2003-110RESOLUTION NO. 2003R-110
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING A FIRST AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND
CIM CALIFORNIA URBAN REAL ESTATE FUND, LP, A
DELAWARE LIMITED PARTNERSHIP, REGARDING
CERT.&IN REAL PROPERFY IN iREDEVELOPMENT PROJECT
ALPHA, AND MAKING CERTAIN FINDINGS IN CONNECTION
THEREWITH
WHEREAS, the Anaheim Redevelopment Agency (the "Agency") is engaged in
activities necessary to carry out and implement the Redevelopment Plan for the Agency's Alpha
Project (the "Project"); and
WHEREAS, the Agency owns four (4) development sites in Downtown Anaheim,
within the area bordered by Center Street Promenade, Anaheim Boulevard, Broadway and Harbor
Boulevard (indn'idually "Parcel A," "Parcel B,' "Parcel C," and "Parcel D" and collectively the
"Development Sites"), which Development Sites have been previously developed for urban.'ase; and
WHEREAS, the Agency and the Developer have entered into a Disposition and
Development Agreement dated as of October 29, 2002 (the "DDA"), pursuant to which the Parr/es
set fimh the terms and conditions relating to (i) the Agency's sale of Parcels A, B and C to the
Developer, and the Developer's development of'certmn improvements thereon, and (ii) exclusive
negetiation with respect to Parcel D and Parcel C~3; and
WHEREAS, the parties now wish to implement the exclusive negotiating portion of
thc DDA with respect to Parcel D by entering a First Amendment to Disposition and Development
Agreement ("First Amendment") to set forth the terms and conditions relating to the Agency's sale of
Parcel D to the Developer, and the Devempe. s development of certain improvements thereon (the
"Parcd D Improvements"); and
WHEREAS, the Developer has st~bmitted to the Agency and the City Council of the
City of Anaheim (the "City t;oun ~n ) copies of the First Amendment in a form executed by the
Developer; and
WHEREAS, pursuant to Section 33433 of the Cornmunity Redevelopment Law
(Caiilbrnia Health and Safety Code Section 33000, ,:~," seq.), the Agency is authorized, with the
approva! of the City Council after :-~ duly noticed ?t:blic ?;earing, to sell Parcel D for development
pursuant to the Redevelopntent Plan upen a detertnination by the City Council that the sale of tl~e
property will either assist in lhe e!iminati,,m ofb!ight or pcovide affordable housing for low and
modera'~e income persons, that the consideration l'br suci: sale is not less than either the f~air market
valu. e or i'2ir reuse value of Parcel D in accordance with the covenants and conditions governing the
sale and the development costs required thereof, and that the sale is consistent with the
impiementadon plan which has been adopted bx, the Agency/bt the Project; and
F' DOCS DEVSVCS V,E'iGLU'"',' KKR3610B DOC
WHEREAS, the City Council has previously determined, in its adoration of the
ordinance approving the Project, that the Development Sites were blighted, including substandard
structures, serious grade problems, structural deterioration and poor maintenance; and
WHEREAS, the First Amendment would provide for the elimination of such
blighting conditions by providing for the construction of the Development on such previously
blighted real property; and
WHEREAS, the purchase price for Parcel D payable under the First Amendment is
not less than the reuse value of Parcel D, at the use and with the covenants, conditions precedent,
conditions subsequent and development costs authorized by the FirSt Amendment, as determined by
the reuse analysis of the First Amendment which has been performed by the Agency's financial
consultants; and
WHEREAS, the Agency has adopted an Implementation Plan ~Lr the Project
pursuant to Health and Safety Code Section 33490, which identities goals av, d objectives including
eliminating substandard structures and eliminating physical and economic deficiencies; and
WHEREAS, the Implementation Plan sets ibrth a program of actions which include
improving public facilities and infrastructure, upgrading and expanding commercial programs, and
expanding retail programs; and
WHEREAS, the First Amendrnent will assist the Agency in meeting ,'.he goais and
objectives set forth in the Implementation Plan and the program of actions by thc construction of the
Parcel D Improvements; and
WHEREAS, a joint public hearing of the Agency and City Council on the proposed
First Amendment was duly noticed in accordance with the requireme~ts c~f Health and Safety Code
Sections 33431 and 33433, and the proposed First Amendment, and a summary report meeting the
requirements of Health and Safety Code Section 33433, was available for public inspection prior to
the joint public hearing consistent with the requirements of Health and Safi.'.ty Code Section 33433;
and
WHEREAS, on June !7, 2003, the Agency and City Council held a joint public
hearing on the proposed First Amendment, at which time the Agency reviewed and evaluated all of
the information, testimony, and evidence presented during the joint public hearing; and
WHEREAS, all actions required by all applicable law with respect to the proposed
First Amendment have been taken in an appropriate and timely manner; and
WHEREAS, pursuant to the California Enviromnental Quality Act ("CEQA") the
Agency has certified a Final Subsequent Environmental Impact Report on November 23, 1976 by
Resolution No. ARA 76-38, a Supplemental EIR for Project Alpha Parcel 10 on September 6, 1983
by Resolution 83-35, a Subsequent EIR for Parcel 8 and 9 on Novmnber 8, 1983 by Resolution No.
ARA 83-83, an Addendum for Koll Anaheim Center on January 9, 1990 by Resolution Nos. ARA
90-1 and 90R-13, and an Initial Study and Trip Generation Analysis on March 8, 1994, by Resolution
Nos. ARA 94-2 and 94R-31; and
F:'.DOCSXDEVSVCS~RESOLUTT,¢xKKR361 OB DOC
WHEREAS, the First Amendment is within the scope of one or more of the projects
analyzed under the foregoing environmental documents, and (a) approval of the First Amendment
does not constitute a substantial change in those previously an. alyzed 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 First Amendment 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 knovm 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, to the extent the Parcel D Improvements 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 (14 California Code of Regulations sections 15000 et seq.),
be subject to further CEQA analysis; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed First Amendment and believes that the redevelopment of Parcel D 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, BE IT RESOLVED by the City Council of the City of' Anaheim as
follows:
1. The City Council finds and determines that, based upon substantial evidence
provided in the record before it, the consideration for the Agency's sale of Parcel D pursuant to the
terms and conditions of the First Amendment is not less than the fair reuse value of the Parcel D, at
the use and with the covenants, conditions precedent, conditions subsequent and development cests
authorized by the First Amendment.
2. The City Council hereby finds and determines that the sale of the Parcel D pursuant
to the First Amendment ~vill eliminate blight ~vithin the Project by providing for the proper reose and
redevelopment of a portion of the Project which was declared blighted for the reasons described
above.
3. The City Council hereby finds and determines that the First Amendment is consistent
with the provisions and goals of the Implementation Plan and the Redevelopment Plan.
4. The City Council hereby finds that the First Amendment is within the scope of one or
more projects previously analyzed pursuant to CEQA as set ibrth above, and that therefore the
approval of the First Amendment is exempt from further CEQA analysis pursuant to Public
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Resources Code section 21166 and CEQA Guidelines Section 15162 (14 Calitbrnia Code of
Regulations § 15162). The City Council further finds and resolves that, to the extent required by
CEQA, any land use entitlements and permits required in conjunction with the implementation of
improvements contemplated by the Parcel D Improvements shall be subject to further analysis under
CEQA.
5. The City Council hereby approves the First Amendment, and authorizes the Agency
to enter into the First Amendment. A copy of the First Amendment when executed shall be placed
on file in the office of the City Clerk.
6. The City Clerk shall certify to the adoption of this Resolution.
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The foregoing Resolution is hereby approved by the City Council of the City of Anaheim this
1.7 day of ~Tune ..... 2003.
Mayor~'~ ~
ATTEST:
jo h~!]~i~h~a-d~x,?'
Ass~ant City Attorney
Stradling Yocca Carlson & Rauth,
City Special Counsel
F:' DOf S'DEVSV( $', R [: $OLU'IN !CKR 361 '~B
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. 2003R-110 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 17th day of June, 2003, by the following vote of the
members thereof:
AYES:
MAYOR/COUNCIL MEMBERS: Pringle, Chavez, Hernandez, McCracken
NOES: MAYOR/COUNCIL MEMBERS: None
ABSTAINED:
MAYOR/COUNCIL MEMBERS: Tait
ABSENT:
MAYOR/COUNCIL MEMBERS: None
OF THE CITY OF ANAHEIM
(SEAL)