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AHA-2016/01/12 ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF JANUARY 12, 2016 -1 The Anaheim Housing Authority regular meeting was called to order at 5:38 P.M. for a joint public session with the Anaheim City Council. The meeting notice, agenda and related materials were duly posted on January 8, 2016. Present: Chairman Tom Tait and Authority Members: Jordan Brandman, Lucille Kring, Kris Murray and James Vanderbilt. Staff Present: City Manager Paul Emery, City Attorney Michael Houston and Secretary Linda Andal ADDITIONS/DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No public comments made during the joint City Council/Housing Authority meeting related to the Housing Authority agenda. The Housing Authority was recessed at 7:24 P.M. and reconvened at 7:32 P.M for a joint public hearing with the Anaheim City Council CONSENT CALENDAR: The consent calendar was approved as presented with Vice Chair Kring moving to approve, seconded by Authority Member Murray. ROLL CALL VOTE: AYES — 5: (Chairman Tait and Authority Members Brandman, Kring, Murray and Vanderbilt.) NOES —0. Motion Carried. AHA177 20. Approve the minutes of the Housing Authority Meeting of December 15, 2015. JOINT PUBLIC HEARING (Housing Authority and City Council) P109 21. This is a joint public hearing of the Anaheim Housing Authority and the Anaheim City AGR-9579 Council to consider resolutions approving a Purchase and Sale agreement, in substantial form, between the Anaheim City Council and the Anaheim Housing Authority and authorizing the Director of Community and Economic Development to finalize and implement said Purchase and Sale Agreement for properties within The Packing District and Make building; The BARN at the circle on Center Street/Lemon Street; HomeMADE building along the north side of Santa Ana Street east of the Packing District; and The Barrel building at Anaheim Blvd. and Water Street (APN(s) 037-111-29 and 30; 037-024- 11; and 251-071-023 and 024; the northside public alley and a portion of the southwest public alley). Housing Authority Action: RESOLUTION NO. AHA 2016-001 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Purchase and Sale Agreement with the City of Anaheim substantial in the form attached to the resolution; authorizing the Executive Director to finalize such Purchase and Sale Agreement; authorizing the Executive Anaheim Housing Authority Minutes of January 12, 2016 Page 2 Director to implement such Purchase and Sale Agreement; and making certain other findings in connection therewith. John Woodhead, Director of Community Development, reported this was a joint public hearing for both the City Council and the Housing Authority to consider the purchase of two Housing Authority properties by the City of Anaheim followed by authorization of the sale of those two properties along with two other former Redevelopment Agency (RDA) properties to Lab Holdings LLC. As background, he explained the Dissolution Law (AB X126) dissolved all redevelopment agencies in the state of California, effective February 1, 2012. Prior to that date, the City of Anaheim became the Successor Agency to the Redevelopment Agency to administer the dissolution and winding down of the Agency matters, but declined to retain the housing assets and functions and instead, assets were transferred to the Housing Authority. Mr. Woodhead added while the Housing Authority was permitted to manage all assets it received from the former Redevelopment Agency, the Successor Agency was not able to do so until the California Department of Finance (DOF) approved the City's long range Property Management Plan. That plan listed about 100 acres of Successor Agency property as either a governmental use property for transfer to the appropriate governmental user or 1) a property to be transferred to the city for disposition and development per the Redevelopment Plan or 2) a property to be sold without regard to development. He pointed out although Anaheim was one of the first successor agencies to submit its Property Management Plan to the state (about three years ago); the Department of Finance had only approved the plan on December 31, 2015, the last day in which the DOF was required to act. During this waiting period, he pointed out staff continued to work with several development partners who had already invested time and money for potential prjactoandtheO(spositionand []ewe|oprnentAunaernentbetmaentheCityGnd Lab Holding LLC was now before the City Council for consideration. He added it was one of the first in a series of pending prjects that would be brought to the City Council for consideration. The proposed Disposition and Development Agreement provided for the sale of four development sites at fair market value and the private development of commercial and mixed use prjecta. Thedave|opmentavvuu|dedduniquemndauthenbcContenttoCenterCityAnaheim to build on the success of the Packing District, Center Street and new urban residential communities. Mr. Woodhead indicated two of the development sites were housing assets transferred to the Housing Authority under the dissolution law and given the changes in the law and the loss of significant resources related to affordable housing, the Housing Authority properties were no longer viable for development of the for-sale units originally planned for those sites. Consequently, the Housing Authority intended to sell these properties to the city for fair market value per the purchase and sale agreement that was before both entities for consideration and place the proceeds into the low to moderate income housing fund consistent with state law. Mr. Woodhead indicated that the proposed development would be completed by June 2019 under the terms of the Disposition and Development Agreement. The locations of the four projects were: 1) the Packing District and Make building (involving existing deve|opment, completion of the historic building at Santa Ana/Anaheim for additional craft brewing and wine production), and two additional restaurants at Farmer's Park; 2) the BARN at Center Street/Lemon (with unique mixed residential, restaurant, etc.); 3) HomeMade consisting of live- work environment for culinary businesses; and 4) The Barrel Building at Anaheim/Water with historic preservation and commercial content and residential. Anaheim Housing Authority Minutes of January 12,2016 Page 2 He reported the net proceeds from the sale of the Housing Authority properties would reimburse the Housing Authority as per the Purchase and Sale Agreement. Authority Member Vanderbilt recalled that last year a presentation was given on all the projects the Department was considering, inquiring what the plans were for Beach Boulevard in particular and the other areas of focus. Mr. Woodhead responded that staff had continued to work with the original developer for Beach Boulevard, the Lincoln Zelman Group, and had recently given them new appraised values needed for the Property Management Plan that was just approved by the state. The firm was looking at those numbers to ensure the development they had proposed was still viable. Mr. Woodhead advised at this point, he had not heard any negative responses and intended to bring that proposal in February or March of this year. The proposal would be considered along with other deals with partners who had long-awaited the DOF's plan approval. Chairman Tait opened the public hearing for comments and receiving none, closed the hearing. MOTION: Vice Chair Kring moved to approve RESOLUTION NO. AHA 2016-001, A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Purchase and Sale Agreement with the City of Anaheim substantial in the form attached to the resolution; authorizing the Executive Director to finalize such Purchase and Sale Agreement; authorizing the Executive Director to implement such Purchase and Sale Agreement; and making certain other findings in connection therewith, seconded by Authority Member Murray. ROLL CALL VOTE: AYES - 5: (Chairman Tait and Authority Members: Brandman, Kring, Murray and Vanderbilt). NOES -0. Motion Carried. ADJOURNMENT: There being no further business, Chairman Tait adjourned the meeting of the Anaheim Housing Authority at 7:45 P.M. rpectfully submitted, CJL-00 - - Linda N. Andal, CMC Secretary, Anaheim Housing Authority