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2002-206RESOLUTION NO. 2002R-206 A RESOLUTION OF THE CITY COUNCIl. OF THE CITY OF ANAHEIM (I) AUTHORIZING THE SUBMITTAL OF A SECTION 108 LOAN GUARANTEE REQUEST TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR FUNDING ASSISTANCE RELATED TO REDEVELOPMENT OF THE WESTGATE PROJECT ON FORMER LANDFILL PROPERTIES AT THE NORTHEAST CORNER OF BEACH BOULEVARD AND LINCOLN AVENUE IN THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA, (I1) AMENDING THE CITY'S ONE-YEAR ACTION PLAN FOR FISCAL YEAR 2002-2003 TO INCLUDE SUCH APPLICATION, AND (III) MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH WHEREAS, thc City of Anaheim ("City") is a municipal corporation and charter city of the State of California, authorized and empowered to conduct the municipal affairs of the City; WHEREAS, the City Cotmcil of the City of Anaheim ("City Council") is the legislative and governing body of the City; WHEREAS, the Anaheim Redeveloplnent Agency ("Agency"), a public body corporate and politic, is a community redevelopment agency organized, existing and exercising its powers pursuant to the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq. (the "CRL"); WHEREAS, the West Anaheim Commercial Corridors Redevelopment Plan ( Redex elopment Plan") and the West Anaheim Colnmercial Corridors Project Area boundaries were duly established and adopted in accordance with the CRL; WHEREAS, the Agency is; vested with the power to implement the Redevelopment Plan i~ or&3r to carry out its adopted goals and objectives; WIIEREAS, in specific implementation of thc Redevelopment Plan, the Agency and the Ci ?' ;;r'c desirous of undertaking rcde~'clopln(.:nt c:f tt vacant, former landfill and adjaczent, ~3::~qrin;d,~ commerci~d uses tot:.di~,.~, thirty. (.30) acres offreal property located withir~ the West Amd oim Commercial Corridors Project Area at thc northeast corner of Beach Boulevard and Lincoln Avenue in the City of Anaheim, California (the "Westgate Site"); WHEREAS, the Agency, in cooperation and conjunction with Zehnan Retail Partners, is negotiating to assemble the multiple parcels that comprise the Westgate Site with the intention of redeveloping the Westgate Site into a new and modem neighborhood shopping center totaling approximately 275,000 square feet and a public plaza (the "Westgate Project"); WHEREAS, the majority of the Westgate Site was formally operated as landfills; WHEREAS, environmental assessments and reports have determined that soil contamination resulting from the degradation of refuse necessitates remediation activities that may include grading and installation of a soil cap, impermeable membrane and special building support footings in order to redevelop the property for commercial uses; WHEREAS, the United States Department of Housing and Urban Development has made available Brownfields Economic Development Initiative grants ("BEDI Grants") which are designed to help cities redevelop abandoned, idled or underutilized industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination; WHEREAS, BEDI Grants are conditioned upon, and must be used in conjunction with, a ne~v Section 108 guaranteed loan commitment; WHEREAS, the Community Development Department of the City has submitted an application to the Secretary of the United States Department of Housing and Urban Development ("HUD") for a BEDI Grant in the amount of $650,000 in order to facilitate assembling the parcels necessary for, and designing and installing special engineering programs to effectuate the development of, thc Westgate Project (the "Westgate BEDI Grant Application"); WHEREAS, HUD has conditioned the City's receipt of the Westgate BEDI Grant upon the City obtaining a new Section 108 loan in the anticipated amount of not less than $6,500,000 (the "Westgate Section 108 Loan"), whose repayment by program rules will be secured by the City's future Community Development Block Grant ("CDBG") allocations; however, the Agency and the City anticipate that the Wcstgate Section 108 Loan repayment obligation will be satisfied by the incremental revenues generated by the redeveloped Westgate Site, including sales tax revenue generated by the Westgate shopping center, so as to not jeopardize the funding of CDBG programs; WHEREAS, in order to obtain the Westgate BED1 Grant, the City desires to submit an application to obtain the Wcstgate Section 108 Loan (the "Westgate Section 108 Loan Application"). NOW, THEREFORE, TIlE CITY COUNCll~ OF THE CITY OF ANAItEIM DOES HEREBY RESOI~VE AS FOI.I.OWS: Section 1. Recitals. The City Council finds that the foregoing Recitals are true and correct and such Recitals are hereby made a substantive part of this Resolution. Section 2. City Certification. The City Council certifies that the City meets the criteria for the Section 108 loan guarantee program and that the City has the authority to carry out the work included in the BEDI Grant program. Section 3. Approval and Submittal of Application. The Westgate Section 108 Loan Application is hereby approved and the Executive Director of the City's Community Development Department, or her designee, is hereby authorized and directed to execute and submit the Application to HUD, incur an indebtedness, execute loan agreements and take such other actions as are consistent with the Application. Section 4. Amendment of One-Year Action Plan. The City's One-Year Action Plan for Fiscal Year 2002-2003 is amended to include the Westgate Section 108 Loan Application. THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS 24 (th) DAY OF September ,2002. ATTEST: CI~FY CLER~ OF THE CITY OF ANAHEIM MAYOR OFTHE CITY 46520.1 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 2002R-206 was introduced and adopted at a regular meeting provided by law, of the Anaheim City Council held on the 24th day of September, 2002, by the following vote of the members thereof: AYES: MAYOR/COUNCIL MEMBERS: Feldhaus, Kring, McCracken, Daly NOES: MAYOR/COUNCIL MEMBERS: None ABSTAINED: MAYOR/COUNCIL MEMBERS: Tait ABSENT: MAYOR/COUNCIL MEMBERS: None '"'-CITY CL~RK OI~ ~I'HE CITY OF ANAHEIM (SEAL)