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Minutes - San Leandro City Council Meeting - February 20, 1996 Page - 10 - SASAN LEANORO REDEVEIOPMENTSAGENGYXMEETIN GREBhtin tl j C. Resolution No. 96 -5, Redevelopment Agency Resolution Approving Owner Participation Agreement, Regulatory Agreement, Promissory Note, and Deed of Trust for Fred Lewis of Western American Development, Inc., Owner of 11 Dutton Avenue for Housing Rehabilitation (approves funds for rehabilitation of five residential units in exchange for long -term affordability covenant). Introduced by Agency Member Polvorosa, who moved its adoption, seconded by Agency Member Perry, with Agency Member Loeffler absent (1), and carried by a majority vote (6). 5. JOINT CITY COUNCIL /SAN LEANDRO REDEVELOPMENT AGENCY PUBLIC HEARING A. Matter of Second Amendment to Alameda County - City of San Leandro Redevelopment Plan to Provide for Power of Eminent Domain for Limited Properties in Four Development Nodes in the City of San Leandro Portion of the Project Area. Continued from the December 4, 1995, City Council Meeting. This being the time and place for the Public Hearing on the above matter, June Catalano, Development Services Director, provided an overview of the process to date. She said the proposal has been reduced to 14 properties owned by 9 property owners. She said San Leandro has approached eminent domain very cautiously; and it is seldom used, even in areas where it is available, such as Plazas 1 and 2. She said having it can turn an area around. She noted the availability of eminent domain lured Costco to stay and move to a new site because the City had the ability to assemble property in a timely fashion. All claims in the Costco example were settled through the property owners, without going to court or using eminent domain. She said eminent domain provides advantages for property owners. The price paid is at least fair market value, and there are capital gains savings. She said staff focused on three areas which are in serious need of revitalization. The private sector, acting alone, cannot rectify problems in the areas. The Islander Motel and the Maskell property can create problems for other properties along East 14th Street. Eminent domain in the Peralta Area will enhance the entire area. If there is no action, conditions in the three areas will continue to deteriorate and costs will escalate. Debbie Potter, Redevelopment Administrator, described the contacts made with property owners by staff since the last public hearing, as directed by Council. She said staff provided information on eminent domain and responded to questions. She said the matter before the Council is eminent domain, not property acquisition. Property acquisition is a totally separate matter, and there are no plans to acquire specific parcels at this time. She said staff reviewed 45 properties originally proposed and limited recommendations to those