HomeMy WebLinkAbout03. OB-Reso Amending the Long Range Property Mgmt PlanOVERSIGHT BOARD MEMORANDUM
DATE: June 19, 2014
TO: CHAIR AND MEMBERS OF THE OVERSIGHT BOARD
FROM: GILBERT A LIVAS, Executive Director, Downey successor Agency tv
RESOLUTION AMENDING THE LONG RANGE PROPERTY SUBJECT:
MANAGEMENT PLAN
RECOMMENDATION
That the Oversight Board adopt the following resolution:
A RESOLUTION OF THE OVERSIGHT BOARD TO THE
DOWNEY SUCCESSOR AGENCY TO AMEND THE LONG
RANGE PROPERTY MANAGEMENT PLAN AND STATE THE
INTENT TO ENTER INTO COMPENSATION AGREEMENTS AS
REQUIRED BY LAW
SUMMARY
The Downey Successor Agency approved a Long Range Property Management
Plan (LRPMP) at its October 8, 2013 meeting, and the Oversight Board approved
the Plan at its meeting of October 17, 2013, pursuant to Health and Safety Code
Section 34191.5(b). The attached resolution approves an amendment to the
LRPMP as prepared by the Downey Successor Agency and directs the Successor
Agency to transmit the amended LRPMP to the Department of Finance (DOF).
BACKGROUND I DISCUSSION
State Assembly Bill X1 26 requires Successor Agencies to dispose of real property
assets owned by former redevelopment agencies as part of their dissolution
functions. Clarification on the disposal of assets was addressed in State Assembly
Bill 1484, which directed Successor Agencies to prepare a LRPMP. On October
17, 2013, the Oversight Board reviewed and approved the LRPMP with direction to
submit the LRPMP to the DOF.
On October 24, 2013, the LRPMP was submitted to the DOF. Representatives
from the DOF contacted Agency staff in April 2014 and provided an update of their
review. According to the DOF representative, staff was informed that the LRPMP
would require additional language stating the Agency's intent to enter into a
compensation agreement with the effected Tax Entities in order to obtain DOF's
approval of the LRPMP.
Chair and Members of the Oversight Board
Resolution Amending the LRPMP
June 19, 2014
Page 2
Therefore, the attached language has been added to page 3 of the narrative
section of the LRPMP, and reads as follows:
" ... With respect to the properties described as 9062-9068
Firestone Boulevard, the LRPMP proposes the transfer of this
property to the City of Downey pursuant to Health & Safety
Code Section 134191.5(c)(2)(A). And it is the intent of the
Successor Agency to ensure that the City will enter into
"compensation agreement," with affected taxing entities to the
extent required by law ... "
Attachments: "A" -Resolution
"8"-Revised LRPMP
OVERSIGHT BOARD RESOLUTION NO. ___ _
A RESOLUTION OF THE OVERSIGHT BOARD TO THE DOWNEY SUCCESSOR
AGENCY TO AMEND THE LONG RANGE PROPERTY MANAGEMENT PLAN AND
STATE THE INTENT TO ENTER INTO COMPENSATION AGREEMENTS AS
REQUIRED BY LAW
WHEREAS, the Oversight Board to the Downey Successor Agency ("Oversight Board")
has been established to direct the Downey Successor Agency ("Successor Agency") to take
certain actions to wind down the affairs of the former Redevelopment Agency functions and
powers of the Community Development Commission of the City of Downey ("Agency") in
accordance with the requirements of Assembly Bill 26, also known as Chapter 5, Statutes 2011,
First Extraordinary Session, which added Part 1.8 and 1.85 of Division 24 of the California
Health and Safety Code ("ABx1 26"); and
WHEREAS, pursuant to Assembly Bill 1484 and California Health & Safety Code section
34191.5, each Successor Agency shall have completed a Long Range Property Management
Plan (LRPMP) governing the disposition and use of the former Agency owned properties; and
WHEREAS, the Oversight Board first reviewed and approved the LRPMP on October
17, 2013, before forwarding the LRPMP to the State Department of Finance; and
WHEREAS, the LRPMP establishes that the properties located at 9062-9068 Firestone
Boulevard are to be "Retained for Future Development;" and
WHEREAS, pursuant to the instruction from the State Department of Finance, the
Successor Agency must state in the LRPMP an intent to enter into compensation agreements
with the Taxing Entities for properties listed as "Retain for Future Development" prior to the
transfer of properties, in order for the LRPMP to be approved by the State Department of
Finance.
NOW, THEREFORE, BE IT RESOLVED by the Oversight board as follows:
SECTION 1. The Oversight Board reviewed and approved the Long Range Property
Management Plan at its meeting on October 17, 2013.
SECTION 2. The properties delineated in the LRPMP at 9062-9068 Firestone
Boulevard shall remain classified as "Retain for Future Development."
SECTION 3. With respect to the properties described as 9062-9068 Firestone
Boulevard, in the LRPMP, the City of Downey will enter into compensation agreements with the
affected taxing entities for the distribution of any net sale proceeds or rental income to the
extent required by law.
SECTION 4. The Oversight Board directs that the LRPMP be ratified with the corrected
dispositions for the aforementioned property and that the intent to enter into compensation
agreements to the extent required by law be affirmed.
Attachment "A"
OB RESOLUTION NO.
PAGE2
SECTION 5. The Oversight Board Secretary shall certify to the adoption of this
Resolution.
PASSED AND ADOPTED by the Oversight Board at a meeting held on the 19th day of
June, 2014.
