RES-10061 Authorization of Sale of Real Property W. Chapman Ave.I
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RESOLUTION NO. 10061
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE AUTHORIZING THE SALE OF
REAL PROPERTY BY THE ORANGE
REDEVELOPMENT AGENCY TO VALENTINE
REALTY COMPANY, INC. AND IDC WEST, LLC,
AS TENANTS IN COMMON, IN ACCORDANCE
WITH THE TERMS OF AN OWNER
PARTICIPATION AGREEMENT BY AND
BETWEEN THE ORANGE REDEVELOPMENT
AGENCY AND VALENTINE REALTY COMPANY,
INC. AND IDC WEST, LLC.
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 ofthe State of
California; 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 (commencing
with Section 33000 of the Health and Safety Code of the State of California and hereinafter
referred to as the CRL); and
WHEREAS, the Amended and Restated Redevelopment Plan (the Redevelopment
Plan) for the Orange Merged and Amended Redevelopment Project Area (the Redevelopment
Project Area) was duly approved by the Orange City Council on November 13, 2001 by
Ordinance No. 2101, pursuant to the CRL; and
WHEREAS, the Agency is engaged in activities necessary to carry out and implement
the Redevelopment Plan for the Redevelopment Project Area; and
WHEREAS, Valentine Realty Company, Inc. and IDC West, LLC, as tenants in
common (collectively, the Participant), have proposed to enter into an Owner Participation
Agreement (the OPA) with the Agency, pursuant to which the Agency will convey to the
Participant certain Agency-owned real property in the Redevelopment Project Area consistingoffour (4) parcels of real property commonly known as 1103 W. Chapman Avenue, 1031 W.
Chapman Avenue, 1005-1015 W. Chapman Avenue and 112 N. Citrus Street (collectively,the Agency Parcels) for redevelopment by the Participant, along with the Participant's Parcel
as defined below), with a medical office building, consisting of approximately 16,849 squarefeetofgrossleaseablespacewithground-level parking containing approximately 100 parkingstalls (the Project); and
WHEREAS, the Participant owns certain real property in the Redevelopment Project
Area located adjacent to the Agency Parcels and commonly known as 1037 W. Chapman
Avenue (the Participant's Parcel) and, therefore, qualifies as an owner participant under
Section 33339 of the CRL and the Redevelopment Plan; and
WHEREAS, the Agency currently holds a leasehold interest in and to the
Participant's Property under that certain Ground Lease dated as of March 1, 2003 (the
Ground Lease); and
WHEREAS, the Participant has requested the Agency to terminate its leasehold
interest in and to the Participant's Property concurrently with the Agency's conveyance of the
Agency Parcels so that the Participant's Parcel and the Agency's Parcels Parcel (collectively,
the Site) may be developed, improved, used and maintained by the Participant free of the
terms and provisions of the Ground Lease for the Project but in accordance with the terms
and conditions of the OPA; and
WHEREAS, prior to the Agency's acquisition of the Agency Parcels and its
leasehold interest in and to the Participant's Parcel and prior to the Participant's acquisition
of the Participant's Parcel, the City, the Agency's predecessor in interest to the Agency
Parcels, and the Participant's predecessor in interest to the Participant's Parcel executed and
recorded that certain Covenants and Agreement to Hold Property as One Parcel for Building
Requirements, dated July 24, 2003 (the Lot-Tie Agreement), for the purpose of enabling the
Agency Parcels and the Participant's Parcel to be held, conveyed, encumbered, used,
occupied, developed, maintained, and improved as one parcel and not sold or occupied
separately; and
WHEREAS, the Participant has requested the Agency and the City to terminate the
Lot-Tie Agreement concurrently with the conveyance of the Agency Parcels to the Participant
so that the Site may be developed, improved, used and maintained by the Participant free of
the terms and provisions of the Lot-Tie Agreement but in accordance with any and all land
use and other entitlements or approvals which may be required by the City or any other
governmental agency affected by the construction of the Project and in accordance with the
terms and conditions of the OPA; and
WHEREAS, Section 33220 of the CRL authorizes the City to aid and cooperate in
the planning, undertaking, construction or operation of redevelopment projects by, among
other things, making any legal exceptions from building regulations and ordinances and
entering into agreements respecting action to be taken pursuant to any of the powers granted
by the CRL or any other law, notwithstanding any law to the contrary; and
WHEREAS, under the authority of Section 33220 of the CRL, the City authorized
the use of and entered into the Lot-Tie Agreement, which is no longer necessary because the
Site will be owned, developed, operated and maintained as a whole, by the Participant; and
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WHEREAS, the City now desires to aid and cooperate in the planning, undertaking,
construction or operation of the Project by consenting to the termination and release of the
Lot-Tie Agreement; and
WHEREAS, the Participant has executed and submitted to the Agency copies of the
OPA in a form that is acceptable to the Participant, which provides for the conveyance of the
Agency Parcels from the Agency to the Participant for the purchase price and upon the terms
stated therein and calling for the proposed redevelopment of the Agency Parcels and
Participant's Parcel (collectively, the Site) with the Project; and
WHEREAS, as the lead agency under the California Environmental Quality Act
California Public Resources Code Section 21000 et seq. and hereinafter referred to as
CEQA), and pursuant to the authority granted to it by the Orange Municipal Code, the
Planning Commission of the City of Orange heretofore considered the proposed Project and
Negative Declaration 1765-05, including an Initial Study prepared for the Project and
comments received during the public review process, and found no substantial evidence that
the Project would have a significant impact on the environment. Accordingly, the Planning
Commission adopted Negative Declaration 1765-05 and approved Conditional Use Permit
2571-05 and Major Site Plan Review 391-05 for the Project by the adoption of Resolution
No. PC 05-06; and
WHEREAS, after publication of notice as required by law, a joint public hearing has
been duly held by this City Council and the Agency in accordance with Section 33433 of the
CRL on the proposed sale of the Agency Parcels in accordance with the terms and provisions of
the OP A; and
WHEREAS, this City Council has duly considered all of the terms arld conditions of
the proposed sale of the Agency Parcels to the Participant, as set forth in the OP A, and believes
that the sale of the Property by the Agency pursuant to the OP A 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, 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 sale of the Agency Parcels to the Participant and the release and
termination of the Agency's leasehold interest in and to the Participant's Parcel in accordance
with the terms and provisions of the OP A will assist in the elimination of blight and is
consistent with the Agency's adopted Inlplementation Plan for the reasons outlined in the
agenda report presented to this City Council and in the summary report required by Section
33433 of the CRL.
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3. The consideration to be received by the Agency from the Participant for the
sale of the Agency Parcels and the release of the Agency's leasehold interest in and to the
Participant's Parcel in accordance with the terms and provisions of the OPA is not less than
the fair market value at their highest and best use in accordance with the Redevelopment Plan
for the Redevelopment Project Area.
4. The terms and provisions of the OP A between the Agency and the Participant,
with respect to the development of the Project, in the form submitted and executed by the
Participant, are approved and that the Agency is hereby authorized to sell the Agency Parcels
to the Participant and to release the Agency's leasehold interest in and to the Participant's
Parcel in accordance with the terms and conditions of the OP A.
5. The terms and provisions of the Agreement Terminating Lot-Tie Agreement
by and among the City, the Agency and the Participant, with respect to the release and
termination of the Lot-Tie Agreement are approved and that the Mayor is authorized to
execute, and the City Clerk to attest, the Agreement Terminating Lot-Tie Agreement on behalf
of the City.
ADOPTED this 28th day of March, 2006.
ATTEST:
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Mary E.~: City Clerk; 1 Orange
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 28th day of March, 2006, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS: Smith, Ambriz, Murphy, Cavecche, Dumitru
COUNCILMEMBERS: None
COUNCILMEMBERS: None
COUNCILMEMBERS: None
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Mary E.
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