TITLE
Recommendation to approve the amendment to the Revised Long Range Property Management Plan; and authorize submittal to the Oversight Board and, if approved by the Board, to the State of California Department of Finance for approval. (Citywide)
DISCUSSION
Chapter 9 of AB 1484 ("Post Compliance Provisions") provides that within six (6) months following issuance of a Finding of Completion to a successor agency, that successor agency shall submit, subject to approval of its oversight board, a Long Range Property Management Plan to the State of California Department of Finance (DOF). The Successor Agency received its Finding of Completion on April 23, 2013.
In October 2013, the Successor Agency and the Oversight Board authorized staff to submit the Long Range Property Management Plan (Plan) to the DOF. The Plan was submitted promptly thereafter. Following a preliminary review of the Plan, the DOF requested clarification and additional documentation regarding certain properties. As a result, the Successor Agency and the Oversight Board, on January 20, 2015 and February 2, 2015, respectively, authorized staff to submit a revised Plan (Revised Plan) with the requested updates.
On March 10, 2015, the Department of Finance approved the Agency's use or disposition of all the properties in the Revised Plan with the following exceptions:
· Property Nos. 22-27 (Wrigley Market Place)
· Property No. 135 (parking lot at Market Street and Long Beach Boulevard)
· Property Nos. 139-141 (parking lot at Linden Avenue and South Street)
· Property Nos. 234-236 (Cal Can Holdings Development)
The DOF requested that the Successor Agency change the permissible use (i.e., Enforceable Obligation, Government Use, Sale of Property and Future Development) of the four groups of properties. The attached Amendment to the Revised Plan (Attachment A) changes the permissible use of the properties from either Future Development or Government Use to Sale of Property. The Amendment to the Revised Plan specifies that the parking lots will be designated for Government Use if certain provisions of a Budget Trailer Bill currently known as RN 15 09465 pass.
The Amendment to the Revised Plan changes the category of use for six more groups of properties. The change is from Future Development to Property for Sale. This change has been made to expedite their disposition.
Should the Oversight Board request changes to the Revised Long Range Property Management Plan, staff will incorporate those into the document before transmittal to the State of California Department of Finance.
This matter was reviewed by Deputy City Attorney Richard Anthony on April 13, 2015, and by Budget Management Officer Victoria Bell on April 16, 2015.
TIMING CONSIDERATIONS
Successor Agency action is requested on May 5, 2015, so the Amendment to the Revised Plan may be considered by the Oversight Board on May 11, 2015, and promptly submitted to the DOF for review and potential approval prior to the review cycle for the next ROPS period.
FISCAL IMPACT
Because the Revised Long Range Property Management Plan must be reviewed and approved by the Oversight Board and by the DOF, it is subject to modification, and it is not possible to predict the amount of future revenue or expense that will flow to the City from the disposition of real property of the former Redevelopment Agency. In the event that properties are transferred to the City for either governmental use or future development, the Successor Agency will not receive funding via future ROPS to pay for the maintenance of those properties. Staff are determining potential sources of funding to pay for the maintenance cost, one of which could be a portion of the sale proceeds.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER