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RA1998/08/18ANAHEIM CIVIC CENTER, ANAHEIM REDEVELOPMENT AGENCY AUGUST 18, 1998 PRESENT:CHAIRMAN: Tom Daly PRESENT:AGENCY MEMBERS: Shirley McCracken, Tom Tait, Bob Zemel, Lou Lopez ABSENT:AGENCY MEMBERS: None PRESENT:CITY MANAGER: James Ruth CITY ATTORNEY: Jack White SECRETARY: Leonora N. Sohl EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT: Lisa Stipkovich A complete copy of the agenda for the meeting of the Anaheim Redevelopment Agency was posted at 2:15 p.m. on August 14, 1998, at the City Hall Bulletin Board, (both outside and inside the entrance to City Hall) containing all items as shown herein. Chairman Daly called the regular meeting of the Anaheim Redevelopment Agency to order at 5:27 p.m. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of $36,933.22, in accordance with the 1998-99 Budget, were approved. ADDITIONS TO THE AGENDA: There were no additions to agenda items. ITEMS OF PUBLIC INTEREST: No items of public interest were addressed. PUBLIC COMMENTS - AGENDA ITEMS: There were no public comments on Redevelopment Agency agenda items. CONSENT CALENDAR ITEMS: On motion by Chairman Daly, seconded by Agency Member Lopez, the following actions were authorized in accordance with the reports and recommendations furnished each Agency Member and as listed on the Consent Calendar Agenda. 1.123: RESOLUTION NO. ARA98-6 A RESOLUTION OF ANAHEIM REDEVELOPMENT AGENCY (I) approving and authorizing the execution of the Master Development Agreement by and among the City of Anaheim, the Anaheim Redevelopment Agency and Forest City Development California, Inc., and (II) making certain findings related thereto. (Sportstown.) Submitted was joint staff report dated August 18, 1998 from the Community Development and Planning Departments (with attachments) recommending approval and authorizing the execution of the Master Development Agreement by and among the City of Anaheim, the Anaheim Redevelopment Agency and Forest City Development California, Inc. and making certain findings relating thereto. Chairman/Mayor Daly noted that this item deals with the Sportstown Anaheim Project. It is repeated on the Council consent calendar (Item A12.) as well. If there are members of the public who would like to comment on the matter, he invited them to do so at this time. The Council will be voting on the item both as the Redevelopment Agency and as the Council. Agency/Council Member Tait declared a conflict on this item (Agency 1.) and also on Council Item A12. (He also declared a conflict on item A17 at this time). He will, therefore, be abstaining from any discussion or voting; Agency/Council Member Tait temporarily left the Council Chamber (5:30 p.m.). Chairman/Mayor Daly. The proposed action has been long-awaited and the issue has been discussed in the past. He asked first to hear from staff. He also understands representatives of Forest City Development are present. City Manager, James Ruth. He is proud to present the project which staff, Forest City and Spectrum Group have been working on for almost two years. It is a great legacy for the City. ANAHEIM CIVIC CENTER, ANAHEIM REDEVELOPMENT AGENCY AUGUST 18, 1998 Sportstown Anaheim is another good example of a big idea coming to fruition. It began as a vision to revitalize or maximize a valuable City asset and to serve as a catalyst for growth and development of the stadium area. From its inception, important goals of Sportstown Anaheim have included economic development, providing an entertainment venue for the City’s residents, and creating a link among the stadium, Pond (Arena) and resort districts while creating a destination which is both complementary and distinct from the Anaheim and Disney resorts. Sportstown will provide a new entertainment and retail opportunity for the residents and encourage visitors to spend more time in Anaheim. Mr. Ruth then gave the background of the project coming to fruition today with the proposed action. The project represents a $300 million dollar mixed-use project with 500,000 sq. ft. minimum and up to 750,000 sq. ft. maximum Entertainment/Retail, 250,000 sq. ft. Office Development and 500 Hotel Rooms. It transforms a parking lot to a critical revenue generator. for the City’s General Fund for many years to come. He also explained the objectives that were accomplished, the economic terms reached in the agreement, and the next steps that will be taken if the agreement is approved tonight (see Pg. 2 of the subject staff report). He then introduced James Rattner, Chief Executive Officer of Forest City Development who will give their insight relative to this development opportunity. James Rattner, President and Chief Executive Officer of Forest City Development. This represents an important milestone in the fulfillment of a dream to make Sportstown Anaheim a reality. He thanked the Agency/Council and staff for the opportunity provided them. He then introduced the principals who were present from Forest City as well as the President of the Spectrum Group noting that the most senior and experienced personnel were committed to making Anaheim Sportstown a reality. He then briefed all that had occurred from the time they first became involved with the project to present. He reported that they already have signed agreements with tenants and have more tenants than they can accommodate. Due to the competitive nature of the marketplace, however, he is not at liberty to disclose the names of those tenants but can assure they are all exciting, remarkably innovative and truly unique sports-related uses that will fit the Sportstown Anaheim theme. It is their intention to announce the tenants in the very near future. The vision is to create an authentic experience celebrating American sports and outdoor recreation activities and calls for the inclusion of a variety of activities incorporating nearly every aspect of American team sports, winter sports, and other individual sports-related activities and uses and designed to appeal to every age group. The conceptual plan provides for these uses designed to appeal to every age group. They believe the project will help to promote an extended stay for visitors and tourists in Anaheim and will be complementary to the City’s desire to fulfill its plans for the Resort Anaheim vision. He then read a few important aspects of the agreement at the conclusion of which he stated while they recognize they must be aggressive to meet their commitments, they are confident that they will exceed the City’s expectations for this project. Mr. Rattner then expressed sincere thanks and appreciation to City Manager Ruth and his excellent staff for the highly professional and competent manner in which they have dealt with them. The residents of the City and the City Council are very fortunate to have such talented individuals working on theirs and the City’s behalf. They look forward to working with the City on this exciting project. When completed, it will be something they can all be proud of. He again thanked them for the opportunity and asked for approval this evening. City Manager Ruth then introduced the City’s team who were involved as well as outside consultants Jill Draffen of Arder and Hayden and James Raby, principal from Keyser Marston & Associates who did the economic analysis. Chairman/Mayor Daly stated it is import to focus on what the agreement is and what it is not. This is a business deal between the City and Forest City Development. What will come to them in coming weeks are the specific details of the site plan, the final architecture, and exactly who the tenants will be on those 40 acres. As the City Manager said, the agreement over the next 30 years will bring in approximately $220 million of new revenues to the City after decades of delay and uncertainty about the remarkable holding the City has in the Anaheim Stadium parking lot. The City Manager and staff did a remarkably fine job in bringing the package forward. ANAHEIM CIVIC CENTER, ANAHEIM REDEVELOPMENT AGENCY AUGUST 18, 1998 Agency/Council Member Zemel. He would like a clarification on the $220 million and if that is net present value. City Manager Ruth. Net present value is $90 million. It is $220 million gross. Agency/Council Member Zemel. They need to look at this from today forward. He for one has been critical of the entire stadium situation dating back to when they paid $13 million to settle the old law suits on that property between the Autry’s, the Rams and the City and immediately they went into a much bigger Sportstown and ultimately negotiations with Disney over what is now Edison Field. With that parking lot they were left with a substantially smaller project. The way to look at that is not to look at what might have been in the past but what is possible on this site now. This project completely fills it up and is probably the best that could possibly be done so he, too, would like to commend staff and Forest City. Agency/Council Member McCracken. This project started before she came on the Council. In the first few weeks, she expressed some concerns but she has been very much surprised and pleased with how the project has developed. Tinseltown which will soon be on board and other aspects will be a real asset to the community. The Community Service element as explained by Mr. Rattner is something young people will benefit from. Relative to the financial package, the bottom line in which she is interested is a very good one and something that will bring profits and financial stability over the years -- something they can be very proud of. She thanked the staff who worked so hard to make this a reality and something special for Anaheim. Agency/Council Member Tait entered the Council Chamber (5:55 p.m.). 2.177: Waiving the owner occupancy requirement of the Loan Agreement by and between Dariusz Garstka and Alicia Garstka and the Anaheim Redevelopment Agency, in connection with the Second Mortgage Assistance Program. Agency Member Zemel. He does not want to open the flood gates to precedent setting for these loans. This is a loan made as a second trust deed and a regular program. Now the occupants need to move out. He asked if they gave a specific cause. Lisa Stipkovich, Executive Director of Community Development. The issue had to do more with some problems with their children and youth activities. There have been some threats and problems with gang activity that created the cause for them to vacate. They have left the property and are asking permission to rent it out because they felt it was not safe for their children, particularly one of the sons. They were victims of gang activity. Agency Member Zemel. His concern is if everyone starts doing that they will end up with a neighborhood filled with tenant-occupied properties. Mrs. Stipkovich. She is concerned about that as well. They are looking at it on a one on one basis. They do feel this particular case is justified and do not think it is something that is going to affect the whole neighborhood. Agency Member Zemel. They cannot look at it just from a financial standpoiint. He wants to be sure they have specific individual approvals on these; Mrs. Stipkovich. The Agency and City Council have specific approval and it is stated that way so it is a difficult thing for people to obtain. It has to be done at a meeting and has to be on a hardship basis. Agency Member Zemel asked if the Police Department was informed; Mrs. Stipkovich answered, yes. ANAHEIM CIVIC CENTER, ANAHEIM REDEVELOPMENT AGENCY AUGUST 18, 1998 3.161: Approving minutes of the Anaheim Redevelopment Agency meeting held July 14, 1998 and July 28, 1998. Chairman Daly offered Resolution No. ARA98-6 for adoption. Refer to Resolution Book. A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING AND AUTHORINZING THE EXECUTION OF THE MASTER DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF ANAHEIM, THE ANAHEIM REDEVELOPMENT AGENCY AND FOREST CITY DEVELOPMENT CALIFORNIA, INC., AND (ll) MAKING CERTAIN FINDINGS RELATED THERETO (SPORTSTOWN.) Roll Call Vote on Resolution No. ARA98-6 for adoption. AYES:CHAIRMAN/AGENCY MEMBERS: McCracken, Zemel, Lopez, Daly NOES:CHAIRMAN/AGENCY MEMBERS: None ABSENT:CHAIRMAN/AGENCY MEMBERS: None TEMP. ABSENT:CHAIRMAN/AGENCY MEMBERS: Tait (Abstained) The Chairman declared Resolution No. ARA98-6 duly passed and adopted. End of Consent Calendar. MOTIONS CARRIED. ADJOURMENT: Chairman Daly moved to adjourn, Agency Member Lopez seconded the motion. MOTION CARRIED. (5:58 p.m.) LEONORA N. SOHL SECRETARY