Mayor Rocha called the meeting to order at 7:03
P.M., and called roll.Present: Council Members Freitas, Davis, and Mayor Rocha
Council Member Soliz had a pre-approved absence and Council Member Sudario was ill.
Council Member Davis led the Council and audience in the Pledge of Allegiance.
STUDY SESSION
REVIEW OF OWNER PARTICIPATION AGREEMENT BETWEEN THE CITY OF ANTIOCH, THE ANTIOCH DEVELOPMENT AGENCY, DONAHUE SCHRIBER, AND LOWE'S HOME IMPROVEMENT STORES FOR THE REDEVELOPMENT OF THE OLD KMART SITE ON SOMERSVILLE ROAD
City Manager Ramsey introduced the item with a brief history of the circumstances that led to this meeting. He explained there would be no action taken, rather this was an informational meeting, and the item would return to Council for action in the near future.
Economic Development Director Laura Sainz presented the staff report dated January 14, 2000, outlining the progress of Donahue Schriber's current negotiations with the tenants (business owners), the timeline, the relocation costs, and the project's pro forma. Ms. Sainz then turned the presentation over to City Attorney Galstan, who explained the process of eminent domain and the associated additional costs such as appraisals and relocation costs. He discussed the Owner Participation Agreement and the responsibilities of the developer.
Lamont Campbell, Manager of the sub-lessee, Hospice, stated his company supplied the needs of 114 patients throughout the County, and this relocation would be difficult for his business. He stated he had 14 years remaining on his current lease, and the difference in square foot rental rate would cost his business a great deal of money over the next 14 years. He was hoping the City would help defray the impact on the rent structure on a new lease vs. their current rent.
City Attorney Galstan stated the numbers were preliminary and not firm.
Douglas Tokes stated he was tired of corporate welfare from the City, adding businesses have more financial resources than citizens. He felt the relocation money should be sufficient. He questioned what would happen should the developer could go out of business before $2.5 M was repaid, and the City had to pay it?
Council Member Freitas questioned the Agency=s current involvement in this project. City Attorney Galstan stated the Agency would not be involved until the signing of the Owner Participation Agreement, after which the Agency would become responsible for a certain amount of retroactive relocation costs. Council Member Freitas asked if equipment costs were included in the pay-out costs, and Ms. Sainz confirmed it was. City Attorney Galstan explained the relocation benefits would go directly to the stores. Council Member Freitas asked for a detailed account of the pro-forma with the details of each item, adding Page N11 of the Agreement concerned him because it lacked a cap, and requested a detail of the item. City Attorney Galstan stated additional work was needed in several areas before this presentation would be final.
Mayor Rocha stated the new jobs created through this project must comply with the City's "living wage" policy and wanted some assurance Lowe's would not object should the employees at some point choose to become associated with a union. Ms. Sainz stated the store typically paid a comparable union wage.
Mayor Rocha called a break at 7:48
P.M. and the Council reconvened at 7:57 P.M. with all members present.City Manager Ramsey introduced the item stating this was primarily an opportunity for the property owners and staff to get an understanding of Council's vision for this area.
Community Development Deputy Director Carniglia presented a brief history of the area from 1987 to the present. He stressed FUA #1 would be one of the few areas in which Measure "U" requirements would apply. There were some unresolved policy issues, including several fundamental issues including land use, the municipal golf course, endangered species issues, school mitigation, and job creation. He completed his presentation stating every aspect of Measure "U" will apply to this area.
Council Member Freitas requested a detailed formula for infrastructure calculation. Upon questioning, Mr. Carniglia explained the schools coming on-line would be closely tied to Measure "U" implementation. Mr. Freitas also stated he was not in favor if placing a Police sub-station in this area and transportation would also have to be considered.
City Manager Ramsey felt the Antioch Unified School District should share their plans with the City so the two entities could work together.
Jerry Macey, Antioch Unified School District, stated planning efforts between the City and Antioch Unified School District were good. He noted early June was the targeted date for starting a new middle school. He further stated they are trying to get all schools off the track method and the elementary school in the FUA #1 area would help to accomplish this.
