TITLE
Recommendation to approve an amendment to the Revised Long Range Property Management Plan. (District 1)
DISCUSSION
The Successor Agency and the Oversight Board, on June 23 and July 6, 2015, respectively, approved the renewal of a parking license agreement between the Successor Agency and Michael Ryan Peterson and Lisa Marie Peterson for eight parking spaces at the 4th Street Lofts (southwest corner of Alamitos Avenue and Fourth Street). The eight parking spaces were the result of an exclusive easement negotiated as part of a Disposition and Development Agreement between the former Redevelopment Agency of the City of Long Beach (former RDA) and the developer of the 4th Street Lofts. Ongoing maintenance of the parking spaces is the obligation of the 4th Street Lofts. The easement and the maintenance obligation continue in perpetuity.
On August 21, 2015, the Department of Finance (DOF) provided the Successor Agency with its determination regarding the proposed renewal of the parking license agreement. The DOF denied the renewal on the basis that the Successor Agency would be entering into a new enforceable obligation contrary to Section 34177.3 of the Health and Safety Code, and that the action was not within the spirit of Section 34177(h) of the Health and Safety Code to expeditiously wind down the affairs of the former RDA. The DOF further cited Section 34191.4(a) of the Health and Safety Code, indicating that the Successor Agency’s easement for the eight parking spaces should have been included in the Long Range Property Management Plan (LRPMP).
The proposed amendment to the LRPMP classifies the easement for the eight parking spaces as a Government Use (Exhibit A) and transfers that easement to the City of Long Beach. Following the transfer, the City of Long Beach will have the right to lease or otherwise use those eight parking spaces as it determines.
This matter was reviewed by Deputy City Attorney Richard Anthony on August 31, 2015, and by Budget Management Officer Victoria Bell on September 2, 2015.
TIMING CONSIDERATIONS
Successor Agency action is requested on September 22, 2015, so the amendment to the Revised Plan may be considered by the Oversight Board on September 23, 2015, and promptly submitted to the DOF for review.
FISCAL IMPACT
The proposed transfer of the easement from the Successor Agency to the City will be positive. The City will not have any cost to maintain the eight parking spaces because it is the responsibility of the 4th Street Lofts. During the last year of the Parking License Agreement, the Successor Agency received $8,640 for these spaces annually or $90 per space per month. Following the transfer, the City will set the monthly charge for the eight parking spaces, which will result in revenue to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER