HomeMy WebLinkAbout03 Potential Rescission Sta Dist DDAREVOTE
RE-VOTE
RECONSIDERATION OF VOTE
AGENCY BOAR® MEETING DATE:
OCTOBER 4, 2010
TITLE:
POTENTIAL RESCISSION AND RE-
APPROVAL OF SANTA ANA STATION
DISTRICT AFFORDABLE HOUSING
DISPOSITION AND DEVELOPMENT
AGREEMENT
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EXECUTIVE D RECTOR
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N TIN
AGENCY SECRETARY USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1ST Reading
^ Ordinance on 2"d Reading
^ Implementing Resolution
^ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Consider rescission of the Disposition and Development Agreement with Santa Ana Station
District LLC (Developer), subject to Developer's consent, and resubmittal of the Disposition and
Development Agreement for Agency Board approval at a future date.
DISCUSSION
On June 7, 2010, by Resolution CRA 2010-002, the Agency Board entered into a Disposition and
Development Agreement (DDA) with Santa Ana Station District LLC under which the developer
agreed to acquire real property from the Agency and construct approximately 144 affordable rental
and for-sale affordable housing units.
On or about September 10, 2010, it became apparent that one or more council members had
participated in approving the DDA in their capacities as Agency board members after having
received campaign contributions from persons or entities potentially associated with Santa Ana
Station LLC and its members. Since the amounts of the contributions exceeded $250 per
contributor, voting on the DDA in light of those contributions could be construed as a violation of
Charter Section 425.
The City Attorney, with the assistance of special counsel, has been reviewing the matter to
determine whether the votes in question in any way may have affected the legality of the Agency's
approval. On September 27, 2010, the Agency Board met in executive session to confer with and
give negotiating directions to the Executive Director regarding potential changes to the price and
terms of payment as set forth in the DDA, in light of legal counsel's advice. The Executive Director
was instructed to agendize consideration of corrective action, including rescission, subject to
negotiations with the Developer.
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Station District DDA
October 4, 2010
Page 2
FISCAL IMPACT'
There is no fiscal impact associated with this action.
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ynthia J. Nelson
Executive Director
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