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ARA2005-01RESOLUTION NO. ARA 2005- 01 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY AUTHORIZING AN APPROPRIATION OF FUNDS RECEIVED FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY UNDER THE BROWNFIELDS CLEANUP REVOLVING LOAN FUND PROGRAM FOR THE CLEANUP OF THE KWIKSET SITE AND OTHER SITES WITHIN THE CITY OF ANAHEIM AND PROVIDING THE BASIS FOR THE REPAYMENT OF SUCH FUNDS WHEREAS, the Anaheim Redevelopment Agency (the "Agency ") is engaged in implementation of the Redevelopment Plan for the Anaheim Redevelopment Project (the "Redevelopment Project ") pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.); and WHEREAS, as permitted under the Community Redevelopment Law, the Agency has entered into that certain Agreement dated as of May 16, 2001 by and between Voit Anaheim Business Park, LLC, ( "Voit ") as seller, and the Agency, as buyer, (the "Voit/Agency Purchase Agreement') with respect to that approximately sixteen and fifteen hundredths (16.15) acre parcel of real property in the City of Anaheim, California (the "City ") commonly described as 516 East Santa Ana Street (the "Kwikset Site "); and WHEREAS, as permitted under the Community Redevelopment Law, the Agency desires to redevelop the Kwikset Site, together with those properties generally located on the east side of Atchison between Santa Ana and the abandoned Water Street which the Agency or a third party developer may acquire (the "Atchison Third Party Properties "), as an integrated affordable housing project consisting of multi - family rental and single family for -sale developments (the "Kwikset Residential Project'); and WHEREAS, the Agency has determined that it is necessary that the Agency provide for the environmental cleanup of the Kwikset Site in order to convey the Kwikset Site to a developer or developers for subsequent development of the Kwikset Residential Project (the "Kwikset Site Conveyance "); and WHEREAS, in connection with the Kwikset Residential Project, the Agency has previously adopted a resolution authorizing the use of the Polanco Redevelopment Act (California Health and Safety Code Section 33459, et seq.) to assist in the environmental cleanup, reuse and redevelopment of the Kwikset Site; and WHEREAS, Section 33601 of the Community Redevelopment Law permits an agency to borrow money or accept financial assistance from the federal government for any redevelopment project within its area of operation and comply with any conditions of such loan or grant; and WHEREAS, the Agency and the Environmental Protection Agency (the "EPA ") have entered into that certain Brownfields Cleanup Revolving Loan Fund Cooperative Agreement (the ` BCRLF Cooperative Agreement ") pursuant to which the Agency will receive certain funds (the "EPA Funds ") in order to provide for the environmental cleanup of various properties in the City of Anaheim (the "Contaminated Properties "); and WHEREAS, under the BCRLF Cooperative Agreement, the EPA Funds will be provided to the Agency as needed to meet specific expenses incurred by the Agency for the environmental cleanup of the Contaminated Properties; and WHEREAS, as required under the BCRLF Cooperative Agreement, the Agency has established a revolving fund (the "Agency's Brownfields Cleanup Revolving Loan Fund ") to be capitalized initially by the deposit of the EPA Funds; and WHEREAS, the Agency intends to utilize a portion of the EPA Funds in the first instance to assist with the environmental cleanup of the Kwikset Site and thereafter utilize a portion of the proceeds received by the Agency in connection with the Kwikset Site Conveyance or any other legally available funds to replenish the Agency's Brownfields Cleanup Revolving Loan Fund; and WHEREAS, the Agency intends to utilize the remaining EPA Funds, together with the funds in the Agency's Brownfields Cleanup Revolving Loan Fund, to fund the environmental cleanup of additional Contaminated Properties as authorized under the BCRLF Cooperative Agreement. NOW, THEREFORE, THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Appropriation of Funds for the Kwikset Site. The Governing Board hereby authorizes and directs the Executive Director to appropriate EPA Funds available or to be made available by the EPA pursuant to the BCRLF Cooperative Agreement for the purpose of providing for the environmental cleanup of the Kwikset Site. Section 2. Appropriation of Funds for Additional Contaminated Properties. The Governing Board further authorizes and directs the Executive Director to appropriate, from time to time, additional EPA Funds available or to be made available by the EPA pursuant to the BCRLF Cooperative Agreement, together with funds deposited within the Agency's Brownfields Revolving Loan Fund pursuant to Section 3 hereof, for the purpose of providing for the environmental cleanup of the additional Contaminated Properties as authorized under the BCRLF Cooperative Agreement. 2 Section 3. Repayment of Appropriated Funds; Replenishment of Agency's Brownfields Cleanup Revolving Loan Fund. The Agency hereby authorizes and directs the Executive Director to deposit funds in an amount equal to the funds appropriated pursuant to Section 1 hereof and any interest thereon consistent with the terms and conditions set forth in the BCRLF Cooperative Agreement (the " Kwikset Revolving Loan Fund Repayment Amount ") into the Agency's Brownfields Cleanup Revolving Loan Fund within five (5) years from the date of this Resolution from the proceeds received by the Agency in connection with the Kwikset Site Conveyance or any funds legally available. The Agency hereby further authorizes and directs the Executive Director to deposit, from time to time, funds in an amount equal to the funds appropriated pursuant to Section 2 hereof and any interest thereon consistent with the terms and conditions set forth in the BCRLF Cooperative Agreement (each, an "Additional Contaminated Properties Revolving Loan Fund Repayment Amount ") into the Agency's Brownfields Cleanup Revolving Loan Fund from the proceeds received by the Agency in connection with the conveyance of each of the additional Contaminated Properties (or any funds legally available at the time of the each such conveyance); provided that, in the event that any such conveyance does not occur within five (5) years from the date the applicable appropriation is made, funds in an amount equal to the applicable Additional Contaminated Properties Revolving Loan Fund Repayment Amount shall be deposited into the Agency's Brownfields Cleanup Revolving Loan Fund from any legally available Agency funds. The repayment obligations of the Agency hereunder do not constitute a pledge of any particular funds and are and shall be subordinate to any pledge or other commitment of the Agency made in connection with any Agency bonds, now or hereafter issued. Section 4. EPA Conditions and Requirements. As part of the use of the EPA Funds, the Agency hereby incorporates by reference the requirements and conditions of the EPA as contained in the BCRLF Cooperative Agreement, including the requirement that the cleanup be completed in compliance with CERCLA and consistent with the NCP as well as in accordance with the applicable Federal cross cutting requirements. The Agency also agrees to ensure that its contractors use the EPA Funds and the funds in the Agency's Brownfields Cleanup Revolving Loan Fund in compliance with the BCRLF Cooperative Agreement. THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY THIS EIGHTH (8TH) DAY OF FEBRUARY, 2005, BY THE FOLLOWING ROLE CALL VOTE: AYES: Chairman Pringle, Agency rlembers Sidhu, Galloway, Chavez, Hernandez NOES: None ABSTAIN: None ABSENT: None CHAIRMAN ATTEST: AGENCY CRETARY 56938.1 S