HomeMy WebLinkAboutCC RES 10-04RESOLUTION NO. 10-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN MAKING FINDINGS PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33433 FOR THE SALE OF
PROPERTIES PURCHASED BY THE TUSTIN
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY
OF TUSTIN USING HOUSING SET ASIDE TAX
INCREMENT MONEYS LOCATED AT 14741 AND 14751
NEWPORT AVENUE WITHIN THE SOUTH CENTRAL
REDEVELOPMENT PROJECT AREA AND AUTHORIZING
THE PURCHASE OF THE SUBJECT PROPERTIES BY
THE CITY OF TUSTIN.
The City of Tustin does hereby resolve as follows:
The City of Tustin ("City") finds and determines as follows:
A. The Tustin Community Redevelopment Agency ("Agency")
currently owns residential property at 14741 and 14751 Newport
Boulevard ("Subject Properties") which was originally purchased on
January 7, 2000 using moneys from the Low and Moderate Income
Housing Fund. In accord with California Community Redevelopment Law
and more specifically Section 33334.16 of the Health and Safety Code,
properties not developed for persons and families of low and moderate
income within ten (10) years from the date of acquisition shall be sold with
the moneys from the sale, less reimbursement to the Agency for the cost
of the sale, deposited in the Agency's Low and Moderate Income Housing
Fund.
B. Pursuant to the California Community Redevelopment Law (Health
and Safety Code Section 33000 et seq.), the Agency is engaged in
implementation of the Redevelopment Plan (the "Redevelopment Plan")
for the South Central Project Area Redevelopment Project (the "South
Central Redevelopment Project"); and,
C. In order to comply with provisions of Section 33334.16 of the
Health and Safety Code and to implement the Redevelopment Plan, the
Agency proposes to sell the Subject Properties (the "Project") to the City
for a public purpose pursuant to which the City would utilize the Subject
Properties for required right-of-way at the northwest corner of Newport
Avenue and Sycamore Avenue for the proposed future improvements to
Newport Avenue ("Newport Avenue Improvements") and then dispose of
the remaining property not needed for right-of-way purposes for future
redevelopment consistent with the Redevelopment Plan; and
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Page 1 of 5
D. In its current condition, the Subject Properties are a blighting F
influence on the Redevelopment Project Area; and,
E. Ultimately the Project will remove the blighting influence described
above and provide required right-of-way for the construction of Newport
Avenue Improvements and any remaining property not needed for right-of-
way will be utilized for redevelopment purposes; and
F. Pursuant to Section 33433 of the Health and Safety Code, the
Agency is authorized to sell or lease property acquired in whole or part
from tax increment moneys for development pursuant to the
Redevelopment Plan, provided the sale or lease is first approved by the
legislative body by resolution after a public hearing; and
G. Pursuant to Section 33433(a)(1) of the Health and Safety Code, a
Notice of the time and place of the public hearing was published in a
newspaper of general circulation in the community at least once per week
for at least two successive weeks, as specified in Section 6066 of the
Government Code, prior to the hearing; and,
H. Pursuant to Section 33433(a)(2)(A) of the Health and Safety Code
the Agency has prepared and made available for public inspection a report
no later than the first notice of the public hearing and, pursuant to Section
33433(a)(2)(B) of the Health and Safety Code, the City Council has
reviewed and approved a report which contains the following: _r
A copy of the proposed Agency resolution authorizing the
sale of the Subject Properties and a copy of the proposed
City Council resolution agreeing to purchase the Subject
Properties.
ii. A summary which describes the following: (a) The cost of the
agreement to the agency, including land acquisition costs,
clearance costs, relocation costs, the costs of any
improvements to be provided by the agency, plus the
expected interest on any loans or bonds to finance the
agreements; and, (b) The estimated value of the interest to
be conveyed, determined at the highest and best uses
permitted under the plan; and, (c) The estimated value of the
interest to be conveyed, determined at the use and with the
conditions, covenants, and development costs required by
the sale. An explanation of the sale price, if determined to be
less than the fair market value of the interest to be
conveyed, at the highest and best use consistent with the
redevelopment plan, including an explanation of the reasons
for the difference; and, (d) An explanation of why the sale of
Resolution 10-04
Page 2 of 5
the property will assist in the elimination of blight, with
reference to all supporting facts and materials relied upon in
making this explanation; and,
Pursuant to Section 33334.16 of the California Community
Redevelopment Law the subject properties were unable to be
developed as Low and Moderate Income Housing during the ten
year period from the date of acquisition because of the size and
configuration of the Subject Properties which were impacted by
right-of-way necessary for Newport Avenue Improvements and the
inability of the Agency to feasibly combine the Subject Properties
with adjacent properties to facilitate new Low and Moderate Income
Housing; and,
J. The Agency has identified that a portion of the Subject Properties
to be sold to the City are required for necessary right-of-way for Newport
Avenue Improvements, and the Newport Avenue Improvements are
identified in the South Central Redevelopment Plan, in the "Third Five -
Year Implementation Plan for the Town Center and South Central
Redevelopment Project Areas" ("Implementation Plan"), and in the City of
Tustin's Seven Year Capital Improvement Program adopted in Fiscal Year
2009-2010; and,
K. The Agency's sale of the Subject Properties to the City will assist in
the elimination of blight and is consistent with the Implementation Plan.
Newport Avenue Improvements have been identified in the
Implementation Plan as a critical and necessary public improvement in the
elimination of blight and in relieving traffic congestion, providing better
access for emergency services, and increasing traffic capacity. After
accommodation of any necessary right-of-way, any remaining portions of
the Subject Property not needed for right-of-way will be utilized for
redevelopment purposes which will also eliminate blight in the
Redevelopment Project Area and which is also consistent with the
Implementation Plan; and,
L. The Subject Properties are currently owned by the Tustin
Community Redevelopment Agency and are located within the City's
boundaries and within the South Central Redevelopment Project Area;
and,
M. Without the Agency selling the Subject Properties to the City to be
utilized for the Newport Avenue Improvements, implementation of the
South Central Redevelopment Project will be negatively impacted in that
the inability to construct full right-of-way improvements and ultimately
develop any remaining portions of the Subject Properties not needed for
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right-of-way purposes will preclude the full implementation of the South
Central Redevelopment Plan.
N. The resolution and conditions of sale for the Subject Properties to
the City contain all of the terms, covenants, conditions, and restrictions,
obligations and provisions required by state and local law; and
O. The Agency has duly considered all of the terms and conditions of
the proposed sale of the Subject Properties to the City and believes that
the Newport Avenue Project is in the best interests of the City and the
health, safety, morals and welfare of its residents, and is in accord with the
public purposes and provisions of applicable state and local law and
requirements; and
P. Pursuant to Section 33433 of the Health and Safety Code, the
Agency and Tustin City Council have held a noticed public hearing on the
proposed sale of the Subject Properties to the City of Tustin, at which
public hearing all oral and written testimony to the proposed sale in
connection therewith and to any other matters pertaining to the transaction
were received and heard.
Q. In accordance with Section 33433 of the Community
Redevelopment Law, the sale of the Subject Properties to the City will
benefit the South Central Redevelopment Project Area and the
consideration for the Subject Properties by the City is not less than the fair
reuse value at the use and with the covenants and conditions and
development costs authorized by the sale in the Agency and City Council
resolutions authorizing such sale.
II. The City hereby authorizes the Agency's sale of the Subject Properties to the
City and authorizes the City Manager and/or Assistant City Manager to execute any
necessary documents and to take all actions necessary or desirable to implement the
Agency's sale and City's purchase of the Subject Properties including the execution of
all related documents and instruments, and upon satisfaction of all conditions and
obligations of the City thereto and pursuant to this Resolution, authorizes the Agency to
transfer the Subject Properties to the City, subject to the terms, conditions, and
covenants contained in Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on
the 19th day of January 2010.
Resolution 10-04
Page 4 of 5
ATrES'r:
; �3a1�
ARM] Q
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Pamela Stoker, City Clerk and ex -officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No. 10-04 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of
January, 2010, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED
COUNCILMEMBER ABSENT:
M .City Clerk
_
Resolution 10-04
Page 5 of 5
Amante, Nielsen, Davert, Palmer, Gavello (5)
None (0)
None (0)
None (0)
EXHIBIT A
RESOLUTION NO. 10-04
Agreement
Between
The Tustin Community Redevelopment Agency ("Agency")
And City of Tustin ("City")
Including Terms, Conditions, And
Covenants of the Agency's Sale of Property Located at 14741 and 14751 Newport
Avenue, Tustin
to the City
This Agreement is entered into this day of January 19, 2010, by and among the
Tustin Community Redevelopment Agency (the "Agency") and the City of Tustin (the
"City") , also collectively referred to as the "Parties".
1. Property To Be Conveyed. The Agency agrees to sell the properties located at
14741 AND 14751 NEWPORT AVENUE ("Subject Properties") to the City and the
City agrees to purchase the Subject Properties from Seller.
2. Purchase Price. As consideration for the sale of the . Subject Properties by the
Agency to the City, the City shall pay to the City the sum of $533,000 less Agency costs
of the sale including but not limited to transaction expenses as identified in Section 5.1.
(the "Purchase Price"), subject to the deposit of said Purchase Price into the Agency's
Low and Moderate Income Housing Fund.
3. Property Sold "As -Is". The Subject Properties shall be sold to City without
investigation. City shall recognize that the Agency would not sell the Subject Properties
except on an "AS -IS, WHERE IS, WITH ALL FAULTS" basis, and the City
acknowledges that the Agency has made no representation or warranties of any kind
whatsoever, either express or implied in connection with any matters with respect to the
Subject Properties, or any portion thereof. The City acknowledges that it is buying the
property in an "AS -IS, WHERE IS, WITH ALL FAULT" condition, in its present state
and condition and with all faults, if any.
4. Closing of Transaction.
4.1. Time Frame for Completion of Sale. Three business days after satisfaction of
Agency and City Conditions to Closing of the proposed transaction, the Parties shall
conclude the sale and purchase transaction for the Subject Properties. The date may be
extended by mutual consent of the Parties.
4.2. Conditions precedent to Closing of Transaction. Each of the following conditions
shall be precedent conditions prior to completion of the sale of the Subject Properties.
a. The Agency shall have prepared and delivered a Quitclaim Deed, executed by the
Agency, acknowledged and agreed to by the City and in recordable form;
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b. A federal "FIRPTA" Affidavit executed by the Agency, certifying that the
Agency is not a "foreign person" under the "Foreign Investment in Real Property
Tax Act".
c. California's Real Estate Withholding Exemption Certificate Form 597-W
be completed and filed;
d. City's delivery of Purchase Price: Other Costs. No later than two days prior to the
Closing Date, the City shall deliver to the Agency the Purchase Price less all
Agency costs associated with the transaction;
e. City shall have submitted to Agency evidence of insurance policies required by
"the City for fire and casualty for the Subject Properties pursuant to Exhibit A.
City shall procure and maintain, at its cost and expense, and furnish or cause to
be furnished to the Agency, evidence of commercial general liability insurance,
workers compensation insurance, and property insurance in the amounts as
determined necessary by the City's Risk Manager. Said policy shall also name
the Tustin Community Redevelopment Agency as additional insured given its
responsibilities for continuing Property Management of the Subject Properties.
5. Procedures for Conveyance of Subiect Properties.
5.1 City shall pay for all costs and expenses of the transaction to be subtracted from
the Purchase Price for the Subject Properties including but not limited to a) the cost and
premium for the City's ALTA Title Policy, showing the title in the Subject Properties
vested in the City after recordation of the Quitclaim Deed; b) all document recording fees
and costs; and, c) the costs of all City consultants and employees (including lawyers and
economic consultants engaged in concluding the transaction).
