200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5162
Fax: (714) 765-5164
www.anaheim.net
SUCCESSOR AGENCY AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: MAY 21, 2024
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: LICENSE/RIGHT-OF-ENTRY AGREEMENT BETWEEN THE
CITY OF ANAHEIM AS SUCCESSOR TO THE ANAHEIM
REDEVELOPMENT AGENCY AND THE CITY OF ANAHEIM
ATTACHMENT (Y/N): YES ITEM # 01
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, as the Successor Agency to the Anaheim Redevelopment Agency, by Motion, approve a License Agreement between the Successor Agency and the City of Anaheim (City), in a monthly rental rate of $20,000 for the initial term with a 3% annual rate increase for each subsequent year, for necessary truck marshaling space for the staging and storing of freight trucks and trailers in conjunction with Convention Center events, for a five-year term with two five-year optional renewals, and authorize the City Manager, or designee, to execute, implement, and administer the License Agreement on behalf of the Successor Agency.
DISCUSSION:
Southern California Edison Company (Edison) entered into an Option Agreement with Katella Operating Properties, LLC (KOP) on March 5, 1999, for property located at 1604 South Anaheim Boulevard. KOP then entered into a Sublicense/Sublease Agreement with the Anaheim Redevelopment Agency on April 30, 2001. Upon the dissolution of the Anaheim Redevelopment Agency in 2012, the Successor Agency to the Anaheim Redevelopment Agency (Successor Agency) assumed all contractual obligations. The Successor Agency then entered into a Sub-Sublease Agreement with American Sports Center (ASC), which was terminated on March 31, 2023, after ASC defaulted on their lease. The Successor Agency is looking to enter into a new sub- sublease agreement with the Anaheim Convention Center (ACC) for truck marshaling, consisting of storing freight trucks and trailers related to Convention Center events.
The property is identified on the Successor Agency’s Recognized Obligation Payment Schedule (ROPS) and funds are received from the Redevelopment Property Tax Trust Fund (RPTTF) administered through and paid by the County of Orange. The RPTTF is the countywide fund that accounts for the collected tax increment deposits of the former redevelopment agencies. ACC has agreed to lease the property or a portion thereof, for $20,000 per month, and assume the maintenance, security, and management of the property. The current monthly payment to KOP is $50,400.81 and is paid through the RPTTF. If approved by the Agency, the payment received from the RPTTF will be License/Right-of-Entry Agreement between the City of Anaheim as Successor to the Anaheim Redevelopment Agency and the Anaheim Convention Center
May 21, 2024
reduced by $20,000. Both Edison and KOP have reviewed and approved the Successor Agency’s request to sub-sublease to ACC.
If approved by City Council, the sub-sublease will be taken to the Orange County Oversight Board for their approval and then submitted to the State of California Department of Finance for its approval.
Staff recommends approving the lease agreement and extension options to provide necessary truck marshaling space for ACC related services.
IMPACT ON BUDGET:
There is no impact to the General Fund. Lease payments from ACC will offset the RPTTF/Recognized Obligation Payment Schedule (ROPS) funds received by the State Department of Finance.
Respectfully submitted,
Sergio M. Ramirez
Executive Director of the Successor Agency to the Anaheim Redevelopment Agency Attachments:
1. Sub-Sublease Agreement
2. Exhibit A