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Home My WebLink AboutD-03 Staff Report - Purchase and Sale Agreement SA Block 37SCHEDULED ITEM D-3 TO: SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA VIA: SERGIO GONZALEZ, CITY MANAGER FROM: KURT CHRISTIANSEN, FAICP, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT DATE: MAY 7, 2018 SUBJECT: APPROVAL OF THE PURCHASE AND SALE AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE AZUSA REDEVELOPMENT AGENCY AND SUMMITROSE INVESTMENTS, LP AND HILLROSE INVESTMENTS, LP FOR THE SALE AND DEVELOPMENT OF REAL PROPERTY GENERALLY LOCATED AT 624-630 NORTH SAN GABRIEL, AZUSA (APN 8611-004-914). ). 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 TOD SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT AND ADOPTED FINDINGS PURSUANT TO CEQA,. THE CITY HAS NOT RECEIVED ANY COMMENTS OR ADDITIONAL INFORMATION THAT PRODUCED SUBSTANTIAL NEW INFORMATION REQUIRING RECIRCULATION OR ADDITIONAL ENVIRONMENTAL REVIEW UNDER PUBLIC RESOURCES CODE SECTIONS 21166 AND STATE CEQA GUIDELINES, SECTION 15162. NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED FOR THE CITY TO ADOPT THIS RESOLUTION. BACKGROUND: The Successor Agency to the former Redevelopment Agency is the owner 624-630 North San Gabriel in the City (APNs 8611-004-914) (“Property”). Pursuant to the Long Range Property Management Plan, the Successor Agency desires to sell the Property on the open market. The Successor Agency has received an offer to acquire the Property from Charles Company. The Successor Agency now desires to enter into a Purchase and Sale Agreement with Summitrose Investments, LP and Hillrose Investments, LP (collectively, “Developer”), the single purpose entities established by Charles Company for this transaction, to expeditiously and in a manner aimed at maximizing value sell the Property. By way of this agenda report, Staff recommends that the Successor Agency enter into a Purchase and Sale Agreement with Developer to allow the parties to sell the Property to Developer. CONTINUED TO JUNE 4, 2018 RECOMMENDATION: Staff recommends the Successor Agency take the following actions: 1) Approve the attached Agency Resolution No. 2018-R07 approving the Purchase and Sale Agreement; 2) Find the project is consistent with the previously certified final Azusa TOD Specific Plan Environmental Impact Report and adopted findings pursuant to CEQA, which analyzed the potential impacts of this parcel’s use for mixed-use purposes and direct staff to file a Notice of Determination; and 3) Authorize the City Manager acting as the Executive Director of the Successor Agency to execute the Purchase and Sale Agreement on behalf of the Successor Agency in a form acceptable to the City Attorney. . ANALYSIS: The City of Azusa Successor Agency Long Range Property Management Plan (Revised) was approved by the Oversight Board on December 17, 2015, and was submitted for final approval to the State of California Department of Finance, which approved it via letter dated December 22, 2015. The Long Range Property Management Plan called for the sale of this property on the open market. Following receipt of a proposal from Developer, the Successor Agency negotiated the Purchase and Sale Agreement. Pursuant to Section 34191.5(f), actions implementing the disposition of property pursuant to an approved Long Range Property Management Plan do not require review by the Department of Finance. As this sale is consistent with the Long Range Property Management Plan, Staff will implement the sale and ensure the funds from the sale are disbursed to the County for eventual distribution to the affected taxing entities. 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 TOD Specific Plan Environmental Impact Report and adopted findings pursuant to CEQA, which analyzed the potential impacts of this parcel’s use for mixed-use purposes. The proposed project does not require a change in General Plan or Zoning Code land use designation and the impacts of the proposed development were considered as part of the TOD Specific Plan Environmental Impact Report. The City has not received any comments or additional information that produced substantial new information requiring recirculation or additional environmental review under Public Resources Code section 21166 and State CEQA Guidelines, section 15162. No further environmental review is required for the City to adopt this Resolution. FISCAL IMPACT: The Successor Agency shall sell its portion of the Property to Developer for the purchase price of $1,618,320. Each party will bear their own portion of the closing costs. Prepared by: Reviewed and Approved Kurt E. Christiansen, FAICP Louie F. Lacasella Economic and Community Development Director Senior Management Analyst Reviewed and Approved: Sergio Gonzalez City Manager Attachments: 1)Resolution No. 2018-R07 of the Successor Agency Approving the Purchase and Sale Agreement 2)Purchase and Sale Agreement RESOLUTION NO. 2018-R07 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE AZUSA REDEVELOPMENT AGENCY APPROVING A PURCHASE AND SALE AGREEMENT WITH SUMMITROSE INVESTMENTS, LP AND HILLROSE INVESTMENTS, LP FOR PURCHASE OF 624-630 NORTH SAN GABRIEL, AZUSA (APN 8611-004-914) 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 8611-004-914 (“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 TOD Specific Plan Environmental Impact Report and adopted findings pursuant to CEQA. The City has not received any comments or additional information that produced substantial new information requiring recirculation or additional environmental review under Public Resources Code sections 21166 and State CEQA Guidelines, section 15162. No further environmental review is required for the City to adopt this Resolution. 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 Attachment 1 the City Manager as the Executive Director, 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 ____, 2018. ________________________________ Mayor ATTEST: ________________________________ City Clerk EXHIBIT A PURCHASE AND SALE AGREEMENT (Charles Company/Block 37) [Attached behind this cover page]