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