TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing, find that the consideration for the conveyance of certain real property in the Central Long Beach Redevelopment Project Area is not less than fair market value in accordance with covenants and conditions governing such conveyance; and adopt resolution approving the proposed quitclaim between the Redevelopment Agency of the City of Long Beach, California, and The Long Beach Housing Development Company. (District 6)
DISCUSSION
On September 23, 2002, the Long Beach Redevelopment Agency (Agency) agreed to acquire properties on the west side of Atlantic Avenue between 20th and Hill Streets on behalf of The Long Beach Housing Development Company (LBHDC). A map of the site and photographs (Exhibit A) and a list of the subject properties (Exhibit B) are included. A Memorandum of Agreement (MOA) was prepared by the City Attorney's Office and executed by the Executive Director of the Agency and the President of the LBHDC. The MOA specified that the LBHDC would advance all costs and expenses incurred from these transactions to the Agency, the Agency would acquire the properties and relocate the tenants, and then relinquish its ownership of the properties to the LBHDC after the acquisition process was completed.
On March 17,2004, the LBHDC adopted the Atlantic Avenue Master Plan. The Master Plan contains specific development guidelines for the development of affordable housing on the west side of Atlantic Avenue between 20th and Hill Streets. The plan contemplates the development of attached for-sale housing for moderate-income households. On May 18, 2005, the LBHDC Board authorized staff to release a Request for Qualifications (RFQ) to identify interested developers. Brookfield Homes was selected by the LBHDC through a competitive selection process that included the review of qualifications from nine developers.
The acquisition process has now been completed for a total cost of approximately $10.39 million. This amount includes acquisition cost of land and buildings, relocation, demolition, goodwill, and furnishings and equipment.
The LBHDC is ready to move forward with negotiations with Brookfield Homes and has requested the Agency to convey its ownership of the properties to the LBHDC as agreed upon in the MOA. By March 5, 2007, the Agency will have conducted a Public Hearing, adopted a Resolution making certain findings, and authorized the conveyance of the properties to the LBHDC.
Pursuant to the provisions of the California Redevelopment Law, the City Council is also required to hold a Public Hearing on the proposed conveyance and to adopt a Resolution approving the proposed conveyance of the properties by the Agency to the LBHDC.
Public Notice of this hearing has been properly given. Attached for your information are the following documents:
. Summary Report (as required by the California Health and Safety Code Section 33433 (Exhibit C).
. Resolution by the City Council finding that the sale of real property in the Central Long Beach Redevelopment Project Area is not less than Fair Market Value.
This letter was reviewed by Deputy City Attorney Heather Mahood on February 22, 2007 and Budget and Performance Management Bureau Manager David Wodynski on February 22,2007.
TIMING CONSIDERATIONS
City Council action is requested on March 6, 2007, so that the LBHDC may proceed with development of the site.
FISCAL IMPACT
Through an MOA between the LBHDC and Agency, the Agency acquired the properties by utilizing funds transferred from an advance of the LBHDC's allocations of redevelopment set-aside funds. No additional payment of funds is required in this transaction and no bond monies were used in the financing.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE PROPOSED QUITCLAIM BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF LONG BEACH, CALIFORNIA, AND THE LONG BEACH HOUSING DEVELOPMENT COMPANY; FINDING THAT THE CONSIDERATION FOR THE CONVEYANCE OF CERTAIN REAL PROPERTY IN THE CENTRAL LONG BEACH 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 QUITCLAIM
Respectfully Submitted,
NAME PATRICK H. WEST |
APPROVED: |
TITLE DIRECTOR OF COMMUNITY DEVELOPMENT |
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MICHAEL A. KILLEBREW |
GERALD R. MILLER |
DIRECTOR OF FINANCIAL MANAGEMENT |
CITY MANAGER |