RES-10242 Cooperation Agreement Approval 2355 and 2375 N. Tustin St.RESOLUTION NO. 10242
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING AND
AUTHORIZING THE EXECUTION OF A
COOPERATION AGREEMENT WITH THE
ORANGE REDEVELOPMENT AGENCY FOR
CERTAIN PUBLIC IMPROVEMENTS IN THE
VICINITY OF 2355 AND 2375 N. TUSTIN STREET
WITHIN THE ORANGE MERGED AND AMENDED
REDEVELOPMENT PROJECT AREA.
WHEREAS, the City of Orange (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, 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 (the Redevelopment Plan) for the Orange Merged and
Amended Redevelopment Project Area (the Project Area);
and WHEREAS, the Orange Redevelopment Agency, a public body, corporate and
politic the Agency), has been duly created, established and authorized to transact business and
exercise its powers under and pursuant to the Community Redevelopment Law of the State of
California commencing with Section 33000 of the California Health and Safety Code and herein
referred to as the Law);
and WHEREAS, pursuant to the Law, the Agency is carrying out the
Redevelopment Plan for the Project Area;
and WHEREAS, pursuant to the Redevelopment Plan, the Agency desires to enter
into an Owner Participation Agreement (herein referred to as the OPA) with 2375 Tustin
Ave.Associates, L.P., a California limited partnership (herein referred to as the
Owner Participant), whereby the Owner Participant proposes clearing certain real property (
herein referred to as the Site) located within the boundaries of the Project Area, commonly
known as 2355 and 2375 N. Tustin Street, of all structures and constructing (i) a 45,750 square
foot retail building to be leased to, and occupied by, Best Buy Stores, L.P., a Virginia
limited partnership (herein referred to as Best Buy); (ii) a 1,700 square foot retail building; and (
iii)surface parking (herein referred to collectively as the Project);
and WHEREAS, by the adoption of Resolution No. 10241 on November 27, 2007,
the City Council approved Major Site Plan Review No. 0526-07, Conditional Use
Permit No.2673-07, Variance No. 2181-07, and other related entitlements for
the Project, and, in accordance with the requirements of the California
Public Resources Code Section 21000 et seq.: CEQA) certified, as the lead agency under
CEQA, Mitigated Negative Declaration No. 1793-07, which was prepared in
connection therewith, finding that, with the imposition of identified mitigation measures, the Project
will not have a significant effect on the environment;
and WHEREAS, the OPA provides that the Agency will reimburse the Owner
Participant for certain costs incurred by the Owner Participant for its construction of certain
public improvements necessitated by the development of the Project, consisting of the
installation of a three-way traffic signal at the entryway to the Site, the dedication of a corner
cut-off at the entryway to the Project, the alteration of an existing bus bay across from the
Site on the west side of Tustin Street, the dedication of necessary right-of-
way to allow for the construction of a deceleration lane to aid safe access into the
Site, the construction of the deceleration lane, the dedication of traffic signal loops, the upgrade
of an existing water line,the relocation of certain utilities, and the installation of a
closed circuit television system on the traffic signal mast arms (collectively referred to herein
as the Public Improvements); and WHEREAS, the City Council hereby finds and
determines, and the OPA provides,that the Public Improvements are to be constructed by
the Owner Participant under the direction and supervision of the City
Engineer for the following reasons:i)neither the Agency's staff nor the City's staff
are able to expedite the drafting, bidding and administration of
the contracts needed to develop those Public Improvements so as to have
them completed by the time the Owner Participant is ready to open
the
Project to the general public;ii)the City, Agency and the Owner
Participant will benefit from a coordinated plan of design, engineering
and construction of the Public Improvements and the concurrent development
of
the Site with the Project;iii)it would result in lower
administration costs, greater cost savings,controls, and efficiencies, and the
expedited completion of the Public Improvements if the Owner Participant
were to cause the construction of the Public Improvements concurrent
with its construction of
the Project upon the Site;iv)the City will obtain no
advantage from undertaking the construction directly
of the Public Improvements; and v)the provisions of the OP A require
that the Public Improvements be constructed by the Owner Participant as
if they had been constructed under the direction
and
WHEREAS, the City Council hereby further finds and determines that the City has
required the Owner Participant to perform the construction and installation of the Public
Improvements as a condition of regulatory approval of an otherwise private development
project; and
WHEREAS, the City Council hereby further finds and determines that the Agency
will contribute no more money, or the equivalent of money, to the overall project than is
required to perform the Public Improvement work, and, with the exception of accepting and
taking ownership of the Public Improvements following construction thereof by the Owner
Participant, neither the City nor the Agency will maintain any proprietary interest in the
overall Project; and
WHEREAS, the City Council further finds and determines, pursuant to paragraph 2
of subdivision (b) of California Labor Code Section 1720, that only the Public Improvement
work, and not the improvements to be constructed and installed by the Owner Participant on
the Site comprising the Project, shall be a public works subject to the requirements of
Chapter 1 of Part 7 of Division 2 of the California Labor Code; and
WHEREAS, Section 33220 of the Law authorizes public agencies, including the
City of Orange, to aid and cooperate in the planning, undertaking, construction, or operation
of redevelopment projects, including, among other things, causing public improvements to be
furnished adjacent to or in connection with redevelopment projects; and
WHEREAS, the Redevelopment Plan authorizes the expenditure of Agency funds
for the construction of various public improvements abutting the Site, including operational
improvements to Tustin Street (i.e., signing, striping and signal modifications) and utility
relocation; and
WHEREAS, by its execution of the OPA in the form presented to the Agency Board
of Directors for approval, the Owner Participant recognizes that its construction of the Public
Improvements in accordance with the OPA will be subject to State public bidding and
prevailing wage requirements; and
WHEREAS, in furtherance of the Redevelopment Plan for the Project Area, the City
Council desires to enter into a Cooperation Agreement with the Agency pursuant to which
the City will supervise the construction by the Owner Participant of the Public Improvements
in accordance with the terms and provisions of the OPA and, thereafter, will accept title to
the Public Improvements to permit the City to properly own, operate and maintain such
Public Improvements upon the condition that the Agency will pay the Owner Participant the
actual costs of such Public Improvements in accordance with the OPA; and
WHEREAS, Section 33445 of the Law authorizes the Agency, with the consent of
the City Council, to, among other things, pay all or a part of the cost of installation and
construction of certain public improvements, which are or will, upon completion, become
publicly owned, upon the making of certain findings; and
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WHEREAS, the City Council finds and determines that the Agency's financial
participation in the construction of the Public Improvements will benefit the City and that the
City has or will have the ability to maintain the Public Improvements once completed to the
satisfaction of the City; and
WHEREAS, other than the agreement of the Agency to fund the cost of the Public
Improvements, no other reasonable means of financing such Public Improvements are
available to the community; and
WHEREAS, the Agency's payment of funds for the cost of the Public
Improvements in accordance with the terms of the OPA and the construction of the Public
Improvements, themselves, will assist in the elimination of one or more blighting conditions
inside the Project Area, and is consistent with the Implementation Plan adopted by the
Agency for the Project Area pursuant to Section 33490 of the Health and Safety Code; and
WHEREAS, the City Council has duly considered all of the terms and conditions of the
proposed OPA and believes that it is in the best interests of 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange as follows:
1. The foregoing recitals are true and correct.
2. The City Council hereby determines that the Public Improvements are of
benefit to the Project Area and the immediate neighborhood in which the Project is located,
that no other reasonable means of financing such Public Improvements are available to the
community except as provided in the OPA, that the Agency's payment of funds for the cost
of the Public Improvements will assist in the elimination of one or more blighting conditions
inside the Project Area, and is consistent with the Implementation Plan adopted by the
Agency for the Project Area pursuant to Section 33490 of the Health and Safety Code.
3. The City Council hereby consents to the undertaking of the Public
Improvements in accordance with the terms and provisions of the OPA, including Plans (as
defined in the OPA) for the Public Improvements to be approved by the City Engineer and
placed on file with the City's Public Works Department. To that end, the City Council
hereby authorizes the City Engineer to review and approve any and all Plans for the Public
Improvements pursuant to the applicable standards of the City and to take all steps 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.
4. The City Council hereby agrees to aid and cooperate with the Owner
Participant in the planning, undertaking and construction of the Public Improvements in
accordance with the terms and provisions of the OPA and, accordingly, approves the terms
and provisions of the Cooperation Agreement in the form as submitted by the City Manager,
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and authorizes the Mayor to execute, and the City Clerk to attest, the Cooperation Agreement on
behalf of the City.
5. Except as may otherwise be delegated to the City Engineer in the Cooperation
Agreement, the Mayor is hereby further authorized and directed to execute on behalf of the City
all documents (including, but not limited to, a Traffic Signal Easement Agreement and
Certificate of Acceptance thereof) 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 27th day of November, 2007
ATTEST:
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 27th day of November, 2007, by
the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS: Smith, Cavecche, Dumitru, Bilodeau
COUNCILMEMBERS: None
COUNCILMEMBERS: Murphy
COUNCILMEMBERS: None
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