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
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