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HomeMy WebLinkAboutE-1 - PSA, Olson Urban Housing Inc.45635.09000\29502010.1 OVERSIGHT BOARD SCHEDULED ITEM E-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: FEBRUARY 1, 2017 SUBJECT: CONSIDERATION OF PURCHASE AND SALE AGREEMENT BY AND BETWEEN THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY AND OLSON URBAN HOUSING, INC. SUMMARY: On December 12, 2016, the Successor Agency to the Redevelopment Agency approved the Purchase and Sale Agreement for the sale of the A-2 Property, just north of the Gold Line tracks, between Alameda Avenue and Dalton Avenue, South of 9th street. All of the subject parcels are owned by the Successor Agency of the Azusa Redevelopment Agency (Agency). 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 Purchase and Sale Agreement is consistent with the Long Range Property Management Plan and approving the sale. RECOMMENDATION: Staff recommends that the Oversight Board: 1) Adopt Resolution No. 2017-OB-02, including the finding that the sale is consistent with the Long Range Property Management Plan and approving the sale pursuant to the Purchase and Sale Agreement; and 2)Authorize the City Manager, acting as the Successor Agency Executive Director, to execute the Purchase and Sale Agreement and take all other actions reasonably necessary to implement the Purchase and Sale Agreement and the intent of this action. APPROVED 2/1/2017 Development Agreement with Olson Company for 30 Unit Townhome Project February 1, 2017 Page 2 of 2 45635.09000\29502010.1 DISCUSSION: PROJECT DESCRIPTION Pursuant to an Agreement with the City the property is proposed to be developed as thirty (30) townhomes on the 1.44 acres of land. The property is zoned Gold Line District within the Azusa TOD Specific Plan. The City of Azusa Successor Agency Long Range Property Management Plan (Revised) was approved by the Oversight Board on December 17, 2015 and submitted for final approval to the State of California Department of Finance, with approval issued via letter dated December 22, 2015. As a material part of the Long Range Property Management Plan (Revised) (“LRPMP”), those parcels identified as the A-2 Property, just north of the Gold Line tracks, between Alameda Avenue and Dalton Avenue, South of 9th Street which are the subject of the project proposed by Olson Urban Housing LLC, (the “Property”) were, collectively, found to have a fair market value of $1,215,000.00. In addition, approximately $180,000.00 is necessary to alleviate the infrastructure improvement costs necessary to properly prepare the Property for development. Those infrastructure costs, including the alley vacation and infrastructure improvements are detailed above. Accordingly, the purchase price for the Property identified in Section 3 of the Purchase and Sale Agreement set out below, has been modified to reflect the actual purchase price plus costs of infrastructure improvements for a total of $1,395,000.00. Incorporating the infrastructure costs into the purchase price ensures that the taxing agencies to which the fair market value price will be allocated are made whole and do not “share” in the development costs. 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. FISCAL IMPACT: Since the property is owned by the Successor Agency, the revenue generated by the Purchase Sale and Agreement will be distributed among the various taxing agencies based on Los Angeles County Property Tax Formula. Prepared by: Kurt Christiansen, FAICP Director of Economic and Community Development Attachments: 1. Resolution No. 2017-OB-02 2. Purchase and Sale Agreement RESOLUTION NO. 2017-OB-02 A RESOLUTION OF THE OVERSIGHT BOARD TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA APPROVING THE SALE OF LAND FROM THE SUCCESSOR AGENCY TO OLSON URBAN HOUSING, INC. WHEREAS, on December 12, 2016, the Successor Agency to the Redevelopment Agency approved the Purchase and Sale Agreement for the sale of the A-2 Property, just north of the Gold Line tracks, between Alameda Avenue and Dalton Avenue, South of 9th street; and WHEREAS, all of the subject parcels are owned by the Successor Agency of the Azusa Redevelopment Agency (Agency); 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 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 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 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. APPROVED AND ADOPTED THIS 1st day of February, 2017. __________________________________ Robert Gonzales, Chairperson Oversight Board Successor Agency to the Former Redevelopment Agency of the City of Azusa 45635.09000\29502151.1 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-OB-02 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 special meeting thereof held on the 1st day of February, 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