ARA-2011/02/15ANAHEIM REDEVELOPMENT AGENCY
REGULAR MEETING OF
FEBRUARY 15, 2 011
The Anaheim Redevelopment Agency met in regular session in the Chambers of
Anaheim City Hall located at 200 South Anaheim Boulevard. At 5:22 P.M., Chairman
Tait called the meeting of the Agency to order for a joint public comment session with
the Anaheim City Council, the Anaheim Housing Authority and the Anaheim Public
Financing Authority.
Present: Chairman Tom Tait and Agency Members: Gail Eastman, Lord Galloway,
Kris Murray and Harry Sidhu.
Staff Present: City Manager Tom Wood, City Attorney Cristina Talley, and Secretary
Linda Andal
A copy of the agenda was posted on February 11, 2011 on the kiosk outside City Hall.
ADDITIONS /DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS: No comments offered during the joint public comment session
related to the Redevelopment Agency agenda.
CONSENT CALENDAR: Agency Member Eastman removed Item No. 5 from the
consent calendar for separate discussion and at 5:46 P.M., Vice Chairman Sidhu
moved to approve the balance of the consent calendar as presented, seconded by
Agency Member Murray. Roll Call Vote: Ayes — 5: Chairman Tait and Agency
Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried.
6. Approve minutes of Redevelopment Agency special meeting of January 18,
2011 and regular meeting of January 25, 2011
OFF CONSENT:
5. RESOLUTION NO. ARA 2011 -007 A RESOLUTION OF THE ANAHEIM
R100 REDEVELOPMENT AGENCY approving the borrowing from its low and
moderate income housing fund for the purpose of paying the Agency's
Supplemental Educational Revenue Augmentation Fund ( SERAF) payment for
fiscal year 2010 -11 and making certain findings pursuant to Health and Safety
Code Section 33690.5 (related to Council Item No. 16).
Elisa Stipkovich, Community Development Executive Director, reported with adoption
of this resolution, the Agency would approve the borrowing of low income housing
funds in order to pay the City's SERAF payment, part of a mandatory payment the
State requested for this fiscal year in the amount of $3.3 million. Last year's mandated
request, she pointed out, was approximately $16 million. She added staff was
recommending borrowing to make the payment as cash flow analysis of regular
redevelopment resources revealed there were insufficient funds to make the payment
Anaheim Redevelopment Agency Minutes of February 15, 2011
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without impinging on current redevelopment activities. Ms. Stipkovich ended her report
stating it would be in the best interest of the Agency to use those setaside funds so as
not to make an impact on regular planned redevelopment operations and further
clarified arrangements would be made, as required, to pay back the loan over the next
five years.
Agency Member Eastman then moved to approve RESOLUTION NO. ARA 2011 -007
OF THE ANAHEIM REDEVELOPMENT AGENCY approving borrowing from its low
and moderate income housing fund for the purpose of paying the Agency's
Supplemental Educational Revenue Augmentation Fund (SERAF) payment for FY
10/1, and making certain findings pursuant to Health and Safety Code Section
33690.5, seconded by Agency Member Galloway. Roll Call Vote: Ayes — 5: Mayor
Tait and Agency Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion
Carried.
At 5:49 P.M., the City Council session was reconvened for the Joint Public Hearing.
JOINT CITY COUNCIL /REDEVELOPMENT AGENCY PUBLIC HEARING
7. This is a joint public hearing among the Anaheim Redevelopment Agency and
the Anaheim City Council to consider resolutions regarding a Disposition and
AGR.6669 Development Agreement by and between the Anaheim Redevelopment Agency
and Brookfield Olive Street III, LLC, for Phase IV of the Colony Park
development.
Redevelopment Agency Action:
RESOLUTION NO. ARA 2011 -008 A RESOLUTION OF THE GOVERNING
BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY approving a
Disposition and Development Agreement with Brookfield Olive Street III, LLC,
and making certain findings in connection therewith.
Executive Director, Elisa Stipkovich explained a joint public hearing was necessary
under California law for redevelopment agencies disposing of property and required
action by all governing bodies involved. Item No. 7 was a recommendation to approve
a disposition and development agreement (DDA) with Brookfield Homes for Colony
Park IV, the last phase of a 40 -acre neighborhood in development in downtown
Anaheim. She remarked when this 12 acre site became available; the former Council
authorized a Request for Proposal (RFP). Twelve proposals were then received by the
City and three developers interviewed. Ms. Stipkovich stated Brookfield had submitted
the top proposal which included the highest land price to be offered at about $20.4
million.
This October, she stated, Council had approved entering into an exclusive right to
negotiate with Brookfield for Colony Park, Phase IV and as a result of that negotiation,
a final DDA was before Council to complete this 12 acre site proposed for 226
condominiums and townhomes. The purchase price, she pointed out, was above fair
market value for this site per an independent appraisal authorized by the City and a
projection of future tax increment that should be collected over the redevelopment
project area Life span was about $22 million. The Agency had already expended about
$22.3 million through acquisition, remediation and removal of buildings on this site and
Anaheim Redevelopment Agency Minutes of February 15, 2011
Page 3 of 3
when added to the purchase price of $20.3 million, net revenue of over $20 million was
anticipated. She noted the developers were also required to have a 25 percent
affordable housing component, 10 percent low and 15 percent moderate, and staff
projected there would be about 75 units that would qualify as affordable due to the
sales prices expected for the units. She added the Agency was also being asked to
commit $8 million in funds to be made available for down payment assistance for
individuals purchasing homes in that new project.
Chairman Tait opened the public hearing.
John O'Brien, Brookfield Homes, remarked his firm had started working on Colony
Park in 2005 and with the Agency's cooperation, assembled the south portion of
Colony Park and began construction. He added Brookfield was completing the vision
of redevelopment and fulfilling the goals of the City's General Plan in creating what was
incompatible and underutilized uses at the old Quickset site and turning it into
residential. Phase I and II were now complete with 270 homes, and Phase III was
underway with two models in construction, scheduled for opening in May, 2011. He
noted Phase IV would begin in the next 12 to 14 months. He added the entire Colony
Park would build out at 670 homes under a single homeowners association and that
Brookfield strongly believed in the success of downtown Anaheim.
With no other comments offered, Chairman Tait closed the hearing.
Vice Chairman Sidhu moved to approve RESOLUTION NO. ARA 2011 -008 OF THE
ANAHEIM REDEVELOPMENT AGENCY approving a Disposition and Development
Agreement with Brookfield Olive Street III and making certain findings, seconded by
Agency Member Murray. Roll Call Vote: Ayes — 5: Chairman Tait and Agency
Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried.
ADJOURNMENT: At 5:57 P.M., with no other business to conduct, Chairman Tait
adjourned the Anaheim Redevelopment Agency regular meeting of February 15, 2011.
Respectfully submitted,
Q h
Linda N. Andal, CMC
Secretary, Anaheim Redevelopment Agency