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Acquisition of Leasehold & Business <br />Interests and License Agreements for <br />Certain Real Property Located at <br />2051 -2101 East Edinger <br />March 15, 2004 <br />Page 2 <br />DISCUSSION <br />On May 5, 2003 the City Council, Community Redevelopment Agency and <br />Santa Ana Financing Authority took joint actions to approve the issuance <br />of South Main tax allocation bonds to expand the Auto Mall. The <br />retention and expansion of existing dealerships within the Auto Mall are <br />critical to the long -term financial stability of the City. The bond <br />proceeds will provide the necessary funding for the estimated cost of <br />land acquisition, improvements and expenses related to the affected <br />businesses along the Edinger Avenue frontage, including the subject <br />properties. <br />With respect to the 2051 -2101 East Edinger properties, Vinci Investments <br />(Honda Santa Ana) has independently pursued purchase of the leasehold <br />and business interests and has reached an agreement with the lessees <br />(Exhibit 1) . Honda will purchase the business and building and will <br />assume the ABC license and lease for this two -acre site. Once escrow <br />closes, the Agency will concurrently purchase said property and business <br />interests and rights from Honda, including the ABC license, and retain <br />the lease rights for future expansion of the Auto Mall. The final <br />disposition of the ABC license will be determined by the Agency Board at <br />a later date. Additionally, it is proposed that the Agency execute a <br />License and Right of Entry Agreement with Honda to allow it to utilize <br />the property on a temporary basis, while negotiations for its expansion <br />are underway. <br />ENVIRONMENTAL IMPACT <br />In accordance with the California Environmental Quality Act, Negative <br />Declaration, Environmental Review No. 2003 -149 has been prepared for <br />this project (Exhibit 2). <br />4 2 <br />