TITLE
Recommendation to declare the property located at 1545-1551 and 1565 Santa Fe Avenue, Assessor Parcel Numbers 7432-005-900, -901, 903, and -904 (Subject Property) as surplus; authorize City Manager, or designee, to execute any and all documents, including the Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate with Atlas Marine, Inc., and/or assignee (Buyer), for the sale of the Subject Property in the amount of $557,777 and accept Categorical Exemption CE 15-131.
(District 1)
DISCUSSION
The City of Long Beach, as Successor Agency to the Redevelopment Agency of the City of Long Beach (Successor Agency) currently owns the property located at 1545-1551 and 1565 Santa Fe Avenue (Subject Property) (Exhibit A). The Subject Property totals approximately 13,764 square feet and consists of two non-contiguous unimproved lots separated by 1555 Santa Fe Avenue, owned by the Buyer. The Subject Property is included in the Successor Agency’s Long Range Property Management Plan (LRPMP), which was approved by the State of California Department of Finance (DOF) on March 10, 2015. The Subject Property has been categorized with a permissible use of “Sale of Property” allowing for the Subject Property to be sold and proceeds distributed as property tax to the local taxing agencies.
Subsequent to the LRPMP’s approval, the Subject Property was marketed by Lee & Associates, who worked with the Buyer to present the Successor Agency with an offer to purchase the property for $557,777, which is above the fair market value as determined by an independent appraisal or broker opinion of value, as appropriate. The sale of the Subject Property to the Buyer allows for the consolidation of land parcels providing the Buyer with the potential for business expansion. Further, the sale to a current Westside area landowner/business is consistent with the Westside Long Beach Industrial Redevelopment Plan, as well as the LRPMP and dissolution law.
In compliance with Government Code Section 54220 (Chapter 621, Statutes of 1968), on June 1, 2015, staff notified the State of California (State) that the Successor Agency was declaring all Future Development and Sale of Property parcels 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 any parcel surplus. To date, neither the State nor any City Department has expressed an interest in, or objection to, the sale of the Subject Property. A Categorical Exemption, CE 15-131 (Exhibit B), was completed related to the proposed transaction on August 31, 2015.
This matter was reviewed by Deputy City Attorney Richard Anthony September 2, 2015 and by Budget Management Officer Victoria Bell on September 3, 2015.
TIMING CONSIDERATIONS
Successor Agency action is requested on September 22, 2015, so the sale of 1545-1551 and 1565 Santa Fe Avenue may be considered by the Oversight Board on September 23, 2015, and promptly submitted to the DOF for review.
FISCAL IMPACT
Sale proceeds of $557,777, less escrow and closing fees, commission, and recovery of administrative costs, will be remitted to the Los Angeles County Auditor-Controller for distribution to the affected taxing agencies. The net proceeds available for remittance is estimated to be $479,688. The County will distribute the net proceeds to the affected taxing agencies based on their share of the $1 tax rate. The City’s share is approximately 21 percent, resulting in roughly $100,700.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER