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Home My WebLink About10-13-1998 ORA MinutesApPROVED BY THE AGENCY BOARD ON OcTOBER 27, 1998 ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA MINUTES OF A REGULAR MEETING October 13, 1998 The Orange Redevelopment Agency of the City of Orange, California convened on October 13, 1998 at 4:30 p.m. in a Regular Meeting in the Council Chambers, 300 E. Chapman Avenue, Orange, California. 4:30 P.M. SESSION 1. ROLLCALL PRESENT - Murphy, Slater, Coontz, Spurgeon, Alvarez ABSENT - None 2. PUBLIC COMMENTS - None 3.CONSENT CALENDAR Tape 4634 3.1 Declaration of the Clerk of the Orange Redevelopment Agency, Cassandra J. Cathcart,declaring posting of Orange Redevelopment Agency Agenda of a regular meeting of October 13, 1998 at Orange Civic Center, Taft Branch Library at 740 E. Taft Avenue,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 regular meeting.ACTION: Accepted Declaration of Agency Posting and authorized its retention as a public record in the Office of the City Clerk.3.2 Request Agency confirmation of warrant registers dated September 17, 24, and October 1, 1998. ACTION:Approved. 3.3 Request approval of Redevelopment Agency Minutes, Regular Meeting, September 22,1998.ACTION: Approved. 3.4 AGREEMENTS Five Agreements by and among the Orange Redevelopment Agency and eLM LLC and the following five property owners: (1) Geneva B. Fulton; (2) Mary Jeanette Morton,as Trustee of the Mary Jeanette Morton Revocable Trust dated May 17, 1994; (3)Geneva B. Fulton and Mary Jeanette Morton, as Trustees by Order Settling First and Final Account of the Estate of Katherine Fulton; (4) Geneva B. Fulton, Mary Jeanette Morton, as Trustee of the Mary Jeanette Morton Revocable Trust dated May 17, 1994,and Mary Jeanette Morton, as Trustee of that certain Trust created pursuant to that Order Approving Petition for Allowance of Attorneys Fees and for Final Distribution recorded October 24, 1990 as Instrument No. 90-563727 of Official Records; and (5)PAGE 1 ORANGE REDEVELOPMENT AGENCY MINUTES October 13, 1998 3. CONSENT CALENDAR (Continued) Stuart E. and Kay Y Dygert. (RA2100.0 AGR-3122; AGR-3123; AGR-3124; AGR-3125; AGR-3126)SUMMARY: Approval of the Agreements is necessary to protect the Agency from any liability for rents that may be lost by the five property owners as a result of the Agency's relocation of tenants pursuant to a Disposition and Development Agreement DDA") by and between the Agency and CLM LLC, which was approved by the Agency on September 8, 1998 for redevelopment of property bounded by Culver Avenue, Main Street, La Veta A venue and Alpine Road.ACTION: Approved and authorized the Mayor to execute five tri-party Agreements by and among the Agency; CLM LLM, a California limited liability company; and the following property owners: (1) Geneva B. Fulton; ( 2) Mary Jeanette Morton, as Trustee of the Mary Jeanette Morton Revocable Trust dated May 17, 1994; (3) Geneva B. Fulton and Mary Jeanette Morton, as Trustees by Order Settling First and Final Account of the Estate of Katherine Fulton; (4) Geneva B. Fulton, Mary Jeanette Morton, as Trustee of the Mary Jeanette Morton Revocable Trust dated May 17, 1994,and Mary Jeanette Morton, as Trustee of that certain Trust created pursuant to that Order Approving Petition for Allowance of Attorneys Fees and for Final Distribution recorded October 24, 1990 as Instrument No. 90- 563727 of Official Records; and (5) Stuart E. and Kay Y Dygert.FISCAL IMP ACT: Approval of the Agreements will have no impact on the Agency budget. RESOLUTIONS 3.5 RESOLUTION NO. ORA-0349 A Resolution of the Orange Redevelopment Agency amending the First Time Homebuyer Program by authorizing the executive Director to terminate affordable housing Conditions Covenants and Restrictions. (RC2500.G. 1.1)ACTION: Approved.MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez All items on the Consent Calendar were approved as recommended. END OF CONSENT CALENDAR 4. REPORTS FROM DIRECTORS - None 5. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None ORANGE REDEVELOPMENT AGENCY MINUTES October 13, 1998 6. REPORTS FROM EXECUTIVE DIRECTOR - None 7. ADMINISTRATIVE REPORTS Tape 4666 7. 1 Report from the Assistant Executive Director regarding the Loan and Grant Agreement by and among the City of Orange, the Orange Redevelopment Agency and Orange Housing Development Corporation (OHDC) regarding 1743 East Rose Avenue.RA2100. 0 AGR-3121) SUMMARY: OHDC plans to acquire and rehabilitate a six-unit apartment complex located at 1743 East Rose Avenue. The total estimated cost of the project is $449,590. OHDC will obtain a private loan of $184,940 for the project and is requesting that the City and the Redevelopment Agency pay the remaining cost. If approved, funds would be provided as follows: an $81, 220 loan and a $95,740 grant of federal HOME funds from the City, and a $137,690 grant of Housing Set-Aside funds from the Redevelopment Agency.FISCAL IMPACT: Housing Set-Aside funds in the amount of $137,690 will be appropriated in Agency) Southwest Housing Set- Aside Account Number 921-9809-485802-0000-19844.HOME funds totaling $176,960 will be committed to Detail Number 19844 for the projectand are currently appropriated as follows: $7,558. 28 in HOME CHDO/Adams I Account Number 317-9660-427700- 1210-19841, $75,244 in HOME Prior Year Capital Out1ay/Developer AccountNumber 317-9660-475100- 0000-16051, and $94,157.72 in HOME Current Year Capital Outlay/Developer Account Number 317-9660-475100-0000.The Assistant Executive Director presented the report.RESOLUTION NO. ORA-0347 A Resolution of the Orange Redevelopment Agency approving a Loan and Grant Agreement by and among the City of Orange, the Orange Redevelopment Agency and Orange Housing Development Corporation regarding 1743 East Rose Avenue and making certain findings.MOTION - Murphy SECOND - Alvarez AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez Moved that Resolution No. ORA- 0347 as introduced, be adopted and same was passed and adopted by the preceding vote.MOTION - Murphy SECOND - Alvarez AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez Moved to appropriate $137, ORANGE REDEVELOPMENT AGENCY MINUTES October 13, 1998 7. ADMINISTRATIVE REPORTS (Continued) 7.2 Subordination of Orange Redevelopment Agency's ("Agency") $1,215,750 loan to Plaza Garden Apartments, LLC, a California limited liability company ("Developer"), and the Agency's housing affordability covenants on the Plaza Garden Apartments to the refmancing of the existing senior loan; and approval of a First Amendment to Affordable Housing Agreement between the Agency and Developer. Location: East of Tustin Street between Adams Avenue and Collins Avenue. (RA2100.0 AGR-2577. 1)SUMMARY: In 1996, the City through its federally-funded HOME Program and the Agency through its Housing Set-Aside funds, assisted the Plaza Garden Apartments, LLC and the Orange Garden Apartments, LLC with the acquisition and rehabilitation of the Plaza Garden and Orange Garden apartment complexes. In consideration for the loan of funds to those entities, the City and Agency imposed covenants and restrictions on the two apartment complexes assuring the long-term affordability of the apartment units at rents affordable to qualified low and moderate income persons and families. The owners of the two apartment complexes desire to refinance the existing loan on the two properties in conjunction with a loan on the Courtyard Apartments,which is owned by Courtyard Apartments, LLC, and have requested the Agency and City to subordinate their respective loans and affordability covenants to the refinancing loan.FISCAL IMP ACT: There is no appropriation needed for this transaction.NOTE: See City CouncilAgenda Item No. 7.2 for discussion on this item.MOTION - Murphy SECOND - Slater AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez Moved to approve the First Amendment to Affordable Housing Agreement between the Agency and the Developer; approve a Subordination Agreement by and among the Agency, the Developer and the Patrician Financial Company in a form acceptable to the Agency General Counsel; and authorize and direct the Chairman of the Agency Board of Directors to execute the First Amendment to Affordable Housing Agreement and Subordination Agreement and to take such other action and execute such other documents as may be necessary to carry out the terms of those documents; upon and subject to the following terms and conditions stated in the staff report.8. LEGAL AFFAIRS - None 9. RECESS The Orange Redevelopment Agency recessed at 6:50 p.m. PAGE 4 ORANGE REDEVELOPMENT AGENCY MINUTES October 13, 1998 10. RECESS TO CLOSED SESSION The Agency Board reconvened at 7:55 p.m. and recessed to Closed Session at 7:56 p.m. for the following purpose: a. Eminent domain matter involving property located at the northwest corner of Chapman and Main Streets. The Agency Board reconvened at 8:45 p.m. and the City Attorney made the following announcement: The Board of Directors of the Orange Redevelopment Agency met in closed session today and accepted a settlement offer signed by Lien Thi Besser and Tung-Nguyen, doing business as the Tartan Room. The settlement represents settlement of relocation rights and benefits, including moving and business establishment expenses, compensation for fixtures and equipment which could not be moved to a new business location, and loss of business goodwill and leasehold bonus value related to the acquisition by CLM LLC of the real property and improvements commonly known as 452 South Main Street pursuant to a Disposition and Development Agreement between the Orange Redevelopment Agency and CLM LLC. The total compensation to be paid by the Orange Redevelopment Agency to the owners and operators of the Tartan Room in settlement of their claims is $125, 000.The vote for the settlement offer was as follows:AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez NOES - None 11. ADJOURNMENT MOTION - Coontz SECOND - Murphy AYES - Murphy, Slater, Coontz, Spurgeon, Alvarez The Orange Redevelopment Agency adjourned at 8:45 p.m.p~J~CASSANDRA J. THCART, CMC, CLERK OF THE REDEVELOPMENT AGENCY PAGE 5