TITLE
Recommendation to adopt resolution authorizing the acquisition of tax-defaulted properties, consisting of Assessor Parcel Numbers 7210-026-002, 7210-040-026, 7225-031-032, 7268-036-022, and 7401-009-012, in the City of Long Beach from the County of Los Angeles; authorize City Manager to execute a Chapter 8 Agreement and any and all documents necessary for the acquisition of these tax-defaulted properties; and authorize City Manager to execute all necessary documents for the conveyance of Assessor Parcel Numbers 7210-026-002, 7225-031-032, 7268-036-022, and 7401-009-012 to the Long Beach Housing Development Company. (Districts 4,6,7)
DISCUSSION
In January 2006, the Los Angeles County Treasurer and Tax Collector (County) released a list of properties to be included in the 2006A 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 via a Chapter 8 agreement (Agreement), if a public need can be determined. An Agreement is provided 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.
City staff has reviewed and identified five parcels for City acquisition. Four of the five parcels have been requested by The Long Beach Housing Development Company (LBHDC) for the development of affordable housing. Upon acquisition by the City, these four parcels will be conveyed to LBHDC. The Department of Parks, Recreation and Marine has requested one parcel for park related uses. A list of the parcels and acquisition costs is attached as Attachment "A with corresponding maps as Attachment "B." Additional fees of approximately 15 percent will be charged for each parcel for administrative and processing costs.
The Department of Community Development, on behalf of the City, submitted a written request to the County for an Agreement for the purchase of these properties. in order to proceed, the County requires that the City Council adopt a resolution authorizing the acquisition of tax-defaulted property and authorizing the City Manager to enter into an Agreement with the County (Attachment "C"). 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 Agreement .with the City. In the event that the property owners pay the delinquent tax amount prior to the effective date of the Agreement, the owners would retain the property and the City could no longer proceed with the purchase. However, should the property owners fail to
pay the delinquent amount by the effective date of the Agreement, the City may proceed with the acquisition.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on February 2, 2006 and Budget Management Officer David Wodynski on February 9,2006.
TIMING CONSIDERATIONS
City Council action is requested on February 21, 2006, in order to facilitate acquisition of the properties.
FISCAL IMPACT
The estimated cost to acquire the four parcels requested by LBHDC for use as affordable housing is $59,600. Sufficient funds are currently budgeted in the Housing Development Fund (SR 135) in the Department of Community Development (CD). The proposed acquisition of the four parcels will have no impact on the General Fund.
The estimated cost to acquire the one parcel requested by the Department of Parks, Recreation and Marine is $12,964. Sufficient funds to support this acquisition are currently budgeted in the Capital Projects Fund (CP) in the Department of Public Works (PW). Minimal maintenance costs to maintain this undeveloped parcel will be absorbed within current appropriations.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PATRICK H. WEST
DIRECTOR OF COMMUNITY DEVELOPMENT
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION & MARINE
CHRISTINE F. ANDERSEN
DIRECTOR OF PUBLIC WORKS
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APPROVED: |
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GERALD R. MILLER |
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CITY MANGER |