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HomeMy WebLinkAboutMin 08-23-00MINUTES OF THE UKIAH CITY COUNCIL Adjourned Regular Meeting Wednesday, August 23, 2000 The Ukiah City Council met at a Adjourned Regular Meeting on August 23, 2000, the notice for which had been legally noticed and posted, at 5:00 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers were present: Smith, Libby, Ashiku, and Mayor Mastin. Councilmembers absent: Baldwin. Staff present: Assistant City Manager Fierro, City Manager Horsley, and City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE Councilmember Libby led the Pledge of Allegiance. URGENCY ITEM: Mayor Mastin announced that there is a need to take immediate action and that the need to take action came to the attention of the City subsequent to the agenda being posted. This Urgency Item will be heard prior to the Public Hearing and concerns a Proclamation designating August 26, 2000 as Women's Equality Day. Consensus of Council was to include the Proclamation on the Agenda. PROCLAMATION: Women's Equality Day -Au.qust 26, 2000 Mayor Mastin read the Proclamation designating August 26, 2000 as Women's Equality Day to commemorate the great victory of wisdom over ignorance embodied by the 19th Amendment to the Constitution and called upon the people of Ukiah to observe this day with appropriate programs and activities. Vera, representing the Ukiah branch of the American Association of University Women, accepted the Proclamation and noted that women should be recognized for their continuing contributions relative to maintaining cultural traditions, law-making assistance, preservation of home and family values, work environment accomplishments, and many other contributions applicable to life. She thanked the City for recognizing and supporting this valuable movement in our culture. 3. RIGHT TO APPEAL DECISION Mayor Mastin read the appeal process. 4. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Judy Pruden, 304 South Hortense, Ukiah, referenced the Ordinance amendment for the Airport Industrial Park Planned Development, and clarified for the record that it would not be appropriate protocol for the Planning Commission to have specifically identified a more suitable site for the Hampton Inn Hotel. However, it is appropriate for the Planning Commission to discuss location generalities. There seemed to have been a misunderstanding of the Planning Commission's responsibilities regarding site project reviews. PUBLIC HEARING Adoption of Resolution Approvin.q an Application for Fundinq and the Execution of a Grant A.qreement and Any Amendment Thereto From the Plannin.qlTechnical Assistance Allocation of the State Community Development Block Grant (CDBG) Program, For a Study Concerninq the Renovation of the Historic Palace Hotel August 23, 2000 Page 1 of 5 City Manager Horsley advised the Palace Hotel (Hotel) is a privately owned building, which has undergone many changes in ownership. The City has been in contact with a partial owner who is interested in the aforementioned grant and participating in providing matching funds. Last year the City began actively pursuing grant funding wherein several grants have been awarded. The Hotel has been identified as an important priority under the economic development program and also for possible housing and job opportunities. Assistant City Manager Fierro reported the grant under the State of California Department of Housing and Community Development allows the City to apply for economic development funding in the sum of $35,000. This grant requires the City to pay 25 percent of the grant fee and/or approximately $8,700. As part of the grant process, one of the Hotel owners has agreed to pay 50 percent of the grant fee, in the sum of $4,300. The study analysis would include economic impacts of the site restoration, architectural feasibility for a mixed-use formula involving housing and retail, the establishment of a senior Iow-income need formula to conform with the Community Development Block Grant (CDBG) requirements, and financial cost development for a comprehensive site study. A grant proposal has been formulated, as a particular goal for City redevelopment, which would allow the City some leverage in determining the most appropriate use for this site. David Dickey, 850 Walnut Avenue, Ukiah, was not supportive of utilizing grant funds to renovate the Hotel to accommodate potential other uses. He reviewed the renovation documents perceives the Hotel as structurally unsound. He noted any improvements and/or compliance with Code standards would be costly. He expressed concern regarding an underground fuel oil tank located on the premises, which was utilized for Hotel heating purposes, and inquired whether grant funding would cover the cost of removal and for subsequent Environmental Impact Report studies associated with this issue. Mayor Mastin stated the alleged underground tank has not been located. Dennis Denny, 1061 Deerwood Drive, Ukiah, commended the City for being responsive with his bicycle business, which is located next to the Palace Hotel. He noted it is imperative for the City Council to consider cost factors regarding possible contamination impacts that may be associated with an underground fuel tank. Additionally, the grant fund application should reflect any and all costs to be potentially incurred with a renovation as well as other problems connected to this project. He reiterated the building owners should be required to financially contribute a justifiable amount in addition to the $4,300 proposed, since they would directly benefit from the revitalization. Carol Schallert, owner of the North State Cafe, Ukiah, was not supportive of the City contributing $35,000 for an extensive analysis relative to the Palace Hotel. Should the Hotel be used for re-use purposes such as retail and/or restaurant uses, it may create competition for her business, while her business success has been solely consummated without assistance from grant or redevelopment funding. She noted the owners would benefit financially without ever having to make an investment to the community. Ann Lloyd, 208 West Henry, Ukiah, favored the Palace Hotel renovation because it a significant historical building which has been in existence for over a hundred years. Since previous studies have determined the building to be reasonably sound, it is the community's responsibility to examine grant funding possibilities and any applicable uses. August 23, 2000 Page 2 of 5 Paul Andersen, 309 Jones Street, Ukiah, explained that the Palace Hotel is a part of the community's history wherein the community has mixed thoughts regarding its future in conjunction with its present structural condition. The grant funding proposal allows the City the opportunity to determine whether the Hotel has future