them if that was necessary. Councilman Tury stated that would be no problem; however, he felt that they would come. Carol Hoffman thanked the Council for their attention and consideration. Councilman Bruesch mentioned to the Council that he was very disappointed with the Sheriff's Department response time for a complaint that he had registered at his.school last Friday regard- ing lewd and vociferous conduct by individuals on school campuses. He stated that the staff has done a good job in investigating the problem; however, he wanted to make it part of public record that he was extremely disappointed with the fact that the response time was an hour and fifteen minutes and when the officer came to the school and he gave him the license plate number, he informed him that nothing could be done about it.. Frank G. Tripepi, City Manager, stated that he talked with Lt. Johnston and there is a written report coming. There being no other business, the City Council adjourned to the next regular meeting of September 11, 1984 at 8:00 p. m. Respectfully submitted: APPROV 0: n City Jerk Z t/ (MA~- , YOR CM 9-4-84 Page X15