1 MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF ANAHEIM AND
THE ANAHEIM TOURISM IMPROVEMENT DISTRICT TRANSPORTATION
COMMITTEE
REGARDING THE PURCHASE OF CERTAIN TRANSIT PROPERTY
This Memorandum of Understanding (“Memorandum”) is made and entered into effective as of this_________, 2026, by and between the City of Anaheim (“City”), a California municipal corporation and charter city, and the Anaheim Tourism Improvement District Transportation Committee (“Transportation Committee”) and, together with the City, the “Parties”.
RECITALS
The following recitals are a substantive part of this Agreement:
WHEREAS, on July 27, 2010, the City Council (“Council”) adopted an enabling ordinance authorizing the formation of tourism improvement districts in the City and assessments on businesses within such districts, which ordinance is codified at Chapter 2.14 of the Anaheim Municipal Code (“Code”); and
WHEREAS, on September 14, 2010, the Council adopted Resolution No. 2010-151 establishing the Anaheim Tourism Improvement District (“ATID”) for the promotion of local tourism and convention-related programs, as well as transportation improvements within the Anaheim Resort and Platinum Triangle areas within the ATID boundary, and each Assessed Facility (as defined below) within the ATID boundary currently pays an assessment in the amount equal to two percent (2%) of the hotel room "rent" (as defined in Section 2.12.005.140 of the Code); and
WHEREAS, as part of the formation of the ATID, the Council approved the Anaheim Tourism Improvement District of 2010 Management Plan (“2010 Management Plan”) containing the components required by the Code, including but not limited to: (1) a map of the district, (2) the improvements and activities authorized for use of ATID funds and specifically those proposed for the first five years of operation, (3) rules and regulations applicable to the district including the assessment amount equal to two percent of daily rate charged per hotel or motel room, (4) the identification of the assessed hotel/motel businesses referred to as the Assessed Facilities (“Assessed Facilities”), and (5) the governing structure of the management plan including the contracted entity for marketing and promotion and the Transportation Committee; and
WHEREAS, on September 23, 2025, the Council adopted Resolution No. 2025-088 declaring the Council’s intention to adopt modifications relating to: (i) expanding ATID boundaries, (ii) revising activities and improvements that can be funded with ATID funds, (iii) changing allocation of assessment funds to provide funding for housing-related activities and 2 improvements, (iv) establishing a housing committee, and (v) adding newly constructed or converted vacation ownership resort/timeshare units to businesses subject to the assessment; and WHEREAS, on December 9, 2025, the City adopted Ordinance No. 6617 and Resolution No. 2025-097 amending Chapter 2.14 of the Code and the 2010 Management Plan (as so amended, the “Management Plan”); and
WHEREAS, a portion of the funds collected by ATID are allocated to activities, improvements, services and programs to support transit and transportation improvements and activities (“Transportation Component Funds”); and
WHEREAS, the specific uses of the Transportation Component Funds and the priority thereof is governed by the Transportation Committee; and WHEREAS, pursuant to a Franchise Agreement granted by the City to the Anaheim Transportation Network, a California non-profit corporation (“ATN”), ATN provided certain transportation services (“ATN Transportation Services”) within the ATID’s boundaries and funded from Transportation Component Funds; and
WHEREAS, the City has agreed to purchase 1213 and 1227 South Claudina Street, Anaheim, California, as further described and provided in that certain Agreement for Sale of Property and Joint Escrow Instructions, dated August 25, 2026 (the “Transit Property”), from ATN Asset Holding Company, LLC, a California limited company owned and managed by ATN (“ATN Asset Holding”), which Transit Property ATN used to provide the ATN Transportation Services; and
WHEREAS, the Transportation Committee has agreed to apply $1,670,722.67 of Transportation Component Funds (“ATID Purchase Funds”) in connection with the City’s purchase of the Transit Property, representing a portion of the total purchase price of the Transit Property in the amount of $10,265,000,which is estimated to be 16.28% of the total purchase price; and
WHEREAS, the Parties have agreed that, upon any sale, transfer or other disposition by the City of the Transit Property, the estimated 16.28% of the net proceeds after all costs of such sale or disposition have been paid (“ATID Sale Proceeds”) would be designated Transportation Component Funds, such amount shall constitute Transportation Component Funds; and WHEREAS, the Parties wish to memorialize their agreement in this Memorandum to carry out the purposes set forth above;
AGREEMENT
NOW THEREFORE, in consideration of the mutual promises set forth herein, the Parties agree as follows:
3 1. In consideration of the City’s purchase of the Transit Property, the ATID Purchase Funds shall be deposited into escrow to provide for a portion of the purchase price of the Transit Property.
2. Any future sale, transfer or other disposition of the Transit Property by the City shall be for consideration at least equal to the fair market value of the Transit Property as of the time such sale, transfer or other disposition is agreed to, as may be conclusively evidenced in an appraisal obtained by the City.
3. Any ATID Sale Proceeds in connection with any such sale, transfer or other disposition of the Transit Property shall be designated as Transportation Component Funds.
4. Unless it is amended by the parties in writing, this Memorandum shall terminate upon the delivery of ATID Sale Proceeds to Transportation Component Fund Account, or on such earlier or later date as the Parties may agree to in writing.
5. This Memorandum shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Memorandum, the action shall be brought in a state or federal court situated in the County of Orange, State of California.
6. All terms, conditions, and provisions hereof shall inure to and shall bind each of the Parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns.
7. No alteration or variation of the terms of this Memorandum shall be valid unless made in writing and signed by the Parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the Parties hereto.
8. Nothing in the provisions of this Memorandum is intended to create duties or obligations to or rights in third parties to this Memorandum or affect the legal liability of the Parties to this Memorandum to third parties.
9. This Memorandum may be executed in any number of identical counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument when each party has signed one such counterpart. 4 IN WITNESS WHEREOF, the Parties hereto have executed this Memorandum effective on the day and year first above written.
CITY OF ANAHEIM ANAHEIM TRANSPORTATION
IMPROVEMENT DISTRICT
TRANSPORTATION COMMITTEE
Rudy Emami Sergio Ramirez
APPROVED AS TO FORM:
ROBERT FABELA, CITY ATTORNEY
APPROVED AS TO FORM:
ROBERT FABELA, CITY ATTORNEY
Leonie H. Mulvihill Bryn M. Morley
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