SUMMARY REPORT PURSUANT TO
SECTIONS 52200 – 52201
OF THE CALIFORNIA GOVERNMENT CODE
ON
DISPOSITION AND DEVELOPMENT AGREEMENT
FOR THE ANAHEIM & BALL MIXED USE PROJECT
BY AND BETWEEN THE
CITY OF ANAHEIM
AND
GREENLAW DEVELOPMENT, LLC.
The following Summary Report has been prepared pursuant to Sections 52200 – 52201 of the California Government Code. The report sets forth certain details of the proposed Disposition and Development Agreement for the Anaheim & Ball Mixed Use Project between the City of Anaheim (City) and Greenlaw Development, LLC (Developer). The site is approximately 8.3 net acres on six contiguous parcels with Assessor’s Parcel Numbers (APNs) 082-461-23, -24, -25, - 31, -34, and -35 that are improved with various older commercial buildings and paved areas at the southeastern corner of the intersection of Anaheim Boulevard and Ball Road (Site).
BACKGROUND STATEMENT
The following Summary Report is based upon information contained within the Agreement, and is organized into the following six sections:
I. Salient Points of the Agreement: This section includes a description of the project; and the major responsibilities imposed on the City and the Buyer by the Agreement.
II. Cost of the Agreement to the City: This section details the total cost to the City associated with implementing the Agreement.
III. Estimated Value of the Interests to be Conveyed Determined at the Highest Use Permitted Under the Redevelopment Plan: This section estimates the value of the interests to be conveyed determined at the highest use permitted under the existing zoning and the requirements imposed by the Redevelopment Plan.
IV. Estimated Reuse Value of the Interests to be Conveyed: This section summarizes the valuation estimate for the Site based on the required use, and with the conditions and covenants required by the Agreement.
V. Consideration Received and Comparison with the Established Value of the Site:
This section describes the compensation to be received by the City, and explains any difference between the compensation to be received and the established value of the Site.
VI. Creation of Economic Opportunity: This section describes the how the Project will assist in the creation of economic opportunity.
This Summary Report and the Agreement are to be made available for public inspection prior to the approval of the Agreement.
I. SALIENT POINTS OF THE AGREEMENT
A. Project Description
The Site is zoned C-G (General Commercial) with the South Anaheim Boulevard Corridor (SABC) overlay. The Buyer is Greenlaw Development, LLC, a California limited liability company. Buyer is proposing a mixed-use project that includes a 4,586-square-foot retail building and 223 for-sale residential flats and townhomes (Project). This indicates a residential density of 26.8 units per acre on an 8.3 net-acre site. Amenities of the Project are to include a recreation area with pool, separate tot lot/small playground, separate green space and a separate dog park. The proposed Project anticipates a general plan amendment, reclassification, conditional use permit and tentative tract map to allow the development as currently being planned.
B. City Responsibilities
The Agreement requires the City to accept the following responsibilities:
1. The City will sell the Site to the Buyer at the fair market value of $24,425,000. The Purchase Price shall be paid all cash at Closing.
2. The Closing shall occur on or before Friday, December 30, 2022.
3. The City will pay its share of the escrow costs.
4. Site is and shall be delivered from City to Developer in an “as-is” condition
5. City shall approve, which approval shall not be unreasonably withheld, the Preliminary Evidence of Financing for the Project.
6. City shall cause all occupants of the Site (if any) to vacate the Site.
7. City will deliver Site to Developer in an “as-is” condition, with no warranty expressed or implied by City, including without limitation, the presence of Hazardous Materials or the condition of the soil, its geology, the presence of known or unknown seismic faults, or the suitability of any portion of the Site for the development purposes intended hereunder
C. Developer Responsibilities
The Agreement requires the following responsibilities of the Developer:
1. The Developer will purchase the Site from the City for $24,425,000.
2. T he Developer shall pay its share of the escrow costs.
3. The Developer shall have provided or caused to be provided to the City a copy of a valid and binding contract between the Developer and one or more California-licensed general contractors for the construction of the Project.
4. Within the time set forth in the Schedule of Performance, Developer shall prepare the Site for development and construct the Developer Improvements in accordance with the Scope of Development and the plans, drawings and documents submitted by Developer.
5. Developer shall, at its own expense, secure or cause to be secured any and all permits and approvals which may be required for the construction of the Project by the City or any other governmental agency affected by such construction or work.
6. Except to the extent otherwise expressly set forth in this Agreement, all of the cost of planning, designing, remediating Hazardous Materials, developing and constructing all of the Project shall be borne by Developer.
7. Developer shall submit to City the Preliminary Evidence of Financing demonstrating that Developer has (or will have upon the date of Conveyance) sufficient capital and/or has arranged for debt and/or equity financing necessary to undertake the development and construction of the Project.
8. The Developer will purchase the Site in “as-is” condition and will be responsible for any remediation.
II. COST OF THE AGREEMENT TO THE CITY
The costs to acquire the Site were previously incurred by the Anaheim Redevelopment Agency.
The City has not incurred any development costs under this Agreement other than property management costs.
III. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AT
THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN
Section 52201 of the California Government Code requires the City to identify the value of the interests being conveyed at the highest use allowed by the Site’s zoning and the requirements
imposed by the Redevelopment Plan and the General Plan. The valuation must be based on the assumption that near-term development is required. The City retained Mr. Steven G. White, MAI, to estimate the fair market value of the Site assuming the Project is to be considered as representative of the highest and best use of the property; and that the necessary rezoning, General Plan Amendment, Conditional Use Permit and Tentative Tract Map would be approved by the City. Mr. White, in an appraisal dated September 9, 2022, concluded the Site has a fair market value of between $23,520,000 and $25,330,000.
IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED
As discussed above, the City is conveying the Site to the Buyer for the proposed Project at a price of $24,425,000. The price falls within the fair market value range.
V. CONSIDERATION RECEIVED AND COMPARISON WITH THE ESTABLISHED FAIR
MARKET VALUE OF THE SITE
Under the agreement, the City is conveying the Site to the Developer for a purchase price of $24,425,000, which falls within the fair market value range of the Site. Payment from the Developer will be the full purchase price in cash at the close of escrow.
VI. CREATION OF ECONOMIC OPPORTUNITY
The development of the Site will be a catalyst for the revitalization of the South Anaheim Boulevard Corridor. Identified as a blighted corridor under the former Redevelopment Agency, the area is an important link between the Center City, the Platinum Triangle and the Anaheim Resort. The high-quality mixed-use Project will:
1. Provide additional property and sales tax to support City programs and services.
2. Include 10% affordable units (23 units) available to moderate income buyers at price points between $433,500 to $540,200 based on bedroom count.
3. Incorporate 4,586 square feet of commercial space that is anticipated to be leased to local small business owners.
4. Add households to the market area that will spur additional development along the corridor, which will result in increased revenues for City use.
5. Increase employment with the creation of construction jobs.
In addition to these benefits to the City, the County of Orange, Anaheim school districts and other taxing agencies will receive increased property tax revenues from the development of the Site.