090704 Jt PH Adotpion Amend Merger SA Redvlp Proj Areas EXHIBIT 2

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INTRODUCTION A. REPORT TO CITY COUNCIL PURPOSE AND CONTENTS This Report to the City Council ( "Report ") for the proposed adoption of the merger amendments ( "Amendments" or "Merger ") to the existing Redevelopment Plans ( "Redevelopment Plans" or "Plans ") for the Central City Redevelopment Project, Inter - City Commuter Station Redevelopment Project, North Harbor Redevelopment Project, South Harbor Redevelopment Project, South Main Redevelopment Project, and the Bristol Corridor Redevelopment Project ( "Project Areas" or "Projects ") has been prepared by the Santa Ana Community Redevelopment Agency ( "Agency ") to fulfill the requirements of Sections 33486, 33457.1, 33354.6 and 33352 of the Community Redevelopment Law (Health and Safety Code Section 33000 et seq., the "CRL "). As discussed in the following section, the purpose of the proposed Amendments is to merge the Project Areas ( "Merged Project Area ") for more efficient administration of the Agency's redevelopment program and to contribute to revitalization of the Project Areas through increased economic vitality of such areas and through increased and improved housing opportunities in or near such areas. Section 33354.6(a) of the CRL requires that when an agency proposes to amend a redevelopment project that utilizes tax increment to add territory to a project area; to increase either the limitation on the number of dollars (tax increment limit) to be allocated to the redevelopment agency or the time limit on establishing loans, advances, and indebtedness (debt establishment); to lengthen the period during which the Plan is effective (plan effectiveness); to merge projects, or to add significant additional capital improvement projects; an agency shall follow the same procedures it would for the adoption of a redevelopment plan. Section 33486 of the CRL provides that a merger may proceed by amendment of each redevelopment plan as provided in Article 12 (commencing with CRL Section 33450). Section 33457.1 of the CRL provides that "[tjo the extent warranted by a proposed amendment to a redevelopment plan, (1) the ordinance adopting an amendment to the redevelopment plan shall contain the findings required by Section 33367... "Therefore, because the Agency is proposing to merge projects, which is a technical amendment, the Agency will follow applicable provisions, to the extent warranted, of CRL Sections 33320.1, et seq, and 33450, et seq., specifically, pursuant to Section 33457.1. This Report to the City Council is one of the legally required documents leading to the adoption of the proposed Amendments. Its purpose is to provide the information, documentation, and evidence required by CRL Section 33352 to accompany the proposed Amendments when these are submitted by the Agency to the City Council of the City of Santa Ana ( "City Council ") for review. Such information, documentation, and evidence is provided to assist the City Council in its consideration of the proposed Page 6 of 190 Report to the City Council for the Merger of the Santa Ana Redevelopment Projects PA0403012.SNTA:CK:gbd 19090,003,004105 /28/04 Keyser Marston Associates, Inc. Page 1 �p