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