HomeMy WebLinkAboutRDA 2 PURCHASE PROP 07-19-04
.'
-.~
~"Ú'
Agenda Item
RDA2
AGENDA REPORT
Reviewed: {ìI!f
City Manager
Finance Director
MEETING DATE:
JULY 19, 2004
FROM:
WILLIAM A. HUSTON, EXECUTIVE DIRECTOR
REDEVELOPMENT AGENCY STAFF
TO:
SUBJECT:
PURCHASE AND SALE AGREEMENT FOR A VACANT PARCEL IN THE
VICINITY OF NEWPORT AVENUE AND NORTHBOUND SANTA ANA (1-5)
FREEWAY RAMP
SUMMARY
Agency approval is requested to enter into a Purchase and Sale Agreement for a site
located in the Town Center Project Area. Under the California Health and Safety Code
Section 33391, the Agency may purchase property for purposes of redevelopment.
RECOMMENDATION
It is recommended that the Redevelopment Agency take the following actions.
1. Approve Resolution No. RDA 04-06, and authorize the Executive Director or Assistant
Executive Director to execute a Purchase and Sale Agreement (Attachment A) and
related documents between the Tustin Community Redevelopment Agency and the
California Department of Transportation ("Caltrans") as may be approved by the City
Attorney.
2. Appropriate $189,000 from the unappropriated Town Center Redevelopment Project
Area fund balance for the acquisition of the property and expenses associated with the
Purchase and Sale Agreement.
FISCAL IMPACT
If the Purchase and Sale Agreement is approved, the Agency will pay $189,000 plus the
Agency closing costs identified in the Agreement in anticipation of a subsequent sale of
the parcel to an Owner Participant under substantially the same terms and conditions as
provided in the Exclusive Agreement to Negotiate between the Tustin Community
Redevelopment Agency and Makena Great American Newport Company dated May 5,
2004.
William A. Huston
Purchase and Sale Agreement: Newport and EI Camino Real
July 19, 2004
Page 2
BACKGROUND
In September 2003, the Agency received a request from Makena Great American Newport
Company, LLC (the "Developer') for assistance in purchasing a Caltrans surplus parcel
located along the 1-5 freeway for the purpose of assembling larger site for development of
a retail center located at 14001 Newport Avenue. The Caltrans parcel is contiguous to the
southerly boundary of the Newport Avenue property that was recently acquired by the
Developer. Formerly the site of Tustin Transmission, the property is blighted containing
the remains of old structures in need of redevelopment.
In April, 2004 the Agency authorized the Executive Director to enter the Exclusive
Agreement to Negotiate with the Developer pursuant to the Agency's Rules Governing
Participation. Under the Exclusive Agreement to Negotiate, the Agency and Developer
are obligated to negotiate in good faith with the intent of entering into a Disposition and
Development Agreement (DDA) for the redevelopment of the assembled properties. The
Exclusive Agreement to Negotiate will allow the developer to proceed in completing
preliminary design drawings, detailed economic and cost evaluations, and allow him to
begin serious discussions on the necessary financing for the project. While It does not
commit the Agency to any expenditure of funds nor does it commit the Agency to providing
financial assistance, it does provide that the Agency pursue the acquisition of the Caltrans
surplus parcel for redevelopment purposes subject to Caltran's approval of the Agency's
acquisition and the Agency's approval of a Disposition and Development Agreement for
the redevelopment of the Property.
FINDING OF BENEFIT
This site is located in the Town Center Project Area. On March 6, 2000 the Tustin
Community Redevelopment Agency adopted a five-year Implementation Plan for the Town
Center and South/Central Redevelopment Project areas for fiscal years 2000-2001
through 2004-2005. The Implementation Plan was composed of two parts, a five-year
plan for Redevelopment activities and a five-year plan for housing activities. Anticipated
accomplishments and expenditures for the five-year period included the rehabilitation of
substandard and deteriorating structures to improve building conditions, increase
functionality and desirability, and to integrate design characteristics with the aim of creating
a cohesive commercial district in the Town Center Project Area.
