2002-223RESOLUTION NO. 2002R-223
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE ANAHEIM
REDEVELOPMENT AGENCY AND CIM CALIFORNIA URBAN
REAL ESTATE FUND, LP, A DELAWARE LIMITED
PARTNERSHIP, REGARDING CERTAIN REAL PROPERTY IN
REDEVELOPMENT PROJECT ALPHA, AND MAKING CERTAIN
FINDINGS IN CONNECTION THEREWITH
WHEREAS, the Anaheim Redevelopment Agency (the "Agency") is engaged in
activities necessary to carry out and implement the Redevelopment Plan for the Agency's Alpha
Project (the "Project"); and
WHEREAS, the Agency owns three (3) development sites in Downtown Anaheim,
within the area bordered by Center Street Promenade, Anaheim Boulevard, Broadway and Harbor
Boulevard (the "Development Sites"), which Development Sites have been previously developed for
urban use; and
WHEREAS, the Agency and CIM Califomia Urban Real Estate Fund, LP (the
Developer) have entered into an Exclusive Negotiation Agreement dated as of August 1, 2002,
pursuant to which the Agency and the Developer agreed to negotiate with one another towards a
Disposinon and Development Agreement for the development of the Development Sites; and
WHEREAS, in order to carry out and implement the Redevelopment Plan the
Agency proposes to enter into that certain Disposition and Development Agreement (the
"Agreement") with the Developer for the Agency's sale of the Development Sites to the Developer,
and for the Developer's development of a public library, attached housing, retail space, public
parking structures and other improvements thereon, all as described in the Agreement (the
"Development"); and
WHEREAS, the Developer has submitted to the Agency and the City Council of the
City of Anaheim (the "City Council") copies of the Agreement in a form executed by the Developer;
and
WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et seq.), the Agency is authorized, with the
approval 0fthe City Council after a duly noticed public hearing, to sell the Development Sites for
development pursuant to the Redevelopment Plan upon a determination by the City Council that the
sale of the property will either assist in the elimination of blight or provide affordable housing for
low and moderate income persons, that the consideration for such sale is not less than either the fair
market value or fair reuse value of the Development Sites in accordance with the covenants and
conditions governing the sale and the development costs required thereof, and that the sale is
consistent with the implementation plan which has been adopted by the Agency for the Project; and
WHEREAS, the City Council has previously determined, in its adoption of the
ordinance approving the Project, that the Site was blighted, including substandard structures, serious
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grade problems, structural deterioration and poor maintenance; and
WHEREAS, the Agreement would provide for the elimination of such blighting
conditions by providing for the construction of the Development on such previously blighted real
property; and
WHEREAS, the purchase price for the Development Sites payable under the
Agreement is not less than the reuse value of the Development Sites, at the use and with the
covenants, conditions precedent, conditions subsequent and development costs authorized by the
Agreement, as determined by the reuse analysis of the Agreement which has been performed by the
Agency's financial consultants; and
WHEREAS, the Agency has adopted an Implementation Plan for the Project
pursuant to Health and Safety Code Section 33490, which identifies goals and objectives including
eliminating substandard structures and eliminating physical and economic deficiencies; and
WHEREAS, the Implementation Plan sets forth a program of actions which include
improving public facilities and infrastructure, upgrading and expanding commercial programs, and
expanding retail programs; and
WHEREAS, the Agreement will assist the Agency in meeting the goals and
objectives set forth in the Implementation Plan and the program of actions by the construction of the
Development; and
WHEREAS, Health and Safety Code Section 33445 authorizes a redevelopment
agency, with the consent of the legislative body, to pay all or part of the value of the land for and the
cost of the installation and construction of any building, facility, structure, or other improvement
which is publicly owned either within or without the project area upon certain findings; and
WHEREAS, Health and Safety Code Section 33679 requires that before a
redevelopment agency commits to use property tax increment funds to pay the cost of land for and
installation and construction of publicly owned buildings, the legislative body shall hold a public
hearing thereon; and
WHEREAS, prior to such public hearing the legislative body is required to give
notice of the hearing and to make available for public inspection a summary report which estimates
the amount of taxes proposed to be used to pay for such public facilities, which sets forth the facts
supporting the determinations required to be made pursuant to Health and Safety Code Section
33445, and which sets forth the redevelopment purpose for which such taxes are being used; and
WHEREAS, the expenditure of Agency funds for the development of the public
library and public parking structures on the Development Sites is of benefit to the Project by
developing vacant sites in the downtown into a modem public library building together with
sufficient and convenient complementary services and public parking; and
WHEREAS, there are no other reasonable means of financing the cost of the public
library and public parking structures available to the community, as the City has no additional funds
available to pay for such costs as existing City financial resources are not sufficient to construct the
library and the necessary public parking structures, and the Development would be economically
infeasible if the Developer was required to bear such costs; and
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WHEREAS, Section 316 of the Redevelopment Plan for the Project provides for the
Agency to pay all or part of the cost of the installation of publicly owned improvements inside or
outside of the Project; and
WHEREAS, the public library and public parking structures would satisfy the above
objectives of the Implementation Plan by providing for a modem public library building and related
amenities and public parking; and
WHEREAS, a joint public hearing of the Agency and City Council on the proposed
Agreement was duly noticed in accordance with the requirements of Health and Safety Code
Sections 33431, 33433 and 33679, and the proposed Agreement, and a summary report meeting the
requirements of Health and Safety Code Sections 33433 and 33679, were available for public
inspection prior to the joint public hearing consistent with the requirements of Health and Safety
Code Sections 33433 and 33679; and
WHEREAS, on October 29, 2002, the Agency and City Council held a joint public
hearing on the proposed Agreement, at which time the Agency reviewed and evaluated all of the
information, testimony, and evidence presented during the joint public hearing; and
WHEREAS, all actions required by all applicable law with respect to the proposed
Agreement have been taken in an appropriate and timely manner; and
V~'HEREAS, pursuant to the California Environmental Quality Act ("CEQA") the
Agency has certified a Final Subsequent Environmental Impact Report on November 23, 1976 by
Resolution No. ARA 76-38, a Supplemental EIR for Project Alpha Parcel 10 on September 6, 1983
by Resolution 83-35, a Subsequent EIR for Parcel 8 and 9 on November 8, 1983 by Resolution No.
ARA 83-83, an Addendum for Koll Anaheim Center on January 9, 1990 by Resolution Nos. ARA
90-1 and 90R- 13, and an Initial Study and Trip Generation Analysis on March 8, 1994, by Resolution
Nos. ARA 94-2 and 94R-31; and
WHEREAS, the Agreement is within the scope of one or more of the projects
analyzed under the foregoing environmental documents, and (a) approval of the Agreement does not
constitute a substantial change in those previously analyzed projects that will require major revision
of the CEQA documentation prepared therefor due to the involvement of new significant
environmental effects, or a substantial increase in the severity of previously identified significant
effects; (b) approval of the Agreement does not constitute a change in the circumstances under which
those previously analyzed projects are to be undertaken which will require major revisions of the
previous CEQA documentation due to the involvement of new significant environmental effects or a
substantial increase in the severity of previously identified significant effects; (c) there is no new
information of substantial importance which was not and could not have been known at the time the
previous CEQA documents were certified as complete or adopted that showS the previously analyzed
projects will have any significant effects not discussed in such previous CEQA documents, or will
have substantially more severe effects than were discussed in the previous CEQA documents; or that
mitigation measures or alternatives which would substantially reduce one or more significant effects
thereof, which were previously found infeasible, would in fact now be feasible; and (d) there are no
mitigation measures or alternatives different from those previously considered that would
substantially reduce one or more significant effects of the projects, which the proponents refuse to
adopt; and
DOCSOC\928209v2~22621.0108
WHEREAS, to the extent the improvements contemplated in the Agreement will
require the processing and approval of land use entitlements and permits, such land use entitlements
will, to the extent necessary under CEQA and the CEQA Guidelines (14 California Code of
Regulations sections 15000 et seq.), be subject to further CEQA analysis; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Agreement and believes that the redevelopment of the Development Sites pursuant thereto
is in the best interests of the City of Anaheim and the health, safety, and welfare of its residents, and
in accord with the public purposes and provisions of applicable state and local laws and
requirements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim as
follows:
1. The City Council finds and determines that, based upon substantial evidence
provided in the record before it, the consideration for the Agency's sale of the Development Sites
pursuant to the terms and conditions of the Agreement is not less than the fair reuse value of the
Development Sites, at the use and with the covenants, conditions precedent, conditions subsequent
and development costs authorized by the Agreement.
2. The City Council hereby finds and determines that the sale of the Development Sites
pursuant to the Agreement will eliminate blight within the Project by providing for the proper reuse
and redevelopment of a portion of the Project which was declared blighted for the reasons described
above.
3. The City Council hereby finds and determines that the Agreement and the Agency's
payment of a portion of the costs of the public library and public parking structures is consistent with
the provisions and goals of the Implementation Plan and the Redevelopment Plan.
4. The City Council finds and determines that there are no other reasonable means of
financing the costs of the construction of the library and parking structures available to the
commumty, other than the funds of the Agency.
5. The City Council hereby finds and determines that the library and parking structures
will be of benefit to the Project.
6. The City Council hereby finds that the Agreement is within the scope of one or more
projects previously analyzed pursuant to CEQA as set forth above, and that therefore the approval of
the Agreement is exempt from further CEQA analysis pursuant to Public Resources Code section
21166 and CEQA Guidelines Section 15162 (14 California Code of Regulations § 15162). The City
Council further finds and resolves that, to the extent required by CEQA, any land use entitlements
and permits required in conjunction with the implementation of improvements contemplated by the
Agreement shall be subject to further analysis under CEQA.
7. The City Council hereby approves the Agreement, and authorizes the Agency to enter
into the Agreement. A copy of the Agreement when executed shall be placed on file in the office of
the City Clerk.
8. The City Clerk shall certify to the adoption of this Resolution.
DOCSOC\928209v2L22621.0108
The foregoing Resolution is hereby' approved by the City Council of the City of Anaheim this
29thdayof October., 2002.
ATTEST:
APPROVED AS TO FORM:
¢..A..CA~tI~, CITY ATTORNEY
A~jstant City Attorney
Stradling Yocca Carlson & Rauth,
City Special Counsel
DOCSOCX,928209v2~22621.0108
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-223 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 29th day of October, 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
~~Of ~EIM
(SEAL)