RES-ORA-0386 Owner Participation Agreement With VRSJ LLCRESOLUTION NO. ORA-
0386 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
AN OWNER PARTICIPATION AGREEMENT
WITH VRSJ LLC, A CALIFORNIA LIMITED
LIABILITY COMPANY, FOR THE REDEVELOPMENT
OF APPROXIMATELY 3.26 ACRES OF
LAND BOUNDED BY MAIN STREET ON THE EAST
AND PALMYRA AVENUE ON THE SOUTH IN
THE SOUTHWEST REDEVELOPMENT
PROJECT.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) (the "CRL");
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, on November 20, 1984, the City Council of the City of Orange
adopted Ordinance No. 37-84 approving the Redevelopment Plan for the
Southwest Redevelopment Project, which Redevelopment Plan was amended (i) on July 15. 1986 by Ordinance
No. 20-86,ii) on July 5, 1988 by Ordinance No. 24-88, (iii) on November 22, 1994
by Ordinance No. 22-94, and (iv) on July 9, 1996 by Ordinance No. 17-96 (collectively
referred to herein as the Redevelopment Plan"), thereby authorizing the Agency
to administer the Redevelopment Plan for the Southwest Redevelopment
Project (the "Redevelopment Project"); and WHEREAS, the Agency is engaged in activities necessary
to carry out and implement the Redevelopment Plan
for the Redevelopment Project; and WHEREAS, as authorized by Section 33430 of the
CRL, the Agency proposes to convey to VRSJ LLC. a California limited liability
company (the "Participant"), certain Agency-owned real property in the Redevelopment Project consisting of
approximately .58 acre of land commonly known as 1429 W. Palmyra Avenue (the "Agency
Property"), subject to the terms and conditions set forth in a proposed Owner Participation
Agreement (the "OPA") for the purpose of implementing Section 33339 of the CRL and
the Redevelopment Plan
for the Redevelopment Project; and WHEREAS, the Participant owns certain parcels
of real property in the Redevelopment Project located adjacent to the Agency
Parcel andconsisting of (a)approximately 2.40 acres of land commonly known as 230
approximately .28 acre ofIand commonly known as 274 South Main Street (collectively, the
Participant Parcels"); and
WHEREAS, the Participant desires to acquire the Agency Parcel and to develop it,
along with the Participant Parcels, with two 40,000 square foot medical office buildings,consisting, in the aggregate, of approximately 74,813 square feet of gross leaseable area, a
four-level parking structure containing approximately 318 parking stalls, and surfaceparkingaccommodatingapproximately86parkingstalls (the "Project");
and WHEREAS. the OP A by and between the Participant and the Agency has beenpreparedandsubmitted, providing for the conveyance of the Agency Property from the Agency to
the Participant for the purchase price and upon the terms stated therein and calling for the
proposed redevelopment ofthe Agency Parcel and Participant Parcels with the Project;
and WHEREAS, on June 25, 1996, in accordance with the CRL and the
California Environmental Quality Act (California Public Resources Code Section 21000 et
seq.:CEQA"), the Agency certified the Final Environmental Impact Reports for
the Redevelopment Plan for the Southwest Redevelopment Project and the First, Second
and Third Amendments thereto (herein collectively referred to as the "Final EIRS"), which
Final EIRS examined the impacts associated with the anticipated development of the 3.26 acre
Site with office buildings;
and WHEREAS, as the lead agency under CEQA and pursuant to the authority granted
to it by the Orange Municipal Code, the Planning Commission heretofore considered
the proposed Project and Mitigated Negative Declaration 1650-00, 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 Mitigated Negative Declaration
1650-00 and approved a Major Site Plan Review for the Project by the adoption of Resolution
No. PC
65-00; 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 Mitigated Negative Declaration with the Final EIRS 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 Final EIRS have occurred; to wit, no new
effects could occur or no new mitigation measures are required in connection with the redevelopment
of the Site pursuant to the OPA, and potentially significant environmental effects have been
reduced to an acceptable level in that all significant environmental effects have
been eliminated or substantially lessened. These findings are based upon the record of the joint
public hearing, the reasons expressed herein, the Mitigated Negative Declaration adopted
by the Planning Commission, the Final EIRS, and the fact that the redevelopment of the Site
in accordance with the OP A is within the scope of the redevelopment concept for the Site
under the previously approved Third Amendment to the Redevelopment Plan for which the Final
EIRS was prepared
and certified; and
WHEREAS, after publication of notice as required by law, a joint public hearing has
been duly held by this Agency and the City Council of the City in accordance with Section
33433 of the CRL on the proposed sale of the Agency Property in accordance with the terms and
provisions of the OPA; and
WHEREAS, this Agency has duly considered all of the terms and conditions of the
proposed OP A and believes that the development of the Property pursuant to the OP A is in the
best interests ofthe 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 Board of Directors of the Orange
Redevelopment Agency, as follows:
I. The foregoing recitals are true and correct.
2. The Final EIRS and the Mitigated Negative Declaration were 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 OPA and any other actions, proceedings and matters related thereto.
3. That the Project described in the Mitigated Negative Declaration and the OPA
does not involve new environmental impacts not covered in the Final EIRS and will have no
significant effect on the environment except as identified and considered in the Final EIRS and
the Mitigated Negative Declaration.
4. That for the Project described in the Negative Declaration and the OPA, it is
neither necessary nor required that a subsequent or supplemental environmental impact report be
prepared.
5. The Agency finds and determines, based upon information contained in the Final
EIRS, the Mitigated Negative Declaration and the OPA, that changes or alterations have been
required in, or incorporated into, the proposed Project which mitigate or avoid the significant
environmental effects thereof as identified in the Final EIRS and the Mitigated Negative
Declaration.
6. 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 l5096(i) of the State CEQA Guidelines.
7. The Agency hereby finds and determines that the sale of the Agency Property to
the Participant in accordance with the terms and provisions of the OPA will assist in the
elimination of blight for the reasons outlined in the agenda report presented to this Agency and
in the swnmary report required by Section 33433 of the CRL.
ORA,0386 3 TJR
8. The Agency hereby finds and determines that the consideration to be received by
the Agency from the Participant for the sale of the Agency Property in accordance with the
terms and provisions of the OPA is not less than the fair reuse value at the use and with the
covenants and conditions and development costs authorized by the sale under the terms and
conditions of the OPA.
9. The Agency hereby finds and determines that the terms and provisions of the
OPA between the Agency and the Participant, with respect to the development of the Project, in
the form as submitted by the Executive Director and executed by the 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.
10. 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 OPA and to
administer the Agency's obligations, responsibilities and duties to be performed thereunder.
ADOPTED this 13th day of February, 2001.
ATTEST:
C!u4JA~-J{;d~
Cassandra J. Cat rt, Agency Clerk
I hereby certifY that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the 13th day of February,
2001.
AYES:
NOES:
ABSENT:
ABSTAIN:
DIRECTORS: Slater, Alvarez, Murphy, Coontz
DIRECTORS: None
DIRECTORS: None
DIRECTORS: None
ldd~~
Cassandra J. Ca cart, Agency Clerk
ORA-0386 4
TJR