RES-9727 Acquisition for Public Purposes of Certain Real Property Water St.RESOLUTION NO, 9727
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE FINDING AND DETERMINING THAT THE PUBLIC
INTEREST, CONVENIENCE AND NECESSITY REQUIRE THE
ACQUISITION FOR PUBLIC PURPOSES OF CERTAIN REAL
PROPERTY LOCATED AT 125-145 AND 164-180
SOUTH WATER STREET IN THE CITY OF ORANGE FROM
THE ORANGE COUNTY FIRE AUTHORITY AND APPROVING
THE TERMS AND CONDITIONS AND AUTHORIZING THE
EXECUTION OF A PURCHASE AND SALE AGREEMENT AND
JOINT ESCROW INSTRUCTIONS THEREFOR; APPROVING
AN AMENDED COOPERATION AGREEMENT WITH
THE ORANGE REDEVELOPMENT AGENCY RELATING TO THE
SALE OF 164-180 SOUTH WATER STREET
TO THE ORANGE REDEVELOPMENT AGENCY;
AND MAKING CERTAIN FINDINGS
IN CONNECTION THEREWITH.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, 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 Redevelopment Law) and, pursuant to the Redevelopment Law,
is responsible for redevelopment of the redevelopment project areas within the City
of Orange; and WHEREAS, Section 37350 of the Government Code of the
State of California authorizes a city to purchase, lease, receive, hold, and enjoy real and
personal property, and control and dispose of it for the
common benefit; and WHEREAS, the Orange County Fire Authority, a joint powers authority (
OCF A), is the owner of that certain real property located at 105, 125, 145, and
164-180 South Water Street in the City of Orange, County of Orange, State of California,
together with all fixtures,buildings, parking areas, landscaping and other
improvements located thereon (collectively referred to
as, the Property); and WHEREAS, OCF A desires to sell, and the City Council
desires to purchase, the Property in accordance with the terms and provisions of an Agreement
of Purchase and Sale and Joint Escrow Instructions (the Agreement) in the form presented
WHEREAS, following acquisition thereof, the City Council and the Board of
Directors of the Agency (the Agency Board) will consider options for the use of the Property,
including the location of a fire station, the expansion of the City's water plant, and/or the
provision of residential housing. However, neither the City Council nor the Agency has .......
commenced project conceptualization, design, and planning for the Property (or any portion
thereof); and
WHEREAS, Section 15004 of the State California Environmental Quality Act
CEQA) Guidelines provides that compliance with CEQA, should be completed prior to
acquisition of a site for a public project. However, Section 15004 authorizes acquisition of
real property provided that the acquiring agency conditions its future use on CEQA
compliance. Accordingly, the City Council desires to acquire the Property from OCFA in
accordance with the terms and provisions of the Agreement and conditioned upon the
Property's future use being reviewed in compliance with CEQA; and
WHEREAS, on January 14, 2003, the City Council and the Agency Board approved
the terms and provisions of a Cooperation Agreement between the City and the Agency, which
acknowledged that the City was then negotiating with the OCFA for the acquisition of the
Property and that, upon acquisition thereof and the performance of certain actions by the City,
the City would thereafter convey to the Agency a portion of the Property (i.e., that portion
commonly known as 164-180 South Water Street and referred to in the Cooperation
Agreement as the Acquisition Parcel);
and WHEREAS, the Cooperation Agreement provided that the Acquisition Parcel
would be llsed by the Agency for the purpose of increasing, improving and preserving
the community's supply of low- and moderate-income housing available at
affordable housing costs to persons and families of low and moderate
income; and WHEREAS, since the time of execution of the Cooperation Agreement, the
City and the Agency have re-evaluated the use of the Acquisition Parcel for
affordable housing and believe that further studies, reviews and proceedings involving the exercise
of discretion by the City Council, the Agency Board, or their respective staffs and other
departments of the City may result in the use of the Acquisition Parcel for some
other
redevelopment purpose;and WHEREAS, pursuant to Section 33220 the Community Redevelopment
Law of the State of California (Health and Safety Code Sections 33000 et seq.) (herein referred
to as the Redevelopment Law), the City may, for the purpose of aiding and
co-operating in the planning, undertaking, construction or operation ofredevelopment
projects located within the area in which it is authorized to act, dedicate, sell, conveyor lease any of
its property to a
rede:
WHEREAS, Section 33396 of the Redevelopment Law authorizes the Agency, at the
request of the City, to accept a conveyance of City-owned surplus real property (
located either within or outside a redevelopment project area) for the disposition by the Agency
to private persons or to public or private entities by sale or long-term lease for
development;
and WHEREAS, the City proposes to sell the Acquisition Parcel to the Agency, and
the Agency desires to purchase the Acquisition Parcel from the City, pursuant to the terms
and provisions of that certain Amended Cooperation Agreement, in the form presented at
this meeting, which Amended Cooperation Agreement contains a description of the
Acquisition Parcel and a Sale Agreement governing the procedures for conveyance of the Acquisition
Parcel to the Agency;
and WHEREAS, the Acquisition Parcel is located outside the boundaries of the
Orange Merged and Amended Redevelopment Project Area;
and WHEREAS, the City Council has duly considered all of the terms and conditions of
