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Home My WebLink AboutD-1 Staff Reort - Public Hearing Purchase and Sale Agreement Charvat FamilyPUBLIC HEARING/SCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: STEPHAN E. HUNT, CHIEF OF POLICE/ACTING CITY MANAGER FROM: KURT E. CHRISTIANSEN, FAICP, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT DATE: AUGUST 21, 2017 SUBJECT: CONDUCT THE PUBLIC HEARING REGARDING THE SALE OF CERTAIN PROPERTY LOCATED AT 17511 E. ARROW HIGHWAY, AZUSA (APN 8621-024- 905) BY THE CITY TO CHARVAT FAMILY, LLC., CONSIDERATION OF A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF AZUSA AND CHARVAT FAMILY, LLC SUMMARY: The City is owner of that certain real property generally located at 17511 E. Arrow Highway in the City (APN 8621-024-905) (“Property”). Pursuant to the Long Range Property Management Plan, the Successor Agency conveyed the Property to the City pursuant to the LRPMP for the eventual sale to Developer pursuant to the Disposition and Development Agreement with Developer. On July 17, 2017, the City Council adopted Resolution No. 2017-C52 setting the public hearing on this matter for August 21, 2017. RECOMMENDATION(S): Staff recommends the City Council take the following actions: 1) Open the public hearing and receive testimony from the public regarding the proposed sale of the Property owned by City. 2) Close the public hearing and, if any protests were received regarding the sale of the Property, overrule the protest by a 4/5 majority vote. 3) Approve the attached City Resolution No. 2017-C59 approving the Purchase and Sale Agreement; and 4) Authorize the Mayor to execute the Purchase and Sale Agreement on behalf the City in a form acceptable to the City attorney. APPROVED CITY COUNCIL 8/21/2017 DISCUSSION: The Redevelopment Agency entered into a Disposition and Development Agreement (“DDA”) prior to the dissolution of redevelopment agencies. Pursuant to that DDA, the Developer had an option to acquire the Property if it wasn’t developed as a restaurant use by June 2016. Developer timely exercised that option. Pursuant to the LRPMP the Property was transferred to the City so the City could implement the ongoing obligations under the DDA. The City is now prepared to implement the DDA and convey the property to the Developer. In accordance with California Government Code Section 37420 et seq., the City must hold a public hearing to accept any written protests received from interested parties and, if no protests are received, or if the city council votes to overrule a protest by a 4/5 majority, the City Council may adopt a resolution finding that the public interest and convenience require the sale of the property and proceed with the sale of the Property. ENVIRONMENTAL REVIEW: In 2011, upon approval of the DDA, the City determined that the DDA and its implementing actions were exempt from environmental review pursuant to the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) and State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) section 15332, the Class 32 Infill Exemption. This exemption applies to those projects that are consistent with the applicable general plan and zoning designations, occur within city limits on a project site of no more than five acres, occur on a site with no value has habitat, can be adequately served by utilities and public services, and where project approval would not result in any significant effects relating to traffic, noise, air quality, or water quality. (State CEQA Guidelines, § 15352.) Here, the parcel at issue is currently being used as a parking lot and will continue to be used as a parking lot. All requirements for the Class 32 Infill Exemption apply. Further, given that there is no change of use proposed here, this action is merely the transfer of title, which does not have any attendant environmental impacts. Therefore, this action is also exempt pursuant to State CEQA Guidelines, section 15061(b)(3) which exempts actions for which it can be seen with certainty that there is no possibility of a significant environmental impact. FISCAL IMPACT: Pursuant to the DDA, certain public improvements were to be completed by the City as part of the original development of the adjacent property. Those improvements were completed by the Developer instead of the City and the City was going to reimbursement the Developer. The costs of those improvements were approximately $199,324. When the property was appraised it was valued at approximately $199,000. As a result, the Purchase and Sale Agreement provides that the purchase price shall be satisfied by the Developer relieving the City of the obligation to repay the funds spent on the public improvements. Prepared by: Reviewed and Approved: Kurt E. Christiansen, FAICP Louie F. Lacasella Economic and Community Development Director Senior Management Analyst Reviewed and Approved: Stephan E. Hunt Chief of Police/Acting City Manager Attachments: 1) Resolution No. 2017-C59 of the City of Azusa Approving the Purchase and Sale Agreement 2) Purchase and Sale Agreement 3) Resolution of the City Approving the Disposition and Development Agreement 4) Disposition and Development Agreement 45635.09000\29948011.2 RESOLUTION NO. 2017-C59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF AZUSA AND CHARVAT FAMILY, LLC FOR APN 8621- 024-905 WHEREAS, the City of Azusa, California (“City”) is the owner of certain real property generally located at 17511 E. Arrow Highway (APN 8621-024-905), as further described in the Agreement attached to this Resolution as Exhibit A and incorporated herein by this reference (“Property”); and WHEREAS, in 2011 the property was owned by the Redevelopment Agency and the Charvat Family, LLC (“Developer”) acquired from the Redevelopment Agency an option to purchase the property; and WHEREAS, following the dissolution of the Redevelopment Agency, the Department of Finance approved the transfer of the Property to the City so the City could implement the ongoing obligations under the option to purchase; and WHEREAS, Developer has negotiated a purchase and sale agreement with City for the purchase of the Property; and WHEREAS, Developer’s proposed acquisition of the Property 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 resident 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 sell the Property to Developer and, based upon the Recitals and all other information and testimony provided, finds that the public interest and convenience require the sale of the Property to Developer. Section 3. Hearing. Pursuant to California Government Code section 37423, a duly noticed public hearing was held by the City on February 6, 2017. Section 4. CEQA Compliance. The City Council hereby finds that execution of the Agreement is exempt from further environmental review pursuant to the California Environmental Quality Act. Specifically, pursuant to State CEQA Guidelines (Cal. Code Reg., 45635.09000\29948011.2 tit. 14, § 15000 et seq.) section 15332, the Class 32 Infill Exemption applies. Further, because execution of the Agreement will not result in any change of use, it is also exempt pursuant to State CEQA Guidelines section 15061(b)(3), given that this is merely a change in title, with no attendant physical impacts. Section 5. Approval of Agreement. The City hereby approves the Agreement, in substantially the form attached to this Resolution as Exhibit “A,” and authorizes the City Manager to sign and enter into the Agreement and perform the obligations of the City pursuant to the Agreement. Section 6. 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 7. Certification. The City Clerk of the City of Azusa shall certify to the adoption of this Resolution. Section 8. Effective Date. This Resolution shall become effective immediately upon its adoption. APPROVED AND ADOPTED THIS ______ day of ____, 2017. ________________________________ Mayor ATTEST: ________________________________ City Clerk 45635.09000\29948011.2 EXHIBIT A PURCHASE AND SALE AGREEMENT [Attached behind this cover page]