HomeMy WebLinkAbout2 - RESO - SUCCESSOR AGENCY PROPERTY INVENTORYREQUEST FOR
SUCCESSOR AGENCY
ACTION
MEETING DATE:
JULY 2, 2012
TITLE:
ADOPT A RESOLUTION AFFIRMING
SUCCESSOR AGENCY PROPERTY
INVENTORY AND ITS DESIGNATIONS; AND
IMPLEMENTING OTHER ASSOCIATED
ACTIONS AS DIRECTED BY THE
OVERSIGHT BOARD
CITY MANAGER
RECOMMENDED ACTION
CLERK OF THE COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Implementing Resolution
? Other
CONTINUED TO
FILE NUMBER
Adopt a resolution affirming the Successor Agency Inventory of Property and the designations of
those properties as adopted by the Oversight Board and implementing other associated actions
with regard to such properties as directed by the Oversight Board.
DISCUSSION
Real property owned by the former Community Redevelopment Agency of the City of Santa Ana
("Redevelopment Agency") is considered transferred by operation of law to the Successor
Agency. The Redevelopment Agency originally purchased these properties in support of
redevelopment agency programs and projects. The properties were ultimately intended for reuse
or to be retained for governmental purposes as part of the Redevelopment Plan. The Successor
Agency List of Properties which is presented as Attachment A of Exhibit 1, designates the various
categories that these properties fall into.
Health and Safety Code Section 34181(a) states that the Oversight Board shall direct the
successor agency to "dispose of all assets and properties of the former redevelopment agency
that were funded by tax increment revenues" and provides that the Oversight Board, "may direct
the successor agency to transfer ownership of those assets that were constructed and used for a
governmental purpose ...to the appropriate public jurisdiction pursuant to any existing agreements
relating to the construction or use of such an asset." The majority of real property acquired
during the life of the Redevelopment Agency for the purposes of future redevelopment/economic
development was disposed of over the past several years. Therefore, most of the remaining
property now owned by the Successor Agency is being used for a governmental purpose. These
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Property Inventory & Associated Actions
July 2, 2012
Page 2
properties consist of a park, parking lots and parking structures, street right-of- way (ROW), and
museum facilities.
The purpose of this report is to provide information to the Successor Agency regarding these
properties as directed by the Oversight Board at its June 26, 2012 special meeting. An
administrative error was discovered after the Oversight Board action with regard to Property Item
#17 (correction is reflected in Attachment A of Exhibit 1). It was discovered that the former
Redevelopment Agecy owned the entire parcel used as a parking garage rather than 2/3
ownership. The Oversight Board will be informed of the administrative error at the next Oversight
Board meeting. The City Manager has been authorized by the Oversight Board to prepare and
release a Request for Proposals (RFP) for broker services, execute a contract with the
designated broker to assist in the disposal of the Marketable Properties, direct the transfer of title
to property in City service (Governmental Use) to the City of Santa Ana, and authorize Successor
Agency staff to take any actions necessary to correctly vest title in such properties with the City.
The proceeds from the sale of any property net of any costs and expenses incurred by the
Successor Agency in maintaining, and disposing of the properties, would be used first to reduce
outstanding obligations of the Successor Agency and to otherwise wind down the affairs of the
former Redevelopment Agency, with any excess going to the County Auditor-Controller for
disbursement to other taxing agencies.
The Successor Agency properties are broken into the following categories:
Marketable Properties
These properties are to be disposed of in a manner aimed at maximizing value. These properties
will be marketed through a broker selected through a Request for Proposal process.
Governmental Use
Governmental Use properties are fundamentally different from Marketable Properties or
Properties Subject to Enforceable Obligations by virtue of their use in the ongoing provision of
governmental services by the City. A different process is appropriate to deal with the disposition
of these properties, which recognizes such factors as: (i) the importance of the ongoing,
uninterrupted provision of governmental services; (ii) the fact that these properties are subject to
covenants in connection with public financings; and/or (iii) the circumstance that some facilities
are devoted to public use and are special purpose facilities.
Properties Subject to Enforceable Obligations
Properties in this category are the subject of an agreement entered into between the former
Redevelopment Agency and a private party under a written contract that obligated the Agency to
lease or retain these properties to the benefit of the private party. Because of such obligations,
these properties are not subject to a disposition procedure.
