TITLE
Recommendation to receive the supporting documentation into the record and conclude the hearing; approve an Owner Participation Agreement with Faith Chapel Mortuary, Inc.; adopt the attached Resolution making certain findings; and approve and authorize the Executive Director to execute any and all documents necessary to
implement the Agreement. (District 6)
DISCUSSION
On February 14, 2005, the Redevelopment Agency (Agency) approved an Owner Participation Agreement (OPA) between the Agency and Faith Chapel Mortuary, Inc., (Owner) for the development of 1890-92 Atlantic Avenue (Site) (Exhibit A). The Owner proposes to purchase and develop the vacant 5,175-square foot Agency-owned Site, in order to expand the adjacent mortuary business and provide additional on-site parking in the Central Long Beach Redevelopment Project Area (Project Area). The OPA includes the following provisions:
The Owner will pay the Agency $16.23 per square foot, or $84,000, as compensation for the 5,175-square foot Site;
The Owner will develop on the Site a parking facility to support the Owner's (adjacent business and improve the existing building faGade on the Owner's parcel in conformance with the development standards detailed in the Agreement; and An Agreement Containing Covenants will also be recorded at closing. This document will prohibit certain uses, describe maintenance responsibilities and require that any future improvements be subject to the Design Guidelines, for the Project Area. Since the Site was purchased by the Agency with tax increment monies, California Redevelopment Law requires that this land sale must also be approved by the City Council by resolution after a public hearing. The City's Environmental Planning Officer has determined that the project contemplated by the Agreement qualifies for a
Categorical Exemption under the California Environmental Quality Act (Exhibit B). The following documents are attached to this staff report: a Site Map, Categorical Exemption CEP-74-04, a Summary Report of the Agreement (as required by Section 33433 if the California Redevelopment Law - Exhibit C), and a City Council Resolution which makes certain findings and authorizes the execution of the Agreement. This letter was reviewed by Assistant City Attorney Heather A. Mahood and Budget
Management Officer David Wodynski on February 15,2005.
TIMING CONSIDERATIONS
City Council action is requested on March 1, 2005, as the Agency and Owner wish to proceed with an escrow closing on or before May 1, 2005.
FISCAL IMPACT
The proceeds of $84,000 from the proposed sale will be deposited into the Redevelopment Fund (RD) in the Department of Community Development (CD).
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH APPROVING THE PROPOSED
OWNER PARTICIPATION AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF LONG
BEACH, CALIFORNIA, AND FAITH CHAPEL MORTUARY,
INC.; FINDING THAT THE CONSIDERATION FOR THE
CONVEYANCE OF CERTAIN REAL PROPERTY IN THE
CENTRAL REDEVELOPMENT PROJECT IS NOT LESS
THAN FAIR MARKET VALUE IN ACCORDANCE WITH
COVENANTS AND CONDITIONS GOVERNING SUCH
CONVEYANCE; AND APPROVING THE CONVEYANCE
OF THE PROPERTY AND THE OWNER PARTICIPATION
AGREEMENT
Respectfully Submitted,
MELANIE S. FALLON
DIRECTOR OF COMMUNITY DEVELOPMENT