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RA1980/12/1680 -105 ANAHEIM REDEVELOPMENT AGENCY DECEMBER 16, 1980 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 REDEVELOPMENT MANAGER: Susan Schick Chairman Seymour called the regular meeting of the Anaheim Redevelopment Agency to order at 1:11 P.M. MINUTES Approval of minutes was deferred to the next regular meeting. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of $17,222.26, in accordance with the 1980 -81 Budget, were approved. 161.107: APPROVAL OF CONSTRUCTION DRAWINGS - WILLDAN OFFICE BUILDING: Executive Director Norman Priest introduced Mr. Dan Heil, one of the .-- principals of 198 Associates, developers, along with Mr. William Stookey. Mr. Heil stepped to the west wall of the Council Chambers where construc- tion plans and elevations were posted, and advised that the exterior design of the 45,000 square foot commercial office structure to be located at the northeast corner of Anaheim Boulevard and Broadway was planned to coordinate with that of the new Civic Center. Class A concrete construction would be utilized, and they were now in a position to commence construction. In reply to questions by Agency Member Bay, Mr. Heil reported that the roof - mounted air conditioning equipment would be totally enclosed and covered, with only small openings for exhaust,. and an opening in one set of panels to allow sunlight to reach the solar equipment. Such equipment would be visible only from any structure of greater height located south of the building. Screening was illustrated on a sketch taken to the Council Table by Mr. Jerry Stern, Architect, for review by Agency Members. Mrs. Kaywood moved that the construction drawings for the Willdan office building to be located at the northeast corner of Anaheim Boulevard and Broadway, be approved. Mr. Overholt seconded the motion. MOTION CARRIED. 161.157: WILLDAN OFFICE BUILDING - MORTGAGE REVENUE BOND FINANCING: Mr. Priest recommended that in accordance with Resolution No. ARA80 -16, adopted by the Agency on June 3, 1980, the Agency adopt rules and regulations relating to the Agency's mortgage- backed revenue bond financing program for commercial development as authorized under California Community Redevelopment Law Chapter 8, Section 33750 et seq.; 80 -106 ANAHEIM REDEVELOPMENT AGENCY DECEMBER 16 1980 1:00 P.M further, it was recommended that the Agency authorize the issuance, sale and delivery of a $2,800,000 Commercial Development Revenue Note for the purpose of funding a Construction and Take -out Loan for the 45,000 - square foot office building to be developed by 198 Associates (Heil and Stookey), located at the northeast corner of Anaheim Boulevard and Broadway. He advised it was essential that the Agency accomplish these actions at this time. Ms. Peg McElligott, representing Agency bond counsel, Wilson, Morton, Assaf and McElligott, addressed the Agency reporting that the tax exempt 102% interest rate had an expiration date just after January 1, 1981. The action recommended for the Agency this date would encompass a basic loan agreement between the Agency and 198 Associates, which would be basically a construction loan assigned to the lender. She explained that such temporary financing would be tied to the prime interest rate, and at the completion of the project, the temporary financing would be discontinued and the final loan would be' issued, The Agency would be connected only with the construction loan by agreement. The final financing was calculated for a 25-year loan, having a 72 -year original term, at the conclusion of which time the interest rate would be re negotiated, and she noted that the bonds were subject to call after the 72 -year period. Assignment by the Agency of the final loan would totally remove the Agency from the picture with the exception of a tax standpoint, and the project would.be the total security. She further explained that this method was a tool to allow financing to proceed, and her firm felt it completely appropriate for the Agency to NNOW take the recommended actions. In response to question by Chairman Seymour, Ms. McElligott stated there would be no liability to the City at the end of the 72 -year period if for any reason the loan were not re negotiated, or the bonds were called and no lender was available; there would be foreclosure on the building, with no liability to the original borrower. It would make no difference if the equity were not there. Mr. Bay requested clarification of whether the same opportunity had been extended to other developers in the Downtown Redevelopment Project Area. Mr. Priest reported that a resolution of intent for the identical pur- pose had been adopted by the Agency for Watt Commercial Properties (Towne Centre), however it had not yet reached fruition. In the near future, a similar recommended agreement would be presented involving the Freedmans of Hurst Jewelers. Others were currently under consid- eration. Mr. Seymour offered Resolution Nos. ARA80 -45 and 8OR -46 for adoption. Refer to Resolution Book. RESOLUTION NO. ARA80 -45 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY ADOPTING RULES AND REGULATIONS RELATING TO ITS COMMERCIAL NN DEVELOPMENT FINANCING PROGRAM.` 80 -107 ANAHEIM REDEVELOPMENT AGENCY DECEMBER 16 1980, 1:00 P.M. RESOLUTION NO. ARA80 -46 A RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF ANAHEIM REDEVELOPMENT AGENCY COMMERCIAL DEVELOPMENT REVENUE NOTE, FOR THE PURPOSE OF FUNDING A CONSTRUCTION AND TAKE -OUT LOAN TO ONE NINETY EIGHT ASSOCIATES. Roll Call Vote: AYES: AGENCY MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None Chairman Seymour declared Resolution Nos. ARA80 -45 and ARA80 -46 duly passed and adopted, 161,158: PUBLIC HEARING - SALE O ST RUCTURE, 122 -124 NORTH HELENA STREET: Public hearing was held to consider the proposed sale of structure located at 122 -124 North Helena Street. Mr. Priest announced that the proposed purchaser of the property had requested that consideration of the proposed agreement for purchase be withdrawn. Chairman Seymour asked if anyone was present who wished to address the Agency on the proposed sale; there being no response, he declared the public hearing closed. On motion by Mr. Seymour, seconded by Mr. Bay, request to withdraw the proposed agreement for purchase of subject property was accepted. MOTION CARRIED. ADJOURNMENT There being no further business to come before the Anaheim Redevelopment Agency, Mrs. Kaywood moved to adjourn. Mr. Roth seconded the motion. MOTION CARRIED, ADJOURNED: 1:35 P.M. _ "4-.� LINDA ROBERTS SE ETARY