HomeMy WebLinkAbout12-08-1998 ORA MinutesAPPROVED BY THE AGENCY BOARD ON JANUARY 12, 1999
ORANGE REDEVELOPMENT AGENCY ORANGE, CALIFORNIA
MINUTES OF A REGULAR MEETING December 8, 1998
The Orange Redevelopment Agency of the City of Orange, California convened on December 8,
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 -ABSENT -
Murphy, Slater,
Coontz, Alvarez Spurgeon NOTE:
Mayor
pro tern Spurgeon was absent from the meeting as he represented the Council at
a formal event honoring Supervisor Steiner.2. PUBLIC
COMMENTS - None 3.CONSENT CALENDAR
Tape 2535 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 December 8, 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-
Wamer 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
Agencyconfirmation of warrant registers dated November 19 and 25, 1998.ACTION:Approved.3.
3 Request
approvalof Redevelopment Agency Minutes, Regular Meeting, November 24,1998.ACTION:Approved.
REMOVED
AND HEARD
SEPARATELY)3.4 Orange
Redevelopment Agency right of first refusal to acquire property located at the southwest corner
of West Chapman and Main Street. (RA2100.0 AGR-1476)SUMMARY: Under
terms of a Disposition and Development Agreement by and between the
Orange Redevelopment Agency and Sunstream Communities dated April 3,1989, as
amended, the Agency has, in the event of a proposed sale, a right of first refusal PAGE 1
ORANGE REDEVELOPMENT AGENCY MINUTES December 8, 1998
3. CONSENT CALENDAR (Continued)
to acquire the interest of Sunstream Communities in the Galleria L'Orange retail center
located at the southwest comer of West Chapman Avenue and Main Street.
FISCAL IMPACT: None.
The Redevelopment Project Manager reported under the terms of the Disposition and
Development Agreement (DDA) for this project a clause was included that is typically
included in DDA's as a remedy in the event a developer fails to develop, maintain, and
operate a project as originally envisioned. This project has been well maintained and has
served as a catalyst for developments on two other comers at the intersection. The
covenants remain with the new owner in the event the sale is finalized.
Barbara DeNiro, (address on file), asked how much money is involved through this
redevelopment? Is there a proposed sale of the property right now? Explain the right of
first refusal?
The Redevelopment Project Manager explained the total Agency investment on the
project in 1989 was $1.49 million which was used to consolidate the sites and relocate
tenants. The total in developer investment was $7.2 million. It was determined in 1996
that the developer did not owe the Agency any money based on an appraisal of the
property. The developer was allowed an 8% rate of return on his investment. Based on
the proposed offer before the developer at this time, it appears the developer will have
made less than 3% on his investment.
The right of first refusal is written into the DDA as a remedy should the center not be
developed as originally envisioned in the DDA. The Agency has the right to go in and
acquire the property, act as a landlord, or sell the property to someone else. The right to
acquire would continue with any new buyer of the property for 15 years.
MOTION - Slater SECOND -
Murphy AYES - Murphy,
Slater, Coontz, Alvarez ABSENT - Spurgeon Moved
that the Board
of Directors of the Orange Redevelopment Agency not exercise its right of first refusal
to acquire the property.MOTION - Murphy SECOND - Slater
AYES - Murphy, Slater,
Coontz, Alvarez ABSENT -
Spurgeon PAGE 2
ORANGE REDEVELOPMENT AGENCY MINUTES December 8, 1998
3. CONSENT CALENDAR (Continued)
Item No. 3.4 was removed and heard separately. The remainder of the Consent Calendar
was approved as recommended.
END OF CONSENT CALENDAR
4. REPORTS FROM DIRECTORS - None 5.
REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS - None 6. REPORTS
FROM EXECUTIVE DIRECTOR - None 7. ADMINISTRATIVE REPORTS -
None 8. LEGAL AFFAIRS - None
9. RECESS TO CLOSED SESSION -
None 10. ADJOURNMENT MOTION - Coontz SECOND - Murphy
AYES - Murphy,
Slater, Coontz, Alvarez
ABSENT - Spurgeon The
Orange Redevelopment Agency adjourned at 6:
00 p.m.
CASSANDRA J. THCART, CMC, CLERK OF THE REDEVELOPMENT AGENCY COONTZ,
CH THE REDEVELOPMENT AGENCY PAGE
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