RES-2011-029RESOLUTION NO. 2011 -029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
CONSENTING TO THE SUB - SUBLEASE AGREEMENT BY AND BETWEEN
ASC- ANAHEIM, LLC AND THE ANAHEIM REDEVELOPMENT AGENCY
AND MAKING CERTAIN FINDINGS IN CONNECTION
WHEREAS, the Anaheim Redevelopment Agency ( "Agency ") is a redevelopment agency
duly organized and existing under the California Community Redevelopment Law, Health and Safety
Code Section 33000, et seq., ( " CRL ") and has been authorized to transact business and exercise the
power of a redevelopment agency pursuant to action of the City Council ( "City Council ") of the City
of Anaheim ( "City "); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the
Amended and Restated Redevelopment Plan ( "Redevelopment Plan ") for the Anaheim Merged
Project Area ( "Merged Project Area ") which was adopted by and through a series of ordinances of
the City Council of the City of Anaheim, specifically Ordinance Nos. 5913, 5914, 5915, 5916, 5917,
5918, 5973, and 6034; and
WHEREAS, the Agency desires to effectuate the Redevelopment Plan for the Merged Project
Area by providing for the redevelopment of approximately nine (9) acres of real property in the City
of Anaheim located at Claudina Way (both east and west side), north of Interstate 5 and east of South
Anaheim Boulevard (the "Site "); and
WHEREAS, on March 5, 1999, Katella Operating Properties, LLC ( "KOP I "), as optionee,
entered into an "Option Agreement" with Southern California Edison Company ( "Edison "), as
optionor, with respect to the Site; and
WHEREAS, KOP I assigned its rights and interests under the Option Agreement to Katella
Operating Properties II ( "KOP II ") with the consent of Edison; and
WHEREAS, KOP II exercised the option under the Option Agreement, thereby commencing,
on May 1, 2001, a license to use the Site for a period of forty (40) years (the "License Term "); and
WHEREAS, in order to carry out and implement such Redevelopment Plan, the Agency, as
sublicensor /subleasee, entered into that certain Sublicense /Sublease Agreement on April 30, 2001
with KOP II (the "Sublease ") pursuant to which KOP II sublicensed the Site to the Agency, with the
consent of Edison and subject to the terms and conditions of the Option Agreement; and
WHEREAS, KOP II's license of the Site pursuant to the Option Agreement was converted to
a lease deemed to begin on March 1, 2003, pursuant to decision D -03 -01 -040 of the California Public
Utilities Commission, thereby converting the Agency's sublicense of the Site to a sublease; and
WHEREAS, in order to carry out and implement such Redevelopment Plan, the Agency,
proposes to enter into that certain Sub - sublease Agreement with ASC - Anaheim (the "Agreement ")
pursuant to which the Agency intends to sub - sublease an approximately seven and forty -five
hundredths (7.45) acre portion of the Site (the "Premises ") to ASC - Anaheim, LLC; and
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WHEREAS, Section 33433 of the CRL requires, among other things, that the Agency (i)
prepare a report with respect to the disposition of certain interests in real property acquired in whole
or in part with tax increment (a "33433 Report") and (ii) obtain the consent of the City Council for
the disposition of such real property interests; and
WHEREAS, the City Council has reviewed the 33433 Report for the Agreement which
concludes that the Agreement provides for the sub - sublease of the Premises at fair market value.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANAHEIM AS FOLLOWS:
Section 1. The City Council finds and determines that, based upon substantial evidence
provided in the record before it, the consideration for the Agency's disposition of the Premises
pursuant to the terms and conditions of the Agreement, is not less than the fair market value of the
interest in the Premises to be conveyed under the Agreement.
Section 2. The City Council hereby finds and determines that the disposition of the
Premises pursuant to the terms and conditions of the Agreement will eliminate blight within the
Redevelopment Project Area by providing for the proper reuse and redevelopment of a portion of the
Redevelopment Project Area which was declared blighted.
Section. 3. The City Council hereby finds and determines that the Agreement is
consistent with the Implementation Plan adopted for the Redevelopment Project.
Section 4. The City Council hereby consents to the Agency's approval of the
Agreement substantially in the form on file with the City Clerk/Agency Secretary. A copy of the
Agreement when executed by the Agency shall be placed on file in the office of the City
Clerk/Agency Secretary.
Section 5. The City Council hereby accepts the assignment set forth in Section 11 of the
Agreement.
Section 6. The City Clerk shall certify to the adoption of this Resolution.
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THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE CITY
COUNCIL OF THE CITY OF ANAHEIM THIS TWENTY- SECOND (22n DAY OF MARCH,
2011 BY THE FOLLOWING ROLL CALL VOTE:
AYES: Mayor Tait, Council Members Sidhu, Eastman, Galloway, Murray
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Tom Tait, Mayor
ATTES .
Linda Andal, City Clerk
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Assistant City Attorney