RA1980/12/1680 -105
ANAHEIM REDEVELOPMENT AGENCY
DECEMBER 16, 1980
Council Chamber
Anaheim City Hall
PRESENT: AGENCY MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour
ABSENT: AGENCY MEMBERS: None
PRESENT: CITY MANAGER: William 0. Talley
CITY ATTORNEY: William P. Hopkins
SECRETARY: Linda D. Roberts
EXECUTIVE DIRECTOR: Norman J. Priest
REDEVELOPMENT MANAGER: Susan Schick
Chairman Seymour called the regular meeting of the Anaheim Redevelopment
Agency to order at 1:11 P.M.
MINUTES Approval of minutes was deferred to the next regular meeting.
FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount
of $17,222.26, in accordance with the 1980 -81 Budget, were approved.
161.107: APPROVAL OF CONSTRUCTION DRAWINGS - WILLDAN OFFICE BUILDING:
Executive Director Norman Priest introduced Mr. Dan Heil, one of the
.-- principals of 198 Associates, developers, along with Mr. William Stookey.
Mr. Heil stepped to the west wall of the Council Chambers where construc-
tion plans and elevations were posted, and advised that the exterior
design of the 45,000 square foot commercial office structure to be located
at the northeast corner of Anaheim Boulevard and Broadway was planned to
coordinate with that of the new Civic Center. Class A concrete construction
would be utilized, and they were now in a position to commence construction.
In reply to questions by Agency Member Bay, Mr. Heil reported that the
roof - mounted air conditioning equipment would be totally enclosed and
covered, with only small openings for exhaust,. and an opening in one
set of panels to allow sunlight to reach the solar equipment. Such
equipment would be visible only from any structure of greater height
located south of the building. Screening was illustrated on a sketch
taken to the Council Table by Mr. Jerry Stern, Architect, for review
by Agency Members.
Mrs. Kaywood moved that the construction drawings for the Willdan office
building to be located at the northeast corner of Anaheim Boulevard
and Broadway, be approved. Mr. Overholt seconded the motion. MOTION
CARRIED.
161.157: WILLDAN OFFICE BUILDING - MORTGAGE REVENUE BOND FINANCING:
Mr. Priest recommended that in accordance with Resolution No. ARA80 -16,
adopted by the Agency on June 3, 1980, the Agency adopt rules and
regulations relating to the Agency's mortgage- backed revenue bond
financing program for commercial development as authorized under
California Community Redevelopment Law Chapter 8, Section 33750 et seq.;
80 -106
ANAHEIM REDEVELOPMENT AGENCY DECEMBER 16 1980 1:00 P.M
further, it was recommended that the Agency authorize the issuance, sale
and delivery of a $2,800,000 Commercial Development Revenue Note for the
purpose of funding a Construction and Take -out Loan for the 45,000 -
square foot office building to be developed by 198 Associates (Heil and
Stookey), located at the northeast corner of Anaheim Boulevard and
Broadway. He advised it was essential that the Agency accomplish these
actions at this time.
Ms. Peg McElligott, representing Agency bond counsel, Wilson, Morton,
Assaf and McElligott, addressed the Agency reporting that the tax exempt
102% interest rate had an expiration date just after January 1, 1981.
The action recommended for the Agency this date would encompass a basic
loan agreement between the Agency and 198 Associates, which would be
basically a construction loan assigned to the lender. She explained that
such temporary financing would be tied to the prime interest rate, and
at the completion of the project, the temporary financing would be
discontinued and the final loan would be' issued, The Agency would be
connected only with the construction loan by agreement. The final
financing was calculated for a 25-year loan, having a 72 -year original
term, at the conclusion of which time the interest rate would be
re negotiated, and she noted that the bonds were subject to call after
the 72 -year period. Assignment by the Agency of the final loan would
totally remove the Agency from the picture with the exception of a
tax standpoint, and the project would.be the total security. She
further explained that this method was a tool to allow financing to
proceed, and her firm felt it completely appropriate for the Agency to NNOW
take the recommended actions.
In response to question by Chairman Seymour, Ms. McElligott stated there
would be no liability to the City at the end of the 72 -year period if
for any reason the loan were not re negotiated, or the bonds were called
and no lender was available; there would be foreclosure on the building,
with no liability to the original borrower. It would make no difference
if the equity were not there.
Mr. Bay requested clarification of whether the same opportunity had been
extended to other developers in the Downtown Redevelopment Project Area.
Mr. Priest reported that a resolution of intent for the identical pur-
pose had been adopted by the Agency for Watt Commercial Properties
(Towne Centre), however it had not yet reached fruition. In the near
future, a similar recommended agreement would be presented involving
the Freedmans of Hurst Jewelers. Others were currently under consid-
eration.
Mr. Seymour offered Resolution Nos. ARA80 -45 and 8OR -46 for adoption.
Refer to Resolution Book.
RESOLUTION NO. ARA80 -45 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT
AGENCY ADOPTING RULES AND REGULATIONS RELATING TO ITS COMMERCIAL NN
DEVELOPMENT FINANCING PROGRAM.`
80 -107
ANAHEIM REDEVELOPMENT AGENCY DECEMBER 16 1980, 1:00 P.M.
RESOLUTION NO. ARA80 -46 A RESOLUTION AUTHORIZING THE ISSUANCE, SALE
AND DELIVERY OF ANAHEIM REDEVELOPMENT AGENCY COMMERCIAL DEVELOPMENT
REVENUE NOTE, FOR THE PURPOSE OF FUNDING A CONSTRUCTION AND TAKE -OUT
LOAN TO ONE NINETY EIGHT ASSOCIATES.
Roll Call Vote:
AYES: AGENCY MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
Chairman Seymour declared Resolution Nos. ARA80 -45 and ARA80 -46 duly
passed and adopted,
161,158: PUBLIC HEARING - SALE O ST RUCTURE, 122 -124 NORTH HELENA STREET:
Public hearing was held to consider the proposed sale of structure
located at 122 -124 North Helena Street. Mr. Priest announced that the
proposed purchaser of the property had requested that consideration of
the proposed agreement for purchase be withdrawn.
Chairman Seymour asked if anyone was present who wished to address the
Agency on the proposed sale; there being no response, he declared the
public hearing closed.
On motion by Mr. Seymour, seconded by Mr. Bay, request to withdraw the
proposed agreement for purchase of subject property was accepted. MOTION
CARRIED.
ADJOURNMENT There being no further business to come before the Anaheim
Redevelopment Agency, Mrs. Kaywood moved to adjourn. Mr. Roth seconded
the motion. MOTION CARRIED,
ADJOURNED: 1:35 P.M.
_ "4-.�
LINDA ROBERTS SE ETARY