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12/20/2019 ANAHEIM CITY COUNCIL SPECIAL MEETING OF DECEMBER 20, 2019 The special meeting of December 20, 2019 was called to order at 2:02 P.M. in the chambers of Anaheim City Hall, located at 200 S. Anaheim Boulevard. The meeting notice, agenda, and related materials were duly posted on December 18, 2019. PRESENT: Mayor Harry Sidhu and Council Members Lucille Kring, Denise Barnes, Jose F. Moreno, Stephen Faessel, and Trevor O'Neil. ABSENT: Council Member Jordan Brandman INVOCATION: Father John Neneman, San Antonio de Padua Catholic Church FLAG SALUTE: Mayor Pro Tem Lucille Kring ADDITIONS\DELETIONS TO CLOSED SESSION: None PUBLIC HEARING: D124 1. This is a public hearing to take public testimony and consider the Summary Report prepared pursuant to California Government Code section 52201, and a resolution approving a AGR- Purchase and Sale Agreement with SRB Management Company, LLC, in the purchase price 11860 of $325,000,000, for real property generally located at 2000 E. Gene Autry Way and 2200 E. Katella Ave, upon which exists certain improvements, including Angel Stadium of Anaheim, City National Grove of Anaheim and their surrounding parking areas and environs (approximately 153 acres generally bounded by Orangewood Avenue, State Route 57, Katella Avenue, and State College Boulevard) that will assist in the creation of economic opportunity pursuant to California Government Code section 52201 (APNs 232-011-02, -06, -35, -36,-37, -38, -39, -40, -41, -42, -43, -44, -47, -48, -49 -50). RESOLUTION NO. 2019-158 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the Purchase and Sale Agreement for the sale of approximately 153 acres of city-owned property generally located at 2000 E. Gene Autry Way and 2200 East Katella Ave. containing improvements including Angel Stadium of Anaheim and City National Grove of Anaheim and finding that the sale will assist in the creation of economic opportunity pursuant to California Government Code section 52201. Determine that per the California Environmental Quality Act (CEQA) and CEQA Guidelines Section 15168, these actions are within the scope of Final Subsequent Environmental Impact Report No. 339 for the Revised Platinum Triangle Expansion Project including Mitigation Monitoring Plan No. 106C, and associated Addenda. DISCUSSION: City Manager Chris Zapata noted the item is to consider the pricing and appraisal of public land, and a Purchase and Sale Agreement with related CEQA determinations. He advised that if the City Council gives staff direction to proceed, staff would begin a multi-step process for continued negotiation. City Council Minutes of December 20, 2019 Page 2 of 21 Deputy City Manager David Belmer introduced the negotiating team as supported by professional consultants, including Steve Norris as appraiser, Kevin Kelley and Andrea Austin as outside counsel, Larry Kosmont regarding the 52201 Report, and Dan Barrett related to sports-specific issues. Convention, Sports & Entertainment Department Executive Director Tom Morton reported the item is a resolution approving the Purchase and Sale Agreement between the City of Anaheim (City) and SRB Management Company, LLC (SRB), a finding that the sale creates an economic opportunity for the City, and a determination that the actions comply with the California Environmental Quality Act (CEQA). He advised the Purchase and Sale Agreement sets forth a multi-step process for the proposed sale of approximately 153 acres of property generally referred to as Angel Stadium of Anaheim (Stadium), City National Grove of Anaheim (Grove), and their surrounding parking areas. Mr. Morton advised that Section 52201(a)(2)(B) of the California Government Code provides that the City may sell property to create an economic opportunity. He noted that before doing so the Council is required to prepare, publish notice of, and make publicly available a report documenting the economic opportunity, and to approve the sale by resolution after a legally noticed public hearing. He advised the City has satisfied these criteria and prepared and made available the required report. He advised the report notes that the proposed sale and ultimate development of the property will create economic opportunity for the City and makes the required finding pursuant to California Government Code Section 52201. Mr. Morton advised the report disclosed the City's original purchase of the stadium but did not disclose the acquisition costs for the City National Grove of Anaheim, which was $6,700,000 in 2002. He advised if City Council deems that the sale of the property will result in an economic opportunity for the City, it is permitted to approve the sale by adopting the resolution. Mr. Morton reported the City's negotiating team, consisting of Mayor Harry Sidhu, the City Council Representative, the City Manager, the City Attorney, supporting staff, and professional consultants, undertook negotiations with Angels Baseball which culminated in the proposed Purchase and Sale Agreement (PSA) that is being presented for Council's consideration. He reported that the PSA between the City and SRB, an entity controlled by the owners of Angels Baseball, establishes a multi- step process through which the City may sell to SRB the property, which includes the existing 53-year old Stadium, its surrounding parking areas, and the Grove. Lastly, he advised the negotiated sale price is $325,000,000, which is based on a fair market valuation appraisal. Mr. Morton reported that as part of the negotiation of a Disposition and Development Agreement (DDA), the parties may propose to adjust the ultimate cash purchase price (subject to City Council approval) to reflect the value of certain community benefits SRB may agree to provide as the property is developed, only if those benefits are over and above what SRB would already be required to provide. Mr. Morton shared examples of benefits such as provisions for affordable housing above what would reasonably be expected to be provided by the developer and larger than mandated parks and open space. Mr. Morton presented a list of key transaction terms including the following: a purchase price in excess of fair market value, as appraised by Norris Realty Advisors, of$325,000,000 for approximately 153 acres of land, as well as the Stadium and the Grove, as valued with the current Stadium Site parking obligations; a commitment by the Angels to play home games in Anaheim through at least 2050; a waiver of Angels Baseball's right to terminate the existing lease; $70,000,000 in periodic deposits made by SRB, to be credited against the purchase price; a milestone schedule for establishing development entitlements; and no obligation for either party to close escrow if City Council Minutes of December 20, 2019 Page 3 of 21 conditions precedent are not met. He also advised that if the City and SRB do not ultimately reach mutually acceptable terms on any of the steps outlined in the PSA, and escrow does not close, the City's existing Stadium lease with Angels Baseball will stay in full force and effect through the current lease term, and current Stadium and Stadium Site operations will remain the same. Mr. Morton reported that once executed and a $5,000,000 deposit is made, the PSA establishes a defined process. He reported that first, the parties have a six-month window/inspection period, which can be mutually extended in 30-day increments, to negotiate three separate agreements for City Council approval. Mr. Morton reported the first agreement is the DDA and is intended to set out general parameters for SRB's development of the property, consistent with the Platinum Triangle Master Land Use Plan and the Stadium District. It will reflect any community benefits negotiated by the parties, and commit SRB to either renovate the existing Stadium or build a new stadium with no public contribution, and address how the existing parking obligations on the site will be handled. Mr. Morton reported the second agreement is Angels Commitment Agreement, intended to set out Angels Baseball's commitment not to relocate, and to play its home games at the Stadium (or its replacement) until at least 2050. It will establish requirements for how the Stadium will be operated and maintained, consistent with MLB standards, and provide for certain other City rights, among other provisions. Mr. Morton reported the third agreement is the Lease Agreement, intended to establish how SRB takes over from the City as landlord of the Stadium under the existing lease with Angels Baseball. Mr. Morton reported that If the parties are unable to reach agreement on mutually acceptable terms for each of the agreements described above, either party can terminate the PSA by the end of the six- month inspection period in which SRB's deposit will be returned, and the existing lease continues in full force and effect. Mr. Morton provided a brief overview of the timeline. He advised that if the parties reach agreement on the DDA, Angels Commitment Agreement, and Lease Assignment, SRB would make another $15,000,000 deposit and would then have 14 months to submit a Master Site Plan and Development Agreement for development of the property, subject to the City's standard review process for development projects under the Platinum Triangle Master Land Use Plan. He noted that during this period, the City will review SRB's proposed development plans consistent with CEQA requirements. Lastly, he reported SRB will make an additional $10,000,000 deposit when it submits its final Master Site Plan and Development Agreement for City review and may also extend the amount of time it has to submit its Master Site Plan and Development Agreement by making an additional $10,000,000 deposit for each six-month extension it requests (up to three extensions allowed under the PSA). Mr. Morton advised if City Council approves the Master Site Plan and Development Agreement, SRB will make an additional $20,0000,000 deposit. It will then have 18 months to submit a Vesting Tentative Tract Map (VTTM)for a hearing before the City's Planning Commission. He advised that when SRB submits the final VTTM, it will make a final deposit of$20,000,000. Mr. Morton reported if the Planning Commission approves the VTTM, the parties will close escrow 10 days later on the sale and purchase of the property, per the PSA. He noted that all the deposits will be credited against the final purchase price, as it may have been adjusted, and SRB will pay the remainder of the monies owed in cash. Lastly, he advised that SRB's deposits are refundable until City Council Minutes of December 20,2019 Page 4 of 21 the transaction closes and neither party is obligated to go through with the purchase and sale if the Master Site Plan/Development Agreement and/or VTTM are not approved by the City. Mr. Morton advised the City retains full discretion throughout the review and hearing processes for the DDA, Lease Assignment Agreement, Angels Commitment Agreement, Master Site Plan/Development Agreement, and VTTM, consistent with the exercise of its regulatory authority, environmental review requirements under CEQA, and those vested development rights SRB obtains by law under the DDA. Mr. Morton reported that impacts on the budget would include one-time land sale proceeds at transaction closing, as well as ongoing revenue from future development as noted in the 52201 Report. Mayor Sidhu opened the public hearing. Council Member Moreno questioned whether Council could ask questions of staff prior to hearing public testimony. City Attorney Robert Fabela clarified the rules for the public hearing that the chair first hear the staff presentation then open the public hearing. Mayor Sidhu opened the public hearing. Prior to receipt of public comments, an outline of rules for public comments and a brief decorum statement was provided by City Clerk Theresa Bass. Dennis Kuhl, Angels Baseball Chairman, provided a brief recap of community contributions of funding, tickets, and support to Anaheim and various organizations, expressed his support for the item, and encouraged City Council to pass the item. John Carpino, Angels Baseball President, provided a brief recap of negotiations, expressed his support for the item, and encouraged City Council to pass the item. City Manager Chris Zapata provided an update that Council Member Brandman may be in attendance after his unforeseen emergency. Tracy Nolan, Board member, Anaheim Municipal Employees Association (AMEA), expressed AMEA's support for the item and encouraged City Council to pass the item; stating AMEA represents the community and Anaheim employees, providing public safety and is committed to service. Officer John Holcomb, Santa Ana Police Department, spoke about their participation in Angels RBI Youth Baseball Camp, expressed his support for the item, and shared the programs were dedicated, providing academic assistance, physical fitness, and keeping youth away from gang and drugs. Pam Estes, CEO, Boys and Girls Clubs Laguna Beach, expressed their support for the item, and expressed the Angels are valuable in the community and have generously provided funds to many programs and special events. Wes Jones expressed his opposition to the item and encouraged City Council to oppose the item, as he had no interest in keeping the Los Angeles Angels because it did not represent Anaheim and he hoped negotiations benefit the community. Mark Richard Daniels expressed his opposition to the item and encouraged City Council to abstain until more transparent information was released to the public. City Council Minutes of December 20, 2019 Page 5 of 21 Paul Vicknair expressed his opposition to the item and encouraged City Council to keep the name Anaheim Angels as he believed any settlement should favor the residents. Neal Runsvold expressed his opposition to the item and encouraged the City to focus on negotiations for a lease instead of a purchase, as he believed benefits were minimal compared to future value in the land. Paul Kott expressed his opposition to the item, speaking in favor in selling the Angels but not for this price and not at these terms. Ernesto Medrano, Los Angeles/Orange Counties Building and Construction Trades Council, expressed his support for the item and encouraged City Council to pass the item. He applauded the effort of keeping the Angels and felt a development agreement would bring many benefits to the community and job opportunities. Evelina Nishizawa expressed her support for the item and encouraged City Council to keep Anaheim Angels because they have many programs that support the community and the County of Orange. She also believed the Angels leaving would mean the loss of many jobs and revenue and she hoped for an equitable agreement. Wally Courtney expressed his opposition to the item, encouraged City Council to delay a vote until there was more information and a possibly better price, and encouraged Council to protect the taxpayers. Jerry Fuentes, Anaheim Performing Arts Center Foundation (APACF), encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. Brian Galloghy, Quantum Automation, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. John Machiaverna expressed his support for the item, as he believed certain items cannot be measured in dollars, and shared the importance keeping the Angels is for his family and the benefits for the community. Rebecca Daher encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium, as she believed the Performing Arts Foundation plays an important role in Anaheim. Kara Bautch, Make-A-Wish Foundation, expressed her support for the item and encouraged City Council to pass the item. Tom Morton (not City staff) expressed his support for the item and encouraged City Council to pass the item. Mary Ann Leonard, President, Anaheim Performing Arts Center Guild, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. City Council Minutes of December 20,2019 Page 6 of 21 Jim Leonard encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. Jose Paolo Magcalas, Board President, Anaheim Elementary School District, expressed his opposition to the item and encouraged City Council to pay market base prices for valuable assets owned by the citizens and to be