TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing and adopt resolution making certain findings;
Declare the Successor Agency-owned parcels located at 101 East Pacific Coast Highway and 1814 Pine Avenue as surplus; and
Approve and authorize City Manager to execute any and all documents necessary, including the Purchase and Sale Agreement (PSA) and Escrow Instructions with Pine PCH, LLC (Buyer), for the sale of 101 East Pacific Coast Highway and 1814 Pine Avenue. (District 6)
DISCUSSION
The Successor Agency to the Redevelopment Agency of the City of Long Beach currently owns two contiguous parcels (Subject Property) located at 101 East Pacific Coast Highway and 1814 Pine Avenue (Exhibit A - Site Map). The Subject Property totals approximately 17,188 square feet of land area and contains no buildings or other site improvements.
The Buyer has expressed an interest in acquiring the Subject Property for development of a commercial building and appurtenant parking to provide neighborhood-serving retail businesses. The Buyer and the former Redevelopment Agency previously entered into an Exclusive Negotiation Agreement for the development contemplated in this transaction, but were unable to conclude negotiations prior to the dissolution of the Redevelopment Agency. The Buyer proposes to acquire the Subject Property for the purchase price of $393,500, which is fair market value as determined by an independent appraisal. As a condition of the sale, a restrictive covenant would be recorded requiring the Buyer to use the Subject Property for certain specified commercial retail uses and to maintain it at all times. The PSA is subject to approval from the Oversight Board and the State Department of Finance before it is effective.
The major terms and conditions of the proposed sale are as follows:
· Subject Property: The Subject Property is located at 101 East Pacific Coast Highway and 1814 Pine Avenue and comprises approximately 17,188 square feet.
· Seller: City of Long Beach, as Successor Agency to the Redevelopment Agency of the City of Long Beach.
· Buyer: Pine PCH, LLC, a California limited liability company.
· Purchase Price: $393,500.
· Deposit: In connection with the opening of escrow, Buyer will provide a conditionally refundable deposit of $25,000.
· Use: The Buyer is acquiring the property to develop a commercial building and appurtenant parking to provide neighborhood-serving retail businesses.
· Due Diligence: Buyer shall have sixty (60) days from the date of the executed PSA to review title, conduct surveys, studies and inspections and review other applicable due diligence materials relating to the property.
· Escrow Closing: Buyer shall close escrow no later than 365 days from date of opening.
The City of Long Beach as Successor Agency to the Redevelopment Agency of the City of Long Beach was asked to recommend approval of this transaction at its December 4, 2012 meeting. In compliance with Government Code 54220 (Chapter 621, Statutes of 1968), on November 2, 2012, staff notified the State that the Successor Agency was declaring its property located at 101 East Pacific Coast Highway and 1814 Pine Avenue as surplus. Further, in accordance with past practice, a memorandum was circulated to all City departments to determine their interest in or objection to declaring these parcels surplus. To date, neither the State nor any City departments have expressed an interest or objection. In accordance with the California Environmental Quality Act (CEQA), a Categorical Exemption (CE-34-12) was completed related to the proposed transaction on November 5, 2012.
A Summary Report has been prepared pursuant to Section 33433 of the California Health and Safety Code, and made available for public inspection (Exhibit B-Summary Report). Public hearing notification was conducted in accordance with Section 6066 of the State of California Government Code. In addition to achieving the blight elimination, the proposed sale of the Subject Property will restore an underutilized property to productive use, place it back on the tax rolls and spur economic development through new temporary and permanent jobs, all of which are a benefit to the City and other taxing agencies.
This matter was reviewed by Deputy City Attorney Richard Anthony on November 12, 2012 and by Budget Management Officer Victoria Bell on November 15, 2012.
TIMING CONSIDERATIONS
City Council action is requested on December 4, 2012, in order to execute the Purchase and Sale Agreement and Escrow Instructions and allow the sale and subsequent development of the Subject Property to move forward at the earliest possible time following Oversight Board approval. Execution of the agreement is subject to the review and approval of the State Department of Finance.
FISCAL IMPACT
The sale proceeds of $393,500, less any closing and escrow fees, will be held in the Successor Agency Fund (SA 270) in the Department of Development Services. At this time, allocation of these funds has not been determined. New temporary construction jobs and permanent retail jobs will be generated from this transaction. There is no impact to the General Fund associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE PROPOSED PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF LONG BEACH, AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LONG BEACH, AND PINE PCH LLC; FINDING THAT THE CONSIDERATION FOR THE SALE OF CERTAIN REAL PROPERTY IS NOT LESS THAN FAIR MARKET VALUE IN ACCORDANCE WITH COVENANT AND CONDITIONS GOVERNING SUCH SALE; AND APPROVING THE SALE OF THE PROPERTY AND THE PURCHASE AND SALE AGREEMENT
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER