APFA2018/03/27ANAHEIM PUBLIC FINANCING AUTHORITY
REGULAR MEETING OF MARCH 27, 2018
The Anaheim Public Financing Authority regular meeting was called to order at 5:35 P.M. in City
Council Chambers located at 200 S. Anaheim Blvd. for a joint public comment session with the
Anaheim City Council. The meeting notice, agenda, and related materials were duly posted on
March 23, 2018.
PRESENT: Chairman Tom Tait and Authority Members: Jose F. Moreno, Kris Murray, James
Vanderbilt, Denise Barnes, Lucille Kring, and Stephen Faessel.
STAFF PRESENT: Interim City Manager Linda Andal, Acting City Attorney Kristin Pelletier,
and Acting Secretary Theresa Bass.
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS:
No public comments offered related to the Public Financing Authority agenda.
CONSENT CALENDAR: At 8:41 P.M., Authority Member Kring moved to approve the consent
calendar as presented, seconded by Authority Member Faessel. ROLL CALL VOTE: AYES —
7: (Chairman Tait and Authority Members Moreno, Murray, Vanderbilt, Barnes, Kring, and
Faessel). NOES — 0. Motion carried.
PFA187 1. Approve minutes of Public Financing Authority meeting of November 7, 2017.
END OF CONSENT CALENDAR:
Agr-1699 2. Consider resolutions by the Public Financing Authority and City Council releasing a 1.67-
Agr-10190 acre triangular portion of city -owned land located at 800 West Katella Avenue (APN No.
137-011-07) that the City agreed to sell to FJS, Inc., (Anabella Hotel Development) and
a 0.70 -acre portion of city -owned land located at 800 West Katella Avenue (APN Nos.
137-151-01, 137-151-04 and 137-011-07) for the Katella Street Widening project.
Public Financing Authority Actions:
2-A. RESOLUTION NO. APFA-2018-001 A RESOLUTION OF THE BOARD
OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY
authorizing the execution and delivery of a First Supplemental Site and Facility
Lease to a 1997 Site and Facility Lease and a First Supplemental Lease
Agreement to a 1997 Lease Agreement and authorizing other matters related
thereto.
RESOLUTION NO. APFA-2018-002 A RESOLUTION OF THE BOARD
OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY
authorizing the execution and delivery of a First Supplemental Site and Facility
Anaheim Public Financing Authority Minutes March 27, 2018
Page 2
Lease to a 2014 Site and Facility Lease and a First Supplemental Lease
Agreement to a 2014 Lease Agreement and authorizing other matters related
thereto.
MOTION: LK/KM APPROVED VOTE: 7-0.
City Council Actions:
2-13. RESOLUTION NO. 2018-026 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM approving the release of a portion of the leased premises leased
under a 1997 Site and Facility Lease and a 1997 Lease Agreement, authorizing the execution
and delivery of a First Supplemental Site and Facility Lease and a First Supplemental Lease
Agreement in connection therewith and authorizing other matters related thereto.
RESOLUTION NO. 2018-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM approving the release of a portion of the leased premises leased under a 2014
Site and Facility Lease and a 2014 Lease Agreement, authorizing the execution and delivery of
a First Supplemental Site and Facility Lease and a First Supplemental Lease Agreement in
connection therewith and authorizing other matters
Finance Director Debbie Moreno explained the items before Council were the release of a 1.67
acre triangular parcel and a smaller, less than 1 acre parcel of city -owned land from the lease
agreements between the City of Anaheim and the Anaheim Public Financing Authority, related
to three different city bond issues. Ms. Moreno reported the release of these locations was
needed to fulfill obligations to clear encumbrances from the triangular parcel of land the city
agreed to sell to FJS in July 2016 in conjunction with the development of the Anabella Hotel.
She continued that the triangular portion of land was used for Anaheim Convention Center
back -of -house activities, and as part of this transaction, FJS would complete the development of
the hotels parking structure including the parking easement area and associated improvements
accommodating the approximate same square footage for the same Convention Center back -of -
house activities. She stated the permit for the parking structure had been issued and
constructions was ongoing, while plans for new hotel were working their way through plan
check. She explained the smaller parcel of land was required for the Katella Street Widening
Project to be constructed in coordination with that development. In conclusion, Ms. Moreno
stated these administrative items were needed to meet obligations for the widening of Katella
and to clear title to the property for the eventual transfer of property to FJS. She explained title
would not transfer until all conditions of closing were met by both the City and FJS which
includes, but is not limited to, completion of the parking structure and the deposit of the net
purchase price of approximately $4.7 million into escrow by FJS.
DISCUSSION: Mayor Pro Tem Moreno confirmed this was in-house cleaning of titles and
encumbrances but not a vote on actually transferring the property or title of the property, which
was confirmed by Finance Director Moreno. Mayor Pro Tem Moreno requested a memo or
future agenda item addressing the implications of the November vote of the people on two
referendum measures for hotels in terms of ultimately transferring the properties. Acting City
Attorney Kristin Pelletier explained one of closing conditions in favor of the buyer, FJS, is their
ability to waive that all entitlements are final and non -appealable including the development
agreement, as written into the purchase and sale agreement. Ms. Pelletier continued that if the
referendums were approved and the buyer did not waive that condition, then escrow would not
close, nor would it close if the Development Agreement was eliminated unless the buyer chose
to waive that requirement.
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Page 3
Mayor Tait expressed his concern with this item in regards to the July 12, 2016 Council approval
of hotel subsidy agreements of approximately $300 million that he was unable to vote on due to
his travel to Washington D.C. to meet with President Obama about officer -involved shootings
and race relations. He also stated Council agreed to sell land adjacent to Convention Center to
the Anabella Hotel at what he believed was a discounted price. Now that he can vote on
something regarding this project, Mayor Tait reported he felt bound to approve this item as a
contractual obligation to transfer the property free and clear of any encumbrances. He reported
bond holders on the Convention Center had this property as collateral for payment on those
bonds, but have now agreed to release this collateral so the City can meet its contractual
obligation to transfer this property when the time is due. Mayor Tait stated he will reluctantly
vote to approve the item.
Mayor Pro Tem Moreno also indicated his reluctant approval
MOTION: Authority Member Kring moved to approve RESOLUTION NO. APFA-2018-001
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING
AUTHORITY authorizing the execution and delivery of a First Supplemental Site and Facility
Lease to a 1997 Site and Facility Lease and a First Supplemental Lease Agreement to a 1997
Lease Agreement and authorizing other matters related thereto and RESOLUTION NO. APFA-
2018-002 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ANAHEIM
PUBLIC FINANCING AUTHORITY authorizing the execution and delivery of a First
Supplemental Site and Facility Lease to a 2014 Site and Facility Lease and a First
Supplemental Lease Agreement to a 2014 Lease Agreement and authorizing other matters
related thereto, seconded by Authority Member Murray. ROLL CALL VOTE: AYES — 7:
(Chairman Tait and Authority Members Moreno, Murray, Vanderbilt, Barnes, Kring, and
Faessel). NOES — 0. Motion carried.
MOTION: Council Member Kring moved to approve RESOLUTION NO. 2018-026 A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the release of
a portion of the leased premises leased under a 1997 Site and Facility Lease and a 1997 Lease
Agreement, authorizing the execution and delivery of a First Supplemental Site and Facility
Lease and a First Supplemental Lease Agreement in connection therewith and authorizing other
matters related thereto and RESOLUTION NO. 2018-027 A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF ANAHEIM approving the release of a portion of the leased
premises leased under a 2014 Site and Facility Lease and a 2014 Lease Agreement,
authorizing the execution and delivery of a First Supplemental Site and Facility Lease and a
First Supplemental Lease Agreement in connection therewith and authorizing other matters,
seconded by Council Member Murray. ROLL CALL VOTE: AYES — 7: (Mayor Tait and Council
Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel). NOES — 0. Motion carried.
ADJOURNMENT:
There being no further business, without objection, Chairman Tait adjourned the meeting of the
Anaheim Public Financing Authority at 8:53 P.M.
Respectfully submitted,
Theresa Bas , CMC
Acting Secretary, Anaheim Public Financing Authority