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ARA-2006-012RESOLUTION NO. ARA-2006 -012 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING A SUPPLEMENTAL DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND CLEAN CITY, INC. REGARDING CERTAIN PROPERTY AT THE SOUTHWEST CORNER OF LINCOLN AVENUE AND WEST STREET AND MAKING CERTAIN ENVIRONMENTAL AND OTHER FINDINGS IN CONNECTION THEREWITH WHEREAS, the Anaheim Redevelopment Agency (the "Agency ") is engaged in implementation of the "Redevelopment Plan" for the Downtown Area of the Merged Redevelopment Project (the "Redevelopment Project "); and WHEREAS, in order to implement the Redevelopment Plan, the Agency entered into that certain Amended and Restated Disposition and Development Agreement dated as of July 1, 2005 (the "Amended and Restated DDA "), with Clean City, Inc. (the "Developer ") pursuant to which: (a) Agency would sell to the Developer that certain real property and improvements consisting of one (1) commercial/ residential structure commonly referred to as the Five Points Building (the "Structure "), such real property and improvements commonly known as 1108 — 1120 West Lincoln Avenue (collectively, the "Property "); (b) the Structure would be substantially rehabilitated in accordance with the Scope of Development and Schedule of Performance attached to the Amended and Restated DDA; and (c) upon completion, the Structure and the legal parcel on which it is located would be operated and maintained as a mixed -use commercial/residential project for the period of the covenants set forth therein (the "Project "); and WHEREAS, in order to implement the Redevelopment Plan, the Agency proposes to enter into a certain Supplemental Disposition and Development Agreement dated as of November 1, 2006 (the "Supplemental DDA "), with the Developer pursuant to which: (a) Agency would sell to the Developer that certain real property and improvements commonly known as 1207 and 1209 (collectively, the "Supplemental Agency Parcels "); (b) the Supplemental Agency Parcels, along with the Property, would be substantially rehabilitated in accordance with the Scope of Development and Schedule of Performance attached to the Amended and Restated DDA; and (c) upon completion, the Structure and the legal parcel on which it is located would be operated and maintained as the Project; and WHEREAS, in its current condition, the Supplemental Agency Parcels are a blighting influence on the Redevelopment Project area; and WHEREAS, the Project will remove the blighting influence described above and will contribute to the historic character of the Anaheim Colony Historic District and provide housing within the community; and WHEREAS, in connection with the Supplemental DDA, Agency has prepared, reviewed and considered a summary report setting forth: (a) the cost of the Supplemental DDA to the Agency; and (b) the estimated value of the interests to be conveyed to the Developer, determined at the highest and best uses permitted under the Redevelopment Plan; and (c) the estimated value of the interests to be conveyed, determined at the uses and with the conditions, covenants and development costs required by the sale; and (d) the purchase price for the Supplemental Agency Parcels; and WHEREAS, the Supplemental DDA contains all of the terms, covenants, conditions, restrictions, obligations and provisions required by state and local law; and WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000 etseq.) ( " CEQA "), and the CEQA Implementing Guidelines (14 California Code of Regulations Sections 15000 et seq.) (the "Guidelines "), the Agency has reviewed the Project and determined that the Project qualifies as a Class 31 Categorical Exemption under historical resource restoration/rehabilitation. Therefore, pursuant to CEQA Section 21084 and CEQA Guidelines Section 15331, the Project qualifies as a Categorical Exemption and no further analysis is required; and WHEREAS, a joint public hearing of the Agency and City Council on the proposed Supplemental DDA (the "Public Hearing ") was duly noticed in accordance with the requirements of Health and Safety Code Sections 33431 and 33433, and the proposed Supplemental DDA and a summary report meeting the requirements of Health and Safety Code Section 33433, were available for public inspection prior to the Joint Public Hearing consistent with the requirements of Health and Safety Code Section 33433; and WHEREAS, on November 28, 2006, the Agency and City Council held the Joint Public Hearing on the proposed Supplemental DDA, at which time the Agency reviewed and evaluated all of the information, testimony, and evidence presented during the joint public hearing; and WHEREAS, all actions required by all applicable law with respect to the proposed Supplemental DDA have been taken in an appropriate and timely manner; and WHEREAS, the Governing Board has duly considered all terms and conditions of the proposed Supplemental DDA and believes that the redevelopment of the Supplemental Agency Parcels pursuant thereto is in the best interests of the City of Anaheim and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. NOW, THEREFORE, THE GOVERNING BOARD OF THE ANAHEIM 2 REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Consideration for Sale. The Governing Board hereby finds and determines that, based upon substantial evidence provided in the record before it, the consideration for the Agency's sale of the Supplemental Agency Parcels pursuant to the terms and conditions of the Supplemental DDA is not less than the fair market value of the Supplemental Agency Parcels. Section 2. Elimination of Blight. The Governing Board hereby finds and determines that the sale of the Supplemental Agency Parcels pursuant to the Supplemental DDA will eliminate blight within the Redevelopment Project by providing for the proper reuse and redevelopment of the Supplemental Agency Parcels and housing within the community. Section 3. Consistency with Implementation Plan. The Governing Board hereby finds and determines that the Supplemental DDA is consistent with the provisions and goals of the Implementation Plan and the Redevelopment Plan. Section 4. Environmental Impacts. The Governing Board hereby certifies that it has reviewed the Project and the Supplemental DDA , and finds that, pursuant to CEQA Guidelines Section 15331, the Project qualifies as a Class 31 Historical Resource Restoration/Rehabilitation Categorical Exemption, and therefore no additional environmental documentation under CEQA is required. Section 5. Approval of Supplemental DDA. The Governing Board hereby approves the Supplemental DDA, and authorizes the Executive Director of the Agency to execute the Supplemental DDA. A copy of the Supplemental DDA when executed shall be placed on file in the office of the Agency Secretary. Section 6. Certification of Resolution. The Agency Secretary shall certify to the adoption of this Resolution. THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY THIS TWENTY - EIGHTH (28TH) DAY OF NOVEMBER, 2006, BY THE FOLLOWING ROLL CALL VOTE: AYES Chaiman Pringle, Agency Members Sidhu, Hernandez, Galloway, Chavez NOES NONE ABSTAIN NONE ABSENT: NONE - 1�& CHAIRMAN N J 63833.1 4