William A. Huston
Purchase and Sale Agreement: Newport and EI Camino Real
July 19, 2004
Page 3
It is anticipated that the Caltrans parcel would be assembled with adjacent property(ies)
which would allow for clearing existing improvements which are characterized by
economic obsolescence and substantial deferred maintenance, and bring new commercial
uses to the Old Town Tustin commercial area and stimulate economic development
activity in the Project Area. While there is no formal submittal for a proposed project, the
currently proposed infill project would be comprised of a single story retail building of
approximately 7,400 square feet on a 0.68 acre site surrounded by retail and commercial
uses. The proposed land assembly and redevelopment constitutes public uses and
purposes under the California Health and Safety Code Section 33037, as it will assist in
the elimination of and prevention of the spread of blight in the Project Area. The proposed
acquisition is consistent with the Implementation Plan for the Town Center Project Area.
The proposed property acquisition and infill redevelopment project may be categorically
exempt from the requirements of the Environmental Quality Act pursuant to Section 15332
(Class 32) of the California Code of Regulations, Title 14, Chapter 3 (Guidelines for the
California Environmental Quality Act). The Community Development Department has
made such a determination for this project. Such determination is on file with Community
Development.
Christine A. Shingleto
Assistant City Mana r
Attachments
S:\RDA\RDA report\July 19, 2004 Caltrans Property Acquisition Report.doc
A TT ACHMENT A
DEPARTMENT OF TRANPORTATION
PURCHASE AND SALE AGREEMENT
REAL PROPERTY -DD-O72768-01-01
STAT!:: OF CAlJFQRNIA
D£P ARTMIDIT OF TRANSPORT AnON
PURCHASE AND SALE AGREEMENT - REAL PROPERTY - DD-O72768-01-01
In this Agreement dated , 2004, by and between TUSTIN COMMUNITY
REDEVELOPMENT AGENCY, hereinafter known as "Buyer" and STATE OF CALWORNIA,
DEPARTMENT OF TRANSPORTATION, hereinafter known as "Seller", the parties agree as
follows:
For the sum of One Hundred Eighty Nine Thousand Dollars, ($189,000.00); buyer hereby agrees
to purchase and seller hereby agrees to sell "that certain real property in the City of Tustin,
County of Orange, State of California being that portion of Parcell acquired by the State of
California, by deed recorded November 7, 1989 as Document No. 89-600848 of official Records
in the office of the County Recorder of said county, and legally described in Director's Deed No.
DD 0072768-01-01 (hereinafter referred to as the "property").
Subject to the following conditions:
I
Buyer agrees to tender with this agreement a non-refundable deposit of Nineteen Thousand
dollars, ($19,000.00). This deposit is due on or before July 30, 2004. The balance of the purchase
price, One Hundred Seventy Thousand, Dollars ($170,000.00) shall be paid on or before August
30,2004. All payments shan be made to State of California, Department of Transportation, and
mailed to State of California, Department of Transportation, RIW Excess Land Sales, 21073
Pathfinder Road, Suite 100, Diamond Bar, CA 91765.
II
The governing body of your agency must provide a resolution that states the property will be
used for public purposes. "Public purposes" means the preponderant area of the property shall be
substantially for government, as opposed to proprietary functions. The intended specific use of
the property shall be stated in the resolution.
III
All sales made subject to the approval of the California Transportation Commission, (CTC). In
the event that the California Transportation Commission fails to approve this sale, all monies
heretofore paid by the Buyer will be refunded without interest.
IV
The Seller is willing to process this sale at no charge to the Buyer, except for the items set forth
in paragraph V below. BuYer, at its option, may open an escrow at its own expense. The Seller
will pay no escrow fees.
V
The Buyer agrees to pay any and all recording fees, documentary stamp tax and monumentation
fees chargeable by the County Recorder. At a later date, the Seller wilJ request that these fees
are forwarded, and buyer shall submit to the seller upon demand.
VI
The Buyer expressly understands that the right, title and interest in the property to be conveyed
shall not exceed that vested in the State of California and that the Seller will furnish no policy of
title insurance. If a policy of title insurance is desired, the buyer shall obtain one, at the Buyer's
expense
Page 1 of 2
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
PURCHASE AND SALE AGREEMENT - REAL PROPERTY - DD-O72768-01-01
VII
The property is being sold "as is" and is being conveyed subject to any special assessments,
restrictions, reservations or easements of record and subject to any reservations contained in the
Director's Deed. Buyer may examine any information the Seller has relative to these matters.
VIII
In the event suit is brought by either party to enforce the terms and provisions of this Agreement
or to secure the performance hereof, each party shall bear its own attorney's fees.
The Buyer agrees that the title of the property being conveyed shall not pass until the Director's
Deed has been recorded. The Buyer shall not take possession of the property until the director's
Deed is recorded.
IX
Buyer shall defend, indemnify, and hold seller and seller's elected and appointed officers, agents
and employees free and harmless from and against any and all liabilities, damages, claims, costs
and expenses (including without limitation, attorney's fees, legal expenses and consultant's fees,
and investigation and remediation costs) arising in whole or in part from the existence of
hazardous substances, or hazardous substance conditions. This indemnity is intended to address
that liability for which seller may be responsible arising solely out of its mere ownership of said
real property. This provision shall survive transfer of title to said real property and any rescission
of said transfer.
"Hazardous Substance" shall mean any substance whose nature and/or quantity of existence.
Use, manufacture, disposal of effect, render it subject to federal, state or local regulation,
investigation, remediation or removal as potentially injurious to public health or welfare,
including the comprehensive Environmental Response Compensation and Liability Act or
Resource Conservation and Recovery Act as now in effect. "Hazardous Substance Condition"
shall mean the existence on or under, said property of a hazardous substance that requires
remediation and lor removal and I or to be otherwise mitigated pursuant to applicable law.
The terms and conditions of the above agreement are hereby accepted, subject to the approval of
the California Transportation Commission.
BUYER: TUSTIN COMMUNITY REDEVELOPMENT AGENCY.
By:
Date:
WILLIAM A. HUSTON
Executive Director
SELLER:
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
By:
GERI MOORE, Chief
Excess Land
Southern R!W Region
Date:
Page 2 of 2
Map No: F-1982-5(O1/10/2001)
RWPE: C Smythe
Written: CS Check: RWS
Space above this line for Recorder's Use
DIRECTOR'S DEED
I District I County Route Foost NumtJef
1')
1..:.. Orange 5 29.8 DD 072768-01-01
The STATE OF CALIFORNIA, acting by and through its Director of Transportation, does hereby grant to
all that real property in the City of Tustin
County of Orange
, State of California, described as:
DD 073768-01-01
That portion of Parcel 1 acquired by the State of California by deed recorded November 7, 1989 as
Document No. 89-600848 of Official Records in the ofñce of the County Recorder of said county, bounded
as follows:
Bounded westerly by the easterly line and the southerly prolongation thereof, of that parcel of land described
as Parcell in the deed to George A. Royer and wife, recorded October 29, 1956 in Book 3692, Page 595 of
said Official Records, and
Bounded southerly the California State Department of Transportation Right of Way Line, described in part as
follows:
California State Department of Transportation
Right of Way Line
The norther!)r line of that parcd of land (Parcel No. 727óg-l) described in the quitclaim deed to the SIat~
MAIL TAX
STATEMENTS TO:
Page 1 of 4
of California, recorded April 26, 1989, as Document No. 89-219972 of said Official Records.
Utility Facilities Easement
Parcel No. 72768-2
RESERVING UNTO the State of California, its successors and assigns, hereinafter referred to as "Grantor"),
a non-exclusive easement for utility facilities, in on over and across that certain real property described as
follows:
That portion of the first above described real property lying southerly of a straight line, said line being 15.00
feet northerly of, and parallel with, that course in the northerly line of that parcel ofland (parcel No. 72768-
1), described in last said quitclaim deed as having a length of202.05 feet.
The Grantor, and its respective agents and assigns, shall have the right to trim or top such trees and other
foliage, and to cut such roots as may endanger or interfere with said lines and appurtenanœs, and shall have
the right to enter upon and to pass or repass along and over said easement whenever and wherever necessary
for the purposes above set forth, provided, however, that in making any excavation on said property of the
Grantee, the Grantor herein shall make the same in such manner as will cause the least injury to the surface
of the ground, landscaping and facilities so removed or disturbed by it, and shall restore the surface of the
ground to as near its previous condition as possible, also provided that the Grantee, his successors and
assigns, may use the surface of the above described easement area, without, however, the right to construct
permanent structures thereon. .
There shall be no abutter's rights of access appurtenant to the above described real property in and to the
adjacent State Îreeway.
There shall be no abutter's rights of vehicular access over and across the northwesterly line of the
southeasterly 20.00 reet of the first above described real property.
The above described real property is landlocked and without any direct access to the Îreeway or to any public
or private roacLThe State of California is without obligation or liability to provide access to said rea]
property. .
Attached hereto and made a part thereof is a map entitled Exhibit "A". This map is for informational
purposes only and is subordinate in all respects to the above description
This real property description has been prepared by me, or under my direction, in conformance with the
Professional Land Surveyors Act. .
OL. úJ s,s1L
Date:
~
", I '.
'---J N",-J
¡ \ "2- = '"'"' I
r - I
t
SÍ!mature:
Cohn W. Smyth~, P.LS. No. 6401 Œxp. 12/31/02)
?ag~. 2 of 4
REMAJNDER
"~'<~ ~
~"~ .
~ /fè"Ç'-1
-<! <: "'~ /
~""'V 0
or ~"'"'.
~Cy "'.
,
",
",
"
"
"
",
CIT~/
.'
.,~
) <ov~:
/ !? ,.\0, /
. 'v ~ /
/1 ...\".,:(. / /
/ ~,/./ /
N'L Y LINE OF SW'L Y / Co;¡ j/ / /
20~' PER O.R. 89-600/848 ""\-'ox, / / /'//
10032 so. FT.(NET);< / /
QcI' / " / ..To. ./
'$0. . '" / '" /
/ ~~ ~~
/ // vo.~ 1>/ ~
\ ~ STATE OF CALIFORNIA ~ / ~~.,?,;./ ~~
\ O.R.89-600848 .;v, (,~
DO 072758-01-02 ~ P / . \ '<../
O,R.93-0612<165 ë5 -$'/ ~
-r-<\- Z C72768'~ :,,~';~~'~ 'Y-
I )----./...._--' \ (.:.~o'./ 9:-',
IV --.J '\ /
f 40' 3B - - V;; ./ ¡-...,'
15' UTILITY ESMT ~2"W 'fB' 1-";-" \...)
PER O.R. 93-0511570 I~ I I .-t.", ./ ~
N'L Y LINE 5T A TE -. t rbV;;;'/ .::::..:'<
PARCEL NO. 7276,8-1 N8::> 38'19"E1-;/ , .":J/ ( ~~
PER O.R.89-219972 12.55 r.." ,~C)/ ~~
S N4S.ZI'OI"W/ .... ,"'/ -...:;:::-
, -411; ì A 2:~O,~/ >1/ C:w
~Rf'Ai /1 / ~
. ' I::. [/1/1.' ~) I\/~(j / ,/ .
. /'1 /' I
BLOCK B
\flAP OF
30 -rUST))\J TfU\DT
NlM J/99
OF
n
CT>
v
\
"-
PHILIP CRAWFORD
ET UX
O.R. 11050//30"1
DO 072758-01-01
TLJST!I\J
I i ¡
¡ STATE RETA1NS ACCESS RIGHT~
P"~ï:...rcI' BeT
..::.. .2;:.". JUt ' . .1 .!.
~" L 9'
.i.J:..
This map 1s for ¡nformational Durposes only and is subordinate
'iii 011 :-esDect5 -i-o +I-:]e Q+tocr!B,j d-?SCíio-t1on.
,
! - -. -,~
subject to special assessments if any, restrictions, reservations, and easements of record.
This conveyance is executed pursuant to the authority vested in the Director of Transportation by law and, in
particular, by the Streets and Highways Code.
WITNESS my hand and the seal of the Department of Transportation of the State of California, this
day of 20 .
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
Director of Transportation
By
Attorney in Fact
County of
} 55
PERSONAL ACKNOWLEDGMENT
STATE OF CALIFORNIA
On this the _day of
20 - ' before me,
Name, Title of Officer-E.G., "Jane Doe, Notary Public"
personally appeared
Name of Signer
0 personally known to me
0 proved to me on the basis of satisfactory evidence
to be the person whose name is subscribed to the within instrument and acknowledged to me that - he/she executed the same in -
hislher authorized capacity, and that by his/her signature on the instrument the person. or the entity upon behalf of which the person
acted, executed the instrument.
WITNESS my hand and official seal.
(tor notary saal Dr stamp)
(Notary Public's signature in and for said County and State)
THIS IS TO CERTIFY That the California Transportation
Commission has authorized the Director of Transportation
To execute the foregoing deed .at its meeting regularly
Called and held on the ~ day of
,20
in the City of
Dated this
day of
,2°-
rag::' L of t:i
RESOLUTION NO. RDA 04-06
A RESOLUTION OF THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
TUSTIN, CALIFORNIA, APPROVING THE
ACQUISITON OF REAL PROPERTY BY THE TUSTIN
COMMUNITY REDEVELOPMENT AGENCY FOR THE
PUBLIC USES AND PUBLIC PURPOSES OF
REDEVELOPMENT PURSUANT TO HEALTH AND
SAFETY CODE SECTIONS 33391 AND 33037
The Tustin Community Redevelopment Agency (the "Agency") of the City of Tustin does
hereby resolve as follows:
I.
The Agency finds and determines as follows:
A. The Agency is engaged in implementation of the "Redevelopment Plan"
for the Town Center Area Redevelopment Project (the "Redevelopment Project");
B. Section 33391 of the California Community Redevelopment Law (Health &
Safety Code 33000, et seq.: "CRL") authorizes the Agency to purchase, lease, obtain an
option upon, acquire by gift, grant, devise, or otherwise, any real or personal property,
any interest in property, and any improvements on it for purposes of redevelopment;
C. Section 33037(c) of the California Health and Safety Code declares as a
policy of the State: "that the redevelopment of blighted areas and the provisions for
appropriate continuing land use and construction policies in them constitutes public
uses and purposes for which public money may be advanced or expended and private
property acquired, and are governmental functions of state concern in the interest of
health, safety, and welfare of the people of the State and of the communities in which
the areas exist"
D. The California Department of Transportation surplus parcel and adjacent
properties located at the southwest corner of Newport Avenue and EI Camino Real in
the Town Center Redevelopment Project Area are a blighting influence on the
commuity, exhibiting both physical and economic blight such as building obsolescence,
dilapidation or deterioration, incompatible uses inhibiting economic development of
those parcels and other portions of the project area, and low lease rates resulting in
stagnant property values and impaired investments in the project area.
E. The payment of funds for the acquisition of the land with the intent to
further redevelopment of the land and adjacent parcels will assist in the elimination of
one or more blighting conditions inside the project area, and is consistent with the
implementation plan adopted pursuant to Section 33490.
Resolution No. RDA 04-06
Page 2
F. The proposed acquisition and redevelopment project is categorically exempt
from the requirements of the Environmental Quality Act pursuant to Section 15332 (Class
32) of the California Code of Regulations, Title 14, Chapter 3 (Guidelines for California
Environmental Quality Act).
II. The Agency hereby finds and determines, based upon substantial evidence
provided in the record before it:
A.
That the foregoing recitals are true and correct; and
B. That the acquisition of land will assist in the elimination of blight in the
Redevelopment Project area, and is consistent with the implementation plan
adopted by the Agency for the Town Center Area Redevelopment Plan pursuant
to Section 33490 of the CRL.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Tustin Community
Redevelopment Agency held on the19th day of July, 2004.
TONY KAWASHIMA
CHAIRPERSON
PAMELA STOKER
City Clerk
Resolution No. RDA 04-06
Page 3
STATE OF CALIFORNIA)
ORANGE COUNTY )
CITY OF TUSTIN)
I, Pamela Stoker, City Clerk and ex-officio Clerk of the Tustin Community
Redevelopment Agency of the City of Tustin, California, do hereby certify that the whole
number of the members of the Redevelopment Agency of the City of Tustin is five; that
the above and forgoing Resolution No. RDA 04-06 was duly passed and adopted at a
regular meeting of the Tustin Community Redevelopment Agency, held on July 19,
2004, by the following vote:
BOARDMEMBER AYES:
BOARDMEMBER NOES:
BOARDMEMBER ABSTAINED:
BOARDMEMBER ABSENT:
PAMELA STOKER
CITY CLERK
S:\RDA\RDA resos\RDA 04-036Resolution Approving Acquisition of Real Propertytdoc