RES-ORA-0318 Disposition and Development AgreementRESOLUTION NO. ORA-
0318 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING A DISPOSITION
AND DEVELOPMENT AGREEMENT BETWEEN THE
ORANGE REDEVELOPMENT AGENCY AND THE MILLS
LIMITED pARTNERSHIP PROVIDING, AMONG OTHER THINGS, FOR
THE ACQUISITION BY THE ORANGE REDEVELOPMENT AGENCY
OF APPROXIMATELY 74.5 ACRES OF REAL PROPERTY
COMMONLY KNOWN AS THE CITY SHOPPING CENTER AND THE
DISPOSITION OF SAME TO THE MILLS LIMITED
PARTNERSHIP WHEREAS, California Health and Safety Code Section 33433 requires that before the sale
or lease of any property acquired by a redevelopment agency, in whole or in part, directly or
indirectly,with tax increment moneys, pursuant to the redevelopment plan, said conveyance shall fIrst be
approved by the legislative body by resolution after a public hearing;
and WHEREAS, On September 10, 1996, the City Council of the City of Orange (the "City")
and the Agency held a duly noticed joint public hearing on the Agency's proposed purchase and sale
of certain real property (the "Property") described in that certain Disposition and Development
Agreement the "DDA") between the Agency and The Mills Limited Partnership, a Delaware limited
partnership the "Developer"), at which time all persons desiring to comment on or ask questions concerning
the DDA and the sale of the Property to the Developer were given the opportunity to do so. The
Property is commonly known as The City Shopping Center and is located on the west of The City Drive,
east of Lewis Stre:et, and south of Chapman Avenue, and contains. approximately 74.5 acres, in the City
of Orange, California. Prior to the public hearing, a summary report containing information
concerning the Agency's proposed purchase and sale of the Property to the Developer, as well as a copy of
the proposed DDA, was available for public inspection in the offices of the City Clerk of the City
of Orange at 300 East Chapman Avenue, Orange, California 92866, between the hours of 8:00 a.m.
and 5:00 p.m., Monday through Thursday. Notice of the public hearing was published in the Orange
City News on August 22, 1996 and August 29, 1996;
and WHEREAS, the Agency has reviewed and considered all written and oral comments,
questions and concerns regarding the proposed purchase and sale of th.e Property pursuant to the DDA that
were received prior to and at the public hearing on the DDA;
and WHEREAS, the environmental impacts of the proposed development were analyzed in
the Mitigated Negative Declaration 1497-96 and evaluated by the Planning Commission and
such Mitigated Negative Dedaration and the mitigation measures described therein were determined to be
adequate and complete;
and WHEREAS, the DDA requires the Developer to construct certain improvements on the
Property as therein described, including, among other things, a sh.opping center of approximately 811,909
square feet of gross leasable area;
and
1- ,..Reso. No.
ORA-0318 960904 jar d861-
Wm8:REAS, the City Council and the Agency have obtained an analysis of the purchase price
of the ProP(lrty from GRC Associates, Inc. ("GRe"). Such analysis provides that the total effective
land acquisiltion cost to be incurred by the Developer is approximately $35,424,876. Pursuant to the
DDA, the Agency will be purchasing the Property for $1,000,000 in cash and a promissory note in the
sum of $10.,700,000, and then reconveying the Property to the Developer. Moreover, because the
promissory note is payable only from "Net Project Tax Increment" (as such term is defmed in the DDA)
actually received by the Agency, GRC estimates the present value of the promissory note to be only
8,000,000. This results in a net land cost to the Developer of $25,424,876, which corresponds to a
land value of $7.83 per square foot of gross area. In the opinion of GRC, $7.83 per square foot is
within the range of fair market purchase prices paid for large, regional retail designated properties in
the Los Angeles County, Orange County, western San Bernardino County and northern San Diego
County areas.
NO'V, THEREFORE, BE 11 RESOLVED, that the Orange Redevelopment Agency hereby
fmds, detennines, resolves and orders:
THAT the Agency hereby finds that the sale of the Property pursuant to the DDA will assist in
the elimination of blight due to the obligation of the Developer to construct thereon the improvements
described in the DDA.
BE lIT FURTHER RESOLVED, that the Agency hereby finds that the sale of the Property
pursuant to the DDA is consistent with the Orange Redevelopment Agency's Implementation Plan
approved and adopted by the Agency on November 22, 1994.
BE IT FURTHER RESOLVED, that the Agency hereby finds that the consideration to be paid
by the Developer is not less than the fair market value of the Property at its highest and best use in
accordance with the Redevelopment Plan for the Agency's Southwest Project Area.
BE IT FURTHER RESOLVED, that the Agency hereby approves the DDA and the disposition
of the Property to the Developer in accordance with the tenns and conditions of the DDA pursuant to
the requirements of Health and Safety Code Section 33433{b) and authorizes the execution of same by
the the Chairperson of the Board of Directors of the Agency; provided, however, minor modifications
and correctilons may be made thereto prior to its execution as approved by the Agency's Executive
Director and the Agency Attorney.
2-
Reso. No. ORA-
0318 960904 jar d861-1.
ADOPTED this 10th day of September, 1996.
1
J
Attest: t Clerk,
Orange 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 10th day of September,
1996, by the following vote:AYES:
DIRECTORS:MURPHY, BARRERA, COONTZ, SPURGEON, SLATER NOES:
DIRECTORS:NONE ABSENT:
DIRECTORS:NONE ABSTAIN:
DIRECTORS:NONE 3-
Reso.
No. ORA-0318
960904 jar d861-1.jar