potential for re-use to include housing options. He noted the City possesses a shortage of affordable housing and stated housing in the downtown would promote that area economically. The CDBG grant would determine the future viability for this building and the community should support this opportunity and/or process. Aileen Brown, 617 Grove Avenue, Ukiah, inquired whether the objective is to determine whether the Palace Hotel should be saved at all costs? She noted the "free market" should have determined whether it is economically feasible for the Hotel to remain. Mayor Mastin replied the objective is to secure grant funding for a study to formulate reasonable options for the building's future endeavor, if any. City Manager Horsley stated the City has taken an interest in various renovation proposals. She noted senior housing may be an appropriate use for this hotel and, therefore, it is important for the City to encourage and/or motivate developers/owners/buyers into evaluating options available for this structure. She stated it is imperative the owners, or future owners, participate in the Hotel's renovation before it is no longer an option. It was noted the ideal formula relevant to CDBG funding is to assist Iow and moderate-income persons, which could incorporate a mixed-use of retail, restaurant, services, offices, and/or housing. The grant consultant would assist the City in establishing the necessary components for the "best" mixed-use. The application must generate objectives and/or identify specific factors pertaining to Iow and moderate-income persons. The grant application's objective would be to identify the appropriate measures that pertain to the housing element potential. It was further noted renovation of the Hotel would assist in aesthetically beautifying the downtown area. Judy Pruden, Ukiah, stated she is supportive of the CDBG application because there is a Iow and affordable housing shortage in this community. Should the City be unable maintain the certified housing element as required by the State Housing and Community Development, the City would be ineligible for CDBG funding. She briefly addressed the fuel tank contamination issue and stated there is no evidence referencing any on or off-site soil or water contamination. Councilmember Ashiku inquired regarding the demolition process for historical buildings and whether feasibility for alternative uses would be addressed as part of the grant funding process. Ms. Pruden replied such aforementioned buildings are subject to the California Environmental Quality Act (CEQA) review. She stated CEQA would also determine whether alternative uses for the Hotel would be feasible. Tim Day, Ukiah, reiterated the study determination conducive for the Hotel by today's standards should also be applicable in the future. Eric Larson, 123 Clara Avenue, Ukiah, stated the City should better assess properties and/or structures that are in a state of deterioration for future housing adaptability. Mr. Dickey drew attention to his earlier concern relative to the fuel tank issue and clarified that the purpose of his concern was whether this issue would be appropriately addressed. August 23, 2000 Page 3 of 5 Assistant City Manager Fierro stated all technical elements associated with the Palace Hotel to include structural deficiencies would be carefully identified and reviewed. Public Hearing Closed: 5:59 p.m. Councilmember Libby stated according to her interpretation of the Palace Hotel's structural analysis report, the Hotel does incorporate serious problems with regard to certain deficiencies where further analysis is required. She questioned whether the Hotel is structurally sound. She stated it appears the Palace Hotel owners' objective is to secure public money. She further stated public tax money should not be utilized to assist a privately owned structure especially when the owners have made no attempt to make improvements nor demonstrated any interest in the building. Councilmember Ashiku reiterated the structural analysis indicated the Hotel to be reasonably sound although other in depth structural factors remain to be determined, which precludes the City from proceeding with building abatement or the renovation process. Assistant City Manager Fierro anticipated the CEQA and the Environmental Impact Report (EIR) would reflect high cost figures in the $200,000 range. It was noted should the City decide that the Palace Hotel abatement and/or demolition are necessary, CEQA and an EIR would have the final word in this regard. City Manager Horsley addressed building alternatives and advised the City would be unable to proceed with an abatement process unless it can be determined that a health and safety and/or structural problem exists. The building condemnation process is lengthy and complex. She noted the City Council has previously discussed the level of structural analysis wherein the Council was willing to appropriate a certain amount of funds in order to determine building soundness without appropriating additional money for a comprehensive structural analysis which should be performed by the owner. Councilmember Smith stated the architect and engineer would produce an analysis of the primary structure relative to Building Code compliance and access all deficiencies as well as propose a preliminary cost estimate. He supports historical building restoration concepts and noted the proposed grant funding application could be viewed as a step toward assisting the owners in formulating a decision regarding the building's future. He supports the grant funding application. Mayor Mastin expressed his disappointment in the current owners' lack of interest in the building wherein potential grant funding would initiate the building's future determination process. He supports the grant fund application and indicated it is money well spent. M/S Ashiku/Smith approving an application for funding and the execution of a Grant Agreement and any amendments thereto from the Planning/Technical Assistance Allocation of the State Community Development Block Grant (CDBG) Program, and carried by the following roll call vote: AYES: Councilmembers Smith, Baldwin, Ashiku, and Mayor Mastin. NOES: Councilmember Libby. ABSENT: None. ABSTAIN: None. August 23, 2000 Page 4 of 5 Assistant City Manager Fierro stated the grant funding Resolution should be completed by August 24, 2000, whereupon the state would require an allowance of approximately 150 days until a decision regarding the application is rendered. Once a decision has been rendered, staff would inform City Council of the grant application status. City Manage Horsley presented an update on the City's Web Page. 6. ADJOURNMENT M/S Ashiku/Smith to adjourn the meeting, carried by consensus of Council, at 6:18 p.m. Marie Ulvila, City Clerk August 23, 2000 Page 5 of 5