2002-206RESOLUTION NO. 2002R-206
A RESOLUTION OF THE CITY COUNCIl. OF THE CITY OF ANAHEIM (I)
AUTHORIZING THE SUBMITTAL OF A SECTION 108 LOAN GUARANTEE
REQUEST TO THE UNITED STATES DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT FOR FUNDING ASSISTANCE RELATED TO
REDEVELOPMENT OF THE WESTGATE PROJECT ON FORMER LANDFILL
PROPERTIES AT THE NORTHEAST CORNER OF BEACH BOULEVARD AND
LINCOLN AVENUE IN THE CITY OF ANAHEIM, COUNTY OF ORANGE,
STATE OF CALIFORNIA, (I1) AMENDING THE CITY'S ONE-YEAR ACTION
PLAN FOR FISCAL YEAR 2002-2003 TO INCLUDE SUCH APPLICATION,
AND (III) MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH
WHEREAS, thc City of Anaheim ("City") is a municipal corporation and charter city of
the State of California, authorized and empowered to conduct the municipal affairs of the City;
WHEREAS, the City Cotmcil of the City of Anaheim ("City Council") is the legislative
and governing body of the City;
WHEREAS, the Anaheim Redeveloplnent Agency ("Agency"), a public body corporate
and politic, is a community redevelopment agency organized, existing and exercising its powers
pursuant to the California Community Redevelopment Law, Health and Safety Code Section
33000, et seq. (the "CRL");
WHEREAS, the West Anaheim Commercial Corridors Redevelopment Plan
( Redex elopment Plan") and the West Anaheim Colnmercial Corridors Project Area boundaries
were duly established and adopted in accordance with the CRL;
WHEREAS, the Agency is; vested with the power to implement the Redevelopment Plan
i~ or&3r to carry out its adopted goals and objectives;
WIIEREAS, in specific implementation of thc Redevelopment Plan, the Agency and the
Ci ?' ;;r'c desirous of undertaking rcde~'clopln(.:nt c:f tt vacant, former landfill and adjaczent,
~3::~qrin;d,~ commerci~d uses tot:.di~,.~, thirty. (.30) acres offreal property located withir~ the West
Amd oim Commercial Corridors Project Area at thc northeast corner of Beach Boulevard and
Lincoln Avenue in the City of Anaheim, California (the "Westgate Site");
WHEREAS, the Agency, in cooperation and conjunction with Zehnan Retail Partners, is
negotiating to assemble the multiple parcels that comprise the Westgate Site with the intention of
redeveloping the Westgate Site into a new and modem neighborhood shopping center totaling
approximately 275,000 square feet and a public plaza (the "Westgate Project");
WHEREAS, the majority of the Westgate Site was formally operated as landfills;
WHEREAS, environmental assessments and reports have determined that soil
contamination resulting from the degradation of refuse necessitates remediation activities that
may include grading and installation of a soil cap, impermeable membrane and special building
support footings in order to redevelop the property for commercial uses;
WHEREAS, the United States Department of Housing and Urban Development has
made available Brownfields Economic Development Initiative grants ("BEDI Grants") which are
designed to help cities redevelop abandoned, idled or underutilized industrial and commercial
facilities where expansion or redevelopment is complicated by real or perceived environmental
contamination;
WHEREAS, BEDI Grants are conditioned upon, and must be used in conjunction with, a
ne~v Section 108 guaranteed loan commitment;
WHEREAS, the Community Development Department of the City has submitted an
application to the Secretary of the United States Department of Housing and Urban Development
("HUD") for a BEDI Grant in the amount of $650,000 in order to facilitate assembling the
parcels necessary for, and designing and installing special engineering programs to effectuate the
development of, thc Westgate Project (the "Westgate BEDI Grant Application");
WHEREAS, HUD has conditioned the City's receipt of the Westgate BEDI Grant upon
the City obtaining a new Section 108 loan in the anticipated amount of not less than $6,500,000
(the "Westgate Section 108 Loan"), whose repayment by program rules will be secured by the
City's future Community Development Block Grant ("CDBG") allocations; however, the
Agency and the City anticipate that the Wcstgate Section 108 Loan repayment obligation will be
satisfied by the incremental revenues generated by the redeveloped Westgate Site, including sales
tax revenue generated by the Westgate shopping center, so as to not jeopardize the funding of
CDBG programs;
WHEREAS, in order to obtain the Westgate BED1 Grant, the City desires to submit an
application to obtain the Wcstgate Section 108 Loan (the "Westgate Section 108 Loan
Application").
NOW, THEREFORE, TIlE CITY COUNCll~ OF THE CITY OF ANAItEIM DOES
HEREBY RESOI~VE AS FOI.I.OWS:
Section 1. Recitals. The City Council finds that the foregoing Recitals are true and correct
and such Recitals are hereby made a substantive part of this Resolution.
Section 2. City Certification. The City Council certifies that the City meets the criteria for
the Section 108 loan guarantee program and that the City has the authority to carry out the work
included in the BEDI Grant program.
Section 3. Approval and Submittal of Application. The Westgate Section 108 Loan
Application is hereby approved and the Executive Director of the City's Community
Development Department, or her designee, is hereby authorized and directed to execute and
submit the Application to HUD, incur an indebtedness, execute loan agreements and take such
other actions as are consistent with the Application.
Section 4. Amendment of One-Year Action Plan. The City's One-Year Action Plan for
Fiscal Year 2002-2003 is amended to include the Westgate Section 108 Loan Application.
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE
CITY COUNCIL OF THE CITY OF ANAHEIM THIS 24 (th) DAY
OF September ,2002.
ATTEST:
CI~FY CLER~ OF THE CITY OF ANAHEIM
MAYOR OFTHE CITY
46520.1
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 2002R-206 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 24th day of September, 2002, by the following vote of the
members thereof:
AYES: MAYOR/COUNCIL MEMBERS: Feldhaus, Kring, McCracken, Daly
NOES: MAYOR/COUNCIL MEMBERS: None
ABSTAINED: MAYOR/COUNCIL MEMBERS: Tait
ABSENT: MAYOR/COUNCIL MEMBERS: None
'"'-CITY CL~RK OI~ ~I'HE CITY OF ANAHEIM
(SEAL)