95-048 RESOLUTION NO. 95R-48
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ANAHEIM APPROVING THE COOPERATION
AGREEMENT BY AND BETWEEN AND THE CITY AND
THE ANAHEIM REDEVELOPMENT AGENCY
WHEREAS, the Anaheim Redevelopment Agency (the "Agency") is authorized pursuant
to Health and Safety Code Section 37.~.~..5 to loan funds to owners or tenants for the purpose of
rehabilitating commercial buildings or structures within the redevelopment project areas which
are administered by the Agency; and
WHEREAS, in order to carry out and implement the Redevelopment Plan for the
Redevelopment Project Alpha, the Agency and Fry's Electronics, Inc., a California corporation
(the "Participant"), propose to enter into an Owner Participation Agreement (the "OPAW), which
OPA among other things provides that the Agency will make a loan to the Participant (the
"Agency Rehabilitation Loan") for the purpose of rehabilitating the improvements located on that
certain real property located at 3370 East La Palma (the "Site") and the operation of a retail
computer and electronics store thereon (the "Facility"); and
WHEREAS, the Site has been previously developed for urban use; and
WHEREAS, the Participant has entered into an agreement to purchase the Site; and
WHEREAS, the Agency Rehabilitation Loan is payable to the Participant in annual
disbursements, but the Agency's obligation to make such annual disbursements is contingent upon
the occurrenee of specified conditions; among the conditions precedent to disbursement of
Agency Rehabilitation Loan proceeds are certain conditions which must be satisfied each year,
and which are not certain to occur, including the operation of the Facility for the entire preceding
one year period as a retail computer and electronics store in accordance with use covenants set
forth in the OPA, and the Facility's generation of not less than Twenty Million Dollars
($20,000,000) in taxable sales during the preceding one year period; and
WHEREAS, the amount of each annual disbursement of the Agency Rehabilitation Loan
is established at one-half of the sales and use taxes actually received by the City in the previous
one year period which are attributable to the Facility; such calculation is intended both to
establish the annual payment at an amount which is reasonably related to the consideration
provided by the Participant and received by the City and Agency during each such one year
period, and also to help ensure the availability of sufficient funds in the City's accounts to make
such annual payment; and in no event may the Agency's obligation to make the Agency
Rehabilitation Loan under the OPA be accelerated or made payable in a lump sum payment; and
WHEREAS, the Agency and the City of Anaheim (the "City") propose to enter into a
Cooperation Agreement (the WCooperation Agreement") under which the City will agree to pay to
the Agency all of the funds which are necessary to make all disbursements of the Agency
Rehabilitation Loan required under the OPA; and
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WHEREAS, the Agency's obligation to disburse the Agency Rehabilitation Loan is
conditioned upon the City and the Agency entering into the Cooperation Agreement for the City
to pay to or on behalf of the Agency the annual Agency Rehabilitation Loan disbursements, as
such disbursements become due and payable to the Participant; and
WHEREAS, the OPA further requires that the OPA and the Cooperation Agreement be
validated by a court of competent jurisdiction; and
WHEREAS, the Agency and the City have prepared an initial study pursuant to the
California Environmental Quality Act ("CEQA~) with respect to the rehabilitation and operation
of the Facility pursuant to the terms of the proposed OPA, and such initial study identified
potentially significant effects but mitigation measures agreed to by the Participant would mitigate
the effects to a point where clearly no significant effects would occur, and on that basis the
Agency and City have proposed the adoption of a mitigated negative declaration; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Cooperation Agreement and believes that the Cooperation Agreement is in the best
interests of the City and the health, safety, and welfare of its residents, and in accord with the
public purposes and provisions of applicable State and local law requirements.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES
RESOLVE AS FOLLOWS:
Section 1. The City Council hereby finds and determines that, on the basis of the
initial study and any comments received with respect thereto, the proposed rehabilitation of the
Site and operation of the Facility pursuant to the OPA would not have a significant effect on the
environment, and on that basis approves the proposed mitigated negative declaration. The City
Clerk is authorized and directed to file a Notice of Determination pursuant to the provisions of
CEQA.
Section 2. The Cooperation Agreement is approved. The Mayor is hereby authorized
to execute the Cooperation Agreement on behalf of the City. A copy of the Cooperation
Agreement when executed by the City shall be placed on file in the office of the City Clerk.
Section 3. The City Manager (or his designee) is hereby authorized, on behalf of the
City, to sign all documents necessary and appropriate to carry out and implement the Cooperation
Agreement and to administer the City's obligations, responsibilities and duties to be performed
under the Cooperation Agreement.
Section 4. The City Clerk shall certify to the adoption of this Resolution.
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PASSED, APPROVED AND ADOPTED, this 28th day of March, 1995.
CITY COUNCIL OF THE CITY OF
ANAHEIM
Mayor
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution
No. 95R-48 was introduced and adopted at a regular meeting provided by law, of the Anaheim City Council
held on the 28th day of March, 1995, by the following vote of the members thereof:
AYES: MAYOR/COUNCIL: Lopez, Zemel, Feldhaus, Daly
NOES: MAYOR/COUNCIL: Tait
ABSENT: MAYOR/COUNCIL: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution No. 95R-48 on the
28th day of March, 1995.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim
this 28th clay of March, 1995.
CITY CLERK OF THE CITY OF ANAHEIM
(SEAL)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original
of Resolution No. 95R-48 was duly passed and adopted by the City Council of the City of Anaheim on
March 28, 1995.
CITY CLERK OF THE CITY OF ANAHEIM