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HomeMy WebLinkAbout041823-08.1/09.1 ADMINISTRATIVE STAFF REPORT 8.1/9.1 TO: Mayor and Town Council April 18, 2023 Successor Housing Agency to the former Community Development Agency of the Town of Danville SUBJECT: Resolution No. 27-2023, approving the purchase of real property located at 282 Front Street from the Successor Housing Agency to the former Community Development Agency of the Town of Danville Resolution No. 28-2023SHA, approving the sale of real property located at 282 Front Street to the Town of Danville BACKGROUND On November 20, 2009, the former Community Development Agency of the Town of Danville (the “former CDA”) purchased real property located at 282 Front Street (the “Property”). The Property was acquired by the former CDA using Low and Moderate Housing Funds, with the goal of trying to aggregate the Property with other small parcels on Front Street to develop affordable housing. In 2011, the State of California acted to dissolve all redevelopment agencies in the state. As part of the dissolution process, the Town Council adopted Resolution No. 6-2011, electing to retain all of the housing assets and assume the housing functions which were previously the responsibility of the former CDA. In 2013, the Town and the Successor Agency completed the mandatory Housing Fund Due Diligence Review (the “DDR”) as a part of the dissolution process. The DDR, which was approved by the California Department of Finance (the “DOF”) in April 2013, identified 282 Front Street as an asset of the Housing Fund (now identified as the Successor Housing Agency). DISCUSSION Over the years since acquisition of the Property, the former CDA and Town attempted to acquire adjoining parcels for aggregation but were unable to do so. As a stand-alone parcel, the Property cannot be developed for housing due to a variety of restrictions, including structural setbacks from San Ramon Creek and other existing easements. Purchase of 282 Front Street 2 April 18, 2023 During development of the Town Green and Arts District Master Plan, it was determined that the Property could best be utilized by incorporating it into the Master Plan. Specifically, the Property was identified as a “Maker Space” which can house outdoor seating, shade structures and a space for art classes and programming. In order to accomplish this goal and to ensure the appropriate use of Successor Housing Agency assets, it is appropriate for the Town to purchase the Property. Proceeds from the purchase/sale will be deposited in the Low and Moderate Income Housing Fund and will be available to assist in the provision of affordable housing within the Town. The Town previously appropriated $600,000 into CIP No. B-629 (Attachment C) for acquisition of the Property. The sales price is equal to what the former CDA originally paid to purchase the property. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. FISCAL IMPACT There are sufficient funds appropriated in CIP No. B-629 to purchase the Property. RECOMMENDATION Adopt Resolution No. 27-2023, approving the purchase of real property located at 282 Front Street from the Successor Housing Agency to the former Community Development Agency of the Town of Danville. Adopt Resolution No. 28-2023SHA, approving the sale of real property located at 282 Front Street to the Town of Danville. Prepared by: Robert B. Ewing City Attorney Attachments: A-Resolution No. 27-2023 B-Resolution No. 28-2023SHA C-CIP No. B-629 RESOLUTION NO. 27-2023 APPROVING THE PURCHASE OF REAL PROPERTY LOCATED AT 282 FRONT STREET FROM THE SUCCESSOR HOUSING AGENCY TO THE FORMER COMMUNITY DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE WHEREAS, the former Community Development Agency of the Town of Danville (the “former CDA”) purchased real property located at 282 Front Street , using the Low and Moderate Income Housing Fund of the former CDA; and WHEREAS, upon dissolution of the former CDA, the Danville Town Council adopted Resolution No. 6-2011, electing to retain all of the housing assets and assume the housing functions which were previously the responsibility of the former CDA; and WHEREAS, the Housing Fund Due Diligence Review prepared by the Successor Agency to the former CDA and approved by the California Department of Finance in April 2013, identified 282 Front Street as an asset of the Successor Housing Agency; and WHEREAS, the Town desires to purchase the property at 282 Front Street for inclusion in the Town Green and Arts District Master Plan; now, therefore, be it RESOLVED, that the Danville Town Council approves the purchase of the property located at 282 Front Street from the Successor Housing Agency for the price of $600,000; 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. APPROVED by the Danville Town Council at a regular meeting on April 18, 2023, by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 28AF627E-922D-471E-AFC5-862E055F74B9 ATTACHMENT A RESOLUTION NO. 28-2023SHA APPROVING THE SALE OF REAL PROPERTY LOCATED AT 282 FRONT STREET TO THE TOWN OF DANVILLE WHEREAS, the former Community Development Agency of the Town of Danville (the “former CDA”) purchased real property located at 282 Front Street, using the Low and Moderate Income Housing Fund of the former CDA; and WHEREAS, upon dissolution of the former CDA, the Danville Town Council adopted Resolution No. 6-2011, electing to retain all of the housing assets and assume the housing functions which were previously the responsibility of the former CDA; and WHEREAS, the Housing Fund Due Diligence Review prepared by the Successor Agency to the former CDA and approved by the California Department of Finance in April 2013, identified 282 Front Street as an asset of the Successor Housing Agency; and WHEREAS, the intended use of the property for housing has proven to be infeasible due to development restrictions on the property and the inability to aggregate the property with adjoining parcels; and WHEREAS, the Town desires to purchase the property at 282 Front Street for inclusion in the Town Green and Arts District Master Plan; now, therefore, be it RESOLVED, that the Successor Housing Agency to the former Community Development Agency approves the sale of the property located at 282 Front Street to the Town of Danville for the price of $600,000, with the proceeds to be deposited into the Agency’s Low and Moderate Income Housing Fund. DocuSign Envelope ID: 5F9BACCF-FB44-4B3B-A919-F3F3A02EBF09 ATTACHMENT B APPROVED by the Danville Town Council, acting as the Successor Housing Agency to the former Community Development Agency of the Town of Danville, at a regular meeting on April 18, 2023, by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK PAGE 2 OF RESOLUTION NO. 28-2023SHA DocuSign Envelope ID: 5F9BACCF-FB44-4B3B-A919-F3F3A02EBF09 ATTACHMENT C