CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: AUGUST 25, 2026
FROM: PUBLIC WORKS DEPARTMENT
SUBJECT: PURCHASE OF 1213 AND 1227 SOUTH CLAUDINA STREET FROM
ATN ASSET HOLDING COMPANY, LLC, AND MEMORANDUM OF
UNDERSTANDING WITH ANAHEIM TOURISM IMPROVEMENT
DISTRICT TRANSPORTATION COMMITTEE
ATTACHMENT (Y/N): YES ITEM # 18
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Agreement for Sale of Property and Joint Escrow Instructions (“Agreement”), in substantial form, between ATN Asset Holding Company, LLC, a California limited liability company, and the City of Anaheim for the City’s acquisition and use of real property located at 1213 and 1227 S. Claudina Street (“Property”), in the acquisition amount of $10,265,000, and authorize the Public Works Director to sign the Certificate of Acceptance of Interest in Real Property attached to the Grant Deed and authorize the City Clerk, in accordance with the aforementioned Agreement, to cause said Certificate of Acceptance of Interest in Real Property to be released to the authorized escrow agent for the recording of the Grant Deed in the Office of the County Recorder of Orange County; and
2. Approve a Memorandum of Understanding (MOU), in substantial form, between the City of Anaheim and the Anaheim Tourism Improvement District Transportation Committee (“Committee”) providing that the Property will be maintained for eligible transportation purposes and requires that, if the Property is not used for such purposes or is sold, the ATID portion of the net proceeds from any disposition will be returned to the ATID Transportation Component Fund; and
3. Authorize and direct the Public Works Director to execute the Agreement, the MOU, and all other related documents and to take such actions as are necessary to implement and administer the Agreement and the MOU, and authorize de minimis changes that do not substantially change the terms and conditions of the Agreement and MOU, so long as the changes are determined to be de minimis by the City Attorney’s Office; and
4. Amend the Public Works FY 2026/27 budget accordingly from the ATID Transportation Component Fund; and
200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
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Fax: (714) 765-5161
www.anaheim.net
Purchase of 1213 and 1227 S. Claudina Street from ATN Asset Holdings Company, LLC, and Memorandum of Understanding with Anaheim Tourism Improvement District Transportation Committee
August 25, 2026
5. Find that the above actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to Sections 15004(b)(2)(A) and 15061(b)(3) of the CEQA Guidelines.
DISCUSSION:
In 2010, the City of Anaheim formed the Anaheim Tourism Improvement District (“ATID”) to provide revenues to cover the cost of activities, improvements, services, and programs that will benefit assessed facilities and the tourism and conventions industry in the City of Anaheim.
In 2020, the City of Anaheim sold the Property to the ATN Asset Holding Company, LLC for approximately $7.4 million; the purchase was financed in the form of a loan from the City (City Loan). The loan documents provide for interest-only payments until April 1, 2030, when the unpaid balance is due. The Anaheim Transportation Network (ATN) subsequently developed the approximately 2.48-acre Property with a 514 kW solar canopy and electric vehicle (EV) charging hub, commonly known as The Charge, which commenced operating in 2024. The infrastructure was used as charging stations for the ATN fleet, which supported transportation services connecting hotels, employment centers, and visitor-serving destinations throughout the Anaheim Resort and Platinum Triangle area. As stipulated in the Agreement, the infrastructure assets on the Property will transfer to the City with no debts, liens, or claims against it.
On January 28, 2026, the ATN Board of Directors announced that it was winding down operations, with its services ending on March 31, 2026, and would therefore be unable to repay the City Loan. An appraisal of the Property was completed in February 2026, which indicated a fair market value of $10,265,000. A separate appraisal was conducted by Mark Hendrickson, MAI, a City-hired consultant, whose appraisal supported the February 2026 appraisal value.
To preserve a critical transportation asset, the ATID Transportation Committee at its March 10, 2026, committee meeting allocated up to $2.9 million towards the acquisition of the Property for future transportation use, with the final ATID amount to be negotiated as part of the purchase agreement.
