08-20-1996 Council MinutesAPPROVED BY THE CITY COUNCIL
CITY COUNCIL MINUTES
OF AN ADJOURNED REGULAR MEETING
ON AUGUST 27, 1996.
ORANGE, CALIFORNIA
August 20, 1996
The City Council of the City of Orange, California convened on August 20,1996 at 4:30 P.M. in
an Adjourned Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange,
California.
4:30 P.M. SESSION
1. OPENING
1.1 PLEDGE OF ALLEGIANCE TO THE FLAG
1.2 ROLL CALL
PRESENT - Murphy, Barrera, Mayor Coontz, Spurgeon, Slater ABSENT -
None 1.3
PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS The Assistant
City Attorney announced there is an immediate need to place the following item on
the agenda to be considered in Closed Session: Database Publishing Co. v. City of Orange,
Orange County Superior Court, Case No. 76812..MOTION -
Murphy
SECOND - Slater AYES -
Murphy, Barrera, Mayor
Coontz, Spurgeon, Slater Moved that the need to
discuss the item arose after the posting of the agenda, and to consider this item in Closed
Session.1.4 PROCLAMATIONS - None 2.
CONSENTCALENDAR The items on
the Consent Calendar
will be acted upon by one roll call vote unless members ofthe City Council, staff or
the public request the item to be discussed and/or removed from the Consent Calendar for
separate action.PUBLIC COMMENTS - Consent Calendar Agenda Items:
At this time, the Orange City Council will hear comments on the Consent
Calendar items prior to their voting on the items.If you wish to speak on
a
Consent Calendar item, please complete a speaker's card and hand it to the City Clerk at
the beginning of the meeting. Please identify yourself and the agenda item(s) you wish to address.
The time limit established by the Council for speakers is three minutes per speaker.Page
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CITY COUNCIL MINUTES August 20, 1996
2. CONSENT CALENDAR (Continued)
This agenda contains a brief general description of each item to be considered. Except as
otherwise provided by law, no action shall be taken on any item not appearing in the
following agenda.
2.1 Declaration of City Clerk, Cassandra J. Cathcart, declaring posting of City Council
agenda of an adjourned regular meeting of August 20, 1996 at Orange Civic Center, Main
Library, Police facility at 1107 North Batavia, the Eisenhower Park Bulletin Board and
summarized on Time Warner Communications; all of said locations being in the City of
Orange and freely accessible to members of the public at least 72 hours before
commencement of said adjourned regular meeting.
ACTION: Accepted Declaration of Agenda Posting and authorized its retention as a
public record in the Office of the City Clerk.
MOTION - Barrera SECOND -
Murphy AYES - Murphy,
Barrera, Mayor Coontz, Spurgeon, Slater Item 2.1
was approved as recommended.END OF CONSENT
CALENDAR 3. REPORTS FROM
MAYOR COONTZ - None 4. REPORTS FROM COUNCILMEMBERS -
None 5. REPORTS FROM BOARDS, COMMITTEES,
AND COMMISSIONS - None 6. ADMINISTRATIVE REPORTS 6.1 Report
on the Redevelopment
Plan for the City Shopping Center (The Mills Project).The Interim Director of Economic
Development
presented slides depicting the City Shopping Center in its present state, as
well as surrounding properties.Wayne Wedin, representing The Mills Corporation,
described the unique architectural features of the proposed mall, combining retail, restaurants
and entertainment uses. There is a commitment to quality, to stimulate growth and
economic rebirth in Orange County.The Interim Director of Economic Development
reviewed the following benefit chart which described the estimated benefits that will
accrue to the City and Agency from this project:PAGE 2
CITY COUNCIL MINUTES August 20, 1996
6. ADMINISTRATIVE REPORTS (Continued)
Estimated Sales Tax Revenue - Annual local sales tax revenue of $1.16 million at leaseup,increasing
to $1.78 million at stabilization.Estimated
Property Tax Increment - Property valuation increases to $155 million. Net property tax increment
of $1.02 million.Estimated Employment -
2,500 - 4,000 full time equivalent jobs during construction. 3,000-4,000 permanent full
and part-time jobs upon completion.Estimated Ripple Effect _
Substantial increase in additional taxable retail sales from existing businesses. Substantial increase
in property values of surrounding office building. 400 new jobs elsewhere in City,
2,300 jobs in surrounding communities.Every dollar of
assistance from the Redevelopment Agency will come into the project after a grand opening which
is defined as 500,000 square feet of space rented and operating. The Agency will then
contribute $1,000,000 oftax exempt funds for public improvements related to the project. The
City will receive a well site and and right-of-way along The City Drive,approximately
10 feet. The Redevelopment Agency has pledged 100% ofthe net property tax increment
generated by this project for 20 years and an amount equal to 33% of the local sales tax
revenue generated by the project.Steve
Copenhaver, GRC Financial Consultant, reported in the proposed agreement there is a correction
factor that if a developer does not spend as much as anticipated, or if the project is less costly,
then the amount of the assistance package decreases.Councilmembers
asked questions regarding the point at which stabilization of sales revenues and employment
statistics will take place. The Mills Corporation representative indicated it would take
3 years to get stabilized. Mr. Wedin explained the manner in which employment projections are
calculated.Bob
Bennyhoff, 10642 Morada Dr. requested additional information on what the increase of property
tax and sales tax would be in 20 years, and the status ofthe Main Place law suit.The
Interim Director of Economic Development commented approximately $10 million in property
tax increment. The sales tax is for 12 years, not 20 years, with a cap of $6.3 million.Liz
Link representing The Mills Corporation indicated the law suit is still pending, but will probably
go before ajudge in January, 1997.It
was announced a copy of the Disposition Development Agreement will be available in the City Clerk'
s Office for public review August 22, 1996. The joint public hearing is scheduled for September
10, 1996 at 7:00 p.m.7.
REPORTS FROM CITY MANAGER - None PAGE 3
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CITY COUNCIL MINUTES August 20,1996
8. LEGAL AFFAIRS - None 9.
ORAL PRESENTATIONS Carole
Walters, 534 N. Shaffer, commented this study session was handled better than Wal-Mart
Study Session because people could ask questions rather than having to write them out.
RECESS
MOTION
SECOND
AYES
Murphy Barrera
Murphy, Barrera,
Mayor Coontz, Spurgeon, Slater The City Council
recessed at 5:15 p.m. to a Closed Session to consider Database Publishing Co.v. City of
Orange, Orange County Superior Court, Case No. 76812.10. ADJOURNMENT MOTION
SECOND AYES
Murphy
Barrera
Murphy,
Barrera, Mayor
Coontz, Spurgeon,
Slater The City Council adjourned at 5:
35 p.m.CASSANDRA J. C THCART, CMC CI
YCLERK l'JOANNE COONTZ MAYOR
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