HomeMy WebLinkAboutAdopt Oversight Board Resolution No. 2015-05 approving the L AGENDA REPORT
Oversight Board of the Huntington Beech Successor Agency
to the Redevelopment Agency
MEETING DATE: March 5, 2015
SUBJECT/ACTION: Adopt Oversight Board Resolution iNo. 2015-05 approving
the Long Range Property Management Plan (LRPMP)
STATEMENT OF ISSUE:
Pursuant to Assembly Bill 1484 (AB 1484), all successor agencies are required to
prepare a Long Range Property Management Plan (LRPMP) that will govern the
disposition and use of the former non-housing properties owned by the former .
redevelopment agency. On November 5, 2014, the Oversight Board reviewed and
approved the LRPMP which was then sent to the California Department of Finance
(DOF) on November 7, 2014. On March 3, 2015, the City received a correspondence
from DOF regarding modifications to the LRPMP.
RECOMMENDED BOARD ACTION:
Motion to:
Adopt Resolution No. 2015-05, "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."
BACKGROUND:
Pursuant to Assembly Bill 1484 (AB 1484) all successor agencies are required to
prepare a Long Range Property Management Plan (LRPMP) that will govern the
disposition and use of the non housing properties owned by the former redevelopment
agency. The LRPMP must be approved by the Successor Agency and then by the
Oversight Board. The approved plan is then submitted to the DOF for review no later
than six (6) months following the issuance of a Finding of Completion.
The DOF issues the Finding of Completion once the Successor Agency has paid the
amount indicated by the due diligence reviews and the county auditor-controller has
reported those payments to DOF. The Huntington Beach Successor Agency received its
Finding of Completion on May 13, 2014, so the LRPMP is due to DOF by November 13,
2014. Pursuant to Health and Safety Code Section 34191.5(c), the LRPMP must include
a detailed inventory with background information and the recommended use or
disposition of each property. Permitted actions under the LRPMP include:
• Retention of the property for governmental use;
I
® Retention of the property for future development of approved enforceable
obligations;
• Use of the property to fulfill a current enforceable obligation; and
• Sale of the property with proceeds distributed to the taxing entities.
Generally, DOF interprets AB 1484 to require successor agencies to sell property unless
it has an approved enforceable obligation attached to it or is used for a governmental
purpose. The Huntington Beach Successor Agency owns seven (7) properties containing
thirteen (13) parcels described below, which were all acquired for general redevelopment
purposes. Six of the seven properties have buildings and/or approved planning
entitlements and one is undeveloped.
Estimated
Sales Price
from Timing
Property Disposition Type Recipient Recipient of Sale
International Surf Museum Government Use City $0 ASAP
Downtown Alley Government Use City $0 ASAP
Public Skate Park Government Use City $0 ASAP
Westminster Parcel Government Use City of $0 ASAP
Huntington
Beach/City
of
Westminster
Waterfront Hyatt Regency Other Liquidation or, Designated $7,900,000, ASAP
in the alternative, Buyer less repayment
Enforceable of the two
Obligation enforceable
obligations
Waterfront Hilton/Parcel C Other Liquidation or, Designated $5,607,950 4th
in the alternative, Buyer Quarter
Enforceable 2015-1st
Obligation Quarter
2016
Edinger Hotel Other Liquidation Designated $3,100,000 ASAP
Buyer
As part of the wind down process of redevelopment, appraisals and/or a value is
required to be established on the properties that are recommended for sale. The
estimated values for those properties determined by the appraisals are shown on the
following table. The LRPMP does not require that new appraisals be conducted. The
Successor Agency and then the Oversight Board are required to review and approve the
LRPMP. Once approved, the LRPMP will be sent to California Department of Finance for
approval and then for Agency implementation. The actual amount of sales proceeds will
be dependent upon the market conditions and the final sales prices, less listing costs
and escrow fees.
The changes, as underlined on the above chart includes the changing of the
International Surf Museum and Westminster Parcel to Government Use (from Future
Development) and the statement: "Pursuant to HSC section 34180 (f), if a city wishes to
retain any properties for future redevelopment activities, it must reach a compensation
agreement with the other taxing entities to provide payments for the value of the property
retained." Regarding Waterfront Hilton/Parcel C —we have included the current
estimated value.
ATTACHMENT(S):
1. Resolution No. 2015-05, "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."
2. Long Range Property Management Plan
RESOLUTION NO. 2015-05
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH APPROVING THE AMENDED 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 1" 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 1484", 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
fonner 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
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Oversight Doaru
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 enviromnental 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 prepared a proposed LRPMP ("LRPMP") for consideration by the
Oversight Board and the DOF. The LRPMP includes 13 parcels comprising seven properties,
namely:
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; and
15-4625/118159 2
Oversight Board Reso. 2015-05
On November 5, 2014, the Oversight Board reviewed and approved the LRPMP which
was then sent to DOF on November 7, 2014. On March 3, 2015, the Successor Agency received
correspondence from DOF regarding modifications to the LRPMP; and
The Successor Agency prepared a proposed Amended LRPMP to address the
modifications requested by DOF ("Amended LRPMP") for consideration by the Oversight Board
and the DOF. The Amended LRPMP includes the same 13 parcels comprising seven properties
as contained in the LRPMP and includes non-substantive changes requested by DOF; and
The proposed Amended LRPMP 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 Amended 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 by and among the Successor Agency,
Miramar, and the City of Huntington Beach ("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 Amended 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 will be considered for approval by the Oversight Board at the
same meeting as the Oversight Board's consideration of the proposed Amended LRPMP. The
proposed Agreement will likewise be submitted to the DOF for review concurrently with the
proposed Amended LRPMP if approved by the Oversight Board; and
Pursuant to H&S Code Section 34191.3 of the Dissolution Act, once the Amended
LRPMP is approved by the DOF, the Amended 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 Amended LRPMP, along with their respective
15-4625/118159 3
OversightBoard Reso. 2015-05
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 Amended Long Range Property
Management Plan ("Amended LRPMP"), substantially in the forin 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 Amended 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 Amended LRPMP, as
approved by the Oversight Board, on the Successor Agency's internet website; (iii) revise the
Amended LRPMP and make such changes and amendments as necessary, before official
submittal of the Amended LRPMP to the DOF, in order to complete the Amended LRPMP in the
manner provided by the DOF and to conform the Amended LRPMP to the form or format as
prescribed by the DOF; (iv) make non-substantive changes and amendments to the Amended
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.
15-4625/118159 4
Oversight Board Reso. 2015-05
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.
PASSED AND ADOPTED by the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach at a meeting thereof held on the 5th day
of March, 2015.
aiiper n �.J
REVIEWED AND APPROVED: INITI D AN APPROVED:
E tive Director Deputy tive
'e u Director
APPROVED AS TO FORM:
F1 Board Counsel
15-4625/118159 5
Res. No. 2015-05
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
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 Redevelopment Agency at a meeting held on March 05, 2015 and that it was so adopted
by the following vote:
AYES: Board Members: Delgado, L. Dunn, Fritzal, Hardy, Katapodis
NOES: Board Members: None
ABSENT: Board Members: A. Dunn, Bone
ABSTAIN: Board Members: None
Secret ' of the Huntington ch Oversight
Boa f the Successor Age of the Former
Ci f Huntington Beach Redevelopment
Agency, Huntington Beach, California
Amended Long Range
PropertyManagement
Plan
Successor Agency to the former
Redevelopment Agency of the City of
Huntington Beach
2000 Main Street, Huntington Beach,
California 92648
Approved by Successor. gency on Novemb3er 3, 2014
Approved by Oversight Board on Ncvern er5, 2014 (Amended
Plan Approved on March 5 2015.1
Approved by Department of Finance on 12015
'
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beach
Table of Contents
Introduction................................................................................................................................ 1
Successor Agency Asset Summary ........................................................................................... 1
Property onandUse--------------------------------. 2
Summary of Recommended Property Disposition and Use.................................................... 2
Summary ofPlan CategoryDecision...................................................................................... 3
Long Range Property Management Plan ................................................................................... 5
International Surfing Museum/Library 1L----------------------. 8
DowntownAlley J1...................................................................................................... 8
Public Skate Park 3)..................................................................................................12
Westminster Parcel (Parcel 4)...............................................................................................15
Waterfront Hyatt Regency Hotel 5)-------------------------18
Waterfront Hilton Hotel/Parcel C (Parcel 8 and 7)..................................................................22
Edinger Hotel (Parcels 8- 13)...............................................................................................2/
Appendix B Property Inventory Data
Appendix Redevelopment Plan
rn
Appendix IF General Plan
`
Appendix Beach and Edinger Specific Plan (Specific Plan 14)
Appendix Historic Survey
Appendix L Surf Museum Lease
�
March 4, ZOl5 Page
Amended Long Range Property Management Plan
Successor Agency to the torn r Redevelopment agency of the City ct Huntington each
Appendix M F Vans Ground
Appendix N Hyatt Regency(Parcel 5) Ground Lease
Appendix O Waterfront;Disposition-and Development Agreements (5)
Appendix P Parcel 5 Section 108 Loan
� pp ix Q ,, Parcel 5 Promissory Note �� "� � ��
Appendix R Waterfront Hilton (Parcel 6) Ground Lease
Appendix S Irnplem ration AgreementNo 5
Appendix T Parcel C (Parcel 7) Fire and Parking Easements
Appendixx U � Edi ger Hotel Purchase;and Sale�Agreement � ��� !�''i
Appendix V Appraisal / Reuse Analysis/33433 Report
AppendixW Long Range Property�Management Plan Checklist
Appendix X Hyatt (Parcel 5) Appraisal
f �
Appendix Y Parcels 6/7 Appraisal
March 4,2015 Page ii
Amended Long Range Property (management Plan
Successor Agency 3e th -former Redevelopment Agency of the City of Huntington Beach
INTRODUCTION
As required by Health & Safety Code Section 34191.5, this document is the Long-Range
Property Management Plan (LRPMP) of the Successor Agency of the former Redevelopment
Agency of the City of Huntington Beach (Former Agency). The Successor Agency received a
Finding of Completion from the Department of Finance (DOF) on May 13, 2014 (Appendix A).
