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Settlement Agreement With Friends of <br />the Lacy Historic Neighborhood and First <br />Amendment to the DDA with Santa Ana <br />Station District, LLC <br />April 18, 2011 <br />Page 2 <br />2. Direct the Agency General Counsel to prepare and authorize the Executive Director, the acting <br />Chair of the Board in this matter, and Clerk of the Council to execute a settlement agreement <br />with the Friends of the Lacy Historic Neighborhood, Deborah McEwen, the City of Santa Ana, <br />the City Council of Santa Ana, the Redevelopment Agency of the City of Santa Ana, the Board <br />of the Agency, and Santa Ana Station District, LLC. <br />3. Direct the Agency General Counsel to prepare and authorize the Executive Director and Clerk <br />of the Council to execute the First Amendment to the Disposition and Development Agreement <br />between the Community Redevelopment Agency of the City of Santa Ana and Santa Ana <br />Station District, LLC dated June 7, 2010 revising the Scope of Development. <br />4. Adopt the Lacy Housing Fund Program and authorize the deposit and expenditure of $200,000. <br />5. Authorize the release of Request for Proposals for the demolition of 620 E 5th St., 611 N. Minter <br />St., 609, 615-617 E. 6th St., 623 and 707 N. Garfield and 812 E. Santa Ana Blvd., and the <br />relocation of the structures on 613 E. 6th St and 610-612 E. 5th St. <br />DISCUSSION <br />On June 7, 2010, the City Council and Redevelopment Agency approved the final Environmental <br />Impact Report (Final EIR) for the Transit Zoning Code (TZC) and approved a Disposition and <br />Development Agreement (DDA) with Station District, LLC for the development of Agency owned <br />properties in the Station District Project. On July 8, 2010, Friends of the Lacy Historic <br />Neighborhood (FOL) filed a Petition for Writ of Mandamus against the City and Agency challenging <br />the certification of the Final EIR, approval of the Transit Zoning Code, the Station District Project <br />and the related purchase and demolition of certain structures in the Lacy Neighborhood. <br />On February 26, 2011, staff, Agency/City legal counsel, and the developer attended mediation with <br />FOL in an attempt to resolve the complaint without proceeding to court. After extensive <br />negotiations through mediation and the weeks following, a settlement has been reached that <br />maintains the goals and economics of the Station District Project. The following are the terms of <br />the settlement agreement: <br />• The Station District Project will be revised to include rehabilitation of approximately ten <br />(10) single-family and multi-family properties to be situated along Fifth Street in the Lacy <br />Neighborhood. <br />The Agency will be responsible for relocating the single-family structure at 613 E. 6th St <br />and a duplex at 610-612 E. 5th St. to 602 E. 6th St and 511 E. 5th St, respectively, with <br />the developer being responsible for rehabilitating the units as part of its Phase 2. <br />8OA-2