The URL can be used to link to this page

Home My WebLink AboutD-5 Staff Report - Purchase and Sale Agreement SA_City_Raphael Glenoaks (2)SCHEDULED ITEM D-5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL AND SUCCESSOR AGENCY VIA: STEPHAN E. HUNT, CHIEF OF POLICE/ACTING CITY MANAGER FROM: KURT CHRISTIANSEN, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT DATE: JULY 17, 2017 SUBJECT: CONSIDERATION OF A PURCHASE AND SALE AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE AZUSA REDEVELOPMENT AGENCY AND RAPHAEL GLENOAKS, LLC, AND AN AGREEMENT AFFECTING REAL PROPERTY BETWEEN THE CITY OF AZUSA AND RAPHAEL GLENOAKS, LLC FOR THE SALE AND DEVELOPMENT OF REAL PROPERTY GENERALLY LOCATED 975 W. FOOTHILL BLVD. (APNS 8605-019-906, 8605-019-907) SUMMARY: The Successor Agency to the former Redevelopment Agency is the owner of several parcels generally located at 975 W. Foothill Blvd in the City (APNs APNS 8605-019-906, 8605-019-907) (“Property”). Pursuant to the Long Range Property Management Plan, the Successor Agency desires to sell the Property to Raphael Glenoaks, LLC (“Developer”) expeditiously and in a manner aimed at m aximizing value. As a condition to the close of escrow, the Developer is required to enter into an Agreement Affecting Real Property with the City (the “City Agreement”) to govern the future development of the Property. Staff recommends that the Successor Agency enter into the Purchase and Sale Agreement for the sale of the Property and the City Council enter into the City Agreement to ensure the timely development of the Property consistent with the City’s vision for the Property. RECOMMENDATION: Staff recommends the Successor Agency take the following actions: 1) Approve the attached Agency Resolution No. 2017-R09 approving the Purchase and Sale Agreement; and 2) Authorize the Executive Director of the Successor Agency to execute the Purchase and Sale Agreement. APPROVED CITY COUNCIL 7/17/2017 Raphael Gelnoaks, LCC July 17, 2017 Page 2 Staff recommends the City Council take the following actions: 1) Approve the attached City Council Resolution No. 2017-C53 approving the City Agreement; and 2) Authorize the City Manager to execute the City Agreement. DISCUSSION: The City and Developer are interested in developing the Property as a retail/restaurant site that contains not more than 4,000 square feet of medical use (or no medical use). By entering into the Purchase and Sale Agreement, the Successor Agency will sell the Property t o Developer expeditiously and in a manner aimed at maximizing value. The City shall enforce all rights and obligations associated with the development of the Successor Agency land after the close of escrow to Developer. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.: “CEQA”) and the State CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.), the City Council certified the final Azusa General Plan Environmental Impact Report and adopted findings pursuant to CEQA, which analyzed the potential impacts of this parcel’s use for commercial purposes. While the project site is currently vacant, no change in General Plan or Zoning Code land use designation is proposed or anticipated. While future development of the site is likely to require a Conditional Use Permit, the details associated with that permit application are currently unknown. However, prior to any issuance of a Conditional Use Permit, compliance with CEQA would be required. No further environmental review is required for the City to adopt this Resolution. FISCAL IMPACT: The Agency shall sell the Property to Developer for the purchase price of $1,285,000 (with medical use) or $1,085,000 (without medical use). Prepared by: Reviewed and Approved: Kurt E. Christiansen, FAICP Louie F. Lacasella Economic and Community Development Director Management Analyst Reviewed and Approved: Stephan E. Hunt Chief of Police/Acting City Manager Raphael Gelnoaks, LCC July 17, 2017 Page 3 Attachments: 1) Resolution No. 2017-R09 of the Successor Agency Approving the Purchase and Sale Agreement 2) Purchase and Sale Agreement 3) Resolution No. 2017-C53 of the City Approving the Agreement Affecting Real Property 4) Agreement Affecting Real Property([KLELW'RIWKH3XUFKDVHDQG6DOH$JUHHPHQW 45635.01851\29914105.1 RESOLUTION NO. 2017-R09 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE AZUSA REDEVELOPMENT AGENCY APPROVING A PURCHASE AND SALE AGREEMENT WITH RAPHAEL GLENOAKS, LLC FOR 975 W. FOOTHILL BLVD, AZUSA (APN 8605-019-906 AND 8605-019-907) WHEREAS, pursuant to Health and Safety Code section 34173(d), the City of Azusa (“Successor Agency”) is the successor agency to the Azusa Redevelopment Agency (“Agency”); and WHEREAS, pursuant to Health and Safety Code section 34179(a), the Oversight Board is the Successor Agency’s oversight board; and WHEREAS, as part of the dissolution of the Agency, the Successor Agency developed a Long Range Property Management Plan (LRPMP) to identify the disposition and use of the real properties of the Agency; and WHEREAS, the LRPMP was approved by the Oversight Board of the Successor Agency and by the Department of Finance (“DOF”); and WHEREAS, as part of the LRPMP, the DOF approved the Successor Agency’s plan to sell APN 8605-019-906 AND 907 (“Agency Property”) expeditiously and in a manner aimed at maximizing value; and WHEREAS, Developer’s proposed acquisition of the Agency Property is in the best interest of the Successor Agency and the winding down of the Successor Agency’s business. NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE AZUSA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. CEQA