08.h. City Council Poplar Ponding BasinMEMORANDUM
TO: CITY COLlNClL
SUBJECT: CONSIDERATION OF AN AGREEMENT WITH THE SLICCESSOR
AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY TO
CONVEY OWNERSHIP OF THE POPLAR PONDING BASIN TO THE
ClTY OF ARROYO GRANDE
DATE: JUNE 26,2012
RECOMMENDATION:
It is recommended the City Council approve a Public Property Conveyance
Agreement ("Agreement") to obtain ownership of the Poplar Ponding Basin.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no financial impact or impact on staffing from this action.
BACKGROUND:
In 2002, the Redevelopment Agency acquired the Poplar Ponding Basin property
from E.F. Moore and Company as part of the proposed Gateway Center Shopping
Center project. The property was acquired to: 1) assist development of the shopping
center; 2) provide drainage capacity to remove the retention basin in front of the
Spencer's Center in order to develop the Applebee's Restaurant; and 3) to provide
drainage capacity to more efficiently develop the property at the southwest corner of
Courland Street and East Grand Avenue.
ANALYSIS OF ISSUES:
The State Legislature adopted ABXl 26 last year, which eliminated all
redevelopment agencies, which was later upheld by the State Supreme Court in its
opinion in CRA v. Matosantos. Under the terms of ABXl 26, dl1 assets of the
Redevelopment Agency must be disposed of. The method of disposing of assets
may be determined by the Successor Agency with approval of the Oversight Board.
Agenda Item 8.h.
Page 1
ClTY COUNCIL
CONSIDERATION OF AN AGREEMENT WITH THE SUCCESSOR AGENCY TO
THE DISSOLVED REDEVELOPMENT AGENCY TO CONVEY OWNERSHIP OF
THE POPLAR PONDING BASIN TO THE ClTY OF ARROYO GRANDE
JUNE 26,2012
PAGE 2
Since the Poplar Ponding basin was acquired and developed for a public purpose, it
has no value for private ownership. Therefore, an agreement with the Successor
Agency is recommended to convey ownership of the property to the City. The
agreement has been prepared by the City/Successor Agency's special counsel. If
approved, it will be presented to the Oversight Board at their next meeting for
consideration.
ALTERNATIVES:
'The following alternatives are presented for consideration:
- Approve the agreement; - Do not convey ownership of the property to the City; or
- Provide staff other direction.
ADVANTAGES:
'The agreement will maintain the property under public ownership for the drainage
purposes it was intended. The recommended action will help prevent staff time and
legal costs to implement a more complex process that will result in the same
outcome.
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, June 21, 2012 and on
the City's website on Friday, June 22, 2012.
Attachments:
1. Agreement
Agenda Item 8.h.
Page 2
PUBLIC PROPERTY CONVEYANCE AGREEMENT
[POPLAR PONDING BASIN]
This PUBLIC PROPERTY CONVEYANCE AGREEMENT ("Agreement") is entered
into this 26TH DAY OF June, 2012, by and between the CITY OF ARROYO GRANDE AS
SUCCESSOR AGENCY TO THE DISSOLVED REDEVELOPMENT AGENCY OF THE
CITY OF ARROYO GRANDE ("Successor Agency"), and the CITY OF ARROYO GRANDE,
a municipal corporation ("City').
RECITALS --------
A. Title to that certain publicly owned real property known as the Poplar Ponding
Basin (the "Property") is currently vested in the name of the Redevelopment Agency of the City
of Arroyo Grande ("RDA"). The legal description of the Property is set forth in Exhibit "A"
attached hereto and by this reference incorporated herein.
B. Pursuant to Assembly Bill 26 from the 201 1 - 12 First Extraordinary Session of the
California Legislature ("ABxl 26") as modified by the California Supreme Court Decision in
California Redevelopment Association v. Matosantos (201 1) 53 ~al.4~ 231, the RDA was
dissolved as of February 1,201 2.
C. The City in its capacity as the Successor Agency to the dissolved RDA pursuant
to Health and Safety Code Section 34173, is vested, pursuant to subdivision (b) of Health and
Safety Code Section 341 73, with all authority, rights, powers, duties, and obligations previously
vested with the former RDA except for those provisions of the Community Redevelopment Law
that were repealed, restricted, or revised pursuant to ABxl 26.
D. The Oversight Board to the Successor Agency to the dissolved RDA ("Oversight
Board") has been appointed and is duly constituted pursuant to Health and Safety Code Section
341 79.
E. The Successor Agency has authority, with the approval of the Oversight Board
established pursuant to Health and Safety Code Section 34181, may convey real property
constructed and used for a public purpose, such as the Poplar Ponding Basin, to the appropriate
public jurisdiction which, in this case, is the City.
F. Successor Agency desires to transfer fee title to the Property together with all
improvements thereon, and all easements, licenses, and interests appurtenant thereto, to the City
and City desires to obtain fee title to the Property, together with all improvements thereon, and
all easements, licenses, and interests appurtenant thereto, from the Successor Agency. Upon
approval of this Agreement the Successor Agency shall request approval for the transfer from the
Oversight Board.
ATTACHMENT 1
Agenda Item 8.h.
Page 3
AGREEMENT ---------
Based upon the foregoing Recitals, which are incorporated herein by this reference, and
for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Successor Agency and City agree as follows:
1. CONVEYANCE OF TITLE.
1.1 Convevance. Subject to all of the terms, conditions, and provisions of this
Agreement, and for the consideration herein set forth, Successor Agency agrees to convey fee
title to the Property, together with all improvements thereon, and all easements, licenses, and
interests appurtenant thereto, to City, subject to matter of record. City agrees to accept such
conveyance. Conveyance shall be effected by execution and recordation of the Quitclaim Deed
attached hereto as Exhibit "B" and by this reference incorporated herein.
1.2 Consideration. Successor Agency and City agree that the acceptance by City of
the obligations to operate and maintain the Property for its intended use constitutes sufficient
consideration for the conveyance.
2. PROPERTY CONVEYANCE MATTERS.
2.1 City Acceptance of Property in Current Condition. City accepts the condition of
the Property, including the title condition, the environmental condition of the Property, and all
other matters pertaining to the condition of the Property.
2.2 Reports. All reports and documents pertaining to the Property held by the
Successor Agency shall have been deemed to have been transmitted to City concurrent with the
recordation of the Quitclaim Deed.
2.3 Pament of Costs. Any costs associated with the conveyance of the Property shall
be paid by City.
2.4 Title Policv. City, at its cost, may, in City's sole discretion, obtain an owner's
policy of title insurance concurrent with the conveyance.
2.5 AS IS Conveyance. City acknowledges and agrees that it has full knowledge of
the Property. Except as otherwise provided in this Agreement, the Property is to be conveyed to
and accepted by City in an "as-is" condition without any representations or warranties of any
nature or kind whatsoever from Successor Agency.
3. MISCELLANEOUS TERMS.
3.1 Time of the Essence. Time is of the essence with respect to each of the terms,
covenants, and conditions of this Agreement.
3.2 Binding on Heirs and Successors. This Agreement shall be binding upon the
parties hereto and their respective heirs, representatives, transferees, successors, and assigns.
Agenda Item 8.h.
Page 4
3.3 Entire Agreement, Waivers. and Amendments. This Agreement incorporates all
of the terms and conditions mentioned herein, or incidental hereto, and supersedes all
negotiations and previous agreements between the parties with respect to all or part of the subject
matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by
the appropriate authorities of the party to be charged. Any amendment or modification to ths
Agreement must be in writing and signed by Successor Agency and City.
3.4 Severability. If any provision in this Agreement is held by a court of competent
jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless
continue in full force without being impaired or invalidated in any way to the fullest extent
permitted by law.
3.5 Covenants to Survive. The covenants and agreements contained in this
Agreement shall survive the recordation of the Quitclaim Deed and conveyance of the Property.
3.6 Oversight Board Approval. The Quitclaim Deed shall not be effective and the
Successor Agency and City shall not record the Quitclaim Deed unless and until the Oversight
Board has approved the conveyance of the Property from Successor Agency to City.
3.7 Execution in Counterpart. This Agreement may be executed in several
counterparts, and all so executed shall constitute one agreement binding on both parties hereto,
notwithstanding that both parties are not signatories to the original or the same counterpart.
3.8 Exhibits. Exhibits "A" and "B" attached to this Agreement are incorporated
herein by this reference and made a part hereof. Said Exhibits are identified as follows:
"A" - LEGAL DESCRIPTION
"B" - QUITCLAIM DEED
[end-signature page follows]
Agenda Item 8.h.
Page 5
IN WITNESS WHEREOF, Successor Agency and City have entered into this Agreement
as of the date first set forth above.
"SUCCESSOR AGENCY"
CITY OF ARROYO GR4NDE AS SUCCESSOR
AGENCY TO THE DISSOLVED
REDEVELOPMENT AGENCY OF THE CITY OF
ARROYO GRANDE
By:
Tony Ferrara, Mayor, as Chair of the Successor
Agency
ATTEST:
Kelly Wetmore, City Clerk,
Secretary to the Successor Agency
APPROVED AS TO FORM
Successor Agency Counsel
"CITY"
CITY OF ARROYO GR4NDE
By:
Tony Ferrara, Mayor
ATTEST:
Kelly Wetmore, City Clerk
APPROVED AS TO FORM
Timothy J. Camel, City Attorney
[END OF SIGNATURES]
Agenda Item 8.h.
Page 6
EXHIBIT "A"
TO QUITCLAIM DEED
LEGAL DESCRIPTION
That certain real property located in the City of Arroyo Grande, County of San Luis Obispo,
State of California legally described as follows:
Parcel 4 and Parcel 5 of Parcel Map AG-00-301 in the City of Arroyo Grande,
County of San Luis Obispo, State of California, as shown on the map filed in
Book 56, Page 54 of Parcel Maps in the office of the County Recorder of said
County.
Exhibit "A" Agenda Item 8.h.
Page 7
EXHIBIT "B"
OUITCLAIM DEED
SEE FOLLOWING PAGES
Exhibit "B" Agenda Item 8.h.
Page 8
When Recorded Mail To:
City of Arroyo Grande
300 East Branch St.
Arroyo Grande, CA 93420
Attn: City Clerk
(Space Above For Recorder's Use)
The undersigned grantor(s) declare(s) that this transaction is This document is being recorded for the benefit
exempt fiom the payment of a documentary transfer tax of the City of Arroyo Grande and is exempt fiom
pursuant to Revenue and Taxation Code Section 11922. payment of a recordation fee pursuant to
Government Code $5 27383 and 6103.
QUITCIALM DEED
APN :
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the
CITY OF ARROYO GRANDE AS SUCCESSOR AGENCY TO THE DISSOLVED
REDEVELOPMENT AGENCY OF THE CITY OF ARROYO GRANDE ("Grantor"),
pursuant to its authority set forth in Health and Safety Code Section 34173, and having obtained
the approval for the conveyance effected by this Quitclaim Deed from the Oversight Board to the
Successor Agency to the dissolved Redevelopment Agency of the City of Arroyo Grande, does
hereby remise, release and forever quitclaim to the CITY OF ARROYO GRANDE, a municipal
corporation ("Grantee"), all of Grantor's right, title and interest in and to certain real property
described located in the City of Arroyo Grande, County of San Luis Obispo, State of California,
described in the legal description attached hereto as Exhibit "1" and incorporated herein by this
reference (the "Property").
Grantor's conveyance of the Property is further subject to the following covenants and
restrictions as required by the Community Redevelopment Law, Health and Safety Code section
33000 et seq. (the "CRL"):
1. In addition to any other nondiscrimination provisions applicable to the Property
under federal, state or local law, the following nondiscrimination provisions apply:
(a) There shall be no discrimination against, or segregation of, any persons, or
group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Agenda Item 8.h.
Page 9
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (2) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, or rental, or in the use, occupancy, or enjoyment of the Property, nor shall
Grantee itself, or any person claiming under or through it, establish or permit any such practice
or practices of discrimination or segregation with reference to the selection, location, number,
use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property or any
portion thereof. The foregoing covenants shall run with the Property and shall remain in effect
in perpetuity.
(b) Notwithstanding subsection (a) above, with respect to familial status,
subsection (a) above shall not be construed to apply to housing for older persons, as defined in
Section 12955.9 of the Government Code. With respect to familial status, nothing in
subsection (a) above shall be construed to affect Sections 5 1.2, 5 1.3, 5 1.4, 5 1.20, 5 1.1 1, and
799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51
and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code, shall apply to subsection (a) above.
2. All deeds, leases or contracts for the sale or leasing of the Property or any interest
therein shall contain or be subject to substantially the following nondiscrimination or
nonsegregation clauses:
2.1 In deeds. In deeds, language shall appear in substantially the following
form:
(a) "The grantee herein covenants by and for himself or herself, his or her
heirs, executors, administrators and assigns, and all persons claiming under or through him or
her, and thls lease is made and accepted upon and subject to the following conditions: There
shall be no discrimination against or segregation of any person or group of persons on account of
any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those
bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale,
leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein
leased nor shall the lessee himself or herself, or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or
vendees in the premises herein conveyed. The foregoing covenants shall run with the land."
(b) "Notwithstanding subsection (a) above, with respect to familial status,
subsection (a) above shall not be construed to apply to housing for older persons, as defined in
Section 12955.9 of the Government Code. With respect to familial status, nothing in
subsection (a) above shall be construed to affect Sections 5 1.2, 5 1.3, 5 1.4, 5 1.10, 5 1.1 1, and
799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51
and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code, shall apply to subsection (a) above."
2.2 In leases. In leases, language shall appear in substantially the following
form:
(a) "The lessee herein covenants by and for himself or herself, his or her heirs,
executors, administrators and assigns, and all persons claiming under or through him or her, and
Agenda Item 8.h.
