SANTA ANA EMPOWERMENT CORPORATION - 2000

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e e Delhi Park Agreements September 5, 2000 Page 2 The total proj ect, estimated at $8.5 million is partially funded. The City of Santa Ana has been successful in securing $788,000 in State Grant funding, $997,500 in 1st year Empowerment Zone funding and $150,000 in General Funds for the proj ect. The second year of Empowerment Zone Funding requires the City to enter into an agreement with the Empowerment Corporation. The agreement provides $1,000,000 for Delhi Community Center and Park improvements. The agreement calls on the City to ensure that all required licenses, registrations, accreditation, permits and inspections be maintained for audit purposes. Also required is the maintenance of monthly records of all ethnic and racial statistics of persons and families benefiting by the improvement and program. All records shall be maintained for 4 years after completion of an audit. On December 15, 1998, the California Youth Authority made grant funding available for the construction of youth centers to non-profit organizations. Delhi Center applied for the grant and was successful in securing $2,250,000. The California Youth Authority Grant requires the grant recipient to own the building and own or retain a long-term lease on the property. Based on this requirement, staff is requesting a land lease agreement with Delhi Center be approved by City Council. Since the California Youth Authority Grant requires Delhi Center to operate the facility for 20 years, the property will be leased to Delhi Center for 20 years, with two options for extension (20 year and 10 year). Upon execution of the land lease Delhi Center will be able to complete the California Youth Authority Grant application. Completion of the application and grant agreement will enable Delhi Center to request a 25% advance of grant funds to begin construction. Since Delhi Center will own, operate and maintain the new community center, a revised development/operational agreement will be prepared for City Council approval. The revised agreement will identify ownership, operation, furnishing and maintenance responsibilities of the community center and park site. The City will also lease office space from Delhi Center for City staff to provide recreational programs in the park, in addition to having use of the 300 seat multi-purpose room, five times per year for City functions, at no additional cost. City will be responsible for all maintenance and programming of the park site. ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, Mitigated Negative Declaration ER No. 00-05 has been prepared for this project. 25.H. Page 66