At its August 19, 2026, committee meeting, the ATID Transportation Committee affirmed its support for the City's purchase of the Property and approved a draft MOU between the City of Anaheim and the ATID Transportation Committee regarding the purchase of the Property.
The proposed purchase price of the Property is $10,265,000, which would be funded by approximately $1,670,000 of ATID Transportation Component Funds and a credit from the City’s cancellation of the City Loan in the amount of approximately $8,595,000 (the City Loan plus interest through the date of the Agreement would be credited in favor of the City at the close of escrow). The ATID and loan cancellation amounts are as of March 13, 2026, and will be updated to the date of the executed Agreement.
Because the ATID Transportation Committee is not a legal entity capable of holding title to real property, the City will acquire and hold title to the Property. Consistent with the MOU developed between the City and the ATID Transportation Committee, the City will hold and manage the Property in a manner consistent with the ATID Management Plan and the allowable uses of ATID Transportation Component Funds.
Purchase of 1213 and 1227 S. Claudina Street from ATN Asset Holdings Company, LLC, and Memorandum of Understanding with Anaheim Tourism Improvement District Transportation Committee
August 25, 2026
The ATID was established to fund activities, improvements, services, and programs that support tourism and convention-related uses, including transportation improvements within the Anaheim Resort and Platinum Triangle. The Anaheim Municipal Code and ATID Management Plan define eligible transportation improvements to include the acquisition of tangible property with a useful life of five years or more, as well as transportation systems that support the movement of visitors and employees. Accordingly, this acquisition constitutes an eligible transportation improvement and is consistent with the authorized use of ATID Transportation Component Funds.
To ensure that ATID funds are used in accordance with the ATID Management Plan, the MOU provides that the Property will be maintained for eligible transportation purposes and requires that, if the Property is not used for such purposes or is sold, the ATID portion of the net proceeds from any disposition will be returned to the ATID Transportation Component Fund. The MOU further requires that any future sale, transfer, or other disposition occur at fair market value.
These provisions maintain the Property’s use for transportation-related purposes and ensure that the ATID Transportation Component Funds remain whole.
The acquisition also supports the City’s ongoing efforts to transition from the prior ATN- operated system to a new long-term transportation model for the Anaheim Resort and Platinum Triangle. To support this transition, the ATID Transportation Committee has approved funding to retain key ATN personnel on a temporary basis to assist the City in completing ATN close- out activities and developing future transportation strategies.
The acquisition ensures continued public control of a key transportation asset during a period of transition and positions the City to implement a long-term transportation strategy for the Anaheim Resort and Platinum Triangle.
Staff also recommends that the Council find and determine that the subject actions are exempt from CEQA pursuant to Sections 15004(b)(2)(A) and 15061(b)(3) of the CEQA Guidelines.
Section 15004(b)(2)(A) states that agencies “may enter into land acquisition agreements when the agency has conditioned the agency’s future use of the site on CEQA compliance.” If the Council approves the requested actions, any development of the property would be subject to future discretionary actions, which may include, but are not limited to, amendments to the General Plan and Zoning Map and project design and construction. These actions would be subject to analysis under CEQA. In addition, since the mere acquisition of the property will not result in a physical change in the environment, it would also be exempt under Section 15061(b)(3), the “common sense exemption” which states that “CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” IMPACT ON BUDGET:
The total acquisition cost of approximately $10,265,000 will be funded through the cancellation of the City Loan on the Property and ATID Transportation Component Funds, with no impact on the City’s General Fund. Funding for the acquisition has been approved by the ATID Transportation Committee and the Department’s FY 2026/27 ATID Transportation Component Fund budget will be increased based on the final amount determined at the close of escrow.
Purchase of 1213 and 1227 S. Claudina Street from ATN Asset Holdings Company, LLC, and Memorandum of Understanding with Anaheim Tourism Improvement District Transportation Committee
August 25, 2026
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachments:
1. Agreement for Sale of Property
2. Memorandum of Understanding
3. Aerial Photo Map