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California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, a previously prepared categorical exemption (ER 2003-136) adequately addresses the expected environmental impacts of this Project. On the basis of this review, the Agency finds that there is no evidence from which it can be faidy argued that the Project will have a significant adverse effect on the environment. The Agency hereby approves use of this previously adopted categorical exemption and directs that the Notice of Exemption be prepared and filed with the County Clerk of the County of Orange in the manner required by law. Section 3. The Agency as a result of said hearing, has determined that the public interest, necessity, health, safety and welfare require the acquisition by the Agency of the specified interest in the real properties located at 1941 & 1961 East Edinger Avenue in the City of Santa Ana, California consisting of approximately 106,647 square feet (collectively referred to as "the Properties"). The Properties are situated in the City of Santa Ana, County of Orange, State of California, and more particularly described in Exhibit "A" which is attached hereto and incorporated herein by reference and made a part hereof as though fully set forth herein, for the public purposes hereafter set forth. Section 4. The Agency hereby finds, determines and declares that the public interest, convenience and necessity require the acquisition by said Agency of the Property for the purposes of possible expansion of the Santa Ana Auto Mall or other redevelopment purpose. The location of the Project is on Edinger Avenue and the 55 Freeway and its acquisition is planned and located in a manner that will be most compatible to the greatest public good and the least private injury. Section 5. The taking of the interest in said Property as above described is necessary for the public right of way and is authorized by Section 19 of Article I of the California Constitution, the California Redevelopment Law, Health & Safety Code § 33000 et seq., including but not limited to §§ 33391 & 33342; and the Redevelopment Plan for the City of Santa Ana's South Main Redevelopment Project Area; California Code of Civil Procedure sections 1240.010, 1240.020, and 1240.220, and other applicable law. Section 6. The offers required by Government Code section 7267.2 were made to the appropriate party or parties on or about October 10, 2003. Section 7. The Agency hereby declares that it is the intention of the Agency to acquire in its name, in accordance with the provisions of the laws of the State of California with reference to condemnation procedures, all interests in and to said Properties. Section 8. That if any of the Properties have been appropriate for some public use, the public use to which it is to be applied and taken under this proceeding is a more necessary and paramount public use. Resolution No. CRA 2003-12 Page 2 of 6