CHAIR, OVERSIGHT BOARD
ATTEST:
SECRETARY, OVERSIGHT BOARD
STATE OF CALIFORNIA
COUNTY OF ) SS
CITY OF )
I, , Secretary to the Oversight board, hereby certify that the foregoing
resolution was duly adopted at a meeting of the Oversight Board, held on the 19th day of June,
2014.
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
SECRETARY, OVERSIGHT BOARD
DOWNEY SUCCESSOR AGENCY
LONG RANGE PROPERTY MANAGEMENT PLAN
On June 27, 2012, Governor Brown signed into law Assembly Bill 1484 (AB 1484), a
budget trailer bill that made significant changes to the redevelopment agency
dissolution process implemented by ABx1 26. One of the key components of AB 1484
is the requirement that all successor agencies develop a Long Range Property
Management Plan (LRPMP) that governs the disposition or use of any property asset
of the former redevelopment agency. This Long Range Property Management Plan
(LRPMP) addresses how the Downey Successor Agency will dispose of non-housing
property assets formerly owned by the Downey Community Development Commission
(CDC).
During its term in operation, the former redevelopment agency had undertaken a variety
of programs and projects; including the acquisition of properties in effort to revitalize and
eliminate blight conditions from within its former Project Areas. At the time ABx1 26
went into effect, the CDC owned or controlled only one non-residential property. This
property is located on Firestone Blvd., just south of the Stonewood Shopping Center.
The subject site is a 112,280 sq. ft. flag-shaped vacant lot and is zoned Lakewood-
Firestone 91-2. The property was purchased in 1991 for $2.8 million, and its current
estimated appraised value is $2.5 million.
The Successor Agency intends to retain the property for a future development, pursuant
to Health and Safety Code Sec. 34191.5, and pursue a development path which will
include the disposition of the subject property. This option is preferred by the Successor
Agency in order to improve its position in dictating the type of project and use it
envisions for the site. A Disposition and Development Agreement will be prepared and
submitted for review, as an enforceable obligation, to each affected taxing entity. The
agreement will also require approval by the Oversight Board to the Downey Successor
Agency. The time scheduled to complete the disposition of this property is projected to
occur within 12-24 months.
When the subject property was acquired in 1991, the CDC utilized its redevelopment
resources and federal Community Development Block Grant (CDBG) funds to finance
the acquisition. Federal regulations governing the federal CDBG program will require
that a share of any sales net earnings must be returned to the City of Downey's CDBG
program. The investment of CDBG funds was equal to 60% of the purchase transaction
and this factor will be used to determine the prorated distribution of the net earnings to
the City of Downey. The remaining balance, equal to 40%, would be transferred to the
Los Angeles County Auditor-Controller for redistribution to any effected taxing entities.
Following the adoption of the Long Range Property Management Plan by the Downey
Successor Agency, staff will pursue its search for a developer with the experience and
financial capacity to initiate and complete an approved development of the site.
LRPMP Page 1
Attachment "B"
Pursuant to Section 34191.5(c) of the Health and Safety Code, the remainder of this
report provides detailed information on the subject property and includes the attached
spreadsheet which is in a format required by the Department of Finance.
Property Information
Address:
APN:
Purchase Date:
Value at Purchase:
Funding Sources:
Lot Size:
Current Zoning:
Physical Constraints:
Estimated Property Value
Estimated Current Value:
Proposed Sale Value:
Proposed Sale Date:
Estimate of Revenues
Lease Income:
Rental/ Other Contractual:
9062-9068 Firestone Blvd.
6284-006-903
6284-006-904
January 1991
$2,858,295
60% Federal CDBG
40% Redevelopment funds
112,268 sq. ft. (2.58 acres)
Specific Plan 91-2
Narrow street frontage, existing access easement
locations, irregular shaped parcel
Parcel 903: $715,000
Parcel 904: $1,795,000
Up to above amount
12-24 months of DOF approval of
the LRPMP
No current leases
None
Environmental Contamination History
Brownfield Status: Not Applicable
Studies Conducted: Phase I, Phase II, Soil Remediation Report
and Asbestos Survey
Remediation Efforts: Between 1991-1999, removal of asbestos material
Transit-Oriented Development
TOO Potential:
during demolition of buildings and remediation of
contaminated soil in 1996
None. The site is not within a TOO area per the
City's General Plan Land Use Chapter. The
approved Specific Plan 91-2 does not provide for
high intensity residential use which is essential
for a Transit-Oriented Development.
LRPMP Page 2
Planning Objective of Successor Agency
To retain property for future development per Health and Safety Code Section
34191.5 (c)(2) and continue outreach to solicit proposals with commercial and retail use
that have potential to produce quality employment opportunities and generate high
volume of sales and tax revenues.
With respect to the properties described as 9062-9068 Firestone Boulevard, the LRPMP
proposes the transfer of this property to the City of Downey pursuant to Health & Safety
Code Section 134191.5( c)(2)(A). And it is the intent of the Successor Agency to ensure
that the City will enter into a "compensation agreement", with affected taxing entities to
the extent required by law.
History of Development Proposals and Activities
In April 1999, the Redevelopment Agency entered into a Development and Disposition
Agreement (DDA) for the development of a Holiday Inn Express Hotel and fine dining
restaurant. The project received all entitlement approvals from the City, however, the
proposed development faltered and the DDA was terminated by the CDC and
Developer. The agency has continually received general development inquires but no
development agreement has resulted from these inquires.
Use Disposition of Property
The subject site has the advantage of a superior location because of its proximity to
Stonewood Center and direct access off of Firestone Blvd. However, a narrow street
frontage, existing access easements and the irregular shape parcel present a challenge
in developing the property.
LRPMP Page 3