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HomeMy WebLinkAbout080607 PH Agmt for Sale Real Prop Escrow Inst CDA and Martin InvestREQUEST FOR AGENCY/ COUNCIL ACTION MEETING DATE: AUGUST 6, 2007 TITLE: PUBLIC HEARING - AGREEMENT FOR SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND MARTIN INVESTMENT COMPANY FOR REMNANT PARCEL IN THE MERGED REDEVELOPMENT PROJECT AREA CITY MANAGER OXECU VE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ® As Recommended 7*p ❑ As Amended ❑ Ordinance on 1 st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to an Agreement for Sale of Real Property and Escrow Instructions between the Community Redevelopment Agency and Martin Investment Company, a California Limited Partnership, for the sale of certain real property in the Merged Redevelopment Project Area generally located in the 1300 block of S. Ritchey, and approving the sale of said real property upon the terms and conditions contained in that Agreement. COMMUNITY REDEVELOPMENT AGENCY ACTION C'�Aa w I'COH Adopt a resolution approving an Agreement for Sale of Real Property and Escrow Instructions with Martin Investment Company, a California Limited Partnership, for property generally located in the 1300 block of S. Ritchey. DISCUSSION In the mid 1980s, the Redevelopment Agency acquired land from Santa Fe Railroad for development of the Santa Ana Auto Mall. Part of that acquisition included a remnant strip of land (rail spur) on the west side of Ritchey Avenue across from the Auto Mall, Exhibit 1. Martin Investment Company (Buyer) owns several parcels of land immediately south of the Agency owned property. In order to maximize the development 5 -5 P. H. - Agreement Real Property and Martin Investment August 6, 2007 Page 2 for Sale of Escrow Instructions - Company options, they propose to purchase the Agency owned parcel and incorporate it into their project. Martin Investment Company has received Site Plan approval and is currently in plan check for a development consisting of three new industrial buildings totaling 31,900 square feet. There is an existing 24,010 square foot industrial building that will remain on the adjacent site currently owned by the Buyer. The project will also include consolidation of the lots. The remnant parcel owned and is consistent with th e parcel has been appraised The highest and best use southerly parcel. ENVIRONMENTAL COMPLIANACE by the Agency is zoned M -1 (light industrial) proposed development. The 22,005 square foot for $350,000 by an independent fee appraiser. of the property is assemblage to the adjacent In accordance with the California Environmental Quality Act, this project is exempt from further review. Categorical Exemption ER No.2007 -105 will be filed for this project. FISCAL IMPACT Proceeds from the sale of the property to the Redevelopment Agency in the amount of $350,000 will be deposited in the Merged Redevelopment Sale of Land account (account no. 570 -01- 5721). APPROVED AS TO FUNDS AND ACCOUNTS: Nancy T. Edwards Francisco Gutierrez �IA) ° Assistant Director executive Director Community Development Agency Finance and Management Services Agency SGH /VU /mlr H: \ACTIONS \2007 CC \P. H. JT CC -CRA AgreeSaleProp- Martin Investment 8 -6 -07 MI.doc 5 -6 MC SADDEN AVENUE 0 c c 0 h W W W W a WILSHIRE AVENUE AUTO w DAN GURNEY D1k• BORCHARD AVENUE I o Martin Investment Co. 5 -7 Exhibit 1 7/23/07 LES RESOLUTION NO. 2007- 009 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE SALE OF AGENCY OWNED PROPERTY GENERALLY LOCATED IN THE 1300 BLOCK OF SOUTH RITCHEY AVENUE, SANTA ANA, CALIFORNIA; 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 Board of the Community Redevelopment Agency 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 ") purchased the property generally located in the 1300 block of South Ritchey Avenue in the 1980's from Santa Fe Railroad for development of the Santa Ana Auto Mall located in the Merged Redevelopment Project Area. B. Part of that acquisition included a remnant strip of land on the west side of Ritchey Avenue across from the Santa Ana Auto Mall. Martin Investment Company (Buyer) owns several parcels of land adjacent to the Agency owned property. C. In order to maximize the development of the site, Buyer proposes to purchase the Agency owned parcel (the Remnant Parcel) and incorporate it into their development project. Buyer's project has received Site Plan approval and is currently in plan check for a development consisting of three new industrial buildings totaling 31,900 square feet. There is an existing 24,010 square foot industrial building that will remain on the adjacent site currently owned by Buyer. The project will also include consolidation of the lots by the Buyer. D. The Remnant Parcel owned by the Agency is zoned M -1 (light industrial) and is consistent with the proposed development. 5 18 7/23/07 LES E. The 22,050 square foot Remnant Parcel has been appraised at $350,000.00 by an independent fee appraiser. The highest and best use of the Remnant Parcel is assemblage to the adjacent southerly parcel owned by Buyer. F. The Agency has agreed, subject to the approval of the City Council, to sell said Remnant Parcel at its current appraised value, pursuant to the terms and provisions of a Sale Agreement (hereinafter referred to as the "Agreement ") between the Agency and the Buyer, which is on file in the office of the Executive Director of the Agency, in which said Remnant Parcel is described. G. The Agreement contains all of the provisions, terms, conditions and obligations required by state and local laws. H. The proposed sale of the Remnant Parcel is exempt from further review and in accordance with the California Environmental Quality Act, categorical exemption ER No.'s 2007 -105 will be filed for this project. I. 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 Remnant Parcel pursuant to the Agreement. Section 2. The Sale Agreement is hereby approved, and the Executive Director of the Agency is hereby authorized to execute the Agreement, with such non- substantive changes as may be approved by Agency's General Counsel. Section 3. The Executive Director of the Agency is hereby authorized to take all steps, and to sign all documents and instruments necessary to implement and carry out the Agreements on behalf of the Agency. 2 5 -9 ADOPTED this day of 2007. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant General Counsel AYES: Boardmembers: NOES: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: 7/23/07 LES CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. 2007- to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Secretary, Community Redevelopment Agency City of Santa Ana 5- 3 10