ARA-2011/03/22ANAHEIM REDEVELOPMENT AGENCY
REGULAR MEETING OF
MARCH 22, 2011
The Anaheim Redevelopment Agency met in regular session in the Chambers of
Anaheim City Hall located at 200 South Anaheim Boulevard and was called to order by
Chairman Tait at 5:20 P.M. for a joint public comment session with the Anaheim City
Council, Housing Authority and the 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 March 18, 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 Sidhu moved to approve the consent
calendar as presented, seconded by Agency Member Galloway. Roll Call Vote: Ayes
— 5:(Chairman Tait and Agency Members: Eastman, Galloway, Murray and Sidhu.)
Noes — 0. Motion Carried.
2. Approve and authorize the Agency Executive Director to execute and
AGR.6328.II administer an Exclusive Negotiation Agreement with Packing District, LLC, for
Phase II of the Colony Marketplace development.
3. Approve and authorize the Agency Executive Director to execute and
AGR.6690 administer an Exclusive Negotiation Agreement, in substantial form, with
Festival Development Corporation for the development of a retail project
located at the northeast corner of Anaheim Boulevard and Ball Road.
4. Approve minutes of Redevelopment Agency meeting of March 8, 2011.
JOINT PUBLIC HEARING: At 5:42 P.M., a Joint Public Hearing with the Anaheim
Redevelopment Agency and the City Council was held.
5. This is a joint public hearing between the Anaheim Redevelopment Agency and
the City to consider a sub - sublease agreement, in substantial form, by and
AGR.6691 between the Anaheim Redevelopment Agency and ASC- Anaheim, LLC,
regarding real property located between South Anaheim Boulevard and
Claudina Way.
Anaheim Redevelopment Agency Minutes of March 22, 2011
Page 2 of 3
Redevelopment Agency Action:
RESOLUTION NO. ARA 2011 -008 A RESOLUTION OF THE
GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY
approving and authorizing the execution of the sub - sublease agreement by and
between ASC- Anaheim, LLC and the Anaheim Redevelopment Agency and
making certain findings in connection therewith.
Community Development Executive Director Elisa Stipkovich explained the Agency
was requesting approval of a sub -lease to an existing Agency lease on property
located along a Southern California Edison (SCE) easement. The property had been
leased from SCE to Katella Operating Properties and the Agency had entered into that
sub -lease some time ago to allow the Agency to work in its redevelopment project
area. The 8.9 acre property had a portion sub - leased with 7.45 acres remaining.
She reported American Sports Center (ASC), operating in Anaheim since 2003, was a
one of a kind venue for volleyball and basketball. Its 100,000 square foot facility
contained 22 volleyball courts and 16 basketball courts and attracted local athletes and
sports talent from throughout the state and nation for practice and tournaments. In
addition, ASC was the training location for the U.S. Men's and Women's National
Volleyball Teams. Due to their successful operation, and since there was now an
opportunity to lease adjacent building space, ASC was looking to expand by adding an
additional 92,000 square feet of sports area. She added, in order to accommodate the
expansion, American Sports Center would be required to provide additional parking
and the SCE easement would be used for that purpose.
The lease rate for the Sub - Sublease Agreement, she reported, was proposed at
$25,000 per month or $300,000 per year, and would escalate three percent annually.
This lease rate was below what the Agency was currently paying but was consistent
with the market -rate rent and, she pointed out, the lessee would be required to improve
the property and spend up to $1.5 million in necessary parking lot improvements,
including landscaping and lighting. The lease term was 15 years, with two five -year
options. She noted an agreement had been worked out with ASC to provide up to $2.8
million worth of community service and in -kind services that the City would then have
available to them such as allowing U.S. volleyball team's use of the facility. The
Agency would give a credit for the costs of the improvements during the first five years,
for an amount not to exceed $1.5 million and the total subsidy to the developer for rent
forgiveness was $2.7 million over 15 years. For the reasons outlined, staff
recommended approval of this sub - lease.
Chairman Tait opened the public hearing and receiving no comments, closed the
hearing.
Agency Member Galloway moved to approve RESOLUTION NO. ARA 2011 -009 OF
THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY
approving and authorizing the execution of the sub - sublease agreement by and
between ASC- Anaheim, LLC and the Anaheim Redevelopment Agency and making
certain findings in connection therewith, seconded by Agency Member Murray. Roll
Call Vote: Ayes — 5:(Chairman Tait and Agency Members: Eastman, Galloway, Murray
and Sidhu.) Noes — 0. Motion Carried.
Anaheim Redevelopment Agency Minutes of March 22, 2011
Page 3 of 3
ADJOURNMENT: At 5:47 P.M., with no other business to conduct, Chairman Tait
adjourned the Anaheim Redevelopment Agency regular meeting of March 22, 2011.
Res tfully submitted,
Linda N. Andal, CIVIC
Secretary, Anaheim Redevelopment Agency