HomeMy WebLinkAbout2013/06/11 Item 16~ ~~_~, SUCCESSOR AGENCY
`-~° TO THE REDEVELOPMENT AGENCY
AGENDA STATEMENT
~~ CITY OF
CHULAVISfA
Item No.:~~
Meeting Date: 6/11/13
ITEM TITLE: A. RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING THE LONG-RANGE PROPERTY
MANAGEMENT PLAN REQUIRED UNDER HEALTH AND
SAFETY CODE SECTION 34191.5 EXCEPT THAT PORTION
OF THE PLAN THAT ADDRESSES PARKING LOT
PARCELS
B. RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING THAT PORTION OF THE LONG-
RANGE PROPERTY MANAGEMENT PLAN REQUIRED
UNDER HEALTH AND SAFETY CODE SECTION 34191.5
THAT ADDRESSES PARKING LOT PARCELS
p.~y~
SUBMITTED BY: ASSISTANT CITY MANAGER
REVIEWED BY: CITY MANAGER
ASSISTANT CIT MANAGER
4/STHS VOTE: YES NO X
SUMMARY
Health and Safety Code section 34191.5 requires Successor Agencies to prepare along-Range
Property Management Plan within six months of receiving the Finding of Completion from the
Department of Finance. The Successor Agency received its Finding of Completion on May 7,
2013. The Successor Agency is required to submit the Long-Range Property Management Plan,
for approval to the Oversight Board and Department of Finance that addresses the disposition
and use of the real properties of the former redevelopment agency. The Successor Agency is
recommending that three (3) of the 23 parcels owned by the former Redevelopment Agency be
sold and that the remaining parcels be maintained for government use as more fully described
below.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the
California Environmental Quality Act (CEQA) and has determined that the activity is not a
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Item No.:~_
Meeting Date: June 11, 2013
Page 2 of 5
"Project" as defined under Section 15378 of the State CEQA Guidelines because the proposed
action consists of a governmental administrative activity that will not result in direct or indirect
physical changes in the environment. Therefore, pursuant to Section 15060(c)(3) of the State
CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is
required.
RECOMMENDATION
That the Successor Agency approves the resolution.
BOARDS/COMMISSION RECOMMENDATION
None
DISCUSSION
Assembly Bills 1X 26 and 1484 ("Dissolution Act") includes many requirements for the
dissolution of redevelopment agency activities, including the disposition of real property, other
than housing assets. The Dissolution Act generally requires the Successor Agency to dispose of
assets and property of the former redevelopment agency for either 1) limited public uses or 2)
disposition into the private market. Disposition is to occur expeditiously and with a view toward
maximizing value, with the disposition proceeds distributed to the affected taxing entities.
Disposition Process
The Dissolution Act allows certain flexibility and local benefits in connection with property
disposition for a Successor Agency that has received a Department of Finance ("DOF") Finding
of Completion. The Successor Agency received its Finding of Completion May 7, 2013 after
having completed the following:
1. Submitted Recognized Obligation Payment Schedules to DOF per the statutory deadlines
and received determinations for each one
2. Paid the amount required through the July 2012 True-Up Process
3. Submitted the Low Moderate Income Housing Fund Due Diligence Review ("LMIHF
DDR") on October 12, 2012 and received final determination from DOF on November 7,
2012 requesting a balance of $1,030,224. This amount was remitted November 14, 2012
which concluded the LMIHF DDR process with DOF.
4. Submitted the Other Funds and Accounts Due Diligence Review ("OFA DDR") and was
ultimately notified on May 2, 2013 that the initial request from DOF of $20,179,716 was
withdrawn (and resulted in no funds being due) after Successor Agency staff provided
additional information and documentation and attended a Meet and Confer with DOF
staff. With the DOF's final determination as to no amounts being due, the OFA DDR
process with DOF was completed.
This work, which included two audits, continuous review and requests for supporting
documentation by DOF, two Meet and Confer conferences in Sacramento, one Meet and Confer
telephone conference and countless hours of work by Successor Agency staff was completed in a
timely manner and resulted in the issuance of the Finding of Completion.
Within six months after receipt of the Finding of Completion, the Successor Agency must
prepare and submit along-Range Property Management Plan ("LRPMP") approved by the
Oversight Board to DOF. Once an approved LRPMP is in place, it governs and supersedes all
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Item No.: ~~
Meeting Date: June 11, 2013
Page 3 of 5
other provisions of the Dissolution Act relating to the disposition and use of real property assets
of the former redevelopment agency.
After the DOF issues a Finding of Completion and approves the LRPMP, the Successor Agency
must transfer all real property, interests in real property, and physical assets (other than those that
may be the subject of an existing enforceable obligation or property deemed to be housing assets
or assets constructed and used for goverrunental purpose) to the Community Redevelopment
Property Trust Fund ("Trust Fund"). The Trust Fund is to be administered by the Successor
Agency according to the LRPMP and serves as the repository for all properties and property
interests covered by the LRPMP.
The LRPMP is required to do all of the following:
1. Include an inventory of all properties in the Community Redevelopment Property Trust
Fund, which was established to serve as the repository of the former redevelopment
agency's real properties. The inventory shall consist of all the following information:
a. Date of the acquisition of the property and the value of the property at that time
and an estimate of the current value of the property
b. Purpose for which the property was acquired
a Parcel data, including address, lot size and current zoning in the former agency
redevelopment plan or specific, community or general plan
d. Estimate of the current value of the parcel including, if available, any appraisal
information
e. Estimate of any lease, rental or any other revenues generated by the property, and
a description of the contractual requirements for the disposition of those funds
f History of any environmental contamination, including designation as a
brownfield site, any related environmental studies, and history of any remediation
efforts
g. Description of the property's potential for transit-oriented development and the
advancement of the planning objectives of the successor agency
h. Brief history of previous development proposals and activity, including rental or
lease of property
2. Address the use or disposition of all of the properties in the Community Redevelopment
Property Trust Fund. Permissible uses include: 1) the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181; 2) the retention of the
property for future development; 3) the sale of the property; or 4) the use of the property
to fulfill an enforceable obligation. The plan shall sepazately identify and list properties
in the trust dedicated to governmental use purposes and properties retained for purposes
of fulfilling an enforceable obligation. With respect to the use or disposition of all other
properties, all of the following shall apply:
a. If the plan directs the use or liquidation of the property for a project identified in
an approved redevelopment plan, the property shall transfer to the city, county, or
city and county.
b. If the plan directs the liquidation of the property or the use of revenues generated
from the property, such as lease or parking revenues, for any purpose other than to
fulfill an enforceable obligation or other than that specified in the bullet directly
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Item No.•~
Meeting Date: June 11, 2013
Page 4 of 5
above, the proceeds from the sale shall be distributed as property tax to the taxing
entities.
c. Property shall not be transferred to a successor agency, city, county, or city and
county, unless the LRPMP has been approved by the Oversight Board and DOF.
A LRPMP Property Inventory Data Worksheet (Attachment A) has been prepazed and will be
submitted to the DOF as the LRPMP. A summary of the 23 pazcels owned by the former
redevelopment agency is included below.
Property Type # of
Parcels Proposed Use/
Dis ositlon # of
Parcels
Vacant 7 Sale of Pro e 3
Park 3 Governmental Use 20
Parkin Lot 13
TOTAL 23 TOTAL 23
Vacant-Development Parcels (3 parcels)
One parcel located on the comer of Third Avenue and E Street is identified as 201 Third Avenue
and is zoned to allow a mixed use development on the site. Staff is recommending that this
parcel be sold.
Two other parcels located in the Bayfront Master Plan azea west of Interstate 5 and adjacent to
the Discovery Center Parking lot aze zoned to allow up to 120,000 squaze feet of
commercial/office development on the site. The Successor Agency has received an offer to
purchase these two parcels, based on an appraisal prepared in April 2013 by an MAI appraiser.
Staff is recommending that these two parcels be sold.
Vacant-Open Space Preserve Parcels (4 pazcels)
The four vacant parcels aze all designated as Open Space Preserve. Three of the parcels are
located within the Bayfront Master Plan area aze recommended to be transferred to State of
California and administered under the Trust for Public Lands by the Port of San Diego. The
remaining parcel is located in Otay Valley Regional Park, and we would recommend the
Successor Agency maintain ownership of this site as this site is contaminated and the liability
should not be transferred to the City.
Park-Memorial Park (1 parcell
The one pazce] is designated as pazk land and is part of Memorial Pazk and contains the City's
Historical Museum. This parcel is located at 360 Third Avenue. It is recommended that this be
transferred to the City to be maintained as a park.
Pazk-Bay Boulevard Park (2 parcels)
These two parcels that aze designated as park land are part of Bay Boulevard Pazk. These are
located at 999 F Street. It is recommended that these be transferred to the City to be maintained
as a park.
Government Use Pazking Lots (13 parcels)
The majority of pazcels owned by the former redevelopment agency are utilized as public
pazking lots, and some of those pazcels are adjacent to City-owned pazcels that together comprise
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Item No.:~
Meeting Date: June 11, 2013
Page 5 of 5
one public parking lot. For example, lot 8 (North of F Street on Church Avenue) is comprised of
4 parcels. Two parcels are owned by the former redevelopment agency and two parcels are
owned by the City. Staff is recommending that any pazcel currently used as a public parking lot
be maintained for governmental use as public pazking. It is important to note that the State of
California has limited the definition of governmental use to exclude public parking lots not
associated with a public building (e.g. City Hall, Police State, and Library). The State has
indicated that it will require Successor Agencies to sell public parking lots unless it can be
proven that these assets were purchased with restricted funds. Our review of the purchase
history for those parcels indicates that restricted funds were not used. However, our
recommendation is based upon the premise that public pazking lots should be included in the
definition of governmental use.
DECISION-MAKER CONFLICTS:
Property within 500 feet:
Staff has reviewed the property holdings of the City Council and has found that Councilperson
Mary Salas has property holdings within 500 feet of the parking lot pazcels which are the subject
of this action. Staff is not independently aware, nor has staff been informed by any City Council
member, of any other fact that may constitute a basis for a decision maker conflict of interest in
this matter.
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact to General Fund.
ONGOING FISCAL IMPACT
There is no on-going fiscal impact as a result of this action.
ATTACHMENTS
A. LRPMP Property Inventory Data
Prepared by: Diem Do, Senior Project Coordinator, Development Services Department
16-5
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16-7
RESOLUTION NO.
RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING THE LONG-RANGE PROPERTY
MANAGEMENT PLAN REQUIRED UNDER HEALTH AND
SAFETY CODE SECTION 34191.5 EXCEPT THAT PORTION
OF THE PLAN THAT ADDRESSES PARKING LOT PARCELS
WHEREAS, Assemby Bill ("AB") 26, as amended in AB 1484, dissolved redevelopment
agencies and required successor agencies to conduct the winding down of the former
redevolopment agencies' affairs; and
WHEREAS, Health and Safety Code Section 34191.5(b) requires the Successor Agency,
to prepare along-range property management plan ("Property Management Plan") that addresses
the disposition and use of the real properties of the former redevelopment agency; and
WHEREAS, Health and Safety Code Section 34191.5(b) also requires the Successor
Agency to submit the Property Management Plan to the Successor Agency's oversight board and
the Department of Finance for approval no later than six months following the issuance to the
Successor Agency of a "finding of completion" pursuant to Health and Safety Code Section
34179.7; and
WHEREAS, the Successor Agency revieved its "finding of completion" from the
Department of Finance on May 7, 2013; and
WHEREAS, the Successor Agency has prepared along-range Property Management Plan
that contains all the information required under Health and Safety Code Section 34191.5; and
WHEREAS, pursuant to Health and Safety Code section 34191.5(x), a Community
Redevelopment Property Trust Fund, has been created to serve a repository of the former
redevelopment agency's real properties identified in Health and Safety Code section
34179.5(c)(5)(C) and which is adminsited by the Successor Agency; and
WHEREAS, appoval of the Property Management Plan is not a "Project" under section
15378 of the California Environmental Quality Act ("CEQA") Guidelines because the proposed
action consists of administrative activity that will not result direct or inditect physical changes to
the environment and, as such, pursuant to section 15061(b)(3) of the CEQA Guidelines is not
subject to CEQA.
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
Redevelopment Agency of the City of Chula Vista, that:
Section 1. The Recitals set forth above are true and correct and are incorporated into this
Resolution by this reference.
