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ARA-2010/09/14 ANAHEIM REDEVELOPMENT AGENCY REGULAR MEETING OF SEPTEMBER 14, 2010 The Anaheim Redevelopment Agency met in regular session in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard and called to order at 5:14 P.M. Present: Chairman Curt Pringle, Agency Members: Lorri Galloway, Bob Hernandez, and Lucille Kring. Excused Absence: Agency Member Harry Sidhu. Staff Present: City Manager Tom Wood, City Attorney Cristina Talley and Secretary Linda Andal. A copy of the agenda was posted on September 10, 2010 on the kiosk outside City Hall. ADDITIONS /DELETIONS TO THE AGENDA: Staff requested Item No. 6, the Joint Public Hearing regarding Anaheim Westgate Retail Center be withdrawn and scheduled at a future date. PUBLIC COMMENTS: No comments offered during the joint Council /Agency /Housing Authority public comment session related to the Redevelopment Agency agenda. CONSENT CALENDAR: Agency Member Galloway removed Item No. 3 from the consent calendar for further discussion and Chairman Pringle pulled Item No. 4. Agency Member Kring moved to approve the balance of the consent calendar as presented, seconded by Agency Member Galloway. Roll Call Vote: Ayes — 4: Chairman Pringle and Agency Members: Galloway, Hernandez, and Kring. Noes — 0. Absence — 1: Agency Member Sidhu. 1. Approve the rental of an affordable housing unit located at 541 S. Anaheim Blvd. in The Boulevard project for a period of one year, pursuant to Section 4.2.1 of the loan agreement. 2. Approve and authorize the Agency Executive Director to execute Amendment No. 1 to AGR 5701.1 the Negotiation Agreement with Hopkins Real Estate Group for an extension of the agreement to December 31, 2010 for the Canyon Lakes Lifestyle Project. 5. Approve minutes of the Redevelopment Agency meeting of August 24, 2010. END OF CONSENT: 3. Approve and authorize the Agency Executive Director to execute Amendment No. 1 to Property Operating Agreement between the Muzeo Foundation, Anaheim AGR 4839.1 Redevelopment Agency, and the City for the continued operation of the Muzeo (related to Council Item No. 18). Community Services Director Terry Lowe remarked that this item also related to Item, No. 18 on the City Council agenda this evening. Since October 2007, he indicated staff had been working in a collaborative manner with the Muzeo Foundation and since that time, over 40,000 visitors had annually enjoyed the world class exhibits at the Muzeo. Anaheim Redevelopment Agency Minutes of September 14, 2010 Page 2 of 3 He explained, the operating agreement was now ending and staff recommended extension of that agreement for five years. Up to this point, he remarked, the Muzeo had access to a line of credit of up to $1 million and staff was now proposing that line of credit be reduced for the first year of this agreement to $500,000 and for the subsequent four years extension, it be reduced to $200,000 per year. As a further incentive and to recognize the City's role in supporting the good work of The Muzeo, staff suggested that if the Muzeo Foundation was successful in raising an equal amount to the line of credit for each subsequent year, that line of credit would be converted to a grant which would never exceed the cap permitted for each year. Agency Member Galloway questioned the annual budget amount. Peter Comiskey, Muzeo Executive Director, responded it was approximately $1.4 million. Agency Member Galloway added the Muzeo was an important addition to Anaheim's cultural programs and services offered to residents and visitors and she would support this contract extension. Chairman Pringle commended Council for supporting the formation of The Muzeo and the Foundation board and Muzeo staff for their very successful exhibits and also for their private sector fund - raising efforts. He remarked the original Carnegie building had been operating as a museum for many years at a cost of approximately $200,000 a year to the City to maintain and operate. He stated that the continued contribution to the Muzeo reflected a similar support and would help the non - profit entity to grow. He added that the successful Frog's Exhibit ended today and on October 9 the opening of the Divine Reflections exhibit would take place, a remarkable collection of Russian art and artifacts. He also indicated the Bank of America had lent their extraordinary collection of Mexican American arts which would be on display through the fall and encouraged the community to visit. Agency Member Galloway moved to approve Item No. 3, seconded by Agency Member Kring. Roll Call Vote: Ayes — 4: Chairman Pringle and Agency Members: Galloway, Hernandez and Kring. Noes — 0. Absence — 1: Agency Member Sidhu. 4. RESOLUTION NO. ARA 2010 -005 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY authorizing the issuance of not -to- exceed $6,573,000 principal amount of tax allocation bonds on certain terms and conditions, approving a continuing disclosure certificate, approving the form and distribution of a Preliminary R100 Official Statement and financing documents, authorizing certain other official actions and providing for other matters relating thereto. Community Development Director Elisa Stipkovich reported, if approved by the Agency, this item would authorize the issuance of Recovery Zone bonds issued as part of the Federal stimulus funds. The City of Anaheim had been given an allocation of $6,573,000 to issue debt in which the federal government would provide a 45 percent interest subsidy. These bonds, she stated, must be used specifically for public improvements and the infrastructure must be built within the next three years. Staff anticipated using the funds primarily for street improvements in the downtown area and also in Anaheim Canyon. The bonds would then be repaid with redevelopment funds (tax increment funding). Ms. Stipkovich had asked this item be voted on separate from the consent calendar and also requested that the companion agenda Item No. 31 be voted on separately as well. Agency Member Hernandez moved to approve RESOLUTION NO. ARA 2010 -005 OF THE ANAHEIM REDEVELOPMENT AGENCY authorizing the issuance of not -to- exceed $6,573,000 principal amount of tax allocation bonds on certain terms and conditions, approving a continuing disclosure certificate, approving the form and distribution of a Preliminary Official Anaheim Redevelopment Agency Minutes of September 14, 2010 Page 3 of 3 Statement and financing documents, authorizing certain other official actions and providing for other matters relating thereto; second by Agency Member Kring. Roll Call Vote: Ayes — 4: Chairman Pringle and Agency Members: Galloway, Hernandez and Kring. Noes — 0. Absence — 1: Agency Member Sidhu. Motion Carried. JOINT PUBLIC HEARING (Redevelopment Agency and City Council) 6. A joint public hearing to consider the Second Amendment to the Disposition and Development Agreement between the Agency and Zelman Anaheim, LLC to incorporate certain terms and conditions relating to the development of the Anaheim Westgate Retail Center (Center) and to consider a Donation Waiver and Release Agreement with The Walt Disney Company to receive the donation of the sun icon from the California Adventure Park, to incorporate into the Center. Redevelopment Agency Action: Approve and authorize the Agency Executive Director to execute and administer the Second Amendment to the Disposition and Development Agreement, in substantial form, with Zelman Anaheim, LLC and the Donation Waiver and Release Agreement with The Walt Disney Company. This item withdrawn at the request of staff. No action taken. ADJOURNMENT: With no other business to conduct, Chairman Pringle adjourned the Redevelopment Agency meeting at 5:52 P.M. Re A0 Ily sub itted, 1 t Linda N. Andal, CM Secretary, Anaheim Redevelopment Agency