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HomeMy WebLinkAbout031504 Sale City Property 435-437 Birch StREQUEST FOR COUNCIUAGENCY ACTION MEETING DATE: MARCH 15, 2004 SALE OF CITY -OWNED PROPERTY LOCATED AT 435 - 437 BIRCH STREET �a ��cadon Syr CITY MANAGER CUTIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing the sale of City -owned property located at 435 -437 S. Birch Street and authorize the City Manager to execute all required documents. COMMUNITY REDEVELOPMENT AGENCY ACTION Adopt a resolution authorizing the purchase of City -owned property located at 435 -437 S. Birch Street and authorize the Executive Director to execute all required documents. DISCUSSION The City of Santa Ana purchased 435 -437 S. Birch Street (Exhibit 1) utilizing Federal HOME funds in 1997 to remove a substandard apartment project and support the Heninger Park Neighborhood Association's interest in high quality in -fill housing. Single - family homeownership was identified as the best use of the property following staff's evaluation of the site's development potential. After review, staff has determined that the affordable homeownership programs offered by the Community Redevelopment Agency are most 107 fo Sale of City -Owned Located at 435 -437 March 15, 2004 Page 2 Property Birch Street appropriate to support the City's development objectives for this site. Staff therefore recommends that the City sell 435 -437 S. Birch Street to the Community Redevelopment Agency for $411,000, which represents the original acquisition cost. The development will be sensitive to the historic character of the surrounding neighborhood and has been designed with the full input and support of the Association. FISCAL IMPACT Funds for the acquisition of this property are available in the South Harbor Low and Moderate Housing Fund (account no. 504 - 936 - 6611). Proceeds from the sale of the property to the Community Redevelopment Agency will be deposited in the City's HOME Program (account no. 130- 148- 6631/00094). APPROVED AS TO FUNDS AND ACCOUNTS: �?- Jo P. Reekstin L Executive Director Community Development Agency JPR /SK /mlr H:ACtions \2004CC \JT CC- CRA- Saleof435- 435Birch 3 -15 -04 108 Coloma ve Director e & Management Services Agency 6 SUBJECT SITE ti 435 & 437 South Birch Street Exhibit 1 CHESTNUT STREET F w U.1 U) w J J U m S F O CAMILLE STREET I SUBJECT SITE ti 435 & 437 South Birch Street Exhibit 1 110 3/9/04LS RESOLUTION NO. 2004- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE SALE OF CITY -OWNED PROPERTY LOCATED AT 435 -437 S. BIRCH STREET TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS AS NECESSARY 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 City of Santa Ana ( "City ") currently owns the property located at 435 -437 S. Birch Street (the "Property ") which was purchased using federal HOME funds by council action on October 7, 1997. The City had acquired the Property in order to remove a substandard apartment building and to pursue quality in -fill housing development for the Heninger Park neighborhood. B. Santa Ana Municipal Code section 2 -709 permits the sale of city real property made to any city, county, city and county, state or federal government, or any political subdivision of any of them, or to any nonprofit public benefit corporattn formed or controlled by the city without a public hearing. C. After extensive review, staff has determined that the affordable homeownership subsidies offered by the Community Redevelopment Agency of the City of Santa Ana ( "Agency ") are most appropriate to support the City's objectives in Heninger Park. For this reason, staff supports the City of Santa Ana's sale of 435 -437 S. Birch Street to the Agency for $411,000, which represents the original acquisition cost. D. Subject to Council and Agency approval, the City has agreed to sell the Property to the Agency pursuant to the terms and provisions of that certain Purchase and Sale Agreement (hereinafter referred to as the "Agreement ") between the City and the Agency, which is on file in the office of the Executive Director of the Agency. E. The Agreement contains all of the provisions, terms, conditions and obligations required by the state and local laws. F. The Agency possesses the qualifications and financial resources necessary to acquire and insure development of the Property, in accordance with the purpose and objectives of the redevelopment law. G. The City has duly considered all of the terms and conditions of the proposed sale, and believes that the proposed sale is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purpose and provisions of applicable state and local laws and requirements. 111 H. The proposed sale of the Property is exempt from further review and in accordance with the California Environmental Quality Act, categorical exemption ER No. 2004 -81 will be filed forth is project. I. The City hereby finds and determines that the information set forth herein is true and correct. J. The City hereby approves the sale of the Property to the Agency. Section 2. The City Manager or his /her designee ( "City Manager ") is hereby authorized, on behalf of the City, to execute such documents that are to be signed by the City in connection with the sale of the Property, with such non - substantive changes as may be approved by the City Attorney. A copy of any such documents, when executed, shall be placed on file in the office of the Clerk of the Council. Section 3. The City Manager is hereby authorized, on behalf of the City, to sign all documents necessary and appropriate to carry out and implement the sale and to administer the City's obligations, responsibilities and duties to be performed. Section 4. The Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 2004. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Lisa E. Storck Assistant City Attorney AYES: NOES Councilmembers: 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 113 114 3/9/04LS RESOLUTION NO, CRA 2004 -05 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE PURCHASE OF CITY -OWNED PROPERTY LOCATED AT 435 -437 S. BIRCH STREET AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE DOCUMENTS AS NECESSARY BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Community Redevelopment Agency of the City of Santa Ana hereby, finds, determines and declares as follows: A. The City Council of the City of Santa Ana previously approved the purchase of property located at 435 -437 S. Birch Street (the "Property ") using federal HOME funds by council action on October 7, 1997. This acquisition was made in order to remove a substandard apartment building and to pursue quality in -fill housing development for the Heninger Park neighborhood. The Property is not located within a redevelopment project area. B. Santa Ana Municipal Code section 2 -709 permits the sale of city real property made to any city, county, city and county, state or federal government, or any political subdivision of any of them, or to any nonprofit public benefit corporation formed or controlled by the city without a public hearing. C. Upon extensive review, the Community Redevelopment Agency of the City of Santa Ana ( "Agency ") staff has determined that the affordable homeownership subsidies offered by the Agency are most appropriate to support the City's objectives in Heninger Park. For this reason, staff supports the City of Santa Ana's sale of 435 -437 S. Birch Street to the Agency for $411,000, which represents the original acquisition cost. D. Pursuant to Sections 33334.2(a) and 33334.6(c) of the California Community Redevelopment Law (California Health and Safety Code Section 33000 et sec.) not less than 20 percent of all taxes which are allocated to the Agency are set aside by the Agency in a Low- Moderate - Income Housing Fund ( "the Housing Funds ") and used by the Agency for the purpose of increasing, improving and preserving the community's supply of low and moderate housing available at affordable housing costs to persons and families of low- and moderate - income, including very -low- income persons. E. Pursuant to Section 33334.2(e) of the Community Redevelopment Law, the Agency may exercise any and all of its powers to carry out this purpose. F. Pursuant to Section 33334.6(a) of the Community Redevelopment Law, the California State Legislature has found and declared that the provision of affordable housing outside of redevelopment project areas can be of direct benefit to those project areas in assisting the accomplishment of project objectives. 11-,� G. Pursuant to Section 33334.2(g) of the Community Redevelopment Law, Housing Funds may be used to assist in the provision of housing for low- or moderate - income households outside the Redevelopment Project area if such use will be of benefit to the project. H. The Agency shall use Housing Funds to purchase the Property, which is located outside the Redevelopment Project area. I. The Agency has duly considered all of the terms and conditions of the proposed sale, and believes that the proposed sale is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purpose and provisions of applicable state and local laws and requirements. J. The proposed sale of the Property is exempt from further review and in accordance with the California Environmental Quality Act, categorical exemption ER No. 2004 -81 will be filed for this project. K. The Agency hereby finds and determines that the information set forth herein is true and correct. L. The Agency hereby finds and determines that the sale of the Property will provide housing for low- or moderate - income persons. M. The Agency hereby approves the purchase of the Property from the City. Section 2. The Executive Director of the Agency or his /her designee ( "Executive Director ") is hereby authorized, on behalf of the Agency, to execute such documents that are to be signed by the Agency in connection with the sale of the Property, with such non - substantive changes as may be approved by the Agency General Counsel. Section 3. The Executive Director is hereby authorized, on behalf of the Agency, to sign all documents necessary and appropriate to carry out and implement the sale and to administer the Agency's obligations, responsibilities and duties to be performed. Section 4. The Agency finds and determines that the use of the Housing Funds to purchase the Property as authorized by this resolution will be of benefit to the project and assist in the accomplishment of project objectives. 116 ADOPTED this day of 2004. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant General Counsel AYES: NOES: Boardmembers: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. CRA 2004 -05 to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Secretary Community Redevelopment Agency of the City of Santa Ana I L7 1 zs