In accordance with Health & Safety Code Section 34191.5(c), the LRPMP includes an inventory
of properties included in the Community Redevelopment Property Trust Fund and provides the
proposed plan for disposition and uses of each of the properties.
SUCCESSOR AGENCY ASSET SUMMARY
Section 34191.5(c)(1) of the Health and Safety Code, which was added as part of Assembly Bill
1484 (AB 1484), requires that the LRPMP include an inventory of all properties held in the
Community Redevelopment Property Trust Fund. For the Successor Agency, this inventory
identifies 13 parcels comprising seven properties. In accordance with statutory requirements
each of these 13 legal parcels are described in Appendix B and a map showing the location of
the seven properties is presented in Appendix C.
The following pages describe each of the following properties, and the applicable legal parcel or
parcels comprising each:
Parcel Number on
Property Name Inventory
Surf Museum 01
Downtown Alley 2
Skate Park Y
Westminster Parcel _._ 4
Waterfront Hilton Hotel/Parcel C 6,7
Etlinger Hotel $� - `_ 8 9; 10, f 1 12, 13_
March 4,2015 Page 1
Amended Long Range Property Management Plan
M-ccessor gencv IM tile forriner �e(lev--,'ontAcenc-,-1 o' Ci'y ofldmtinatonBeach
l
Property Disposition and Use
LRPMP also provides the planned use or disposition of each of the 13 parcels in the manner
described in Health & Safety Code Section 34191.5(c)(2). The following summarizes the four
types of permitted disposition/use:
Plan Category Use/Disposition Purpose of Property Property Transferee
Enforceable ' Use 7Conss tent with E_ nfd`c'eable Obligation- .Qesk 'gnated Enforceable
,�Oblioatiilbfi 'Terms Obligation Recipient
Governmental Governmental Use in Accordance with Appropriate Public
Section 34181(a) Jurisdiction
Future 1*,V, Transfer to city City for use in a project. , ggw-
DeVelopm6rit identified in lthe,Approved Redevelopment
N,',
Plan ,To the''exteriffecluired'by'law,
4WEdisposition proeped.�r""t6,b6�oistributed��,,,,
-among I�ax
%v- ,
zing Entities in-a accordance wi aAW A:, V,
Coi ion Agreement Other Liquidation Sale by Successor Agency to private buyer Designated Buyer
with proceeds distributed to Taxing Entities
Summary of Recommended Property Disposition and Use
As required by Health & Safety Code Section 34191.5(c)(2), the LRPMP identifies that:
V. Two (2) of the properties (3 legal parcels) are to be liquidated or, in the alternative,
retained for purposes of fulfilling an enforceable obligation;
4.1- Four (4) of the properties (4 legal parcels) are to be dedicated for governmental use
purposes;
4. One (1) of the properties (6 legal parcels) is to be liquidated; and
4. None (0) of the properties(0 legal parcels) are to be held for future development.
March 4,2015 Page 2
Amended Long Range Property Management Plan
Successor Agency to the former Redevele meat Agency of the City of Huntington Beach
Summary of Plan Category Decision
The relevant"approved redevelopment plan"that identifies the projects for which the properties
will be disposed and used consists of:
❖ The Huntington Beach Merged Redevelopment Plan, which was adopted by Ordinance
No. 3343 on December 16, 1996, as amended on July 15, 2002 (Appendix D);
The accompanying Implementation Plan for the Huntington Beach Merged Project Area
(HB Implementation Plan) adopted by the Former RDA on December 21, 2009 in
accordance with the requirements of Health & Safety Code Section 33490 (Appendix E);
❖ General Plan (Appendix F);
Downtown Specific Plan /Specific Plan 5 (Appendix G);
❖ Beach and Edinger Specific Plan /Specific Plan 14 (Appendix H); and
❖ Local Coastal Plan (Appendix 1).
Redevelopment Plan (Appendix D)
The objectives and goals of the Redevelopment Plan are provided below:
Huntington Beach Merged Project Area Redevelopment Plan Goals:
1. Eliminate and prevent the spread of conditions of blight including: underutilized
properties and deteriorating buildings, incompatible and uneconomic land uses, deficient
infrastructure and facilities, obsolete structure, and other economic deficiencies in order
to create a more favorable environment for commercial, office, industrial, residential and
recreational development.
2. Expand the commercial base of the Project Area.
3. Improve public facilities and public infrastructure.
4. Improve inadequate drainage infrastructure.
5. Improve and/or provide electric, gas, telephone, and wastewater infrastructure to both
developed and undeveloped properties within the Project Area.
6. Promote local job opportunities.
7. Encourage the cooperation and participation of residents, businesses, business persons,
public agencies and community organizations in the redevelopment/revitalization of the
Project Area.
8. Implement design and use standards to assure high aesthetic and environmental quality,
and provide unity and integrity to developments within the Project Area.
9. Address parcels of property that are: of irregular form and shape, are inadequately sized
for proper usefulness and development, and/or are held in multiple ownership.
10. Remove impediments to land disposition and development through the assembly of
property into reasonably sized and shaped parcels served by improved infrastructure
and public facilities.
March 4, 2015 page 3
Amended Long Range Property Management Plan
Successor Agency to the former edevelopment Agency of the City of Huntington Beach
11. Recycle and/or develop underutilized parcels to accommodate higher and better
economic uses while enhancing the City's financial resources.
12. Promote the rehabilitation of existing housing stock.
13. Increase, improve, and preserve the community's supply of housing affordable to very-
low, low and moderate income households.
Huntington Beach Merged Project Area Implementation Plan (Appendix E)
The goals and objectives of the Implementation Plan match those of the Redevelopment Plan.
However, the following property-specific programs mentioned in the Implementation Plan are as
follows:
5 0
- �
Local Coastal Program (Appendix 1)
The purpose of the Coastal Development Permit(CDP) is to implement the California Coastal
Act of 1976(Division 20 of the Public Resources Code) as amended, in accordance with the
City's Local Coastal Program (LCP). The Local Coast Program includes the City's land-use
plans, zoning ordinance, zoning map, and implementing actions certified by the Coastal
Commission pursuant to the Coastal Act and adopted by the City Council for the purpose of
carrying out the provisions of the Coastal Act within the coastal zone. Any person,
partnership, or corporation, or state or local government agency wishing to undertake
development in the coastal zone shall obtain a Coastal Development Permit in accord with the
provisions of this chapter, unless exempt or categorically excluded. Such permit must be
issued prior to the start of development and shall be required in addition to any other permits
or approvals required by the City. All development within the coastal zone requires a coastal
development permit unless specifically exempted or excluded. A public hearing shall be
required prior to any action on a Coastal Development Permit. Any person may submit written
comment to the Director on an application for a Coastal Development Permit, or on a Coastal
Development Permit appeal, at any time prior to the close of the public hearing.
March 4,2015 Page 4
Amended Long Range Property Management Plan
Successor genca to tine f-rater R--deveir-,Ipi-iien .--".,gp-ncy of U le City Beach
Estimated
Sales Price
from Timing
Property Disposition Type Recipient Recipient of Sale
,Inteiii:arb:ti6nal urf M' M G ern
me se
C
$o ASAP
aw
Downtown Alley Government Use City $0 ASAP
ov. LA
fubli6tkatb:ParW1 - G ernment:
se C I
6k
A - h I I I
NI, 42:
Westminster Parcel Government Use City of $0 ASAP
Huntington
Beach I City
of
Westminster
'Waterfront Hyatt Regency „Other Ciq`uidation,olt';':. Designat6dd; 'dob, ASAP-
in thealfernative� R, less repaymen tEnforceable�'' 4,Buy� I
N
3viO of flne,two
" Obligation enf&6eable
Waterfront Hilton/Parcel C Other Liquidation or, Designated FIVIV of the 4th
in the alternative, Buyer Leased Fee Quarter
Enforceable Interest 2015-1st
Obligation Quarter
2016
Edinger R 11
HoteF Other Liquidation:'',, Designated ASAP
Buyer
LONG RANGE PROPERTY MANAGEMENT PLAN
The following provides the details for each parcel to be disposed by the Successor Agency.
March 4,2015 Page 5
Amended Long Range Property Management Plan
Successor Agency to the former F edevelopment Agency of the City of Huntington Beach
International Suring Museum/Library (Parcel 1)
The property, consisting of one parcel, is located on the corner of Olive and 5th in the Downtown
area. The existing improvement is a historically significant building that the Successor Agency
leases for the use of the International Surfing Museum and Library. The Museum was ranked
as one of the 125 icons of Orange County in 2014 by the Orange County Register.
kX
.f�
�Y
Parcel Data
Addres's _ . 411 Olive Street` _.
AP N 024-147-01
Existing The parcel is improved with a 2,052 square foot, one-story wood-framed
Improvements commercial building built in 1935 and six adjacent parking spaces. The
building has historic significance and is called out in the City's 1996
General Plan and the updated historic survey conducted by the City in 2014
R (Appendix J), -
�Existin'g Use _ Houses the Infernational„Surfing eMuseurn/Library
Use Restrictions CUP#08-005(Appendix K); Local Coastal Plan (Appendix 1)
Zoning � Sqe fc PIan�S Dist irct°1 (Appendix Gj which allows`f ro mixe ud se '�� ��;
�� � i commerciah/�resitlentiai development ,Per the Local Coastal Plan,the site
^ must provide yisifor seraing commercial usesonly on_the[groundfloor�_
Former Project Area Main-Pier Redevelopment Project Area
Successor,A y
Current_T,itle,_ a g gene to the Huntingtoni Beach Redevelopment Agency
March 4,2015 Page 6
Amended Long Range Property Management Plan
Succel"'ge.ricy to the for--nieF Redevelopment Ag-ency of the City of Huntington Beach
Acquisition &Valuation Information
c 0,1;"
,Pik 'h Daten�-�'�::§�
Purchase Price $285,000
Purposed ,.: 4 T�q acquire a blighted vacant property i with... l......h 'm es oration —
!Me"
Current Value(Est.) $0 ---—------g7--7�
Midtho t T 'consi 6red-ito,,i
Valuation The jillil
-i, -dtherd,,California.,Edisbr (SCE)
The allowsfdrithd1h§t6IIati f W-S
�e��yn
0
electrical transformer sabmets on a-520%'
-6are foot
, ;` the CUP - i . ' i portion
of the
parcel' Thus
,enjifrej�itejor eve opmenu
" existing pmko�ngi �- �§ignatedhstorid�ad- Id neei
]"to be deMol- h d'
-111:11, 511
.. .... ..... ...... --Q,;9. 'y--n--,S_p--p--p---ip Plan jI requires developments d6y"e 6-p eh,6 to t
. n1sop site f04Me19ht�s size
'nT! rj T41 arce
a::peW,, eye pp uldhave difficulty pari, the'p!Ojt lsubterranean
parking garal i9ancibilyfeasi le'.man r' s'- ell—i"structurally
... ..t t
5
�--Jhietdfoiiii hiqhestia"�bdst structure�The value of
�ig�-the existing structure is limited-by the
: ,
V, �illlii" hihist( to the buil ng
-compliantZ,
isno - A ..............
' The property has not been earthquake retrofitted ,
To park the 5 375 square
0
foot:bulding'i'666id-e-�,--,tfi,ere-ne"e
" ' commercial uses that would be"interested,in the,property ��
Y s acesThe fact that the ro a +s under asked wtllrlmit the t es of
3qperatf!`;sq;p,,pUQ perkyear,,-,and...........
.......... ---
164r-is::estimated at 8u/6 dapitalii5fi zq t
earthquakeretrofitted
i s ;la co, e c, E E7Rt r
ON, pe, ss n
estimated
Revenues Generated by Property and Contractual Requirements
Contractual Lease(Appendix Q
Requirements
ncreasesjoer.,
ylik
Lessee International Surf Museum Foundation and Visit Huntington Beach
jtes� T3g,S_
ent;:A§6nc�J,�i::
History of Environmental Contamination or Remediation Efforts
�Historyuof
Environmental '
Con
Remediation Efforts None
Completed Sf'udies .e.... .......
March 4,2015 Page 7
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beech
Transit-Oriented Development&Advancement of Agency Planning Objectives
TPotential for TOD None
�.. .
Agency Planning The property will continue to host the world renowned International Surfing
Objectives Museum and library that educates and supports the surf culture. The
existing use of a museum is approved by the California Coastal
Commission as a visitor serving commercial use in accordance with the
Local Coastal Plan.
Brief History of Previous Development Proposals and Activities
'Prior to the forrrier Agency acquinngrtthe property the'I'lexisting building was used for medical office'
x`space ha Testaurant'and`a nightclub However kth `time of the acquisition-in Ma[eh 1988 the building
was vacant and in disrepair In11988 the former Agency entered into aone-year lease with the
International Surfing Museum�Foundation (Foundation)for$10 per year The Foundation agreed tom
restore the building Tle Foundation co 11 ntinued to lease the'space tlrough:January 2012 when the
Foundation asked VisffHun (fof Mal ly the Huntington Beach Visitors a`nd Marketing
Bureau)to assist the Foundation withstaffngrent and buildingmprovements Thecurren�t Lease
between the Successor Agency and theBureau expires in January 2017Thel% ease requires the {�� -
Bureau to pay the.Successor'A'' ',rent in^the amount 0f$250 per monthn}201Thisamount!will
increase with flafion through the end 0f the lease term in 2017
The International Surfin Museum Foundation was established in 1987 andmoved'to the arcel in,::,,
une
1990� hem Museum/L�b ary invested approximately$35 000}intonew flooring blighting and ADA
improvements iri the building in;November 2013 There are no plans to rnoveNttie Museum/Library
elsewhere andiitis expected that the lease will berenewed in 2017 at marketrate rent _-
Recommendation for Disposition
Government Use The p arcel h as been used�as amuseumsince1990 a'nd the�tenant
�inuested$35 000 in burg improvements in 2013 Citdoe�s no�t.�
� intend to ehange�lllthe use when�the current lease expires m°2017.as':the
us'e�is consistent'with the Local;Coastal Plan and encourages visitors to
Implementation Plan The parcel will be transferred to the City at no cost,which is the same as
the effective current value. The Successor Agency, upon approval of this
LRPMP, promptly will affect the transfer of the government use properties
to the applicable public entity by grant deed or quitclaim deed.
II 1 � � V.I��- IIV I I'Illp III ILI, I!�-. IIIIIIII z III° 611111 �ily�,. IIII III II S
,
II ,
III —
II II: r I' I IVI IIII IIII:.,,
wl �
I `f �j�J Ad �
�a,. ....,m,. -s �,..'� q� I r d,1I II I, !!r�I ill I IIIIII I IIIIIII IIIIIII III IIII IIIIIIII r_I hIIIIIIiIl�llll IIII IIIIIIIr,I 7 .I IIIIIII II li II IlllIllh I I
V9� Igl1 � �,,. 9 III III I IIIIIII IIIIIpIIIIIp�IIIIVI'I II�III�II�I d z��k 'Iw��p�lllllll�u�ll wl;l
March 4,2015 Page 8
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntingt__n Beach
Downtown Alley (Parcel 2)
The parcel is a 10-foot wide alleyway between buildings providing a pedestrian connection from
Main Street to 5 th Street near Pacific Coast Highway in the former Main-Pier Redevelopment
Project Area.
K:
O!Ri
Parcel Data
.. ....... ........ 't ref 6
�Adl'drei's"' ain Street e e 6if i c C da
APN 024-153-21
...............
Lot Size
... ............... ..........
022 Square Feet Q:0 A02 ... .....................�!
Existing Paved Alleyway
Improvements
PublicExisting Used 'A' -------
i"
Varm,
Use Restrictions Coastal Zone; Public Access
�Sp&ifkiOlih�5--bigt ....... d'' "'j,"W X.............._n-
Former Project Area Main Pier Redevelopment Project Area
geyJ"C"H"--e§sor.Apq t6-iunfint .. . .....
Agency'
Acquisition &Valluation Information
�ePyrp�fia�':s Dqq"t' b. ........
�g ke
Purchase Price $1
ur sj�:�. b i ilb"::6 c e;6n Main Streetaptly 5! _Street
Ppo :: EIL vd _*j4:pedeL P/ c
Current' Value(Est)i �iO
7"K
_f "I-Yrl :�! an
�N' �� .1 �,
-T
'Mdthbd:':,':o Va Valuation :��,i6n�fddt wide)-and location makes"A 7
4opablem rerrinaftan- is considered
,$avjivn ive&"
Revenues Generated by Property and Contractual Requirements
Annual;
;Generated
Contractual None
Requirements
March 4,2015 Page 9
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beach
History of Environmental Contamination or Remediation Efforts
!"i Environmental
Contamination
Remediation Efforts None
Transit-Oriented Development&Advancement of Agency Planning Objectives
Agency Planning The parcel provides public access between streets on large blocks in the
Objectives downtown. The Downtown Specific Plan 5 also calls the parcel out as an
alleyway and part of the downtown circulation plan.
Brief History of Previous Development Proposals and Activities
In 1993 the former a 1, . land - - ftDeveloper...
- quired _@ d''th parcelJhroJ6gh4` ` ' fi"Mqne -
prige. ith,,,t e��
development with seven on sit-II,parking es�iodat6d,6n,thq�corni)r--of M6ih��Ste66t'�g�a!P.CH -The
---- ------
W_ liw?,�Theexchange ofland was considered to be anequal exchange valued at$1. former ,9 encyjr eive
alleyway J-hei aic'ed urren
u r pedestrian F:
provide public
Recommendation for Disposition ` El property,-
:
Goverriment"lJse The••Successor Agency is responsible for main#aimng the
-
,,�however,�the City h'6ii-,been maintaining,, Rrope y;�inc e rt I li
ghting The parcel istused by he:pqpljco,r e,
bf,aliird6rb 64 the parcel does not
land�!Vlaim treeU9Jne_middle_
�currently have a"n',,",'e—a--s-e"'ln"ient rec6'rded,on it(since the!Successor
he City to sell,the parcel to ajhi third party....owni'.�'it)'if',ithe��Agency--w6'�,e
ic, �Wou require a,public cess'�;:easement Ibe—recorded;-wi; h�#would remove'.
M NIC
Implementation Plan Given the public use, the parcel will be transferred to the City at no cost,
which is the same as the effective current value. The City intends to place
a public access easement on the parcel. The Successor Agency, upon
approval of this LRPMP,will promptly affect the transfer of the government
use properties to the applicable public entity by grant deed or quitclaim
deed.
March 4,2015 Page 10
Amended Long Range Property Management Plan
successor Aaencv to the former Redevelopment Agency of the City of Huntin-ton Beach
a
,
�pp
March 4,2015 Page 11
Amended Long Range Property Management Plan
SuvCessor Ag}ncy to the former Redevelopment Ag--ncy of the City &Huntington Be:2ch
Public Skate Park (Parcel 3)
The parcel is located east of Gothard between McFadden and Center Avenue in the former
Huntington Center Redevelopment Project Area.
.� gqgqMM CC yy ,�
a atl l 11 rl III IIII yu7r IV 0, -
Ilk
51
� p
w
Parcel Data
"Address' 7541 Center Avenue
APN 142-073-03
L'Ot Slze �: 10'8 910 aSquaareFeet 2:50 Acres
-- ......cm.. P 'w� ..owu..0 .»...... .....v..�.uu. -
Existing Public Skate Park
Improvements
xistm ments
E.,.,e gj&se Public Skate Park k
Us Restrictions Public Skate Park; lease restrictions (Appendix M); Specific Plan 14 park
requirement(Appendix H - Book 111: City Actions Section 3.2.4 Parks, Page
114); undergoing inclusion in City's Parks Master Plan (to be completed in
2015)
Zoning 3xa SpecifcPlan 14`=T5(Town Center Ne ghborhood)(Appendix H) 1
Former Project Area Huntington Center Redevelopment Project Area
Current Tltle - Successor Agency to the Huntington aBeach Redeveloment A enc
M. .p 9 y.
Acquisition &Valuation Information
Purchase Date ' December 9 198,7
n ..
Purchase Price $1 055 071 (as part of the full price of Parcel 4)
Purpose��� ____, `� For thefuture Gothard Hoouer Street�Eztension and�Realignment - , ,
Current Value (Est.) $0
Method of Vaeluation The property is currently-leasetl to Vari"s for I.$1 per year and the use is�
restncted;to a public skate park Given,that the parcel will be'included m
the City s Parks Master Plan as'Well as the ground lease�restnctions yand
' ,� environmental issues,,.the effectroe.lwalue_of th'e parcel-is=. _
March 4,2015 Page 12
Amended Long Range Property Management Plan
Successor Agency to the former RenUmvo\opmmnt Agency of the City nfMuntingtonBeach
Revenues Generated �y Property and Contractual Requirements
bontractual
30 year Ground L�ase with automatic extensions(Appendix M)
Requirements
Rmft
Lessee VF Outdoor Inc.
requireHisto!y of Environmental Contamination or Remediation Efforts
is
Remediation Efforts Potential methane gas concerns were addressed through the City's
requirement of methane barrier installation for the two constructed buildings
on site. However, any other development other than a skate park would
| mitigation.
Trans it-Oriented Development&Advancement of Aqtnc Obiectives
IR
Agency Planning The use meets Specific Plan 14 park requirement(Appendix H- Book III:
Objectives City Actions Section 3.2.4 Parks, Page 114). In addition, the skate park
assists the City ^' meeting —General ' lan— -- P—- ---- lan- ---~—
plangma|ubyprovdingfnaepar use. The City iu currently updating its
Parks Master Plan and the skate park will beincluded. The Beach Edinger
Specific Plan BR also discussed that the City iu below National and State
standards k
Brief Histo!y of Previous Development Proposals and Activities
provide re
-71
March 4'Z015 pagpzs
Amended Long Range Property Management Plan
Successor Agency to the former edevelopment Agency of the City- of Huntington Beach
Recommendation for Disposition
Government Use _ This parcel6s Improved vvith a public skate parkxthat s leased and operated
by',V ris Whde Uans is th allowed to lease concess on s ace e ncome
� generated from the concessions-is not sufficrie t`'to cover the�costs of �
��, 4� ,supemsring operating and msuring:th"e skalte park as required by the,P'I ��-_
�i 3 � � � �' ground lease Thhs use meets�he park land regremen�t in the Specrifric ''
u ��„a ___- �Klan General Plan and the Parks Master Plan:= - - �,- _a
Implementation Plan The parcel will be transferred to the City at no cost, which is the same as
the effective current value. The Successor Agency, upon approval of this
LRPMP, promptly will affect the transfer of the government use properties
to the applicable public entity by grant deed or quitclaim deed.
xril74 �llb��'✓'!'�� I I� aar��o h^ p k r li I v° 6� i lu ",
9
jd u,:.. is a
I! i
�I
—
r � I
I
IIl0lllll glpulluWi � rvl',,INlllll uul I'I
Flo I fpllll �IPI'IVilil �'lllll� I� IIIII Id�rv�lllll l�l V
l rF
18,
i � Ali irtu �I i Il��i ii
dIM
K77}
l$NN � 1�9�11� 1'6II�@IN d'hNll.�.l'r -,
Or.�-"^zv,,,au�^e hw., u1,',9ry 1ui ,� - III ul
March 4, 2015 Page 14
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Bea-ch
Westminster Parcel (Parcel 4)
The parcel is located on the west side of the 405 Freeway and McFadden Avenue and is
between College Park and the railroad tracks in the City of Westminster. The property is
currently unimproved next to a park in the City of Westminster, the 405 Freeway and a storage
facility.
U �yye
gI,;
�
€ w a
p N�ii�� l III�171 Ilbllhlllll
Parcel Data
Ad"dress � No Address rt" i i' ",G.'
APN 142-311-34
LOtSIz"e "50 573 Square Feet 1 1'6 Acres" NV
Existing None
Improvements
Existing Used _ wv. Vacant Land/Landscaping � aF
Use Restrictions None
Park/Open Space Cify of Westminster
Zonmg n
Formed Project Area N/A
Current Title Succes"s"or Ageri"ct: the;,Huntington Beachd`Redeuelopment Agency l
Acquisition &Valuation Information
Purchase Date ., December 9 1987 „;
Purchase Price $489,929 as part of the full price of Parcel 3
Purpose For the future�Gothard Hoover Street Expansio and Realig
Current Value(Est) $0
a — t
Method of Valuation' Given the-location configuration and size the Parcel'':is cohsidered"fo be
} uridevelopable for'commercial uses and thus is considered to have n
reffective.alue
March 4,2015 Page 15
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Be-ch
Revenues Generated by Property and Contractual Requirements
Annual'Revenues None
Generated
Contractual None
Requirements
History of Environmental Contamination or Remediation Efforts
History ofUnknown;no tests have;occurred "
Environmenta'I -`
Contamination
Remediation Efforts None at this time
CompletedStudies City of Huntington Beach Water Depament is`currently sstudymg the
a
pa'�cel. r
Transit-Oriented Development&Advancement of Agency Planning Objectives
Potential forTOD Unknownl
a.
Agency Planning The City of Huntington Beach has had three water wells fail within the
Objectives general location, the City's Water Department needs an approximately 100
foot by 120 foot portion of the parcel to create a replacement water well
(12,000 square feet). The Water Department is conducting soils and
geological testing on the site. A multi-city group (including Huntington
Beach) is considering the site for a multi-city animal shelter on the
remaining approximate 38,500 square feet of the parcel. Discussions
regarding the development have just commenced. A new shelter will assist
the County due to overcrowding and the distance to the County Animal
Shelter. Alternatively, the City of Westminster has expressed interest in
developing the remaining area as a park, if the shelter is not developed.
Brief History of Previous Development Proposals and Activities
Once it was established that the parcel was'not required for fhe Gothard Hoover`Street Eztensoi ,and
Realignment the formerk,4g�ency soughtlother uses forAhe property On January 27�2011 the City
released:a Request for=Bids (RFB)for,the sale of Parcel 4 The RFB was placed on the City s website
sent to public agencies,,mcal realtors and adjoining property owners The City received a;bid for the !''
purchase of the parcel Subsequent.tb receiving that bid the W Redevelopment Agency
expressed nterest m purchasing the,property;`and"''Vided a second bid. Based onUthe two bids,wstaff
recommended that the parcel be sold to the Uestminster Redevelopment Agency -:The sale was never
,� A
consummated4due to the state wide elimmationrof redevelopmentagenc W
Due to the failure of three(3) nearby water wells the,City VNater Department is m need of the ma�onty off
the site for water wells and is currently;conductrngso s and g elogical�testing onthe site A"multi',city
group (including:HuntingtonBeach) is lookmg,to the site in regards to placing ari animalgshelter on theme �,
rem�ammg�approximate�y�38 500 square feetof the parcel The City4�ofWestmmster hasalYso expressed
interest in the rernamrrig(area as a,park,if the�shelter isnot developed w, '� „ , „
March 4,2015 Page 16
Amended Long Range Property Management Plan
Success or Agency to the former Redevelopment Agency of the City of Huntington Be-ach
Recommendation for Disposition
Government Use The Site is considered undevelopable for commercial uses and three public '
entities are mterested,'In_deyel p
opmg the„parcel for ublic use.
Implementation Plan The parcel will be transferred to the City at no cost, which is the same as
the effective current value. The Successor Agency, upon approval of this
LRPMP, promptly will affect the transfer of the government use properties
to the applicable public entity by grant deed or quitclaim deed.
An approximately 12,000 square foot(100 feet x 120 feet) portion of the
Parcel will be transferred to the City of Huntington Beach's Water
Department at no cost. The following are the options for the remaining
approximately 38,500 square feet of the parcel.
The City will continue discussions with the multi-jurisdictional cities in
regards to the animal shelter for the portion of the parcel that will remain
after the water well is developed. That portion of the parcel will be
transferred to the City at no cost and the shelter will be developed in
cooperation with other northwest Orange County cities.
■ If the animal shelter project does not go forward,the Successor Agency will
offer the remnant portion to the City of Westminster to be used as a public park.
■ If the City of Westminster is not interested in the property,then the Successor
Agency will market the remnant portion on the open market to be sold at the
appraised highest and best use value. The proceeds from the sale of the
remnant parcel will be distributed to the Taxing Entities to the extent required by
law.
March 4,2015 Page 17
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment A%gLncy of the City of Huntington Beach
Waterfront Hyatt Regency Hotel (Parcel 5)
The parcel is located on the northwest corner of Beach Boulevard and Pacific Coast Highway in
the former Main-Pier Redevelopment Project Area and is improved with the 517 room Hyatt
Hotel. The hotel also includes 9,090 square feet of commercial space, a 52,000 square foot
conference center, 20,000 square foot spa, three restaurant and lounges, and 990 underground
parking spaces.
nV
xv
.�-�' .<u�
Nr
Spa a ii �ihldl, x y it9-
p� 6 i
sy
Parcel Data
Address 21500 Pacific Coast Highway =
APN 024-251-01
Lb
t e 66.0 741.;$quare Feet 15 17 Ades _ �t - �__ � z
Ex_isting 517 room Hyatt Hotel
Improvements
7Ex1sting,Use
Use Restrictions Ground Lease(Appendix N); Local Coastal Plan (Appendix 1)
!Zoning Specfic`Plan 5 -D stnct<3 (Appendix
.L.
ccessor A enc to,the Huntinct Area
Curre t Title �S Redevelopmentg Pro'egton.Beach Redevelopmen genc t Ay;:_,,�,,,,a
Former Project Area Mu�n Pier March 4,2015 Page 18
Amended Long Range Property Management Plan
A
Successor t A"gency to the form rede
velopment edevelopment tAgen-C-y of the City of Huntington Beach
Acquisition &Valuation Information
0 9
Purchase 4a t,e September
p e , ,
88
Purchase Price $7,722,159
Included-re- me ia
th6 and mfrastru•cture(including roads water sewer)4 -r Current Value(Est.) $7,900,000 based on an appraisal (Appendix X), less repayment of the two
enforceable obliqations.
Method-of ValuationBased `RW�F'W"Wu— &�Successor�Agency,s Lea d'
ie air, &ket'Valu6bl,Jth se eell
Fi-
Infer nF le i ,prope'ft
Revenues Generated by Property and Contractual Requirements
Annual Revenues $184 618/annual �
"Y
-Generate g i,z d
Contractual 99 Year Ground Lease expires in 2097(Appendix N)
RequirementLease Rate __ r B'. 1 11;e,Mnt_4ift', a'h-n-mu-a CPI increase plus:
a' §,�h I
�a�r ei,o,,fJobm!,r_)ey,,
ep,
u piabove g!:
N
the base,"rent.
Lessee PCH Beach Resorts LLC
FSl'-"FAT I'll�W7�11,�Ir
U eve op
6 ls, s,6r',F cc f,�j g en, "MR l"" t k"'ll
Unfingtori�B62kdK
History of Environmental Contamination or Remediation Efforts
an s
Kw`�W z -- s,we t as,wetl d
H i f I Hazardous'2 a r.d 6 u s material t e r i a I�h�n i�9d i�ft i i i i i!! required, a-d
Environmental' MI iga ion 1"Seven-abandib'hed bilAt�*dis wd`rb'-,omsite that had 6tl
haa n �meCth me
Cent mi anon -D UlOil and Gas it,�:uturO,housiffg or commercial
F
6M
T
Remediation Efforts All seven oil wells needed to be re-abandoned and recapped to current
state standards. The City received a letter of"No Further Action" in
approximately! 1999. :01�- IW -OR.C�0400!$t die's- Numerous stil. illl"l iudies,if desired��tan e provided;
Transit-Oriented Development &Advancement of Agency Planning Objectives
Potential for 0pff Not ApplicableIr"M '13- WON
Agency Planning Keep existing Hotel with a large employment base.
Objectives
Brief History of Previous Development Proposals and Activities
_The H,yatt-R"&g_6n'c`
--y f years- -11 1
ofredevelopment plannfnj4 fori-1,982-tot2'003 A'
-ofith'6
comprehensive an 6b6mplbxMate Waterfront the Hyat,Regency opened in January 2003
1M
Besides zthe ZHyatt Regency"fthb�mUlt Pp a_s_e RMai'e-rfro-nn�,d eveIopft
dh' _-inbl6d6;.the�v?Wat6-rfr6hfHilton1W:�f�-
Bekh'�Rbsd i-th' t 1`84 unit residehii"61'"c'om�p"o"'n""-ent�:�::"atid��69futUre'exoafton��ofj 1h,",
.� aa5�p; ��,,F'I , �,
JAq _Whenthe�Disposition*
"Matbrfrldrit"fli parcel 6fland-.bd' t"t- the i_-exis'fifi4_�hdt_l - l' 5 and
Hilton hotel.
,V 17
D��yp qpment&grperp�pt�,P` DA)for�,thi�- 'V'�tEiHr�6iii�'pr,'"' 1 6' 9d_ihj988 (Aboenclik,&),the
March 4,2015 Page 19
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beach
d`eteno'rafion andobsolescencedue to;long deferred maintenance The`former Agencypurchased theme `
fee title in 1988 which was subject to an existing ground lease With fee title to the site the former
ggency approved a,DDA with Robert L Mayer as Trustee ofsthe Robert L_-Mayer TrusttolA 982
4zs - w - r --- ,
(Developer) in September 1988,thii! at provid6_V- a six phase°d eye lopment That woultl remove a gas
station a�pitch_and putt;'golfcourse,ahe Huntington�BeacFi lnn and-the 239-space Driftwood Beach Club;;
mobile home park along' with its associated buildings Arid"pavedparkng areas as wellas�reloc�ate the
City s Beach Maintenance Faci„lity A portion`of the site atltacent to Beach Boulevard included a small
Kdegraded wetlands area In addition to the already mentioned'Ablighfing conditions aboveground seven
abandoned oil wells were found to be on the site These wells did n_ot meetathe Division of Oil and Gas
regwrem,ents for,future housing or commercial tlevelopment and had to be re abandoned and recapped
to current staIT,ndards - � 77
� _y
OAs stated above the Waterfront Hilton,Beach'Resort openedin 1990 In 1998 the former Agency ands
v lMayer Financial L P an affliate o the.`oriD r nteredinto mdginaevelope anAen ' anf -RestatedDDA
�.
to redefine how the rema ring phases of development wou Idbe carried out The arnende&DDA called
for the fee interest m the residential poition$of the site,to be sold to the Developer_for Elie subsequent
development oii84 units which occurred in 2„003 Inaddition the amended DDA called for the
relocation bf the remaining 102 mobile'home park;residents to be completed which occurred at about
the same time Since approval of the amended DDA ,there have been fi ve irn-iiplemen ta tioMagreem en ts
to the DDA J i
XF
Pursuant to the 1998 a nded IDDA�n 2001 the former A enc and PCH Beach Resorts C a �y
9 Y ,
subsidiary of the�Developer, (Lessee)`entered<.rnto�a 99 year ground"lease for Parcel 5 The 1998
amended DDA and 200.1 ground lease"calledzfor Parcel 5 to be developed with tne'5A room Hyatt
Regency;hotel Given the extraordinary off site and on site improvements that were necessary to
W
the Hyatt�Regency the otoject was established`to;have Y$;22 mill„ion financial gap, as verified
une was regwred by CaiifomG HealthAa d�SafetINKy od Sec""AMPfinancial gap to be filled with the followingity on behalfof the former Agency "entered into a$6 million Section 108'loan(Appendix P)
r with 'the US Department of Housing and Urban Development(HUD} The City antl the_forrner `N
Agency entered into a an agreement that made rilthe formerAgency responsible for�epaymg this
Section1081oan with propertyytax,ncrement , ij
� k '
2` The,"remaining financial'gap was filled by the Developer agreeing to impose a Communities F aa lIties,r
; District(CFD)on the property and`to make the CFD debt semce payments The Developer_antl the
former Agency executed a Promissory Note that regwres theyformer Agency,i:rebate`the debt
servi*payments usingproperty taz increment(PromissoryNote Appendix O)'
The DOF has established that the debt service payments�onthe Seefion 08 loan and the--Promissory
Note are Enforeeable�O,bligatio'ns The debt service payments are as followsgO
ZZ
1 Theme Sectiion 08 loan reqijifftbfii payment ranging from $448 000!J6�$`538 000 per yea from
tax increment has an existing balance of:$2 300 OOO�and*expires on August 12019 '
AWIWi�w `
The'Promissory Note requires an annual payment of approximately$735 000 per year and the
s
obligation expires.,on Augusts 202: The current outstanding;balance_is$4 620 000iij
T,he Les§ee has,,offered}to purchasgjhb-Successo 'gency s leasetl fee interest�n Parcel'51from the i
SuccessorAgency for$7 900 000 SThe Successor Agency agrees this is the current Fair Market Value
of the Successor Agency s Leased Fee Interestn the prernisesand'_the offered puce is supported bya�
"a'ppraisal prepared by{the highly respected consulting firm of PKF Eonsulting USA which-the Successor
Agency's financial consultant hi''
reviewed and accepted The ground leaseiis sef.to ezpire�nA-2097
and the ILesseehas a Right of First Refusal if the Successo Agency should sell Parcel 5 prior to the endz'
of the$ground lease term � ;, �_ ,
March 4,2015 Page 20
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beach
Recommendation for Disposition
9;rif
Implementation Plan
The Successor Agency is in negotiations with the Lessee with the goal of
selling the fee interest in the property for the agreed upon Fair Market
Value price of$7,900,000. If the sale transaction is consummated, the
proceeds will be used to first repay the two Enforceable Obligations on
Parcel 5, the Promissory Note and the Section 108 Loan, in full in
compliance with the provisions of AB 1484 and AB 1X 26 and any
remaining proceeds will be shared with the Taxing Entities to the extent
required by law. The Lessee would continue operating the desired hotel
use, employing over 400 employees and providing sales tax, additional
property tax and transient occupancy tax to the City.
If the Successor Agency and the Lessee are unable to reach agreement on
the sale transaction terms or the sale is not consummated within a
reasonable period of time after the DOF approves this LRPMP, the
Successor Agency will continue to market the property at the Fair Market
Value of the Leased Fee Interest, subject to the Lessee's Right of First
Refusal. If a sale transaction is consummated, the proceeds will be used
first to pay the two Enforceable Obligations on Parcel 5, the Promissory
Note and the Section 108 Loan, in full in compliance with the provisions of
AB 1484 and AB 1X 26 and any remaining proceeds will be shared with the
Taxing Entities to the extent required by law.
March 4,2015 Page 21
Amended Long Range Property Management Plan
Successor Agency=o th=former Redevelopment Agencsl of the City of Huntington Beach
Waterfront Halton Hotel/Parcel C (Parcel 6 and 7)
The parcel is located on Pacific View Avenue between Huntington Street and Twin Dolphin
Drive on Pacific View Avenue in the former Main-Pier Redevelopment Project Area and consists
of a 290 room Hilton Hotel and Parcel C—the future site of an expansion to the existing hotel,
currently used as additional parking and event space as needed.
r�^�
Ill�l�0l1'�I�W�;I
q #}R
Parcel Data
Address a&-W, 0 Pacific'Coast Hignway ..
APN 024-252-01 and 024-252-02
Lot Slze� - Hilton 156 I$V SquarehFeet 3,60 Acres PareeL C 158 023'Square Feet;
I .
363 Acresu, K'
Existing A 290 room Hilton Hotel; surface parking lot and event space
Improvements
111
Existing�Use Hotel andd'Daeking lot a nt spaces
Use Restrictions Ground Lease(Appendix R); Disposition and Development Agreement and
four Implementation Agreements (Appendix O); 5ch DDA Implementation
Agreement(Appendix S); Local Coastal Plan (Appendix 1); Parcel C-
n.
parking and access(Fire) easements (Appendix T) ry
m
Specific4�Plan 5 Distncfi3 A endix
Zonmg�.v d, r �
Former Project Area Main Pier Redevelopment Project Area
ter. ,., _ -�
Current Tale = �Swccessor Agency to theHunfingtonBeach Redeuel,op`mentAgency=
Acquisition &Valuation Information
Purchase Date September 19 1988£ y
-.
Purchase Price $3,677,703
Purpose To deve loptwo hotel towers which was tobe included withinfa4�4-"acre
master plan_thatncludes residential de�elo,pments"and threel'hotels;
Current Value(Est) $5 607 950 based on an appraisal (Appendix Y).
Method of Valuation Based on the Fair Market Value'of the'Successor Agency s Leased Fee
interestjin the-property -
March 4,2015 Page 22
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopmen.-Agency of the City of Huntington. Beach
Revenues Generated by Property and Contractual Requirements
Mic
"A n!Jiival�Adver6ii- �,i $450�000 p66yea
Lease Rate Base plus annual CPI increases,
Re'� i Contractualr q
Lessee Waterfront Hotel LLC
.. ...........
NV
qgOsso r,�.k:66_ -7
V,
History of Environmental Contamination or Remediation Efforts
7�n i
FHistdy6f Hazardous , e Iat on was�,requiredas wellaasVe an s
Environmental P mitigation.r Seven� "abandoned oil wells were on site that had not rnet theContarriilnatlon Diaision of Oil aril Gas=.requirements for future housing orcommeraal
_ development Th'e former gas station also had leaking'tanks with soil 'z
Remediation Efforts All seven oil wells needed to be re-abandoned and recapped to current
state standards. The City received a letter of No Further Action" in 1999.
��.Coimpleted Studiesi:,:!, umerbus':§tudie% if desired can_i e,provi bid. Parcel"C m5y.,..nee
V _;c
studies gF � further
Transit-Oriented Development&Advancement of Agency Planning Objectives
, 4
N" � ...
Potentialf ::: i; �:!�,::! - applicable-
6�: D ot
Agency Planning Keep existing Hotel and build a second tower with a large employment
Objectives base.
Brief History of Previous DeveloRmT2eqnLtProposals and Activities
The':Waterfr6nt.'Hilton-H,otel/P'6rc6l���C-is:th:6 re eve M lo'p lanning from 1�982:16,2i��,.
of P4i -4 the`csmpre 'ensiv, e'and' cqM Ipx,�!Wat A_ egu=d,l dpmbnt�t,h6I'WaL_te ff o
I
0.l.t 6..`.n..
't0 6'6' hxq9M
ZLJ'e6i&s'the Waterfront Hilton,the multi hased-Waterfront d elooment 66l des:the Hyatt
:i - &i�j
Regency
t------d' --f t
that opened ne i U_ 2Q_0'371a_1 84"Uh it
91,�anuary onen, pri a u ure expansion of the:,Waterfront
`iHilton hotel o(t he.�adia(�6'nti,�:6:rcelt ii and Devielpment
_111...............
!-Agr.b6hIefit-(DDA) betW66hpth'e-f 6`tm',er Age"ricy.'i'a-li original_DeV&ft6rot the Waterfront aterli r, je--twas
nni_��
jn 1 q_;5 (Appendix the'�r A bight and
app!�pvecl 8 "ed" I t e o s.wa&_o eliminatesi
,eveopmen,,,
assist economic A �po
iMs with oriothibIT6 revitalization Z
"0
_r A 4 iai
2�an amended include
8 "d a the
. ....
The Maim Pier d6ptdjd�.iq-19
ateffroht site`,,which totaled 4'4�acres The site was blighted; howingilevide'h
p,
poL�,df phys''icalA4
deterioration- 'd b _Qf A� h'
—an obsolescenced- 166 d'eferre"di-,�m'aini�en�ance.-,,,I�i�7T'he-;"--6--fi�-h,er��', gency-,,purc a
ce ue� oi�long
former
"'With iit6�.the
the
fee title 968"'-whi 611w5si,subject�togp,�p Ileaie. f661it]6��.to the th
g.gjobn�
that provide a�isix phase
b 8 provided"fog a-s-e",
Developer jri,�September
devglopnent,that"would remove.a gassta"ti-c golf
_, and .............. fcoursethe,H uhtington Be
-aph]"i
i
* -
and the 239 §p4q6 Driftwood Bead f6bS6bIIE h9pe park, ngwith-its!associated buitdmgs aid
paved parking-areas, as�Well e 6y!6I ea86 iMa i nten ance,-, A` A:....portion 1 -df-theitite
i i
Facility Y ML!
�idjac6htjb��, -�a-ch-'�B-o-til-eva-i�d�iiT61udbd�b:,:-s-m�all':.,-de�--gra ibed-we[5 h d i, t
be.oniIhe:::i:
mentioned blighting bon i io!j§,aboyg groundseven a 66clon'ecl oiliVells found were to: si eThese .
wells
4_
meetUWDiVisiq .10-1` -d Gas requiremen dents o- - t t r futurehousing f , �;' -
development
U.In April 28 1989 the former Aigency and Robert L Mayer as Trustee of'the Robert L M ,
v,
ayer jrust�
"Zz
6 Pbr-,661_61MF
e
March 4,2015 Page 23
Amended Long Range Property Management Plan
'Successor Agency{o the former Redevelopment Agency of the City of Huntington Beach
in 1990 Thelessee s interest in the G"roundiLease was sub"sequenfly assigned to-The Waterfroriff i
LLC an affiliate of the original Developer/lessee As stated above,,the Waterfront Hilton Beach�ResoA
was complet i 199 Te Lsse alolthe adjacent;PaIrncel,7/Parce C which tAeetland opened eases;
ignates aplanndepa o theWaerrnt HDDA des ilton accordance with the
DDA and=Lease-terms the base rent for the Vti/aterfront Hilton parcel and Parcel 7/P cef C watitiRds recently
updated(as of January 1 2014j based on an aapaisof the LdFee I easenteresin�the property
Irr_1998 fhe fo er Agency an11-1
d Mayer Financial L P _also an affiliate of the.original developer
amended the DDA to redefi_ 'how the remaining phases would be ca rir ed,out The amended DDA
called for,the fee-interest in theRresidential portion of the sit6eto be sold to.the Developer for the
..
subsequent development of 184 units which sale occurred in 2003 =1n addition�the relocappri�gf he
remaining 102 mobs horn ark residents was completed,:Since approval of the am endedrDDA wthere
have been five'? m;,ementation-agreements tbAhe DDA dIr
Pursuantrto the 1998 DDA the'Developer sub�tted an application to the City to construct the hotel
expansion on Parcel 7/Parcel"C byD.ecember 31 2009 This hotel:expansion is currently_proposed to �'>
be compnsed�of 151.rooms with a'spa ftness fac lity andlounge/bar for guestsTsheprofeact will£add
needed pub infrastructure up'gradet to off-site improvements creete additional�hosplta(ity industry andk
construction fobs,ph d increase;°property tax sales tax and tra ns�ent occupancy tax;revenue
On Octokier 20 2008 and October 18`2010 a 3`-d and 4`hjlmpl6me t on Agreements to,the 11 98
DDA were executed betweehe former Agency a d theme Developer t_o extend th
the9chedof '=_
Performance for the development of Parcel 7/Parcel C,,On May B 2011 the 5 a Implementation
Agreemento�the DDA(Appendix S)w �executed`betwsen'the former Agency and the Developer to
prowde for an amerided;and restated ground lease to consolidate P,ceis 6,and 7 into one site which
"111would be covered by aw consolidated ghodnd lease if construction comrroenceson the hotel
expansion within the time set forth in the=5 I11 mplementation'Agreement jH' consolidated ground lease
includes.botha base rent and a part� pationrent and the term is set at 99_years In addition under the
terms of the agreement the City of Huntington Beach (not the Successor Agency)will receive a
j payment,of$250 OOO fro the Developer each time an extension to the DD is granted to-provide
compensation for the estimated loss m TOT that the City would have received as,a,result of ithe timely
development oaf t_he third hotel Rand with the Developer entitledtoa ereditagainst these extension
payments for specified project related costs
a a [
NaA � > wgl
If=constr coon has not comm enced on the thiird hotel;by December 31 2016 the consolidated ground
lease willXot go°Ento effect In that case,the existing�Parcel'6 ground lease would;remain in place
through December 31 20. 86 and Parcel 7 would continue to;rbe encurnbered by a Parking'Easement
Agreement(in the form iset forth in Attachment C to the Interim Short Term_Lease executed by the
former Agency on Apnf,14 1999)}a"Lice se,`Agreement tol rovide Landscap ng and other
Improvements m the Public.Right-of Way"`#hat was executed on Februa%20 200111
and thMe Reciprocal'=
m'Firdi, and Access Easement Agreement dated August 30; 1;995 TheParking Easernemt Agreemen#
prow des;for a parking easement on Parcel 7 for the benefit of Parcel 6(Hilto property) as moreA '
particularly set forth in the Parking Easement AgreemenMT
t 1,
N
- e - = �
The Lessee of Parcels"band 7.has offered to;purchase the Successor Agenc�r s leased fee Theeaier
,
Lessee s proposal is that the eon�veyance wouldiocscur in approximately�the`n4 quarter�of 20315 orsthe 1
quaifer of 201'6;when fhe Les`seeris prepared',to pull building' permits,and break ground on the hotel
u, g;
�expans�on protectThe'proposed purchase price is based upon an appraEsal of theYvalue_of they:
Successor Agency's leased fee interest m Parcels 6,and 7 as of January 1;2016 which appraisal was .
