HomeMy WebLinkAbout06 LONG RANGE PROPERTY MANAGEMENT PLANAgenda Item 6
Reviewed:
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AGENDAT' City Manager
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Finance Director *W I a
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MEETING DATE: JANUARY 20, 2015
TO: JEFFREY C. PARKER, CITY MANAGER AND EXECUTIVE DIRECTOR
FROM: SUCCESSOR AGENCY
SUBJECT: LONG RANGE PROPERTY MANAGEMENT PLAN
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In accordance with Health and Safety Code ("HSC") Section 34191.5(b), the Successor
Agency to the Tustin Community Redevelopment Agency ("Successor Agency") has
prepared a Long Range Property Management Plan ("LRPMP") that addresses the
disposition and use of the real properties of the former Redevelopment Agency.
1. It is recommended the City Council approve the Successor Agency's Long Range
Property Management Plan and authorize the City Manager to approve minor non-
substantive changes to the Plan, if required by the Oversight Board of the Successor
Agency; and
2. It is recommended the City Council, acting as the Successor Agency, approve the
Successor Agency's Long Range Property Management Plan and authorize the
Executive Director to approve minor non-substantive changes to the Plan, if required
by the Oversight Board of the Successor Agency.
FISCAL IMPACT:
The cost to prepare the LRPMP is an administrative activity of the Successor Agency,
which is included in the FY 2014-2015 City Budget.
CORRELATION TO THE STRATEGIC PLAN:
The LRPMP addresses Goal B — Public Safety and Protection of Assets, creating a plan
to protect the City's public assets.
BACKGROUND:
On June 29, 2011, Assembly Bill X1 26 became effective, causing the dissolution and
wind down of all redevelopment agencies ("Dissolution Act"). All redevelopment
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Agenda Report
January 20, 2015
Page 2
agencies in California were dissolved as of February 1, 2012, and the Successor
Agency to the Tustin Community Redevelopment Agency became responsible for
winding down redevelopment activities in the City of Tustin. At the time of Dissolution,
the Tustin Housing Authority assumed all housing assets, including one affordable
housing ownership unit, of the former Redevelopment Agency. Pursuant to Health and
Safety Code ( "HSC ") Section 34177(e), the Successor Agency was required to dispose
of all non - housing assets and properties. At the time of the initial passage, the
disposition of properties lacked clear direction and appeared to require immediacy to
the sale of properties without regard to local plans for the properties or maximizing their
value.
The passage of Assembly Bill 1484 in June of 2012, added a provision to the
Dissolution Act providing successor agencies with direction on preparing a long range
property management plan, giving agencies the ability to retain properties for
governmental use or to prudently dispose of them. The long range property
management plan is to be prepared once the Successor Agency receives a Finding of
Completion ( "Finding "). On May 10, 2013, the Successor Agency remitted what it
believed to be its last remaining unencumbered funds to the Orange County Auditor -
Controller and on May 13, 2013, requested a Finding from DoF.
On July 3, 2013, DoF informed the Successor Agency that a Finding would not be
issued until after the Successor Agency remitted the principal and interest due on
December 1, 2013 for the December 31, 2008 Promissory Note between the City and
Successor Agency. DoF's failure to issue the required finding of completion is contrary
to the requirements under HSC Section 34179.7, including their failure to provide a
response within five business days of the Successor Agency's May 13th request. In
response, the City, the Successor Agency and the Tustin Housing Authority filed a
"Petition for Writ of Mandate and Complaint for Declaratory and Injunctive Relief' with
the Superior Court in Sacramento County.
On April 24, 2014, the Superior Court issued its ruling in the Petition under which a Writ
mandated DoF issue the Successor Agency its Finding, nunc pro tune as of May 15,
2013. On May 1, 2014, pursuant to the Writ issued by the Court, DoF issued the
Finding, effective May 15, 2013. Upon issuance of the Finding, staff and the City
Attorney initiated discussions with DoF regarding the Promissory Note.
On June 19, 2014, the City, the Successor Agency and the Tustin Housing Authority
filed a notice of appeal in response to other findings in the Petition. On July 8, 2014,
DoF filed a notice of cross - appeal to challenge the judgment that DoF had abused its
discretion in refusing to issue a Finding until the amount due under the Promissory Note
had been remitted.
Since May 2014, both parties have continued to work towards reaching an agreement
on the Promissory Note. On December 9, 2014, the City and DoF executed a
Promissory Note Settlement Agreement outlining the payment schedule for the City to
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January 20, 2015
Page 3
pay off the Note and DoF's promise to abandon or dismiss the cross-appeal. On
December 12, 2014, DoF filed an abandonment of the cross-appeal and on December
15, 2014 the abandonment became official.
With all matters regarding the Finding completely resolved, the Successor Agency has
prepared the LRPMP in accordance with HSC Section 34191.5 for City Council and
Successor Agency consideration and approval. HSC Section 34181(a) allows properties
owned by the former Redevelopment Agency and used for governmental purposes to
be transferred to the City. The Successor Agency owns and controls three (3)
properties (comprised of four (4) parcels): one property dedicated for future public right-
of-way for the Newport Avenue extension project; one property serving as a Respite
Park in Old Town; and one property — the Stevens Square Parking Structure — providing
public parking in Old Town, that have been identified for transfer to the City under the
governmental use designation. The former Redevelopment Agency does own any
properties designated for private development and the Successor Agency has prepared
the LRPMP accordingly.
Upon City Council and Successor Agency approval, the LRPMP will be submitted to the
Oversight Board of the Successor Agency to the Tustin Community Redevelopment
Agency on January 27, 2015 for their consideration. Pursuant to HSC Section 34181(a)
and 34191.5(b), the Oversight Board is required to approve the LRPMP prior to the
Successor Agency submitting the LRPMP to DoF for final approval. Staff will be
available to respond to any questions the City Council may have.
Jerry Craig
e
Economic. De lop ' nt& Housing Manager
Successor ncy I to the Tustin Community
Redevelopment Agency
Attachment: Long Range Property Management Plan
TUSTIN
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HISTORY
BUILDING OUR FUTURE
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Long -Range Property
Management Plan
Successor Agency to the Tustin Community
Redevelopment Agency
DOCSOC/1685420v2/200350 -0009
Introduction
Part 1.85, Division 24 of the California Health and Safety Code ( "Dissolution Law') as amended by
Assembly Bill 1484 (AB 1484), enacted and effective June 27, 2012, requires all Successor Agencies to
develop a Long -Range Property Management Plan (LRPMP) that governs the disposition and use of the
former redevelopment agency property held by the Successor Agency. The LRPMP must include an
inventory and site history of each of the former redevelopment agency -owned properties as well as a
plan for the future use or disposition of each site.
The LRPMP, when approved, will serve to determine and direct that each property is either:
1. Retained for governmental use, or
2. Retained for future development, or
3. Retained to fulfill an enforceable obligation, or
4. Sold.
This document serves as the LRPMP for the Successor Agency to the Tustin Community Redevelopment
Agency (Successor Agency).
Summary of Successor Agency Properties
The Successor Agency owns and controls three (3) properties (comprised of four (4) parcels) within the
City of Tustin (City). Each property will be discussed in greater detail in the "Property Inventory' section.
The properties are shown on the following table and map:
Address
APN
Lot Size
450 El Camino Real
401 - 622 -10
7,500 sq.ft.
74,500 sq. ft.
445 C Street
401 - 322 -40
(2 floors)
1021 Edinger Avenue
430 - 252 -05
95,832 sq. ft.
15012 Newport Avenue
430 - 252 -06
87,120 sq.ft.
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Property Inventory
1. 450 El Camino Real
- APN:401- 622 -10
- Acquisition Date: 12/30/1982
- Value at Purchase: $119,000
- Purpose of Acquisition: Initially purchased for public purpose of redevelopment related to
private development; however, the public use and purpose changed years ago due to the
need in the Old Town area for park space, which led to the development of a Respite Park
on this parcel. Use as a public park for respite was the use prior to dissolution and remains
the current use.
- Lot Size: 7,400 sq. ft.
- Current Zoning: Public and Institutional
- Property Type (DOF Category): Park /Open Space
- Permissible Uses: Governmental Use - Public Respite Park
- Estimated Current Value: $0— Based on market value estimate as an existing public park.
- Estimate of Income /Revenue: There is no income generated from the property.
- Contractual Requirements for Use of Income /Revenue: Not applicable
- Historic Environmental Contamination, Studies, and /or Remediation, and Designation as a
Brownfield site: Not applicable
- Transit Oriented Development Potential: Not applicable
- Advancement of Planning Objectives
The Old Town Respite Park provides a rest area and public open space for visitors to the
City of Tustin's Old Town area. There are very few areas zoned for this purpose the
Old Town area, making this Old Town Respite Park a wonderful, accessible public amenity
for Old Town Tustin.
History of Development Proposals and Activities
None received to date.
- Use /Disposition of Property
The Successor Agency intends to transfer the property to the City of Tustin for continued
governmental use pursuant to Section 34181(a) of the Dissolution Law that allows
properties of a former redevelopment agency to be transferred to a public jurisdiction in
order for this property to continue to exist as a public park, the Old Town Respite Park.
2. 445 C Street
- APN:401- 622 -40
- Acquisition Date: 10/4/1982
- Value at Purchase: $500,000
- Purpose of Acquisition: Purchase a partial fee interest in and control of 81 parking spaces
on the second floor of the Parking Structure to provide public parking for Old Town Tustin.
