ARA2006/12/12ANAHEIM REDEVELOPMENT AGENCY MEETING
DECEMBER 12, 2006
The Anaheim Redevelopment Agency met in regular session in the Chambers of the
Anaheim City Hall located at 200 South Anaheim Boulevard.
Present: Chairman Curt Pringle, Agency Members: Lorri Galloway, Bob Hernandez,
Lucille Kring and Harry Sidhu
Staff Present: City Manager Dave Morgan City Attorney Jack White, and Acting
Secretary Catherine Godoy
A copy of the agenda for the meeting of the Anaheim Redevelopment Agency was
posted on December 8, 2006 on the kiosk outside City Hall.
At 5:50 P.M., Chairman Pringle called the regular meeting of the Anaheim
Redevelopment Agency to order for a joint public comment session with the City
Council and the Housing Authority.
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS: No comments offered during the Joint Agency/Housing
Authority/Council public comment session related to the Redevelopment Agency
agenda.
At 6:00 P.M., Chairman Pringle recessed the City Council session to consider the
Redevelopment Agency agenda.
CONSENT CALENDAR:
Agency Member Hernandez removed Item No. 1 from the consent calendar for further
discussion. Agency Member Sidhu moved to approve the balance of the consent
calendar (Item 2), seconded by Agency Member Hernandez. Roll call vote: Ayes - 4:
Chairman Pringle, Agency Members: Galloway, Hernandez and Sidhu. Abstention - 1;
Agency Member Kring. Noes - 0. Motion Carried.
2. Approve the Anaheim Redevelopment Agency meeting minutes of November
13, 2006 and November 28, 2006.
END OF CONSENT:
1. RESOLUTION NO. ARA 2006-013 RESOLUTION OF THE ANAHEIM
4343 REDEVELOPMENT AGENCY APPROVING A COOPERATION AGREEMENT
BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND ANAHEIM
HOUSING AUTHORITY; CONSENTING TO THE AFFORDABLE HOUSING
AGREEMENT BETWEEN THE HOUSING AUTHORITY AND ELM STREET
COMMONS, A CALIFORNIA LIMITED PARTNERSHIP; AND MAKING
CERTAIN OTHER FINDINGS. (See Housing Item #5}
ANAHEIM REDEVELOPMENT AGENCY MINUTES
December 12, 2006 Page 2 of 4
Elisa Stipkovich, Community Development /Director, reported the Housing Authority
had approved contract guidelines for the preparation of an affordable housing
agreement with Elm Street Commons on November 28, 2006. That agreement, she
stated, had now been prepared and was before the Housing Authority on this date for
approval, and Item No. 1 reflected action to approve a cooperation agreement between
the Agency and the Housing Authority consenting to the affordable housing agreement
with Elm Street Commons. She pointed out there was a change to the staff report
recommending revising the contract language to eliminate the requirement for a
performance bond and substituting an irrevocable letter of credit in favor of the Housing
Authority for $2.25 million as a way of allowing the Authority to be repaid if the project
should not be completed.
Agency Member Hernandez requested a continuation of this item to allow further
briefing by staff, remarking he had met with the developer since the November 28tH
meeting when the change in the residual receipts distribution had been proposed, but
had not yet met with staff to become fully versed on the issues; Agency Member Kring
seconded the motion. Chairman Pringle remarked that he was ready to take action on
the item, but was hoping the residual receipts distribution could be amended back to
the 50/50 split recommended by staff. Agency Member Sidhu questioned whether
continuing the item would place the project in jeopardy with State deadlines and Ms.
Stipkovich commented it was her understanding that the developer wished to close by
January 30tH and staff had worked to make that deadline. Mayor Pringle asked the
applicant to respond to that question and Richard Alatorre, representing the applicant,
emphasized the project schedule was tight and continuing the item would create
problems for the applicant who was trying to close the deal on all the remaining issues.
After some discussion among the Agency members, Agency Member Sidhu offered a
counter motion to approve the project as proposed by staff, seconded by Council
Member Galloway. Chairman Pringle called for a vote on Agency Member
Hernandez's motion to continue the item. Roll call vote: Ayes - 2; Agency Members:
Hernandez and Kring. Noes - 3: Chairman Pringle, Agency Members: Galloway and
Sidhu. Motion Fails.
Prior to the roll call vote on Agency Member Sidhu's counter motion, Chairman Pringle
reiterated his concern expressed at the last meeting related to the distribution of
residual funds with staff recommending an 85/15 split and the developer requesting a
50/50 distribution which had ultimately been approved on November 28th. Chairman
Pringle asked the applicant if the 50150 distribution was amended at this point back to
an 85/15 basis, would the project be at risk. Mr. Alatorre stated if this was a significant
issue to the Agency, the developer was prepared to accept the 50/50 distribution.
Mayor Pringle commented that the project had passed on a 3:2 vote on November 28tH
due to the last minute revision of the residual receipts distribution and it was his hope
that this project would receive a unanimous vote of support. Mr. Alatorre added that if
it took an 85/15 split to accomplish a unanimous vote, it would be acceptable to the
applicant.
Agency Member Sidhu stated if the developer was willing to work in partnership with
the City and move this project forward he would amend his motion to move adoption of
the Resolution approving the Cooperation Agreement and consenting to the Affordable
Housing Agreement with Elm Street Commons subject to 1) amendment of Section
202 of the Affordable Housing Agreement, amendment to Section 3 of the Promissory
Note and other conforming amendments as necessary to revise split of residual
ANAHEIM REDEVELOPMENT AGENCY MINUTES
December 12, 2006 Page 3 of 4
receipts, as defined in the Agreement from an equal 50-50 split to 85 percent Housing
Authority and 15 percent Developer and 2) amendment to Section 204(g) of the
Affordable Housing Agreement to revise construction bond requirements to require that
the Developer obtain an unconditional, irrevocable letter of credit in the amount of
$2,250,000 to be used at the Authority's discretion toward either (a) payment of
construction costs or (b) retirement of Authority loan; seconded by Agency Member
Kring. Roll call vote: Ayes - 5; Chairman Pringle, Council Members: Galloway,
Hernandez, Kring and Sidhu. Noes - 0. Motion carried.
Chairman Pringle reconvened the Council session for a joint Agency/Council public
hearing.
JOINT AGENCYICOUNCIL PUBLIC HEARING:
This is a Joint Public Hearing to consider a Disposition and Development Agreement
(290 South Anaheim Boulevard} with CIM Urban Real Estate Fund, LP, for
rehabilitation of an office building and construction of a new hotel. (This item was
continued from the November 28, 2006 meeting, Item #1
RESOLUTION NO. ARA2006-014 A RESOLUTION OF THE GOVERNING BOARD
OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING THAT CERTAIN
DISPOSITION AND DEVELOPMENT AGREEMENT (290 SOUTH ANAHEIM
BOULEVARD) WITH CIM URBAN REAL ESTATE FUND, LP AND MAKING
CERTAIN FINDINGS IN CONNECTION THEREWITH
Elisa Stipkovich, Community Development Director, provided a brief staff report
indicating the Disposition and Development Agreement was recommended for
approval to allow CIM Urban Real Estate along-term ground lease on the Willdan
property adjacent to City Hall. She added CIM would be required to rehabilitate the
building to accommodate a culinary school and a 132-room boutique hotel and at the
end of 55 years, the property would refer back to the Agency, if CIM did not exercise
their option to purchase. She recommended both the Council and the Agency enter
into the agreement.
Chairman Pringle opened the public hearing for comment and invited the applicant to
speak.
Mary Anderson, CIM Group, stated the project was a two phased proposal, starting
with the culinary school which was anticipated to take one year and ending after five
years from this date with the completion of the hotel, anticipated to be a contributor to
the critical mass of a vital retail area.
With no other public comments, Chairman Pringle closed the hearing.
Agency Member Kring voiced her appreciation for the culinary school program and
indicated her support for the project. Mayor Pringle thanked City staff for negotiating
this deal and CIM for their continued interest in the City. He added the CIM Group,
whose background included revitalization of the Old Town Pasadena and Sacramento
areas, would attract that same kind of energy and excitement to Anaheim, bringing
jobs, students and more residents engaging in a variety of civic activities. Agency
ANAHEIM REDEVELOPMENT AGENCY MINUTES
December 12, 2006 Page 4 of 4
Member Hernandez remarked the culinary institute would be an asset to the
community in providing training for individuals working in the resort area and moved to
approve Resolution No. 2006-250 of the City Council of the City of Anaheim approving
a Disposition and Development Agreement with CIM Urban Real Estate Fund and
making certain findings; seconded by Agency Member Kring. Roll call vote: Ayes - 5;
Mayor Pringle, Agency Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0.
Motion carried.
ADJOURNMENT:
There being no further business, Chairman Pringle adjourned the Anaheim
Redevelopment Agency meeting at 6:19 P.M.
Respectfully submitted, ~
~,~
C~kie'rine Godoy
Acting Secretary, Anaheim Re elopment Agency