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ARA-2009/12/08ANAHEIM REDEVELOPMENT AGENCY REGULAR MEETING OF DECEMBER 8, 2009 The Anaheim Redevelopment Agency met in regular session in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. Present: Chairman Curt Pringle, Agency Members: Lorri Galloway, Bob Hernandez, Lucille Kring, and Harry Sidhu Staff Present: City Manager Tom Wood, City Attorney Cristina Talley, and Secretary Linda Andal A copy of the agenda was posted on December 4, 2009 on the kiosk outside City Hall. At 5:15 P.M., Chairman Pringle called the meeting of the Anaheim Redevelopment Agency to order for a joint public comment session with the Anaheim City Council. ADDITIONS /DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No comments offered during oral communications related to the Redevelopment Agency agenda. CONSENT CALENDAR: Agency Member Hernandez moved to approve the consent calendar as presented, seconded by Agency Member Kring. Roll Call Vote: Ayes 5: Chairman Pringle and Agency Members: Galloway, Hernandez, Kring and Sidhu. Noes 0. Motion Carried. 1. Approve Amendment No. 1 to Professional Service Agreement with Fuscoe 2750.A.1 Engineering, Inc., increasing the contract amount by $100,000, for civil engineering services on Agency projects. 2. Approve minutes of the Redevelopment Agency meetings of October 27, 2009 and November 17, 2009. PUBLIC HEARING: 3. This is a public hearing to consider the adoption of the 2010 -2014 Implementation ARA -161 Plan for the Anaheim Merged Redevelopment Project Area. RESOLUTION NO. ARA 2009 -010 RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY adopting the 2010 -2014 Implementation Plan for the Anaheim Merged Redevelopment Project Area in accordance with Section 33490 of the California Community Redevelopment Law and making certain findings in connection therewith. Elisa Stipkovich, Community Development Executive Director, explained Community Redevelopment law required redevelopment agencies to adopt a five -year Implementation Plan that summarized the Agency's accomplishments over the last five years and projected estimated revenues and expenditures that could be available for potential projects and Anaheim Redevelopment Agency Minutes of December 8, 2009 Page 2 of 3 programs for the next five years. The proposed 2010 -2014 Implementation Plan, she remarked, projected about $275.7 million in revenues and about the same in expenditures over this five -year period and assumed the payment of $19.3 million would be made to the State of California as required through recent budget legislation to help shore up California's budget crisis. She added there was pending litigation challenging California's ability to mandate these payments and if unsuccessful, as of May 10, 2010, the Agency would have to make that payment to the State. She added approximately $8 million of this payment would come from a loan from the Housing Set Aside funds to be repaid within five years, an action that would impact future affordable housing projects. In December of 2004, Ms. Stipkovich stated the Agency had adopted its third Implementation Plan for the Anaheim Merged Project area covering the period of 2005 -2009. The last five years had been productive with the most significant accomplishment being the extension of 10 years for five of the seven sub project areas which allowed more funds to go to projects through an additional ten years of tax increment. She pointed out the downtown area had seen significant growth with CIM residential and commercial development and the Muzeo complex which also housed the Anaheim History Center, consisting of public and private investments totaling more than $100 million. The Agency also acquired 40 acres for the new Colony Park neighborhood and in West Anaheim, the Agency acquired 25 acres and was preparing the site for the Westgate Shopping Center to be anchored by a new Lowe's store. She highlighted efforts made in meeting affordable housing goals through the adoption of the Affordable Housing Strategic Plan in 2004, resulting in the completion of new housing opportunities for over 2,500 people. Additionally, the Agency created 434 home ownership units and funded 188 down payment assistance loans for first time homebuyers. She emphasized efforts made in strengthening the local economy by retaining and attracting businesses and jobs and pointed out that in the last five years, the Agency assisted with creating and /or retaining over 4,700 jobs. In West Anaheim, the Agency worked to prepare a vacant landfill site to develop a new shopping center that would create over 500 new jobs and also played a role in helping to position and market Anaheim's Canyon Business Center as a leading industrial hub in Orange County with the development of a new Kaiser Permanente Medical Center, estimated to bring 1,900 jobs to the Canyon area. Ms. Stipkovich commented that the proposed Five Year Plan included a similarly aggressive agenda that included the restoration and rehabilitation of the historic Packing House building for commercial reuse; development of a retail shopping center at the former Westgate landfill site; development of approximately 1,508 housing units, of which 863 would be affordable; completion of Colony Park Neighborhood to include a new artist- designed park and approximately 800 residential units; expansion of the Metrolink Train Station and completion of the Kaiser Hospital complex in the Canyon area. She ended her presentation emphasizing if pending litigation against the State of California was not successful, the Redevelopment budget for this fiscal year would reflect a State payment of $15,890,927. This payment, she stated, would be funded from approximately 50 percent Redevelopment Funds and 50 percent setaside funds (with the setaside funds being repaid over five years). Agency Member Galloway expressed pride at the effectiveness of Anaheim's Redevelopment Agency stating it was a model of success for other agencies nationwide. Anaheim Redevelopment Agency Minutes of December 8, 2009 Page 3 of 3 Agency Member Hernandez asked Ms. Stipkovich to fully explain the impacts of pending litigation against the State of California. Ms. Stipkovich remarked that the renewed Affordable Housing Strategic Plan contained two alternatives that would address the State's takeaway of redevelopment funds. If Anaheim did not have to make a payment to the State, about 1,500 units of affordable housing would be made and if the payment of approximately $8 million was made to the state, there would be about 860 units built, a loss of almost 700 units. Agency Member Hernandez expressed his distress over the State's raid on municipal funds and encouraged affordable housing advocates to contact legislators and voice their concern over these actions. Chairman Pringle opened the public hearing for comments. Caesar Covarrubias, Kennedy Commission, thanked staff and Council for their commitment to affordable housing and for encouraging additional investment in Anaheim by leveraging City resources. Over the last five years, he emphasized, the City captured over $110 million in tax credits to the City, a policy he hoped other cities would copy. Responding to Agency Member Hernandez comments, Mr. Covarrubias remarked various advocacy groups were working with agencies to find permanent solutions for the future to ensure funding raids at the local level did not reoccur. Mayor Pringle commented the Redevelopment Agencies Association of California had filed a lawsuit against the State when $1.2 billion had been shifted away from local agencies, inquiring if the Kennedy Commission and like groups would consider filing a "friend of the court's brief" in support of the Association's actions. Mr. Covarrubias responded his organization was working closely with the League of California Cities to explore options as to how to support that action, whether it was through an amicus brief of other mechanisms. With no other comments offered, Chairman Pringle closed the hearing. Agency Member Kring moved to approve RESOLUTION NO. ARA 2009 -010 OF THE ANAHEIM REDEVELOPMENT AGENCY adopting the 2010 -2014 Implementation Plan for the Anaheim Merged Redevelopment Project Area in accordance with Section 33490 of the California Community Redevelopment Law, seconded by Agency Member Hernandez. Roll Call Vote: Ayes 5: Chairman Pringle and Agency Members: Galloway, Hernandez, Kring and Sidhu. Noes 0. Motion Carried. ADJOURNMENT: With no other business to conduct, Chairman Pringle adjourned the meeting at 5:44 P.M. Res? Ily submitt; d, Linda N. Andal, CMC Secretary, Anaheim Redevelopment Agency