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Home My WebLink About80A - BOWERS MUSEUM CORP 1902-1914 N MAIN STREETREQUEST FOR COUNCIL/ ~. AGENCY ACTION ~`''~ ~.t, MEETING BATE: FEBRUARY 17, 2009 TITLE: JOINT PUBLIC HEARING - DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE CHARLES BOWERS MUSEUM CORPORATION FOR 1902-1914 NORTH MAIN STREET CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recomrnended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Iml~lementiing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER EXECUTIV DIRECTOF; RECOMMENDED ACTION CITY COUNCIL ACTION Adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to a Disposition and Development Agreement between the Community Redevelopment Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, for the sale of certain real property in the Merged Redevelopment Project Areas and approving the sale of said real property upon the terms and conditions contained in that agreement. COMMUNITY REDEVELOPMENT AGENCY ACTION Adopt a resolution approving a Disposition and Development Agreement between the Community Redevelopment Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation (Museum). COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting of February 3, 2009, by a vote of 4:0 (Villasenor absent), the Community Redevelopment and Housing Commission recommended that: 80A-1 Joint P.H.- DDA with The Charles Bowers Museum Corporation for 1902-1914 North Main Street February 17, 2009 Page 2 1) the City Council adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to a Disposition and Development Agreement between the Community Redevelopment Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, for the sale of certain real property in the Merged Redevelopment Project Areas and approving the sale of said real property upon the terms and conditions contained in that Agreement, and 2) the Community Redevelopment Agency adopt a resolution approving a Disposition and Development Agreement with The Charles Bowers Museum Corporation, a California non-profit public benefit corporation (Museum). DI ~C'i1S ST(~N In September 2005, the City Council and Redevelopment Agency approved and authorized several actions to facilitate the 30,000 square foot expansion of the Bowers Museum. As part of the transaction, the City effectuated a land exchange with Steadfast Companies, a residential developer who owned the property immediately north of the Museum. Under the exchange, Steadfast was to develop a luxury condominium project on the City's existing 20th Street parking lot, and the Museum was to expand its operation on the northerly Steadfast parcel. The Museum has completed its $14 million expansion; however, the Steadfast development has been on hold due to market conditions. Steadfast recently expressed a willingness to sell the lot to the Agency as they are not interested in pursuing development of the site. Steadfast has agreed to sell their parcel to the Agency for $1,300,000, which is considerably below market value. In turn, the Agency proposes to enter into a Disposition and Development Agreement (DDA) with the Museum for parking on an interim basis and future museum expansion. The DDA provides that the Agency will convey the property to Bowers for $1. At such time as Bowers determines the scope of its future expansion, the appropriate zoning actions will be taken. In the meantime, the existing parking lot will remain and be maintained by Bowers. The DDA contains a deed restriction for the term of the project area (2026) to allow only a public and/or museum use on the property. In return for the property, the Bowers Corporation will be reimbursing the City's general fund for prior year operating expenses in the amount of $1.3 million. These funds will be paid after close of escrow on the parking lot parcel. The City Council will need to take a subsequent action to appropriate the funds once received. 80A-2 Joint P.H.- DDA with The Charles Bowers Museum Corporation for 1902-1914 North Main Street February 17, 2009 Page 3 CEQA COMPLIANCE In accordance with the California Environmental Quality Act, the proposed project is exempt from further review. General Rule Exemption Environmental Review No. 2009-04 will be filed for this project. FISCAL IMPACT Funds from the sale of the property in the amount of $1 will be credited to the Merged Project Area Sale of Land revenue account (no. 570-01- 5721). APPROVED AS TO FUNDS AND ACCOUNTS: Vicki Uehli Francisco Gutierrez Project Manager Executive Director Community Development Agency Finance and Management Services Agency CJN/VU/kcg H:\ACTION ITEMS\COUNCIL\2009\021709 JT PH CC-CRA DDA BOWERS(1).doc 80A-3 bk:02/10/09 RESOLUTION NO. 2009-xxx A RESOLUTION OF THE CITY COUNCIL OF SANTA ANA MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDERATION TO BE RECEIVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA PURSUANT TO A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AND THE CHARLES BOWERS MUSEUM CORPORATION, A CALIFORNIA NON- PROFIT PUBLIC BENEFIT CORPORATION, FOR THE SALE OF CERTAIN REAL PROPERTY IN THE MERGED PROJECT AREA, AND APPROVING THE SALE OF SAID REAL PROPERTY UPON THE TERMS AND CONDITIONS CONTAINED IN THAT AGREEMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Community Redevelopment Agency of the City of Santa Ana (hereinafter referred to as the "Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan for the Merged Project Area, in the sub-area formerly known as the Central City Project Area ("the Redevelopment Plan"). B. In order to implement the Redevelopment Plan, the Agency has agreed, subject to the approval of this Council, to sell certain real property in the Project Area, pursuant to the terms and provisions of that certain Disposition and Development Agreement (hereinafter referred to as the "Agreement") between the Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, which is attached to the Request for Council/Agency Action submitted in conjunction with this Resolution, in which said Site, commonly known as 1902-1914 North Main Street, 110-116 West 20th Street, and 111 West 19th Street, Santa Ana, California, and consisting of approximately 1.1 acres, is further described. This Request for Council/Agency Action and its attachments are incorporated herein by this reference as though fully set forth. 80A-4 C. The Agreement contains all of the provisions, terms, conditions and obligations required by the state and local laws. D. The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, possess the qualifications and financial resources necessary to acquire and insure development of the Site, in accordance with the purpose and objectives of the Redevelopment Plan. E. In accordance with the California Environmental Quality Act, the recommended action is exempt from further review. An exemption for Environmental Review No. 2009-004 will be filed for this project. F. Pursuant to the provisions of the California Redevelopment Law, the Agency and the City Council have held a duly noticed joint public hearing on the proposed sale of the Site pursuant to the Agreement. The City Council has considered all evidence submitted, both oral and written, as has been fully advised prior to adoption of this Resolution. Section 2. The City Council has considered all terms and conditions of the proposed sale and hereby finds and determines that the sale and the redevelopment of the Site pursuant to the Agreement is the best interests of the City of Santa Ana and the health, safety and welfare of its residents, and is in accord with the public purpose and provisions of the applicable state and local laws. Section 3. The City Council hereby finds and determines that the consideration for the sale of the Site pursuant to the Disposition and Development Agreement is not less than the fair reuse value of the Site determined in accordance with the covenants and conditions governing the sale. Section 4. The sale of the Site by the Agency to The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, upon the terms and conditions contained in the Agreement is hereby approved. Section 5. The Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of , 2009. Miguel A. Pulido Mayor 2 80A-5 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Benjamin Kaufman Chief Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached Resolution No. to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of Council City of Santa Ana 80A-6