PIC1999/01/26ANAHEIM CIVIC CENTER, ANAHEIM PUBLIC IMPROVEMENT CORPORATION
JANUARY 26, 1999
PRESENT: PRESIDENT:
PRESENT: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
PRESENT: CITY MANAGER:
CITY ATTORNEY:
SECRETARY:
Tom Daly
Frank Feldhaus, Lucille Kring,
None
Jim Ruth
Jack White
Leonora N. Sohl
Tom Tait, Shirley McCracken
A complete copy of the agenda for the regular meeting of the Anaheim Public Improvement Corporation
was posted at 2:00 p.m. on January 22, 1999 at the City Hall Bulletin Board (both outside and inside the
entrance to City Hall) containing all items as shown herein.
President Daly called the regular meeting of the Anaheim Public Improvement Corporation to order at
6:03 p.m.
ADDITIONS TO THE AGENDA: There were no additions to agenda items.
ITEMS OF PUBLIC INTEREST: No items of public interest were addressed.
PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments of Public Improvement
Corporation Agenda items.
1. RESOLUTION NO. APIC99 -1 A RESOLUTION OF ANAHEIM PUBLIC IMPROVEMENT
CORPORATION approving, authorizing and directing execution of a Non- disturbance and
Attornment Agreement, Acknowledgement and Consent and related documents, and authorizing
and directing certain actions with respect thereto.
President Daly referred to the large number of documents provided to them; he asked if there were any
comments /questions.
Board Member Tait. His engineering firm has done a small amount of work for AIG or a subsidiary. He
believes they are a trustee in this transaction. Since he may be materially affected, he must declare a
conflict and abstain from discussion or voting on this item.
President Daly. He asked to hear from the City Manager to comment on this issue. He noted a lot of
work has gone into this resulting in a savings to the Anaheim taxpayer of over $4 million dollars and a
savings to the Arena partnership of close to $12 million.
City Manager Ruth. He will ask the Finance Director to address the issue but it is one that staff has been
working on for over a year. Some time back, they refinanced the land on the Arena and generated $3
million dollars which helped to pay the $1.5 million a year obligation. This is the final refinancing
mechanism and will generate an additional $4 million dollars to the City which basically wipes out the
City's final financial obligations on the Arena. He noted that, along with staff, Jill Draffen, the City's
outside Counsel did a tremendous job on this financing project. It was a very complicated financing
mechanism and absolutely a significant benefit to the City.
Finance Director, Bill Sweeney. This refinancing is a net present value benefit of between $11 and $12
million dollars to the City which means $4 million dollars in cash which will erase the remaining obligations
relative to the Arena. This transaction is guaranteed by the Ogden Corporation. There is no exposure to
the City's General Fund. Everything resides at the Arena with Pond revenues; City Manager Ruth. There
is no additional risk to the City whatsoever. Further, if they generate more than $12 million dollars, the
City shares 50% of anything over that.
ANAHEIM CIVIC CENTER, ANAHEIM PUBLIC IMPROVEMENT CORPORATION
JANUARY 26, 1999
Board Member McCracken. She surmised the $4 million will be used to pay off the remaining debt on the
Pond; Bill Sweeney. They have what is referred to as contingent liabilities and there are three more left.
This money, when invested, will generate the proceeds to pay off that amount. The debt on the building is
the responsibility of Ogden through Pond revenues. The City's responsibility will cease with respect to the
facility itself.
President Daly offered Resolution APIC99 -1 for adoption. Refer to Resolution Book.
RESOLUTION NO. APIC99 -1: A RESOLUTION OF ANAHEIM PUBLIC IMPROVEMENT
CORPORATION APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF A NON -
DISTURBANCE AND ATTORNMENT AGREEMENT, ACKNOWLEDGEMENT AND CONSENT AND
RELATED DOCUMENTS, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT
THERETO.
Roll Call vote on Resolution No. APIC99 -1 for adoption:
AYES: BOARD MEMBERS: Feldhaus, Kring, McCracken, Daly
NOES: BOARD MEMBERS: None
ABSENT /ABSTAINED: BOARD MEMBERS: Tait
President Daly declared Resolution No. APIC99 -1 duly passed and adopted.
President Daly. Before closing he wanted to thank and commend City staff who by their hard work have
brought a package forward which saves taxpayers at least $4 million dollars and reduces the future public
debt down to approximately a half - million dollars. Considering that the building is only five years old, to
have the public taxpayer debt reduced down to one -half million with 25 years left and then after that the
building will be free and clear of any debt is a remarkable achievement. He personally commends the
City Manager and everyone also involved.
City Manager Ruth. It is even better than that. They have $250,000 in reserves right now and will
accumulate about $250,000 in interest over the next three years. Together that takes care of the
$500,000.
ADJOURNMENT: President Daly moved to adjourn; Board Member McCracken seconded the motion.
MOTION CARRIED. (6:11 p.m.).
d"� � �
LEONORA N. SOHL
SECRETARY