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HomeMy WebLinkAboutOversight Board - 2014-06 Oversight Board RESOLUTION NO. 2014-06 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APPROVING THE LONG RANGE PROPERTY MANAGEMENT PLAN PREPARED PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34191.5 WHEREAS, the Redevelopment Agency of the City of Huntington Beach ("Redevelopment Agency") was a redevelopment agency in the City of Huntington Beach ("City"), duly created pursuant to the California Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) ("Redevelopment Law"); and Assembly Bill No. X1 26 (2011-2012 lsr Ex. Sess.) ("AB 26") was signed by the Governor of California on June 28, 2011, making certain changes to the Redevelopment Law and to the California Health and Safety Code ("H&S Code"), including adding Part 1.8 (commencing with Section 34161) ("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85") to Division 24 of the H&S Code; and Pursuant to AB 26, as modified by the California Supreme Court on December 29, 2011 by its decision in California Redevelopment Association v. Matosantos, all California redevelopment agencies, including the Redevelopment Agency, were dissolved on February 1, 2012, and successor agencies were designated and vested with the responsibility of paying, performing and enforcing the enforceable obligations of the former redevelopment agencies and expeditiously winding down the business and fiscal affairs of the former redevelopment agencies; and The City Council of the City elected for the City to serve as the successor agency to the Redevelopment Agency upon the dissolution of the Redevelopment Agency under AB 26 ("Successor Agency"); and On June 27, 2012, the Legislature passed and the Governor signed Assembly Bill No. 1484 ("AB 148411, Chapter 26, Statutes 2012). AB 1484 imposes additional statutory provisions relating to the activities and obligations of successor agencies and to the wind down process of former redevelopment agencies, including the preparation of a Long Range Property Management Plan; and AB 26 and AB 1484, as further amended, are collectively referred to herein as the "Dissolution Act"; and H&S Code Section 34179 of the Dissolution Act establishes a seven (7) member local entity with respect to each successor agency and such entity is titled the "oversight board." The oversight board has been established for the Successor Agency (hereinafter referred to as the "Oversight Board"); and 14-4452/113962 1 Oversight Board:;.Reso. 2014-06 Pursuant to H&S Code Section 34191.5(a) of the Dissolution Act, upon the issuance of the Finding of Completion to the Successor Agency, a Community Redevelopment Property Trust Fund ("Trust") will be established to serve as the repository of certain real properties of the former Redevelopment Agency that are identified in the Due Diligence Reviews by H&S Code Section 34179.5(c)(5)(C) of the Dissolution Act; and Pursuant to H&S Code Section 34191.5(b) of the Dissolution Act, once the California Department of Finance ("DOF") issues a Finding of Completion to the Successor Agency, the Successor Agency shall prepare a LRPMP that addresses the disposition and use of certain real properties of the former Redevelopment Agency. The LRPMP shall be submitted to the Oversight Board and the DOF for approval no later than 6 months following the issuance of the Finding of Completion to the Successor Agency; and Pursuant to H&S Code Section 34191.4(a) of the Dissolution Act, upon the approval of the LRPMP by the DOF, all real property and interests in real property identified in the DDRs by H&S Code Section 34179.5(c)(5)(C) of the Dissolution Act shall be transferred to the Trust, unless such a property is subject to the requirements of any existing enforceable obligation; and H&S Code Section 34191.5(c) of the Dissolution Act requires that the LRPMP (1) include an inventory of all properties in the Trust, which inventory shall consist of specific information relating to each such property including, without limitation, the date of and purpose for acquisition, value of property, applicable zoning, any property revenues and contractual requirements for disposition of same, history of environmental issues and any related studies and remediation efforts, potential for transit-oriented development and advancement of planning objectives of the Successor Agency, and history of previous development proposals and activity; and (2) address the use or disposition of all properties in the Trust, including (i) the retention of such property for governmental use pursuant to H&S Code Section 34181(a) of the Dissolution Act, (ii) the retention of such property for future development, (iii) the sale of such property, or (iv) the use of such property to fulfill an enforceable obligation; and On May 13, 2014, the Successor Agency received its Finding of Completion; and The Successor Agency has prepared a proposed LRPMP ("LRPMP") for consideration by the Successor Agency and then for consideration by the Oversight Board and the DOE The LRPMP includes 13 parcels comprising seven properties, namely: 14-4452/113962 2 Oversight Board Reso. 2014-06 Property Name Parcel Number on Inventory Surf Museum 1 Downtown Alley 2 Skate Park 3 Westminster Parcel 4 Waterfront Hyatt Regency Hotel 5 Waterfront Hilton Hotel/Parcel C 6,7 Edinger Hotel 8, 9, 10, 11, 12, 13; and On November 3, 2014, the Successor Agency approved the proposed LRPMP. The proposed LRPMP, as approved by the Successor Agency, is attached to the Staff Report prepared for this Agenda Item, and is presented to the Oversight Board for review and approval; and For each of the properties, the LRPMP includes all of the information required by H&S Code Section 34191.5(c) of the Dissolution Act and their respective use and disposition are in accordance with the Dissolution Act; and The Edinger Hotel property is proposed to be sold to Miramar GP, LP, a California limited partnership ("Miramar"), a private third party developer, pursuant to a proposed Purchase and Sale Agreement and Joint Escrow Instructions dated January 27, 2012, as further amended by an Amendment to Purchase and Sale Agreement and Joint Escrow Instructions dated January 31, 2012, and further amended by that Escrow Amendment/Supplement dated April 25, 2012, and further amended by that Second Amendment to Purchase and Sale Agreement and Joint Escrow Instructions dated June 25, 2012, and further amended by that Third Amendment to Purchase and Sale Agreement and Joint Escrow Instructions dated as of January 25, 2013, and further amended by that Fourth Amendment to Purchase and Sale Agreement and Joint Escrow Instructions dated as of January 21, 2014 (collectively, the "Agreement"); and In accordance with the appraised value of the Edinger Hotel property, as supported by an appraisal dated January 9, 2012, attached to the LRPMP, the "Purchase Price" for the Edinger Hotel property is $3,100,000; and The anticipated sale proceeds from the sale of the Edinger Hotel property to Miramar pursuant to the proposed Agreement in the amount of $3,100,000 will be remitted after the close of escrow to the Orange County Auditor-Controller's Office for distribution to the taxing entities in accordance with H&S Code Section 34191.5(c)(2)(B) of the Dissolution Act; and The proposed Agreement was previously considered by the Oversight Board and approved on January 8, 2013 by Resolution No. 2013-04 and will be re-considered for approval by the Oversight Board at the same meeting as the Oversight Board's consideration of the proposed LRPMP. The proposed Agreement will likewise be 14-4452/113962 3 Oversight Board Reso. 2014-06 submitted to the DOF for review concurrently with the proposed LRPMP if approved by the Oversight Board; and Pursuant to H&S Code Section 34191.3 of the Dissolution Act, once the LRPMP is approved by the DOF, the LRPMP shall govern, and supersede all other provisions of the Dissolution Act relating to, the disposition and use of the properties; and The activity proposed for approval by this Resolution has been reviewed with respect to applicability of the California Environmental Quality Act ("CEQA"), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines"), and the City's environmental guidelines; and The activity proposed for approval by this Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per Section 15378(b)(5) of the Guidelines. In this regard, the projects associated with the properties identified in the LRPMP, along with their respective contractual agreements, have been reviewed and analyzed pursuant to CEQA and their required environmental documents have been prepared, circulated and approved/certified by the appropriate lead agency; and All of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. The Oversight Board hereby determines that the foregoing recitals are true and correct. 2. The Oversight Board hereby approves the Long Range Property Management Plan ("LRPMP"), substantially in the form attached to the Staff Report prepared for this Agenda Item. 3. The Oversight Board hereby authorizes and directs the Executive Director, or designee, of the Successor Agency to remit to the Orange County Auditor-Controller's Office for distribution to the taxing entities in accordance with H&S Code Section 34191.5(c)(2)(B) of the Dissolution Act the proceeds of the Purchase Price that are received from the sale of the Edinger Hotel property pursuant to the proposed Agreement. 4. The Oversight Board hereby authorizes and directs the Executive Director, or designee, of the Successor Agency to: (i) submit the LRPMP, as approved by the Oversight Board, to the California Department of Finance ("DOF") electronically in PDF format and to the Orange County Auditor-Controller; (ii) post a copy of the LRPMP, as approved by the Oversight Board, on the Successor Agency's internet website; (iii) revise the LRPMP and make such changes and amendments as necessary, before official 14-4452/113962 4 Oversight Board:Reso. 2014-06 submittal of the LRPMP to the DOF, in order to complete the LRPMP in the manner provided by the DOF and to conform the LRPMP to the form or format as prescribed by the DOF; (iv) make non-substantive changes and amendments to the LRPMP deemed necessary and as approved by the Executive Director of the Successor Agency and its legal counsel; and (v) take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution on behalf of the Successor Agency and the Oversight Board. 5. The staff of the Successor Agency is hereby authorized to execute and record such documents and instruments and to do any and all other things which they may deem necessary or advisable to effectuate this Resolution and any such actions previously taken are hereby ratified, including, without limitation, execution of any deeds or certificates of acceptance. 6. The Oversight Board determines that the activity approved by this Resolution is not a"project" for purposes of CEQA, as that term is defined by Guidelines Section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per Section 15378(b)(5) of the Guidelines. 7. The adoption of this Resolution is not intended to and shall not constitute a waiver of any constitutional, legal or equitable rights that the Successor Agency or Oversight Board may have to challenge, through any administrative or judicial proceedings, the effectiveness and/or legality of all or any portion of the Dissolution Act, any determinations rendered or actions or omissions to act by any public agency or government entity or division in the implementation of the Dissolution Act, and any and all related legal and factual issues, and the Successor Agency or Oversight Board expressly reserves any and all rights, privileges, and defenses available under law and equity. 8. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board declares that its Board would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. 9. This Resolution shall take effect upon the date of its adoption. 14-4452/113962 5 Oversight Board Reso. 2014-06 PASSED AND ADOPTED by the Oversight Board of the Successoe to the Redevelopment Agency of the City of Huntington Beach at a m eting thereof held on the 5th day of November, 2014. Chairpe son REVIEWE AND APPROVED: INITIATED N PPROVED: ec tiv Director Deputy Exeeu ' irector APP OVED AS O FORM: �V? Board Cou el 14-4452/113962 6 Oversight Board Res. No. 2014-06 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, JOAN FLYNN, Secretary of the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency, Huntington Beach, California DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Huntington Beach Redevelopment Agency at a meeting held on November 5, 2014 and that it was so adopted by the following vote: AYES: Board Members: Carchio, L. Dunn, Bone, Delgado, Fritzal NOES: Board Members: None ABSENT: Board Members: Harper, A. Dunn ABSTAIN: Board Members: None SecrL4ry of the Huntington Beach Oversight Board of the Successor Agency of the Former City of Huntington Beach Redevelopment Agency Huntington Beach, California ***Board Member Bone recused himself on Parcels 5, 6, and 7