RES-ORA-0471 Owner Participation Agreement Approval 2355 and 2375 N. Tustin St.RESOLUTION NO. ORA-
0471 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
AND AUTHORIZING THE EXECUTION OF (1)
AN OWNER P ARTICIP A TION AGREEMENT
WITH 2375 TUSTIN AVE. ASSOCIATES, L.P.,
A CALIFORNIA LIMITED
PARTNERSHIP,RELATING TO REDEVELOPMENT OF
PROPERTY COMMONLY KNOWN AS 2355 AND 2375
N.TUSTIN STREET IN THE ORANGE MERGED
AND AMENDED REDEVELOPMENT PROJECT
AREA,AND (2) A COOPERATION AGREEMENT
WITH THE CITY OF ORANGE FOR CERTAIN
PUBLIC IMPROVEMENTS IN THE VICINITY OF 2355
AND 2375 N. TUSTIN
STREET.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 (commencing
with Section 33000 of the Health and Safety Code of the State of California and herein referred to
as the Law);
and 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 Agency is engaged in activities necessary to carry
out and implement the Redevelopment Plan for the Project
Area; and WHEREAS, 2375 Tustin Ave. Associates, L.P., a California
limited partnership herein referred to as the Owner Participant) has proposed to enter into an
Owner Participation Agreement (the OPA) with the Agency, pursuant to which the Owner Participant
will clear 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 to construct thereon (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
WHEREAS, the Owner Participant owns the Site and, therefore, qualifies as an
owner participant under Section 33339 of the Law and the Redevelopment Plan; and
WHEREAS, the Owner Participant has executed and submitted to the Agency copies
of the OP A in a form that is acceptable to the Owner Participant, which provides for the
proposed redevelopment ofthe Site with 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 Environmental
Quality Act (California Public Resources Code Section 21000 et seq.: CEQA) certified, as the
lead agency under CEQA, Mitigated Negative Declaration No. 1793-07 (the MND),
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, as a responsible agency under CEQA and
in accordance with Section 15096 of the State CEQA Guidelines, the Agency
has independently reviewed and considered the MND and finds and determines that none of the conditions
set forth in Section 15162 of the State CEQA Guidelines calling for the preparation of a
supplement to the MND have occurred; to wit, no new effects could occur or no new mitigation
measures are required in connection with the redevelopment of the Site with the Project pursuant to
the OP A, and potentially significant environmental effects have been reduced to an acceptable
level in that all significant environmental effects have been eliminated
or substantially lessened; and WHEREAS, the OP A 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 Board of Directors
hereby finds and determines, and the OP A 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
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 supervision of the City.
WHEREAS, the Board of Directors 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 Board of Directors 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 any public body, including the
City of Orange, to aid and cooperate in the planning, undertaking, construction, or operation
ofredevelopment 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
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WHEREAS, by its execution of the OP A 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 OP A will be subject to State public bidding and
prevailing wage requirements; and
WHEREAS, in furtherance of the Redevelopment Plan for the Project Area, the
Agency has requested that the City aid and cooperate in the undertaking of the
redevelopment of the Site by entering 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 OP A 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
WHEREAS, the Board of Directors finds and determines that the Agency's financial
participation in the construction of the Public Improvements will benefit 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 OP A 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, this Board of Directors has duly considered all terms and conditions of
the OP A and believes that development of the Site pursuant to the OP A is in the best interest
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, and that
such activities promote the objectives of the Law, as well as the Redevelopment Plan for the
Project Area.
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NOW, THEREFORE, the Board of Directors of the Orange Redevelopment Agency,
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 MND was presented to the members of the Board of Directors of the
Agency and they have independently reviewed and considered the information contained therein
prior to taking any action to approve or conditionally approve the OP A and any other actions,
proceedings and matters related thereto.
3. That the Project described in the MND and the OPA does not involve new
environmental impacts not covered in the MND and will have no significant effect on the
environment except as identified and considered in the MND.
4. That for the Project described in the MND and the OPA, it is neither necessary
nor required that a subsequent or supplemental negative declaration or environmental impact
report be prepared.
5. Accordingly, the Agency Clerk is hereby authorized and directed on behalf of the
Agency to file with the Clerk of Orange County a Notice of Determination in accordance with
Section 15096(i) of the State CEQA Guidelines.
6. The Board of Directors 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.
7. The terms and provisions of the OP A between the Agency and the Owner
Participant, with respect to the development of the Project, in the form submitted and
executed by the Owner Participant, are approved and that the Chairman is authorized to
execute, and the Agency Clerk to attest, the OP A on behalf of the Agency. A copy of the OP A,
when executed by both parties, shall be placed on file in the office of the Agency Clerk.
8. Except as may otherwise be provided in the OP A, the Executive Director is
hereby authorized and directed to execute on behalf of the Agency all documents necessary and
appropriate to carry out and implement the OP A and to administer the Agency's obligations,
responsibilities and duties to be performed thereunder.
9. The Board of Directors hereby approves the terms and provisions of the
Cooperation Agreement in the form as submitted by the Agency's Executive Director, and
authorizes the Chairman to execute, and the Agency Clerk to attest, the Cooperation Agreement
on behalf of the Agency.
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10. Except as may otherwise be provided in the OPA, the Chairman is hereby further
authorized and directed to execute on behalf of the Agency all documents necessary and
appropriate to carry out and implement the Cooperation Agreement and to administer the
Agency's obligations, responsibilities and duties to be performed thereunder.
ADOPTED this 2ih day of November, 2007.
ATTEST:
M~~~
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 Orange
Redevelopment Agency at a regular meeting thereof held on the 2ih day of November, 2007,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DIRECTORS: Smith, Cavecche, Dumitru, Bilodeau
DIRECTORS: None
DIRECTORS: Murphy
DIRECTORS: None
E{~
Mary E. M Clerk
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