TITLE
Recommendation to adopt resolution authorizing the Long Beach Redevelopment Agency to sell or lease small housing projects
pursuant to California Heath and Safety Code Section 33433(c).
(All Redevelopment Project Areas) (Citywide)
DISCUSSION
On July 8, 2002, the Redevelopment Agency (Agency) authorized the purchase of a 4-unit residential building at 3361 Andy Street, commonly known as Assessor Parcel Number 7121-009-900 (Exhibit A - Site Map) for $350,000 plus closing costs. Since 2002, Community Development staff has worked with property owners of the 23 other residential buildings to explore formation of a property owner's association. It was hoped that such an association would provide a tool for dealing with the crime and other blighting influences plaguing the neighborhood.
On June 5, 2007, the property owners along Andy Street voted to approve the formation of Andy Street Multi-Family Improvement District (AMID). Under Multi-Family Improvement District Law (as referenced in Section 36701 of the California Streets and Highways Code) Andy Street property and business owners will assess themselves for supplemental activities described in the AMID management plan, including: security patrol, marketing, managerial services, cleaning services, parking facilities, pedestrian benches and shelters, signs, entry monuments, trash receptacles, street lighting, street decorations, parks, fountains, planting areas and street modifications. Staff is confident formation of the AMID will go a long way towards stabilizing this neighborhood because business and property owners will have a vested interest to continue working in collaboration with the City.
Agency and Long Beach Housing Development Company (LBHDC) staff recently concluded negotiations for the transfer of 3361 Andy Street from the Agency to the LBHDC for a fair reuse price of $500,000. This fair reuse price reflects a reduction in
fair market value as a result of lower rental revenues due to low and moderate-income restrictions. The proposed transfer and sale price was recommended by the North Long Beach Project Area Committee on April 26, 2007. The transfer was approved by both the LBHDC and the Agency on March 21,2007, and May 21,2007, respectively.
California Health and Safety Code Section 33433(c) allows the Agency to sell or lease small housing projects without formal findings by both the Agency and City Council, provided that the City Council provides such authorization by resolution. The attached resolution authorizes the Agency to sell or lease Agency-owned small housing projects within all redevelopment project areas. Further, the code defines "small housing project" as real property containing or proposed to contain a separate residential structure having not more than four dwelling units and which is owned by the Agency and proposed to be restricted by a recorded instrument for the use and occupancy of persons and families of low- or moderate-income for a period of not less than 30 years.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on May 31, 2007, and Budget and Performance Management Bureau Manager David Wodynski on May 30, 2007.
TIMING CONSIDERATIONS
City Council action is requested on June 12,2007, in order to initiate the transaction.
FISCAL IMPACT
Adoption of the proposed recommendation will result in reduced expenditures to the Redevelopment Fund (RD). This streamlined process will allow Agency staff to quickly address the transition of Agency owned small housing projects and save in the cost of financial analysis associated with larger real estate transactions.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE LONG BEACH REDEVELOPMENT AGENCY TO SELL OR LEASE SMALL HOUSING PROJECTS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 33433( c)
Respectfully Submitted,
PATRICK H. WEST
DIRECTOR OF COMMUNITY DEVELOPMENT
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APPROVED: |
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GERALD R. MILLER |
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CITY MANAGER |