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RES-8693 Approving Agreement to Construct Certain Public ImprovementsRESOLUTION NO. 8693 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE APPROVING THE AGREEMENT OF THE ORANGE REDEVELOPMENT AGENCY TO UNDERTAKE THE OBLIGATION TO CONSTRUCT OR PAY FOR THE CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS TO THE CITY DRIVE ADJACENT TO THE CITY SHOPPING CENTER WHEREAS, the City Council has been presented with a Disposition and Development Agreement dated as of September 10, 1996 (the "Agreement"), between the Orange Redevelopment Agency (the "Agency") and The Mills Limited Partnership, a Delaware limited partnership (the Developer"), regarding the development of an entertainment/retail commercial shopping center in the City of Orange. The overall project will consist of an entertainment/retail commercial shopping center to be known as the City Mills at Orange, and will include approximately 811,909 square feet of gross leasable area, containing motion picture theaters, restaurants, entertainment facilities, and retail stores, together with parking and other on-site and off-site improvements. The City Mills at Orange shopping center will provide a modem, convenient and efficient retail shopping center; and WHEREAS, the site upon which the Developer proposes to develop the City Mills at Orange shopping center is currently the location of a closed shopping mall formerly known as The City Shopping Center. The site was originally an outdoor mall which failed due to the lack of appropriate anchor tenants and an outmoded design. The site was subsequently redesigned as an enclosed mall, but was only marginally successful due to the competition in the Orange County market area in the trend toward the value-oriented retailers and power centers. The operation of the site as a shopping mall has been abandoned for many years; and WHEREAS, the Developer has submitted information to the City and Agency staff which indicates that the estimated sales tax revenues which will be derived by the City from retail sales at the City Mills at Orange shopping center will approximate $781,396.88 in its first year of operation, and will gradually increase and reach a level in excess of $1,366,286.78 after the twelfth year of operation.Such sales tax revenues will greatly enhance the ability of the City to provide services to the Agency's Southwest Project Area (the "Project Area"). Such services would include, but not be limited to, police and fire protection services, and recreational services. The City Mills at Orange shopping center will provide a modem, convenient, efficient, diverse and full service retail shopping center which is expected to attract and stimulate additional commercial development in the Project Area, and will assist the City's overall marketing efforts in attracting industry and business to the Project Area and stimulating additional growth from existing uses. A portion of the property taxes levied on such additional growth in the Project Area will be allocated to the Agency to help finance additional redevelopment projects; and WHEREAS, pursuant to paragraph 11 of Resolution PC 14-96 of the City's Planning Commission, the Developer is obligated to design, construct and pay for certain street widening 1-Reso. No. 8693 960904 improvements to The City Drive as therein described. The improvements to The City Drive will facilitate improved traffic circulation. The City Drive is one of the major north-south arterials which direct traffic to and which serve major commercial areas of the City, including the Project Area. The improvements to The City Drive will improve access between such areas and the City Mills at Orange shopping center. The City Mills at Orange shopping center will create additional employment opportunities for residents of the City and the Project Area. The City Mills at Orange shopping center is also expected to attract new and expanded medical, legal, recreational and other support services and to encourage existing support services to remain in the Orange area, which in turn will serve and further strengthen the commercial uses in the Project Area. The City Drive street widening improvements adjacent to the City Mills at Orange shopping center will facilitate the development of the City Mills at Orange shopping center and improve the traffic flow throughout the City of Orange; and WHEREAS, under the terms of the Agreement, a condition of the Agreement is the Agency' s or the City's agreement to assume the Developer's responsibility to design, construct and pay for the street widening on The City Drive. The payment for such off-site improvements is not within the budget of the City. A traditional method of financing street improvements such as general obligation bond financing is not available as a practical matter because of the extraordinary majority voter approval requirements. To require the Developer to pay for all of such costs through the issuance of special tax bonds could overburden the site with property taxes and assessments and threaten the economic viability of the project. Another traditional method of financing public improvements, special assessment bonds,is also unavailable as a practical matter because that too could overburden the site with additional assessments; and WHEREAS, the Developer has stated that it would not enter into the Agreement on the terms presented therein, nor will it acquire the site and develop the City Mills at Orange shopping center thereon, if the Developer is not relieved of the obligation to design, construct and pay for the street widening improvements to The City Drive as described in paragraph 11 of Resolution PC 14- 96 of the City's Planning Commission, due to the additional costs that would be incurred by the Developer in designing, constructing and paying for such street-widening improvements.NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Orange hereby finds, determines, resolves and orders:THAT the City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: (i) the off-site street widening improvements to The City Drive to be constructed in connection with the City Mills at Orange shopping center will be of benefit to the Orange Redevelopment Agency's Southwest Project Area, (ii) no other reasonable means of financing such construction is available to the City, and (jji) the Agency's payment of funds for the development of The City Drive street widening improvements will assist in the elimination of one or more blighting conditions inside the Project Area.BE IT FURTHER RESOLVED, the City Council hereby approves payment by the Agency of the cost of designing, constructing and paying for the street widening improvements on The City Drive described in paragraph 11 of Resolution PC 14-96 of the City's Planning Commission, from any revenues of the Agency lawfully available therefor.2-Reso. No. ADOPTED this 10th day of September, 1996. d oanne Coontz 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 10th day of September, 1996, by the following vote: AYES: COUNCIL MEMBERS: MURPHY, BARRERA, COONTZ, SPURGEON, SLATER NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE 3- Reso. No. 8693 960904 jar d862-2.jar