80A - JOINT PH - AGMT ACQUISITION OF PROPERTIES

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Joint Public Hearing — Sale of Street Properties April 5, 2016 Page 2 423 S. Raitt Street (APN 007 - 273 -12 and 007 - 273 -14) in the amount of $843,000, and 710, 714, and 720 E. 6th Street (APN 398 - 334 -03, 398 - 334 -04, and 398 - 334 -05) in the amount of $900,000, for a total of $1,743,000 plus closing costs and escrow fees, subject to non - substantive changes approved by the Executive Director and Authority General Counsel. DISCUSSION On November 17, 2015, the City Council approved staff recommendations to move forward with the administrative process required to acquire real properties to provide for new open space using Community Development Block Grant (CDBG) funds in the amount of $1,743,000 for the above properties. These properties transferred to the Housing Authority, acting as the Housing Successor Agency, upon dissolution of the former Community Redevelopment Agency in 2012. On January 19, 2016, the City Council approved a Substantial Amendment to the 2015 -2016 Annual Action Plan for the reallocation of CDBG funds for the acquisition of the 6t" and Lacy Street Open Space and the Raitt and Myrtle Street Open Space projects (Exhibit 1). These actions were taken in an effort to fulfill the land replacement requirements from the National Park Service (NPS) for the Rancho Santiago Community College District's (RSCCD) school of continuing education, Centennial Education Center (CEC), to remain at Centennial Park and to provide neighborhood parks in areas with limited open space. Centennial Park was obtained from the United States government with use restrictions that require the land to be used for public recreational purposes. Approximately 2.6 acres of the park is currently utilized by the RSCCD for non - recreational purposes, to house its adult education campus, CEC. NPS, the agency charged with interpreting and enforcing the use restrictions, is requiring that the RSCCD vacate the site by November 2019 or work with the City on a land conversion plan. On August 18, 2015, the City Council authorized an agreement with the RSCCD to move forward with a land conversion process, required by NPS to consider allowing CEC to remain at Centennial Park. The agreement identifies both the 6th and Lacy Street properties (0.42 acres) and the Raitt and Myrtle Street properties (1.01 acres) for a total of 1.43 acres as potential replacement properties for land conversion. The Housing Authority obtained appraisals for these properties between June and August of 2015, and the appraised value totaled $1,743,000 for all five parcels. Approval of this item will allow for the acquisition of an additional 1.43 acres of land conversion and replacement properties. This will exceed the required land replacement requirements and should exceed the land value requirements from NPS to allow CEC to remain at Centennial Park while providing neighborhood parks in needed communities. ENVIRONMENTAL COMPLIANCE In accordance with the California Environmental Quality Act, the recommended action is exempt for further review per Section 15061(b)(3). The general rule exemption allows projects to be 80A -2