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CC 2014-09-23_08.h. Successor Agency Transferring Real PropertyMEMORANDUM TO: CITY COUNCIUSUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY FROM: STEVEN ADAMS, CITY MANAGER~ SUBJECT: CONSIDERATION OF, A RESOLUTION OF THE SUCCESSOR , AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF· THE CITY OF ARROYO GRANDE TRANSFERRING REAL, PROPERTY TO . THE SUCCESSOR AGENCY'S COMMUNITY REDEVELOPMENT PROPERTY TRUST FUND PURSUANT TO HEALTH AND SAFETY CODE SECTION 34191.4(a) DATE: SEPTEMBER 23, 2014 RECOMMENDATION: . 'It is recommended the City Council/Successor Agency to the Dissolved Redevelopment , Agency . adopt a Resolution transferring real property to the Successor Agency's Community Redevelopment Property Trust Fund Pursuant to Health and Safety Code Section 34191.4(a). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Revenue from th~ sale will be paid to property tax agencies: As one of the agencies, the City will receive a portion of the revenue, which has been included in the Annual Budget revenue estimates. The process will involve a significant amount of staff time, but the City is reimbursed from tax increment revenues for administrative costs. BACKGROUND: The Redevel9pment Agency acquired a vacant parcel at Faeh Avenue 'and El Camino Real in 2006 to facilitate development of a hotel or ·mixed use project with affordable housing. As part of the 2011-12 State budget bill, the State Legislature adopted ABX1 26, ·which eliminated all redevelopment agencies and was later upheld' by the State Supreme Court in its opinion in CRA v. Matosantos. Under the terms of ABXI 26, all assets of the Redevelopment Agency are required to be disposed of and the revenue distributed to the property taxing agencies. The Redevelopment Agency was dissolved on Februar-Y 1, 2012. Pursuant to AB 1X 26, the City Council became the successor agency to the dissolved Redevelopment Agency. Item 8.h. - Page 1 CITY COUNCIL CONSIDERATION OF A RESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF ARROYO GRANDE TRANSFERRING REAL PROPERTY TO THE SUCCESSOR AGENCY'S COMMUNITY REDEVELOPMENT PROPERTY TRUST FUND PURSUANT TO HEAL TH AND SAFETY CODE SECTION 34191.4(a) SEPTEMBER 23, 2014 PAGE2 ANALYSIS OF ISSUES: On April 26, 2013, the Successor Agency received a "Finding of Completion" from the Department of Finance ("DOF"). On February 7, 2014, the Successor Agency received approval of the Long-Range Property Management Plan ("LRPMP"), which outlines the process for disposal of properties formerly owned by the Redevelopment Agency. The only property involved is the Faeh Avenue property. Staff proposes to begin the process of selling the property. The first step is to transfer the property to a Community Redevelopment Property Trust Fund that has been established pursuant so State regulations. Preparation of an appraisal is under way for the Faeh Avenue property. Once completed, staff will coordinate a process of selecting a real estate agent. ALTERNATIVES: The following alternatives are presented for consideration: -Approve staff's recommendations; Do not approve staff's recommendations and delay the process of selling the property; or Provide staff other direction. ADVANTAGES: . The recommendation will ensure the City complies with all regulations that apply to disposal of former Redevelopment Agency properties. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted in front of the City Hall on Thursday, September 18, 2014 and on the City's website on Friday, September 19, 2014. Item 8.h. - Page 2 RESOLUTION NO. ________ A RESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE CITY OF ARROYO GRANDE TRANSFERRING REAL PROPERTY TO THE SUCCESSOR AGENCY’S COMMUNITY REDEVELOPMENT PROPERTY TRUST FUND PURSUANT TO HEALTH AND SAFETY CODE SECTION 34191.4(a) WHEREAS, the Redevelopment Agency of the City of Arroyo Grande, also known as the Arroyo Grande Redevelopment Agency (“RDA”) was activated by the City Council of the City of Arroyo Grande (“City Council” or “City,” as applicable) to function as the redevelopment agency operating within the territorial limits of the City, under the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq; and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature enacted and the Governor signed, from the 2011-12 First Extraordinary Session, Assembly Bill 1X 26 (“AB 1X 26”), requiring that each redevelopment agency be dissolved; and WHEREAS, on December 29, 2011, the California Supreme Court in the case California Redevelopment Agency v. Matosantos, upheld the validity of AB 1X 26 and modified certain of the dates pertaining to actions related to the dissolution of redevelopment agencies; and WHEREAS, as of February 1, 2012, the RDA was dissolved pursuant to the provisions of AB 1X 26 as modified by the California Supreme Court; and WHEREAS, the City Council of the City of Arroyo Grande by operation of law and by action duly and regularly taken, all pursuant to AB 1X 26, became the successor agency to the dissolved RDA (“Successor Agency”); and WHEREAS, on April 26, 2013, the Successor Agency received a “Finding of Completion” from the Department of Finance (“DOF”) pursuant to Health and Safety Code Section 34179.7 in which the Department of Finance found and determined that the Successor Agency made full payment of the amounts determined under Health and Safety Code Section 34179.6(d) or (e) and Health and Safety Code Section 34183.5; and WHEREAS, on February 7, 2014, the Successor Agency received approval of the long- range property management plan (“LRPMP”) prepared and submitted by the Successor Agency to the DOF pursuant to Health and Safety Code section 34191.5; and WHEREAS, the Successor Agency owns only one real property, which is commonly identified as the “Faeh Avenue Property” and Item 8.h. - Page 3 RESOLUTION NO. _____ PAGE 2 WHEREAS, pursuant to Health and Safety Code section 34191.5(a), a Community Redevelopment Property Trust Fund (“Property Trust Fund”) to be administered by the Successor Agency was established, to serve as the repository of certain of the former RDA’s real properties; and WHEREAS, pursuant to Health and Safety Code section 34191.4(a), now that the Successor Agency has received approval of its LRPMP, the Successor Agency is required to transfer the Faeh Street Property to the Property Trust Fund; and WHEREAS, the Successor Agency now desires to transfer the Faeh Avenue Property to the Property Trust Fund. NOW, THEREFORE, the Successor Agency resolves as follows: Section 1. The foregoing Recitals are incorporated herein and made a part hereof. Section 2. The Successor Agency hereby transfers the Faeh Avenue Property to the Property Trust Fund. Section 3. The Secretary shall certify to the adoption of this Resolution. On a motion by Council Member , seconded by Council Member , and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this _____ day of ______, 2014. Item 8.h. - Page 4 RESOLUTION NO. _____ PAGE 3 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.h. - Page 5 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.h. - Page 6