- Lot Size: 1St floor: 36,500 sq. ft.; 2nd floor: 38,000 sq. ft.; Total: 74,500 sq. ft.
- Current Zoning: Central Commercial
- Property Type (DOF Category): Parking Structure /parking spaces
DOCSOC/1685420v2/200350 -0009
- Permissible Uses: Governmental Use - Public Parking in Old Town Tustin.
- Estimated Current Value: $0— Based on market value estimate as an existing public use.
- Estimate of Income /Revenue: There is no income generated from the property.
- Contractual Requirements for Use of Income /Revenue: Not applicable
- Historic Environmental Contamination, Studies, and /or Remediation, and Designation as a
Brownfield site: Not applicable
- Transit Oriented Development Potential: Not applicable
- Advancement of Planning Objectives
The parking structure provides public parking for the Old Town Tustin area.
- History of Development Proposals and Activities
None received to date.
- Use /Disposition of Property
The Successor Agency does not own the parking structure in its entirety. The Successor
Agency has a 38.03% interest in the parking structure, with the balance held by private
owners; the Parking Structure is subject to reciprocal easement and CCRs of record. The
Successor Agency intends to transfer the property to the City of Tustin for governmental use
pursuant to Section 34181(a) of the Dissolution Law that allows properties of a former
redevelopment agency to be transferred to a public jurisdiction in order for the property to
continue the public use and purpose, here as a public parking structure. The Successor
Agency is of the opinion that the open market will not yield a buyer for the 38.03% interest
in the parking structure. Noted too there are delayed maintenance and repair issues not
undertaken by the majority owners of the parking structure that too impact value and
marketability. Transferring the property to the City of Tustin will allow the public to continue
to have the benefit of access to and use of the parking structure for public parking for Old
Town Tustin.
3. 1021 Edinger Avenue /15012 Newport Avenue
- APN: 430 - 252 -05 and 430 - 252 -06
- Acquisition Date: 1/13/1995
- Value at Purchase: $3,029,561.82
- Purpose of Acquisition: Right of Way for the Newport Avenue extension public right of way
- Lot Size: 430 - 252 -05 = 95,832 sq. ft.; 430 - 252 -06 = 87,120 sq. ft.; Total= 182,952 sq. ft.
- Current Zoning: Planned Community Commercial
- Property Type (DOF Category): Vacant Lot /Land
- Permissible Uses: Governmental Use — Newport Avenue Extension
- Estimated Current Value: $0 based on market value estimate as a future public use
- Estimate of Income /Revenue: There is a billboard located on a portion of 430 - 252 -05 that
generates $1,250 per month.
- Contractual Requirements for Use of Income /Revenue: Not applicable
- Historic Environmental Contamination, Studies, and /or Remediation, and Designation as a
Brownfield site: Not applicable
- Transit Oriented Development Potential: Not applicable
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- Advancement of Planning Objectives
The Newport Avenue extension project will ultimately provide greater throughput to Tustin
Legacy and State Route 55, which capital project is included in the City's General Plan,
Master Plan Circulation /Streets and CIP list. The public improvement /road project will
relieve traffic congestion and provide more travel alternatives for north -south trips.
History of Development Proposals and Activities
The property was acquired for public purposes, in particular for future public right of way
for the Newport Avenue extension project. The City of Tustin General Plan provides for the
extension of Newport Avenue approximately 2500 feet southerly to a T- intersection with
Valencia Avenue. Newport Avenue is designed as a primary arterial in the General Plan and
Master Plan. The City intends that Newport Avenue intersect with Edinger Avenue at grade
and the public road project will maintain the driveway access into the Newpointe
Apartments along the northwest side of Newport Avenue.
Use /Disposition of Property
The Successor Agency intends to transfer the property to the City of Tustin for governmental
use pursuant to Section 34181(a) of the Dissolution Law that allows properties of a former
redevelopment agency to be transferred to a public jurisdiction in order for the property to
be used for the public purposes, here for the Newport Avenue right of way /road extension
project.
The property was purchased for future public right of way /road use, in particular for the
Newport Avenue extension project. The completion of the extension project continues to
be a priority for the City of Tustin, and the transfer of the property to the City will facilitate
the completion of the public improvement project.
The billboard, located on a portion of 450 - 252 -05, is a currently a revenue source for the
Successor Agency. The billboard generates $1,250 per month ($15,000 per year) in rent. It is
important to note, that under existing zoning, the billboard is a legal non - conforming use.
Based on zoning limitations and the contract with billboard company, the Successor Agency
believes that the billboard should be included with the transfer of the property to the City of
Tustin.
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