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HomeMy WebLinkAbout1996-12-09MINUTES CITY COUNCIUREDEVELOPMENT AGENCY CITY OF HUNTINGTON BEACH 5:00 P.M. - Council Chamber Huntington Beach, California Monday, December 9, 1996 A video tape recording of this meeting is on file in the Office of the City Clerk. Call To Order Mayor Bauer called the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to order at 5:25 p.m. in the Council Chamber. City Counci(IRedevelopment Agency Roll Call Present: Harman, Julien, Dettloff, Bauer, Sullivan, Green, Garofalo Absent: None (City Council/Redevelobment Agency) Study Session - Presentation By Sedway Kotin Mouchly Group - Market Overview Of Three Beach Sites In Huntington Beach - Robert L. Mayer Property - Shea Vickers Property - Pier Plaza Area (240.40) The City Council considered a transmittal from the Economic Development Department of a report dated November 21, 1996 titled Market Overview of Three Beach Sites In Huntington Beach prepared by Sedway Kotin Mouchly Group which includes a review of the three sites to identify the key factors that will affect their development, a detailed survey of existing and near term competitive developments in Orange County, a definition of the competitive position of the three sites, and a definition of the most feasible near term development for the three sites. Sedway Kotin Mouchly Group projects that the sites have considerable market support and will be successful in the near term in the highly competitive Orange County markets for the initial elements of entertain mentiretail space, resort hotel, time-share, and high density residential. Robert L. Mayer City Leased Property Two distinct areas, District 9 and the portion of District 8 that extends roughly from Huntington Avenue to Beach Boulevard. District 9 includes the Waterfront Hilton parcel and an additional approximately 18 undeveloped or underutilized acres. It is a strip of land with about 2,000 feetof Pacific Coast Highway frontage averaging about 350 feet in depth until it broadens substantially at Beach Boulevard. The portion of District 8 on the property contains some 24.7 acres and includes Driftwood Mobilehome Park. 643 Page 2 - Council/Agency Minutes - 12/9196 Shea Vickers Morgan Stanley Development LLC This is a 31 acre essentially undeveloped property except for a motel and restaurant. Two distinct subareas, District 7 and the portion of District 8 that extends roughly from First Street to Huntington Avenue. District 7 includes approximately 10.5 undeveloped or underutilized acres. It is a strip of land with about 1,000 feet of Pacific Coast Highway frontage averaging about 350 feet in depth. The portion of District 8 contains approximately 20.5 acres from First Street to Atlanta Avenue to Huntington Avenue. Pier Plaza Area Approximately 3.25 acres in the vicinity of the pier. Includes three sites: the approximately one -acre restaurant pad south of the pier to the west of Pacific Coast Highway, 1.6 acres of Block 104, and 0.65 acres of Block 105. City Administrator Uberuaga stated that there will not be a presentation by the Waterfront representatives as the representative who was to be present at this evening's meeting is unable to be present. The Economic Development Director informed Council of the purpose of the meeting. He reviewed the type of assistance provided to the city by the Sedway Kotin Mouchly Group. Lynn Sedway, CRE, Principal, Sedway Kotin Mouchly Group, presented information relative to her firm's background, stating that their work has been heavy in the area of retail, particularly downtown retail_ She informed Council of her affiliations, including her position as trustee of the Urban Land Institute. Michael Conlon, CRE, Principal, Sedway Kotin Mouchly Group, reviewed the major points of the report titled Market Overview of Three Beach Sites in Huntington Beach. He informed Council of aspects of the process that his firm used to analyze the areas under study. An array of uses within two broad categories were analyzed: (1) entertainment/retail uses and (2) hospitality uses. Ms. Sedway stated that there was a demand for restaurants and that successful restaurants generate a great deal of sales tax. She stated that movies work well with restaurants as well as bookstores as a complement. She spoke regarding how important time-share development would be to the project. In response to Councilman Garofalo's questions as to whether their firm recommends more cinemas in addition to the six cinemas already there, Mr. Conlon gave examples of cities that have many cinemas and reported on the matter. Councilman Garofalo asked if the firm had come to conclusions on Main Street itself. Mr. Conlon stated the need to have restaurants close to the cinema. He recommended the combination of local and regional uses so that they can be accessed by walking. Ms. Sedway stated that residential development does create use of the downtown. 12/9/96 - City Council/Redevelopment Agency Minutes - Page 3 Councilman Sullivan asked who some of the community leaders were who were interviewed by the firm. The Economic Development Director stated that a list could be presented to Council. The Economic Development Director informed Council that some of the persons interviewed were downtown property owners; Diane Baker, representative of the Huntington Beach Conference and Visitors Bureau; and some former Council members. Discussion was held regarding the number of visitors to Huntington Beach stated in the report. Ron Hagan, Community Services Director, advised the City Council that the numbers are derived from samplings of the persons who visit the beach lots, but that these people may stay in the Seal Beach and/or Newport Beach area. Discussion was held regarding the large visitor service development planned between Newport Beach and Laguna Beach_ Mr. Conlon gave a report on time-share developments nationwide. Considerable discussion was held regarding the feasibility of time-share development in Huntington Beach. Mr. Conlon reported on Councilwoman Dettloff's question regarding the feasibility of putting time-shares on Block 105 of Main Street. Ms. Sedway responded to Councilwoman Dettloff s question regarding when there would be a demand for retail. Discussion was held regarding getting the retail "grouped" rather than being put as a long strip along Pacific Coast Highway. Mr. Conlon stated that he envisioned specialty retail rather than apparel retail which would come later. Ms. Sedway stated that the development must be an anchor to Main Street. Councilwoman Dettloff requested the firm's viewpoint regarding reliance on tourism as she had read that for a city the size of Huntington Beach, reliance on tourism was not wise. Mr. Conlon reported on this issue. Ms. Sedway reported further on time-shares, stating that the only concern was that everyone else would jump into the market; that it is important for the city to proceed now. Mr. Conlon reported on Councilwoman Dettloff's question regarding attraction of investors even though the city has not completed the steps necessary to realize the city's vision. Councilman Harman presented questions on Exhibit No. 5 of the report and verified that the firm's proposals do not include building on the beach. Mr. Conlon reported on Councilman Harman's questions regarding density of time-shares, stating that he would envision three to four stories in order to obtain ocean views. Councilman Harman stated that he agreed with the desire for ocean views but that he would like golf courses and other attractions nearby if he were a visitor to a Huntington Beach time-share. Ms. Sedway and Mr. Conlon reported on the issue. Ms. Sedway stated that particularly on Block 105, time-shares would work. Mr. Conlon stated that residential could be proposed on the site in the near term. 645 Page 4 - Council/Agency Minutes - 1219/96 Discussion was held regarding the feasibility of a restaurant on Block 104. Councilman Green stated that he believed expansion of the multiplex theater seemed to be a long term rather than short term proposal. Mr. Conlon responded to Councilman Green's concerns stating that the cinema was a real key point in the plan. Councilman Green presented questions regarding how to change the image and clientele of the downtown area and achieve the goals set forth in the report. Mr. Conlon reported on how he believed this goal could be achieved. Ms. Sedway stated that she believes the uses which they have proposed in addition to residential will achieve the goal_ Councilwoman Julien requested clarification of time-shares as they relate to the transient occupancy tax revenues. Mr. Conlon stated that it would be about 25% to 30% of the time spent at time-shares at $1,200 per week on season and $800 per week off season when rented and not owner occupied. Mayor Bauer requested that the firm comment regarding the impact of the total proposals on the rest of the city and the need to present its benefits to the entire community. Ms. Sedway reported on this issue, stating that all the uses, including residential, must be studied in this regard. Mr. Conlon responded to Mayor Bauer that the city will have an opportunity to have retail in areas other than Main Street. He stated that rents on Main Street were very high. Mayor Bauer spoke regarding his concern that plans would result in all residential. Mr. Conlon reported on the hope that the Shea Property could be built on a higher ground level with development that would overlook the ocean as does the Waterfront Hotel. Ms. Sedway spoke regarding the difficulty in getting the independent businesses on Main Street coordinated as opposed to the control that would be afforded by a shopping center. Economic Development Director Biggs reported regarding a proposal brought before the Economic Development Committee from the same firm that worked for the City of Long Beach that brought the tenants to Pine Avenue. He spoke regarding the feasibility of the city serving as a catalyst to identify tenants and bring the tenants to the property owners. Mayor Bauer spoke regarding the need for competition downtown which he believes will help change retail on Main Street. Mayor Bauer stated that he believed $15,000 for time-shares appeared to be a little high and perhaps that issue should be studied further. The need to have "branded" time-shares was stressed by the consultants. Ms. Sedway stated that she would provide reports to Council that show time-shares are favorable. Councilman Garofalo spoke regarding the special events that are held in the city that do not require "four walls"; that are held on the beach (surfing, volleyball, etc.)_ Mr. Conlon reported that he had discussed this aspect with Ron Hagan, Community Services Director. He reported on the special events issue as set forth in his firm's report to Council. 1219196 - City Council/Redevelopment Agency Minutes - Page 5 Councilman Garofalo stated that this was the first time that he has seen a plan for the area based on the physical characteristics of the land. Councilman Sullivan questioned if the multiplex theaters may be a fad. Ms. Sedway stated that she agreed there is a limit to the development of multiplex theaters but that there did need to be a certain number of theaters. Presentations By City/Actencv Staff And Respective Consultants Presentation by Shea Business Properties The City Council heard a presentation by Jack Goddard, Vice President, Shea Business Properties, regarding plans for the 31 acres located between Pacific Coast Highway and Atlanta Avenue and First and Huntington Streets. Mr. Goddard addressed Council regarding the property owned by Shea Business Properties and the property's relationship to the plans presented by the Sedway Kotin Mouchly Group. He stated that the importance of the development and redevelopment of Main Street cannot be underestimated. The need to look at compatible, noncompetiting proposals was stressed_ Mr. Goddard recommended that steps be started to amend the General Plan to allow time-shares in the city. Discussion was held between Council and Mr. Goddard. Mr. Goddard spoke regarding the importance of Duke's Restaurant opening. The Community Development Director reported that the Downtown Specific Plan will have to be changed to allow time-shares and possibly time-shares will be subject to Coastal Commission review. Recess - Closed Session The Mayor called a recess of the City Council and the Redevelopment Agency at 7:25 p.m. to consider the following closed session items: Closed Session - City Council pursuant to Government Code Section 54957.6 to meet with its designated repres tatives William Osness, Personnel Director, and Daniel Cassidy, Esquire, Liebert, Cassi "" +"rierson, regarding labor relations matters - meet and confer with the following employee organizations: Marine Safety Officers' Association, Police Officers' Association, Police Management Association, Municipal Employees' Association, Management Employees' Organization, Huntington Beach Firefighters' Association, and Surf City Lifesaving Employees' Association. (120.80) Closed Session - City Council pursuant to Government Code Section 54956.8 to give instructions to the city's negotiator, Michael Uberuaga, regarding negotiations with R.L.M. concerning the property located between Beach and Huntington and Pacific Coast Highway. Instruction will concern price and terms of payment. Subject: Waterfront; Developer's New Proposal. 647 Page 6 - Council/Agency Minutes - 12/9196 Closed Session - City Council pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has been initiated formally and to which the city is a party. The title of the litigation is Reith Schoap v. City of Huntington Beach - Orange County Superior Court Case No. 722009. Subject: Reith Schoap v. City of Huntington Beach. (120.80) Closed Session - City Council pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has been initiated formally and to which the city is a party. The title of the litigation is City of Huntington Beach v. Donald W. Tosh, et at. - Orange County Municipal Court Case No. 22 74 20 Donald W. Tosh, et al., v. City of Huntington Beach - Orange County Superior Court Case No. 76 96 00. Subject: City v. TLC - Tosh v. City. (120,80) Closed Session - City Council pursuant to Government Code Section 54956.9(a) to confer with its attorney regarding pending litigation which has been initiated formally and to which the city is a party. The title of the litigation is City v. McDonnell Douglas Corporation - U.S. District Court Case No. SACV 94 29 LHM (RWRx). Subject: City v. McDonnell Douglas Corporation (120.80) Reconvene The Mayor reconvened the adjourned regular meetings of the City Council and Redevelopment Agency at 9.09 p.m. in the Council Chamber. Adioumment - City Council/Redevelopment Agency The Mayor adjourned the adjourned regular meetings of the City Council and the Redevelopment Agency of the City of Huntington Beach to Monday, December 16, 1996 at 5:00 p.m. in Room B-8, Civic Center, 2000 Main Street, Huntington Beach, California. ATTEST: City Clerk/Clerk City le an ex-officio Cler of the City Council of the City of Huntington Beach, and Clerk of the Redevelopment Agency of the City of Huntington Beach, California 04!4 Mayor/Chairman