Santa Ana's top news & views blog

Santa Ana's top news & views blog

Tag Archives: Redevelopment

Santa Ana apartment complex could be converted into a 60 unit drug rehab center

Posted on by Posted in Crime, Drugs, Phil Bacerra, Planning, Redevelopment, Santa Ana 4 Comments

There is an effort underway by Rock Solid Recovery to convert the Mauna Loa Garden Apartments in Santa Ana to a 60 unit residential development to a behavioral health facility – essentially a drug rehab center, at 1311 Washington Place, in Santa Ana, just south of the Target store located at N. Grand Ave. and 17th. St.

This proposed drug rehab center will be located a half mile south of Sierra Intermediate School and the adjacent Northeast Santa Ana Little League.

This seems like a bad idea. For one thing the proposed location in our city is ringed by crime. But to see how bad an idea this is check out these Yelp excerpts regarding Rock Solid Recovery, which currently offers rehab facilities in Costa Mesa: Continue reading→

Mayor Pulido is trying to bring back redevelopment

Posted on by Posted in Miguel Pulido, Santa Ana 5 Comments

Miguel Pulido at city council

Santa Ana Mayor Miguel Pulido is heading up an effort to resurrect California’s controversial redevelopment agencies, working with the public relations firm Forde & Mollrich to solicit donations from cities to fund a ballot initiative that would reverse one of Gov. Jerry Brown’s signature policy achievements, according to the Voice of OC.

City contributions would go to a nonprofit setup to draft the Jobs & Economic Development Initiative – termed JEDI – for the November 2014 ballot, which would allow cities to once again capture tax increment revenue, the central component to what was formerly called redevelopment. Continue reading→

Council leaning towards returning $54 million to the State of California

Posted on by Posted in california, Civic Affairs, Redevelopment, Santa Ana 4 Comments

Santa Ana City Council

It looks like our Santa Ana City Council is beginning to wave the white flag as the State of California continues to demand the return of millions of dollars of redevelopment funds.   

“Santa Ana City Council members Tuesday night in a closed-door meeting decided to freeze payments to affordable housing developers depending on funds central to a $54-million standoff between city officials and the state Department of Finance. The move reverses a defiant stance council members took last December to continue paying the developers, despite the threatened use of “clawback” measures allowed under the redevelopment dissolution bills that empower Sacramento to withhold sales and property tax revenue. Such a punitive move could cripple the city’s already fragile financial position,” according to the Voice of OC. Continue reading→

We need to contact Gov. Brown and ask him to stop his attack on Santa Ana

Posted on by Posted in Affordable Housing, california, Civic Affairs, Democratic Party, Governor Jerry Brown, Politics, Redevelopment, Santa Ana, Taxes 8 Comments

Jerry Brown at the OC Labor Day event in Santa Ana

Santa Ana is a city dominated by Democrats.  Our city Council is entirely comprised of Democrats.  Our State Assemblyman, our State Senator and our U.S. Representative are all Democrats.  Yet the Democrats in Sacramento, led by Governor Jerry Brown, are trying to force the City of Santa Ana to fork over millions of dollars in redevelopment dollars that are already committed to affordable housing projects for the needy.

Mayor Miguel Pulido and our City Council say they are going to lobby Brown and his peers but they alone cannot stop this from happening.  Only we can save our city!

Click here to email Gov. Brown.  Here is the message I sent him (under the category of Taxes as his administration is threatening to withhold property tax money from our city): Continue reading→

City Council to hold a special meeting about State’s demand for $56 million

Posted on by Posted in california, Civic Affairs, David Benavides, Democratic Party, Entertainment, Governor Jerry Brown, Politics, Santa Ana, Tom Daly 12 Comments
Benavides has no clue

Does Benavides have a clue how to fix this mess?

The Santa Ana City Council is holding a Special Meeting on Friday, December 21, from 11 am – 2 pm, to consider how they are going to respond to the demand by Governor Jerry Brown’s administration that the city pay back $56 million dollars of what used to be redevelopment funds pegged to affordable housing.

The meeting will be held at the City Council Chambers, located at 22 Civic Center Plaza, in Downtown Santa Ana.

Click here to read the meeting agenda. Continue reading→

Sacramento Democrats are demanding $56 million from the City of Santa Ana

Posted on by Posted in Affordable Housing, california, David Benavides, Democratic Party, Lou Correa, Redevelopment, Santa Ana, Tom Daly 4 Comments

Santa Ana City Council

“Santa Ana city officials are scrambling to address a $56 million demand by the state due by Friday,” according to the union-funded Voice of OC.  The State of California is run completely by Democrats now, from the State Legislature majority to all of the State’s elected leaders, including Governor Jerry Brown.  And now they are trying to bankrupt our city!

“The money is to come from what’s called low-and-moderate income housing funds. Redevelopment agencies were required to set aside 20 percent of their property tax increment revenue – the funds that cities had diverted from going to other local governments in redevelopment zones – for affordable housing programs,” according to the Voice of OC. Continue reading→

The Usual Suspects return, to try to stop the Chivas from coming to Santa Ana

Posted on by Posted in Civic Affairs, Development, Latinos, Miguel Pulido, Neighborhood Associations, Politics, Redevelopment, Santa Ana, SAUSD, Sports 14 Comments

Pictured above: Debbie McEwen, a member of the Usual Suspects’ coalition against the Chivas Soccer team

They’re back…the folks I used to refer to as the “Usual Suspects” have come together again. This time they are ticked off about Santa Ana Mayor Miguel Pulido’s ongoing attempts to bring the Chivas soccer team to Santa Ana.
Here is what the Voice of OC has reported about the resurgence of the “Usual Suspects:”

With rumors swirling about a potential pro soccer expansion into Santa Ana, some 50 residents gathered Wednesday night to complain about potential traffic, noise and other problems that soccer games could create.

Residents opposed to the move appear to be circulating a protest petition. They are particularly incensed over rumors that Mayor Miguel Pulido is holding private meetings aimed at bringing the team to the city while avoiding any input from residents.

Tom Lutz, a former council member, hosted the residents at his home. He said he found out about the negotiations and possible move only because of old contacts he has at City Hall.

Lutz said he understands that if the soccer team comes to the city, its first home would be Santa Ana Stadium. If true, that would displace football teams of local high schools like Mater Dei and Century, according to Lutz. The move also would mean Santa Ana College’s football team could lose access to the stadium, he said.

At the end of the meeting, residents formed a committee to prevent the team from coming to the city. The committee includes Rush, Lutz, Don Cribb, Alfredo Amezcua, Thomas Gordon, Dave Brandt, and Debbie McEwen.

Note that failed Santa Ana Mayoral candidate Alfredo Amezcua is now a full-fledged member of the Usual Suspects. Latino voters will remember this when Amezcua comes begging for votes the next time he runs for Mayor.

I am not buying the silly argument about the school sports programs getting kicked out of Eddie West Stadium. Note that none of the new Usual Suspects are on the SAUSD School board – and not one of them has any children enrolled in our SAUSD schools. In fact most of them aren’t even married, or are too old to have kids.

What these NIMBYs don’t realize is the tremendous economic impact that the Chivas will have on our city. Nor do they care that the majority of our residents will be thrilled to welcome the Chivas to town.

I also don’t buy the open space argument. The Willowick golf course is not of any use to the thousands of residents in Santa Ana who don’t play golf, or cannot afford to do so. But the proposed Chivas complex will include new soccer fields that will be a huge boon to the young people of our city.

If the Usual Suspects want more open space they should join the dying lawn bowling league at Santiago Park, or go jog in our cemeteries.

O.C. business, labor and political leaders oppose Brown’s attack on redevelopment

Posted on by Posted in Anaheim, Business, california, Entertainment, irvine, Jobs, Labor, Orange County, Politics, Redevelopment, Santa Ana 3 Comments

For Immediate Release: January 28, 2011

Contacts: Jill Cagle, BIAOC, (949) 553-9500; Tony Cardenas, League of California Cities, (714) 425-5558

***MEDIA ADVISORY***

Orange County Leaders in Local Government, Business, Affordable Housing and Labor Announce Opposition to Administration’s Proposal to Eliminate Redevelopment

Group warns proposal will kill hundreds of thousands of local jobs, harm local economies and hinder the national housing recovery while doing nothing to solve the State budget deficit

When/Where:

Tuesday, February 1, 2011 at 11:00 a.m.
Colony Park: 710 Melrose Street Anaheim, CA 92805

What: Anaheim Council Member Kris Murray, and Irvine Council Members Larry Agran and Jeffrey Lalloway join local business, affordable housing and labor leaders on February 1, at Anaheim’s Colony Park, an affordable housing project currently under construction, to declare their opposition to the Administration’s proposal to eliminate redevelopment agencies in California.

This proposal represents more of the same misguided and illegal State budget raids of local government funds that voters have repeatedly voted against. This is a short-term fix that will permanently destroy hundreds of thousands of jobs and billions in local economic activity, including over 75,000 jobs in Anaheim alone. While local officials realize Governor Brown is facing tough choices, gutting tools to create local jobs and economic opportunity is a non-starter and will be vehemently opposed.

Who:

  • Anaheim Council Member Kris Murray
  • Irvine Council Member Larry Agran and Council Member Jeffrey Lalloway
  • Building Industry Association of Orange County John O’Brien, Vice President, Brookfield Homes
  • Habitat for Humanity of Orange County Sharon Ellis, Chief Executive Officer
  • Orange County Business Council
  • Trade Union Representatives/Labor
  • Local Homeowner Testimony

Visuals: The backdrop for the press conference is Anaheim’s Colony Park, and will include workers building an ongoing project that would get shut down if redevelopment agencies are abolished. Colony Park, an affordable housing project, sits on the site of a formerly contaminated area that was cleaned up and revitalized through Anaheim’s Redevelopment Agency.

About Redevelopment:

  • Redevelopment activities support an average of 304,000 full- and part-time private sector jobs in a typical year, including 170,600 construction jobs;
  • Redevelopment contributes over $40 billion annually to California’s economy in the generation of goods and services;
  • Redevelopment construction activities generate $2 billion in state and local taxes in a typical year; and
  • Governor Brown’s elimination of redevelopment agencies would only provide a one-time cash infusion of $1.7 billion, and $0 in future years; and
  • Success stories of redevelopment are all over Orange County; please refer to the press packet for a list of ongoing projects that would be jeopardized if redevelopment agencies are abolished.

Tony Cardenas
Public Affairs Regional Manager
Orange County Division
League of California Cities
(714) 425-5558
Tcardenas@cacities.org

Cindy Nelson, head of Santa Ana’s Development Services, opts to retire

Posted on by Posted in Civic Affairs, Redevelopment, Santa Ana 10 Comments

I ran into a senior employee of the City of Santa Ana today, who told me that Cindy Nelson, the head of the City’s Community Development Agency, whose title is “Deputy City Manager for Development Services,” decided to retire on Friday of this week – and that this is public information.  Apparently her letter of resignation was received at City Hall and she is no longer an employee of the City.

Nelson made headlines recently when she refused to answer questions about the now-defunct trial valet parking program in Downtown Santa Ana.  She also has been clashing with the Santa Ana City Council over allegations that vast amounts of public money have been spent by her department, without Council oversight.   I just wrote about that yesterday.  You can read my post by clicking here.

I don’t know if her sudden retirement is due to her dispute with the City Council.  I have not verified this with any of the Council Members.

I suspected something like this was brewing but was still surprised by the suddenness of her retirement.

This comes at an awkward time as new California Governor Jerry Brown is making noise about getting rid of the many city redevelopment agencies in California, by taking their money, ostensibly to fill the State’s empty coffers.

I worked with Nelson many years ago when I was the head of Santa Ana Neighborhood Housing Services’s Board.  That organization is now known as the Orange County NHS.  She left the City of Santa Ana briefly a few years ago to work on the Nexus Towers project, then returned to the City when that project switched to rental units.

Nelson is a board member of the California Redevelopment Association.  Here is her bio as it appears on their website:

Cindy Nelson brings more than 30 years of community development-related public service to the Board. This will also be Cindy’s second time serving on the CRA Board.

She currently oversees Santa Ana ’s redevelopment and economic development programs as well as its community development and American Recovery and Reinvestment Act programs. She also manages the City’s Emergency Services Grant, federal job training, and business retention and attraction programs, and one of three WORK (Work, Opportunity, Resources, and Knowledge) Centers in the county of Orange . Cindy has more than 22 years of experience with the City of Santa Ana in two different stints. Prior to Santa Ana , she spent four years at the City of Long Beach as its Downtown Manager.

In Santa Ana , she has been instrumental in the expansion of the Bowers Museum as a world-class art institute; managed the development of Westfield MainPlace Mall; negotiated and developed the Santa Ana Auto Mall; initiated various commercial and residential loan programs; and gained approval for one of the first State Enterprise Zones and Federal Empowerment Zones.

Cindy’s first tour on the CRA Board was from 1991 to 2000, and she served as President from July 1993 to June 1994. She was also President for CALED during that same time period.

Governor-Elect Jerry Brown is targeting Santa Ana’s Enterprise Zone tax breaks

Posted on by Posted in Business, california, Governor Jerry Brown, Jobs, Labor, Miguel Pulido, Santa Ana, Taxes 4 Comments

California Governor-elect Jerry Brown is laying the groundwork for a budget plan that would couple deep cuts to state services, including university systems and welfare programs, with a request that voters extend temporary tax hikes on vehicles, income and sales that are set to expire next year, according to the Sacramento Bee.

Among the breaks are multibillion-dollar incentives for redevelopment projects and hundreds of millions of dollars of “enterprise zone” credits meant to encourage investment in blighted neighborhoods, according to the L.A. Times.

According to the City of Santa Ana’s website, a qualified business may reduce its state income tax by $37,440 per qualified employee, over a 5-year period. The credits may be carried over until they are exhausted.

The Santa Ana website also explains that California income or franchise tax may be reduced by the amount of sales or use tax paid on certain machinery, machinery parts, and equipment purchased for exclusive use in an Enterprise Zone.

Brown appears to be targeting those tax credits, as the State of California faces a $28 billion budget shortfall – equivalent to nearly a third of the general fund.  Brown is also targeting redevelopment funds.  That too could have a considerable impact on the City of Santa Ana.

According to Good Jobs First, a think tank, the State of California spent $333 million on Enterprise Zone tax credits in 2005.  Good Jobs First also raised the issue of transparency.  California was rated a D-, as hardly anyone can tell if the Enterprise money has actually created jobs or been effective at all.

Santa Ana Mayor Miguel Pulido is close to Brown, who visited his home several times during this year’s hard-fought campaign against Republican Meg Whitman.  Perhaps that will help, but Brown is desperate for money to replenish the State’s coffers.  I don’t think he will leave any stone unturned.

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.

Construction begins on new Courtyard Marriot Hotel in Santa Ana

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

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.

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

Public hearing about One Broadway Plaza this Monday at Santa Ana Council meeting

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

The Santa Ana City Council will be conducting a Public Hearing on Monday, at the end of their Council meeting, regarding the proposed amendments to the developer agreement with Mike Harrah, regarding his One Broadway Plaza project.

Click here to read the Public Hearing Agenda.  Click here to see the entire City Council agenda for Monday’s meeting.

The Planning Commission approved the proposed amendments at their meeting on June 14, by a 3-2 vote.  Acosta and Yrarrazaval opposed.  Alderete and Betancourt abstained.

The amendments include:

  • Deleting the 50% pre-leasing requirement.
  • Allow Harrah to apply for Redevelopment Funding.
  • Adust the timing of the funding for neighborhood traffic studies.
  • Allow additional time to refill any excavated area.
  • Delete the minimum 51% ownership interest provision.

I am not sure about the redevelopment part of this, but the rest of it isn’t unreasonable.  I would however like to see our City Council press for more changes to the Developer Agreement, as follows:

  • Let’s allow Harrah to build condos as well as offices in his tower.  Wouldn’t that be neat for executives to finish work and then take the elevator to their condo?
  • Why not build an observatory on the roof?  Maybe we can get UCI or CSUF to help fund it and manage it.  What a boon it would be to our scientific community!  And what fun for the rest of us.
  • How about building a public park atop the building?  What a view!
  • Can we renegotiate the size of this building?  Perhaps 60 floors instead of 88?

This project will bring jobs and economic growth to our city.  I don’t mind Harrah bringing in partners and I would love to see him build a mixed-use project instead of offices only.  I don’t think he should go down the redevelopment road – but if he wants that money then how about some affordable living units in the tower too?

City staffers are recommending that the City Council approve the amendments.  Their report notes that the project qualifies for LEEDS silver status, which means it will be built to save energy.  The report also states that of the 13 large projects that have been submitted to the City for approval in the past five years, only two have been built – CityPlace and the Skyline Towers.

The City Council meeting will start after a closed session meeting at 5 pm, at Council Chambers, located at 22 Civic Center Plaza.

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→