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HomeMy WebLinkAboutTransfer of Real Property and other Assets of the City of Hu -J, Council/Agency Meeting Held: Deferred/Continued to:— ) .Apjv LJ Conditionally Approved LJ Denied 4 0 CI Signatoe Council Meeting Date: 3/7/2011 Department ID Number: ED 11-12 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION SUBMITTED TO: Honorable Mayor/Chair and City Council/Redevelopment Agency Members SUBMITTED BY: Fred A. Wilson, City Manager/Executive Director PREPARED BY: Stanley Smalewitz, Director of Economic Development/Deputy Executive Director Lori Ann Farrell, Director of Finance SUBJECT: Approve Transfer of Real Property and other Assets of the City of Huntington Beach Redevelopment Agency to the City of Huntington Beach (s) Statement of issue, Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment] Statement of Issue: The City of Huntington Beach Redevelopment Agency owns certain land parcels, entered into leases and provided loans established through the normal activities of the Agency for the goal of eliminating blight, creating jobs, and housing. There is currently legislation pending within the State of California that may restrict or limit the complete repayment of Agency debt to the City totaling approximately $87,898,119 and/or having Agency assets diverted to the State. Therefore, the Agency has determined that it is appropriate and necessary at this time to transfer said real property and other cash assets to the City to ensure that the City will be able to continue to meet its obligations to complete red evelopment/affordab le housing projects and activities through use of said real property and cash assets. Funding Source: In total, the Redevelopment Agency is transferring a real property portfolio that has an estimated value of $71 million. Although the Agency intends to provide cash payments, through tax increment funds to fully repay all of the loans and advances (with interest) made by the City of Huntington Beach to the Agency for operations and projects within the Project Areas since 1982 (estimated at approximately $87,898,119 million as of this date), the loan repayment plan is not impaired by the State or held to be otherwise invalid, the City will receive cash loan payments (with interest) in the total owed amount of, in addition to the value of the transferred property and assets noted herein. LATE COMMUNICATION Recommended Action: Motion to: Meeting Date Agenda Item No Resolution No. 388 PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a at a joint meeting of the City Council and City of Huntington Beach Redevelopment Agency, held on the 7th day of March ,201 1. Chairm REVIEW7D AND APPROVED: INITIATED AND APPROVED: Exe t' e irector Deputy L&cutive DiOor APPROVED AS TO FORM: Age y Coun 1 10-2396.001/Redevelop Reso Transfer Redevelop Property (2) Res. No. 388 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, JOAN FLYNN, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at a regular meeting of said Redevelopment Agency held on March 07, 2011 and that it was so adopted by the following vote: AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman NOES: None ABSENT: None ABSTAIN: None CIV of the Redevelopme Agency of the City of Huntington Beach, CA ATTACHMENT #2 RESOLUTION NO. 2011-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH("CITY") APPROVING ACTIONS RELATED TO THE TRANSFER OF REAL PROPERTY AND OTHER ASSETS OF THE CITY OF HUNTINGTON BEACH REDEVELOPMENT AGENCY("AGENCY") TO THE CITY TO MEET EXISTING OBLIGATIONS SET FORTH IN THE COOPERATION AND OTHER AGREEMENTS AND TO ACCOMPLISH OTHER IMPORTANT PUBLIC PURPOSES WHEREAS, the City and the Agency have entered into a .number of Cooperation Agreements to continue the effort to redevelop, revitalize and/or eliminate blight in the various Huntington Beach Redevelopment Project Areas (together herein referred to as "Project Areas") to achieve the purposes and goals of the Project Areas, to repay debt to the City and to provide for affordable housing, as appropriate and as authorized by redevelopment law in effect at the time of approval of said agreements; The City Council hereby finds it necessary and