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Exclusive Negotiating Agreement and <br />Keyser Marston Amendment <br />November 19, 2012 <br />Page 2 <br />MUNITY REDEVL®PME T~eD USI ISSN ECMMEND T14- <br />At its regular meeting of November 6, 2012, by a vote of 6:0, (Morfin absent}, the Community <br />Redevelopment and Housing Commission recommended that the Housing Authority authorize the <br />Executive Director and Recording Secretary to execute the attached Exclusive Negotiating <br />Agreement with the City of Santa Ana and Santa Ana Station District, LLC for the Santa Ana <br />Regional Transportation Center and related Authority property, subject to non-substantive changes <br />approved by the Executive Director, City Manager and respective attorneys. <br />DISCUSSION <br />On December 7, 2009, the Santa Ana Community Redevelopment Agency (Agency} and the City <br />of Santa Ana entered into two Predevelopment Agreements (exclusive right to negotiate <br />agreements} for the Station District with Related California/Griffin Realty Corporation (Santa Ana <br />Station District, LLC), a development team selected after an extensive Request for Qualifications <br />(RFQ) process. The Station District is 94-acre area anchored by the Santa Ana Regional <br />Transportation Center (SARTC). One agreement was for the properties under development now <br />(Station District three-phase affordable housing project), and the second for other properties in the <br />area owned by the City and Agency at and near the SARTC (Exhibit 1-A). The two agreements <br />were necessary given the differing time frames and particulars associated with these two areas of <br />focus. <br />On June 7, 2010, after a comprehensive public outreach effort for the Station District and Transit <br />Zoning Code spearheaded by the developer in conjunction with the AgencylCity, the City Council <br />and Community Redevelopment Agency approved a number of actions in furtherance of the <br />Station District affordable housing development, the subject of the first Predevelopment <br />Agreement. In addition to approval of the Disposition and Development Agreement (DDA) with the <br />developer, the Council/Agency took other actions, such as: approved the Transit Zoning Code <br />(TZC}; certified the Final Environmental Impact Report (FEIR} far the TZC and redevelopment <br />project; authorized the initiation of efforts with the Santa Ana Unified School District (SAUSD) for <br />the joint development of a community center at Garfield Elementary; and approved funds for the <br />targeted Lacy residential loan program. The DDA itself also required the developer to incorporate <br />child care, neighborhood retail and public art components into the project. <br />Subsequently, on July 8, 2010, Friends of the Lacy Historic Neighborhood (FOL} filed a Petition for <br />Writ of Mandamus against the City and Agency challenging the certification of the Final EIR, <br />approval of the Transit Zoning Code, the Station District Project and the related purchase and <br />demolition of certain structures in the Lacy Neighborhood. In April 2011, resolution was reached <br />and a Settlement Agreement and associated amendment to the DDA were approved and <br />executed. As part of the amended DDA and settlement, the Agency and developer agreed to <br />certain modifications to the plan that resulted in changes to the number and location of rental <br />versus for-sale units, as well as the retention and rehabilitation of certain existing structures versus <br />new construction. This arduous legal process and resulting settlement along with the significant <br />