ARA2007/06/05ANAHEIM REDEVELOPMENT AGENCY
REGULAR MEETING OF
JUNE 5, 2007
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 Secretary Linda
Nguyen.
A copy of the agenda for the meeting of the Anaheim Redevelopment Agency was posted on
June 1, 2007 on the kiosk outside City Hall.
At 6:05 P.M., Chairman Pringle called the meeting of the Anaheim. Redevelopment Agency to
order for a joint public comment session with the Anaheim City Council and the Anaheim
Housing Authority.
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS: No comments offered during the Joint Agency/Council/Housing
Authority public comment session related to the Redevelopment Agency agenda.
At 6:40 P.M., Chairman Pringle recessed the Housing Authority to consider the Redevelopment
Agency agenda.
CONSENT CALENDAR: Agency Member Sidhu moved to approve the consent calendar,
seconded by Agency Member Kring. Roll Call vote: Ayes - 5; Chairman Pringle, Agency
Members: Galloway, Hernandez, Kring and Sidhu. Noes - 0. Motion Carried
1. Award the contract to the lowest responsible bidder, Specialized Environmental, Inc., in
4632 an amount not to exceed $824,000, and authorize the Executive Director to execute the
agreement for demolition, asbestos abatement and site clearance services.
2. Approve and authorize the Executive Director to execute a Professional Service
2921.D Agreement with Field Paoli Architects, Inc., to provide architectural and urban design
services.
3. Approve and authorize the Executive Director to execute a Professional Service
4245.A Agreement with Compelex for the Muzeo.
Typographical error correcfed, "Muzeo"
4. RESOLUTION NO. ARA 2007-007 A RESOLUTION OF THE GOVERNING
ARA 161 BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY (i) authorizing negotiations
with the United States Environmental Protection Agency for funding under the
Brownfields Assessment Grant Program, (ii) if selected for such funding, authorizing the
execution of a Cooperative Agreement, any amendments thereto and any related
ANAHEIM REDEVELOPMENT AGENCY MINUTES OF JUNE 5, 2007
Page 2 of 3
documents necessary to participate in the Brownfields Program, and (iii) upon execution
of a Cooperative Agreement, amending the budget for Fiscal Year 2007-08 accordingly.
(Atchison Street housing site)
5. Approve the minutes of the Redevelopment Agency meeting of May 15, 2007.
JOINT AGENCY/CITY COUNCIL PUBLIC HEARING:
6. This is a joint public hearing to consider a Disposition and Development Agreement with
4633 Zelman Retail Partners, Inc., for the development of the Anaheim Westgate Center
project at the northeast corner of Lincoln Avenue and Beach Boulevard.
AGENCY ACTION:
RESOLUTION 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.
Elisa Stipkovich, Community Development Director, reported it was staff's recommendation to
approve a disposition and development agreement that would set forth the terms and conditions
under which the Agency would sell property to Zelman Retail Partners. The property was a 25
acre site owned by the Agency at the corner of Beach and Lincoln. Because 14 of these 25
acres were on a landfill, Ms. Stipkovich explained it had taken a significant amount of time for
the Agency to process a remedial action plan that included stringent landfill closure regulations.
She explained the developer was now ready to proceed with the project and in order to use
HUD 108 funding, the project required being considered an economic development project or
activity which mandated jobs be created for low and moderate income families. With that in
mind, the developer, she announced, would be requiring its major tenants to offer jobs through
the Workforce Investment Program with the anticipation that approximately 600 jobs were being
created on this site.
.She added the Agency requested an MAI appraisal of the site based upon its current condition
and the extraordinary requirements to build on site which would require special foundations,
vapor barriers and various other obligations. The appraisal came in at $17.4 million and staff
recommended the property be sold for that amount, and also recommended the City carry back
the $17.4 million in the form of a note at nine percent interest, also participate in 50 percent of
the cash flow as well as 50 percent of any profits from a sale and 50 percent of equity on
refinancing. Ms. Stipkovich indicated it was probable the project would be refinanced two years
after it was built and the City should receive approximately $20 million at that time. She
explained the Agency's costs consisted of site acquisition, demolition, interest on the 108 loan
and the preparation of the remedial action plan, or approximately $25 million. The revenue
stream from this project during the next 25 years was projected to be $54.5 million, or $24
million in today's dollars. She further explained the net revenue for the Agency, taking into
consideration all costs and all revenues was about $29 million actual dollars. The City would
also receive some benefits from this project in the form of sales tax (expected to be $24 million
or net present value of $10.6 million). She added the City also participated in some of the costs
to prepare the site for development consequently the net number to the City was actually $21
million or a net present value of $7.6 million. In total, she stated, when you take a look at all
costs and all revenues, staff believed there would be a net present value of benefit to the City
ANAHEIM REDEVELOPMENT AGENCY MINUTES OF JUNE 5, 2007
Page 3 of 3
and Agency of $7.6 million or $21 million in actual dollars. She added approval of the
development agreement would get this long-awaited project started.
Chairman Pringle opened the public hearing and receiving no testimony, closed the hearing.
Agency Member Kring congratulated staff on their efforts, remarking West Anaheim residents
had been looking forward to this project for some time.
Agency Member Hernandez moved to approve RESOLUTION NO. ARA 2007-007 OF THE
ANAHEIM REDEVELOPMENT AGENCY approving a Disposition and Development Agreement
with Zelman Retail Partners, Inc., and making certain findings in connection therewith,
seconded by Agency Member Galloway. Roll Call vote: Ayes - 5; Chairman 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 6:50 P.M.
Res cttully submitted,
~\
Linda Nguyen
Secretary, Anaheim Redevelopment Agency
ITEM # 04