Compliance. In accordance with the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq. “CEQA”) and the State CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.), the City Council certified the final Azusa General Plan Environmental Impact Report and adopted findings pursuant to CEQA, which analyzed the potential impacts of this parcel’s use for commercial purposes. While the project site is currently vacant, no change in General Plan or Zoning Code land use designation is proposed or anticipated. While future development of the site is likely to require a Conditional Use Permit, the details associated with that permit application are currently unknown. However, prior to any issuance of a Conditional Use Permit, compliance with CEQA would be required. No further environmental review is required for the City to adopt this Resolution. 45635.01851\29914105.1 Section 3. Approval of Agreement. The Successor Agency hereby approves the Agreement, in substantially the form attached to this Resolution as Exhibit “A,” and authorizes the Chair, acting on behalf of the Successor Agency, to sign and enter into the Agreement and perform the obligations of the Successor Agency pursuant to the Agreement. Section 4. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency declares that the Successor Agency would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. Section 5. Certification. The City Clerk of the City of Azusa, acting on behalf of the Successor Agency, shall certify to the adoption of this Resolution. Section 6. Effective Date. This Resolution shall become effective immediately upon its adoption. APPROVED AND ADOPTED THIS ______ day of ____, 2017. ________________________________ Mayor ATTEST: ________________________________ City Clerk 45635.01851\29914105.1 EXHIBIT A PURCHASE AND SALE AGREEMENT (Costanzo Investments, LLC/A-2 Property) [Attached behind this cover page] 45635.01851\29914121.1 RESOLUTION NO. 2017-C53 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING AN AGREEMENT AFFECTING REAL PROPERTY BETWEEN THE CITY OF AZUSA AND RAPHEAL GLENOAKS, LLC FOR PROPERTY LOCATED AT 975 W. FOOTHILL BLVD, AZUSA (APN 8605-019-906 AND 907) WHEREAS, the City of Azusa, California (“City”) is the owner of certain real property located at 975 W. Foothill Blvd. , Azusa (APN 8605-019-906 and 907), as further described in the Agreement attached to this Resolution as Exhibit A and incorporated herein by this reference (“Property”); and WHEREAS, on July 11, 2016, the City entered into an exclusive right to negotiate an agreement with EFPAR Development, LLC, (“Developer”) for the potential acquisition and development of a portion of the Property; and WHEREAS, Developer has negotiated the Agreement for the purchase and development of the Property with the Successor Agency; and WHEREAS, Developer’s proposed acquisition of the Property and subsequent construction and completion of the project, is in the public interest and convenience of the City and the community, and the health, safety and welfare of the city’s taxpayers and residents, and will further the goals and objectives of the City’s general plan by: (i) strengthening the City’s land use and social structure, and (ii) alleviating economic and physical blight on the City Property and in the surrounding community. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE AND FIND AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Findings. The City Council intends to enter into the City Agreement to ensure the timely development of the Property consistent with the City vision for the site: and based upon the Recitals and all other information and testimony provided, finds that the public interest and convenience require the sale and development of the Property to Developer pursuant to the terms of the City Agreement. Section 3. CEQA Compliance. In accordance with the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.: “CEQA”) and the State CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.), the City Council certified the final Azusa General Plan Environmental Impact Report and adopted findings pursuant to CEQA, which analyzed the potential impacts of this parcel’s use for commercial purposes. While the project site is currently vacant, no change in General Plan or Zoning Code land use designation is proposed or anticipated. While future development of the site is likely to require a Conditional Use Permit, 45635.01851\29914121.1 the details associated with that permit application are currently unknown. However, prior to any issuance of a Conditional Use Permit, compliance with CEQA would be required. No further environmental review is required for the City to adopt this Resolution. Section 4. Approval of Agreement. The City hereby approves the Agreement, in substantially the form attached to this Resolution as Exhibit “A,” and authorizes the Mayor to sign and enter into the Agreement and perform the obligations of the City pursuant to the Agreement. Section 5. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City declares that the City would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. Section 6. Certification. The City Clerk of the City of Azusa shall certify to the adoption of this Resolution. Section 7. Effective Date. This Resolution shall become effective immediately upon its adoption. APPROVED AND ADOPTED THIS ______ day of ____, 2017. ________________________________ Mayor ATTEST: ________________________________ City Clerk 45635.01851\29914121.1 EXHIBIT A DISPOSITION AND DEVELOPMENT AGREEMENT (Charles Co/Block 37) [Attached behind this cover page]