the Agreement and the Amended Cooperation Agreement, as set forth in the agenda
report presented to it and any testimony received at the meeting at which this matter was
considered,and belie:ves that the acquisition of the Property from OCF A and the conveyance of
the Acquisition Parcel to the Agency are 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 requirements, and that the Amended Cooperation
Agreement promotes the objectives of the California Community Redevelopment Law as well as
the Amended! and Restated Redevelopment Plan for the Orange Merged and
Amended Redevelopment Project
Area.NOW, THEREFORE, the City Council of the City of Orange resolves, 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 purchase and sale of the Property in accordance with the terms
and provisions of the Agreement and the subsequent sale of the Acquisition Parcel to the
Agency in accordance with the Amended Cooperation Agreement are not subject to CEQA;
provided,however, that the City and the Agency will comply with CEQA once the future use of
the Property, the Acquisition Parcel or any portion thereof has (or have) been
conceptualized,designed and
planned.3. The public interest, convenience and necessity require, and the City
Council hereby orders, the acquisition by the City from OCFA for public purposes of the fee
simple estate in and to the Property, subject to easements, covenants, rights and rights-
of-way of record, and the continued limited possession and tenancy of the Property by
OCFA for the sum of Three Million Five Hundred Thousand Dollars ($3,500,000), in
cash, through escrow in accordance with the terms and provisions
of
4. The City Council hereby finds and determines that the terms and provisions of
the Agreement between the City and OCFA with respect to the acquisition of the Property, in
substantially the form as submitted by the City Manager, are approved and that the Mayor is
authorized to execute, and the City Clerk to attest, the Agreement on behalf of the City. '""
5. The City Manager is hereby authorized and directed to execute on behalf of
the City all documents necessary and appropriate to carry out and implement the Agreement
and to administer the City's obligations, responsibilities and duties to be performed
thereunder, including the acceptance in the name and on behalf of the City of a grant deed
conveying to the City the above-described interest in the Property or the authority
to terminate the Agreement on or before the expiration of the due diligence period if, in
the discretion of the City Manager, the results of the City's investigation of the condition of
the Property do not support the purchase price of the Property or its feasibility or value
for cummt or future uses, or the results of such investigation are not otherwise satisfactory
to
him.6. In the event the City Manager exercises his authority to terminate
the Agre:ement pursuant to the foregoing paragraph, the City Manager is then authorized
and directed to negotiate with OCF A for the acquisition of the Property for a price that reflec"
ts the fair market value thereof in light of the cost to cure the conditions identified by the
results of the City's investigation of the
Property.7. The City Council hereby finds and determines the Agency's use of funds in
the amount of One Million Eight Hundred Fifteen Thousand Eight Hundred Eighteen
Dollars 1,815,818.00) for acquisition of the Acquisition Parcel and that the acquisition of
the Acquisition Parcel, itself, by the Agency for redevelopment purposes will be of benefit to
the Merged Redevelopment Project Area and is in the vital and best interests of the City and
the health, safety and welfare of its residents, and in accord with the public purposes
and provisions of applicable federal, state and local laws and
requirements.8. The City Council approves the Amended Cooperation Agreement with
the Agency in accordance with the terms and provisions set forth in the agenda report presented
to the City and any testimony received at the meeting at which this matter was considered
and hereby authorizes and directs the Mayor to execute, and the City Clerk to attest, the
Amended Cooperation Agreement on behalf of' the City substantially in the form presented to the
Agency and the City Council, and to take all steps and sign all documents and instruments to carry
out the Arnended Cooperation Agreement on behalf of the
City.9. The City Council hereby finds and determines that, in the event that
the Agency subsequently disposes of the Acquisition Parcel to a private person or a public
or private entity for redevelopment purposes, the distribution of the proceeds of such sale
will be as determined by the City Council at the time of such subsequent
disposition.
10. The officers and employees of the City are authorized and directed, jointly and
severally, to do any and all things necessary or advisable in order to effectuate the purposes
of this resolution and to administer the City's obligations, responsibilities and duties to be
performed hereunder, and all actions previously taken by such officers and employees in
connection with the Agreement and the Amended Cooperation Agreement are ratified and
approved.
ADOPTED this 29th day of April, 2003.
tyofOrange
ATTEST:
I, CASSANDRA J. CATHCART, City Clerk of the City of Orange, California, do
hereby clertify that the foregoing Resolution was duly and regularly adopted by the City
Council of the City of Orange at an adjourned regular meeting thereof held on the 29th day of
April, 2003.
AYES: COUNCILMEMBERS: Ambriz, Alvarez, Murphy, Coontz, Cavecche
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Cassandra J. Cathc , ity Clerk, City of Orange
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