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HomeMy WebLinkAbout022-2016RESOLUTION NO. 22-2016 APPROVING THE PURCHASE OF REAL PROPERTY LOCATED AT 115-125 HARTZ AVENUE FROM THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE, APPROPRIATING FUNDS FOR CIP PROJECT C-319 AND APPROVING THE TRANSFER OF FUNDS FROM CIP PROJECT C-319 RELATED TO THE PURCHASE WHEREAS, the California State Legislature enacted Assembly Bill x1 26, subsequently amended with the adoption of AB 1484 and SB 107 (collectively, the "Dissolution Act"), to dissolve redevelopment agencies formed under the Community Redevelopment Law (Health and Safety Code Section 33000 et SN.); and WHEREAS, Health and Safety Code Section 34191.5(a) (all further statutory references are to the Health and Safety Code unless otherwise noted) established a Community Redevelopment Property Trust Fund (the "Trust Fund") for each successor agency to hold properties of the former redevelopment agencies until those properties can be disposed of; and WHEREAS, one of the properties held by Danville's Successor Agency in the Trust Fund (identified as Property 1 in the LRPMP) is a commercial property located at 115- 125 Hartz Avenue, (the "Property"); and WHEREAS, the Property was purchased by the former Community Development Agency of the Town of Danville (the "former CDA") in March 2011, for $2,600,000, plus closing costs of $3,343; and WHEREAS, funding for the purchase of the Property consisted of $2,140,163 from the former CDA, $135,000 from the Low and Moderate Housing Fund of the former CDA and $328,180 from the Town of Danville's Civic Facility Fund; and WHEREAS, the Town agreed to participate in the acquisition of the Property because it would help further the goals of both the Town and the former CDA to facilitate construction of the North Hartz Avenue Beautification project and to help facilitate the potential aggregation of properties in the north end of Downtown Danville, allowing for private reinvestment and development; and WHEREAS, in approving the use of Town funds for acquisition of the Property, Town Council Resolution No. 7-2011 authorized advancing funds to the former CDA for acquisition of the Property, upon the condition that "in the event the Agency subsequently disposes of the property, the Town shall be entitled to reimbursement from the proceeds of the sale"; and WHEREAS, the obligation of the Successor Agency to repay this amount to the Town was recognized by both the State Controller's Office in their "Asset Transfer Assessment" dated April 16, 2012 and the Contra Costa County Auditor Controller's Office in the "Independent Accountants' Report on Applying Agreed -Upon Procedures with respect to ABX1 26" dated October 1, 2012; and WHEREAS, on April 26, 2013, after completion of the Meet and Confer process for the Successor Agency's Low and Moderate Income Housing Fund Due Diligence Review ("DDR"), the California Department of Finance determined that the $135,000 from the former CDA's Low and Moderate Housing Fund used to purchase the Property was appropriately classified as a receivable of the Successor Housing Agency and should be paid to the Successor Housing Agency upon sale of the Property; and WHEREAS, the Successor Agency's Long Range Property Management Plan ("LRPMP") directs the Successor Agency to sell the property after completion of the North Hartz Avenue Beautification project with the goal of seeing the Property aggregated with surrounding properties for development consistent with the Town's General Plan and zoning ordinance; and WHEREAS, the North Hartz Avenue Beautification project improvements are now complete; and WHEREAS, the appraisal of the property prepared for the Successor Agency by Dean Chapman & Associates, finds that the fair market value of the Property is $2,925,000; and WHEREAS, the Town of Danville desires to purchase the property based on the appraised value, in order to hold the property to allow for potential aggregation with adjoining properties, as described in the LRPMP, and to satisfy all existing encumbrances on the Property; now, therefore, be it RESOLVED, that the Danville Town Council hereby approves the purchase of the property located at 115-125 Hartz Avenue from the Successor Agency; and, be it further RESOLVED, that in order to complete this acquisition and satisfy all existing encumbrances, the Town makes the following appropriation, transfers and amendments to the CIP: • Appropriate $2,925,000 from the Civic Facilities Fund to CIP Project C-319 • Transfer $2,461,820 from CIP Project C-319 to the Successor Agency for acquisition of the Property • Transfer $135,000 from CIP Project C-319 to the Successor Housing Agency to pay the receivable due to the Successor Housing Agency • Transfer $328,180 from CIP Project C-319 to the Civic Facilities Fund to pay the amount due to the Town from sale of the Property; and, be it further RESOLVED, that the Town Manager is authorized to execute any documents and take all actions necessary to complete the purchase of the property as provided for herein. PAGE 2 OF RESOLUTION NO. 22-2016 APPROVED by the Danville Town Council at a regular meeting on March 1, 2016, by the following vote: AYES: Stepper, Morgan, Arnerich, Doyle, Storer NOES: None ABSTAIN: None ABSENT: None MA APPROVED AS TO FORM: ATTEST: CITY ATTORNEY CITY CLERK PAGE 3 OF RESOLUTION NO. 22-2016