HomeMy WebLinkAboutRedevelopment Agency - 1988-09-19 REC' TEST FOR CITY COLPMCIL/
REDEAt--OPMENT AGENCY Hti;TION RH88-62 rg�s
September 19, 1988
Date
Submitted to: Honorable Mayor/Chairman and City Council/Redevelopment,A ency Members
Submitted by: Paul Cook, City Administrator/Executive Director:V,;C.
Prepared by: Douglas La Belle, Deputy City Administrator/Economic Develop n
Subject: CITY/AGENCY PURCHASE AGREEMENT; -WATERFRONT PR CT
Consistent with Council Policy? dQ Yes [ ] New Policy or Exception /�S . -0 6W 7
Statement of Issue, Recommendation,Analysis, Funding Source,Al ,
STAIEMENT OF iSSLIE: U
The agreement between the City and the Agency for p thase and sale oF t
property is necessary to fulfill the Agency's obligations under the DDA that was approved
with Robert L. Mayer on August 15, 1988.
RECOMMENDA ION:
Adopt City Council Resolution . and Agency Resolution and approve
the Purchase and Sale Agreement between the City and the Agency.
ANALYSIS:
The transfer from the City to the Agency of the City's property located along Pacific
Coast Highway between Beach Boulevard and Huntington Street, according to the terms
of the DDA between Robert Mayer and the Agency, is necessary to enable the Agency to
effectuate its redevelopment plan for the Main-Pier project area and is specifically
authorized under California Health and Safety Code Section 33220 which provides
authority for the City to aid and cooperate in the planning, undertaking, construction or
operation of redevelopment projects by selling any of its property to a Redevelopment
Agency. The proposed sale is for the fair-market value of the property as determined by
the appraisals originally set out in the 33433 Report prepared pursuant to the Waterfront
DDA. The terms of the sale require that the Agency pay back to the City the fair-market
value plus ten percent (10%) interest in the form of a loan to be paid out of tax increment
generated from the project area.
FUN12ING SOURCE:
The funding source for payment of the land from the Agency to the City will be provided
from tax increment monies generated by the project area.
ATT ACfIMEN.IS:
1) Resolution of the Agency authorizing the execution of an agreement for the
purchase and sale of property.
2) Resolution_KIq of the City Council authorizing the execution of an agreement
for the purchase and sale of property,
3) Agreement for the purchase and sale of property between the City and Agency.
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AGREEMENT FOR THE PURCHASE AND SALE OF PROPERTY
BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
THIS AGREEMENT, dated as of September 19, 19880 by and between
the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public
body, corporate and politic, organized and existing under and by
virtue of the laws of the State of California (the "Agency" ) , as
Purchaser, and the CITY OF HUNTINGTON BEACH, a municipal
corporation organized and existing under and by virtue of the laws
of the State of California (the "City" ) , as Seller;
WHEREAS, the acquisition of the Property by the Agency will
facilitate redevelopment within the Main-Pier Project Area
pursuant to that certain Disposition and Development Agreement
dated August 150 1988 between the Agency and Robert L. Mayer, as
Trustee of the Robert L. Mayer Trust of 1982, dated June 22, 1988
as amended (the "DDA" ) ; and
The Agency agrees to pay to the City and the City agrees to
accept as payment the appraised value of the Property.
NOW, THEREFORE, in consideration of the foregoing recitals
and the mutual covenants hereinafter contained the parties hereby
agree as follows:
1 . PROPERTY DESCRIPTION. The Property to be purchased by
the Agency herein (the "Property" ) is located generally between
Beach Boulevard and Huntington Street along Pacific Coast Highway
in the City of Huntington Beach. The legal description for the
Property is attached to this Agreement as Exhibit "A" and is
incorporated herein by this reference.
2. SALE OF THE PROPERTY. Prior to the scheduled date of
the Disposition Transfer for Separate Development Parcel No. 1
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pursuant to Attachment No. 4 of the DDA (the "Schedule of
Performance" ) , the City agrees to sell and the Agency agrees to
purchase the Property for the amount of Twenty Two Million Four
Hundred Thousand Dollars ($22,400000 ) (the "Purchase Price" ) .
3. PAYMENT OF PURCHASE PRICE AND REIMBURSEMENT OBLIGATION.
The City agrees and acknowledges that payment of the Purchase
Price hereunder shall be made only from tax allocation revenues
received by the Agency pursuant to Section 33670 of the Health and
Safety Code ("Tax Increment" ) . All such payment shall be due
within the 1988 calendar year; provided that the City shall extend
the time for payment in the event that the Agency does not have
sufficient Tax Increment to meet all of the Agency's other
financial obligations whether incurred prior or subsequent to the
approval of this Agreement.
The obligation of the Agency shall bear interest until paid
in full at the rate of ten percent (10%) per annum.
This Agreement constitutes an indebtedness of the Agency
incurred in carrying out the Project and a pledging of the tax
allocations from the Project to repay such indebtedness under the
provisions of Section 19 of Article XIII of the California
Constitution and Sections 33670-33677 of the Health and Safety
Code; provided, however, that such pledge of tax allocations shall
always be subordinate and subject to the right of the Agency to
pledge or commit tax allocations from the Project to repay bonds
or other indebtedness incurred by the Agency in carrying out the
Project.
4 . TITLE; GRANT DEED. Conveyance shall be effected by
grant deed acceptable in form to the legal counsel of the City, and
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readable by the County Recorder of the County of Orange. The
Agency assumes the obligation to pay all costs associated with the
conveyance of title.
5 . OBLIGATION TO REFRAIN FROM DISCRIMINATION. There shall
be no discrimination against or segregation of any person, or
group of persons, on account of race, color, creed, religion, sex,
marital status, national origin, or ancestry, in the sale, lease,
sublease, transfer, use, occupancy, tenure, or enjoyment of the
Property, nor shall the Agency itself or any person claiming under
or through it establish or permit any such practice or practices
of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the City or any portion
thereof .
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their respective officers thereunto
duly authorized, all as of the date first above written.
SELLER: PURCHASER:
THE CITY OF H NG ACH The REDEVELOPMENT AGENCY OF THE
• CITY OF HUNTINGTON BEACH, a
By: municipal corporation of he
Mayor State of Cali r is
By:
,Chairma
Attest:
Clerk
ATTEST: APPROVED AS TO FORM:
e.
City Clerk 4Dey
Agency AttorneyREV D A D PROVED: D ANDCi Ad inistrato ity Administrator/
Director, Community Development
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EXHIBIT "A"
LEGAL DESCRIPTION
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