RA2000/04/11ANAHEIM CIVIC CENTER, ANAHEIM REDEVELOPMENT AGENCY
APRIL 11, 2000
PRESENT:
PRESENT:
ABSENT:
PRESENT:
CHAIRMAN: Tom Daly
AGENCY MEMBERS: Frank Feldhaus, Lucille Kring, Tom Tait, Shirley McCracken
AGENCY MEMBERS: None
CITY MANAGER: James Ruth
CITY ATTORNEY: Jack White
ACTING SECRETARY: Ann M. Sauvageau
EXEC. DIRECTOR OF COMM. DEVELOPMENT: Lisa Stipkovich
DEPUTY DIRECTOR OF COMM. DEVELOPMENT: Brad Hobson
A complete copy of the agenda for the meeting of the Anaheim Redevelopment Agency was posted at on
April 7, 2000, at the City Hall Bulletin Board, (both outside and inside the entrance to City Hall) containing
all items as shown herein.
Chairman Daly called the regular meeting of the Anaheim Redevelopment Agency to order at 5:57 p.m.
FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of
222,558.31 for period ending April 3, 2000, and $219,788.42 for period ending April 10, 2000 in
accordance with the 1999-2000 Budget, were approved.
ADDITIONS TO THE AGENDA: There were no additions to agenda items.
ITEMS OF PUBLIC INTEREST:
PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments on Redevelopment Agency
agenda items.
CONSENT CALENDAR ITEM 1: On motion by Chairman Daly, seconded by Agency Member
McCracken the following action was authorized in accordance with the reports and recommendations
furnished each Agency Member and as listed on the Consent Calendar Agenda.
Approve and authorize the Community Development Executive Director to execute the Owner
Participation Agreement (OPA), the Design Plans (including the Site Plan and Elevations), and
final construction documents between Anaheim Place Partners, L.P. and the Anaheim
Redevelopment Agency regarding the revitalization of property at 505 North Euclid Street.
Lisa Stipkovich, Executive Director of Community Development. She briefed the project as requested by
Chairman Daly and as outlined in staff report dated April 11, 2000 from the Community Development
Department. The building has been vacant for some time and needs refurbishing. It was recently
purchased by Mr. Brutoco. The proposed agreement would allow the agency to provide financial
assistance to make the project happen. Posted on the Chamber wall are the elevation and site plans
which are also attached to the staff report. The project is one that meets the goals for Redevelopment,
i.e., to remove blight and refurbish the building. When completed it will add approximately 300 jobs,
provide tax increment, sales tax generated from the employees and also $1.8 million in construction-
related spending. Staff is recommending approval.
Agency Member Feldhaus asked if there were any encumbrances against the property; Lisa Stipkovich.
Although they are calling this a loan, they are not putting any money up front. They will be reimbursing the
property owner for the cost of rehabilitation over time but technically they do not put up the funds. The
Agency would not be securing any funds against the property. The current debt is about $4 million and the
developer would be putting in $2.5 million in rehab costs. The $2.5 M is the equity and the $4 M is the
debt.
Mr. Brutoco (the developer) interjected and stated they have $4 million currently in the facility that
encompasses buying the property plus construction costs to renovate it. They will have about $4 million of
ANAHEIM CIVIC CENTER, ANAHEIM REDEVELOPMENT AGENCY
APRIL 11, 2000
debt when the construction, as depicted in the posted graphics, is complete as well as $2.5 million of their
own invested in the property.
Lisa Stipkovich. $2.5 million equity and $6.5 million of value. Their involvement is to reimburse the
$200,000 over 10 years. There is no cash or indebtedness because they are not putting money up front.
Agency Member Feldhaus continued with a line of questioning revolving around the specifics of the OPA
as well as other related questions which were answered by both Mrs. Stipkovich and Mr. Brutoco, his
major concern being, where was the benefit to the City in using taxpayer money to assist a private
planner.
Mrs. Stipkovich noted that the attachment (to the report of April 11, 2000) discusses not only sales tax but
there will also be an increase of $10,000 a year in property tax, an increase in business license fees and
utility revenue. It is also about refurbishing a very tired building; it is a gateway project that can be seen
from the freeway and is the gateway to Euclid. Staff feels it is an important piece of property in Anaheim
providing an upgrade to what is there now. It will have economic benefit, perhaps not 100% return on the
dollar, but significant in terms of the revenue stream.
Agency Member Feldhaus. Personally he feels uncomfortable with the proposal and believes it is too
much for too little economically.
After additional discussion, Mrs. Stipkovich recapped the economic benefits, i.e., sales tax revenue,
property tax revenue, business license fees, etc., which equates to at least $20,000 a year, if not $35,000
at the high end without even counting the utility revenue with 4% transferred to the City General Fund.
Chairman Daly. Reading through the staff report and listening to the rationale for the Redevelopment
Agency to assist, he believes there is an underlying connection between the quality rehabilitation of this
office building and the ongoing improvements in the Euclid Street and Anaheim Plaza area. Some of the
development and rehabilitation in the neighborhood has been less than first class. This is an opportunity
for the City to encourage a first-class renovation. He believes there will be a payback especially with the
300 jobs. This part of Anaheim needs first-class renovation; he will be supporting the staff
recommendation.
Agency Member Tait. He will be supporting the recommendation as well and thanked the developer, Mr.
Brutoco, for choosing Anaheim. The proposal will do a lot to revitalize the whole area.
End of Consent Calendar. MOTION CARRIED.
ADJOURNMENT: Chairman Daly moved to adjourn, Agency Member McCracken seconded the motion.
MOTION CARRIED. (6:14 p.m.)
ACTING SECRETARY