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1999-09-09 Special CC MinutesMINUTES OF THE SPECIAL CITY COUNCIL MEETING THURSDAY- -SEPTEMBER 9, 1999- -5:00 P.M. Mayor Appezzato convened the Special Meeting at 5:04 p.m. ROLL CALL - Present: Councilmembers Daysog, DeWitt, Johnson, Kerr and Mayor Appezzato - 5. [Councilmember Johnson arrived at 5:07 p.m.] Absent: None Mayor Appezzato stated that he called the meeting to take swift action to keep cigarette and check cashing businesses from going in for 45-days; before considering the moratoriums [introduction of ordinances] the Council would hear public comment. Wilma Chan, Alameda County Supervisor, stated that she is in support of the moratorium for two reasons: 1) the [proposed] location of Cigarettes Cheaper is very near to[Alameda] High School; there has been a growth in teen smoking, while smoking in the rest of the population has gone down; there is open lunch period at Alameda High and the proposed location is around the corner; 2) Cigarettes Cheaper has been paying people to sign petitions at the store to overturn the 50c tobacco tax which is going to bring $20 Million into Alameda County to serve kids up to 5 years; a study completed by the Social Service Human Relations Board indicated children up to 5 years need services including immunizations, child care, etc.; hopefully, said services will be funded through the cigarette tax; petitioners stated the tax should be repealed because a lot of the money will go to State workers, which is not true; petitioners are being deceptive. Michael Cooper, Island High, spoke in support of moratorium. Jerry Sherman, President, Park Street Business Association, stated the property owners are in a hard spot; owners prefer to rent to businesses which will pay the most rent; proposals for Cigarette Cheaper and Check Cashing both run counter to vision for Park Street; that he is in favor of Council supporting the moratorium. Mayor Appezzato commented on the [Park Street] visioning process. Agnes McKinlay, Alameda, stated there is not adequate shopping in Alameda; Park Street should be an area for families to shop and stroll; Check Cashing businesses prey on the underprivileged; cigarette store would be only blocks from Alameda High; said businesses are not the direction Alameda should be going; urged Special Meeting Alameda City Council September 9, 1999 Council to vote for the moratorium and rethink plans for Park Street. Soraya Golesorkhi, Alameda, stated that she and others circulated a petition against the California Check Cashing and Cigarettes Cheaper stores proposed to open on Park Street; read petition; stated her vision of Park Street is a place to shop and eat with children. Don Wagg, Alameda, stated cities which are upgrading do not have check cashing places downtown, e.g Carmel, Monterey, Palo Alto; he is in favor of moratorium. Walt Jacobs, Alameda, Chair, Local Government Relations Committee for the Board of Realtors, and Vice President, Community of Harbor Bay Isle, _stated that he supports the moratorium; the City is moving in a positive direction; many citizens opposed Burger King going into Harbor Bay Landing Shopping Center; retailer chose to withdraw; these influences should not be in the vicinity of the high school. Jerilyn Feitelberg, Alameda, stated that she owns Alameda Drug on Park Street and is in favor of moratorium; these two businesses do not serve greater good; there are limitations of community in telling what type of business can go into private property; responsibility comes with private ownership; the City should take any steps necessary, including requesting the absentee owners to reconsider before signing the lease. Victoria Brown, President, Grater Alameda Business Association (GABA), stated that she supports the moratorium which is important to the visioning process. Diane Coler-Dark, Alameda, stated the moratorium should be extended until the visioning process can be completed and the General Plan is revised; important undertakings might have significant impact on the community; 45-days might not be enough time to consider recommendations from the community. Mayor Appezzato requested the City Attorney to clarify laws the City must follow. The City Attorney stated Alameda can technically establish its own rules because it is a charter city; however, she recommends the guidelines set forth by State Government Code [Section] 65858 because it presents a legally defensible, tried and true, previously litigated standard; step one is 45-days; after notice and public hearing, a legislative body may extend the interim ordinance for 10-months and 15-days, and subsequently, extend the interim ordinance for 1-year. Special Meeting Alameda City Council September 9, 1999 Johanne Dictor, Alameda, stated having a tobacco store is not conducive to high school students who hang out on Park Street; Police often have to arrest people for trying to cash bad checks in Alameda; there are already two tobacco stores and two check cashing stores; those who signed the petition [opposing establishment of stores] are looking forward to getting better stores on Park Street; that she hopes the moratorium goes forward. Jenny Matteucci, store owner, stated that she owns "All the More to Love" which is two doors down from the proposes location; most businesses are opposed to establishment of a non - retail business; architecturally, the store should be retail. Frank George, Alameda, stated the idea of having control over the product mix and use permits on Park Street was brought up to either the City Council or Planning several years ago; non- desirable businesses are using a window of opportunity; primary corners have the greatest amount of exposure; inquired whether undesirable businesses, e.g. adult book stores, pool halls, arcades, are prohibited from being located within 500 feet of schools. The City Attorney responded in the affirmative. Mr. George requested the matter be reviewed; further stated the City is a sitting duck; these businesses are going from city to city to parley a lawsuit; the City of Carmel has a Master Plan; a list of businesses which cannot be established should be considered. Mayor Appezzato requested Mr. George to meet with the City Attorney. Shirley Sutherland, owner, Designers Choice, Alameda, stated businesses on Park Street have put a lot of money into stores, and vacancies have been filled; inquired whether a moratorium was placed on the Home Savings building [proposed business site], similar to Wells Fargo -, First Interstate- and Blanding Avenue building [restrictions imposed by property owners]; further questioned whether a more desirable retail establishment or another banking business could be put in The City Attorney stated two interim ordinances are being proposed, not for the specific business [property], but on use of any business [property] throughout the City of Alameda for the purpose of Cigarettes Cheaper or Check Cashing for 45 -days; an acceptable retail use would be permitted Ms. Sutherland stated that her question is whether there is a restriction on the actual property, e.g. Blanding Avenue property owner restricted former Lucky's building from becoming another grocery store. Special Meeting Alameda City Council September 9, 1999 275 The City Manager stated restrictions are not property owner imposed; staff does not know of Ms. Sutherland further stated the City is held uses are prohibited, e.g. theater. City imposed, but any restrictions. hostage when former Mayor Appezzato stated the City is discussing ways to break the lease and help the owner; the Silver Building sat for 40 years; the City went after the building using eminent domain; then, the property owner decided to sell the property in the private market; wonderful things are being done, e.g. demolition of Dale's Bar in West End. Garrett Brown, Alameda, Director of a Software Company at Harbor Bay, stated when trying to attract new businesses, potential businesses will look at existing businesses to determine the type of foot traffic and shopping environment; people have moved here from San Francisco to get away from check cashing businesses; that he supports the moratorium. Jennie Gray, Alameda, stated that she responded to a survey two years ago regarding the type of businesses she would patronize; encouraged the City to be creative to keep [Check Cashing and Cigarettes Cheaper] businesses off of Park Street. Ann Golemac, Alameda, stated that she has done retail consulting for various businesses; a cigarette store went into Marina Village next to health food store; there is not a vision for children if the business is allowed; [Cigarettes Cheaper] store endorses the concept of smoking; kids are on Park Street before school, at lunch, and after school. Frank Matarresse, Chair, Economic Development Commission (EDC), stated the large number of people present is indicative that the issue is important; the EDC started to work on two visioning processes: 1) a public process for City-wide economic development; two meetings have been held; 2) review the direction for Park Street which is heart of Alameda; the Park Street Merchants Association and interested citizens have all come out to address Park Street; updated reports on both processes will be given at the Regular EDC Meeting held on September 16th; both processes would be circumvented if the moratorium is not put in place; the matter raises the issue that not only large developers, but also single- building owners, might not act in the best interest of the community; community consensus is being built which is an important, positive sign; hopefully, the process will be finished by the beginning of next year Councilmember Johnson stated the City is going through processes to improve Alameda and bring a better retail mix to Park Street, e.g. the Economic Development Strategic Plan, Downtown Visioning Special Meeting Alameda City Council September 9, 1999 Process, updating the General Plan and modifying the Zoning Ordinances; said processes would be pointless if these types of businesses were allowed to be established; the moratoriums are crucial; noted that there was no one present in support of businesses; further stated the matter mobilized residents because everyone wants Alameda to go forward; the proposed location is a primary corner; when the Zoning Code was adopted, it was broadly enacted; there were not Cigarettes Cheaper stores when the Zoning Code was enacted; [Cigarettes Cheaper and Check Cashing stores] need to be added to the list of businesses the City regulates; that she is in favor of moratorium which will allow City to go forward with the visioning process. Vice Mayor Daysog stated in this instance, rules do not match what community wants; placing a Cigarettes Cheaper in the path of a high school is a cynical approach; cigarette companies target youth; efforts should be made to stop teens from smoking; a comprehensive City -wide strategy is needed. Councilmember Kerr stated the major retail corner in main business district was going to be occupied by Cigarettes Cheaper and Check Cashing emporium; questioned who owns the building; stated the City talked to the owner of