HomeMy WebLinkAboutD-1 - Ratification of Azusa Capital, LLC DDA45635.01850\29886026.1
OVERSIGHT BOARD AGENCY ITEM
D-1
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: June 28, 2017
SUBJECT: RATIFICATION OF A DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF AZUSA, THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, AND AZUSA CAPITAL
LLC., FOR DEVELOPMENT OF REAL PROPERTY GENERALLY LOCATED AT
303 E FOOTHILL BLVD.; AND 714, 716, 720, 726, AND 728 N. DALTON AVE
(APNs 8608-029-910; 8608-029-904; 8608-029-906; 8608-029-907; 8608-029-908;
8608-029-909)
SUMMARY:
On March 6, 2017, the City and Successor Agency to the Redevelopment Agency approved a Disposition and
Development Agreement by and between the City, the Successor Agency and Azusa Capital for the disposition
and development of 303 E Foothill Blvd.; and 714, 716, 720, 726, and 728 N. Dalton Ave (APNs 8608-029-910;
8608-029-904; 8608-029-906; 8608-029-907; 8608-029-908; 8608-029-909). 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-OB07, 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
Disposition and Development Agreement; and
2)Authorize the City Manager, acting as the Successor Agency Executive Director, to take all other actions
reasonably necessary to implement the Disposition and Development Agreement and the intent of this
action.
APPROVED
6/28/2017
Development Agreement with Olson Company for 30 Unit Townhome Project
December 5, 2016
Page 2 of 2
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DISCUSSION:
The City and Developer are interested in developing the Property as a commercial development. By entering into
the Disposition and Development Agreement, the City, the Successor Agency and the Developer intend for the
Successor Agency to sell the Agency's portion of 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, and for the City to sell the City's portion of the Property to Developer and ensure that
Developer develops the Property in accordance with the Disposition and Development Agreement. The City shall
enforce all rights and obligations associated with the development of the Successor Agency land, in addition to
the City land, after the close of escrow to Developer.
Both the City and the Successor Agency parcels are necessary to assemble a piece of property suitable for
development. The Disposition and Development Agreement provides that the purchase price is split between the
two agencies with the City receiving $135,000 for its parcels and the Successor Agency receiving $805,000 for its
parcels.
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 has implemented the sale, escrow for the transaction has
been completed and the funds received by the appropriate agencies (purchase price less the proportional share of
escrow and closing costs). The Successor Agency funds will be disbursed to the affected taxing entities or used to
retire existing enforceable obligations as provided for in the approved Long Range Property Management Plan.
FISCAL IMPACT:
The Successor Agency has received its share of the sale proceeds (purchase price less the proportional share of
escrow and closing costs). The Agency property purchase price is consistent with the value listed in the Long
Range Property Management Plan for the Successor Agency properties (714, 716, and 720 N. Dalton and 303 E.
Foothill Ave).
Prepared by:
Kurt Christiansen, FAICP
Director of Economic and Community Development
Attachments:
A. Resolution No. 2017-OB07
B. Disposition and Development Agreement
45635.01850\29886308.1
RESOLUTION NO. 2017-OB07
A RESOLUTION OF THE OVERSIGHT BOARD TO THE
REDEVELOPMENT AGENCY OF THE CITY OF AZUSA RATIFYING THE
SUCCESSOR AGENCY SALE OF LAND TO AZUSA CAPITAL LLC.
WHEREAS, on March 6, 2017, the Successor Agency to the Redevelopment Agency approved the
Disposition and Development Agreement by and between the City of Azusa, the Successor Agency and Azusa
Capital for the sale of a number of properties including Successor Agency parcels located at 714, 716, and 720
N. Dalton Ave and 303 E. Foothill Blvd; 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 Disposition
and Development Agreement is consistent with the Long Range Property Management Plan and ratify the
Successor Agency’s approve 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 Disposition and Development 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 ratifies the Successor Agency’s approval of the sale
and approves the sale 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 28th day of June, 2017.
__________________________________
Robert Gonzales, Chairperson
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
45635.01850\29886308.1
ATTEST:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
Secretary
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
CERTIFICATION
I HEREBY CERTIFY that the foregoing Resolution No. 2017-OB07 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 28th June, 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