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1993/02/26City Hallt Anaheimt California - COUNCIL MINUTES - FEBRUARY 26, 1993 - 2500 P.M. The City Council of the City of Anaheim met in special session. PRESENTs ABSENT= PRESENT: COUNCIL MEMBERS: Hunter, Simpson, Daly COUNCIL MEMBERS: Feldhaus, Pickler CITY MANAGER: James Ruth CITY ATTORNEY= Jack White ASSISTANT CITY CLERK= Ann M. Sauvageau The special meeting was duly noticed before the hour of 2:00 p.m., on Friday, February 25, 1993 and agenda for the meeting was posted at 1:30 p.m. also on February 25, 1993. Mayor Daly called the special meeting of February 26, 1993, to order at 2=00 p.m. Council Member Feldhaus and Pickler were absent. RECESS - CLOSED SESSION: City Attorney Jack White requested a Closed Session to consider the following item: To meet with and give instructions to the City's negotiator concerning the price and terms of payment relating to renegotiation of the Site Lease between the City of Anaheim, as lessor, and the Anaheim Public Improvement Corporation, as lessee, and the Lease Agreement between the Anaheim Public Improvement Corporation, as lessor, and the City of Anaheim, as lessee, each of which agreements is dated as of December 1, 1990, and the related Amended and Restated Arena Management Agreement between the City of Anaheim and Ogden Facility Management Corporation of Anaheim, dated as of December 18, 1990, and other proposed agreements conveying an interest in real property to Disney Sports Entertainment, Inc., relating to the real property known as the Anaheim Arena and described as Parcel 1 of Lot Line Adjustment Plat No. 240 in the City of Anaheim. RECESS: The Council thereupon recessed into Closed Session. Council Members Feldhaus and Pickler were absent. (2:02 p.m.) AFTER RECESS: Mayor Daly called the special meeting to order, all Council Members being present with the exception of Council Members Feldhaus and Pickler. (4:11 p.m.) Mayor Daly. The Council has been in Closed Session since 2:00 p.m. This is a special meeting of the City Council wh&ch was noticed yesterday. He asked to hear from the City Manager.- City Manager James Ruth. It is a pleasure to present to the Council today two agreements among Disney, Ogden and the City for Council consideration for a National Hockey League team to play at the Anaheim Arena. The documents are the results of hundreds of hours of negotiations between the concerned parties. The City of Anaheim and staff are pleased they were able to work with Disney and Ogden over the last few days to consummate the documents. The effort is going to bring a significant benefit to the City of Anaheim and Orange County and will pave the way for the Disney organization to get final approval from the National Hockey League. They are planning to execute that agreement on Monday, March 1, 1993 to assure that hockey comes to Anaheim in 1993. He then recognized some of the staff people from the agencies involved: 136 City Hall, Anaheim, California - COUNCIL MINUTES - FEBRUARY 26, 1993 - 2:00 P.M. From Disney (Disney Sports Enterprises Inc.): Larry Murphy, Spencer Newman, Jeff Smith, Ken Wong and Michael Eisner who joined them in one of the meetings in the past week. Ogden Facility Management Corporation of Anaheim: Doug Logan, Bill Andrews, Marie Fogarty and John MacAniff. City Staff: Gary Johnson, Public Works Director and City Engineer, Jill Draffin (Attorney from Buckhalter), Ron Bates, City Consultant and Greg Smith, General Manager Anaheim Stadium. He continued, there has been a great deal of effort expended on the part of all involved. The parties came to an agreement at 1:30 this morning and the attorneys then took over the drafting of the documents. The last agreement was completed at 1:30 this afternoon. All the documents have been executed, approved and attested to. He feels that the effort is one that the City can be rest assured, comfortable with, and very proud of. An essential element of the agreement - the concern the City had in terms of exposure on the 1.5 million dollars - was waived by Ogden Corporation. Thus, the exposure to the City of about 20 million dollars (2.5 million for 8 years) by getting one franchise, 8 million dollars of that exposure is eliminated. Through the negotiations with Ogden, the City was able to forego the remaining 1.5 million for the next 3 years leaving a potential obligation of 7.5 million. He is saying potential because everybody who has been involved in the project feels that the synergism and great ability Disney will bring to the project along with Ogden will be turning a profit very shortly. Therefore, the additional 1.5 million would go away forever. The bottom line is, Anaheim gets a 120 million dollar facility at the end of the 30-year management agreement with minimal exposure over the next 8 years and have a great asset in the City which will be a great revenue producer and a great family entertainment center as well as sports center for the City. Mayor Daly. Staff recommendation to the Council also mentions the sales tax revenues that will accrue to the City over the coming years. He thanked the City Manager for all the hard work in the last few days along with City Attorney Jack White. If he (Daly) tried to think of everybody that was involved and should be thanked, it would be a very long list. Mr. Ruth has been one of the driving forces behind the project since day one. They appreciate that he has raised the project a notch higher and solidified the financial footings underneath the project and secured an even better arrangement for Anaheim via'the negotiations. Mayor Daly then asked to hear any comments from Council members noting that Council Member Feldhaus and Council Member Pickler had previous important commitments outside the City (Northern California and San Diego) and were unable to be present. Council Member Hunter. He commented that former Council Member Bill Ehrle from the very inception was one of the. very strong supporters of the Arena project and remained committed all the way through the time of his defeat. never waivered an inch regarding the Arena project. He Council Member Simpson. It is another "red letter" day in Anaheim's history. The press asked him if he had any doubts -- he said no. The City has a history of taking projects that people say will not work and make them work. 137 City Hall, Anaheimr California - COUNCIL MINUTES - FEBRUARY 26, 1993 - 2:00 P.M. The Convention Center is an example of that - it is now in its fourth expansion. No doubt the Arena will be a successful project. He would like to reiterate all the thanks Mr. Ruth gave. He wished those who were nay sayers at the outset of the Arena project were present today to hear the final positive outcome. MOTION: Council Member Daly moved to approve (1) a consent, traffic and parking and Non-Disturbance and attornment agreement among the Ogden Facility Management Corporation of Anaheim, Disney Sports Entertainment, Inc., and the City of Anaheim; and (2) approving a letter agreement dated February 26, 1993, between Ogden Allied Facilities Management Corporation of Anaheim and City of Anaheim relating to a commitment by Disney Sports Entertainment, Inc., to exhibit the home games of its National Hockey League Franchise in the Anaheim Arena. Council Member Hunter seconded the motion. A Roll Call Vote was then taken on the motion: AYES: NOES: ABSENT: Hunter, Simpson, Daly None Feldhaus, Pickler ADJOURNMENT: By General Consent the special meeting of February 26, 1993 was adjourned. (4:21 p.m.) ANN M. SAUVAGEAU, A~ TANT CITY CLERK 138