TITLE
Recommendation to adopt resolution authorizing the acquisition of tax-defaulted property, Assessor Parcel Number 7202-028-044, in the City of Long Beach from the County of Los Angeles; and authorize City Manager to execute a Chapter 8 Agreement and any and all documents necessary for the acquisition of the tax-defaulted property. (District 7)
DISCUSSION
In July 2011, the Los Angeles County Treasurer and Tax Collector (County) released a list of properties to be included in the 2011A Public Tax Auction (Auction). These properties have been tax-defaulted for non-payment of property taxes and deemed Subject to Power to Sell by the County. Prior to conducting the Auction, the County grants local governmental agencies an opportunity to request acquisition of these properties, as allowed under the California Revenue and Taxation Code, Division 1, Part 6, Chapter 8, which outlines the provisions for the acquisition of properties by a public agency, if a public need can be determined (Chapter 8 Agreement).
City staff has reviewed and identified one vacant parcel for City acquisition that is located adjacent to the Los Angeles River between 19th and 20th Streets, Assessor Parcel Number 7202-028-044 (Subject Property) (attachment). The City's Department of Parks, Recreation and Marine (Parks) requested the Subject Property for development as open space. The purchase price of the Subject Property from the County is approximately $4,672 which represents the amount of delinquent property taxes and penalties owed on the Subject Property. In addition, fees of approximately $1,000 will be charged for administrative and processing costs, for a total cost of $5,672.
On behalf of the City, the Department of Public Works submitted a written request to the County for a Chapter 8 Agreement to purchase the Subject Property. In order to proceed, the County requires the City Council to adopt a resolution authorizing the acquisition of tax-defaulted property and authorizing the City Manager to enter into an Agreement with the County. Once the City's Agreement is approved by the Los Angeles County Board of Supervisors and the State of California Controller's Office, the County is required to notify the property owners of the pending effective date of the Agreement with the City. In the event the property owners pay the delinquent tax amount prior to the effective date of the Agreement, the owners will retain the Subject Property and the City will be unable to proceed with the purchase. However, should the property owners fail to pay the delinquent tax amount by the effective date of the Agreement, the City may proceed with acquisition.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on December 6, 2011 and by Acting Budget and Performance Management Bureau Manager Shari Metcalfe on December 9, 2011.
TIMING CONSIDERATIONS
City Council action is requested on January 17, 2012 in order to facilitate acquisition of the Subject Property.
FISCAL IMPACT
The estimated cost to acquire the Subject Property requested by Parks for development as open space is $5,672. Sufficient funds are currently budgeted in the General Fund (GP) of the Department of Parks, Recreation and Marine (PRM). Future development will be contingent upon available park impact fees and/or grant funding when available. There is no local job impact associated by this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH TO EXECUTE A CHAPTER 8 AGREEMENT WITH THE COUNTY OF LOS ANGELES TO ACQUIRE TAX-DEFAULTED PROPERTY (19TH STREET AND LOS ANGELES RIVER)
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER