TITLE
Recommendation to declare the property located at 306 East Home Street, Assessor Parcel Number 7131-036-900 (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 Cherry South, LLC and MYK Properties, LLC, and/or an affiliated assignee (Buyer), for the sale of the Subject Property in the amount of $198,500; and accept Categorical Exemption CE 15-087.
(District 8)
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 306 East Home Street (Subject Property) (Exhibit A). The Subject Property is approximately 6,750 square feet and is currently unimproved. 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 and Associates, who worked with the Buyer to present the Successor Agency with an offer to purchase the property for $198,500, which is within two percent of fair market value as determined by an independent appraisal or broker opinion of value, as appropriate. Staff supports proceeding with this proposal as the Buyer has prior Long Beach development experience indicating good quality design. The sale of the Subject Property is consistent with 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 15-087 (Exhibit B), was completed related to the proposed transaction on June 30, 2015.
This matter was reviewed by Deputy City Attorney Richard Anthony and by Budget Management Officer Victoria Bell on July 1, 2015.
TIMING CONSIDERATIONS
Successor Agency action is requested on July 21, 2015, so the sale of 306 Home Street may be considered by the Oversight Board on August 3, 2015, and promptly submitted to the DOF for review.
FISCAL IMPACT
Sale proceeds of $198,500, 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 $170,700. 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 $35,800.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER