TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution making certain findings for an Owner Participation Agreement with Cowelco Properties, Inc., for the development of 1328-1340 West Canal Avenue. (District 1)
DISCUSSION
The Long Beach Redevelopment Agency (Agency) staff has concluded the negotiation of an Owner Participation Agreement (Agreement) with Cowelco Properties, Inc., (Developer) for the exchange of the Agency-owned property located at 1328-1340 Canal Avenue (Site) (Exhibit A - Site Map). The Site is located in the Westside Industrial Redevelopment Project Area (Westside).
The Developer is a steel fabrication business located at 1634 West 14th Street in the Westside. The company started as a custom sailboat builder in the mid-1940s by the current owner's father who subsequently transitioned to metals and structural steel contracting to take advantage of the post World War II construction demand. Since then, the company has grown to become one of the Westside's major manufacturing businesses, employing approximately 80 people. The company is certified as a WBE (Women Business Enterprise), allowing them to take advantage of major state and federal government procurement opportunities.
The Developer currently does not have off-street parking and proposes to enhance his current business in the Westside by acquiring the Site for off-street employee parking. The Developer intends to improve the Site with a surface parking lot for 30 cars, install wrought iron fencing, and add five feet of landscaping around the perimeter of the Site. The lot would include handicap parking, curbs, gutters, and sidewalks. No structures are proposed for the Site (Exhibit B - Site Improvement Plan).
The Agreement includes the following major provisions:
· Under the terms of the Agreement, the Developer will exchange a 10,000-square-foot property at 1325 Harbor Avenue with the 1 0,600-square-foot Agency-owned property at 1328-1340 Canal Avenue.
· The Developer will pay the Agency $20,000 as compensation for the difference between the value of exchanged properties.
· The Developer will utilize the Site in accordance with the West Long Beach Industrial Redevelopment Plan and all applicable City of Long Beach codes and regulations including providing appropriate landscaping and screening.
· An Agreement Containing Covenants will be recorded at closing. This document will prohibit certain uses, describe maintenance responsibilities and levels of maintenance, and require that any future improvements be subject to the Design Guidelines for the Project Area.
· The Developer agrees to close escrow within six months of the date of the Agreement and complete construction on the Site within 180 days.
At its meeting held on October 8, 2008, the Westside Project Area Committee made a recommendation to approve the Developer's conceptual site plan for the project. The Redevelopment Agency approved the Agreement at its meeting of July 20,2009.
Since the Site was purchased by the Agency with tax increment monies, California law requires that this sale must also be approved by the City Council by resolution after a public hearing.
Pursuant to California Redevelopment Law, 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 interest to be conveyed, determined at the highest and best use permitted under the Redevelopment Plan.
· The estimated value of the interest to be conveyed 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 cost/benefit to the Agency.
· An explanation of why the sale of the site will assist in the elimination of blight.
· An explanation of why the sale of the site is consistent with the Agency's AS 1290 Implementation Plan.
This letter was reviewed by Chief Assistant City Attorney Heather A. Mahood on September 30, 2009 and by Budget and Performance Management Bureau Manager David Wodynski on July 1, 2009.
TIMING CONSIDERATIONS
City Council action is requested on July 21, 2009, as the Agency and Developer wish to proceed with an escrow closing on or before December 31,2009.
FISCAL IMPACT
The proceeds of $20,000 from the proposed property exchange will be deposited into the Redevelopment Agency Fund (RD) in the Department of Development Services (DV). The Developer will pay the Agency with private funds. There will be no impact to the General Fund (GP).
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE PROPOSED OWNER PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF LONG BEACH, CALIFORNIA, AND COWELCO PROPERTIES, INC.; FINDING THAT THE CONSIDERATION FOR THE SALE OF CERTAIN REAL PROPERTY IN THE WEST LONG BEACH INDUSTRIAL REDEVELOPMENT PROJECT AREA 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 OWNER PARTICIPATION AGREEMENT
Respectfully Submitted,
CRAIG BECK
DIRECTOR OF DEVELOPMENT SERVICES
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |