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Santa Ana's top news & views blog

Category Archives: Development

Sean Mill to be appointed to the Santa Ana Planning Commission next week

Posted on by Posted in Civic Affairs, Development, Santa Ana, Sean Mill 16 Comments

Next week’s Santa Ana City Council meeting was moved to January 4, which is on Tuesday.  Ordinarily the first Council meeting of the year would likely be a boring affair, but not this time.  Our blogger, Sean Mill, is going to be re-appointed to the Santa Ana Planning Commission.

Mill served honorably on that Commission, and helped to shepherd the new Courtyard by Marriott, which is being built at MacArthur Boulevard and MacArthur Place.

I spoke to Mill today and he said that his goal as a Planning Commissioner will be to help to guide new developments through the planning process, as they will bring badly-needed jobs and economic growth to our city.

Mill works for a title company and he has been involved in Santa Ana politics virtually his entire adult life.  He worked on Santa Ana Mayor Miguel Pulido’s first campaign, many years ago, and also helped former Assemblyman Dick Longshore, who died in 1988, after winning the June primary that year.

Mill is a graduate of the University of California, at Irvine, where he earned a political science degree.  In his college years he worked on the Wally George T.V. show.  Mill also worked for Coach Jerry Tarkanian and the NCAA champion Running Rebels.

Mill works today for a title company.  He has a great understanding of planning issues and development.  Congratulations to Mill.  I know that he will be a positive addition to the Santa Ana Planning Commission.

The agenda for next week’s Council meeting has not been posted yet.  I suspect it will be up later this evening, at this link.

Downtown businesses need to support the Station District

Posted on by Posted in Business, Civic Affairs, Development, Fiscal Sustainability, Housing, Jobs, Redevelopment, Santa Ana 1 Comment

The problems that are being incurred by the downtown businesses can’t be blamed on Downtown Inc., the restaurant association, Mike Harrah or the PBID.  The problems they are incurring are being caused by a lack of consumers shopping in their businesses.  The downturn in the economy plays a role in this as does many of these shops lack of a proper business model.  Another major factor is the redevelopment of the Lacy Neighborhood and the surrounding area.

The removal of the residents from this area in order to proceed with the agressive redevelopment plans that the city leaders have envisioned took a huge chunk of the consumer base right out of the downtown area.  Many of those folks that were within walking distance of the Fiesta Marketplace and Calle Cuatro are no longer there and that has most definately had a major impact on consumer activity in the area.

The redevelopment plans by the city have been scaled down some but they are still moving forward with a terrific project called the “Station District” which will bring in new residents to the area and build up a consumer base for the businesses in the area.  The project would be much further along already and we would be closer to a revitalization of the downtown were it not for a lawsuit brought by the “Coalition of No” calling itself Friends of Lacy.

The downtown businesses should be out in full support of the “Station District” and put pressure on these litigious folks to get out of the way of progress.  Oddly some of the same downtown businessmen who are now protesting the PBID and blaming it for the economic problems facing the area are also closely allingned with those standing in the way of moving the “Station District” forward.  They are essentially acting as their own worst enemies.

There is no reason why our downtown area can’t become a thriving economic success in the same fashion that Old Pasadena has.  Old Pasadena and our downtown area both have such incredible charm, beautiful architecture and unlimited potential.  Pasadena is achieving that potential because the businesses are buying into the plan set forth there, one that is not that much different than that of Downtown Inc’s.

Now I am not saying that we should replace our current businesses with a bunch of trendy corporate one’s, but we do need to help these folks create a business plan that will attract a wide consumer base rather than one targeting a small nitch.  We have businesses that fit this model already,  Calacas is a prime example of this.

However the best medicine for the downtown is consumer growth and we can definately get that by increasing the number of consumers living near and around the downtown area.  That starts by supporting the “Station District” and the residential development that comes with it.  This will be a winner for the business owners and for the city’s tax base in general.

Did Pulido earn a fee by helping to seal a $2.3 billion dollar real estate deal?

Posted on by Posted in Business, california, Civic Affairs, Development, Miguel Pulido, Real Estate, Santa Ana Leave a comment

The State of California announced on Oct. 12 that it would be selling 24 government office buildings — including the Ronald Reagan State Building in Los Angeles and the San Francisco Civic Center — to a group of private investors for $2.3 billion, according to CNBC.

I don’t personally like this deal as the State would still need the buildings and would have to lease them back from the new owners.   However, the state is broke and Governor Arnold Schwarzenegger has been trying to raise money for the last two years.

Today the story moved in a different direction,  after it was revealed in court documents that Santa Ana Mayor Miguel Pulido would allegedly receive $500,000 if the transaction went through, according to the L.A. Times.

Here are a few excerpts from the Times:

Mayor Miguel Pulido said he was “proud” of his involvement in the sale and called the proposed payment a “success fee.” Pulido, whose mayoral post is part-time, said he was acting as a “private citizen” in the transaction.

But after revelations about the proposed fee appeared on The Times’ website, Pulido said he had “no written agreement” with the consortium that placed the winning bid for the 11 state properties. Late Monday, he said “I now believe there’s no hope that I will receive any money for this transaction under any circumstances.”

As you might expect, Pulido’s detractors are in a full frenzy over this.  But let’s step back and look at this deal objectively.  If indeed Pulido was supposed to get a $500K fee, is it really that much compared to the total price tag of the deal?  I calculated it and his supposed fee came to only .02% of the deal.

Realtors make, on average, a 6% commission, according to Mortgage Daily News.  If Pulido had been paid along those lines, for this massive deal, he would have earned a $138 million fee.  But he isn’t a realtor, although he says he did earn the fee by bringing the investors to the table and helping to consummate it.

What Pulido did is NOT illegal.  Whether or not it is ethical depends on who you ask.  But the bottom line is that pulling together a deal like this is not easy.  Pulido had the connections and the wherewithal to make this happen.  It sure looks like he earned his fee.

But that isn’t how this will spin out in the local blogosphere, I daresay.  Pulido will get roundly ripped by the usual detractors.

Let me remind you, my readers, that this man is a part-time Mayor.  He is a consultant and he makes a living the best way he can.  He has been accused over the years of all sorts of malfeasance, but has never been charged with any crimes or been arrested.

Other local elected officials in Orange County are also involved in such deals, including Irvine’s Councilman Larry Agran, Anaheim’s outgoing Mayor Curt Pringle; and Tustin’s Mayor Jerry Amante.  And outgoing Fullerton Councilwoman Pam Keller, as well as Anaheim Councilwoman Lorri Galloway, have both pumped public funds into their respective non-profits, which, as I understand it, pay them each a salary.

Some Santa Ana activists believe that our Mayor should be full time and he should be paid appropriately.  Were that to happen, it would lessen the need for Pulido to get involved in such transactions.

As for those who supported his opponent, local attorney Alfredo Amezcua, this year, they should know that he supposedly owns 39 properties, which I believe are mostly rentals.  He is no stranger to real estate deals.  I am told he makes far more money this way than he does defending criminals.  Does anyone think Amezcua would not jump at a chance to make a half million by brokering the sort of deal that Pulido got involved with?  Of course he would go for it!  Remember too that Amezcua fleeced a lot of people with his Santa Ana Business Bank.  The investors lost almost half their investments by the time he found a buyer.

Rip Pulido if you must, but the alternative this year might have been a complete train wreck.

Santa Ana Masonic building bought by Church of Scientology still empty, after four years

Posted on by Posted in Arts and Culture, Business, Churches and Religion, Development, Real Estate, Santa Ana 4 Comments

A reader asked me recently for information about the purchase of the old Masonic temple in downtown Santa Ana, by the Church of Scientology.  I did not know much about it at the time, but can now say that this is indeed a story worth visiting.

Developer Mike Harrah sold the building, after turning it into the Santa Ana Performing Arts Center.  It is a beautiful building, but if you go by there it is still essentially empty.

What I found out was that the Church of Scientology had the money to buy the building, but has since been unable to raise enough money to do anything with it.

In 2006, Church spokeswoman Marie Murillo said the building was being purchased for an undisclosed price because the 1,500-member Orange County church was growing and needs more space, according to the O.C. Register.  Murillo also said that the building would be used for classes, counseling sessions, weddings, Sunday services and other church events, and it would be made available for community events.  None of that has come to pass.

The OC Weely’s Gustavo Arellano reported in June of this year that the City of Santa Ana had posted a notice on the door of the building, advising that the water was going to be shut off due to non-payment of their water bill.

A blogger named Mark “Marty” Rathbun reported, also in June, that the Church had stated in a promo piece that:

Thus we do have a building. But it is incomplete. It needs to be renovated to our Ideal Org standards. Why is renovation not started and completed?

At the time we purchased the building, it was stated that funding for our building was complete. Why? The plan was to sell our current building, This would provide the money needed to renovate the build to our ideal standards.

Times do change. Since then, the real estate market has crashed and the valid and available buyers reduced with the economy. The current church facility has not yet sold. Thus our purpose in creating a new ideal church facility is slowed due to a lack of funding. Also the Public Division spaces have been re-designed based on upcoming releases and testing of designs in current Ideal Orgs.

The evolution is complete and we have the go ahead. We need to go straight up and vertical and occupy our building so we have not an Ideal Org building but an Ideal Organization and all that it means.

Rathbun goes on to state that the Church has been shrinking worldwide and that perhaps this building was not needed.  Moreover, they have been directed to raise money to finish remodeling the building by selling copies of their book “Dianetics.”

I have observed this in person.  They were selling the books at the recent Santa Ana Fiestas Patrias.  Here is a picture I took of their booth:

Note that they actually have shirts in Spanish!  Funny.  But folks were NOT stopping to visit.

Does Scientology have a future in Santa Ana?  Maybe, but not amongst Latinos, I don’t think.  However, they do appeal to Hollywood types.  That means they might find a few converts amongst the denizens of the lofts in downtown Santa Ana.  But, apparently they are treading water and just cannot raise the money they need to, in order to finish remodeling what used to be our Santa Ana Performing Arts Center.

I cannot fault Harrah for selling it.  He needed the money for his One Broadway Tower project.  We can but hope that the Church of Scientology will sell it again to someone who will make better use of it.

Amezcua’s record in banking and business falls far short of Pulido’s

Posted on by Posted in Alfredo Amezcua, Banking, Business, Development, Jobs, Labor, Miguel Pulido, Santa Ana 10 Comments

Santa Ana mayoral candidate Alfredo Amezcua has been complaining endlessly about job creation and the state of the economy here in Santa Ana. But how did Amezcua fare when he became accountable for millions of investor dollars, when he started the Santa Ana Business Bank?

Take a look at the chart above.  It would appear that Amezcua’s shareholders lost close to half of their investment.  Grandpointe Capital paid them $5.96 in cash per share, according to a press release dated June 18.  Their shares were initially valued at $9.75 when the Santa Ana Business Bank first opened for business.

The same hubris that led Amezcua to believe that he and a Board of Directors with ZERO experience in banking could succeed in that industry now applies to his mayoral race.  He says he can do the job, but can he?  Will he run the City of Santa Ana the way he ran his bank?

I criticized Amezcua and his bank when they opened.  I said it was bad timing and I was right.  Here is what I wrote:

What gives?  Are these people really that confident that they can pull the wool over everyone’s eyes?  Or are they prototypical dumb criminals who will eventually get caught red-handed?  Who knows?  But we do know this – right now is a bad time to be in the banking business.

Amezcua approached me after I wrote that and said that I was welcome to write about him and his family, but I should never write about his bank.  I later got a letter from his lawyer.

But I was right.  And now Amezcua and his shareholders have apparently lost a ton of cash.

Think back to who he selected to serve on his board.  Carlos Bustamante and his twin brother.  Mike Metzler.  Victoria Betancourt.  What made Amezcua think that bunch would succeed in operating a bank?  Ironically I hear that these same former board members are now very peeved with Amezcua.  Apparently they blame him for the bank’s fortunes.

One politician who wanted nothing to do with Amezcua’s bank was Santa Ana Mayor Miguel Pulido.  He didn’t stand in Amezcua’s way, but he said no thanks.  Pulido serves on the board of the Fullerton Community Bank – a very successful bank.  They even made money last year, during the recession.

When you compare how Pulido and his bank have fared over the years to what Amezcua and his pals did to the Santa Ana Business Bank, the contrast is stunning.

Pulido is working hard with our City Council to pull our city out of the current economic doldrums.  They have been able to attract a lot of new development, which means jobs and investment in our city.  Amezcua?  He is opposed to most of that development and is in league with the same Usual Suspects who are suing the City of Santa Ana because one of those projects includes affordable housing.

Go ahead and vote for Amezcua if you want to, but his record in business isn’t good.  Why anyone expects that to change if he becomes our next Mayor is a real mystery.

Construction begins on new Courtyard Marriot Hotel in Santa Ana

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Construction has started on a 155-room hotel that will further enhance the southern gateway to the City of Santa Ana at the 55 Freeway.

The four-story, 90,000-square-foot Courtyard by Marriott at MacArthur Boulevard and MacArthur Place is the newest addition to the Hutton Centre business campus that surrounds a 2.5-acre lake. The developer said the hotel, which targets business travelers, will help rebrand the campus

Santa Ana –based Nexus Co. will develop and own the hotel, which should be completed by early summer next year, according to Cory Adler, Nexus president.

An official groundbreaking of the new Courtyard by Marriott will take place Aug. 25 at 5 p.m. at 8 MacArthur Place at MacArthur Boulevard and MacArthur Place.

The less than 3 acres the hotel will sit on originally was supposed to be the site of the third Skyline condo tower built by Nexus. But changing market conditions caused the company to rethink the residential project.

“We are pleased to be bringing the Marriott name and a world class hotel to the city,” Adler said. “It sits at the southern gateway to Santa Ana and the 55 Freeway.”

San Marcos-based Lusardi Construction Co. will build the hotel.

Adler estimated that the hotel will bring hundreds of construction jobs to the area and as many as 60 fulltime positions when it open.

“It will also bring a lot of business travelers to the area,” he said.

The $24 million hotel also represents about $1 million in additional revenue to the city – an estimated $800,000 from bed taxes and another $200,000 in tax increment revenues from the enhanced value of the property.

Founded in 1981, Nexus is a full-service real estate services firm with offices in Santa Ana and Phoenix.

Nexus develops a wide range of real estate product s, including office, retail, industrial/R&D, mini-storage, mixed-use, hospitality, single-and multi-family residential, and conversions. The company has developed more than 1,000 hotel rooms in the past.

The Courtyard by Marriott customers includes the casual and family travelers as well as the business person. Amenities and features have been designed for comfort, style and room to stretch your legs and relax.

Construction to start on the tallest building in Orange County

Posted on by Posted in Business, Civic Affairs, Development, Real Estate, Redevelopment, Santa Ana 3 Comments

Construction on the tallest building in Orange County is expected to begin this fall just north of the Civic Center in Santa Ana.

One Broadway Plaza, which has been in the planning stages for 6 years, is a 37-story, 530,000 square foot office tower that will rise 493 feet from the corner of 10th Street and Broadway in midtown area of the City.

The building, which will be a gateway to the downtown urban center of Santa Ana, will include a 9-level, 2,500 space parking garage.

The Santa Ana City Council removed four conditions in the development agreement that will allow work to start on the tower by the end of September, said Jay Trevino, executive director of the city’s Planning & Building Agency.

No leases have been signed yet but Trevino said the building will be ideal for professional tenants such as law firms and financial institutions that want to be close to the city’s government center with its state and federal courts.

Santa Ana residents will have an opportunity to apply for the estimated 2,900 construction jobs and large number of full-time jobs created by tenants in the building.

“Our City Council was interested in the job creation potential of a project like this,” said Santa Ana Councilmember Sal Tinajero. “They also wanted to make sure that local residents would have a good shot at those jobs whose openings will be posted at the Santa Ana Work Center.”

One Broadway Plaza is just a few blocks north of the Station District, a 94-acre project that will include new homes, stores and restaurants that will be built between the city’s train station and its downtown Civic Center.

The Santa Ana Boulevard corridor is a key link between the I-5 freeway and Downtown and will also serve as a major transportation link for the planned Go Local street car system.

Assemblyman Solorio issues statement regarding new RFP to sell the OC Fairgrounds

Posted on by Posted in Arts and Culture, Business, california, Costa Mesa, Development, Jose Solorio, Orange County, Santa Ana Leave a comment

For Immediate Release: August 24, 2010
For More Information Contact: Carol Chamberlain – Office: (916) 319-2069, Cell: (916) 804-5355

Assemblyman Solorio Issues Statement Regarding New RFP to Sell OC Fairgrounds

SACRAMENTO, CA – Assemblyman Jose Solorio (D-Anaheim) issued the following statement regarding the Department of General Services’ new formal Request for Proposals (RFP) to sell the Orange County Fairgrounds in Costa Mesa.

“The Governor is exercising his options regarding how to sell the OC Fairgrounds. Rather than facing great unknowns regarding what the new highest bidder would want to do with the property, my preference would be to make the deal with Costa Mesa better. I’ve been working with the Governor’s office and City of Costa Mesa to strengthen the governance language and address employee transition issues.

The sale to Costa Mesa would ensure that the OC Fair, Equestrian Center and Farm are preserved, the OC Fair employees are protected, the property remains under public ownership, and significant revenue is generated for the state to fund essential services like public education and public safety.”

State Assemblyman Jose Solorio is the Chair of the Assembly Insurance Committee and serves on the Assembly Appropriations, Local Government and Transportation Committees. He represents the Sixty-Ninth Assembly District, which includes the cities of Anaheim, Garden Grove, and Santa Ana. For more information about Assemblyman Solorio, visit www.assembly.ca.gov/solorio.
________________________________________
Capitol Office: State Capitol, P.O. Box 942849 • Sacramento, CA 94249-0069
Phone: (916) 319-2069 • Fax:(916) 319-2169
District Office: 2400 East Katella Avenue, Suite 640 • Anaheim, CA 92806
Phone: (714) 939-8469 • Fax:(714) 939-8986
E-Mail: Assemblymember.Solorio@assembly.ca.gov
Web Site: www.assembly.ca.gov/solorio

Santa Ana Planning Commission to consider changes to the Yost Theater’s C.U. permit

Posted on by Posted in Business, Civic Affairs, Development, music, Redevelopment, Restaurants, Santa Ana Leave a comment

Dennis Lluy, the hardworking manager of the revived Yost Theater, is going to appear before the Santa Ana Planning Commission tomorrow, Monday, August 23, at 6:30 pm, to ask for permission to allow a restaurant with a Type 47 ABC license, after hours operation and a banquet facility at the Yost Theater/Ritz Hotel buildings at 301-307 North Spurgeon Street, located in the Downtown (DT) zoning district.  Click here to read the Planning Commission’s Agenda.

Lluy is asking for help in getting this item approved.  He offered this explanation today about the current status of the Yost, on our sister blog, the Orange Juice:

I have been renovating the Yost for the past couple of years and invested my life savings and countless hours dealing with permits, safety issues, and general renovations. The property owners have also invested well over a million dollars since the eighties. The Yost was in dire need of structural upgrades that would help keep the building from collapsing in a major earthquake when they purchased the building.

We have hosted many community events when construction allows. Recently, we have had to stall because at any point we will move on replacing the structural supports that keeps the roof over the stage from collapsing. We have been waiting for the city to approve our plans for several months now. They are short staffed and this keeps us from booking events more than 3 weeks out.

Furthermore, the Yost is restricted from hosting many types of events until all the permits are approved.

The history of the Yost is a sad one.  The property was taken from the Olivos family, back when Dave Ream was in charge of Redevelopment in Santa Ana, before he had become our City Manager.  Click here to read more about that.

We cannot undo those past wrongs, but I am happy that Lluy has undertaken the task of restoring the Yost to its past greatness.  I support this effort and urge my readers to do the same.

Below is a personal message that Lluy recently sent to his Facebook friends regarding this meeting:

Hello friends, neighbors and supporters,

On Monday Aug. 23 at 6:30PM, the Ritz and Yost is scheduled to be on the City of Santa Ana’s Planning Commission meeting agenda at City Hall. The commission will be voting on permit conditions essential to our operations.

For the past two years, the property owners, my business partner and I have worked diligently to renovate the historic Yost Theater into a world-class entertainment facility. We are aiming to be fully operational by June of 2011.

We are requesting your support by attending and/or speaking at the hearing. As we are expecting some opposition, it is imperative for us to show considerable community support. Please let me know if you are interested in attending or have questions.

City Hall Address:
20 Civic Center Plaza
Santa Ana 92703

Thanks,
Dennis Lluy, dennis@yosttheater.com
Ritz and Yost Inc
307 N. Spurgeon St.
Santa Ana, CA 92701
www.yosttheater.com
T:310-493-2050

The City of Santa Ana strikes back at Glen Stroud and his fraudulent Grand Jury report

Posted on by Posted in Civic Affairs, David Benavides, Development, Lawyers, Orange County, Santa Ana Leave a comment

Ousted Santa Ana City Commissioners Glen Stroud and Tish Leon

FOR IMMEDIATE RELEASE
Contact: David N. Ream
May 24, 2010 City of Santa Ana
(714) 647-5200

Santa Ana, CA – The City of Santa Ana has received the Grand Jury report and is currently preparing a response. Although we respect the work and the role of the Grand Jury, we have tremendous concerns with the findings and believe their process was filled with inaccuracies and only serves to confuse the public. The reality is that this transit project is on schedule, under budget and successfully moving forward.

“The facts are that this is one of the biggest infrastructure projects our city has ever undertaken and it is currently on schedule and under budget. The public process we went through to select a team of consultants was transparent and without any wrongdoing, which is what the Grand Jury report ultimately notes. The contract with the hybrid team that the City Council selected is $2,195,470 below the original bid recommended by staff,” stated Mayor Miguel A. Pulido.

Additionally, the project is on schedule and continues to be administered effectively by the Orange County Transportation Authority. “As part of the Go Local process, OCTA has been working extremely closely with the City of Santa Ana including its staff, consultants, and elected officials. OCTA has provided oversight of the project, and we are pleased with the progress and work done to date,” stated CEO of OCTA Will Kempton.

The City is excited about this project and is confident that it will continue to move forward smoothly and without deficiencies. “The contract was not flawed and we recognize that the Grand Jury found no illegal actions by the City. There was no factual violation of the Brown Act and no secret meetings. It is the responsibility of councilmembers to meet with their constituents, including business owners who are seeking to do work in the community. All meetings regarding the merits of the project were properly noticed. The recommendations in the report are general and benign. We have reinforced our existing City policies by adopting improved RFP/RFQ guidelines to ensure the decision making process continues to be transparent in the view of our residents,” stated City Manager David N. Ream.

Based on the above mentioned facts, the Grand Jury findings are inconsistent and are in direct conflict with reality. City Attorney Joe Fletcher stated: “The mission of the Grand Jury in this setting is to conduct investigations regarding the administration and affairs of cities in Orange County and to make recommendations as it may deem proper and fit. This report has gone beyond that mission to infer inappropriate or unethical conduct on the part of city officials without any factual basis for such conclusions. Despite innuendo to the contrary, the report contains no evidence of illegal or unethical conduct and often relies upon misstatements of legal standards and misinterpretation of applicable statutes.”

Furthermore, Mayor Pro Tem Claudia Alvarez stated “I am deeply concerned with the fact that a disgruntled, fired city commissioner with an obvious bias was allowed to thereafter serve as a member of the Grand Jury in this investigation. An objective fair and impartial jury goes to the heart of the American justice system. By his participation in deliberations, investigations and votes, Mr. Glenn Stroud has compromised the integrity of the Orange County Grand Jury and tainted this entire investigation. The residents of this county deserve better.”

####

Click here to read the City of Santa Ana’s response to the Judge.  Be sure to read it.  Councilman David Benavides took money from both George Pla and Glen and Julie Stroud.

Santa Ana’s Usual Suspects seek a court order to mandate a new vote on OBP tower

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Debbie McEwen and the Usual Suspects are taking the City of Santa Ana to court again

Santa Ana’s Usual Suspects are seeking a court order to block the city from removing the pre-leasing requirement for the One Broadway Plaza (OBP) project, if the city doesn’t reconsider or put it to another public vote, according to the O.C. Register.

The Santa Ana City Attorney already told these folks that the City Council has the legal right to change the developer agreement, but that isn’t good enough for them.  Now they will force the City of Santa Ana to waste tax money in court fighting them.

This same bunch already sued to stop the Santa Ana Transit Zone project, which includes affordable housing.  They appear to be opposed to all new development.

This project will result in almost three thousand jobs – and thanks to Santa Ana Mayor Pro Tem the developer is going to have to ensure that as much as possible the jobs go to local residents.

In related news, one of the Usual Suspects who is opposing OBP, Thomas Gordon, failed to qualify for the November ballot, in his bid for Ward 6 on the Santa Ana City Council.  That won’t make his number one backer, Usual Suspect Debbie McEwen, very happy.  She was all set to host a coffee for Gordon’s now-dead campaign.

Incidentally, Mayoral candidate Alfredo Amezcua showed up to the Santa Ana City Council meeting when the amendments to the OBP developer agreement were discussed.  He validated his parking stub and left without comment.  His backers are known to be part of the Usual Suspect coalition that is opposing OBP.

Others in the coalition include rogue City Commissioner Tish Leon, who will soon be dismissed from the Santa Ana Parks and Recreation Commission, after we broke the story that she terrorized a sixteen year old student commissioner so badly that he quit that commission; and Glen Stroud, who has already been tossed off two City Commissions, as well as his wife Julie, who joined in the bullying of the aforementioned student commissioner.

The anti-OBP coalition is also full of busy bodies from the Santa Ana Neighborhood Associations.  The City of Santa Ana really needs to pull their funding.

The voters already voted to pass Measure A, approving OBP.  Why these people keep fighting the project is a real mystery.  I guess they don’t want local workers to get back to work.

Santa Ana resident speaks out on proposed changes to the One Broadway Plaza developer agreement

Posted on by Posted in Business, Development, Redevelopment, Santa Ana 2 Comments

The City of Santa Ana has not yet posted the minutes from the Santa Ana Planning Commission meeting where the changes proposed by developer Mike Harrah to his One Broadway Plaza developer agreement were approved. 

However, our blogger, Rob Cook, who lives in Santa Ana, has posted there observations of the proposed changes over at the Santa Ana Citizens Yahoogroup:

Items of DA amendments under consideration.

4.3 51 percent ownership requirement.

Wants to bring in a 50 percent partner.

5.1.1 offsite mitigation, traffic plan studies, timing and payment.

Would leave the dollars for the traffic study in escrow account and do the traffic study later rather than sooner.

(I have read 5.1.1 over and over again and I do not understand it at all, but I can tell there is a lot more to it than the funding of a traffic study)

5.8 50 percent pre lease

Would eliminate the pre lease clause.

5.8.2 No Redevelopment Subsidy

Would eliminate this clause.

(There was a lot of discussion on this point and the reasons for it. But the elimination of this clause goes way beyond what was discussed. If changed, it should be adjusted to the tax increment only, as presented by OBP and city staff, and not as open ended anything goes.)

5.9 (3) Historic Structures on property

Increase the time allowed to fill the construction hole from 3 months to 4 months if the building has not yet started.

(There is 3 parts to 5.9(3), and the first 2 have been completed. Leaving only the 3rd part that deals with the hole for the foundation.)
　
It is too bad that these meetings are not video recorded as you can not see the non-verbal parts of the back and forth discussions that is not present in the minutes.

All of the commissioners were for the project and the 2 no votes were because.

Ward 5. Moving too fast and not enough time for the commissioner to understand the impacts.
He wanted to postpone the vote.

Ward 3 Had put forth a substitute to make the DA agreement run with the entitlements.
Mike was against this and it failed. (The agreement does provide for extensions)

Part of the discussion was if the deal OBP has to fund and build with the partner and banker does not get the relieve asked for in time to beat the changes in the building code (this fall/winter), the deal fails and he puts it on hold for another 2 years, until the expiration of the DA.

The mitigations in the DA that are also part of the EIR do not expire, so the saving to OBP llc comes from the parts that do expire in 2 years.

The requirement to built as a class A building and to use a Union Labor Agreement.

So the changes would benefit OBP by:

@100,000 in interest earning to OBP by having the 1.2 million held in the escrow account controlled by OBP instead of deposited into a Santa Ana City account for the 2 plus years.

@1,600,000 in property taxes per year for 30 years, or 10 years, not sure about number of years, so at least 16 million dollars to OBP in a 10 year period.

@unknown saving in having the building permits issued before the change in the building code would require a total redesign of the building.

So the changes would benefit Santa Ana by:

NONE. The changes bring nothing for Santa Ana. In fact the city will lose the earning on the traffic study money because the city will not control the deposit account.

(The benefits of economic activity in building the project to the city doesn’t change because of the DA being changed, just might make those benefits earlier by 2 years maybe.)

I think OBP needs to share some of above gains, since only action by the city will create this 16 million dollar windfall for OBPllc. (And by share, I DO NOT mean extra campaign donations.)

Is there a reason that the city does not put the minutes of these meeting on their web site immediately?  I would have liked to reread the participants comments before making my summary.

Alfredo Amezcua’s campaign website offers no new ideas or solutions

Posted on by Posted in Business, Development, Education, Elections, Miguel Pulido, Politics, Public Safety, Santa Ana Leave a comment

Santa Ana Mayoral candidate Alfredo Amezcua finally has put up some “Issues” on his campaign website. 

I spoke to Amezcua recently and asked why he had not done more to explain his positions.  He said he was afraid that incumbent Mayor Miguel Pulido would “steal his ideas.”  It is hard to believe that a politician with as much experience as Pulido would resort to such a thing – particularly since Amezcua’s ideas don’t amount to much. 

Here then are Amezcua’s ideas:

Rebuild!…our city’s image by making our streets safe for every resident, in every neighborhood, repairing our streets and broken infrastructure and celebrating the diversity of our community.

Renew!… our public schools by creating and maintaining an ongoing dialogue between parents, students, teachers, the school board and City Hall.

Revive!…our city’s economy by supporting those businesses which we already have, bringing in new businesses that will benefit our whole city and by making Santa Ana an affordable and friendly place for all businesses, both current and new. Continue reading→

Santa Ana Planning Commission to consider changes to the OBP developer agreement tonight

Posted on by Posted in Business, Development, Redevelopment, Santa Ana 3 Comments

The Santa Ana Planning Commission will be considering as proposal by developer Mike Harrah, who owns Caribou Industries, to amend his development agreement with the City of Santa Ana. 

Here is the amendment language:

AMENDMENT TO DEVELOPMENT AGREEMENT NO. 2004-01 (Vince Fregoso)

Filed by One Broadway Plaza LLC, to modify certain provisions of the development agreement to delete the 50 percent pre-leasing requirement; to allow the applicant to request assistance from the Redevelopment Agency; adjust the timing of the funding for the neighborhood traffic studies; allow additional time to refill any excavated area; and to delete the minimum of 51 percent ownership interest provision for the One Broadway Plaza (OBP) office tower at 1109 North Broadway.

Considering how the economy has changed since Harrah first proposed this development, the amendments appear to be worthy of consideration.  That said, some of my associates are opposed to the use of Redevelopment funds for the One Broadway Plaza.  That is understandable.  Continue reading→

Santa Ana City Council responds to criticism of Transit Zone project

Posted on by Posted in Business, Civic Affairs, Development, Real Estate, Redevelopment, Santa Ana, Transportation Leave a comment

Santa Ana Gateway the focus of revitalization efforts

June 8, 2010

Santa Ana City Council has given the green light to a sweeping development plan that will enhance the gateway to the city and help revitalize a key downtown corridor that runs from the 5 Freeway to the Civic Center.

By a 4-0 vote, the council approved zoning changes that pave the way for new homes, stores and restaurants between the city’s train station and its downtown Civic Center. The first phase calls for development of Redevelopment Agency-owned vacant land near the Santa Ana Regional Transportation Center.

“By approving the Station District project and Transit Zoning Code, we are embracing our role as the only true urban center in Orange County and casting a vision for what the future of Santa Ana will look like,” said Councilman David Benavides. “Over the next two decades this project will serve as a model of urban revitalization and smart planning.”

Related California/Griffin Realty Corporation will oversee the project known as the Station District, a 94-acre area anchored by the Santa Ana Regional Transportation Center and numerous parcels the city acquired over the past 10 years along the Santa Ana Boulevard corridor. The corridor is a key link between the I-5 freeway and Downtown and will also serve as a major transportation link for the planned Go Local street car system.

The City Council agreed on Monday to sell its parcels to Related California. In exchange, the developer will build 112 apartments priced for low- and very-low-income people, as well as 32 homes for sale. Six of the homes will also be affordable. City officials also agreed to fund numerous programs to assist area residents including the commitment to pursue the development of a 1.5 acre park and community center. Councilwoman Michele Martinez remarked, “Today I have an opportunity to make a difference. We’re paving the path for the future of Santa Ana.”

“Many times lower income individuals in our community feel that they are not being represented,” said Santa Ana Councilman Councilmember Sal Tinajero. “Last night’s vote showed that for the first time in a long time the most vulnerable in our community will have a dignified standard of living that offers hope to their health and the educational well being of their children.”

The Station District developers said they could break ground on the first apartments as early as March.

“We are very pleased that there was strong and unanimous support for this project from the city council,” said Bill Witte, president of Related Companies of California, partner with Griffin Realty, the master developer. “This is a unique opportunity to create high quality housing for a mix of incomes, provide much needed recreation and open space and begin to knit together the Lacey neighborhood with downtown and the depot area.”

The zoning changes encourage mixed use development that would create an urban neighborhood of shops, restaurants and apartments where people walk to where they have to go or take the proposed streetcar.

“This is one of the most significant decisions the Council has made in decades. This project will be the catalyst for many other projects in the same area. It will definitely improve the neighborhood and city as a whole,” said Councilman Carlos Bustamante. “I am very proud to be serving on this Council at this time when these tough decisions have to be made and this is why we ran for office.”