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<br />Mr. Villelli advised the Cooley Ranch property was purchased in September and since that time
<br />a master plan has been established to get the project underway.
<br />Mr. Villelli stated that several problems have arisen since the conception of the project,
<br />such as a drop in the economy and decrease in construction, however, they are "raring to go"
<br />on the proposal and plans are progressing.
<br />Mr. Villelli said they plan to construct two buildings immediately, an office building con-
<br />taining 35,000 square feet to be located at the southeast corner of Mt. Vernon Avenue and the
<br />Reche Canyon Flood Control Channel, and an industrial building containing 200,000 square feet
<br />to be located on the northwest corner in the same area.
<br />Mr. Villelli continued that as soon as these two buildings are underway and nearing completion,
<br />they will be constructing a 250 unit apartment house, hopefully by spring. The apartment
<br />building will be located immediately west of the office building.
<br />Mr. Villelli said they are very interested in starting construction as soon as possible, par-
<br />ticularly due to the recent laws passed by the Environmental Protection Agency, which will
<br />become effective on January 1, 1975. Mr. Villelli advised that several attorneys have re-
<br />viewed this situation, and they are of the opinion that if the buildings have been started
<br />and well underway by then, the project will keep on moving in spite of the new law.
<br />Mr. Villelli continued that they are putting a great deal of money into the public improvements
<br />on this property, consisting of 436 acres, which will include the widening of Mt. Vernon Avenue,
<br />the complete installation of Cooley Lane, and Washington Boulevard.
<br />Mr. Villelli said the only way they feel they can make their rents competitive and build
<br />these things is to get some assistance from the City in putting in these public improvements,
<br />both in the form of backing them on an assessment district and possibly coming up with some
<br />of the funds it will take to put in these improvements.
<br />Mr. Villelli advised another problem that has come up concerns the Riverside Highland Water
<br />Company and certain easements they have on the ranch property.
<br />Mr. Villelli said they have eliminated every inactive easement on the property, with the excep-
<br />tion of the easement of the Riverside Highland Water Company which consists of approximately
<br />200 acres of the ranch. Mr. Villelli stated they are attempting to resolve this problem with
<br />the water company but so far have not reached an agreement.
<br />Mr. Villelli reported they do not feel it is unreasonable to have the ranch fully developed
<br />within the next ten years.
<br />Mr. Villelli then showed the Council members a drawing of the first building to be constructed,
<br />an office building, which will be started sometime in December of this year.
<br />Mr. Michael F. Whipple, of Stone & Youngberg, Municipal Financing Consultants, Inc., Los Angeles,
<br />stated before he gets into his presentation regarding special assessment financing, he would
<br />like to have the engineer of the project make his report.
<br />Mr. Pete Van Riper, Civil Engineer with Wilsey and Ham, Consulting Engineers, South Pasadena,
<br />referred to the approved master plan for the property and a land use map for the development
<br />of the Cooley Ranch.
<br />Mr. Van Riper discussed the terrain of the Cooley Ranch and explained the close work they are
<br />doing with the Flood Control District and the Corps of Engineers with regard to the flood
<br />plain flows into the Santa Ana River and Reche Canyon Channel to develop water surface ele-
<br />vations and complete grading studies of that portion of the ranch.
<br />Mr. Van Riper stated that in addition to their studies for water supply and service, is the
<br />sanitary sewer service which will take care of the entire property.
<br />Mr. Van Riper said they are now in the process of completing the final parcel maps for sub-
<br />mittal to the City for approval.
<br />Mr. Michael Whipple said he would like to discuss special assessment financing as a method
<br />or vehicle for financing the public improvements for the Cooley Ranch Development.
<br />Mr. Whipple continued that the plan, as proposed at the present time, is for Mr. Villelli
<br />and his associates to finance the improvements, as outlined by him, and construct the public
<br />improvements, which can be accomplished through special assessment financing.
<br />Mr. Whipple recalled the formation of the Cooley Ranch Sewer Assessment District, which was
<br />financed through the Improvement Bond Act of 1915. Mr. Whipple advised this type of bond,
<br />in regard to special assessment bonds, provides the only type of financing that will permit
<br />the property owner to take advantage of tax exempt financing - that is, financing in which
<br />the interest that is paid is exempt from Federal and State Income Tax.
<br />Mr. Whipple said there is a second advantage to this type of financing in that in issuing
<br />the bonds, the City acts as a co-signer and agrees to pay in the event the property owner
<br />does not pay the taxes in a timely manner. The City then has, in this event, a security
<br />advantage in that they have the right of foreclosure, which would mean a lien against the
<br />property, and in the event of a default, the City can foreclose, take title to the property,
<br />sell the property, and as long as the property has greater value then the amount of the
<br />interest and principle, the City has a secure investment.
<br />Mr. Whipple said that basically, all they are asking for this evening is that the City Council
<br />agree or concur in the concept that has been presented, no action is required or requested at
<br />this time.
<br />AUG 1 � 1974
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