transparent. Joseph Olsen expressed his support for the item, encouraged City Council to pass the item, and suggested the City use his suggested flag along with the current City flag once the stadium opened. Pepe Avila expressed his support for the item and encouraged City Council to keep the Angels for revenue, property tax, sales tax, TOT, and permanent jobs for the community. Al Jabbar, Board Member, Anaheim Union High School District, expressed his opposition to the item, as he believed donations and charities given by Angels were considered responsible corporate citizenship, and expressed his concerned for the terms of this agreement. Lyman Emmer expressed his support for the item and encouraged City Council to keep the Angels, which provides great opportunities and local hiring. John Hanna, Southwest Regional Council of Carpenters, expressed their support for the item, stated the greatest assets are the residents, and he believed great risks were taken if an agreement cannot be reached. Linda Knohl encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium, as she believed the residents deserve a performing arts center. Paul Hyek expressed his opposition to the item and encouraged City Council to oppose the item. Jessica Hubbard, Girls Inc. of Orange County, expressed her support for the item and encouraged City Council to keep the Angels for as long as possible as the benefits provided by Girls Inc. program were in large part possible by the generosity of Angels team and foundation. Howard Knohl, M.D., Chairman of the Board, APACF, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. He shared a proposal has been submitted offering $2,200,000 per acre to be paid immediately to support the various departments in the city. Linda Barnett encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. She expressed her concern for the lack of support of art theatres in the city. Norma Leichtweis encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. She shared the many benefits the Performing Arts Center offers the community. Joseph DeCleene expressed his support for the item and encouraged City Council to keep the Angels in Anaheim. City Council Minutes of December 20, 2019 Page 7 of 21 Julie Fraley expressed her support for the item and encouraged City Council to pass the item because Angels are a big asset in the community. Shelley Sherman encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. She believed the need of a Performing Arts Center was vital to the community and was proven to help children with their cultural, economic, and educational skills. Antonio Barrios expressed his support for the item because it would create jobs in the community and give him the opportunity to build and work in the same city where he was raised. Jerry Amante, Executive Director, Anaheim/Orange County Hotel & Lodging Association, expressed support for the item and believed keeping the Angels would provide affordable housing and create jobs. Molly Jolly, Angels Baseball Senior Vice President, Finance & Administration, expressed her support for the item and shared that employees and unions have experienced a great work environment and a fantastic family friendly fan experience. She also shared direct and indirect assistance from the Angels is worth millions to the city. Brian Sanders, Angels Baseball, expressed his support for the item and shared that, as an employee for the Angels Baseball, he has partnered with Police, Fire, and others, and he believed the approval of this agreement would bring millions of dollars to the City. Kris Murray, former Anaheim City Council Member, expressed her support for the item and believed the investment the team was making in the community was up-front in addition to countless charities. She also spoke in regards to the long-term value this agreement will bring to the residents. Jeannine Robbins expressed her opposition to the item, stating her concern regarding corruption on the City Council and the bad deal she believed this was for residents. Mike Robbins expressed his opposition to the item and believed this was all about the money. Sam Hurtado, SMART Local 105, expressed his support for the item, believed City Council has the capacity to do what was best, and encouraged Council to continue and move to the next phase. Bobby Donelson expressed his opposition to the item unless there was a better deal, he did not support privatization, and he was in favor of having a Performance Arts Center in the City. Brandon Rodriguez expressed his support for the item and expressed his thanks for the local union that helped him join the apprenticeship program and study at the same time. Ryan Ruelas expressed his opposition to the item and encouraged City Council to oppose the item. He believed this agreement was concerning and appreciated transparency, honesty, and openness when doing business. Brenda Ward expressed her support for the item and encouraged City Council to keep the Angels to benefit its constituents. ..... .._.... City Council Minutes of December 20, 2019 Page 8 of 21 William Fitzgerald, Home Owners Maintaining Our Environment, expressed his opposition to the item and encouraged City Council to oppose the item. A resident expressed his support for the item and encouraged City Council to pass the item. He also thanked union members for their labor. Frederick Young, 441 IBEW member, expressed his support for the item and encouraged City Council to keep the Angels. Robert Knohl, Board Member APACF, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. He asked Council to consider their proposal and to do the right thing for its citizens by allowing APACF the opportunity to fulfill its mission and vision. Michael Buss, President, Anaheim Arts Council, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. He believes APACF could be the home to music and bring in tourists. He also expressed his concerns with the negotiations. Neal Vincent, Disney Anaheim Resort, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. Ross Romero expressed his opposition to the item as he believed this type of land did not exist anymore and the property was being underpriced. Roberta Pantie encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. She believed a local Performance Arts Center was needed for children to learn and appreciate the arts. David Duran expressed his opposition to the item as he believed plans for negotiations were not being transparent with public oversight. Peter Warner expressed his opposition to the item and encouraged City Council to keep Anaheim Angels and to do what is right for the residents. Pat Davis expressed her opposition to the item, encouraged City Council to consider the name, which she believed was a significant matter, believed donations were not the basis for this agreement, and asked Council to consider a more reasonable price and substantial community benefits. Vern Nelson expressed his opposition to the item and encouraged City Council to oppose the item. David Klawe expressed his support for the item and encouraged City Council to pass the item. Lisa Klawe expressed her support for the item and encouraged the City Council to keep the Anaheim Angels for the benefit of the community. Diana Kotler, Executive Director, Anaheim Transportation Network (ATN), expressed their support for the item and encouraged City Council to keep the Angels for the community, visitors, and residents. City Council Minutes of December 20,2019 Page 9 of 21 John Gargan expressed his opposition to the item and encouraged City Council to postpone the agreement for the benefit of the residents and to create better revenue. He also spoke in favor of the Performing Arts Center, which would create new jobs. Ada Tamayo expressed her opposition to the item and encouraged City Council to postpone the negotiations and asked Council to consider residents leaving the City due to high rent. Kenneth Batiste expressed his opposition to the item, encouraged City Council to oppose the item, and spoke of corruption in Council's negotiations. Amelia Castro, Advisory Board Member, Anaheim First, expressed her support for the item, as she believed keeping the Angels was an incredible deal for the community and residents, which will result in new sources of revenue for the City. Reuben Franco, President/CEO, Orange County Hispanic Chamber of Commerce, expressed his support for the item and encouraged City Council to keep the Angels another 30 years because they have been a great partner for the entire community and thanked Council for their leadership. Konstantinos Roditis, Board Member APACF, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. He spoke regarding presenting a master plan, stated APACF was willing to pay more money per acre, and they were here for the community. Kubera Yaksha Williams encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. Dr. Fred S. Calhoun, President, Orange County National Association for the Advancement of Colored People (NAACP), expressed concern that the meeting was held at a time to deter public speaking. Alejandro Lobatos expressed his support for the item and encouraged City Council to pass the item. Paul Aroian expressed his support for the item, encouraged City Council to keep the Angels, and support community workforce agreements, which provide union members a good career and good working condition on the jobsite. Tom Dunlap, Vice-President, Anaheim Performing Arts Center Guild, encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. He asked Council to consider working with their foundation to be a part of this project for the city. Pam Donelson encouraged City Council to postpone this item to allow the APACF to continue negotiating with the City on developing almost 12 acres of land adjacent to Angels Stadium. She believed this was beneficial for the children and asked to table the agreement for more information to be provided. Ron Miller, Executive Secretary, LA/Orange County Building and Construction Trades Council, expressed his support for the item and encouraged City Council to get this deal done. He believed this will spur the economy in the City through the development of all the property. City Council Minutes of December 20, 2019 Page 10 of 21 Todd Ament, President/CEO, Anaheim Chamber of Commerce, expressed their support for the item and encouraged City Council to approve the sales agreement that will keep the Angels for another 30 years. He believed this was a rare, remarkable opportunity that will impact the City's economy for decades to come. Mayor Sidhu closed the public hearing. Mayor Sidhu recessed City Council at 6:27 P.M. and reconvened at 6:36 P.M. DISCUSSION: Mayor Sidhu asked each Councilmember to limit their initial comments and questions to 15 minutes. Mayor Sidhu advised the item was the culmination of several meetings and discussions with Angels Baseball and the City's negotiating team. He expressed his support for the item and felt it was in the best interest of Anaheim residents. He noted there were no City subsidies and no taxpayer funding for the stadium. He also noted this would allow the City to get out of the stadium business and still benefit from the stadium and keep the Angels in Anaheim. Mayor Sidhu advised the sale is at fair market value and the appraisal was completed professionally and independently by a respected appraiser. He also advised the City cannot see a value of $500,000,000 and still have baseball. He addressed the timing due to work over the calendar year and a least opt-out date of December 31. Lastly, he reported the City would look at the DDA, community benefits, and Angels commitment in early 2020. Mayor Sidhu reported the sale would bring affordable housing to the Platinum Triangle, park space, and great paying jobs to Anaheim. He advised any community benefits would be at fair market value. He advised that Anaheim cannot build affordable housing and park space fast enough and this project allows those items to be addressed with a bigger impact. He stated this proposals addresses what the Council discussed in August and brings major benefits to the City, its neighborhoods, and its residents. In response to Mayor Sidhu's inquiry, City Manager Chris Zapata confirmed it was the direction of City Council to keep the Angels in Anaheim. He also noted that a $475,000,000 proposal reflects the property without a stadium and it would be highly unlikely to have baseball without a stadium. He also stated the Angels refused to add Anaheim back into the name even though the negotiating team fought for its addition. Lastly, he advised there are several milestones that need to be met which could stretch out over the next five years. MOTION: Mayor Sidhu moved to approve A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the Purchase and Sale Agreement for the sale of approximately 153 acres of city-owned property generally located at 2000 E. Gene Autry Way and 2200 East Katella Ave. containing improvements including Angel Stadium of Anaheim and City National Grove of Anaheim and finding that the sale will assist in the creation of economic opportunity pursuant to California Government Code section 52201 and determine that per the California Environmental Quality Act (CEQA) and CEQA Guidelines Section 15168, these actions are within the scope of Final Subsequent Environmental Impact Report No. 339 for the Revised Platinum Triangle Expansion Project including Mitigation Monitoring Plan No. 106C, and associated Addenda, seconded by Mayor Pro Tem Kring. City Council Minutes of December 20, 2019 Page 11 of 21 DISCUSSION: Council Member Moreno questioned whether disclosures needed to be made, to which City Attorney Robert Fabela advised it was not required as the action is quasi-legislative. Council Member Moreno reported he only had brief text exchanges with Mr. Carpino wishing well for the season and this process. Council Member Faessel advised he has not had any communication with Angels Baseball. He expressed his support for Angels Baseball and their community partnership. In response to Council Member Faessel's inquiry regarding parks for District 5 and the Platinum Triangle, Deputy City Manager David Belmer advised the Platinum Triangle is intended to be a walkable, mixed-use community where people can live, work, and play. The DDA could reflect additional items beyond what is required in the Platinum Triangle plan. In response to Council Member Faessel's inquiry, Mr. Carpino advised that Angels Baseball understands the City's vision for the Platinum Triangle and is open for discussion. He also agreed a high-end grocery store would be ideal in the area. In response to Council Member Faessel's inquiry, Mr. Belmer advised the opportunities of developing the plan were limitless within the Platinum Triangle Master Land Use Plan (PTMLUP). Council Member Faessel acknowledged this was the first step in a process, thanked the negotiating team, and felt it will be beneficial for Anaheim. Mayor Pro Tern Kring thought this was a great deal for the City. In response to Mayor Pro Tem Kring's inquiry, Mr. Zapata advised that the partners who comprise SRB Management Company, LLC will be revealed as negotiations mature. Mayor Pro Tem Kring cited past litigation regarding the name Anaheim in the team name which was awarded to Angels Baseball due to the language in the contract. Based on that, she stated the name Anaheim will never appear in the team name. She read from an Orange County Register op ed article by Lucy Dunn, Orange County Business Council. Additionally, she addressed comments and letters received regarding the item. Mayor Pro Tern Kring clarified that schools were not the responsibility of City Council and suggested residents with concerns regarding school performance be addressed to the respective school boards. She also noted the City has a plan to underground utilities throughout the City and it was not limited to the Anaheim Resort. City Attorney Robert Fabela advised that SRB Management Company, LLC is an entity controlled by Arte Moreno. In response to Mayor Pro Tem Kring's inquiry, Mr. Fabela advised there was an exclusive negotiation agreement between Anaheim Performing Arts Center Foundation (APACF) and the City in 2016 that gave a time period for the parties to negotiate a deal that would include the conveyance of property. He advised there were financial milestones that APACF was required to meet. He noted APACF missed the first milestone of$20,000,000 and the City had the right to terminate, which it did. He stated APACF was given an opportunity to cure the milestone, at which time APACF requested an extension which was denied by City Council in 2018. Council Member O'Neil expressed his support for the item and felt it was a benefit for Anaheim. In response to Council Member O'Neil's inquiry, Mr. Belmer presented scenarios that were looked at for the fair market value while completing the appraisal. He noted the first scenario shows the current parking encumbrance and the second, larger value scenario shows the property without the parking City Council Minutes of December 20, 2019 Page 12 of 21 encumbrance. He noted the only way to get to the higher number would be to develop the property without a baseball team. Steve Norris, Principal, Norris Realty Advisors, explained they evaluated the site the way a developer and the market does. He noted the primary issue with the property is parking and was included in the analysis. In response to Council Member O'Neil's inquiry, Mr. Norris clarified that keeping the land encumbered with the stadium and the 12,500 parking spaces resulted in the $325,000,000 figure. He further clarified that in order to reach a higher figure of approximately $475,000,000 would require a vacant lot with no parking obligation, and additional expenses for stadium demolition. In response to Council Member O'Neil's inquiry, Mr. Norris advised that land-uses on a vacant parcel would be determined by the PTMLUP and could vary. Mr. Belmer interjected that the land uses would be those that are permitted in the Stadium District of the PTMLUP and would likely be a mixed-use development consisting mainly of residential, some supporting office, and retail. In response to Council Member O'Neil's inquiry, Mr. Zapata advised that he was unable to answer if the revenue generated from the development would cover all the required City services and would require further analysis. In response to Council Member O'Neil's inquiry, Mr. Belmer concurred that the Economic Impact Report (EIR) indicates ongoing annual revenue at approximately $20,000,000 per year. Council Member O'Neil shared his understanding of the one-time and ongoing revenues that would result from the project. Mr. Belmer advised it was fair to say the development would generate public revenue which the City would keep and be placed in the City's General Fund. Council Member Barnes shared a presentation and expressed concern that this item has gone from a lease to a sale in a short time. She encouraged City Council to consider postponing the item until additional information can be received. She expressed concern that Arte Moreno refused to identify his partners in SRB Management and therefore cannot ensure these partners have development experience. She also expressed concern that there was no Exclusive Negotiating Agreement with Angels Baseball and that Anaheim is not included in the name. Council Member Barnes reported that a 2005 study showed the marketing value of the team name was worth $34,000,000 per year. She expressed concern the City was rushing into this agreement. Council Member Barnes inquired, if the City can back out of the agreement until June 2020, is public opposition good cause for canceling the agreement. Mr. Fabela advised that public opposition, if the sole cause, was not cause for canceling the agreement. She expressed concern that Mayor Sidhu indicated he would represent the entire City Council but has refused to meet with herself or Council Member Moreno even once, for any reason, to discuss any subject, since taking office last December. Council Member Barnes believed the City should not agree to a price until the cost of community benefits was determined. SUBSIDIARY MOTION: Council Member Barnes moved to postpone the disposition of the stadium and real estate until the City has a complete proposal including identification of members of SRB Management, an Exclusive Negotiating Agreement with Angels Baseball, determination of market value of the name, a second appraisal of the land and stadium, negotiation of the parking encumbrances, and set a hard floor for community benefits deducted from the total property value and postpone until January 28, 2020, seconded by Council Member Moreno. City Council Minutes of December 20, 2019 Page 13 of 21 DISCUSSION: Council Member Moreno thanked the residents who came out to speak on this item and addressed Community Workforce and Project Labor agreements. He expressed concern that this item makes the most fiscal sense for the City of Anaheim. In response to Council Member Moreno's inquiry, Mr. Zapata read and responded to questions asked via letter by Senator Tom Umberg and Assemblymember Tom Daly which he advised would be answered by various staff. Mr. Belmer advised the purchase price was $325,000,000 given the existing encumbrances and as validated by the appraisal process. He noted there will be no reduction of the purchase price and the City will receive a commensurate value at the discretion of the City Council. He also advised the encumbrance of the parking spaces were determined during the appraisal process. Lastly, he noted the City was obligated to provide 12,500 parking spaces and that number can only be reduced through negotiations and cannot be done unilaterally. Mr. Belmer advised the City was hoping to close on the property before the five year deadline and conceded the property could fluctuate in value during that time, where either party is assuming some risk by valuation increasing or decreasing over that time. Kevin Kelley, Managing Partner, Husch Blackwell, advised the purchase price was set at $325,000,000 and there was no intention to change that price. In response to Council Member Moreno's inquiry, Mr. Kelley advised that an economic analysis was not completed to project the land value in five years. Mr. Belmer advised that community benefits were discussed conceptually, such as affordable housing, parks and open space beyond requirements, roads and pedestrian access beyond requirements. Mr. Kelley advised the purchase agreement does not specifically outline the community benefits. In response to Council Member Moreno, Mr. Belmer advised there is a provision in the DDA that includes other items that the parties may mutually have interest in pursuing. He further advised that economic models of possible benefits have not been contemplated at this time. Mr. Belmer advised that other offers to purchase the property have not been contemplated as there was an existing lease with Angels Baseball. Mr. Zapata stated that APACF presented an offer of approximately $26,000,000, which was now part of the public record. In response to Council Member Moreno, Mr. Belmer advised residents will know if the proposed sale achieved the maximum financial value of the sale when the DDA is completed. In response to Council Member Moreno's inquiry, Mr. Kelley advised that the purchase price will not shrink. He explained that the purchase can be taken in all cash or in cash and commensurate value. He further explained that community benefits will be discussed in the DDA. Mr. Belmer referenced Section 4.1 of the Purchase and Sale Agreement. Council Member Moreno questioned what the City would be bound to if approved today, to which Mayor Sidhu referred to the staff report. Council Member Moreno stated his position in examining this as a real estate deal and expressed his support for postponing the item. He understood the vote today would be regarding selling the land versus leasing the land. In response to Council Member Moreno's inquiry, Larry Kosmont, Chairman and CEO, Kosmont and Associates, advised there were no models to evaluate a fair and equitable assessment between a ground lease and a sale transaction. City Council Minutes of December 20, 2019 Page 14 of 21 In response to Council Member Moreno's inquiry, Mr. Belmer advised