RES-2006-250RESOLUTION NO. 2006 -250
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
APPROVING THAT CERTAIN DISPOSITION AND DEVELOPMENT
AGREEMENT (290 SOUTH ANAHEIM BOULEVARD) WITH CIM URBAN
REAL ESTATE FUND, LP AND MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH
WHEREAS, the Anaheim Redevelopment Agency (the "Agency ") is engaged in
implementation of the Redevelopment Plan for Anaheim's Merged Redevelopment Project
(the "Redevelopment Project "); and
WHEREAS, the Agency owns that approximately one and one -tenth (1.1) acre parcel of real
property (the "Property"), together with the building located thereon (the "Existing
Building "), generally located at 290 South Anaheim Boulevard in Downtown Anaheim;
WHEREAS, the Property and the Existing Building (collectively, the "Site ") have been
previously developed for urban use; and
WHEREAS, the Agency and CIM Urban Real Estate Fund, LP (the "Developer ") entered
into that certain Exclusive Negotiation Agreement dated as of July 1, 2005 (the ` ENA "),
pursuant to which the Agency and the Developer (jointly, the "Parties ") negotiated with
respect to the redevelopment of the Site; and
WHEREAS, the Parties now wish to document the consummation of their negotiations under
the ENA and state the terms of the disposition of a leasehold interest in the Site, the
rehabilitation of the Existing Building and the development of certain improvements by
entering into that certain Disposition and Development Agreement (290 South Anaheim
Boulevard) dated as of December 12, 2006 (the "DDA "); and
WHEREAS, the DDA provides, among other things, that the Developer (i) will undertake the
rehabilitation of the Existing Building and the construction of improvements related thereto
(collectively, the "Rehabilitation ") upon the disposition of the Site to the Developer, and (ii)
may, upon satisfaction of various conditions including obtaining all requisite entitlements,
also develop on the Site a new structure (the "New Building ") and construct improvements
related thereto (collectively, the "New Construction "); and
WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law (California
Health and Safety Code Section 33000, et seq.), the Agency is authorized, with the approval
of the City Council after a duly noticed public hearing, to sell the Site for redevelopment
pursuant to the Redevelopment Plan upon a determination by the City Council (i) that the
lease of the property will either assist in the elimination of blight or provide affordable
housing for low and moderate income persons, (ii) that the consideration for such lease is not
less than either the fair market value or fair reuse value of the property in accordance with the
covenants and conditions governing the lease and the development costs required thereof, and
(iii) that the lease is consistent with the Implementation Plan which has been adopted by the
Agency for the Redevelopment Project; and
WHEREAS, the City Council has previously determined, in its adoption of the ordinance
approving the Redevelopment Project, that the Site is blighted, including substandard
structures, serious grade problems, structural deterioration and poor maintenance; and
WHEREAS, the DDA would provide for the elimination of such blighting conditions by
providing for the Rehabilitation on such previously blighted real property; and
WHEREAS, the consideration for the lease of the Site payable under the DDA is not less
than the fair reuse value of the Site, at the use and with the covenants, conditions precedent,
conditions subsequent and development costs authorized by the DDA, as determined by the
reuse analysis of the DDA which has been performed by the Agency's financial consultants;
and
WHEREAS, the Agency has adopted an Implementation Plan for the Redevelopment Project
pursuant to Health and Safety Code Section 33490, which identifies goals and objectives
including eliminating substandard structures and eliminating physical and economic
deficiencies; and
WHEREAS, the Implementation Plan sets forth a program of actions which include
improving public facilities and infrastructure, upgrading and expanding commercial
programs, and expanding retail programs; and
WHEREAS, the DDA will assist the Agency in meeting the goals and objectives set forth in
the Implementation Plan and the program of actions by providing for the construction of the
Improvements; and
WHEREAS, a joint public hearing of the Agency and City Council on the proposed DDA
(the "Public Hearing ") was duly noticed in accordance with the requirements of Health and
Safety Code Sections 33431, 33433 and 33679, and the proposed DDA, and a summary report
meeting the requirements of Health and Safety Code Sections 33433 and 33679, was
available for public inspection prior to the Joint Public Hearing consistent with the
requirements of Health and Safety Code Sections 33433 and 33679; and
WHEREAS, on December 12, 2006, the Agency and City Council held the Joint Public
Hearing on the proposed 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 DDA
have been taken in an appropriate and timely manner; and
WHEREAS, pursuant to the California Environmental Quality Act ( "CEQA ") and the CEQA
Implementing Guidelines (14 California Code of Regulations Section 15000 et seq.) (the
"CEQA Guidelines "), the City of Anaheim (the "City") adopted and certified Anaheim
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General Plan and Zoning Code Update Environmental Impact Report No. 330 (the "General
Plan Update EIR ") in connection with the City's General Plan update in 2004 (as updated, the
"General Plan "); and
WHEREAS, the General Plan Update EIR is a Program EIR under CEQA and the CEQA
Guidelines, addressing the environmental impacts from the City's ultimate build -out,
considering maximum densities and the effects thereof, and establishing a mitigation
monitoring program which requires, among other things, subsequent focused studies and the
implementation of mitigation measures where required; and
WHEREAS, the Agency has reviewed and determined that the Rehabilitation falls within the
scope of the activities addressed in the General Plan Update EIR and the General Plan Update
EIR adequately describes the Rehabilitation for purposes of CEQA because (i) the General
Plan Update EIR is a Program EIR, (ii) the Rehabilitation is consistent with the General Plan,
(iii) the Rehabilitation presents no new environmental effects which could occur that were not
examined in the General Plan Update EIR, and (iv) there is no new information to suggest
that new mitigation measures would be required of the Rehabilitation; and
WHEREAS, the Rehabilitation is within the scope of one or more of the projects analyzed
under the foregoing environmental documents, and (a) approval of the DDA does not
constitute a substantial change in those previously analyzed projects that will require major
revision of the CEQA documentation prepared therefor due to the involvement of new
significant environmental effects, or a substantial increase in the severity of previously
identified significant effects; (b) approval of the DDA does not constitute a change in the
circumstances under which those previously analyzed projects are to be undertaken which
will require major revisions of the previous CEQA documentation due to the involvement of
new significant environmental effects or a substantial increase in the severity of previously
identified significant effects; (c) there is no new information of substantial importance which
was not and could not have been known at the time the previous CEQA documents were
certified as complete or adopted that shows the previously analyzed projects will have any
significant effects not discussed in such previous CEQA documents, or will have substantially
more severe effects than were discussed in the previous CEQA documents; or that mitigation
measures or alternatives which would substantially reduce one or more significant effects
thereof, which were previously found infeasible, would in fact now be feasible; and (d) there
are no mitigation measures or alternatives different from those previously considered that
would substantially reduce one or more significant effects of the projects, which the
proponents refuse to adopt; and
WHEREAS, since the New Construction will require the processing and approval of land use
entitlements and permits, such land use entitlements will, to the extent necessary under
CEQA and the CEQA Guidelines, be subject to fizrther CEQA analysis; and
WHEREAS, the City Council has duly considered all terms and conditions of the proposed
DDA and believes that the redevelopment of the Site 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.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES
HEREBY RESOLVE AS FOLLOWS:
Section 1. Consideration for Lease. The City Council hereby finds and determines that,
based upon substantial evidence provided in the record before it, the consideration for the
Agency's lease of the Site pursuant to the terms and conditions of the DDA is not less than
the fair reuse value of the Site, at the use and with the covenants, conditions precedent,
conditions subsequent and development costs authorized by the DDA.
Section 2. Elimination of Blight. The City Council hereby fords and determines that the
lease of the Site pursuant to the DDA will eliminate blight within the Redevelopment Project
by providing for the proper reuse and redevelopment of a portion of the Redevelopment
Project which was declared blighted for the reasons described above.
Section 3. Consistency with Implementation Plan. The City Council hereby finds and
determines that the DDA is consistent with the provisions and goals of the lmplementation
Plan and the Redevelopment Plan.
Section 4. Approval of DDA. The City Council hereby approves the DDA substantially
in the form submitted to the City Council, and authorizes the Agency to execute the DDA. A
copy of the DDA when executed shall be placed on file in the office of the City Clerk.
Section 5. Certification of Resolution. The City Clerk shall certify to the adoption of
this Resolution.
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THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY
THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS TWELFTH (12TH) DAY
OF DECEMBER, 2006, BY THE FOLLOWING ROLL CALL VOTE:
AYES: Mayor Pringle, Council Members Sidhu, Hernandez, Galloway, Kring
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
VA
63846.1