5.2 Possession. The Agency shall cause the Quitclaim Deed and other documents
required to be recorded by the terms of this transaction to be recorded with the County
Recorder's Office in the Official Records, obtain conformed copies thereto and distribute
same to the City and Agency.
5.3 Deliveries to City Upon Closing. The Agency agrees to deliver to City, on or
before Closing, the existing Rental Agreements on the Subject Properties which shall be
assigned to the City.
6. Scope of Development and Continuing Agency Involvement in
Development and Subsequent Disposition of the Subject Properties
6.1 Requirement to Develop the Subject Properties. The sale of the Subject
Properties to the City is intended to provide necessary right-of-way area for Newport
Avenue Improvements with any remaining portions of the Subject Properties not
necessary for the Newport Avenue Improvements to be utilized for redevelopment
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purposes. City shall agree to thereafter diligently prosecute to completion those tasks
necessary to accommodate the Newport Avenue Improvements, pursuant to all
governmental requirements, State and Federal Law. These tasks and actions shall
generally consist of the following:
a. Finalization of construction plans and related documents for Newport Avenue
Improvements including certification of actual right-of-way limits of the Newport
Avenue Improvements as they impact the Subject Properties and identification of
any remaining portions of the Subject Properties not necessary for the Newport
Avenue Improvements, including identification of any interim construction
easements that may be necessary across remaining portions of the Subject
Properties until completion of construction of Newport Avenue Improvements.
b. Completion of an HCD Relocation Plan for relocation of the 8 households
currently residing in the Subject Properties and provision of any necessary
relocation benefits, where applicable.
c. Demolition and clearance of existing site improvements on the Subject Properties
including structures and remaining concrete and asphalt paved surfaces.
d. Grading of necessary right-of-way and remaining portions of the property as
necessary for the Newport Avenue Improvements and other redevelopment
purposes for the remaining portions of the Subject Properties not needed for the
Newport Avenue Improvements.
e. Construct and complete construction of Newport Avenue Improvements.
f. Marketing and sale of the balance of the Subject Properties not necessary for
Newport Avenue Improvements for redevelopment purposes consistent with the
City's Zoning, General Plan, and the South Central Redevelopment Plan. The
City shall agree to cooperate and work closely with the Agency in the selection of
any potential development opportunity on the remaining portions of the Subject
Properties not needed for the Newport Avenue Improvements to ensure
consistency with Agency objectives, the South Central Redevelopment Plan and
South Central Project Area Implementation Plan.
6.2. Design Approval.
a. It shall be understood and agreed to by the City that the quality, character of
Newport Avenue Improvements and any development of remaining portions of
the Subject Properties not needed for Newport Avenue Improvements is of
particular importance to the Agency. City shall agree as the future owner of the
Subject Properties to grant the Agency as a right the reasonable review of
preliminary and entitlement plans and submissions. Upon submission to the
Agency, the Agency will endorse its approval and return to the City and such
approval shall be conclusively deemed to have been given unless within twenty
k]
(20) days after Agency's receipt of plans, the Agency gives notice of its
disapproval to the City specifying in reasonable detail each item that the Agency
disapproves of and the reasons for such disapproval. In the event of a
disapproval, City shall make changes in response to the Agency's review and
approval.
b. The City shall pay, or assign costs to an Agency approved transferee any fees and
or costs normally charged by the Agency in connection with and for any
application being reviewed by the Agency.
6.3 Ownership Transfer. The City represents and agrees that its undertaking
pursuant to its purchase of the Subject Properties is for the purposes of redevelopment
and is not for speculation in land holding. For such reason, City acknowledges and
agrees that no voluntary or involuntary successor in interest of the City shall effect any
total or partial ownership transfer of the Subject Properties, or any interest therein,
whether voluntary or involuntary, from the City to another party other than to the City as
part of any separate right-of-way Grant Deed, unless approved by the Tustin Community
Redevelopment Agency or for which the Agency expressly releases the City of any
transfer restrictions contained herein by written instrument.
6.4. Agency Property Management and Agency Rights of Access.
a. Upon sale of the Subject Properties to the City, City agrees to continue to engage
the Agency as the property manager for the Subject Properties which includes the
cost of staffing for such support and the Agency's hiring of outside property
management consultants, until such time as the Agency notifies the City in
writing that such property management role is no longer required. The Agency
will collect rents and any other miscellaneous revenue from the Subject Properties
(i.e. wash machine revenues, etc.) and pay for all Agency costs associated with
Agency's property management responsibilities including staff time, consultant
time, repairs and other expenses for managing the property including maintaining
necessary reserves and any collection losses. Within ninety days of the close of
each new fiscal year, any net operating income, less reserves not necessary for
expected and projected expenses by Agency in its property management for the
next fiscal year, as determined necessary by the Agency in its sole discretion, will
be disbursed by the Agency to the City.
b. Representatives from the Agency and its consultants shall have reasonable right to
access to all portions of the Subject Properties, without charges or fees, at normal
hours for purposes of the Agency's responsibilities identified herein.
6.5 Status Reports. City agrees to make oral and written reports at times requested by
the Agency advising Agency and/or its staff of all matters and studies being made
regarding the Subject Properties.
E!
7. Non -Discrimination and Equal 0wortunity.
7.1 Obligation to Refrain from Discrimination. The City covenants and agrees for
itself, its successors, its assigns and every successor in interest to the Subject Properties
or any part thereof, that there shall be no discrimination against or segregation of any
person, or group of persons, on account of race, color, creed, religion, sex, sexual
orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer,
use, occupancy, tenure or enjoyment of the Subject Properties nor shall the City itself or
any person claiming under or through it establish or permit any such practice or practices
of discrimination or segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees or vendees of the Subject
Properties.
7.2 Form of Nondiscrimination Clauses. All deeds, leases or contracts, including the
Quitclaim between the Agency and City shall contain or be subject to substantially the
following non-discrimination clauses:
a. In deeds: "The grantee herein covenants by and for itself, its successors and
assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of persons on
account of race, color, creed, religion, sex, sexual orientation, marital status,
national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the land herein conveyed, nor shall. the grantee itself or
any person claiming under or through it, establish or permit any such practice or
practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in
the land herein conveyed. The foregoing covenants shall run with the land."
b. In leases: "The lessee herein covenants by and for itself, its successors and
assigns, and all persons claiming under or through them, and this lease is made
and accepted upon and subject to the following conditions:
"That there shall be no discrimination against or segregation of any
person or group of persons, on account of race, color, creed, religion,
sex, sexual orientation, marital status, national origin or ancestry in the
leasing, subleasing, renting, transferring, use, occupancy, tenure or
enjoyment of the land herein leased, nor shall lessee itself, or any
person claiming under or through it, establish or permit such practice or
practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees,
sublessees, subtenants or vendees in the land herein leased."
c. In contracts: "There shall be no discrimination against, or segregation of any
person or group of persons on account of race, color, creed, religion, sex, sexual
orientation, marital status, national origin or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee
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itself or any person claiming under or through it, establish or permit any such
practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees of the land."
8. Deed Restrictions/Covenants Running with the Land. The obligations of the City
set forth in this Agreement are covenants running with the land and equitable servitudes
and shall be binding upon the City and all subsequent Assignees and Ownership
Transferees owning all or any portion of the Subject Properties, as applicable, for the
benefit of the Agency and the successors and assigns of the Agency. The Quitclaim Deed
shall provide that any future transfer or conveyance of the Subject Properties or any
portion thereof shall, unless and until released by the Agency in writing, include notice
of the covenants, conditions and restrictions contained herein. The Quitclaim Deed shall
convey the Subject Properties subject to terms, conditions, covenants and restrictions as
set forth in this Agreement specifically agreed to by the City in writing.
Executed on the date first above written.
ATTEST:
City Clerk
Pam Stoker
Approved as to Form:
Doug Holland
City Attorney
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Tustin Community Redevelopment Agency
("Agency" and "Seller")
William A. Huston
Executive Director
City of Tustin ("City" and "Buyer")
M-
City Manager