RES-8783 Owner Participation Agreement Between Redevelopment Agency and Chapman UniversityRESOLUTION NO. 8783
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE
APPROVING AN OWNER PARTICIPATION AGREEMENT BETWEEN THE
ORANGE REDEVELOPMENT AGENCY AND CHAPMAN UNIVERSITY
PROVIDING, AMONG OTHER THINGS, FOR THE DEVELOPMENT OF A
MINIMUM 700 SPACE PARKING STRUCTURE AND THE ACQUISITION
BY THE AGENCY OF THE RIGHT TO USE 350 SPACES THEREIN,
IN COMMON, WITH CHAPMAN UNIVERSITY (TOTAL OF $3,250,000
FROM SOUTHWEST AND NORTHWEST PROJECT AREAS)
THE CITY COUNCIL OF THE CITY OF ORANGE HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. Chapman University, a California nonprofit
corporation, (the "Participant") is the fee owner of certain real
property located at 370 North Glassell Street, Orange, California
the "Site"). Pursuant to the Owner Participation Agreement
between the Orange Redevelopment Agency (the "Agency") and the
Participant, presented to the City Council of the City of Orange
the "City Council") at this meeting, the Participant proposes to-
develop a portion of the Site with a parking structure to
accommodate a minimum of 700 automobiles (the "Parking
Structure"), which is to be available for both university and
public parking purposes.
Section 2. Pursuant to the Owner Participation
Agreement and the provisions of the Community Redevelopment Law
California Health and Safety Code Section 33000, et sea.), the
Agency will acquire an easement for the public use of at least
350 spaces in the Parking Structure for a period of 15 years.
Section 3. The Parking Structure will be located in
the Southwest Project Area of the Agency and in close proximity
to the Northwest Project Area of the Agency (collectively, the
Project Areas"). The Project Areas are areas in which the
combination of conditions of blight is so prevalent and so
substantial that it causes a reduction of, or lack of,proper
utilization of the areas to such an extent that it constitutes a
serious physical and economic burden on the community which
cannot reasonably be expected to be reversed or alleviated by
private enterprise or governmental action, or both, without
redevelopment. The Project Areas are characterized by properties
which suffer from economic dislocation, deterioration or disuse,
including depreciated or stagnant property values and impaired
investments. The Site presently contains a building in which it
is unsafe and unhealthy for persons to work because of
dilapidation and deterioration and which is conducive to juvenile
delinquency and crime. Such conditions tend to further
deterioration and disuse because of the lack of incentive to
landowners and their inability to improve, modernize or
rehabilitate their property while the condition of the
neighboring property remains unchanged. In addition, the Project
970521 11091-00005 rdh 1672896
Areas are characterized by the existence of inadequate public
improvements, including parking facilities.
The installation and construction of the Parking
Structure will assist in the elimination of conditions of blight
in the Project Areas which are caused by dilapidation and
deterioration and inadequate public improvements. This will
encourage private sector investment in the Project Areas and
thereby facilitate the redevelopment of the Project Areas. This
in turn will create employment opportunities for the residents of
the Project Areas, all for the benefit of the health, safety and
welfare of the residents and taxpayers of the Project Areas.
Section 4. The budget constraints of the City prevent
the City from financing the acquisition of an easement for such
spaces in the Parking Structure by any means. Traditional
methods of financing such as the issuance of general obligation
bonds are unavailable as a practical matter because of the
extraordinary majority voter approval requirements of two-
thirds of the electorate. Financing through other obligations, such
as certificates of participation, is also unavailable because
such financing would require a long-term commitment of
general fund revenues of the City, and there are insufficient
revenues for that purpose. Assessment financing or special
tax financing could overburden benefitting properties with
assessments or special taxes which would be added to existing
taxes and assessments, and, in addition, special taxes require
a two-thirds vote and assessment financing is subject to
a majority protest.Section 5. The City Council
hereby finds and determines that based upon the foregoing
and other information presented to the City Council: (i) the Parking
Structure is of benefit to the Project Areas and to the
immediate neighborhood in which the project is located; (ii) the payment of
funds for the cost of acquisition of an easement for spaces
in the Parking Structure assists in the elimination
of blighting conditions inside the Project Areas by rehabilitating
a dilapidated and deteriorated structure and by remedying the
lack of adequate public improvements, thereby
encouraging private sector investment in the Project Areas and
creating job opportunities for the residents of the Project Areas; (iii)
the payment of funds for the cost of acquisition of an easement
for spaces in the Parking Structure is consistent with
the Agency's implementation plan adopted pursuant to Health
and Safety Code Section 33490; and (iv) no other reasonable
means of financing such parking are available
to the City.970521 11091-
00005 rdh 1672896
Section 6. The City Council hereby approves the Owner
Participation Agreement and hereby approves payment by the Agency
for the cost of the easement pursuant to the Owner Participation
Agreement.
PASSED, APPROVED and ADOPTED this 27th day of
May 997.
c
City of Orange
ATTEST:
I 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 27th day of May
997 by the following vote:
AYES:COUNCILMEMBERS: MURPHY, COONTZ, SPURGEON, ALVAREZ
NOES:COUNCILMEMBERS: NONE
ABSENT:COUNCILMEMBERS: NONE
ABSTAIN:COUNCILMEMBERS: SLATER
970521 11091-00005 rdh 1672896
1 3 -