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RES-ORA-0471 Owner Participation Agreement Approval 2355 and 2375 N. Tustin St.RESOLUTION NO. ORA- 0471 A RESOLUTION OF THE ORANGE REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE EXECUTION OF (1) AN OWNER P ARTICIP A TION AGREEMENT WITH 2375 TUSTIN AVE. ASSOCIATES, L.P., A CALIFORNIA LIMITED PARTNERSHIP,RELATING TO REDEVELOPMENT OF PROPERTY COMMONLY KNOWN AS 2355 AND 2375 N.TUSTIN STREET IN THE ORANGE MERGED AND AMENDED REDEVELOPMENT PROJECT AREA,AND (2) A COOPERATION AGREEMENT WITH THE CITY OF ORANGE FOR CERTAIN PUBLIC IMPROVEMENTS IN THE VICINITY OF 2355 AND 2375 N. TUSTIN STREET.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 Law); 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, by Ordinance No. 21-01 adopted on November 27, 2001, the City Council of the City of Orange adopted and approved the Amended and Restated Redevelopment Plan (the Redevelopment Plan) for the Orange Merged and Amended Redevelopment Project Area (the Project Area); and WHEREAS, the Agency is engaged in activities necessary to carry out and implement the Redevelopment Plan for the Project Area; and WHEREAS, 2375 Tustin Ave. Associates, L.P., a California limited partnership herein referred to as the Owner Participant) has proposed to enter into an Owner Participation Agreement (the OPA) with the Agency, pursuant to which the Owner Participant will clear certain real property (herein referred to as the Site) located within the boundaries of the Project Area, commonly known as 2355 and 2375 N. Tustin Street, of all structures and to construct thereon (i) a 45,750 square foot retail building to be leased to, and occupied by,Best Buy Stores, L.P., a Virginia limited partnership (herein referred to as Best Buy); ( ii) a 1,700 square foot retail building; and (iii) surface parking (herein referred to collectively as the WHEREAS, the Owner Participant owns the Site and, therefore, qualifies as an owner participant under Section 33339 of the Law and the Redevelopment Plan; and WHEREAS, the Owner Participant has executed and submitted to the Agency copies of the OP A in a form that is acceptable to the Owner Participant, which provides for the proposed redevelopment ofthe Site with the Project; and WHEREAS, by the adoption of Resolution No. 10241 on November 27, 2007, the City Council approved Major Site Plan Review No. 0526-07, Conditional Use Permit No.2673-07, Variance No. 2181-07, and other related entitlements for the Project, and, in accordance with the requirements of the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.: CEQA) certified, as the lead agency under CEQA, Mitigated Negative Declaration No. 1793-07 (the MND), which was prepared in connection therewith, finding that, with the imposition of identified mitigation measures, the Project will not have a significant effect on the environment; 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 MND 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 MND have occurred; to wit, no new effects could occur or no new mitigation measures are required in connection with the redevelopment of the Site with the Project pursuant to the OP A, and potentially significant environmental effects have been reduced to an acceptable level in that all significant environmental effects have been eliminated or substantially lessened; and WHEREAS, the OP A provides that the Agency will reimburse the Owner Participant for certain costs incurred by the Owner Participant for its construction of certain public improvements necessitated by the development of the Project, consisting of the installation of a three-way traffic signal at the entryway to the Site, the dedication of a corner cut-off at the entryway to the Project, the alteration of an existing bus bay across from the Site on the west side of Tustin Street, the dedication of necessary right-of-way to allow for the construction of a deceleration lane to aid safe access into the Site, the construction of the deceleration lane, the dedication of traffic signal loops, the upgrade of an existing water line,the relocation of certain utilities, and the installation of a closed circuit television system on the traffic signal mast arms (collectively referred to herein as the Public Improvements); and WHEREAS, the Board of Directors hereby finds and determines, and the OP A provides, that the Public Improvements are to be constructed by the Owner Participant under the direction and supervision of the City Engineer for the following reasons:i)neither the Agency's staff nor the City's staff are able to expedite the drafting, bidding and administration of the contracts needed to develop those Public Improvements so as to have them completed by the time the Owner Participant is ready to ii)the City, Agency and the Owner Participant will benefit from a coordinated plan of design, engineering and construction of the Public Improvements and the concurrent development of the Site with the Project; iii)it would result in lower administration costs, greater cost savings, controls, and efficiencies, and the expedited completion of the Public Improvements if the Owner Participant were to cause the construction of the Public Improvements concurrent with its construction of the Project upon the Site; iv)the City will obtain no advantage from undertaking the construction directly of the Public Improvements; and v)the provisions of the OP A require that the Public Improvements be constructed by the Owner Participant as if they had been constructed under the direction and supervision of the City. WHEREAS, the Board of Directors hereby further finds and determines that the City has required the Owner Participant to perform the construction and installation of the Public Improvements as a condition of regulatory approval of an otherwise private development project; and WHEREAS, the Board of Directors hereby further finds and determines that the Agency will contribute no more money, or the equivalent of money, to the overall project than is required to perform the Public Improvement work, and, with the exception of accepting and taking ownership of the Public Improvements following construction thereof by the Owner Participant, neither the City nor the Agency will maintain any proprietary interest in the overall Project; and WHEREAS, the City Council further finds and determines, pursuant to paragraph 2 of subdivision (b) of California Labor Code Section 1720, that only the Public Improvement work, and not the improvements to be constructed and installed by the Owner Participant on the Site comprising the Project, shall be a public works subject to the requirements of Chapter 1 of Part 7 of Division 2 of the California Labor Code; and WHEREAS, Section 33220 of the Law authorizes any public body, including the City of Orange, to aid and cooperate in the planning, undertaking, construction, or operation ofredevelopment projects, including, among other things, causing public improvements to be furnished adjacent to or in connection with redevelopment projects; and WHEREAS, the Redevelopment Plan authorizes the expenditure of Agency funds for the construction of various public improvements abutting the Site, including operational improvements to Tustin Street (i.e., signing, striping and signal modifications) and utility relocation; and 3 WHEREAS, by its execution of the OP A in the form presented to the Agency Board of Directors for approval, the Owner Participant recognizes that its construction of the Public Improvements in accordance with the OP A will be subject to State public bidding and prevailing wage requirements; and WHEREAS, in furtherance of the Redevelopment Plan for the Project Area, the Agency has requested that the City aid and cooperate in the undertaking of the redevelopment of the Site by entering into a Cooperation Agreement with the Agency, pursuant to which the City will supervise the construction by the Owner Participant of the Public Improvements in accordance with the terms and provisions of the OP A and, thereafter, will accept title to the Public Improvements to permit the City to properly own, operate and maintain such Public Improvements upon the condition that the Agency will pay the Owner Participant the actual costs of such Public Improvements in accordance with the OPA; and WHEREAS, Section 33445 of the Law authorizes the Agency, with the consent of the City Council, to, among other things, pay all or a part of the cost of installation and construction of certain public improvements, which are or will, upon completion, become publicly owned, upon the making of certain findings; and WHEREAS, the Board of Directors finds and determines that the Agency's financial participation in the construction of the Public Improvements will benefit the City; and WHEREAS, other than the agreement of the Agency to fund the cost of the Public Improvements, no other reasonable means of financing such Public Improvements are available to the community; and WHEREAS, the Agency's payment of funds for the cost of the Public Improvements in accordance with the terms of the OP A and the construction of the Public Improvements, themselves, will assist in the elimination of one or more blighting conditions inside the Project Area, and is consistent with the Implementation Plan adopted by the Agency for the Project Area pursuant to Section 33490 of the Health and Safety Code; and WHEREAS, this Board of Directors has duly considered all terms and conditions of the OP A and believes that development of the Site pursuant to the OP A is in the best interest 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, and that such activities promote the objectives of the Law, as well as the Redevelopment Plan for the Project Area. 4 NOW, THEREFORE, the Board of Directors of the Orange Redevelopment Agency, resolves, finds and determines, on the basis of the facts set forth in the agenda report presented to it and any testimony received at the meeting at which this matter was considered, as follows: 1. The foregoing recitals are true and correct. 2. The MND was 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 OP A and any other actions, proceedings and matters related thereto. 3. That the Project described in the MND and the OPA does not involve new environmental impacts not covered in the MND and will have no significant effect on the environment except as identified and considered in the MND. 4. That for the Project described in the MND and the OPA, it is neither necessary nor required that a subsequent or supplemental negative declaration or environmental impact report be prepared. 5. 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 15096(i) of the State CEQA Guidelines. 6. The Board of Directors hereby determines that the Public Improvements are of benefit to the Project Area and the immediate neighborhood in which the Project is located, that no other reasonable means of financing such Public Improvements are available to the community except as provided in the OPA, that the Agency's payment of funds for the cost of the Public Improvements will assist in the elimination of one or more blighting conditions inside the Project Area, and is consistent with the Implementation Plan adopted by the Agency for the Project Area pursuant to Section 33490 of the Health and Safety Code. 7. The terms and provisions of the OP A between the Agency and the Owner Participant, with respect to the development of the Project, in the form submitted and executed by the Owner 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. A copy of the OP A, when executed by both parties, shall be placed on file in the office of the Agency Clerk. 8. Except as may otherwise be provided in the OP A, the Executive Director is hereby authorized and directed to execute on behalf of the Agency all documents necessary and appropriate to carry out and implement the OP A and to administer the Agency's obligations, responsibilities and duties to be performed thereunder. 9. The Board of Directors hereby approves the terms and provisions of the Cooperation Agreement in the form as submitted by the Agency's Executive Director, and authorizes the Chairman to execute, and the Agency Clerk to attest, the Cooperation Agreement on behalf of the Agency. 5 10. Except as may otherwise be provided in the OPA, 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 Cooperation Agreement and to administer the Agency's obligations, responsibilities and duties to be performed thereunder. ADOPTED this 2ih day of November, 2007. ATTEST: M~~~ I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the Orange Redevelopment Agency at a regular meeting thereof held on the 2ih day of November, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: DIRECTORS: Smith, Cavecche, Dumitru, Bilodeau DIRECTORS: None DIRECTORS: Murphy DIRECTORS: None E{~ Mary E. M Clerk 6