Francine Hand, Antioch Unified School District Board Member, referred to school documents from 1997 which stated increased enrollment would not correct the year-to-year gap. She further stated she was concerned with CFD mitigation. Mello Roos 89-1 very clearly spelled out the number of schools, and their locations. Mello Roos 94 was not specific about the school sites, which was then passed on to the children and their families. She requested a developer fee up front. When asked to explain why she felt FUA #1 was inadequate by Council Member Freitas, she declined.
Skipp Sperry, Dividend Homes, stated the current big seller was executive homes, at a higher cost per unit on larger lots. The other costs, schools, public safety, etc., were then unable to be met because of the very low density. Elimination of the golf course would probably be necessary and the current public golf course would have to fill that need. He felt the main thing FUA #1 lacked was Kaiser, which would generate 3500-4000 jobs, but needed help from the City to get started.
Merle Gililand, Richland Development Corp., outlined Richland's progress to date on FUA #1 and expenditures of $1M. He stated they were not prepared to invest any more until the City is ready to move forward. He felt the City should be doing something to help bring BART to East County. He stated the Hwy 4 Bypass could be completed by 2004 - 2005 according to Lowell Tunnison and suggested using the existing heavy rail line for BART. The job centers need to be close to a major transportation system. The City needs infrastructure in place to secure the businesses it is trying to attract. He stated they were directed by the City to include a golf course and now they were hearing the City might not want it, and this after a year-long effort to get it right. He stated Richland was not going to move forward until they have more solid indications the City was also going to move forward.
City Manager Ramsey said he was the one backing out of the golf course site. He felt the feasibility study of the golf course was outdated and he was not willing to ask Council to invest anymore money on the proposed golf course.
Mayor Rocha agreed a transportation plan needed to be worked out to make this area feasible.
Council Member Freitas added looking at various, viable options for transportation was long overdue.
Louisa Kao, owner and president of The Zeka Group, stated they had an interest in the Higgins Ranch property. She stated more than 10 years ago the City encouraged property owners to participate in a Master Plan, which was completed several years ago. A Draft EIR was prepared, along with study after study, at great expense to the property owners. She stated while other communities use non-union labor, they were now being asked to use only union labor, again at the expense of the property owners. She voiced her objection to now being asked to "wipe the slate clean and start over," a request they would not be able to honor, adding there were ways they could and would help. She did not feel Roddy Ranch should be allowed to move forward until after those property owners who have been involved since the beginning could move forward. She realized Roddy Ranch promised to bring jobs, but original property owners have borne substantial monetary investments, including the Renaissance Faire, slated to bring jobs. She implored the Council to not ask property owners for any further financial assistance.
Walt Bartlett, resident, discussed the traffic that would be created by Roddy Ranch stating it would necessitate Deer Valley Road be upgraded to accommodate the increased traffic.
Eric Hasseltine, representing the Williams Family for the past 12 years, stated this project had been a project driven by the land owners, subjecting themselves to numerous costs, thus devaluing their land. He stated a certain number of units per acre would be needed in order to make this economically feasible for the developers to proceed and asked "where are we going from here, and how are we going to get there?" He stressed the need for study sessions to reach a final consensus of whether or not to move ahead with this project. He did not feel it was prudent at this time to decide whether or not to rule out the golf course, given the amount of work that had gone into the project, including a financial strategy, adding the Council had not looked into all the information regarding the golf course. While he agreed with a previous speaker density was tied to infrastructure, he felt the real issue was finding a means to move this project forward.
Council Member Freitas suggested a committee comprised of two members each from City Council and Planning Commission be formed to look into this issue, stressing planning was the key, since Roddy Ranch could not move forward until infrastructure in FUA #1 was in place. He also suggested scheduling joint City Council/Planning Commission meetings.
PUBLIC COMMENTS
Council Member Freitas announced Antioch resident, Manny Romo, would be one of four individuals representing the United States in a bocce ball tournament in South Africa.
ADJOURNMENT
With no further business, Mayor Rocha adjourned the meeting at 9:42 P.M. to a joint meeting with Brentwood on Monday, January 24, 2000 in the East Cafeteria of Deer Valley High School.
Respectfully Submitted:
L. JOLENE MARTIN, City Clerk