the Angels' proposal was to purchase the property and not to lease. Mr. Belmer referred back to the 2014 Waronzof appraisal and noted the fee simple purchase scenario yielded a higher value than a lease scenario. Council Member Moreno expressed interest in ensuring the City has completed its due diligence in vetting the sale. In response to Council Member Moreno's inquiry, Mr. Kosmont advised that if the site was a vacant lot, more development and density could be put on the site and there would be potential to yield more taxes, but that alternative analysis had not been completed. In response to Council Member Moreno's inquiry, Mr. Norris noted he could not speak for the Angels. He advised he completed his work based on Keyser Marston Associates' input for development density. He also noted that RCLCO Real Estate Advisors' input may have an impact on the appraisal but he cautioned he was not privy to that information. He advised his numbers were closer to the appraisal done in 2014/2015. He felt the density of development suggested in this valuation scenario was reasonable in terms of what the market would allow in the highest and best use. In response to Council Member O'Neil's inquiry, Mr. Belmer advised that the presence of the team was arguably an economic engine to facilitate and help maximize the development of the site, understanding there was a parking obligation that goes with it. In response to Council Member O'Neil's inquiry, Convention, Sports & Entertainment Executive Director Tom Morton advised the City earns income from the lease of the stadium and onsite sales tax from merchandise, food, and beverage, but the City has earned no income from the undeveloped parking lot. Council Member O'Neil addressed the letter received from Senator Umberg and Assemblymember Daly. In response to Council Member O'Neil's inquiry, Mr. Morton clarified that if the PSA execution is approved, the other items will follow suit in phases. He noted the next step would be a six-month Inspection Period. He also advised the DDA, the Angels Commitment Agreement, and the Lease Assignment will come back to City Council. Mr. Morton explained approval of the Purchase & Sale Agreement would set the purchase price, set the process, and waives the Angels' termination right. He further clarified Angels Baseball is bound by its current lease until its termination. In response to Council Member O'Neil's inquiry, Mr. Belmer advised the City intends to pursue who is behind SRB Management during further discussions. Mr. Fabela noted the City should know all parties behind SRB Management by the time the deal is closed. In response to Council Member O'Neil's inquiry regarding the timeline of this process, Mr. Morton provided a brief overview of the history of City Council actions regarding discussions with Angels Baseball during 2019, including agenda items and/or updates each month from January to December. He noted the City has been as transparent as possible with residents while keeping within the law during negotiations. Mayor Pro Tern Kring clarified that she never indicated the City rushed negotiations in 2013 rather that she addressed the monetary starting point when discussion that action. She expressed her support for the item. MOTION OF ORDER: Mayor Pro Tem Kring moved to call the previous question to postpone to January 28, 2020, seconded by Council Member O'Neil. City Council Minutes of December 20,2019 Page 15 of 21 Mr. Fabela advised a call for the question requires a 2/3 vote by City Council. MOTION OF ORDER: Mayor Pro Tern Kring moved to call the previous question to postpone to January 28, 2020, seconded by Council Member O'Neil. ROLL CALL VOTE: AYES — 4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); NOES — 2 (Council Members Barnes and Moreno); ABSENT— 1 (Council Member Brandman). Motion carried. POINT OF ORDER: Council Member Moreno requested a point of order to explain his vote, which was denied by Mayor Sidhu. MOTION OF ORDER: Council Member Moreno moved to appeal the ruling of the Chair, seconded by Council Member Barnes. Council Member Moreno stated his belief that there would be additional time for follow-up questions and discussion on the largest item before the Council and asked his colleagues to allow him to share with the public why he will vote in the manner he was on the motion to postpone. MOTION OF ORDER: Council Member Moreno moved to appeal the ruling of the Chair denying the point of order to explain his vote, seconded by Council Member Barnes. ROLL CALL VOTE: AYES — 2 (Council Members Barnes and Moreno); NOES —4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); ABSENT— Council Member Brandman. Motion failed. DISCUSSION: In response to Council Member Moreno's inquiry, Mr. Fabela advised that discussions would conclude if the motion to postpone passes. Mayor Sidhu stated that he would not support the postponement. SUBSIDIARY MOTION: Council Member Barnes moved to postpone the disposition of the stadium and real estate until the City has a complete proposal including identification of members of SRB Management, an Exclusive Negotiating Agreement with Angels Baseball, determination of market value of the name, a second appraisal of the land and stadium, negotiation of the parking encumbrances, and set a hard floor for community benefits deducted from the total property value and postpone until January 28, 2020, seconded by Council Member Moreno. ROLL CALL VOTE: AYES —2 (Council Members Barnes and Moreno); NOES —4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); ABSENT— Council Member Brandman. Motion failed. DISCUSSION: In response to Council Member Faessel's inquiry, Mr. Kelley advised that SRB can terminate for items found in the inspection and either party can terminate towards the end of the inspection period if an agreement cannot be reached on the DDA, the Angels Commitment Agreement, and the Lease Assignment. He also noted that either party can walk away if community benefits cannot be agreed upon. Mr. Kelley clarified that the item before City Council today was the City agreeing to a price, a process, and a waiver of the right to terminate. In response to Council Member Faessel's inquiry, Mr. Morton explained the Angels' existing right to terminate the existing lease. Under the existing lease, the Angels have until December 31, 2019 to execute that opt-out or termination right which would provide the Angels one (1) more year under the existing lease. Mr. Morton noted the PSA contemplates, if approved, the Angels would waive the opt- out or termination right. Therefore, if the PSA process does not complete, then the existing lease terms would be in full force and effect through at least 2029 and possibly, via three three-year City Council Minutes of December 20, 2019 Page 16 of 21 extensions at the sole choice of the Angels, to 2038. Council Member Faessel stated this was the first step in a lengthy process with multiple review opportunities. Council Member Barnes encouraged Mayor Sidhu to consider adding a cap and a bottom floor on these negotiations. In response to Council Member Barnes' inquiry, Mr. Kelley advised the price is $325,000,000 and the form the City takes the value in was up to the City Council. Council Member Barnes expressed concern this was not clear to the public. Mayor Sidhu explained this was the beginning of the negotiation process, to which Council Member Barnes expressed concern. SUBSIDIARY MOTION: Mayor Pro Tern Kring moved to limit debate to end at 9:15 P.M., seconded by Mayor Sidhu. SUBSIDIARY MOTION: Council Member O'Neil moved to amend the previous motion to limit debate to end at 10:30 P.M., seconded by Mayor Sidhu. AYES —4 (Mayor Sidhu and Council Members Barnes, Faessel, and O'Neil); NOES —2 (Mayor Pro Tem Kring and Council Member Moreno); ABSENT— 1 (Council Member Brandman). Motion carried. SUBSIDIARY MOTION: Mayor Pro Tern Kring moved to limit debate to end at 10:30 P.M., seconded by Mayor Sidhu. AYES —4 (Mayor Sidhu and Council Members Barnes, Faessel, and O'Neil); NOES —2 (Mayor Pro Tem Kring and Council Member Moreno); ABSENT— 1 (Council Member Brandman). Motion carried. DISCUSSION: Council Member Moreno confirmed the items included in the Purchase & Sale Agreement, that there would be no requirement to include Anaheim in the team name, and there was no legal document showing the people involved in SRB Management. Mr. Kelley explained the obligation for the Angels to stay in Anaheim until 2029 was in the existing lease, while the obligation to stay until 2050 will be in the Angels Commitment Agreement with the City while the agreement between the City and SRB includes provisions for SRB to lease/license the stadium to the Angels. Council Member Moreno discussed Scenario 1(b) and its $470,000,000 land value. Mr. Kosmont stated the scenario includes an appraisal with a range of$370,000,000 to $470,000,000 and costs to develop parking affected development scenarios. Mr. Belmer explained this was a hypothetical scenario where shared parking arrangements would have to be pursued and the Angels would have to agree to any changes in parking. He further explained the Purchase & Sale Agreement did not preclude discussions about parking encumbrances in the DDA. Council Member Moreno presented language from the appraisal and questioned the time the property was exposed to the real estate market. Mr. Norris explained such appraisals are done for large development projects to determine fair market value, even if not listed on open market. Mr. Belmer noted the City appraises properties and negotiates with buyers without putting them on the market, and the appraisal contemplated a fair market value rather than a hurried or distressed sale which would then discount the value. Mr. Norris further stated that would potentially require all properties to be listed prior to being appraised, which was not the case, and he expressed confidence that the City was receiving a fair market value purchase price. SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion to include a negotiating point to consider the team name as Anaheim Angels and include Anaheim in the stadium name, seconded by Council Member Barnes. City Council Minutes of December 20, 2019 Page 17 of 21 DISCUSSION: Council Member Moreno clarified that the timeline of discussions was mostly updates from the City Manager, not agendized discussions to provide Council direction, and Council never voted to give formal instructions on the negotiation deal points. Mayor Sidhu said this has already been discussed with and denied by the Angels. Council Member Moreno wanted to agendize this for prior discussion but had not been allowed previously, and he asked that this become a formalized request to the Angels. Mr. Zapata recommended that Council agree to allow the negotiating team to discuss the name of the team and stadium with the Angels. In response to Council Member O'Neil's inquiry, Mr. Fabela advised a private company can agree to the name, such as the Anaheim Ducks, but the City cannot compel them to use a specific name. In response to Council Member Faessel's inquiry, Mr. Fabela advised it was a discussion point and there was no guarantee that anything would be agreed to specifically. Council Member Moreno clarified that he would like to see it in the same manner as the Community Benefits Agreement. Mr. Fabela clarified the language of the motion to ensure it was not a condition precedent and a negotiating point for the team to discuss. In response to Mr. Kelley's inquiry, Council Member Moreno clarified that if approved, the negotiating team would be directed to negotiate for Anaheim in the name. Mayor Sidhu stated the name change had been previously litigated in court and asked Mr. Carpino if Angels Baseball would consider a name change. Mr. Carpino stated Angels Baseball would not negotiate the team name. Mayor Sidhu shared he would not support the amendment. Council Member Moreno expressed concern that negotiations were happening in public and stressed the need for Council to give direction to the negotiating team. In response to Council Member O'Neil's inquiry, Mr. Fabela confirmed naming the Anaheim Ducks as part of the transaction in the Honda Center, of which the City is the landlord and property owner. Council Member Faessel stated his support for including Anaheim in the name but did not feel there was anything to gain by continuing with this negotiating point, considering the position of Mr. Carpino, and felt there was greater gain to work on negotiating community benefits. Mayor Pro Tern Kring agreed the name would never go back to Anaheim Angels and expressed concern with providing false hope to residents by trying to continue with that issue. In response to her inquiry, Council Member Moreno explained that a previous economic report during the previous litigation, it was determined that in 2005 Anaheim lost $8,707,000 in marketing value prior to the playoffs and lost an additional $24,328,000 in marketing value during the playoffs. Council Member Barnes suggested that Anaheim First pressure Angels Baseball to allow the negotiating team to champion this for the residents. Council Member O'Neil clarified the economic information that was referenced was the economic loss to the City, not the economic value of the team name itself. He also stated he was not willing to give away the land for having the name back. Council Member Moreno clarified there was an economic return for the City and it was an important item to be negotiated. City Council Minutes of December 20, 2019 Page 18 of 21 SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion to include a negotiating point to consider the team name as Anaheim Angels and include Anaheim in the stadium name, seconded by Council Member Barnes. ROLL CALL VOTE: AYES —2 (Council Members Barnes and Moreno); NOES — 4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); ABSENT— Council Member Brandman. Motion failed. DISCUSSION: Council Member Moreno explained he supported the postponement, as this was an incomplete proposal without information about what the final price will be. SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion by removing the $325,000,000 price and insert a price to be determined/negotiated at the end of the inspection period, seconded by Council Member Barnes. DISCUSSION: Mayor Sidhu advised he would not support the amendment and felt it was an insult to the negotiating team. Council Member Barnes encouraged Mayor Sidhu to consider thoroughly vetting the recommendations that were being brought before the City Council. Council Member Faessel felt that removing the $325,000,000 would be counterproductive and he was not comfortable with removing the stated price. Council Member Moreno felt the property had not had enough reasonable time to obtain the true fair market value. In response to Council Member Moreno's inquiry, Mr. Kosmont clarified that the reports that speak to the value of taxes were looking at build-out. He noted, in an actual development, the amount of density that comes forward depends on the marketplace and the mixed product. He noted his reluctance to discuss pure density-boosting value because there are factors that drive the end value in a couple of different directions and he could not make a blanket conclusion. In response to Council Member Moreno's inquiry, Mr. Kosmont clarified the reported projected $7,000,000 in revenues were based on a benchmark scenario which then gets used to determine fiscal impacts and this discussion was moving from value of real estate to conversion of fiscal impacts from that real estate. He clarified that he peer reviewed the economic report and, based on what he saw, the revenues seemed plausible at $20,000,000 and all scenarios presented some level of economic opportunity. He further explained the revenues would not be known until an approved deal was in place. He stated there was more economic opportunity in developing the property. Council Member Moreno encouraged City Council to remove the set price of$325,000,000 to allow additional information to come forward and take everything into account. SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion by removing the $325,000,000 price and insert a price to