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HomeMy WebLinkAboutD-2 - Purchase and Sale Agreement45635.01851\29947612.1 SCHEDULED ITEM D-2 TO: MEMBERS OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE CITY OF AZUSA REDEVELOPMENT AGENCY FROM: KURT CHRISTIANSEN, FAICP, DIRECTOR OF ECONOMIC AND COMMUNITY DEVELOPMENT DATE: July 26, 2017 SUBJECT: APPROVAL OF PURCHASE AND SALE AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND RAPHAEL GLENOAKS, LLC, FOR SALE OF REAL PROPERTY GENERALLY LOCATED AT 975 W. FOOTHILL BLVD. (APNS 8605-019-906, 8605- 019-907) SUMMARY: On July 17, 2017, the Successor Agency to the Redevelopment Agency approved a Purchase and Sale Agreement by and between the Successor Agency and Raphael Glenoaks, LLC. for the sale of 975 W. Foothill Blvd. (APNS 8605-019-906, 8605-019-907). Pursuant to those laws governing the dissolution of redevelopment agencies, the sale of land following the approval of the Long Range Property Management Plan by the Department of Finance requires the approval of the Oversight Board. Staff recommends that the Oversight Board approve the attached Resolution finding that the sale pursuant to the Disposition and Development Agreement is consistent with the Long Range Property Management Plan and ratifying the sale. RECOMMENDATION: Staff recommends that the Oversight Board: 1) Adopt Resolution No. 2017-OB10, including the finding that the sale is consistent with the Long Range Property Management Plan and ratifying the sale approved by the Successor Agency pursuant to the Purchase and Sale Agreement; and 2)Authorize the City Manager, acting as the Successor Agency Executive Director, to take all other actions reasonably necessary to implement the Purchase and Sale Agreement and the intent of this action. DISCUSSION: The Successor Agency and the Developer intend for the Successor Agency to sell the Property to Developer expeditiously and in a manner aimed at maximizing value and consistent with the Department of Financing approved Long Range Property Management Plan. The Developer will also be entering into an agreement with the City to ensure that Developer develops the Property consistent with the desires of the City. The City shall enforce all rights and obligations associated with the development of the Successor Agency land after the close of escrow to Developer. APPROVED 7/26/2017 Purchase and Sale Agreement with Raphael Glenoaks LLC July 26, 2017 Page 2 of 2 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 such, following the approval by the Oversight Board staff will implement the transaction consistent with the terms of the Purchase and Sale Agreement. The Purchase and Sale Agreement provides that the Developer shall acquire the property for One Million Two Hundred and Eighty Five Thousand Dollars ($1,285,000.00) for a project without a medical use and One Million Eighty Five Thousand Dollars ($1,085,000.00) for a project with a medical use. These funds will be used to pay enforceable obligations or disbursed to the taxing entities as provided for in the Long Range Property Management Plan. FISCAL IMPACT: The Successor Agency will receive its share of the sale proceeds (purchase price less the proportional share of escrow and closing costs). The purchase price is $1,285,000 (without medical use) or $1,085,000 (with medical use). Following the sale, these funds will be used to pay enforceable obligations or disbursed to the taxing entities as provided for in the Long Range Property Management Plan. Prepared by: Kurt Christiansen, FAICP Director of Economic and Community Development Attachments: 1) Resolution No. 2017-OB10 2) Purchase and Sale Agreement RESOLUTION NO. 2017-OB10 A RESOLUTION OF THE OVERSIGHT BOARD TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE PURCHASE AND SALE AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND GLENOAKS, LLC, FOR SALE OF REAL PROPERTY GENERALLY LOCATED AT 975 W. FOOTHILL BOULEVARD IN AZUSA (APNS 8605-019-906, 8605-019-907) WHEREAS, on July 17, 2017, the Successor Agency to the Redevelopment Agency approved a Purchase and Sale Agreement by and between the Successor Agency and Raphael Glenoaks LLC for the sale of 975 W. Foothill Blvd. in Azusa (APNS 8605-019-906, 8605-019-907); and WHEREAS, pursuant to those laws governing the dissolution of redevelopment agencies, the sale of land following the approval of the Long Range Property Management Plan by the Department of Finance requires the approval of the Oversight Board; and WHEREAS, the Long Range Property Management Plan called for the sale of these parcel on the open market; and WHEREAS, Staff recommends that the Oversight Board find that the sale pursuant to the Purchase and Sale Agreement is consistent with the Long Range Property Management Plan and ratify the Successor Agency’s approval of the sale. NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1: The sale of land pursuant to the Purchase and Sale Agreement is consistent with and does implement the disposition of property pursuant to the approved Long Range Property Management Plan. SECTION 2: That the Oversight Board approves the Successor Agency’s approval of the Purchase and Sale Agreement and directs the Executive Director to take all such actions as are necessary and appropriate to implement the transaction. SECTION 3: This resolution shall take effect immediately upon adoption. PASSED, APPROVED and ADOPTED this 26th day of July, 2017. __________________________________ Robert Gonzales, Chairperson Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa ATTEST: ___________________________________ Jeffrey Lawrence Cornejo, Jr. Secretary Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa I HEREBY CERTIFY that the foregoing Resolution No. 2017-OB10 was duly adopted by the Board Members of the Oversight Board to the Successor Agency of the Former Redevelopment Agency of the City of Azusa, at a regular meeting thereof held on the 26th day of July, 2017, by the following vote of Board Members: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ___________________________________ Jeffrey Lawrence Cornejo, Jr. Secretary Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa