HomeMy WebLinkAboutOcean View Estates Mobile Home Park - 2000-05-15fV,
Council/Agency Meeting Held: 6s— 151 aO
Deferred/Continued to:
Approved 0 Conditionally Approved ❑ Denied
y
)RP. City Clerk' Ignature
Council Meeting Date: May 15, 2000
Department ID Number: AS 00-025
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION o
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY --
MEMBERS 77
SUBMITTED BY: RAY SILVER, Executive Directorao,,
PREPARED BY: JOHN REEKSTIN, Administrative Services Director Ie
SUBJECT: AUTHORIZE THE SALE OF REDEVELOPMENT AGENCY OWNED
MOBILE HOMES LOCATED IN OCEAN VIEW ESTATES MOBILE
HOME PARK (SPACES 15, 19, & 20)
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Should the Redevelopment Agency sell their three (3) remaining
mobile homes located at Ocean View Estates Mobile Home Park in spaces 15, 19, and 20?
Fundinq Source: Net sale proceeds will be directed towards the establishment of reserve
funds as part of a new enterprise fund for Ocean View Estates in FY '00-'01.
Recommended Action: Motion to:
(1) Authorize Real Estate Services to prepare the necessary documents and proceed with
the sale of the mobile homes located in spaces 15, 19, and 20 with following list prices:
Coach No.
15
19
20
Listing Price
$69,000
$72,000
$70,000
(2) Grant Real Estate Services the authority to negotiate the final sales price.
(3) Authorize the Director of Administrative Services and the Agency Clerk to execute any
and all necessary documents approved as to form by the City Attorney to facilitate the
sale of the mobile homes.
Alternative Action(s):
(1) Deny authorization for mobile home sales.
I
REQUESAOR REDEVELOPMENT AGWY ACTION
MEETING DATE: May 15, 2000 DEPARTMENT ID NUMBER: AS 00-025
Analysis:
Ocean View Estates Mobile Home Park (OVE) is owned by the City of Huntington Beach,
and is located on the northeast corner of Ellis Avenue and Golden West Street. OVE sits
on approximately 4.2 acres acquired in the mid 1980's and provides for forty-four (44)
mobile home sites for persons displaced as a result of the development of the Waterfront
Project.
As real property asset manager, the Real Estate Services Division performed an in-depth
review and study of OVE for the purpose of establishing a management plan for the OVE
asset using best business practices.
The management plan delineates a financial basis for OVE operation until its projected
closure in March 2019. Elements of the plan include a market rental survey, mobile home
appraisals, cost estimates for maintenance, reserve funds analysis, and site management
requirements.
Market rental survey - a thorough rental survey of fourteen other mobile home parks in
Huntington Beach was performed to establish an appropriate market rental rate for space
in OVE.
Mobile home appraisals — an appraisal of three (3) mobile homes owned by the City of
Huntington Beach Redevelopment Agency (Spaces No. 15, 19 and 20) as the basis for
establishing the listing price and minimum acceptable price for negotiations. Also, an
appraisal of one mobile home (Space No. 39), establishing the fair market value of the
abandoned mobile home prior to removing it from OVE and the subsequent renting of that
space at market rates.
Cost estimates for maintenance — a review of the existing maintenance contract, with
inquiry and projection of costs for future maintenance requirements.
Reserve funds — an examination of the funds necessary for the continued maintenance and
repair of the infrastructure of OVE (i.e., roadway paving, irrigation and drainage systems,
lighting, water, fencing, structures).
Site management — an analysis of the management requirements with respect to personnel
time, material resources, fees, permits, etc.
RCA OVE Mobile Home Sale -2- 05105100 4:50 PM
REQUESAOR REDEVELOPMENT AGLICY ACTION
MEETING DATE: May 15, 2000
DEPARTMENT ID NUMBER: AS 00-025
As part of best management practices, the policy guidelines for OVE operation are as
follows:
1) Provide and collect space rent for privately owned mobile homes.
Mobile home housing is prone to frequent maintenance and care, requiring
significant revenues to be set aside for inherent cost to maintain the mobile home in
order to comply with the lease agreement, and the park rules and regulations.
Privately owned mobile homes are the responsibility of the owner and must be kept
up to the standard imposed by the lease agreement teens and conditions, as well
as, the park Rules and Regulations.
2) Remove abandoned mobile homes from the park to provide additional spaces
for rent at market rates for new mobile home placement.
Currently, we have two mobile homes that are considered by real estate services to
be abandoned in the park. One is the result of the owner becoming a ward of the
State of California due to mental and physical conditions. The other is the result of
the tenant being deceased and the executor of the estate not removing the mobile
home from the park per the lease agreement.
3) Maintain full occupancy of spaces in OVE.
OVE is recognized in the mobile home community as being highly desirable. Real
Estate Services receives 3-5 inquiries per week (without advertising) for occupancy
requirements. Spaces in the park are subject to a premium and we have been
approached by several brokers with respect to placement of new mobile homes in
OVE. Negotiations are in progress.
4) Operate OVE as an enterprise asset.
OVE has specific and recurring maintenance and care issues unique to the park.
Status as an enterprise asset allows for the collection of all revenue sources (i.e.,
rents, fees, deposits, or other sources of revenue as appropriate). Also, the
payment of all costs of operation, and the establishment of necessary reserve
accounts to facilitate on -going maintenance of a high quality of life for the tenants.
5) Provide the highest quality of life for all OVE tenants.
The enterprise asset approach to management and operation of OVE will provide
the revenue necessary to maintain the high quality of life enjoyed by the tenants and
insure the continued recognition of the City of Huntington Beach as a good landlord
throughout the life of OVE.
RCA OVE Mobile Home Sale -3- 05105/00 4:50 PM
REQUES*OR REDEVELOPMENT AGINCY ACTION
MEETING DATE: May 15, 2000
DEPARTMENT ID NUMBER: AS 00-025
The mobile homes that the Redevelopment Agency owns are all approximately 11 years
old and are starting to incur higher maintenance costs. In renting these homes, the health
and safety standards require us to continually re -invest capital dollars at the end of each
tenancy to return the living space to a good standard. Further, our cost to response to
isolated call outs is expensive since the City does not retain permanent staff and must
contract these services out.
At this time, the market for mobile homes is at a peak providing the Revelopment Agency
with an excellent opportunity to sell its mobile homes at elevated market prices. Based
upon the. information provided above and the appraisal of the mobile homes owned by the
Redevelopment Agency performed by an independent qualified appraiser:
Real Estate Services requests authorization to prepare the necessary documents
and proceed with the sale of mobile homes in spaces 15, 19 and 20, based upon
the pricing information below.
Coach No. Listing Price
15 $ 69,000
19 $ 72,000
20 $ 70,000
Net sale proceeds are to be allocated to the start-up reserves under the OVE enterprise
asset account to be established for fiscal year 2000/2001.
Environmental Status: None
Attachment(s):
RCA Author: M. HEINEKE
RCA OVE Mobile Home Sale -4- 05/10100 9:33 AM
RCA*ROUTING AHEET
INITIATING DEPARTMENT: Administrative Services
SUBJECT: Authorize the Sale of Redevelopment Agency Owner!
Mobile Homes in OVE (Spaces 15, 19, & 20)
COUNCIL MEETING DATE: May 15, 2000
RCA ATTACHMENTS
STATUS
Ordinance (wlexhibits & legislative draft if applicable)
Not Applicable
Resolution (wlexhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attomey)
Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attomey)
Not Applicable
Certificates of Insurance (Approved by the CityAttomey)
Not Applicable
Financial Impact Statement (Unbudget, over $5,000)
Not Applicable
Bonds (If applicable)
Not Applicable
Staff Report (If applicable)
Not Applicable
Commission, Board or Committee Report (If applicable)
Not Applicable
Findings/Conditions for Approval and/or Denial
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED.,
RETURNED
FORWARDED
Administrative Staff 5' 93e
( )
( )
Assistant City Admin trator (Ini ial)
( )
{ )
City Administrator (Initial)
City Clerk
( )
EXPLANATION FOR RETURN OF ITEM:
�� Ill4 CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
HUNTINGTON BEACH Connie Brockway, City Clerk
Office of the City Clerk
Liz Ehring, Deputy City Clerk II
14,
Date: i Meeting Date: � � Agenda Item: OE-7
Piro osed Citiy Counc�LAgenc�a Items: The City Clerk's Office/City Administrator's Office must return your
agenda item due to the following requirements that have not been met. When your Agenda liem is ready to
resubmit, please return to: Elaine Kuhnke, Management Assistant, Administration
1.
Signature(s) Needed
A
On RCA
B
On Agreement
C
Other
2.
Attachments
A
Missing
B
Not identified
C
Other I
3.
Exhibits
A
Missing
B
Not identified
C
Other
d.
Insurance Certificate (Proof Of Insurance)
A
Not attached
B
Not approved by City Attorney's Office
C
Signed Form notifying City Clerk that department will be responsible for obtaining insurance certificate on this item. (See form attached)
S.
Wording On Request For Council Action (RCA) Unclear
A
Recommended Action on RCA not complete a)LZ
B
Clarification needed on RCA �- -� !
C
Other A-V its
S�
S.
City Attorney Approval Required
7.
Agreement Needs To Be Changed
A
Page No.
S.
Other
G agendahnisdreaform