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Minutes - San Leandro City Council Meeting - February 20, 1996 Page - 15 - SAN = 4EANDRO REOEVEL:OPMENTAGENCI(:ME TING i n di The City Attorney explained that the Redevelopment Agency has power to build improvements and pay for them. The City has power to acquire streets for public purposes but doesn't have the money to make improvements. A special assessment district could be formed to include all property owners, but values in the area have not increased enough to offset the high costs of improvements, and assessments would be substantially greater than the properties could support. Vice Mayor Kerr said people are scared of the threat of eminent domain, and it is an unnecessary scare tactic. He said people are indicating a willingness for a cooperative effort toward cleaning up the area. The City could work with them to provide a bridge, build infrastructure, and improve values. The Islander problems are not structural, they are people problems. Eminent domain should be used on a case -by -case basis, not wide spread, without any plan or proposal for development in hand. He agrees with including the Maskell property, which is underutilized. He is opposed to the wide - spread use of eminent domain. Council Member Galvan said there is not enough value to support the improvements that need to be made in the Peralta Area via an assessment district. Property owners are not going to do improvements themselves. He said there is clear evidence the Islander Motel is a public safety nuisance, and the City has no power to change management but does have the power to include the property in eminent domain. He said it makes sense to include the Maskell property. He said there is a need to improve the Peralta Area and provide an infrastructure for basic changes to occur. He said he understands the concerns of property owners. He said people who live in the Peralta area have public safety concerns. He noted 7 out of 12 sites have contamination problems. He said the City Council struggled with this and directed staff only to include those properties with a real need, where eminent domain can benefit the property owners. Council Member Myers said he concurs with the inclusion of the Islander and Maskell properties. He said this is the only feasible way to help the Peralta area. Council Member Perry concurred with the inclusion of the Islander. She said there is crime in the area, and there are structural problems with the building. She said the Maskell property is a sore spot with adjacent residents and has problems with trash dumped on sidewalks and community standards violations. She said the Peralta area costs for cleanup are high, and there are issues around the City's ability to build the infrastructure or clean up without eminent domain. She said she understands the concerns of the current businesses. She said the City Council is trying to figure out the best way to develop the area at some point in time. She noted there would be a lengthy process before any kind of development could occur, and she would hope the City would work with the businesses and give them the longest possible time line. She said, if eminent domain is not approved, nothing will happen because of the low value of the properties.