PIC1997/01/28ANAHEIM CIVIC CENTER, ANAHEIM PUBLIC IMPROVEMENT CORPORATION
JANUARY 28, 1997
PRESENT:PRESIDENT: Tom Daly
PRESENT:BOARD MEMBERS: Shirley McCracken, Tom Tait, Bob Zemel, Lou Lopez
ABSENT:BOARD MEMBERS: None
PRESENT:CITY MANAGER: James Ruth
CITY ATTORNEY: Jack White
SECRETARY: Leonora N. Sohl
A complete copy of the agenda for the meeting of the Anaheim public Improvement Corporation was
posted at 2:40 p.m. on January 24, 1996 at the Civic Center Kiosk, containing all items as shown herein.
President Daly called the regular meeting of the Anaheim Public Improvement Corporation to order at
5:28 p.m.
ADDITIONS TO THE AGENDA:
There were no additions to agenda items.
ITEMS OF PUBLIC INTEREST:
No items of public interest were addressed.
PUBLIC COMMENTS - AGENDA ITEMS:
There were no public comments on Public Improvement
Corporation Agenda items.
CONSENT CALENDAR ITEMS 1 - 2:
On motion by President Daly, seconded by Board Member Lopez
the following actions were authorized in accordance with the reports and recommendations furnished
each Corporation Member and as listed on the Consent Calendar Agenda.
1.137: RESOLUTION NO. APIC97-1: A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE ANAHEIM PUBLIC IMPROVEMENT CORPORATION APPROVING, AUTHORIZING AND
DIRECTING EXECUTION OF AN AMENDMENT TO A LEASE AGREEMENT AND
AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO. (1997
LEASE REVENUE BONDS IN CONNECTION WITH THE PROPOSED FINANCING OF THE
ANAHEIM RESORT PROJECT, DISNEYLAND RESORT PROJECT, AND CONVENTION
CENTER EXPANSION PROJECT.)
APPROVING THE FORM OF A MEMORANDUM OF AMENDMENT NO. 2 TO LEASE
AGREEMENT; AND AUTHORIZING ANY ADDITIONAL ACTIONS NECESSARY TO CARRY
OUT THE TRANSACTIONS DESCRIBED IN SAID AMENDMENT NO. 2.
Submitted was report dated January 14, 1997 to the Anaheim Public Improvement Corporation (APIC)
from the City Attorney/General Counsel.
President Daly asked for a brief staff presentation on this item.
City Attorney, Jack White. He briefed the staff report noting that next month, the City anticipates selling
approximately $500 million worth of bonds to support expansion of the Convention Center, the
infrastructure improvements for the Anaheim Resort Project, and the public parking structure on West
Street. In conjunction with that, the City leases property to the APIC which leases it back to the City
under a prior bond financing in 1993. This year in conjunction with the new project, the facility is being
leased to the Anaheim Public Financing Authority who, in turn, is subleasing it back to the City.
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In connection with the new financing, the underwriter for the bonds representing the potential bond
holders has asked for an amendment to the lease agreement approved by the City Council a couple of
months ago that would protect the bond holders in the event there is a default under the 1993 bond
transaction. It would benefit the bond holders under the new transaction from being wiped out by a
default under a prior bond. Under the law, if the primary lesee defaults in his payments to the landlord
and he has subleased the property to someone else, the landlord can come in and take the property back
and terminate all subleases. This would give protection to the new bondholders. It is in the nature of a
technical correction to the document. It does not change the financing at all but assures the bondholders
of that protection.
President Daly. He feels obliged to make clear to the public that although this deals with the bonds for
the Disney Expansion Project and the Convention Center, in and of itself it is not the actual approval of
the bond issue but simply an amendment to a lease agreement stemming from a previous bond issue;
City Attorney White confirmed that was correct.
2.177: Approving minutes of the Anaheim Public Improvement Corporation meeting held
September 24, 1996.
Board Member McCracken abstained on this item.
End of Consent Calendar. MOTIONS CARRIED. Resolution APIC97-1 was adopted, all ayes.
ADJOURNMENT: President Daly moved to adjourn, Board Member Lopez seconded the motion.
MOTION CARRIED. (5:34 p.m.).
LEONORA N. SOHL
SECRETARY
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