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RA1980/07/0180 -52 ANAHEIM REDEVELOPMENT AGENCY JULY 1, 1980, 1:00 P.M. Council Chamber Anaheim City Hall PRESENT: AGENCY MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour ABSENT: AGENCY MEMBERS: None PRESENT: CITY MANAGER: William 0. Talley CITY ATTORNEY: William P.-Hopkins SECRETARY: Linda D. Roberts EXECUTIVE DIRECTOR: Norman J. Priest Chairman Seymour called the regular meeting of the Anaheim Redevelopment Agency to order at 1:50 P.M. MINUTES On motion by Mrs. Kaywood, seconded by Mr. Overholt, minutes of the Anaheim Redevelopment Agency regular meeting held June 17, 1980, were approved. Agency Member Seymour abstained from voting. MOTION CARRIED. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of $50,996.69, in accordance with the 1979 -80 Budget, were approved. 161.128: FINANCIAL STATEMENTS PERIOD ENDING MAY 31, 1980 On motion by Mr. Roth, seconded by Mr. Bay, Redevelopment Agency Financial State- ments for Redevelopment Project Alpha were ordered received and filed, as recommended by the Executive Director. MOTION CARRIED. 161.123: SECOND AMENDMENT TO AGREEMENT FOR PROJECT AREA COMMITTEE LEGAL SERVICES - RICKS AND RICKS In accordance with recommendations by the Executive Director, Mrs. Kaywood moved that second amendment to agreement with Ricks and Ricks for legal services for the Project Area Committee be approved, and execution thereof by the Chairman and Secretary be author- ized. Mr. Overholt seconded the motion. MOTION CARRIED. 161.158: RELOCATION CLAIMS AGAINST THE CITY No relocation claims �pend.ing over a ninety -day period were reported. 161.137 RESIDENTIAL REHABILITATION MORTGAGE REVENUE BONDS Executive Director Norman Priest reported on the proposed issuance of $40,000,000 in Residential Rehabilitation Mortgage Revenue Bonds as the appropriate financing tool to accomplish private rehabilitation of residential units in and near Project Alpha under the Neighborhood Preservation Plan, if the Agency so determines at some point in the future. He advised that the bonds would be secured by mortgage revenues as set forth under the Marks -Foran Residential Rehabilitation Act under the California Health and Safety Code. He gave a brief history of activities concerning the residential rehabilitation revenue program at the Federal level, and 61 noted the possibility that July 2, 1980, could be the cut -off date for the Agency to approve the issuance of such bonds. 80 -53 ANAHEIM REDEVELOPMENT AGENCY. JULY 1. 1980. 1:00 P.M. In response to questions by Mr. Seymour, Mr. Priest stated that proceeds from the sale of the bonds could be utilized for the purchase of loans generated by the private sector. Mr. Seymour asked whether the funds might also be utilized in the same way as a savings and loan or a bank for a combined activity for the purchase and rehabilitation of older homes in the Center City Area. Mr. John C. Fitzgerald, representing Merrill Lynch White Weld Capital Markets Group, financial consultants to the Agency, replied that the activity described by Mr. Seymour would be a very legitimate use of the funds from the bond issue. Mr. Seymour pointed out that the Agency has long been searching for such an investment to encourage this type of rehabilitation. The sale of the bonds would provide home ownership opportunities for families which have been precluded from owning a home due to the large down payments required, and also would give the advantage of bringing dwellings up to structural standards. The program would accomplish the objective of cementing the Agency's commitment to the community by enabling a recycling and regen- eration of the area,,rather than additional redevelopment projects in the residential area, and a new generation of citizens would be attracted to the area. He offered his personal commendation to the Executive Director and his staff for alerting the Agency to this opportunity and endorsed - the issuance of the bonds. Mr. Roth stressed the important aspect of the program that the revenue from the bonds would be paid for by the revenue they would generate, and would not be paid at the expense of the taxpayers, In reply to question by Mr. Bay, Mr. Fitzgerald reported that the indenture between the bond holder and the indenturer would spell out that any funds not loaned out would be used toward retiring outstanding bonds, and there would be no risk on behalf of the citizens or the tax- payers; all mortgages would be insured. Mr. Priest pointed out that the initial costs to administer the program would be derived from proceeds of the bond issue. It was his under- standing that costs of the overall administration of the program would be paid for by an additional service charge to each of the parties purchasing and rehabilitating the dwellings. Mrs. Kaywood offered Resolution No. ARA80 -21 for adoption, approving the issuance of bonds as recommended by the Executive Director. Refer to Resolution Book. RESOLUTION NO. ARA80 -21 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF $40,000,000 PRINCIPAL AMOUNT OF THE RESIDENTIAL REHABILITATION MORTGAGE REVENUE BONDS OF THE CITY OF ANAHEIM FOR THE PURPOSE OF MAKING AND PURCHASING MORTGAGE LOANS TO PROVIDE FOR RESIDENTIAL REHABILITATION, 80 -54 ANAHEIM REDEVELOPMENT AGENCY JULY 1 1980,1:00 P.M. Roll Call Vote: AYES: AGENCY MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None Chairman Seymour declared Resolution No. ARA80 -21 duly passed and adopted. EXECUTIVE SESSION Mr. Overholt moved to recess into Executive Session at the conclusion of the City Council meeting this date. Mrs. Kaywood seconded the motion. MOTION CARRIED. (2:08 P.M.) AFTER RECESS Chairman Seymour reconvened the Anaheim Redevelopment Agency meeting at 6 :22 P.M., all members.being present. 161.112: SETTLEMENT OF LITIGATION, SUPERIOR COURT CASE NO 27- 73 -11 In accordance with recommendations by the Executive Director and City Attorney, Mr. Seymour moved that the firm of Oliver, Stoever and Laskin, Special Counsel to the Agency, be authorized to make an all- inclusive settlement of the Olivos claims in the case of Anaheim Redevelopment Agency v.,Payne, Orange County Superior Court Case No. 27 73 -11, in the amount of $10,000 for alleged Loss of Goodwill. Mr. Overholt seconded the motion. MOTION CARRIED. ADJOURNMENT There being no further business to come before the Anaheim Redevelopment Agency, Mr. Roth moved to adjourn. Mr. Bay seconded the motion. MOTION CARRIED. ADJOURNED: 6 :24 P.M. LINDA D. ROBERTS, SECR RY