be determined/negotiated at the end of the inspection period, seconded by Council Member Barnes. ROLL CALL VOTE: AYES —2 (Council Members Barnes and Moreno); NOES —4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); ABSENT— Council Member Brandman. Motion failed. DISCUSSION: Council Member Moreno displayed and explained his sale price counter-proposal related to alternative 1(b) including the appraised value and the loss of market value of"Anaheim" in City Council Minutes of December 20, 2019 Page 19 of 21 the team name and explained his reasoning for proposing the calculated price at $539,000,000 with no floor. SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion to amend the $325,000,000 price to $539,000,000 plus actual dollar value of"Anaheim" marketing value over 30 years and for the entire purchase price to be deposited in an escrow account upon completion of the inspection period, seconded by Council Member Barnes. DISCUSSION: Council Member O'Neil stated that was not appropriate to suggest a counter offer at this point in time. In response to Council Member Faessel's inquiry, Mr. Belmer stated $470,000,000 was the top range of Scenario 1(b), which assumes a series of on-site parking that is not controlled within the Angels parcel and was listed as a hypothetical for discussion only. He felt that Council Member Moreno was petitioning City Council for a counteroffer, which was within its discretion. He also noted he cannot comment on the value of the name and it was not included in the appraisal of real property. Mayor Pro Tern Kring expressed her concern with Council Member Moreno making amendments on the fly. She noted she would not support any of Council Member Moreno's amendments. Council Member Moreno expressed his concern that fellow colleagues believed he was simply making up numbers and noted the numbers come from experts and that he was trying to work to the best deal possible on behalf of the City. In response to Council Member Moreno's inquiry, Mr. Norris clarified $470,000,000 was the upper end of the range in one of the scenarios. Council Member Moreno clarified how he derived the $539,000,000. He stated that by accepting this deal, Anaheim was transferring $1,000,000,000 in marketing value to Los Angeles. Mayor Pro Tem Kring stated the City is obligated to provide 12,500 spots so the $470,000,000 was not accurate. SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion to amend the $325,000,000 price to $539,000,000 plus actual dollar value of"Anaheim" marketing value and for the entire purchase price to be deposited in an escrow account upon completion of the inspection period, seconded by Council Member Barnes. ROLL CALL VOTE: AYES —2 (Council Members Barnes and Moreno); NOES —4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); ABSENT— Council Member Brandman. Motion failed. SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion to strike "unless otherwise agreed to by seller" from Section 7.3.5 of the agreement, seconded by Council Member Barnes. DISCUSSION: In response to Council Member Moreno's inquiry related to public subsidies, Mr. Kelley clarified that Section 7.3.5 of the agreement provides that there are no tax credit incentives unless agreed to by the seller. Mr. Fabela read the language of Section 7.3.5 to confirm there were no tax credits incentives unless agreed to by the seller. Mayor Sidhu expressed concern that Council Member Moreno was proposing amendments for political reasons. He supported the findings of the negotiating team. City Council Minutes of December 20,2019 Page 20 of 21 In response to Council Member O'Neil's inquiry, Mr. Fabela stated he agreed with Mr. Kelley's assessment that whether or not the clause "unless otherwise agreed to by seller" was in the provision, it can be amended in the future. He also noted they cannot bind the legislative actions of a future City Council. SUBSIDIARY MOTION: Council Member Moreno moved to amend the original motion to strike "unless otherwise agreed to by seller"from Section 7.3.5 of the agreement, seconded by Council Member Barnes. ROLL CALL VOTE: AYES —2 (Council Members Barnes and Moreno); NOES —4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); ABSENT— Council Member Brandman. Motion failed. MOTION: Mayor Sidhu moved to approve Item No. 1 as presented, seconded by Mayor Pro Tem Kring. DISCUSSION: Council Member Moreno read a written statement as to why he would not support the item based on his representation of the people of Anaheim, looking out for their assets, and how this would affect children in the community. In response to Council Member Moreno's inquiry, Mayor Sidhu stated it was critical to vote by the end of the year because it was promised to Anaheim residents. Mr. Zapata advised the process has been informed by many years of negotiating with Angels Baseball. He also noted the offer is contingent and will unfold over months or years. In response to Council Member Moreno's inquiry, Mr. Carpino advised Angels Baseball would not support an extension of the opt-out until January 31, 2020. Mayor Pro Tern Kring corrected her previous statement and clarified a lease gives the landlord more power of what will be done and built. Council Member O'Neil expressed his support for the item and felt it was a win for the City, taxpayers, and fans. He thanked the negotiating team and Angels Baseball for their hard work. MOTION: Mayor Sidhu moved to approve RESOLUTION NO. 2019-158 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving the Purchase and Sale Agreement for the sale of approximately 153 acres of city-owned property generally located at 2000 E. Gene Autry Way and 2200 East Katella Ave. containing improvements including Angel Stadium of Anaheim and City National Grove of Anaheim and finding that the sale will assist in the creation of economic opportunity pursuant to California Government Code section 52201 and determine that per the California Environmental Quality Act (CEQA) and CEQA Guidelines Section 15168, these actions are within the scope of Final Subsequent Environmental Impact Report No. 339 for the Revised Platinum Triangle Expansion Project including Mitigation Monitoring Plan No. 106C, and associated Addenda, seconded by Mayor Pro Tern Kring. AYES —4 (Mayor Sidhu and Council Members Kring, Faessel, and O'Neil); NOES —2 (Council Members Barnes and Moreno); ABSENT— 1 (Council Member Brandman). Motion carried. Mayor Sidhu thanked all participants including Angels Baseball for their hard work. City Council Minutes of December 20, 2019 Page 21 of 21 ADDITIONS\DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION ITEM: William Fitzgerald, Home Owners Maintaining Our Environment, expressed his concern regarding negotiations by Mayor Sidhu. Council Member Moreno left the meeting at 10:31 P.M. CLOSED SESSION: At 10:31 P.M., Mayor Sidhu recessed to closed session for consideration of the following: 1. CONFERENCE WITH LEGAL COUNSEL— EXISTING LITIGATION (Subdivision (d)(1) of Section 54956.9 of the California Government Code) Name of Case: Lilley v. City of Anaheim, Orange County Superior Court Case No. 30-2018- 01015873 At 10:36 P.M., Mayor Sidhu reconvened the Anaheim City Council. REPORT ON CLOSED SESSION ACTIONS: None COUNCIL COMMUNICATION/AGENDA REQUESTS: Council Member Faessel congratulated Mayor Sidhu on the Angels deal. Mayor Pro Tem Kring thanked her colleagues for the opportunity to serve as Mayor Pro Tem this past year and expressed her pride in serving the City. She wished Council Member Faessel well in serving as Mayor Pro Tern next year and wished everyone a happy and prosperous New Year, Merry Christmas, and Happy Hanukah. Council Member Barnes thanked all who attended the meeting and wished everyone a Happy New Year and Merry Christmas. Mayor Sidhu thanked and congratulated his colleagues and staff for their work making this historic day happen and wished everyone a Merry Christmas and Happy New Year. ADJOURNMENT: At 10:38 P.M., Mayor Sidhu adjourned the special meeting of December 20, 2019. Re tfully submitted; Theresa Bass, CMC �'.`, - City Clerk :N-nom -te r -,gym✓'..'`�,r. wa` a