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REVOTE <br />RE-VOTE <br />RECONSIDERATION OF VOTE <br /> <br /> <br />AGENCY BOAR® MEETING DATE: <br />OCTOBER 4, 2010 <br />TITLE: <br />POTENTIAL RESCISSION AND RE- <br />APPROVAL OF SANTA ANA STATION <br />DISTRICT AFFORDABLE HOUSING <br />DISPOSITION AND DEVELOPMENT <br />AGREEMENT <br />r' ~ ~, ~ -~ <br />EXECUTIVE D RECTOR <br />~` <br />N TIN <br />AGENCY SECRETARY USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1ST Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Consider rescission of the Disposition and Development Agreement with Santa Ana Station <br />District LLC (Developer), subject to Developer's consent, and resubmittal of the Disposition and <br />Development Agreement for Agency Board approval at a future date. <br />DISCUSSION <br />On June 7, 2010, by Resolution CRA 2010-002, the Agency Board entered into a Disposition and <br />Development Agreement (DDA) with Santa Ana Station District LLC under which the developer <br />agreed to acquire real property from the Agency and construct approximately 144 affordable rental <br />and for-sale affordable housing units. <br />On or about September 10, 2010, it became apparent that one or more council members had <br />participated in approving the DDA in their capacities as Agency board members after having <br />received campaign contributions from persons or entities potentially associated with Santa Ana <br />Station LLC and its members. Since the amounts of the contributions exceeded $250 per <br />contributor, voting on the DDA in light of those contributions could be construed as a violation of <br />Charter Section 425. <br />The City Attorney, with the assistance of special counsel, has been reviewing the matter to <br />determine whether the votes in question in any way may have affected the legality of the Agency's <br />approval. On September 27, 2010, the Agency Board met in executive session to confer with and <br />give negotiating directions to the Executive Director regarding potential changes to the price and <br />terms of payment as set forth in the DDA, in light of legal counsel's advice. The Executive Director <br />was instructed to agendize consideration of corrective action, including rescission, subject to <br />negotiations with the Developer. <br />3-1 <br />