HomeMy WebLinkAbout024-2016SARESOLUTION NO.24-2016SA
APPROVING THE SALE OF REAL PROPERTY LOCATED AT 115-125 HARTZ
AVENUE CONSISTENT WITH THE LONG RANGE PROPERTY MANAGEMENT
PLAN FOR THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY
DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE
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, Section 34191.5(b) requires successor agencies to prepare a Long Range
Property Management Plan (the "LRPMP") addressing the disposition and use of real
properties formerly owned by redevelopment agencies; and
WHEREAS, the California Department of Finance ("DOF") approved the LRPMP for
Danville's Successor Agency on February 7, 2014; and
WHEREAS, one of the properties held by the 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 Facilities Fund; 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"), DOF 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, 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, the LRPMP authorized the Successor Agency to hold the property until the
North Hartz Avenue Beautification project was completed, at which time the Property
is to be sold 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, all rental income received by the Successor Agency from the Property has
been applied to pay for enforceable obligations on each Recognized Obligation Payment
Schedule ("ROPS"), thereby increasing the amount of property taxes available for
distribution to all other taxing entities; and
WHEREAS, the North Hartz Avenue Beautification project improvements are now
complete; and
WHEREAS, the Successor Agency's Oversight Board authorized an appraisal of the
Property, which found that the current 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; now, therefore, be it
RESOLVED, that the Successor Agency to the former Community Development
Agency of the Town of Danville, hereby finds, resolves, and determines as follows:
SECTION 1. The foregoing recitals are true and correct, and, together with
information provided by the Successor Agency staff and the public, including the staff
report accompanying this resolution, form the basis for the approvals, findings,
resolutions, and determinations set forth below.
SECTION 2. The Successor Agency finds that the fair market value of the
Property is $2,925,000.
SECTION 3. The Successor Agency finds that sale of the Property to the Town of
Danville for the appraised value in order to allow the Town to seek to aggregate the
PAGE 2 OF RESOLUTION NO.24-2016SA
property for further private development is consistent with the provisions of the
approved Long Range Property Management Plan.
SECTION 4. The Successor Agency recommends that the Agency's Oversight
Board, acting pursuant to Section 34180 and 34181(a), approve the sale of the Property
to the Town of Danville, for the net purchase price of $2,461,820 ($2,925,000 Fair Market
Value minus $135,000 in housing funds and $328,180 reimbursement to Town). The
Town shall be responsible for any and all costs of the transaction, including but not
limited to, recording costs, title insurance, etc.
SECTION 5. The Successor Agency staff is directed to present the proposed sale
to the Agency Oversight Board, to provide all notices required by law and to take all
actions necessary to complete the disposition of the property.
APPROVED by the Danville Town Council, acting as the Successor Agency to the
former Community Development Agency of the Town of Danville, at a regular meeting
on March 1, 2016, by the following vote:
AYES: Stepper, Morgan, Arnerich, Doyle, Storer
NOES: None
ABSTAIN: None
ABSENT: None
MAYOR
APPROVED AS TO FORM: ATTEST: (W
CITY ATTORNEY
CITY
PAGE 3 OF RESOLUTION NO.24-2016SA