Pr
epared by the highly_respected consulting firmof PKF Consulting;USA - � _
Recommendation for Disposition
, Enforceable = Through the'approval of R68VU`tIon;No 389 A Resolution of the _
March 4, 2015 page 24
Amended Long Range Property Management Plan
Successor Agency to the form R-edevelopment Agencyof theC` of Huntington Be-ach
ibyW
Implementation Plan The Successor Agency is currently in negotiations with the Developer with
the goal of selling the fee interest in Parcels 6 and 7 if the timing of the
conveyance is tied to the commencement of construction on the hotel
expansion on Parcel 7. |f the Successor Agency and the Developer are
unable to reach agreement on the sale transaction terms or the sale ianot
consummated, the Successor Agency will continue to follow the
requirements inthe legal agreements for Parcels Gand 7 and fulfill the
Enforceable Obligations for Parcels G and 7.
The following summarizes the potential disposition alternatives for Parcels
G and 7:
" Alternative 1: The Lessee begins construction on the hotel expansion on
Parcel 7by December 31.2O10. and the Lessee purchases the Successor
Agency's leased fee interest in Parcels 0 and 7 for Fair Market Value oa
determined by the Successor Agency based upon on appraisal. The proceeds
will bo shared with the Taxing Entities to the extent required bylaw. If the
Successor Agency and Lessee mooh agreement on the oenna and conditions of
o sale by the Successor Agency m the Lessee of the Successor Agency's
|ooaod*ao interest in Parcels and 7tothe Lessee before the DOFoppmvoa
this LRPMP.the Gu000aaoo4genoy may submit an amendment to this LRPMP
to its Oversight Board and DOF for consideration.
" Alternative 2: The Lessee begins construction on the hotel expansion on
Parcel 7by December 31.2O10. pursuant to the existing D0\. but either the
Successor Agency and the Lessee are unable to reach agreement on the sale
transaction terms for the conveyance of the leased fee interest in Parcels 6 and
7or the sale ia not consummated. Within o reasonable time after the Lessee's
88'yoo/lease of Parcels 0 and 7 commences,the Successor Agency will
market the property at the Fair Market Value of the Leased Fee|nhevem, subject
to the Lessee's Right of First Refusal. If a sale transaction is consummated,
the proceeds will be shared with the Taxing Entities to the extent required by
|ovv.
~ Alternative 3: The Lessee does not commence construction on the hotel
expansion on Parcel 7in accordance with the Schedule of Performance,the
D0\terminates oato Parcel 7. and the existing Lease on Parcel 0 remains in
place. Within o reasonable time after the D0\terminates oato Parcel 7.the
Successor Agency will market both(i)its separate leased fee interest in Parcel
0 at the Fair Market Value of its Leased Fee |nhanaat, subject to the Loaoeo'a
Right of First Refusal, and (ii)its fee interest in Parcel 7 for its intended
development oao hotel ot the Fair Market Value of the fee interest|nthe
property ao encumbered with the Fire Eoaemont, Parking Easement and
Landscaping Easements; provided, however, Parcels 0 and 7 will not
necessarily be marketed oo being sold together. The sales proceeds for both
Parcels will be shared with the Taxing Entities to the extent required bylaw.
" Alternative 4: The Lessee does not commence construction on the hotel
expansion on Parcel 7in accordance with the Schedule of Performance,the
D0\tonninotea as to Ponm|7, and the existing Lease on Ponm|0 remains in
place. Within o naoaonob|e time after the DDA terminates as to Parcel 7.the
Successor Agency will market its separate leased fee interest in Parcel 6 at the
March 4'Z015 Pagers
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beech
Fair Market Value of its Leased Fee Interest,subject to the Lessee's Right of
First Refusal, and(ii)convey its fee interest in Parcel 7 to the City to be
retained for future development as a hotel as encumbered with the Fire
Easement, Parking Easement and Landscaping Easements. The sales
proceeds for both Parcels will be shared with the Taxing Entities to the extent
required by law.
It is anticipated that Alternative 1 will generate the highest proceeds of the
four alternatives for the Taxing Entities.
1
March 4,2015 Page 26
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beach
JEdinger Hotel (Parcels 8 — 13)
The property is located on the southeast corner of Edinger Avenue and Parkside Lane and is
undeveloped with the exception of a vacated Big 0 Tire Store on Parcel 8.
jai
F,
A,
W
1W,
IrMo
Parcel Data
Avenue
APN 142-081-09, 10, 11, 12, 06, 28
lot Size a F 7
AL�L
Existing Undeveloped with the exception of Parcel 8 which includes a vacant 8,169
Improvements Square Foot auto retail shop.
ist!n�g� , ,—
Use,�:_: ';'Use Restrictions Property is restricted by a Purchase and Sale Agreement(Appendix U)to
hotel development.
Specific Plan 1 4�--N (............. d......H)-"
Former Project Area Huntington Center Redevelopment Project Area
SuccessorRedevelopment Lou'irent:�Ati6�MRRS" �'y
Acquisition &Valuation Information repurchased-_-- ` --in h;--K
Purchase Date A was -1988 _1 6 .Parcel 3,itp ic:fP
Wpdrcetve � iW1
.......... .. . .....
gLsqd in 2009
Purchase Price $4,844,425
�Y � � � comprehensive redevelopment,pr�op al for the entire block and the"
Current Value(Est.)
$3,100,000
iethodzof ValuationThe proper y�it�restric't, d jb�t
0,t6;A1.
0 ropTItande
hotel b
the'ame'nded;Purchase and.Sale §e6dnent,(PS ).
March 4,2015 Page 27
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beach
accordance with'+the PS - th6"dev6106'(v-vill,t"f-c-q uirb t,
million NThis sales-price,is supported
ppored by.,
an appraisaIx atedian6ay�%�- 4ir..... .......
2042 (App6bdix V) t s 6uldl,b6i noted that th6 ValUd',Js impacted,,.,bV,4,,"r'v
hazardous materials l6cated,'66jh' for
Ma
aerias- eesi e as�
well asJ e�ipoten'tial
additional 66vir6nmehta�rpyrie�iaii8A!R�at may
Therefore.-
given the,environmental',,-reme iatiohtrisk§ and the provisionsuc or h already agirdedto within the PSA it is cdnclud ed that the listed
.. .........
min the !?S�,-k is-.pppropriate�asthe currentimark.etivaye.,_
were toi be cancelled and:1he,insurance policies expire', I I
�mneg6tiltin 1' ould�be'�',Unli
requirements would�be known and there is no*longer redevelo'prnent funds
' � � � sales price would likely_besubi3tantially';lower,than,$3.10�millian � '_.' _ -.,s4°�'a
Revenues Generated by Property and Contractual Requirements
Annual Revenues None _
_qts-
H
Genera 6'
X
Contractual Purchase and Sale Agreement(Appendix U)
Requirements
History of Environmental Contamination or Remediation Efforts M� isitoryTbt 10_"
The
"Iha�-6j4CpM2.,,repprs%c h;'par&eI0PAwere;1imit&d 6scop-ei�d,LL6t0 the
rviioriffi6i4aI operating Stor� 6 the.site One plume wag�f6bhd,fr6Kt ,Contamination Y)raJ4P,",
,:S"uc'c"e-g,sor,Agency,ipiaced,$200 000-�in'�gh��'es'6edw�,Account�:,�,,�!,�HoWey!�,:,:�there
g properties'onosurrouncin— , eUe-prope,,ie
was no way umei eak0p _R
................
Successor Agencyhas.obtained
_fr6'ffi!th'at,§ir@IL: rrie1 the surroun ing W
d 14�Wge,aO
pa, age i"plU 6
�yas.approved by D&)�:,:�Ae policyQZexpi4ln 201&,��Theme
premiumo
orany-o ume,s, d
ivel6peris4espons D 0 --t t�-!w found e .. ..........A,r-
�ible other plumes a ,
� �~ ��property and leakages from those plumes Asia resulf��the D'evelope_r,�was
�` -.� ��equi�ed 6y the PSA to obtain an insurance policy;for$2 5 million to cover
Remediation Efforts Will occur when the building is demolished by the Developer.
_�- , IV WM='
W
d6inpl:&ddS'tud'ies,2-` hi's'e"�1 a"n'd"limited-Phase�
�_ � :reportsA( p!!Ektp
Transit-Oriented Development&Advancement of Agency Planning Objectives
Agency Planning This property is noted in the former Agency's latest Implementation Plan
Objectives (Appendix E). The former Agency acquired the 7872 Edinger Avenue
parcel to combine with the adjacent Agency-owned properties in 2009. In
2009, the former Agency also prepared a RFQ for the development of a
hotel at the southeast corner of Edinger Avenue and Parkside Lane. This
hotel site could achieve a high quality nationally branded hotel consisting of
approximately 120 to 150 rooms with amenities that would make the hotel
an attractive lodging option in the central region of Orange County.
As stated in the most recent Implementation Plan, the project will meet the
following planning goals:
• Eliminate and prevent the spread of conditions of blight.
• Expand the commercial base of the Project Area.
• Improve public facilities and public infrastructure.
March 4, 2015 Page 28
Amended Long Mange Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington reach
■ Promote local job opportunities.
■ Implement design and use standards to assure high aesthetic and
environmental quality, and provide unity and integrity to developments within
the Project Area.
■ Remove impediments to land disposition and development through the
assembly of property into reasonably sized and shaped parcels served by
improved infrastructure and public facilities.
■ Recycle and/or develop underutilized parcels to accommodate higher and
better economic uses while enhancing the City's financial resources.
Brief History of Previous Development Proposals and Activities
The former Agency issued an RFP onOctober 2009 in search of a hotel deelopeeto develop a high
,t
quality,Fselect brand4hofel on the site.with a min mum,;of 125"hotel rooms. Ayres Hotel Company Wasj
selected by staff however te''fo merAgency and Ayrescould not come to terms and theme propertyxwas
transferred from=the former Agency to the City for continued attempts at redevelopment
x iRMTx f
After several failed attempts with other,,-hotel developers, on January,°2T!2012 the City entered into a
PSA With Campbell Lodging to'purchase the pro perty•and develop the site asra uHyatt Place Hotel for
f similar brand hotelranging insize from 120Ato 140 roomst
w
On October 2 2012 Campbell Lodging Inc transferred its interest in the P$A to KPHL LLCM Since
then theee have beep;four amendments toxthe PSA(January 31 2012 15Amendrnent June 2012
2"d Amendment; and January 25�2013 3�d gmendrnent) On January 21 ;2014' the parties entered
into the 4 Amendment"Which extended the close of"escrow;deadhne to June 30 2015. The property
has been-reconveyedp,to the Successor Agency and remains-subject to ttheeterms cf the PSA The _=
extensiog allows additional time torprocessaproject eritrtlernents and anal'parcel ma'p as well as obtain a
Findingiof Comple ion and a certified LRPMP m fro the DOF° The"sales price is substantiated by any
appraisal review by Nagasaki&Associates dated January 9 2012 that valued the parcels
mill�on�ta$3 50 rn�ll�onx t -
The prop"rty is�fully entitled and the developer has the�financing in place Once the LRPMP has been� -
approved by DOF the_sale can take_-place immediately � __� _� _ ..�{
Recommendation for Disposition
Other Liquidation t The parcels WillAbe�held by the Successor Agency until the sale-oft;' k
w peoperty_s,closed perth'e PSA;'Which is estimated to 6e June2015
Implementation Plan The Successor Agency will request that the Oversight Board ratify and
affirm the PSA and will re-submit to Department of Finance as a part of this
Long Range Property Management Plan. The$3.10 million in sales
proceeds, set in the PSA and substantiated by the appraisal, will be
distributed to the Taxing Entities to the extent required by law.
March 4,2015 Page 29
Amended Long Range Property Management Plan
Successor Agency to the former Redevelopment Agency of the City of Huntington Beach
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March 4,2015 Page 30
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RESOLUTION NO. 2015-05
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
A
AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH APPROVING THE AMENDED LONG'RANGE
PROPERTY MANAGEMENT PLAN PREPARED PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34191.5
t
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"); andJ,�
o`
Assembly Bill No. XI 26 (2011-2012 1" Ex. Sess'j ("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
i
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 1484", 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 148`4, 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
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Oversight Borard Reso. 2015-05
Pursuant to H&S Code Section 34191.5(a) of the Dissolution Act, upon the issu ce of
the Finding of Completion to the Successor Agency, a Community Redevelopment roperty
Trust Fund ("Trust") will be established to serve as the repository of certain real prop ies of the
former Redevelopment Agency that are identified in the Due Diligence Reviews b 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, onZe 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 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 folloy6ng 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 s)i°all be transferred to the Trust,
unless such a property is subject to the requirements of any exxi mg 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, w�iliout limitation, the date of and purpose
for acquisition, value of property, applicable zonin , any property revenues and contractual
requirements for disposition of same, history of envi onmental issues and any related studies and
remediation efforts, potential for transit-oriented development and advancement of planning
objectives of the Successor Agency, and history Y1 previous development proposals and activity;
and (2) address the use or disposition of all pro erties in the Trust, including (i) the retention of
such property for governmental use pursuant o H&S Code Section 34181(a) of the Dissolution
Act, (ii) the retention of such property for f ure 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 prepa d a proposed LRPMP ("LRPMP") for consideration by the
Oversight Board and the DOF. T e LRPMP includes 13 parcels comprising seven properties,
namely:
Property Name Parcel Number on Inventory
Surf Museum 1
Downtown Alley 2
Skate Park 3
Westminster Parcel> 4
Waterfront Hyatt Regency Hotel 5
Waterfront HiltdHotel/Parcel C 6,7
Edinger Hotel 8, 9, 10, 11, 12, 1.3; and
On Novembe�3, 2014, the Successor Agency approved the proposed LRPMP; and
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Oversight Board Reso. 2015-05
On November 5, 2014, the Oversight Board reviewed an approved the LRPM which t
was then sent to DOF on November 7, 2014. On March 3, 2015, the Successor Agenc, received
correspondence from DOF regarding modifications to the LRPMP; and
The Successor Agency prepared a proposed Amended LRPMP to address the
modifications requested by DOF ("Amended LRPMP") for considi ration by the"versight Board
and the DOF. The Amended LRPMP includes the same 13 parceI s comprising seven properties
as contained in the LRPMP and includes non-substantive changes requested ley DOF; and
The re Amended LRPMP is attached to the Staff Re ort "pared for this Agenda
proposed � p pip g
Item, and is presented to the Oversight Board for review and approval; aid
For each of the properties, the Amended LRPMP includes alof 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 /I f
The Edinger Hotel property is proposed to be sold So 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 by7 and among the Successor Agency,
Miramar, and the City of Huntington Beach ("Agreeme tY); and
In accordance with the appraised value of thedinger Hotel property, as supported by an
appraisal dated January 9, 2012, attached to the Amended LRPMP, the "Purchase Price" for the
Edinger Hotel property is $3,100,000; and
The anticipated sale proceeds from th 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 341.91.5(c)(2)(B) of the Dissolution Act; and
The proposed Agreement will be considered for approval by the Oversight Board at the
same meeting as the Oversight Boar l s consideration of the proposed Amended LRPMP. The
proposed Agreement will likewise,;be submitted to the DOF for review concurrently with the
proposed Amended LRPMP if approved by the Oversight Board; and
Pursuant to H&S Code Section 34191.3 of the Dissolution Act, once the Amended
LRPMP is approved by the �I�`OF, the Amended LRPMP shall govern, and supersede all other
provisions of the DissolutiOTk``Act relating to, the disposition and use of the properties; and
t
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
i
"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 Amended LRPMP, along with their respective
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Oversight Board Reso. 2015-05
contractual agreements, have been reviewed and analyzed pursuant to CEQA and ieir required
environmental documents have been prepared, circulated and approved/ce ified by the
appropriate lead agency; and
All of the prerequisites with respect to the approval of this Resolution, ave been met.
NOW, THEREFORE, the Oversight Board of the Succe sor Agency to the
Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows:
1. The Oversight Board hereby determines that the for going recitals are true and
correct. Z
2. The Oversight Board hereby approves the Amended Long Range Property
Management Plan ("Amended LRPMP"), substantially in thform attached to the Staff Report
prepared for this Agenda Item.
3. The Oversight Board hereby authorizesyand directs the Executive Director, or
designee, of the Successor Agency to remit to the Oran e County Auditor-Controller's Office for
distribution to the taxing entities in accordance with 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 thorizes and directs the Executive Director, or
designee, of the Successor Agency to: (i) submit the Amended LRPMP, as approved by the
Oversight Board, to the California Department of Finance ("DOF") electronically in PDF format
and to the Orange County Auditor-Contioller; (ii) post a copy of the Amended LRPMP, as
approved by the Oversight Board, on tt e Successor Agency's internet website; (iii) revise the
Amended LRPMP and make such changes and amendments as necessary, before official
submittal of the Amended LRPMP to he DOF, in order to complete the Amended LRPMP in the
manner provided by the DOF ai o conform the Amended LRPMP to the form or format as
prescribed by the DOF; (iv) make non-substantive changes and amendments to the Amended
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 ingfruments 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, incl Ring, 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" far' 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 indire4hysical change in the environment, per Section 15378(b)(5) of the Guidelines.
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Oversight Board Reso. 2015-05
7. The adoption of this Resolution is not intended to and shall not const' to a waiver
of any constitutional, legal or equitable rights that the Successor Agency or Overs' lit Board may
have to challenge, through any administrative or judicial proceedings, th/etiveness and/or
legality of all or any portion of the Dissolution Act, any determinations d or actions or
omissions to act by any public agency or government entity or division in lementation 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, Xandefenses 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 hot 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 Resolutio irrespective of the invalidity of any
particular portion of this Resolution. �o
9. This Resolution shall take effect upon t1le
date of its adoption.
PASSED AND ADOPTED by the Oveitsight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach at a meeting thereof held on the 5th day
of March, 2015.
Chairperson
REVIEWED AND APPROVED: INITIATED AND APPROVED:
Executive Director Deputy E tive birector
•APPROVED AS TO FORM
Board Counsel
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