TITLE
Recommendation to receive the supporting documentation into the record; conclude the public hearing; adopt resolution making certain findings; and approve and authorize City Manager to execute a Disposition and Development Agreement with Willmore City Heritage Association. (District 1)
DISCUSSION
Redevelopment Agency (Agency) staff has concluded the negotiation of a Disposition and Development Agreement (Agreement) with Willmore City Heritage Association (Developer) for the sale and development of Agency-owned property located at 419-421 Daisy Avenue (Site), commonly known as Assessor Parcel Numbers 7278-025-904 and 7278-025-906 (Exhibit A - Site Map). The Site is located in the Central Long Beach Redevelopment Project Area (Project Area) and was acquired by the Agency at a cost of $99,110.
Under the terms of the Agreement, the Developer will pay the Agency $1.00 for each of the two parcels comprising the 5,490-square foot Site. The Developer will relocate the 2,000-square foot historic home that was previously located at 249 Maine Avenue, on the Cesar Chavez School site, and is currently situated at 624 West Third Street. The Developer will renovate the house in its new location at 419-421 Daisy Avenue, within the Drake Park/Willmore City Historic District, add a two-car garage, and re-sell the restored property. The Agency will receive any profit from the re-sale after the Developer recoups all expenses and a profit of $25,000. The Developer has provided evidence of financing for the development of the Site.
The Cultural Heritage Commission reviewed the Developer's proposal on August 17, 2005 and issued a Certificate of Appropriateness. The Redevelopment Agency Board approved the Agreement on December 12, 2005.
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 - Categorical Exemption).
Since the property was purchased by the Agency with tax increment monies, California Redevelopment Law requires that this sale also be approved by the City Council by resolution after a public hearing.
Pursuant to California Redevelopment Law, Section 33433 of the California Health and Safety Code, the Agency has made available for public inspection and reproduction a Summary Report (Exhibit C - Section 33433 Summary Report) that contains the following:
. The estimated value of the interests to be conveyed, determined at the highest use permitted under the Redevelopment Plan;
. The estimated reuse value of the interests to be conveyed, determined at the use and with the conditions, covenants and development costs required by the Agreement;
. The purchase price;
. The cost of the Agreement to the Agency;
. The net cosVbenefit to the Agency;
. An explanation of why the sale of the Site will assist in the elimination of blight; and
. An explanation of why the sale of the Site is consistent with the Agency's AB 1290 Implementation Plan.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on November 28,2005, and Budget Management Officer David Wodynski on December 1,2005.
TIMING CONSIDERATIONS
City Council action is requested on December 13, 2005, in order to facilitate the sale transaction.
FISCAL IMPACT
Proceeds from the land sale and subsequent sale of the house will be deposited in the Redevelopment Fund (RD) in the Department of Community Development (CD). There is no fiscal impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF LONG BEACH, CALIFORNIA, AND THE WILLMORE CITY HERITAGE ASSOCIATION; FINDING THAT THE CONSIDERATION FOR THE SALE OF CERTAIN REAL PROPERTY IN THE CENTRAL REDEVELOPMENT PROJECT IS NOT LESS THAN FAIR MARKET VALUE IN ACCORDANCE WITH COVENANTS AND CONDITIONS GOVERNING SUCH SALE; AND APPROVING THE SALE OF THE PROPERTY AND THE DISPOSITION AND DEVELOPMENT AGREEMENT
Respectfully Submitted,
PATRICK H. WEST
DIRECTOR OF COMMUNITY DEVELOPMENT