appropriate to transfer the Real Property (as set forth below) and the Other Assets (as set forth below) of the Agency to the City at this time to allow the City Council to appropriately complete redevelopment projects and other related activities as set forth in above said agreements, and for the purpose of repayment of debt owed to the City for previous loans/advances to the Agency. The Agency previously determined that the property acquisitions were consistent with the General Plan because they were consistent with the Redevelopment Plan for the Project Area and authorized by said Plan, and that the transfer of said Real Property and Other Assets of the Agency is consistent with applicable redevelopment law which allows for the Agency to carry out the Redevelopment Project,to pay previously incurred indebtedness,to comply with Section 33333.8 of the California Health and Safety Code (for provision of affordable housing) and to enforce existing covenants, contracts or other obligations. Pursuant to Section 15301 of the California Code of Regulations (State CEQA Guidelines) the transfer of the Real Property and Other Assets contemplated in this resolution is exempt from environmental review under CEQA because the transfer will.result in a continuation of an existing facility involving no expansion of use and is therefore exempt from environmental review, and any future development for the Real Property or Other Assets will require separate environmental review. The transfer of such Real Property and Other Assets of the Agency to the City will accomplish the public purposes of the General Plan and implementing the Redevelopment Plan for the Project Area and achieving the goals and purposes of such Plan, sustaining the redevelopment accomplished by the implementation of the Plan, expanding and improving the community's supply of affordable housing, obtaining the benefits for the City of the municipal uses to which the real property and Other Assets will be put, enforcing the existing covenants, contracts and other obligations arising from said redevelopment projects, and carrying out and achieving the goals and purposes of the Cooperation Agreements between the City and the Agency. 10-2396.00i/city Reso Transfer Redevelop Property 3-7-11 (3) Resolution No. 2011-17 The transfer of the Real Property and Other Assets of the Agency to the City is expressly authorized by the Aid, Assistance and Cooperation provisions of the California Community Redevelopment law(Sections 33220 et seq. of the California Health and Safety Code), NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The above recitations are true and correct. 2. The City Council hereby approves and accepts the transfer of the Real Property and Other Assets noted below, for use by the City for municipal purposes consistent with all previously approved Cooperation, Reimbursement and Repayment Schedule Agreements and for ongoing efforts to redevelop, revitalize and/or eliminate blight in the Project Areas as authorized by redevelopment law in effect at the time of approval of said agreements, and/or for the purpose of repayment of debt owed to the City by the Redevelopment Agency for previously approved loans/advances to the Agency. The real property which is the subject of this Resolution are the parcels of real estate located in the City of Huntington Beach, County of Orange, State of California described as follows(Real Property): Surf Museum,411 Olive Ave. APN 024-147-01 $1,500,000 Main St. near PCH(remnant 10 ft wide walkway parcel near Abdelmuti project). APN 024-153-21 $1,500,000 Hilton and Hyatt,21500 and APN 024-251-01 & 024-252- 21100 PCH 01,and 024-252-02 $61,000,000 Vacant Land(NEC APN 142-081-06, 142-081- Parkside/Aldrich)and 7872 09,142-081-10,142-081-11, Edinger(Big O) 142-081-12, and 142-081-28 $3,400,000 Center Ave. near McFadden APN 142-073-03 $2,400,000 Gothard/Center(Westminster Parcel) APN 142-311-34 $660,000 18451 Patterson Lane APN 157-341-22 $235,000 The Other Assets which are the subject of this Resolution are the following described leases, promissory notes, agreements and other rights of the Agency to receive payment of funds and/or other consideration(Other Assets): 10-2396.00vcity Reso Transfer Redevelop Property 3-7-11 (3) Resolution No. 2011-17 Big O Tire—Lease with monthly payments Hilton Waterfront—Ground Lease Hyatt Waterfront—Ground Lease/Participation Rent Parcel C—Ground Lease Marketing and Visitor Bureau—Five Year Loan—Annual Repayments Auto Dealers Association—Reader Board Loan—Monthly Repayments Residual Receipts from the following Housing Projects: Emerald Cove 18191 Parkside Circle Five Points Senior Apts. 18651 Florida Avenue PSS/OCCHC 313 1 lth Street Sea Air Apartments 725-733 Utica Avenue Sher Lane Apt and Bridges 16112 Sher Lane Koledo IV/OCCHC 17411/17421 Koledo Lane Koledo V/OCCHC 17412 Koledo Lane Huntington Pointe/KDF 18992 Florida Street Bowen Court 1968-82 Lake Street Fountains Senior Apts 7200 Garden Glen Hermosa Vista Apts 15363/15425 Golden West Colette's Children's Home 7881 Glencoe Avenue Colette's Children's Home 7702 Cypress Avenue Jamboree I 17372 Koledo Lane Jamboree II 17362 Koledo Lane Jamboree III 17362 Jacqueline Lane Jamboree IV 17442 Koledo Lane Pacific Court 2200 Delaware Street Colette's Children's Home 17432-17442 Keelson 3. The City Manager or his/her written designee is hereby authorized to take all reasonable and necessary actions and sign on behalf of the City all reasonable and necessary documents first approved in writing by the City Attorney to implement and carry out the transfer of the Real Property and Other Assets from the Redevelopment Agency to the City. 4. The City Council authorizes the City Clerk to execute the Certificates of Acceptance of the Deeds for the transfer of ownership of the Real Property from the Agency to the City upon preparation and subject to prior written approval of the City Attorney. 10-2396.00vcity Reso Transfer Redevelop Property 3-7-11 (3) 1. Approve Resolution No. 388 "A Resolution of the City of Huntington Beach Redevelopment Agency, Approving Certain Actions Related to the Transfer of Real Property and Other Assets of the City of Huntington Beach Redevelopment Agency to the City of Huntington Beach to Meet Existing Obligations Set Forth in the Cooperation and other Agreements with the Agency and to Accomplish other Important Public Purposes"; 2. Approve Resolution No.2011-17 A Resolution of the City Council of the City of Huntington Beach, California, Approving Certain Actions Related to the Transfer of Real Property and Other Assets of the City of Huntington Beach Redevelopment Agency to the City of Huntington Beach to Meet Existing Obligations Set Forth in the Cooperation and other Agreements with the Agency and to Accomplish other Important Public Purposes; and 3. Authorize the City Manager/Executive Director and City Clerk/Agency Secretary to execute all related documents. Alternative Action(s): Do not approve Resolutions and direct staff as appropriate. REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: 3/7/2011 DEPARTMENT ID NUMBER: ED 11-12 Analysis: Since the first Redevelopment Project Area was approved in September 1982, the City of Huntington Beach Redevelopment Agency has served to eliminate blight and blighting influences, create jobs, create housing and revitalize the areas through program, projects and other redevelopment activities. Due to the Governor's proposal to eliminate Redevelopment Agencies and recent legislative actions, it is appropriate that the Agency use its authority to pay previously incurred indebtedness and transfer real property described below and leases/loans described below of the Agency to the City to allow the City Council to appropriately complete redevelopment projects and other related activities. In addition, it is the fiduciary responsibility of the Agency to repay debt owed to the City for previous loans/advances to the Agency. The Agency previously determined that the property acquisitions were consistent with the General Plan because they were consistent with the Redevelopment Plan for the Project Areas and authorized by said Plan, and that the transfer of said Real Property and Other Assets of the Agency is consistent with applicable redevelopment law which allows for the Agency to carry out the Redevelopment Project, to pay previously incurred indebtedness, to comply with Section 33333.8 of the California Health and Safety Code (for provision of affordable housing) and to enforce existing covenants, contracts or other obligations. Following is a list of the real property and other assets that will be transferred by the Redevelopment Agency to the City, and accepted by the City to complete activities set forth in the agreements and benefit the general public: Real Property Description Assessor's Parcel Number Surf Museum, 411 Olive Ave., APN 024-147-01 Main St. near PCH (remnant 10 foot APN 024-153-21 wide walkway parcel near Abdelmuti project). APN 024-251-01 & 024-252- Hilton/Hyatt/C, 21500 and 21100 PCH 01,and 024-252-02 APN 142-081-06, 142-081- Vacant Land (NEC Parkside/Aldrich) 09,142-081-10,142-081-11, and 7872 Edinger (Big O) 142-081-12, and 142-081-28 Center Ave. near McFadden APN 142-073-03 Gothard/ Center (Westminster Parcel) APN 142-311-34 18451 Patterson Lane APN 157-341-22 -2- 3/7/2011 10:39 AM REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: 3/7/2011 DEPARTMENT ID NUMBER: ED 11-12 Leases Big O Tire — Lease with monthly payments Hilton Waterfront— Ground Lease Hyatt Waterfront— Ground Lease/Participation Rent Parcel C — Ground Lease Marketing and Visitor Bureau — Five Year Loan —Annual Repayments Auto Dealers Association — Reader Board Loan — Monthly Repayments Residual Receipts from the following Housing Projects Emerald Cove 18191 Parkside Circle Five Points Senior Apts. 18651 Florida Avenue Project Self Sufficiency/OCCHC 313 11th Street Sea Air Apartments 725-733 Utica Avenue Sher Lane Apt and Bridges 16112 Sher Lane Koledo IV/ OCCHC 17411/17421 Koledo Lane Koledo V/ OCCHC 17412 Koledo Lane Huntington Pointe/KDF 18992 Florida Street Bowen Court 1968-82 Lake Street The Fountains Senior Apts 7200 Garden Glen Hermosa Vista Apts 15363/15425 Golden West Colette's Children's Home 7881 Glencoe Avenue Colette's Children's Home 7702 Cypress Avenue Jamboree 1 17372 Koledo Lane Jamboree II 17362 Koledo Lane Jamboree III 17362 Jacqueline Lane Jamboree IV 17442 Koledo Lane Pacific Court 2200 Delaware Street Colette's Children's Home 17432-17442 Keelson It is also recommended by staff that the balance of funds within the Agency General Tax Increment and Low/Mod fund accounts be transferred to the City to repay debt owed to the City and/or pay the infrastructure and housing projects listed in the Cooperation Agreement approved on January 28, 2011. Strategic Plan Goal: Maintain financial viability and our reserves Environmental Status: The action to transfer the subject property and assets to the City is exempt from environmental review under CEQA pursuant to Section 15061 (b)(3). The transfer of property will result in a continuation of existing facilities involving no change of use and does not have the potential for causing a significant effect on the environment. -3- 3/7/2011 10:39 AM REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING ®ATE: 3/7/2011 DEPARTMENT I® NUMBER: ED 11-12 Attachment(s): i ion 1. Resolution No. 3gg "A Resolution of the City of Huntington Beach Redevelopment Agency, Approving Certain Actions Related to the Transfer of Real Property and Other Assets of the City of Huntington Beach Redevelopment Agency to the City of Huntington Beach to Meet Existing Obligations Set Forth in the Cooperation and other Agreements with the Agency and to Accomplish other Important Public Purposes" 2 Resolution N02011-17A Resolution of the City Council of the City of Huntington Beach, California, Approving Certain Actions Related to the Transfer of Real Property and Other Assets of the City of Huntington Beach Redevelopment Agency to the City of Huntington Beach to Meet Existing Obligations Set Forth in the Cooperation and other Agreements with the Agency and to Accomplish other Important Public Purposes" -4- 3/7/2011 11:35 AM ATTACHMENT # 1 RESOLUTION NO. 388 A RESOLUTION OF THE CITY OF HUNTINGTON BEACH REDEVELOPMENT AGENCY("AGENCY")APPROVING CERTAIN ACTIONS .RELATED TO THE TRANSFER OF REAL PROPERTY AND OTHER ASSETS OF THE AGENCY TO THE CITY OF HUNTINGTON BEACH("CITY")TO MEET EXISTING OBLIGATIONS SET FORTH IN THE COOPERATION AND OTHER AGREEMENTS WITH THE AGENCY AND TO ACCOMPLISH OTHER IMPORTANT PUBLIC PURPOSES WHEREAS, the City and the Agency have entered into certain Cooperation Agreements to continue the effort to redevelop, revitalize and/or eliminate blight in the various Huntington Beach Redevelopment Project Areas (together herein referred to as "Project Areas") to achieve the purposes and goals of the Project Areas, to repay debt to the City and to provide for affordable housing, as appropriate and as authorized by redevelopment law in effect at the time of approval of said agreements; The Agency hereby finds it necessary and appropriate to transfer the Real Property (as set forth below) and the Other Assets (as set forth below)of the Agency to the City at this time to allow the City Council to appropriately complete redevelopment projects and other related activities as set forth in above said agreements, and for the purpose of repayment of debt owed to the City for previous loans/advances to the Agency. The Agency previously determined that the property acquisitions were consistent with the General Plan because they were consistent with the Redevelopment Plan for the Project Area and authorized by said Plan, and that the transfer of said Real Property and Other Assets of the Agency is consistent with applicable redevelopment law which allows for the Agency to carry out the Redevelopment Project,to pay previously incurred indebtedness, to comply with Section 33333.8 of the California Health and Safety Code (for provision of affordable housing) and to enforce existing covenants,contracts or other obligations. Pursuant to Section 15301 of the California Code of Regulations (State CEQA Guidelines) the transfer of the Real Property and Other Assets contemplated in this resolution is exempt from environmental review under CEQA because the transfer will result in a continuation of an existing facility involving no expansion of use and is therefore exempt from environmental review, and any future development for the Real Property or Other Assets will require separate environmental review. The transfer of such Real Property and Other Assets of the Agency to the City will accomplish the public purposes of implementing the Redevelopment Plan for the Project Area and achieving the goals and purposes of such Plan, sustaining the redevelopment accomplished by the implementation of the Plan, expanding and improving the community's supply of affordable housing, obtaining the benefits for the City of the municipal uses to which the real property and Other Assets will be put, enforcing the existing covenants, contracts and other obligations arising from said redevelopment projects, and carrying out and achieving the goals and purposes of the Cooperation Agreements between the City and the Agency. 10-2396.001/Reaevelop Reso Transfer Redevelop Property (2) Resolution No. 388 The transfer of the Real Property and Other Assets of the Agency to the City is expressly authorized by the Aid, Assistance and Cooperation provisions of the California Community Redevelopment law(Sections 33220 et seq. of the California Health and Safety Code). NOW, THEREFORE,the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. The above recitations are true and correct. 2. The Agency hereby approves and accepts the transfer of the Real Property and Other Assets noted below, for use by the City for municipal purposes consistent with all previously approved Cooperation, Reimbursement and Repayment Schedule Agreements and for ongoing efforts to redevelop, revitalize and/or eliminate blight in the Project Areas as authorized by redevelopment law in effect at the time of approval of said agreements, and/or for the purpose of repayment of debt owed to the City by the Redevelopment Agency for previously approved loans/advances to the Agency. The real property which is the subject of this Resolution are the parcels of real estate located in the City of Huntington Beach, County of Orange, State of California described as follows (Real Property): Surf Museum,411 Olive Ave. APN 024-147-01 $1,500,000 Main St. near PCH(remnant 10 ft wide walkway parcel near Abdelmuti project). APN 024-153-21 $1,500,000 Hilton and Hyatt,21500 and APN 024-251-01 &024-252- 21100 PCH 01,and 024-252-02 $61,000,000 Vacant Land(NEC APN 142-081-06, 142-081- Parkside/Aldrich)and 7872 09,142-081-10,142-081-11, Edinger/Big O 142-081-12,and 142-081-28 $3,400,000 Center Ave.near McFadden APN 142-073-03 $2,400,000 Gothard/Center(Westminster Parcel) APN 142-311-34 $660,000 18451 Patterson Lane APN 157-341-22 $235,000 The Other Assets which are the subject of this Resolution are the following described leases, promissory notes, agreements and other rights of the Agency to receive payment of funds and/or other consideration(Other Assets): 10-2396.001/Redeve(op Reso Transfer Redevelop Property(2) Resolution No. 388 Big O Tire—Lease with monthly payments Hilton Waterfront—Ground Lease Hyatt Waterfront—Ground Lease/Participation Rent Parcel C—Ground Lease Marketing and Visitor Bureau—Five Year Loan—Annual Repayments Auto Dealers Association—Reader Board Loan—Monthly Repayments Residual Receipts from the following Housing Projects: Emerald Cove 18191 Parkside Circle Five Points Senior Apts. 18651 Florida Avenue PSS/OCCHC 313 1 lth Street Sea Air Apartments 725-733 Utica Avenue Sher Lane Apt and Bridges 16112 Sher Lane Koledo IV/OCCHC 17411/17421 Koledo Lane Koledo V/OCCHC 17412 Koledo Lane Huntington Pointe/KDF 18992 Florida Street Bowen Court 1968-82 Lake Street Fountains Senior Apts 7200 Garden Glen Hermosa Vista Apts 15363/15425 Golden West Colette's Children's Home 7881 Glencoe Avenue Colette's Children's Home 7702 Cypress Avenue Jamboree I 17372 Koledo Lane Jamboree II 17362 Koledo Lane Jamboree III 17362 Jacqueline Lane Jamboree IV 17442 Koledo Lane Pacific Court 2200 Delaware Street Colette's Children's Home 17432-17442 Keelson 3. The Executive Director or written designee is hereby authorized to take all reasonable and necessary actions and sign on behalf of the Agency all reasonable and necessary documents first approved in writing by the Agency Counsel to implement and carry out the transfer of the Real Property and Other Assets from the Redevelopment Agency to the City. 4. The Agency authorizes the Secretary to execute the Certificates of Acceptance of the Deeds for the transfer of ownership of the Real Property from the Agency to the City upon preparation and subject to prior written approval of Agency Counsel. 10-2396.001/Reaevelop Reso Transfer Redevelop Property(2) Resolution No. 2011-17 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a joint meeting of the City Council and City of Huntington Beach Redevelopment Agency held on the 7 th day of March ,2011. REVIE D D APPROVED: INITIATED AND APPROVED: — . (� Jz" Ci a ger Director of Econo is De elopm t APPROVED AS TO FORM: ity Attorn y r 10-2396.001/city Reso Transfer Redevelop Property 3-7-11 (3) Res. No. 2011-17 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on March 07, 2011 by the following vote: AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman NOES: None ABSENT: None ABSTAIN: None Cit lerk and ex-officio (Mrk of the City Council of the City of Huntington Beach, California FIZEDEVELOPM ENT ACTIONS Approve Transfer of Real Property and other Assets of the Agency to City Approve Creation of a Housing Authority Legislation On March 3rd, the State Budget Conference Committee voted to approve the Governor's proposal to eliminate redevelopment agencies. The vote is scheduled for March loth by both the Assembly and Senate members. (�'2csc�;-moo Deft— Agenda Item No. /� � /�L � i Agency Debi ^ , The Agency must have debt to be able to receive Tax Increment from the County. Since 1983, the Agency has incurred debt (i.e. borred) from the City and special funds. This debt has been for capital projects within the Project Area and staffing Agency Assets If the bill is passed, Agency Bonds and DDA's/OPA's would be the States responsibility. However, the City's legal debt, may not be honored/repaid. Therefore, the Agency assets of real property and leases are being transferred to the City to pay off the debt owed to it 2 Housing Authority ; If Agencies are eliminated, the 20% housing set aside will go to the County Housing Authority. A City Housing Authority would instead allow us to maintain our housing funds and continue activities such as the First Time Homebuyers Program. 3