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2004-05-18 Special CIC MinutesMINUTES OF THE SPECIAL COMMUNITY IMPROVEMENT COMMISSION MEETING TUESDAY - - MAY 18, 2004 - - 7:31 P.M. Chair Johnson convened the Special Meeting at 9:07 P.M. ROLL CALL - Present: Commissioners Daysog, Gilmore, Kerr, Matarrese and Chair Johnson - 5. Absent: None. MINUTES (04 -023) Minutes of the Special Community Improvement Commission Meetings of April 6, 2004 and May 4, 2004. Approved. Commissioner Daysog moved approval of the minutes. Commissioner Gilmore seconded the motion, which carried by unanimous voice vote - 5. AGENDA ITEMS (04 -024) Recommendation to consider allocating funds for the potential property acquisition and development for the proposed expansion of Ron Goode Toyota. Accepted. Robb Ratto, Park Street Business Association (PSBR), stated that he supports the staff recommendation; signing the Disposition and Development Agreement would allow the project to move forward; PSBR considers the project to be a potential catalyst project for the northern part of the district. Chair Johnson stated that the City put a great deal of effort in working with Ron Goode Toyota and was willing to commit the money necessary to keep Ron Goode Toyota in Alameda. Commissioner Kerr inquired how much sales tax would be generated over the next 10 years, to which the Executive Director responded approximately $7 million per year. Commissioner Kerr stated that the development area was between Clement Avenue, Eagle Avenue and Park Avenue; that the westwardly proposed line ran behind the Baron building and the canvas shop; inquired whether the project would involve the Victorians to the west. The Executive Director stated that the project would not affect properties beyond those identified. Special Meeting Community Improvement Commission 1 May 18, 2004 Commissioner Daysog stated that Ron Goode Toyota has been great for the City; that the City should do what was necessary to improve the northern side of Park Street. Commissioner Kerr stated that the Knowles improvements have beautified the southern portion of the Park Street business area. Commissioner Gilmore moved approval of the staff recommendation. Commissioner Matarrese seconded the motion, which carried by unanimous voice vote - 5. (04 -025) Resolution No. 04 -125, "Resolution of Necessity to Acquire Property by Eminent Domain for Redevelopment Purposes; Authorizing Commencement of Litigation to Acquire Property and for Order of Possession; Code of Civil Procedure Section 1245.235 et seq. (2531 Blanding Avenue, Alameda, CA - Rite - Aid)." Adopted. Raymond Payne, Rite Aid Drug Stores, stated that he is opposed to the recommendation which would result in the condemnation of Rite Aid; the condition of the property and the store do not reflect well on Rite Aid or the shopping center; for ten years, there have been continual discussions with the landlord and various parties about the threat or the promise of redevelopment; lack of investment in the property is the result of continual proposals being presented to do something different with the property; that both the City and Rite Aid would benefit if Rite Aid stays in the City; Rite Aid has served the community for over 30 years; Rite Aid has done everything to be part of the project; inquired why the City would pay Rite Aid to leave; the cost of Rite Aid's departure is more than the City realizes; requested Rite Aid be considered as a part of the project and the City. Lee Rosenthal, Thrifty Payless Corporation /Rite Aid, stated the Community Improvement Commission is governed by Community Redevelopment Law which creates certain rights for property and business owners who are proposed to be displaced by redevelopment projects; a right provided is a reasonable opportunity to re -enter the existing businesses in the project area; the Commission's responsibility as the Redevelopment Agency is to provide a reasonable opportunity to Rite Aid; the redevelopment project will replace the existing shopping center with a new, improved center that has spaces that could and should accommodate a new Rite Aid; Regency [developer] has told Rite Aid that it does not want a Rite Aid store in the center; the reason, not because the center is a clothing or furniture specialty center, not because it is a residential project that does not accommodate retail or because Special Meeting Community Improvement Commission 2 May 18, 2004 Regency has a policy excluding drug stores; Regency's ten northern California shopping centers have supermarkets with drug stores; Rite Aid is being excluded so that Regency can give an exclusive drug store franchise to Nob Hill Foods; Rite Aid is not being given a reasonable opportunity to re -enter business in the project area; in 2001 and 2002, Rite Aid had discussions with Mr. Mr. Doug Wiele [developer] regarding the property; two years later the City bought the shopping center; the City sold the property to Rite Aid and Regency; Rite Aid, at the request of the City, requested an opportunity to be part of the center and Regency said no; there is a financial incentive for the City to work to have Ride Aid relocated in the center; agreement with Regency has a $1.5 million cap on what Regency is obligated to spend for acquisition; Rite Aid's appraisals of its interest in the center is $2.5 million which is money that the redevelopment agency would pay; there should be an incentive for the City not to adopt the resolution and put Regency and Rite Aid in a situation where Rite Aid can have a store in the center. Commissioner Kerr stated that she was unaware of Rite -Aid's desire to stay in Alameda; that she could not agree with the Planning Board's assessment. Commissioner Daysog stated that it was important to move forward with the project for the Fernside Boulevard residents. Chair Johnson concurred with Commissioner Daysog. Commissioner Matarrese concurred with Commissioner Daysog; stated twelve years of blight needs to be rectified. Commissioner Kerr inquired how much sales tax Rite -Aid produces yearly. Mr. Payne responded that general sales are in excess of $6 million per year. Commissioner Kerr inquired whether Nob Hill Foods would include a pharmacy; to which the Development Services Director responded in the affirmative. Commissioner Matarrese moved adoption of the Resolution. Commissioner Daysog seconded the motion, which carried by the following voice vote: Ayes: Commissioners Daysog, Gilmore, Matarrese and Chair Johnson - 4. Noes: Commissioner Kerr - 1. (04 -026) Resolution No. 04 -126, "Resolution of Necessity to Special Meeting Community Improvement Commission 3 May 18, 2004 Acquire Property by Eminent Domain for Redevelopment Purposes; Authorizing Commencement of Litigation to Acquire Property and for Order of Possession; Code of Civil Procedure Section 1245.235 et seq. (2523 Blanding Avenue, Alameda, CA - Launderland)." Adopted. Commissioner Daysog moved adoption of the Resolution. Commissioner Matarrese seconded the motion, which carried by the following voice vote: Ayes: Commissioners Daysog, Gilmore, Matarrese and Chair Johnson - 4. Abstentions: Commissioner Kerr - 1. ADJOURNMENT There being no further business, Chair Johnson adjourned the special meeting at 9:35 p.m. Respectfully Submitted, Lara Weisiger Secretary, Community Improvement Commission The agenda for this meeting was posted in accordance with the Brown Act. Special Meeting Community Improvement Commission 4 May 18, 2004