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HomeMy WebLinkAboutRedevelopment Agency - 141 AGENCY RESOLUTION NO. 141 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY' OF HUNTINGTON BEACH APPROVING THE SALE OF REAL PROPERTY IN THE TALBERT BEACH REDEVELOPMENT PROJECT AREA AND APPROVING NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AND AUTHORIZING THE EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT WHEREAS, the Huntington Beach Redevelopment Agency (hereinafter referred to as the "Agency" ) under the provision of the California Community Redevelopment Law, Section 33000 et seq. of the California Health and Safety Code, is engaged in activities necessary for the development of Talbert Beach Redevelopment Project Area (hereinafter referred to as the "Project Area"; and In order ,to effectuate the provisions of the Redevelopment Plan relating to the Project, Area, the Agency proposes to sell certain property owned -by it within the Project Area (hereinafter referred to as the "Site" ) generally described and depicted on -the attached "Site Map" set forth as Exhibit A hereto; and Redondo-Kovacs Partners (hereinafter referred to as the "Developer" ) has submitted to the Agency a written offer in the form of a Disposition and Development Agreement (.the "Agreement" ) , attached hereto as Exhibit B, to purchase the Site at fair market value and to develop the Site for uses in accordance with the Redevelopment Plan (said development as described in the Agreement being hereinafter referred to as the "Project" ) ; and The Agency has determined that the proposed Disposition and Development Agreement contains all the provisions, -1- terms and conditions, includes all obligations required by State and local law, and Developer possesses the qualifications and financial resources necessary to acquire and insure development of the Site in accordance with the purposes and objectives of the Redevelopment Plan and the Project; and The Agency and the City Council of the City of Huntington Beach have held a joint public hearing on the proposed sale of the Site pursuant to published notice as required by State Law; and The Agency has duly considered all terms and conditions of the proposed sale and believes that the development of the Site pursuant to the Agreement is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements; and The Agency and the City have received and considered the report of the Agency staff on the proposed development to be carried out pursuant to the Agreement; and A Negative Declaration was prepared subsequent to an environmental review and evaluation by Agency staff of the sale of the Site in compliance with the California Environmental Quality Act of 1970; and Said Negative Declaration evaluates the impacts associated with the Developer 's proposal and concludes that the project will not have any significant effect on the environment; and As a result of the Agency ' s consideration and evidence presented at the hearing on the same matter, the City Council has determined that said project will not have any . -2- I - 1 i significant effect on the environment; NOW, THEREFORE, the Agency does hereby find, determine, order and resolve as follows : SECTION 1 . The recitals set forth above are true and correct . SECTION 2 . The Negative Declaration prepared for this Project indicates that the proposed project will not have a significant effect on the environment, and such determination and Negative Declaration are hereby certified. The Agency Secretary is hereby requested to prepare, file, and have posted a Notice of Determination with County Clerk of Orange County and State Secretary of Resources . The Agency Secretary is further requested to make available to the public a copy of this Resolution and said Negative Declaration. SECTION 3 . The Agency finds and determines that the sale of the Site at fair market value is justified based upon ( i ) the upgrading influence that the proposed development will have on the project Area and the community; and ( ii ) enhanced revenues for the Agency and the community. SECTION 4 . The Disposition and Development Agreement providing for the sale of the Site by the Agency to the Developer as described in the Disposition and Development Agreement is hereby approved. SECTION 5 . The Chairman and the Agency Secretary are hereby authorized to execute the Disposition and Development Agreement and any ancillary documents relating thereto and to take any and all other actions necessary or convenient to give effect to this resolution. -3- • PASSED AND ADOPTED by the Revelopment Agency of the City of Huntington Beach at a regular meeting thereof held on 20th day of July , 1987 . man ATTEST: APPROVED AS TO FORM: Agency Clerk f-3, i7 Agency Counsel *DepuCit-yAdministrator Special Agency Counsel Executive Directo 2117L 4/28/87 -4- r ► Cr1Y OF HUNTINGTON BEACH REDEVELOPMENT AGENCY DISPOSITION OF TALBERT-BEACH INDUSTRIAL PARCEL SUMMARY REPORT REQUIRED BY SECTION 33433 OF THE CALIFORNIA HEALTH AND SAFETY CODE ----------------------------------- This Summary Report has been prepared for the Huntington Beach Redevelopment Agency ( "Agency" ) pursuant to Section 33433 of the California Health and Safety Code. This Report sets forth certain details of a proposed Disposition and Development Agreement ( "Agreement" ) between the Agency and Talbert-Beach Partners, a California limited partnership ( "Developer" ) and the City of Huntington Beach ( "City" ) for development of a five (5) acre industrial parcel located in the Talbert-Beach Redevlopment Project Area in the City of Huntington Beach. This Report describes and specifies : t 1 . the cost of the proposed Agreement to the Agency, including land acquisition costs, clearance costs, relocation costs, costs of improvements to be provided by the Agency, and the expected interest on any loans or bonds to finance the project; 2. The estimated value of the interests to be conveyed and/or leased, determined at the highest uses permitted under the Redevelopment Plan; and The purchase payments to be paid by the Developer . This Report and the proposed Agreement have been made available for public inspection and photo copying prior to the approval of the Agreement. A. BUSINESS POINTS OF THE AGREEMENT -------------------------------- 1 . Developer Responsiblities ------------------------- The proposed Agreement requires the Developer to construct, or cause to be constructed, industrial building( s ) on the site with an upon completion value of not less than $5, 600, 000. These improvements are more particularly described in the Scope of Development Attachment No. 5 to the Agreement (SS302 p13) . If the value of the improvements is less than the required figure, the Developer is required to pay the Agency an amount equal to one percent ( 1%) of the difference between the required value of improvments and the actual value as determined by the Assessor of the County of Orange annually until such time as the value of the improvements achieves the required amount of $5, 600, OOU (SS302 p13) . The Developer is also required to fully improve Kovac Drive from Talbert Avenue,. to the site to a full right-of-way width of forty-five (45) 'feet at its own expense (SS302 p12) . The Developer is required to conduct any soils testing on the site that it may deem necessary in preparation for the planned improvements within thirty (30) days of execution of the Agreement and to notify Agency if the soils conditions are unsatisfactory for the planned improvements (SS213 pil ) . The Developer submitted a Good Faith Deposit of $50, 000, at the time of selection. Such Good Faith Deposit shall be held by the Agency as liquidated damages if the Developer defaults. If the Agency defaults, the Deposit shall be returned to the Developer. The Good Faith Deposit shall be credited toward the purchase price at the close of escrow (SS109 p4) . t The Developer is required to submit any and all plans, drawings, specifications or other documents that may be required to achieve City or Agency approvals of the planned improvements in accordance with the Schedule of Performance, Attachment No. 3 of the Agreement (SS303-305 pp14-15) . All approvals shall be in conformance with all applicable City Codes and Ordinances, requirements of the Redevelopment Agency. and the Redevelopment Plan. Any fees owing to the City or the Redevelopment Agency for the review of plans or to receive building entitlements shall be the sole responsibility of the Developer ( SS309 p17) . The Developer is required to deposit the full purchase price of $1 , 745, 000, in cash to escrow at least three (3) business days prior to the close of escrow and to close escrow by the date specified in the Schedule of Performance (SS202 p5) . The Developer is required to provide, at its own expense, any utility extentions or other public improvements that may be required to service the planned improvements (SS302 p13) . 2. Agency Responsibilities ----------------------- The Redevelopment Agency is required to perform the following under the terms of the Agreement. The Agency shall cooperate in the opening of an escrow for the conveyance of the site (SS204 p6) . The Agency and City shall use best efforts to review the plans, drawings, specifications or other documents submitted by the Developer and shall complete such reviews in accordance with the Schedule of Performance (SS305 p15) . The Agency is obligated to terminate the Agreement if it receives notice from the Developer, within thirty (30) days of execution of the Agreement, that soils on the site make it unsuitable for the planned improvements:.. (SS611 p29) . 3. Method of Financing ------------------- The Developer is - required to secure conventional financing for the acquisition of the site from the Agency and for the construction of the planned improvements (SS215 p12) . B. COST OF THE AGREEMENT TO THE AGENCY ----------------------------------- The estimated cost of the Agreement to the Agency is as follows : LAND ACQUISITION COSTS t $-0- CLEARANCE AND RELOCATION $-0- AGENCY IMPROVEMENTS $-0- INTEREST ON LOANS OR BONDS $-0- ADMINISTRATIVE OR LEGAL FEES $2000 TOTAL: $2000 C. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED TO THE DEVELOPER DETERMINED AT THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN ----------- ------------------------------------------------ The Redevlopement Agency requested proposals from developers for the disposition of this site. In the review of these proposals the Agency has determined that the value of the interests to be conveyed to the developer under the Agreement and determined at the highest use permitted under the Redevelopment Plan is $1 ,745, 000. D. PURCHASE PRICE BY DEVELOPER AND REASONS FOR DIFFERENDE IN FAIR MARKET VALUE FOR THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN ------------------------------------------------------------- The Developer shall pay the purchase price of $1, 745, 000, in all cash at the close of escrow. The terms and conditions of sale by and between the Agency and the City are of no concern to the Developer. The California Health and Safety Code Section 33433 requires that if the sales price and/or lease payments for the Site are less ._ than fair market value for the highest and best use consistent ,. with the Redevelopment Plan, the Agency shall explain the reasons for the difference. Under the terms of this Agreement the Agency is ' not selling the site at less than fair market value for the ' highest use permitted under the Plan and no such findings for the difference in value are required. t Res. No. 141 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF HUNTINGTON BEACH) I, ALICIA M. WENTWORTH, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at a meeting of said Redevelopment Agency held on the 20th day of July 19 87 , and that it was so adopted by the following vote: AYES: Members: Winchell, Mays, Finley, Kelly, Erskine, Green, Bannister NOES: Members: None ABSENT: Members: None i Clerk of a eve opment Agency of the City of Huntington Beach, Ca.