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ARA-2007-007RESOLUTION NO. ARA-2007-007 RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH ZELMAN RETAIL PARTNERS, INC. AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH WHEREAS, the Anaheim Redevelopment Agency (the "Agency") is engaged in implementation of the Redevelopment Plan (the "Redevelopment Plan") for the Anaheim Merged Redevelopment Project (the "Redevelopment Project"); and WHEREAS, the Agency acquired that certain real property totaling approximately twenty- five (25) acres in the Redevelopment Project area and commonly known as 200 to 328 North Beach Boulevard and 2951 to 2961 West Lincoln Avenue (the "Site"); and WHEREAS, in its current condition, the Site contains numerous landfills, is partially vacant, and is a blighting influence on the Redevelopment Project; and WHEREAS, in order to implement the Redevelopment Plan, the Agency desires to enter into that certain Disposition and Development Agreement dated as of June 5, 2007 (the "DDA"} by and between the Agency and Zelman Retail Partners, Inc. (the "Developer") pursuant to which (i) the Agency would sell the Site to the Developer, and (ii) the Developer would construct (a) an approximately 300,000 square foot neighborhood-serving shopping center anchored by a major home improvement store and a national brand grocery retailer and (b) an approximately 26,000 square foot public plaza with extensive landscaping and water elements for community and public use (the "Project"); and WHEREAS, the Project will remove the blight associated with the Site, will mitigate the environmental hazards posed by the landfills and will provide for the revitalization of the West Anaheim neighborhood and the Redevelopment Project; and WHEREAS, pursuant to Section 33433 of the California Redevelopment Law ("CRL"), the Agency is authorized, with the approval of the City Council of the City of Anaheim (the "City") after conducting a public hearing, to sell or lease the Site for development pursuant to the Redevelopment Plan upon a determination by the City Council that the consideration for such sale or lease is not less than fair reuse value at the use and with the covenants and conditions and development costs authorized by the sale or lease; and WHEREAS, in connection with the DDA, Agency staff has had prepared, and the Agency has reviewed and considered, a "33433 Summary Report" setting forth: (i) the cost of the DDA to the Agency, (ii) the estimated value of the interests to be sold to the Developer, determined at the highest and best uses permitted under the Redevelopment Plan, (iii) the estimated value of the interests to be sold, determined at the uses and with the conditions, covenants and development costs required by the sale, and (iv) the purchase price for the Developer's acquisition of the Site; and WHEREAS, the 33433 Summary Report concludes that the purchase price for the Site under the DDA equals fair market value; and WHEREAS, the DDA contains all of the terms, covenants, conditions, restrictions, obligations and provisions required by state and local law; and WHEREAS, the Project will assist with the removal of blight and is consistent with the implementation plan adopted by the Agency for the Redevelopment Plan pursuant to Section 33490 of the CRL (the "Implementation Plan"); and WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA"), and the CEQA Implementing Guidelines (14 California Code of Regulations Section 15000 et seq.) (the "Guidelines"), the City of Anaheim (the "City") adopted and certified Anaheim General Plan and Zoning Code Update Environmental Impact Report No. 330 (the "General Plan Update EIR") in connection with the City's General Plan update in 2004 (as updated, the "General Plan"); and WHEREAS, the General Plan Update EIR is a Program EIR under CEQA and the Guidelines, addressing the environmental impacts from the City's ultimate build-out, considering maximum densities and the effects thereof, and establishing a mitigation monitoring program which requires, among other things, subsequent focused studies and the implementation of mitigation measures where required; and WHEREAS, the Agency has reviewed and determined that the Project falls within the scope of the activities addressed in the General Plan Update EIR and the General Plan Update EIR adequately describes the Project for purposes of CEQA because: (i) the General Plan Update EIR is a Program EIR, (ii) the Project is consistent with the General Plan, and (iii) the Project presents no new environmental effects which could occur that were not examined in the General Plan Update EIR, and (iv) there is no new information to suggest that new mitigation measures would be required of the Project; and WHEREAS, the Final Environmental Impact Report for the West Anaheim Commercial Corridors Redevelopment Project (the "West Anaheim Final EIR") and the Addendum to the West Anaheim Final EIR, adopted in connection with the granting of entitlements for the Project, (the "West Anaheim Addendum") analyzed the impacts of zoning for commercial development for this area, the boundaries of which include the Site; and 2 WHEREAS, pursuant to CEQA and the Guidelines, the Agency has reviewed the Project and determined that the Project is within the scope of the West Anaheim Final EIR and the West Anaheim Addendum, and no further environmental documentation is required because: (i) Pursuant to CEQA Section 21083.3, the Project is a commercial development consistent with the zoning enacted pursuant to the Redevelopment Plan, and there are no impacts (including without limitation cumulative impacts or offsite impacts) peculiar to the Site that were not addressed in the West Anaheim Final EIR and the West Anaheim Addendum, and (ii) Pursuant to CEQA Guidelines Section 15162, (a) no substantial changes are proposed in the Project, and no changes in circumstances under which the Project is being undertaken have occurred which would require major revisions of the West Anaheim Final EIR and the West Anaheim Addendum due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and (b} no new information which was not known at the time the West Anaheim Final EIR was certified as complete shows that the Project will have significant effects not discussed in the West Anaheim Final EIR, or will have more severe effects than those shown in the West Anaheim Final EIR, or will make feasible mitigation measures or alternatives previously found not to be feasible, or different from those considered in the West Anaheim Final EIR, and more specifically addressed in the West Anaheim Addendum, which would substantially reduce significant effects of the Project. WHEREAS, pursuant to the CRL, the Agency Governing Board and the City Council of the City have conducted a duly noticed joint public hearing on the DDA, at which public hearing all persons were given an opportunity to be heard; and WHEREAS, the Governing Board of the Agency has duly considered all of the terms and conditions of the DDA and believes that the Project is in the best interests of the City of Anaheim and the health, safety, morals and welfare of its residents, and is in accord with the public purposes and provisions of applicable state and local law and requirements. NOW, THEREFORE, THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Environmental Assessment. The Agency hereby certifies that it has reviewed the Project and finds that impacts associated with the development of the Project have been previously covered in the General Plan Update EIR, the West Anaheim Final EIR and the West Anaheim Addendum. Section 2. Section 33433 Findings. The Governing Board hereby finds and determines that, based on substantial evidence in the record before it: (i) the consideration for the Agency's disposition of the Site pursuant to the DDA is not less than the fair market value of the Site at its highest and best use in accordance with the Redevelopment Plan, and (ii) the development of the Project will assist in the elimination of blight and is consistent with the Implementation Plan adopted by the Agency for the Redevelopment Plan. Section 3. Approval of DDA. The DDA, a copy of which is on file with the Secretary of the Agency, is hereby approved (substantially in the form on file) and the Executive Director of the Agency is hereby authorized and directed to execute and administer the DDA on behalf of the Agency. THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE GOVERNING BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY THIS FIFTH (5TH) DAY OF JUNE, 2007, BY THE FOLLOWING ROLL CALL VOTE: AYES: Chairman Pringle, Agency Members Hernandez, Sidhu, Galloway, Kring NOES: NONE ABSTAIN: NONE ABSENT: NONE CHAIRMAN ATTES ~ ,r A NCY SECRETAR 65603.1 4