RES-10442 Construction & Acquisition of Public RoadwayRESOLUTION NO. 10442
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE MAKING CERTAIN FINDINGS
UNDER THE COMMUNITY REDEVELOPMENT
LAW RELATING TO THE CONSTRUCTION AND
ACQUISITION OF A PUBLIC ROADWAY SERVING
A RETAIL SHOPPING CENTER COMMONLY
KNOWN AS THE BLOCK AT ORANGE WITHIN
THE ORANGE MERGED AND AMENDED
REDEVELOPMENT PROJECT AREA; AND
APPROVING AND AUTHORIZING EXECUTION
OF A COOPERATION AGREEMENT WITH THE
ORANGE REDEVELOPMENT AGENCY.
WHEREAS, the City of Orange (herein referred to as the "City") is a municipal
corporation, which exercises governmental functions and powers and is organized and existing
under the laws of the State of California; and
WHEREAS, the Orange Redevelopment Agency, a public body, corporate and politic
herein referred to as the "Agency"), has been duly created, established and authorized to
transact business and exercise its powers under and pursuant to the Community Redevelopment
Law (commencing with Section 33000 of the Health and Safety Code of the State of
California); and
WHEREAS, by Ordinance No. 21-01 adopted on November 27, 2001, the
City Council of the City of Orange adopted and approved the Amended and
Restated Redevelopment Plan (herein referred to as the "Redevelopment Plan") for the
Orange Merged and Amended Redevelopment Project Area (herein referred to as
the Redevelopment Project Area");
and WHEREAS, the Agency is engaged in activities necessary to carry out
and implement the Redevelopment Plan for the Redevelopment Project Area;
and WHEREAS, Orange City Mills Limited Partnership, a Delaware limited
partnership herein referred to as "OCMLP"), Orange City Mills II Limited Partnership, a
Delaware limited partnership (herein referred to as "OCMIILP"), and Orange City Mills III
Limited Partnership, a Delaware limited partnership (herein referred to, individually, as "
OCMIIILP"and, collectively, with OCMLP and OCMIILP as the "Developer") are, collectively,
the owner of an entertainment/retail commercial shopping center in the Redevelopment
Project Area that is commonly known as "The Block at Orange" (herein referred to as the "
Shopping Center");
WHEREAS, the Developer has submitted an application to the City to develop certain
additional private development improvements at the Shopping Center (herein referred to as
the "Retail Expansion"), which has been approved by the City subject to the satisfaction of
certain conditions of regulatory approval; and
WHEREAS, among the conditions of regulatory approval for the Retail Expansion is
the requirement for the construction of an internal roadway linking the inner ring road at the
Shopping Center to the Metropolitan Drive/State Route 22 off- and on-ramp
intersection herein referred to as the "Fourth Leg Improvements") and the conveyance to the Agency
of the Fourth Leg Improvements and the land upon which the Fourth Leg Improvements
are constructed (herein referred to as the "Fourth Leg Site");
and WHEREAS, OCMLP has proposed to enter into an Acquisition Agreement with
the Agency, pursuant to which OCMLP agrees to construct the Fourth Leg Improvements
and,upon completion thereof, to sell and convey the Fourth Leg Site and the Fourth
Leg Improvements to the Agency, and the Agency agrees to reimburse OCMLP up to $4,700,
000 for the substantiated cost of the Fourth Leg Improvements;
and WHEREAS, OCMLP has executed and submitted to the Agency copies of
the Acquisition Agreement in a form that is acceptable to OCMLP;
and WHEREAS, Section 33445 of the Community Redevelopment Law authorizes
the Agency, with the consent of the City Council, to, among other things, pay all or a part of
the value of the land for and the cost of installation and construction of any building,
facility,structure, or other improvement, which are or will, upon completion, become
publicly owned, and are located in or contiguous to the Redevelopment Project Area, upon the
making of the following
findings:a) That the acquisition of land or the installation or construction of the
buildings,facilities, structures, or other improvements are of benefit to the
redevelopment project area by helping to eliminate blight within the redevelopment project
area or providing housing for low- or moderate-income
persons; and b) That no other reasonable means of financing the acquisition of the
land or installation or construction of the buildings, facilities, structures,
or other improvements are available to the
community; and c) That the payment of funds for the acquisition of land or the cost of
the buildings,facilities, structures, or other improvements is consistent with
the implementation plan adopted by the redevelopment agency pursuant to Section 33490
of the Community Redevelopment Law (herein referred to collectively as
the "
33445
WHEREAS, by its adoption of Resolution No. ORA-0512, the Board of Directors
of the Agency (herein referred to as the "Agency Board") has determined that there
were sufficient facts supporting the 33445 Findings and the reimbursement by the Agency
to OCMLP of up to $4,700,000 for the substantiated cost of the Fourth Leg Improvements
in accordance with the terms of the Acquisition Agreement;
and WHEREAS, the City is authorized by Section 33220 of the
Community Redevelopment Law to aid and cooperate with the Agency in the planning,
undertaking,construction or operation of redevelopment projects within the Redevelopment Project
Area,upon the terms and with or without consideration as it determines;
and WHEREAS, in furtherance of the Redevelopment Plan for the
Redevelopment Project Area, the Agency has requested that the City aid and cooperate in the undertaking
of the redevelopment of the Shopping Center with the Retail Expansion by entering into
a Cooperation Agreement with the Agency, pursuant to which the City will inspect
and supervise the construction of the Fourth Leg Improvements in accordance with the terms
and provisions of the Acquisition Agreement. Moreover, the Cooperation Agreement
provides that, following theAgency's acceptance of title to the Fourth Leg Improvements and
the Fourth Leg Site from OCMLP, the City will, itself, accept an easement from the Agency
for street and highway purposes (including an easement for public utilities or other
public improvements) in and to the Fourth Leg Improvements and the Fourth Leg Site, which
will permit the City to properly own, operate and maintain the Fourth Leg Improvements and
the Fourth Leg Site; subiect, however, to the on-going maintenance,
repair, upkeep,rehabilitation, reconstruction and replacement obligations of the Developer pursuant
to the terms and provisions of the Acquisition
Agreement; and WHEREAS, the City is willing to aid and cooperate with the Agency
in the undertaking of the redevelopment of the Shopping Center with the Retail
Expansion by supervising and inspecting OCMLP's construction of the Fourth Leg
Improvements; and WHEREAS, in consideration ofthe City's willingness to aid and cooperate
in the undertaking of the redevelopment of the Shopping Center with the Retail
Expansion by supervising and inspecting OCMLP's construction of the Fourth Leg
Improvements, the Agency desires to contribute the sum of not more than $100,000.00 to the City to be
used by the City solely for inspection and supervision services to be provided by City staff
or a consultant(s) (if any) retained, or to be retained, by the City for that
purpose; and WHEREAS, this City Council desires to enter into a Cooperation
Agreement with the Agency, in the form presented to this City Council, pursuant to which the
City will supervise and inspect OCMLP's construction of the Fourth Leg
Improvements in consideration for the payment by the Agency for such services in an amount not in
excessof 100,
000; and WHEREAS, this City Council has duly considered all of the terms and
conditions of the Cooperation Agreement and believes that its services to be rendered thereunder
and the conveyance of an easement to the City in and to the Fourth Leg Site is in the best
interest
the City and the health, safety, morals and welfare of its residents, and in accord with the
public purposes and provisions of applicable State and local law and requirements, and that
such activities promote the objectives of the Community Redevelopment Law, as well as the
Redevelopment Plan for the Redevelopment Project Area.
NOW, THEREFORE, the City Council of the City of Orange resolves, finds and
determines, on the basis of the facts set forth in the agenda report presented to it and any
testimony received at the meeting at which this matter was considered, as follows:
1. The foregoing recitals are true and correct.
2. The Agency's financial participation in the construction of the Fourth Leg
Improvements and the acquisition of the Fourth Leg Site and the Fourth Leg Improvements
and the subsequent conveyance by the Agency to the City of an easement for street and
highway purposes (including an easement for public utilities or other public improvements)
in and to the Fourth Leg Improvements and the Fourth Leg Site will benefit the City and are
of benefit to the Redevelopment Project Area.
3. Other than the agreement of the Agency to fund the cost of the Fourth Leg
Improvements and to acquire the Fourth Leg Site and the Fourth Leg Improvements, no other
reasonable means of financing the Fourth Leg Improvements or acquiring the Fourth Leg
Site and Fourth Leg Improvements are available to the community.
4. The Agency's payment of funds for the cost of the Fourth Leg Improvements
in accordance with the terms of the Acquisition Agreement and the construction of the Fourth
Leg Improvements will assist in the elimination of one or more blighting conditions inside
the Redevelopment Project Area, and is consistent with the Implementation Plan adopted by
the Agency for the Redevelopment Project Area pursuant to Section 33490 of the of the
Community Redevelopment Law.
5. The terms and provisions of the Cooperation Agreement in the form presented
to this City Council, is approved and the Mayor is authorized and directed to execute, and the
City Clerk to attest, the Cooperation Agreement on behalf of the City.
6. Except as may otherwise be provided in the Cooperation Agreement, the City
Manager is authorized and directed to execute on behalf of the City all documents necessary and
appropriate to carry out and implement the Cooperation Agreement and to administer the City's
obligations, responsibilities and duties to be performed thereunder.
ADOPTED this 8`" day of June, 2010.
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ATTEST:
Mary E. City Clerk, Cit range
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution was duly and regularly adopted by the City Council of
the City of Orange at a regular meeting thereof held on the 8t'' day of June, 2010, by the
following vote:
AYES: COUNCILMEMBERS: Murphy, Cavecche, Dumitru, Bilodeau
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN (RECUSED): COUNCILMEMBERS: Smith
Mary E.~, City Clerk, City~of Orange
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