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City of Santa Ana <br />November 25, 2020 <br />Page 4 <br />4.The Hearing On The Proposed Resolution of Necessity Is Inappropriate Because <br />The Agency Is Already Irrevocably Committed To Adopting The Resolution Of <br />Necessity <br />Wells Fargo is concerned that no meaningful consideration of its objections and concerns will <br />take place at the hearing of the resolution of necessity concerning the proposed Project given <br />thatthe Cityappears to have already committed itself to acquiring the Subject Property. <br />Redevelopment Agency v. Norm's Slauson(1991) 173 Cal.App.3d 1121, addressed such a <br />situation. In that case, the Redevelopment Agency of the City of Huntington Park brought an <br />action in eminent domain to take a major portion of a restaurant's parking lot. The <br />redevelopment agency's attempt to take the property in question was preceded by an <br />agreement between the agency and a developer by which the agency agreed to acquire the <br />propertyfor transfer to the developer and the developer would build a condominium project <br />thereon. The Court of Appeal started its analysis with an explanation of the purpose of a <br />hearing on a resolution of necessity: <br />"Implicit in this requirement of a hearingand the adoption of a resolution of <br />necessity is the concept that, in arriving at its decision to take, the Agency <br />engage in a good faith and judicious consideration of the pros and cons of the <br />issue and that the decision be buttressed by substantial evidence of the <br />existence of the three basic requirements set forth in Code of Civil Procedure, <br />section 1240.030."Id.at pp. 1124-25. In affirming the trial court's determination <br />that the agency had no right to take the property, the court concluded that: "\[i\]t <br />seems clear that the hearing which led to the adoption of the resolution of <br />necessity was a sham and the Agency's policy-making board simply 'rubber <br />stamped'a predetermined result."Id.at p. 1127. The Court also stated that: "By <br />the time the agency actually conducted a hearing to determine the 'necessity'for <br />taking the property in question, it had, by virtue of its contract with the developer <br />and issuance of revenue bonds, irrevocably committed itself to take the property <br />in question, regardless of any evidence that might be presented at the hearing." <br />Id. <br />The concerns raised by the court in Norm's Slausonapply with equal vigor here as the City has <br />irrevocably committed to acquire the Subject Property in order to proceed with the Project. <br />Presumably, numerous contracts have been executed with various third party vendors and <br />contractors and the City will simply be "rubber stamping"a predetermined result. Accordingly, <br />Wells Fargo is concerned that despite what objections or evidence may be presented at the <br />December 1, 2020 hearing on the resolution of necessity for the proposed Project, the hearing <br />will be nothing more than a procedural technicality due to the fact that the City has irrevocably <br />committed itself to take the Subject Property. <br /> <br />