RES-ORA-0508 Owner Participation Agreement ApprovalRESOLUTION NO.ORA-
0508 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
AN OWNER PARTICIPATION AGREEMENT
WITH SOUTHERN COUNTIES OIL CO., A
CALIFORNIA LIMITED PARTNERSHIP, SOUTHERN
COUNTIES OIL CO., A CALIFORNIA CORPORATION,
AND ORANGE KATELLA, LLC, A
CALIFORNIA LIMITED LIABILITY
COMPANY.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 and herein
referred to as the CRL) and, pursuant to the CRL, is responsible for redevelopment of
the redevelopment project areas within the City of Orange;
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 27, 2001 the City Council of the City of Orange
adopted Ordinance No. 21-01, approving the Amended and Restated Redevelopment Plan
for the Orange Merged and Amended Redevelopment Project Area (the
Merged Redevelopment Project Area), thereby authorizing the Agency to administer the Amended
and Restated Redevelopment Plan for the Orange Merged and Amended Redevelopment
Project (the Redevelopment
Plan); and WHEREAS, the Agency is engaged in activities necessary to carry
out and implement the Redevelopment Plan for the Merged Redevelopment Project
Area; and WHEREAS, in furtherance of the Redevelopment Plan and to effectuate the
CRL, the Agency and Southern Counties Oil Co., a California Limited Partnership,
Southern Counties Oil Co., a California Corporation, and Orange Katella, LLC, a California
Limited Liability Company (collectively, the Developer) have negotiated an Owner Participation
Agreement in the form presented at the public hearing at which this matter was considered (herein
referred to as the
OPA); and WHEREAS, the OPA will assist in providing employment opportunities
and other economic opportunities for the residents of the City of Orange, in the
possible development or rehabilitation of property that will be used for commercial, industrial,
or manufacturing purposes, and in the generation of additional sales tax and property tax revenues,
all to remove and prevent the recurrence of blight in the Merged Redevelopment Project
WHEREAS, as the "lead agency" under the California Environmental Quality Act
CEQA), the financial assistance to be provided by the Agency pursuant to the OPA is exempt
from the provisions of CEQA under Section 15061(b)(3) of the State CEQA Guidelines because
it can be seen with certainty that there is no possibility that such financing assistance may have a
significant effect on the environment; and
WHEREAS, after holding a public hearing, this Board of Directors has duly considered
all of the terms and conditions of the proposed OPA and believes that the OPA is in the best
interests of the 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:
1. The foregoing recitals are true and correct.
2. The financing to be provided to the Developer pursuant to the OPA is exempt
from the provisions of CEQA under Section 15061(b)(3) of the CEQA Guidelines and,
accordingly, hereby authorizes and directs the City Clerk (or her designee) to file a Notice of
Exemption with the Orange County Clerk in the form as prepared by the Agency's Assistant
Executive Director or his designee.
3. The Agency finds and determines that the assistance as set forth in the proposed
OPA for the possible development of property in the Merged Redevelopment Project Area is
necessary for the economic feasibility of such development and that such assistance cannot be
obtained on economically feasible terms in the private market, in that (a) in the current financial
and economic climate in California and throughout the nation, and as anticipated for the
foreseeable future, private lenders are not making commercial loans secured by real property
and thus access to private loan fiends is not available on commercially reasonable terms; (b) the
commercial lending industry has been impacted by the recession that began in 2008 resulting in
limited or lack of available financing and/or securing feasible terms in the private market for
industrial and manufacturing businesses seeking expansion or funds for acquisition or capital
equipment; (c) loans secured by real property is the portion of lenders' loan portfolios that have
caused lenders the most problems and thus lenders are reducing, rather than increasing, their
exposure by reducing, and in many cases eliminating, the availability of private loan funds; (d)
new federal regulations have placed a higher risk rating on loans secured by real estate; (e) those
lenders with available funds to loan, and who are willing to make loans, are demanding
commercially unreasonable terms such as unreasonable loan-to-value ratios that are now,
in the current economic downturn, applied to lower appraised property values, as well
as demanding additional security not required just a few years ago; and (f) obtaining funds
through refinancing of existing loans secured by real property is similarly commercially infeasible for
the foregoing reasons and for the additional reason that lenders are not willing to alter the
yield maintenance component of
4. The Agency hereby finds and determines that the terms and provisions of the
OPA between the Agency and the Developer, in the form as submitted by the Executive
Director and executed by the Developer, are approved and that the Chairman is authorized to
execute, and the Agency Clerk to attest, the OPA on behalf of the Agency.
5. The Executive Director or his designee is hereby 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 9th day of February, 2010.
ATTEST:
Mary E. ,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 9th day of February,
2010.
AYES: DIRECTORS: Smith, Murphy, Cavecche, Dumitru, Bilodeau
NOES: DIRECTORS: None
ABSENT: DIRECTORS: None
ABSTAIN: DIRECTORS: None
urphy, k
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