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"Except as specifically exempted herein, the Agency may acquire but is not required to acquire, all real property located in the Project area, by gift, devise, exchange, purchase, eminent domain, or any other lawful method. "It is in the public interest and is necessary in order to eliminate the conditions requiring redevelopment and in order to execute the Plan, for the power of eminent domain to be employed by the Agency to acquire real property in the Project Area. "The Agency shall not acquire interests in oil, gas or other mineral substances within the Project Area, except to preclude surface drilling within the Project Area. "The Agency is not authorized by law to acquire real property owned by public bodies which do not consent to such acquisition. The Agency is authorized, however, to acquire public property if it becomes private property by being transferred by deed, lease, or otherwise to private ownership or control before the Agency completes land disposition within the entire Project Area if the Agency and the private owner do not enter into a participation agreement. "The Agency shall not acquire real property to be retained by an owner pursuant to a participation agreement if the owner fully performs under the agreement. The Agency is authorized to acquire structures without acquiring the land upon which those structures are located. The Agency is also authorized to acquire any other interest in real property less than a fee. "The Agency shall not acquire real property on which an existing building is to be continued on its present site and in its present form and use without the consent of the owner, unless (1) such building requires structural alteration, improvement, modernization, or rehabilitation, or (2) the site or lot on which the building is situated requires modification in size, shape, or use, or (3) it is necessary to impose upon such property any of the standards, restrictions and controls of the Plan and the owner fails or refuses to participate in the Plan by executing a participation agreement." In accordance with Ordinance No. NS-2290 (adopted on May 6, 1996, and effective on June 5, 1996), eminent domain proceedings to acquire property within the Central City Redevelopment Project must be commenced no later than June 5, 2008, and those properties previously exempted from eminent domain by the Agency remain exempt. Section 3. CEQA. In accordance with the California Environmental Quality Act, the recommended action is exempt from further review pursuant to California Code of Regulations, Title 14, Chapter 3, Section 15061(b)(3). The project has been evaluated and found to have no significant effect on the environment. A Notice of Exemption for Environmental Review No. 2007-83 will be filed for this project. Section 4. Severabilitv. If any sections, subsections, sentences, clauses, phrases or portions of this Ordinance are for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. Ordinance No. NS-2745 Page 2 of 3