Page 10
this lease is made and accepted upon and subject to the following conditions: There shall be no
discrimination against or segregation of any person or group of persons on account of any basis
listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing,
transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the
lessee himself or herself, or any person claiming under or through him or her, establish or permit
any such practice or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the
premises herein leased."
(b) "Notwithstanding subsection (a) above, with respect to familial status,
subsection (a) above shall not be construed to apply to housing for older persons, as defined in
Section 12955.9 of the Government Code. With respect to familial status, nothing in
subsection (a) above shall be construed to affect Sections 5 1.2, 5 1.3, 5 1.4, 5 1.10, 5 1.1 1, and
799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51
and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code, shall apply to subsection (a) above."
2.3 In contracts pertaining to the sale, transfer or leasing of the land or any
interest therein, language shall appear in substantially the following form:
(a) "There shall be no discrimination against or segregation of any person
or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of
the Government Code, as those bases are dehed in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government
Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises,
nor shall the transferee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or
vendees of the land. The foregoing provisions shall be binding upon and shall obligate the
contracting party or parties and any subcontracting party or parties, or other transferees under the
contract."
(b) "Notwithstanding subsection (a) above, with respect to familial status,
subsection (a) above shall not be construed to apply to housing for older persons, as defined in
Section 12955.9 of the Government Code. With respect to familial status, nothing in
subsection (a) above shall be construed to affect Sections 5 1.2, 5 1.3, 5 1.4, 5 1.10, 5 1.1 1, and
799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51
and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code, shall apply to subsection (a) above."
3. The covenants and restrictions in this Quitclaim Deed shall bind Grantee and its
successor in interest to the Property or any portion thereof.
[CONTINUED ON NEXT PAGE]
Agenda Item 8.h.
Page 11
DATED AND EXECUTED ON: ,2012.
"GRANTOR"
CITY OF ARROYO GRANDE AS SUCCESSOR
AGENCY TO THE DISSOLVED
REDEVELOPMENT AGENCY OF THE CITY OF
ARROYO GRANDE
By:
Tony Ferrara, Mayor, as Chair of the
Successor Agency
ATTEST:
Kelly Wetmore, City Clerk,
Secretary to the Successor Agency
APPROVED AS TO FORM
Timothy J. Carmel,
Successor Agency Counsel
"GRANTEE"
CITY OF ARROYO GRANDE, a municipal
corporation
By:
Tony Ferrara, Mayor
ATTEST:
Kelly Wetmore, City Clerk
APPROVED AS TO FORM
Timothy J. Carmel, City Attorney
[END OF SIGNATURES]
Agenda Item 8.h.
Page 12
State of California 1
County of San Luis Obispo )
City of Arroyo Grande 1
On , before me, , Notary Public,
(here insert name and title of the officer)
personally appeared Tonv Ferrara, who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) islare subscribed to the within instrument, and acknowledged to me
that helshelthey executed the same in hisherltheir authorized capacity(ies), and that by
hisherltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Agenda Item 8.h.
Page 13
EXHIBIT " 1 "
TO QUITCLAIM DEED
LEGAL DESCRIPTION
That certain real property located in the City of Arroyo Grande, County of San Luis Obispo,
State of California legally described as follows:
Parcel 4 and Parcel 5 of Parcel Map AG-00-301 in the City of Arroyo Grande,
County of San Luis Obispo, State of California, as shown on the map filed in Book
56, Page 54 of Parcel Maps in de office of the County Recorder of said County.
Agenda Item 8.h.
Page 14
CERTIFICATE OF ACCEPTANCE
This to certify that the interest in real property and other interests conveyed by the foregoing -- -
Quitclaim ~ded, dated , 2012, fiom the City of Arroyo ~rande as
Successor Agency to the dissolved Redevelopment Agency of the City of Arroyo Grande -.
("Grantory'), ;o the City of Arroyo Grande, a municipal corporation ra ran tee"), is hereby
accepted by the undersigned officer of the Grantee City of Arroyo Grande, on behalf of the
Grantee City of Arroyo Grande, pursuant to authority conferred by Resolution No. of
the City Council of the City of Arroyo Grande adopted on , and the Grantee City
of Arroyo Grande, consents to the recordation thereof by its undersigned duly authorized officer.
CITY OF ARROYO GRANDE, a municipal
corporation
By:
Steven Adams, City Manager
Dated:
ATTEST:
Kelly Wetmore, City Clerk
State of California 1
County of San Luis Obispo )
City of Arroyo Grande 1
On , before me, , Notary Public,
(here insert name and title of the officer)
personally appeared Steven Adams, who proved to me on the basis of satisfactory evidence to be
the person(s) whose name(s) isfare subscribed to the within instrument, and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Agenda Item 8.h.
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Agenda Item 8.h.
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