Agenda Item AGENDA STAFF REPORT ASR Control 24-000021
MEETING DATE:	02/27/24
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	3
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Thomas A. Miller (714) 834-6019
	Brian Bauer (714) 834-5663

Subject: Assignment of Lease Agreement with Redondo Investment Company

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Consent Calendar

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: $21,448

Funding Source: Other: 100% (Lessee)	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 3/8/1983, #31

RECOMMENDED ACTION(S):

Find that the project is categorically exempt from the California Environmental Quality Act (CEQA), Class 1 - Existing Facilities pursuant to CEQA Guidelines section 15301.

Approve the Assignment of Lease for the Ramon Peralta Adobe located at 6398 E. Santa Ana Canyon Road, Anaheim, California from Redondo Investment Company as Assignor and Anaheim Hills Shopping Village LLC, a Delaware limited liability company as Assignee.

Authorize the Chief Real Estate Officer or designee, to execute the Assignment and Consent Agreement and execute subsequent documents necessary for the assignment and lease administration, as well as amendments that make non-monetary and/or monetary changes to the lease that do not increase County costs by more than $75,000 per year, as approved by County Counsel.

SUMMARY:

Approving the lease assignment for the Ramon Peralta Adobe located at 6398 E. Santa Ana Canyon Road, Anaheim, California, will allow the transfer of the lease from Redondo Investment Company to Anaheim Hills Shopping Village LLC, and preserve the continued operation of the Ramon Peralta Adobe for public access and enjoyment.

BACKGROUND INFORMATION:

The Ramon Peralta Adobe (Adobe) has been owned by the County of Orange (County) since May 1977. The Adobe is located on a 0.245-acre site on Santa Ana Canyon Road and Fairmont Boulevard in Anaheim (Premises). The property surrounding the Adobe site was sold to Redondo Investment Company (Redondo) to be developed into a shopping center (Shopping Center). As a condition of the lease, which included the development of the adjacent area to the Adobe into commercial office space, Redondo was required to restore and maintain the Adobe pursuant to Lease Agreement (Lease) dated March 8, 1983. The Adobe is not the oldest adobe built in the Santa Ana Canyon area; however, it is the only one still standing in the canyon. The Adobe contains a small museum featuring the history of the Santa Ana Canyon from the first Spanish explorers to the area in 1769 to the present. Historical exhibits are available for public viewing including artifacts excavated on site and a timeline mural. A furnished period room and numerous photographs tracing the history of the first European settlers to the canyon are on exhibit. The primary purpose of the Lease was the restoration, maintenance and operation of the Adobe for public use. The Lease required Redondo to operate the Adobe to allow viewing and inspection by the public. On March 26, 1984, the County executed the Lease with Redondo for the Premises with a term of 55 years commencing on April 1, 1984. The Lease requires written authorization prior to the assignment taking place. The County may not arbitrarily withhold authorization of the assignment.

In December 2023, Redondo accepted an unsolicited offer to purchase the Shopping Center. As part of the sale, Redondo will assign the Lease to the buyer, Anaheim Hills Shopping Village, LLC (Shopping Village), a Delaware limited partnership. Redondo and Shopping Village have fulfilled the requirements of the Lease for the assignment to take place.

There will be no changes to the terms and conditions of the Lease itself. The assignment will allow Shopping Village to continue operation of the Adobe as per the Lease in force.

CEO/Real Estate has received and reviewed a notarized grant deed, Redondo restated partnership agreement, buyer’s articles of incorporation, limited partnership agreement, escrow information such as escrow number, officer and contact information, and buyer completed company profile questionnaire which included company information, management team information, description of relevant experience, references and disclosures of litigation.

CEO/Real Estate has reviewed all the above documents and recommends approval of the assignment of the Lease to Shopping Village.

Compliance with CEQA: The proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to Section 15301, because it provides for leasing of public facilities with no change in existing use.

FINANCIAL IMPACT:

Approval of the lease assignment will result in continued revenue to the County of a minimum of $21,448 annually. Revenue for this item will be absorbed in the Fund 405 FY 2023-24 Modified Budget and included in the budget for future fiscal years.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A – Summary of the Assignment and Consent Agreement
Attachment B – Location Map
Attachment C – Assignment and Consent Agreement
Attachment D – Redline of the Ramon Peralta Adobe Lease Agreement