the Silver Building and needs to enter into a dialogue with the owner [of proposed store] to discuss leases; preventative leases keep out businesses which might offer competition; perhaps the City could help find an adequate tenant which would compliment other businesses in the district; a Cigarettes Cheaper went into Marina Village and was shortly followed by a Check Cashing store; one produces cancer, the other produces usury; documentation provided to Council indicates that Check Cashing Stores can be very deceptive; fees and charges can amount to annual percentage rates of 500- 600 %; people may not realize they are being drawn into high interest rates and economic disadvantage; also, nicotine addiction should not be promoted close to schools; that she will support the moratorium and extensions to the moratorium until a good City -plan is in place,, in the Business and Waterfront Improvement Project (BWIP), there is a section called "incompatible uses" there are a number of things which are listed as cause for considering something an incompatible use; staff should review the BWIP regulations because certain uses near schools should be considered incompatible uses; many cities regulate the number of establishments of a certain kind that can appear in their cities, e.g. Oakland has been reviewing Liquor Store density, there are a number of approaches The City Manager stated the moratorium is aimed on a City -wide basis; the property owner is Chew Lun Benevolent Association which has a San Francisco mailing address. Councilmember DeWitt stated [property] owners are the key people involved with regulating businesses; with Base Closure, the City Special Meeting Alameda City Council September 9, 1999 has attempted to recruit businesses; suggested the Mayor meet with business owners; health and safety implications involved should be addressed; the zoning and visioning process should review types of businesses; the Master Plan should regulate the types of businesses in the City. Mayor Appezzato stated the City has dealt with tough social issues; Alameda was the last City in Alameda County to implement recycling; outlined his background; stated the City will put a library measure on the ballot next year; in the next month, the State Assembly will approve a library initiative; if it passes, 65% of the library cost would be paid for by bond issue; the City would have to pay 35% which is $8- or $9 Million; the civic core should be beefed up; when renovation of City Hall was under consideration, there was opposition; the school bond failed; the community needs to be educated; the City is working on a new development agreement to ensure schools are the best in the community; a strategy group was created to review Park Street and the community; Tuesday night [September 7, 1999 Council Meeting], Council voted on streamlining and upgrading development [in Mixed Use Districts]; there are 1,600 use permits waiting to be acted upon; the City is trying to streamline the way it does business; a major $500 Million corporation wants to move to Alameda, however the City might not ba able to act fast enough to meet the needs before Oakland or another city gets to them; Propositions 218 and 213 took the power from Council to raise money without a 2/3 vote of the people; the City has to be creative and aggressive to ensure the business community is successful; discussed various development projects, e.g. Browman, drive-in site [Kaufman & Broad housing], Bruzzone property, and Catellus project; there will be minor development in the northern waterfront; further stated hopefully, the City will be getting the [former Navy] Base for free and will reach an agreement with Catellus within the next three months; the community has to decide what it wants for the City; change is not bad if it is paced; the City is going in the right direction; the visioning process for the business community is vitally important; the City needs to hear from everyone when there are town hall meetings on changes in various parts of the community, not just immediate neighbors; there are people who do not want anything done; there needs to be a balance and both sides should be heard; the real estate community is involved and has a government relations committee; nice things are happening; people care; discussed voter turn out and [possible] library measure; explained how long he has been in the City of Alameda; encouraged people to voice opinions. AGENDA ITEMS (99-451) Emergency Ordinance No. 2804, "Establishing a Forty-Five Day Moratorium on the Issuance of Building, Zoning, Occupancy and Other Permits for the Establishment or Expansion of Check Cashing Establishments." Adopted. Special Meeting Alameda City Council September 9, 1999 Councilmember Johnson moved adoption of the Emergency Ordinance. Councilmember Kerr seconded the motion, which carried by unanimous voice vote - 5. (99-452) Emergency Ordinance No. 2805, "Establishing a Forty-Five Day Moratorium on the Issuance of Building, Zoning, Occupancy and Other Permits for the Establishment or Expansion of Activities Devoted Primarily to the Sale or Exchange of Tobacco-Related Products." Adopted. Councilmember Kerr moved adoption of the Emergency Ordinance. Councilmember Johnson seconded the motion, which carried by unanimous voice vote - 5. ADJOURNMENT There being no further business, Mayor Appezzato adjourned the Special Meeting at 6:22 p.m. Respectfully submitted, Di ne B. Felsch, CMC City Clerk The agenda for this meeting was posted in accordance with the Brown Act. Special Meeting Alameda City Council September 9, 1999