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ARA-2007-001RESOLUTION NO. ARA2007-001 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY (1) APPROVING THAT CERTAIN DISPOSITION AND DEVELOPMENT AGREEMENT (FUTURE PROPERTIES SHOPPING CENTER) WITH FUTURE PROPERTIES MANAGEMENT, LLC, (II) APPROVING THE BASIC CONCEPT DRAWINGS, AND (III) MAHING 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 those two (2) parcels of real property consisting of approximately seventy three-hundredths (.73) acres generally located at 2157 and 2161 La Palma Avenue in the City of Anaheim (the "Agency's Parcels"); and WHEREAS, the Future Properties Management, LLC (the "Developer") owns that parcel of real property consisting of approximately ninety four-hundredths (.94) acres (the "Developer's Parcel"), together with the buildings located thereon (the "Existing Shopping Center"), generally located adjacent to the Agency's Parcels at 1112 Brookhurst Street in the City of Anaheim; and WHEREAS, the Agency's Parcels and the Developer Parcel (collectively, the "Site") have been previously developed for urban use; and WHEREAS, the Agency and Developer entered into that certain Exclusive Negotiation Agreement dated as of September 1, 2006 (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 the Agency's Parcels, the rehabilitation of the Existing Shopping Center and the development of certain improvements by entering into that certain Disposition and Development Agreement (Future Properties Shopping Center) dated as of March 1, 2007 (the "DDA"); and WHEREAS, the DDA provides, among other things, that, upon satisfaction of various conditions including obtaining all requisite entitlements, the Developer will undertake the rehabilitation of the Existing Shopping Center and the construction of improvements related thereto, including certain new structures (collectively, the "Development") upon the disposition of the Agency's Parcels to the Developer; 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 property for redevelopment pursuant to the Redevelopment Plan upon a determination by the City Council (i) that the sale 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 sale 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 sale 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 Development on such previously blighted real property; and WHEREAS, the consideration for the sale of the Agency's Parcels payable under the DDA is not less than the fair market value of the Agency's Parcel, as determined 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 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 Development; 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 and 33433, and the proposed DDA, and a summary report meeting the requirements of Health and Safety Code Sections 33433 was available for public inspection prior to the Joint Public Hearing consistent with the requirements of Health and Safety Code Section 33433; and WHEREAS, on March 20, 2007, 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 2 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 th'e 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 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 Development falls within the scope of the activities addressed in the General Plan Update EIR and the General Plan Update EIR adequately describes the Development for purposes of CEQA because (i) the General Plan Update EIR is a Program EIR, (ii) the Development is consistent with the General Plan, (iii) the Development 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 Development; and WHEREAS, the Development 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 Development 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 further CEQA analysis; and WHEREAS, the Governing Board of the Agency 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. NOW, THEREFORE, THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Environmental Assessment. The Agency hereby certifies that it has reviewed the Project and finds that the impacts associated with the Development have been previously covered in the General Plan Update EIR. Section 2. Consideration for Sale. The Agency hereby finds and determines that, based upon substantial evidence provided in the record before it, the consideration for the Agency's sale of the Agency's Parcels pursuant to the terms and conditions of the DDA is not less than the fair market value of the Agency's Parcels. Section 3. Elimination of Blight. The Agency hereby finds and determines that the sale of the Agency's Parcels 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 4. Consistency with Implementation Plan. The Agency hereby finds and determines that the DDA is consistent with the provisions and goals of the Implementation Plan and the Redevelopment Plan. Section 5. Approval of DDA. The Agency hereby approves the DDA and authorizes the Executive Director to execute and administer the DDA on behalf of the Agency. A copy of the DDA when executed shall be placed on file in the office of the Agency Secretary. Section 6. Approval of Basic Concept Drawings. The Agency hereby approves the Basic Concept Drawings for the Development. Section 7. Certification of Resolution. The Agency Secretary shall certify to the adoption of this Resolution. 4 THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY THIS TWENTIETH (20TH) DAY OF MARCH, 2007 BY THE FOLLOWING ROLL CALL VOTE: AYES: Chairman Pringle, Agency Members Hernandez,Sidhu, Galloway Kring NOES: NONE ABSTAIN: NONE ABSENT: NONE CHAIRMAN ATTE GENCY SECRET' R 64888.1 5