HomeMy WebLinkAboutCredit for Debt Repayment for Lot AA (Restricted Wetlands) aI
Council/Agency Meeting Held: J/ -/6 -0 2—
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied
City Clerk's Sig tune
Council Meeting Date: November 18, 2002
Department ID Number: ED-02-36
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN-AND CITY COUNCIL/AGENCY
MEMBERS
SUBMITTED BY: RAY SILVER, City Administrator/Executive Director 026Y
PREPARED BY: DAVID C. BI G , Director of Economic Development/Deputy Executive
Director
SUBJECT: Approve Credit for Debt Repayment for Lot AA and Lot BB for
Acquisition Costs for the Waterfront Parcel
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: The Redevelopment Agency is requesting that the City approve a
credit for a debt repayment for its acquisition costs associated a portion of the Waterfront
project, specifically the Restricted Wetlands (Lot AA) and the buffer area (Lot BB). Mayer
Financial LLP is conveying Lot AA to the Redevelopment Agency and Lot BB to the City.
The amount of debt repayment is the proportionate share of the principal and accrued
interest charged by the City since the 44-acre property was transferred by the City in 1988.
City Council's approval will reduce the Agency's debt to the City for these costs.
Funding Source: No actual monetary cost; the amount of debt owned to the City by the
Redevelopment Agency will be reduced.
Recommended Action:
Move to:
1. Approve the debt repayment of $3,556,003 (principal & interest accrued as of
October 2002) from the Redevelopment Agency to the City and any additional
amount accrued to date for the Agency's acquisition costs associated with Lots AA &
BB of Tentative Tract Map 15549. <=_
1
Alternative Action(s): =+
-- -
1. Do not approve the debt repayment. `�-
E-13
REQUEST FOR CITY/REDEVELOPMENT AGENCY ACTION
MEETING DATE: November 18, 2002 DEPARTMENT ID NUMBER: ED-02-36
Analysis: The Redevelopment Agency is requesting that the City approve a credit for the
debt repayment of its acquisition costs associated with a portion of the Waterfront project,
specifically the Restricted Wetlands (Lot AA) and the buffer area (Lot BB).
A portion of the property, 1.002 acres, originally scheduled to be developed with single-family
homes by Mayer Financial, L.P. is subject to a conservation easement resulting from the
November 20, 2000 settlement between the Coastal Commission, the Redevelopment
Agency and Mayer. Mayer is required to reconvey this parcel (Lot AA of TTM 15549) to the
Redevelopment Agency pursuant to the Second Implementation Agreement to the Amended
and Restated Development Agreement, dated February 5, 2001. In May 2001, a License
Agreement between Mayer, the Agency, and the Huntington Beach Wetlands Conservancy
was approved to permit the Conservancy access to the restricted wetlands for maintenance
of this area. With Mayer's reconveyance of the parcel to the Agency, Mayer will no longer be
responsible for the maintenance. The Agency will extend the License Agreement with the
Conservancy to continue the wetland maintenance.
As part of the City's conditions of approval for the residential project, an additional 2.415
acres of land (Lot BB of TTM 15549) will be conveyed to the City with the recordation of Tract
Map to serve as a buffer area between the wetland portion and the Waterfront residential
development. The Homeowners Association will pay $30,000 annually to the City for the
buffer area maintenance.
In 1988, the Agency acquired the 44 acres from the City for the Waterfront project. At that
time, a debt of $22,400,000 was charged to the Agency and interest has accrued to
$23,389,912 as of October 2002. When the City accepts ownership of Lot BB of TTM 15549,
the City will need to credit the Agency for the proportionate share of the acquistion costs for
Lot BB as debt repayment. In regard to Lot AA, the Redevelopment Agency will endeavor to
sell the parcel for wetlands mitigation credits. However, if the Agency is unsuccessful, Lot
AA will be conveyed to the City. As such, it is appropriate to authorize a credit for this parcel
against Agency debt and accrued interest. If the Agency succeeds in selling the parcel, then
the General Fund would be the beneficiary of the net proceeds.
Parcel
Agency Lot AA (restricted wetland)
Lot BB (buffer area
Total:
Environmental Status: Not Applicable
Attachment(s):
Acres Proportion of 44 Value as of
acres October 2002
1.002 2.28% $1,042,761
2.415 5.49% $2,513,242
3.417 7.77% $3,556,003
G:\Carol\Administration\RCA\ED02-36.doc -2- 11/12/2002 9:19 AM
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