J:\Attorney\FINAL RESOS AND ORDINANCES\2013\06 11 13\SA-LRPMP-PK NO Reso SS 6-3-131.doc
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16-8
Resolution No.
Page 2
Section 2. It approves the Long Range Property Management Plan except for that portion
of the Long Range Property Management Plan that addresses parking lot pazcels, in substantially
the form presented, and with such minor modifications as may be required or approved by the
City Attorney, a copy of which shall be kept on file in the Office of the City Clerk.
Section 3. The City Manager,_in his capacity as Executive Officer of the Successor
Agency, is hereby authorized and directed to take any action necessazy to carry out the purposes
of this Resolution and comply with applicable law regarding the Long Range Property
Management Plan, including submitting the Property Management Plan to the Successor's
Agency's oversight board for approval, and to the State of California Department of Finance, and
posting the approved Property Management Plan on the Successor's Agency's website.
Presented by
James D. Sandoval
City Manager, in his capacity as Exective
Officer of the Successor Agency to the
Redevelopment Agency for the City of
Chula Vista
Approved as to form by
/,~ %2-
Glen R. Googins
City Attorney, in his capacity as General
Council of the Successor Agency to the
Redevelopment Agency for the City of
Chula Vista
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6/5/2013 11:39 AM
16-9
RESOLUTION NO.
RESOLUTION OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA APPROVING THAT PORTION OF THE LONG-RANGE
PROPERTY MANAGEMENT PLAN REQUIRED UNDER
HEALTH AND SAFETY CODE SECTION 34191.5 THAT
ADDRESSES PARKING LOT PARCELS
WHEREAS, Assemby Bill ("AB") 26, as amended in AB 1484, dissolved redevelopment
agencies and required successor agencies to conduct the winding down of the former
redevolopment agencies' affairs; and
WHEREAS, Health and Safety Code Section 34191.5(b) requires the Successor Agency,
to prepare along-range property management plan ("Property Management Plan") that addresses
the disposition and use of the real properties of the former redevelopment agency; and
WHEREAS, Health and Safety Code Section 34191.5(b) also requires the Successor
Agency to submit the Property Management Plan to the Successor Agency's oversight board and
the Department of Finance for approval no later than six months following the issuance to the
Successor Agency of a "finding of completion" pursuant to Health and Safety Code Section
34179.7; and
WHEREAS, the Successor Agency reviewed its "finding of completion" from the
Department of Finance on May 7, 2013; and
WHEREAS, the Successor Agency has prepared along-range Property Management Plan
that contains all the information required under Health and Safety Code Section 34191.5; and
WHEREAS, pursuant to Health and Safety Code section 34191.5(x), a Community
Redevelopment Property Trust Fund, has been created to serve a repository of the former
redevelopment agency's real properties identified in Health and Safety Code section
34179.5(c)(5)(C) and which is adminsited by the Successor Agency; and
WHEREAS, appoval of the Property Management Plan is not a "Project" under section
15378 of the California Environmental Quality Act ("CEQA") Guidelines because the proposed
action consists of administrative activity that will not result direct or inditect physical changes to
the environment and, as such, pursuant to section 15061(b)(3) of the CEQA Guidelines is not
subject to CEQA.
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
Redevelopment Agency of the City of Chula Vista, that:
Section 1. The Recitals set forth above are true and correct and are incorporated into this
Resolution by this reference.
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16-10
Resolution No.
Page 2
Section 2. It approves that portion of the Long Range Property Management Plan that
addresses parking lot parcels, in substantially the form presented, and with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be
kept on file in the Office of the City Clerk.
Section 3. The City Manager, in his capacity as Executive Officer of the Successor
Agency, is hereby authorized and directed to take any action necessary to carry out the purposes
of this Resolution and comply with applicable law regarding the Long Range Property
Management Plan, including submitting the Property Management Plan to the Successor's
Agency's oversight board for approval, and to the State of California Department of Finance, and
posting the approved Property Management Plan on the Successor's Agency's website.
Presented by
James D. Sandoval
City Manager, in his capacity as Exective
Officer of the Successor Agency to the
Redevelopment Agency for the City of
Chula Vista
Approved as to form by
-ley
Glen R. Googins
City Attorney, in his capacity as General
Council of the Successor Agency to the
Redevelopment Agency for the City of
Chula Vista
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