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Property Inventory & Associated Actions
July 2, 2012
Page 3
FISCAL IMPACT
California Health and Safety Code Section 34173(e) stipulates that "the liability of any successor
agency, acting pursuant to the powers granted under the act adding this part, shall be limited to
the extent of the total sum of property tax revenues it receives pursuant to this part and the value
of assets transferred to it as a successor agency for a dissolved redevelopment agency." Thus,
the City's obligations as Successor Agency are limited by the amount of property taxes and the
value of assets it receives in its role as the Successor Agency.
`'Yl ?vr c?do
Nancy T. E ards
Interim Exe ive Director
Community Development Agency
NTE/SG/kg
Exhibits: 1. Resolution
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6/21/2012 LES
SUCCESSOR AGENCY RESOLUTION NO. 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
ACTING AS SUCCESSOR AGENCY TO THE FORMER COMMUNITY
REDEVELOPMENT AGENCY AFFIRMING THE SUCCESSOR AGENCY
INVENTORY OF PROPERTY AND THE DESIGNATIONS OF THOSE
PROPERTIES AS ADOPTED BY THE OVERSIGHT BOARD AND
IMPLEMENTING OTHER ASSOCIATED ACTIONS WITH REGARD TO SUCH
PROPERTIES AS DIRECTED BY THE OVERSIGHT BOARD
BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY OF THE
CITY OF SANTA ANA, AS FOLLOWS:
Section 1. The City Council of Santa Ana, acting as Successor Agency, hereby
finds, determines and declares as follows:
A. The Oversight Board of the Successor Agency to the former Community
Redevelopment Agency of the City of Santa Ana ("Oversight Board") has met and has
duly considered a list of various properties formerly held by the Community
Redevelopment Agency of the City of Santa Ana ("Agency").
B. The Oversight Board has reviewed the list of real property previously
owned by the Agency, including without limitation those designated as "Governmental
Use", "Marketable Properties", and "Properties Subject to Enforceable Obligations",
which is set forth as Attachment "A" hereto ("Inventory of Property").
C. Pursuant to Section 34181 of the Health & Safety Code, the Oversight
Board directed the Successor Agency to transfer ownership of those assets and
properties that were funded by tax increment revenues of the dissolved redevelopment
agency and constructed and used for a governmental purpose to the appropriate public
jurisdiction. A different process is appropriate to deal with the disposition of these
properties, which recognizes such factors as: (i) the importance of the ongoing,
uninterrupted provision of governmental services; (ii) the circumstance that these
properties may be subject to encumbrances, including covenants in connection with
public financings; and/or (iii) the circumstance that some facilities are devoted to public
use and are special purpose facilities.
D. Properties formerly held by the Agency have been deleteriously affected
EXHIBIT I
2-5
6/21/2012 LES
by a national and regional real estate recession, which has had particularly negative
effects within the City of Santa Ana. Given current market conditions, it is in the interest
of taxing agencies, including those represented on the Oversight Board, that properties
be marketed in a judicious and careful fashion and not precipitously or in a hurried or
random fashion.
NOW THEREFORE, BE IT RESOLVED by the Successor Agency to the former
Community Redevelopment Agency of the City of Santa Ana as follows:
Section 2. The Successor Agency finds and determines that the foregoing
recitals are true and correct.
Section 3. The Successor Agency affirms the Inventory of Property.
Section 4. The Successor Agency may begin the process to dispose of the
Marketable Properties pursuant to Health & Safety Code Section 34181, including the
preparation of a Request for Proposals for broker services and negotiation and
execution of a broker contract by the City Manager in order to dispose of the Marketable
Properties.
Section 5. The Successor Agency will be reimbursed for all costs and
expenses associated with the maintenance and disposition of the Marketable Properties
and directs staff to make a demand upon escrow for such amounts.
Section 6. The Successor Agency directs the transfer of title to property in City
(Governmental Use) service to the City of Santa Ana ("City") and recommends that
Successor Agency staff take any and all actions necessary to correctly vest title in such
governmental purpose properties with the City.
Section 7. The Clerk of the Council shall certify to the adoption of this
Resolution.
2
2-6
6/21/2012 LES
ADOPTED this day of 2012.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
Lisa E. Storck
Assistant City Attorney
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2012- to be the original resolution adopted by the City Council
acting as the Successor Agency on June , 2012.
Date:
Maria D. Huizar, Clerk of the Council
3
2-7
ATTACHMENT A
TO
EXHIBIT 1
(RESOLUTION)
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2-9
PROPERTY No. 1
Type - Marketable Property
Assessor Parcel #: 005-142-21
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Property Address: 830 N. Parton Street
Property Use and Status: Non-Exclusive License Agreement with adjacent property owner
for this remnant parcel to be combined and used as a surface parking lot.
2-10
830 N. Parton Street
2-11
PROPERTY No. 2
Type - Marketable Property
Assessor Parcel #: 005-142-35
Property Address: 921 N. Flower Street
Property Use and Status: Vacant lot. Approximate square footage - 4,497. Could be
combined and marketed with 842 N. Garnsey and 915 N. Flower.
2-12
921 N. Flower Street
2-13
PROPERTY No. 3
Type - Marketable Property
Assessor Parcel #: 005-142-47
Property Address: 842 N. Garnsey Street
Property Use and Status: Vacant lot. Approximate square footage - 5,946. Could be
combined and marketed with 915 N. Flower and 921 N. Flower.
2-14
842 N. Garnsey Street
2-15
PROPERTY No. 4
Type - Marketable Property
Assessor Parcel #: 005-142-58
Property Address: 915 N. Flower Street
Property Use and Status: Vacant lot. Approximate square footage -1,426. Could be
combined and marketed with 842 N. Garnsey and 921 N. Flower.
2-16
915 N. Flower Street
2-17
PROPERTY No. 5, 6, & 7
Type - Governmental Use
Assessor Parcel W: 398-258-09, 10, & 12
Property Address: 420 N. Main Street
Property Use and Status: Constructed in 1988 this 7-story parking structure provides
approximately 400 spaces of public parking on property owned by the Agency. The
construction was financed through a 2003 Certificates of Participation (COP's). The City
is the lessee under a Lease Agreement relating to the refunding of the COP's. In
accordance with the term of the lease, all right, title, and interest in the Property is vested
in the City upon termination of Lease.
2-18
420 N. Main Street
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2-19
PROPERTY No. 8
Type - Governmental Use
Assessor Parcel #: 398-264-14
Property Address: 308 N. Main Street
Property Use and Status: Surface parking lot subject to short-term lease (5 years
commencing 4-1-11 with two (2) 1-year renewal options) with approximately 12 spaces.
The lot size of 3,750 sq.ft. does not meet minimum lot size requirements, so the lot has no
economic use as a building site. Usage/vehicular circulation is contingent upon utilization of
adjacent public alley.
2-20
308 N. Main Street
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2-21
PROPERTY No. 9, 10, 11 & 12
Type - Governmental Use
Assessor Parcel #: 398-326-11, 398-327-01, 07, & 08
Property Address: 300 E. Fifth Street
Property Use and Status: Constructed in 1987 this 4-story parking structure provides
approximately 700 spaces in two separate structures on property owned by the Agency.
The construction was financed through a 2003 Certificates of Participation (COP's). The
City is the lessee under a Lease Agreement relating to the refunding of the COP's. In
accordance with the term of the lease, all right, title, and interest in the Property is vested
in the City upon termination of Lease.
2-22
300 E. 5th Street
F. 71
2-23
PROPERTY No. 13
Type - Governmental Use
Assessor Parcel #: 398-481-04 & 29
Property Address: 526 E. 4th Street
Property Use and Status: Long term lease with Latino Health Access (LHA), a non-profit
entity, for development and management of a park and community center. Lease combines
one City owned parcel and two Agency parcels under a 20-year lease (9-22-29) with two 10-
year extensions. LHA owns one of the four parcels that the community center is located
upon. Propose to convey Agency parcels to the City to consolidate for this governmental
use.
2-24
526 E. 4th Street
viz
2-25
PROPERTY No. 14
Type - Governmental Use
Assessor Parcel #: 398-482-32
Property Address: 430 E. Third Street
Property Use and Status: Storage warehouse for Bowers Museum, a non-profit entity that
operates the museum for the City. The Bowers Museum main facility is located at 2002 N.
Main Street and is City owned.
2-26
430 E. 3rd Street
2-27
PROPERTY No. 15
Type - Governmental Use
Assessor Parcel #: 398-501-10
Property Address: 314 N. Bush Street
Property Use and Status: A metered public parking lot in the Downtown area consisting of
approximately 8 spaces.
2-28
314 N. Bush Street
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2-29
PROPERTY No. 16
Type - Governmental Use
Assessor Parcel #: 398-503-11
Property Address: NEC of Third & Bush
Property Use and Status: A metered public parking lot in the Downtown area consisting of
approximately 60 spaces. This property is zoned "Open Space" and is intended for use as
flex space - public parking lot that can also be utilized for public events.
2-30
3rd Street & Bush Street
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2-31
PROPERTY No. 17
Type - Governmental Use
Assessor Parcel #: 398-593-07 & 08
Property Address: 310 N. Birch Street
Property Use and Status: Constructed in 1989 this 5-story parking structure provides
approximately 400 spaces of public parking on property owned by the Agency. The
construction was financed through a 2003 Certificates of Participation (COP'S). The City
is the lessee under a Lease Agreement relating to the refunding of the COP's. In
accordance with the term of the lease, all right, title, and interest in the Property is vested
in the City upon termination of Lease.
2-32
310 N. Birch St.
2-33
PROPERTY No. 18
Type - Governmental Use
Assessor Parcel #: 002_163-30
Property Address: 1802 N. Main Street
Property Use and Status: Property is part of the Bowers Museum operating as a children's
museum known as Kidseum. The property is under an Operating Agreement and Ground
Lease with the City. Bowers Museum, a non-profit entity, located at 2002 N. Main is a
City owned facility.
2-34
1802 N. Main St.
2-35
PROPERTY No. 19
Type - Governmental Use
Assessor Parcel #: 402-101-43
Property Address: NEC Edinger & Auto Mall Drive
Property Use and Status: Auto Mall landscape entryway, remnant parcel. Portion of
parcel pending dedication to City for street purposes.
2-36
Edinger Ave. & Auto Mall Dr.
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2-37
PROPERTY No. 20
Type - Governmental Use
Assessor Parcel #: 003-113-27
Property Address: 2011 N. Main Street
Property Use and Status: Public parking lot consisting of approximately 14 spaces.
2-38
2011 N. Main St.
2-39
PROPERTY No. 21
Type - Governmental Use
Assessor Parcel #: 309-491-40
Property Address: West of 514 E. 2°d Street
Property Use and Status: Remnant parcel (973 sf) intended for street purposes
2-40
Parcel West of 514 E. 2nd st.
2-41
PROPERTY No. 22
Type - Governmental Use
Assessor Parcel #: 013-054-06
Property Address: 1413 S. Bristol
Property Use and Status: Remnant parcel from Bristol Street widening. Parcel pending
dedication to City for street purposes, remaining is part of public parking lot.
2-42
1413 S. Bristol
2-43
PROPERTY No. 23
Type - Governmental Purposes
Assessor Parcel #: 109-276-18
Property Address: 1302 W. Elder
Property Use and Status: Remnant parcel from Bristol Street widening pending dedication
to City for street/parkway purposes.
2-44
1302 W. Elder Ave.
2-45
PROPERTY No. 24
Type - Governmental Use
Assessor Parcel #: 198-342-63
Property Address: Mary Common & Melissa Common
Property Use and Status: Remnant parcel utilized for street purposes
2-46
Mary Common & Melissa Common
2-47
PROPERTY No. 25
Type - Governmental Use
Assessor Parcel #: 002-221-25
Property Address: MainPlace Rd near Devon
Property Use and Status: Remnant parcel utilized for street purposes
2-48
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2-49
Mainplace Rd. near Devon Rd.
PROPERTY No. 26
Type - Governmental Use
Assessor Parcel #: 010-234-13
Property Address: 1022 S. Main Street
Property Use and Status: Public parking lot consisting of approximately 15 spaces.
2-50
1022 S. Main St.
2-51
PROPERTY No. 27
Type - Governmental Use
Assessor Parcel #: 398-288-01 & 09
Property Address: 301 S. Sycamore & 300 S. Main Street
Property Use and Status: Public parking lot consisting of approximately 32 spaces.
2-52
301 S. Sycamore St. & 300 S. Main St.
2-53
PROPERTY No. 28
Type - Properties Subject to Enforceable Obligations
Assessor Parcel #: 398-601-02
Property Address: SWC Third & Main Street
Property Use and Status: Surface parking lot subject to a Parking Space Agreement
(leasehold interest) entered into between Agency and Builders Exchange Associates in May
1993 for express use of Agency property supplying 60 parking spaces for use by tenants of
the builders Exchange Building, plus an easement for ingress and egress to provide entry to
the parking lot. There is no termination date for this Agreement.
2-54
Southwest Corner of 3rd St. & Main St.
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