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R 3930 ,- RESOLUTION NO. 3930 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A VACANT LAND PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS FOR THE CITY'S ACQUISITION OF AN APPROXIMATELY 21,446 SQUARE FOOT VACANT LOT ON LE POINT STREET (APN 007-192-038) FOR A FUTURE PUBLICLY OWNED IMPROVEMENT OR FACILITY; AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE A CERTIFICATE OF ACCEPTANCE CONSENTING TO THE RECORDATION OF THE GRANT DEED; CONSENTING TO THE FUNDING OF A PORTION OF THE ACQUISITION COSTS BY THE ARROYO GRANDE REDEVELOPMENT AGENCY; AND APPROVING A FINANCING AGREEMENT BETWEEN THE CITY OF ARROYO GRANDE AND THE ARROYO GRANDE REDEVELOPMENT AGENCY RELATED THERETO WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code ~ 33000 et seq.); and WHEREAS, the Agency and the City Council of the City of Arroyo Grande ("City" or "City Council," as appropriate), in accordance with all applicable law, previously adopted the Redevelopment Plan for the Arroyo Grande Redevelopment Project Area, as amended ("Project Area"); and WHEREAS, the City is proposing to acquire from Dorfman Homes, Inc. that certain parcel of real property consisting of a vacant lot of approximately 21,446 square feet on the south side of Le Point Street, between Nevada Street and North Mason Street, and identified as Assessor Parcel No. 007-192-038 (the "Property"); and WHEREAS, the Property is located in the Village area of the City within the Project Area and specifically within the Village Commercial District Improvement Zone component of the Project Area; and WHEREAS, the City and Dorfman Homes, Inc., propose to enter into that certain Vacant Land Purchase Agreement and Joint Escrow Instructions ("Agreement") to City's acquisition of the Property for a purchase price of One Million One Hundred Fifty Thousand Dollars ($1,150,000), plus escrow and other closing costs (collectively, the "Acquisition Costs"); and WHEREAS, the Property is proposed for acquisition by the City for a future public improvement which may include a public parking facility; and , WHEREAS, the California Community Redevelopment Law, at Health and Safety Code Section 33445, provides that a redevelopment agency may pay for all or part of the value of the land for a publicly owned improvement, whether inside or outside a redevelopment project area, if the redevelopment agency and the legislative body, RESOLUTION NO. 3930 PAGE 2 which in this case is the City Council, each adopt a resolution making certain findings; and WHEREAS, the City and Agency are proposing to use Agency funds for a portion of the Acquisition Costs in the amount of One Million Eighty Thousand Dollars ($1,080,000); and WHEREAS, to enable the Agency to fund its portion of the Acquisition Costs in the amount of One Million Eighty Thousand Dollars ($1,080,000), the City and Agency propose to enter into a Financing Agreement to effectuate a loan from the City to the Agency, with interest at a rate equal to rate earned by the City from the Local Agency Investment Fund, in the amount of One Million Eight Thousand Dollars ($1,080,000); and WHEREAS, the City and Agency are authorized to enter into such Financing Agreement pursuant to Health and Safety Code Section 33601; and WHEREAS, upon consummation of the transaction a Grant Deed for the Property shall be executed by the seller Dorfman Homes, Inc. and shall be presented to the City; and WHEREAS, the City is required by California law to execute a Certificate of Acceptance of the Grant Deed before the Grant Deed may be recorded in the official records of San Luis Obispo County; and WHEREAS, all actions required by applicable law to be taken by the City Council precedent to the adoption of this Resolution have been taken in accordance with applicable law. NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows: Section 1. The foregoing Recitals are true and correct and are incorporated herein. Section 2. The City Council finds and determines as follows: A. That the Agency funding of a portion of the Acquisition Costs in an amount of One Million Eighty Thousand Dollars ($1,080,000) is of benefit to the Project Area, in that the acquisition of the Property will provide land for the development of needed public facilities which may include public parking facilities. to serve the immediately adjacent Village business area, a prominent focal point of the 'Project Area and the City. B. That no other reasonable means of financing the portion of the Acquisition Costs funded by Agency, other than using Agency funding, are' currently available to the community, in that (i) City monies are dedicated to critical operational areas such as police, fire, and other necessary expenditures, including capital improvement projects, as identified in the City's capital improvement budget: (ii) the revenue sources available to the City have been reduced each year by various State legislative actions resulting in lower City general funds to meet present and future capital improvement and infrastructure needs; (iii) limits on local control over traditional revenue sources make it RESOLUTION NO. 3930 PAGE 3 infeasible for the City to raise new local tax revenues; (iv) the only practical means of funding the portion of the Acquisition Funds to be paid by. the Agency is by using Agency funding; and (v) without Agency funding, the acquisition of the Property would be unable to proceed, thus hindering future development of publicly owned facilities and improvements in and serving the Project Area. C. That the Agency's funding identified herein will assist in eliminating one or more blighting conditions inside the Project Area, including the existence of inadequate public facilities including parking facilities. D. That the Agency's funding identified herein is consistent with the Agency's adopted Five Year Implementation Plan for 2004/5-200/09, in that the Implementation Plan (a) identifies as goals for the Village Commercial District Improvement Zone as including (i) preservation and expansion of the Village Commercial District and (ii) provision of necessary public facilities to facilitate implementation of the preservation and expansion of the Village Commercial District; (b) identifies as Agency Implementation Program Objectives for the Village Commercial District Improvement Zone as including (i) land assembly and (ii) creation of public facilities. Section 3. The City's acquisition of the Property and the Agency's funding of a portion thereof are, in the City Council's independent judgment, exempt from the California Environmental Quality Act (UCEQAU) pursuant to 14 C.C.R. !l!l15060(c)(2) and 15061 (b)(3), in that the "project" for purpose of CEQAis the acquisition of the Property only which will not result in any significant adverse impact to the environment, and neither the City nor the Agency have identified any particular project to be proposed for the Property, which if and when proposed in the future will be subject to compliance with CEQA. The foregoing determination is the independent judgment of the City Council. Section 4. The City Council hereby (i) consents to the Agency funding of a portion of the Acquisition Costs in the amount of One Million Eighty Thousand Dollars ($1,080,000) for the City's acquisition of the Property from Dorfman Homes, Inc. (ii) approves the Vacant Land Purchase Agreement and Joint Escrow Instructions, dated on or about May 22, 2006, in the form presented to the City Council concurrent with this Resolution, for the City's acquisition of the Property from Dorfman Homes, Inc., and authorizes the Mayor or City Manager, each as the sole required signatory on behalf of the City, to execute the Vacant Land Purchase Agreement and Joint Escrow Instructions on behalf of the City, (Hi) approves the Financing Agreement between the City and the Agency, in the form presented to the City Council concurrent with this Resolution, to effect the City's loan to the Agency of the amount of One Million Eighty Thousand Dollars ($1,080,000), with interest payable by the Agency at a rate equal to the rate of interest earned on City funds on deposit with the Local Agency Investment Fund, and authorizes the Mayor or RESOLUTION NO. 3930 PAGE 4 City Manager, each as the sole required signatory on behalf of the City, to execute the Financing Agreement on behalf of the City; (iv) authorizes the Mayor and City Manager, each as the sole required signatory on behalf of the City, to each take such further actions and to sign such further documents as may be required to consummate the acquisition of the Property, including executing a Certificate of Acceptance for the Grant Deed so that the Grant Deed may be recorded in the official records of San Luis Obispo County; and (v) authorizes and directs the City Manager and authorized designees to take such other and further actions, and sign such other and further documents as are necessary and proper to implement this Resolution on behalf of the City. On motion of Council Member Arnold, seconded by Council Member Costello, and on the following roll call vote, to wit: AYES: NOES: ABSENT: Council Members Arnold, Costello, Dickens, Guthrie, and Mayor Ferrara None " None the foregoing Resolution was passed and adopted this 13th day of June, 2006. RESOLUTION No.3'l3{) PAGE 5 ~ TONY M. F A, MAYOR ~!\.L- E, CITY CLERK APPROVED AS TO FORM: , t1~~ OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that Resolution No. 3930 is a true, full, and correct copy of said Resolution passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 13th day of June 2006. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 15th day of June 2006. .I "