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City of San Leandro Meeting Date: September 17, 2012 Staff Report File Number: 12-450 Agenda Section: CONSENT CALENDAR Agenda Number: 8.D. TO: City Council FROM: Chris Zapata City Manager BY: Luke Sims Community Development Director FINANCE REVIEW: Not Applicable TITLE: Staff Report Recommending that the Successor Agency Convey Certain Former Redevelopment Agency Assets to the City of San Leandro and Recommending that the City Approve the Conveyance of these Assets from the Former Redevelopment Agency to the City SUMMARY AND RECOMMENDATIONS The State of California’s passage of AB x1 26 requires that all California Redevelopment Agencies dispose of their assets. Passage of AB 1484 in June 2012 provides further guidance for the disposal of these assets. Staff has developed a plan for the disposition of some of these properties, which is outlined in the next section. This staff report and the attached Resolutions focus on the real property assets included as Exhibit A to the Resolution. Staff recommends that the City Council, serving in its capacity as the governing board to the Successor Agency, adopt the attached Resolution of the Successor Agency authorizing, subject to Oversight Board approval, the transfer of certain former Redevelopment Agency (Agency) real property assets to the City of San Leandro (City) due to their: 1) being public purpose properties; or 2) because they were transferred to the Agency by the City in anticipation of use in redevelopment projects and per the transfer agreements, any revenue from these properties must be returned to the City. Staff also recommends that the City Council adopt the attached Resolution of the City Council approving of the transfer of the property described above from the Successor Agency to the City of San Leandro. Finally, the attached Resolutions also would direct Successor Agency staff to seek Oversight Board approval to reinstate agreements executed in 2003 and 2008 that required the Agency to pay to the City any proceeds derived from the sale of two Agency Agency properties that were originally owned by the City if the Department of Finance objects to the conveyance of those properties. BACKGROUND Since its inception in 1952, the California Redevelopment Law allowed cities and counties to City of San Leandro Page 1 Printed on 9/11/2012 File Number: 12-450 form Redevelopment Agencies with special powers to eradicate blighting conditions in urban areas. These special powers included the ability to assemble and sell property for both private and public development. To effectuate the Agency’s goals, property was often acquired, through purchase or via transfer from the City, in an effort to eliminate social and economic blight and facilitate the property’s re-use in a manner beneficial to the community. The properties described in this report would be disposed of as directed by AB x1 26 and AB 1484, and not pursuant to traditional City or Agency procedures for disposing of property. These former Agency properties are not considered surplus, so Government Code section 54220, et seq. regarding surplus property disposition does not apply. Likewise, the provisions for disposition of property under Redevelopment Law also do not apply. The former Redevelopment Agency held a number of parcels, some of which are detailed in Table 1. Table 1 -Former Redevelopment Agency Parcels Address Description APN Public Purpose Properties Aladdin Ave. Marina Reader Board Sign 079A-0295-002-17 Carpentier Street Creek-walk behind Creekside Plaza 075-0036-058-00 2512 Davis Street Vacant, held for Eden Road extension 077A-0649-008-25 1433 E. 14th Street Parking, Downtown Plaza 077-0545-018-00 14901 E. 14th Street Vacant, held for street improvements 077D-1499-001-00 1193 Warden Ave. Park, "Davis West" sign site 077A-0655-001-00 1446 Washington Ave. Parking, Downtown Plaza 077-0545-025-00 1490 Washington Ave. Parking, Downtown Plaza 077-0545-024-01 Washington Ave. Public Plaza outdoor dining area (Sergio's) 077-0545-026-02 Washington Ave. Parking, Downtown Plaza 077-0545-009-00 Washington Ave. Parking, Downtown Plaza 077-0545-010-00 135 W. Joaquin Ave. Walkway adjacent to Plaza parking lot 077-0545-015-00 W. Juana Ave. 256 sf remnant parcel at corner of W. Juana and Hays 075-0226-006-00 City Properties Held by RDA 2101 Marina Blvd. Former fire station, held for redevelopment, agreement 079A-0568-005-00 dated 9/16/03 requires proceeds are returned to City 268 Parrott Street Vacant, held for redevelopment, agreement dated 1/7/08 075-0005-012-00 requires proceeds are returned to City Given the number of properties in the Agency’s portfolio, it is important that the disposition occur in an orderly and strategic manner to ensure value is retained and prevent any negative impact on the community. A number of methods have been considered for the disposition of these properties and the two being recommended as part of this action are outlined below. The properties that are part of this action fall into two categories: Public Purpose Properties: Over the years the Agency acquired many properties. Among these are properties that cannot be developed due to their size (remnants) or City of San Leandro Page 2 Printed on 9/11/2012 File Number: 12-450 use (parking lots). Transfer of these 13 parcels to the City is being recommended. The taxing entities that share in the project area tax base will benefit from the continued use of these properties for public purposes as such facilitation of access to and patronage of sales and property tax generating businesses in the project area. City Properties Held by RDA: The City of San Leandro conveyed two properties to the Redevelopment Agency pursuant to agreements that provide that when the Redevelopment Agency disposed of the property, any and all funds derived would be paid to the City. These properties are being transferred back to the City. The taxing entities will not benefit from any proceeds from the sale or lease of these two properties, which per contractual agreements made prior to the Agency taking ownership, are to be returned to the City. Previous Actions · On May 7, 2011, by Resolution No. 2011-004 RDA, the San Leandro Redevelopment Agency approved the transfer of Redevelopment Agency Real Property Assets to the City of San Leandro. Certain of these transfers may be “unwound” pursuant to AB 26 and AB 1484. Legal Analysis Pursuant to AB x1 26, the Successor Agency is responsible for winding down the affairs of the Agency, including the disposition of assets and properties of the Agency. The disposal is to be done “expeditiously and in a manner aimed at maximizing value,” however, pursuant to AB 1484, the Successor Agency may prepare a property management plan that will direct the orderly disposition and retention of certain properties following approval of the plan by the Oversight Board and the Department of Finance (“Department”) after the Department issues a “Finding of Completion.” It is anticipated that the Department will issue a Finding of Completion in late Spring 2013 following completion of the Due Diligence Reviews required by AB 1484 and payment of residual funds to the County for distribution to the taxing entities. Pursuant to AB 1484, the Successor Agency is allowed to convey governmental purpose properties in advance of approval of a property management plan, provided that the Oversight Board approves of the action at a public meeting preceded by ten days’ notice and the Department does not object within a 60-day review period. Although AB 1484 suspends the requirement that successor agencies expeditiously dispose of real property, the statute does not specifically address the voluntary disposition of non-governmental purpose properties in advance of Department issuance of a Finding of Completion and approval of a property management plan; however, it does not appear that such voluntary disposition would be prohibited if the Oversight Board approves of the conveyance and the Department does not object within a 60-day review period. If the Department objects to the return of the properties that the City conveyed to the Agency, the Successor Agency may seek Oversight Board approval to reinstate the City-Agency agreements that provide for the payment to the City of the sale proceeds derived from these properties. ATTACHMENTS City of San Leandro Page 3 Printed on 9/11/2012 File Number: 12-450 None. PREPARED BY: Tara Peterson, Administrative Services Manager, Engineering and Transportation Department Cynthia Battenberg, Business Development Manager, Community Development Department City of San Leandro Page 4 Printed on 9/11/2012 City of San Leandro Meeting Date: September 17, 2012 Resolution -Council File Number: 12-447 Agenda Section: CONSENT CALENDAR Agenda Number: TO: City Council FROM: Chris Zapata City Manager BY: Luke Sims Community Development Director FINANCE REVIEW: Not Applicable TITLE: ADOPT: Resolution Approving the Transfer of Certain Former Redevelopment Agency Real Property Assets to the City of San Leandro (provides for the City Council approval of the transfer of properties -both public purpose properties and properties with agreements that proceeds shall be paid to the City -from the Successor Agency to the City) WHEREAS, pursuant to Resolution No. 2012-001, adopted by the City Council of the City of San Leandro on January 9, 2012, the City of San Leandro (“City”) agreed to serve as the Successor Agency (“Successor Agency”) to the Redevelopment Agency of the City of San Leandro (the “Redevelopment Agency”) commencing upon the dissolution of the Redevelopment Agency on February 1, 2012; WHEREAS, pursuant to Health and Safety Code Sections 34177(e), 34181(a) and 34181(f), the Successor Agency may convey governmental purpose properties to the appropriate public entity, provided that the Oversight Board approves of the action at a public meeting preceded by ten days’ notice and the Department of Finance does not object within a 60-day review period; WHEREAS, the properties identified as “Public Purpose Properties” in the staff report accompanying this Resolution (the “Report”) are dedicated for public purposes, including street improvements, public walkways and other public purposes as more particularly described in the Report; WHEREAS, the properties described in the Report and located at 2101 Marina Boulevard and 268 Parrot Street are subject to agreements executed by and between the City and the Redevelopment Agency dated as of September 16, 2003 and January 7, 2008, respectively, (the “Agreements”) which Agreements provided for the conveyance of such properties by the City to the Redevelopment Agency and the payment by the Redevelopment Agency to the City of all future sale proceeds derived from such properties; City of San Leandro Page 1 Printed on 9/11/2012 File Number: 12-447 WHEREAS, Health and Safety Code Section 34178(a) provides that, with specified exceptions, commencing upon February 1, 2012, agreements, contracts and arrangements between a redevelopment agency and the city that formed the agency are invalid, provided however, that a successor agency that wishes to re-enter into agreements with the city that formed the redevelopment agency may do so upon obtaining the approval of the oversight board formed to oversee the actions of the successor agency (“Oversight Board”); and WHEREAS, the properties identified in the Report were conveyed by the Redevelopment Agency to the City pursuant to Resolution No. 2011-004 RDA adopted May 7, 2011, but such conveyances may be unwound pursuant to Assembly Bill x1 26 and Assembly Bill 1484. NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of San Leandro that it does hereby resolve as follows: 1. Subject to approval by the Oversight Board, the conveyance by the Successor Agency to the City of the Public Purpose Properties identified in Exhibit A attached hereto is hereby approved. 2. Subject to Oversight Board approval, the conveyance by the Successor Agency to the City of the real properties located at 2101 Marina Boulevard and 268 Parrott Street is hereby approved. 3. If the Department of Finance disapproves of the conveyance of the properties located at 2101 Marina Boulevard and 268 Parrott Street as set forth in this Resolution, City staff is directed to seek Oversight Board approval to reinstate the Agreements, and the City Manager or his designee is authorized to execute any instruments required in connection therewith. 4. The City Manager and his designees are authorized and directed to take all actions necessary to implement this Resolution, including without limitation the execution of deeds of conveyance, certificates of acceptance, and all other necessary instruments, as applicable. City of San Leandro Page 2 Printed on 9/11/2012 City of San Leandro Meeting Date: September 17, 2012 Resolution -SA File Number: 12-449 Agenda Section: CONSENT CALENDAR Agenda Number: TO: City Council FROM: Chris Zapata City Manager BY: Luke Sims Community Development Director FINANCE REVIEW: Not Applicable TITLE: ADOPT: Resolution of the Successor Agency to the Redevelopment Agency of the City of San Leandro Approving the Transfer of Certain Former Redevelopment Agency Real Property Assets to the City of San Leandro (provides for the Successor Agency approval of the transfer of properties -both public purpose properties and properties with agreements that proceeds shall be paid to the City -from the Successor Agency to the City of San Leandro) WHEREAS, pursuant to Resolution No. 2012-001, adopted by the City Council of the City of San Leandro on January 9, 2012, the City of San Leandro (“City”) agreed to serve as the Successor Agency (“Successor Agency”) to the Redevelopment Agency of the City of San Leandro (the “Redevelopment Agency”) commencing upon the dissolution of the Redevelopment Agency on February 1, 2012; WHEREAS, pursuant to Health and Safety Code Sections 34177(e), 34181(a) and 34181(f), the Successor Agency may convey governmental purpose properties to the appropriate public entity, provided that the Oversight Board approves of the action at a public meeting preceded by ten days’ notice and the Department of Finance does not object within a 60-day review period; WHEREAS, the properties identified as “Public Purpose Properties” in the staff report accompanying this Resolution (the “Report”) are dedicated for public purposes, including street improvements, public walkways and other public purposes as more particularly described in the Report; WHEREAS, the properties described in the Report and located at 2101 Marina Boulevard and 268 Parrott Street are subject to agreements executed by and between the City and the Redevelopment Agency dated as of September 16, 2003 and January 7, 2008, respectively, (the “Agreements”) which Agreements provided for the conveyance of such properties by the City to the Redevelopment Agency and the payment by the Redevelopment City of San Leandro Page 1 Printed on 9/11/2012 File Number: 12-449 Agency to the City of all future sale proceeds derived from such properties; WHEREAS, Health and Safety Code Section 34178(a) provides that, with specified exceptions, commencing upon February 1, 2012, agreements, contracts and arrangements between a redevelopment agency and the city that formed the agency are invalid, provided however, that a successor agency that wishes to re-enter into agreements with the city that formed the redevelopment agency may do so upon obtaining the approval of the oversight board formed to oversee the actions of the successor agency (“Oversight Board”); and WHEREAS, the properties identified in the Report were conveyed by the Redevelopment Agency to the City pursuant to Resolution No. 2011-004 RDA adopted May 7, 2011, but such conveyances may be unwound pursuant to Assembly Bill x1 26 and Assembly Bill 1484. NOW THEREFORE, BE IT HEREBY RESOLVED by the Governing Board of the Successor Agency to the Redevelopment Agency of the City of San Leandro that it does hereby resolve as follows: 1. Subject to approval by the Oversight Board, the conveyance by the Successor Agency to the City of the Public Purpose Properties identified in Exhibit A attached hereto is hereby approved. 2. Subject to Oversight Board approval, the conveyance by the Successor Agency to the City of the real properties located at 2101 Marina Boulevard and 268 Parrott Street is hereby approved. 3. If the Department of Finance disapproves of the conveyance of the properties located at 2101 Marina Boulevard and 268 Parrott Street as set forth in this Resolution, Successor Agency staff is directed to seek Oversight Board approval to reinstate the Agreements. 4. The Executive Director and his designees are authorized and directed to take all actions necessary to implement this Resolution, including without limitation the execution of deeds of conveyance, certificates of acceptance, and all other necessary instruments, as applicable. City of San Leandro Page 2 Printed on 9/11/2012 1 Exhibit A Redevelopment Property List Marina Reader Board Sign APN: 079A-0295-002-17 Street Address: Aladdin Avenue Description: Land at the ball field with advertising sign Acquisition Year: 1966 by City; 1998 (City to RDA) Current Use: Advertising Sign for Marina Auto Mall Proposed Use: Same Size: 465 sq. ft. Zoning: CR Commercial Recreation District General Plan: Public/Institutional Creek Walk behind Creekside Plaza APN: 075-0036-058 Street Address: Carpentier Street Description: Land buffer between the creek and Creekside Plaza Acquisition Year: 1999 by RDA Current Use: Creek walk/open space Proposed Use: Same Size: 1.38 acres Zoning: CC Commercial Community District General Plan: Office 2512 Davis Street APN: 077A-0649-008-25 Street Address: 2512 Davis Street Description: Building acquired for future Eden Road. Currently leased to contractor doing City project next door Acquisition Year: 2009 by RDA Current Use: Building leased to contractor Proposed Use: Road Size: 15,551 sq. ft. Zoning: IG Industrial General District General Plan: Eden Road Extension 2 1433 E. 14th Street APN: 077-0545-018-00 Street Address: 1433 E. 14th Street Description: Parking Lot at Downtown Plaza Acquisition Year: 1997 by RDA Current Use: Parking Proposed Use: Parking Size: 5,593 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use 14901 E. 14th Street APN: 077D-1499-001-00 Street Address: 14901 E. 14th Street Description: Former Quality Tune Up Shop Acquisition Year: 2010 by RDA Current Use: Vacant land Proposed Use: Intersection improvements/entryway statement Size: 10,556 sq. ft. Zoning: SA-3 South Area District General Plan: Corridor Mixed Use 2101 Marina Boulevard APN: 079A-0568-005-00 Street Address: 2101 Marina Boulevard Description: Former Fire Station Acquisition Year: 1958 by City; 2003 (City to RDA) Current Use: Storage Proposed Use: Possible lease Size: 15,536 (lot) Zoning: CN(S) Comm. Neighborhood Special Overlay Dist. General Plan: Neighborhood Commercial 3 268 Parrott Street APN: 075-0005-012-00 Street Address: 268 Parrott Street Description: Land for Parking Acquisition Year: 1998 by City; 2008 (City to RDA) Current Use: Vacant land Proposed Use: Parking Size: 7,500 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use 1193 Warden Avenue APN: 077A-0655-001-00 Street Address: 1193 Warden Avenue Description: Pocket Park/Entry to Davis West Acquisition Year: 1995 by RDA Current Use: Open Space/Park Proposed Use: Park Size: 5,700 sq. ft. Zoning: RS Residential Single-Family District General Plan: Residential Low Density 1446 Washington Avenue APN: 077-0545-025-00 Street Address: 1446 Washington Avenue Description: Parking Lot for Downtown Plaza Acquisition Year: 1963 by RDA Current Use: Parking Proposed Use: Parking Size: 14,671 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use 4 1490 Washington Avenue APN: 077-0545-024-01 Street Address: 1490 Washington Avenue Description: Parking lot a Downtown Plaza Acquisition Year: 1963 by RDA Current Use: Parking Proposed Use: Parking Size: 15,249 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use Plaza Outdoor Dining Area (Sergio’s) APN: 077-0545-026-02 Street Address: Washington Avenue Description: Outdoor Dining Area Acquisition Year: 1970 by RDA Current Use: Outdoor Dining Proposed Use: Outdoor Dining Size: 1,529 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use Washington Avenue Downtown Plaza Parking APN: 077-0545-009-00 Street Address: Washington Avenue Description: Parking at Downtown Plaza Acquisition Year: 1970 by RDA Current Use: Parking Proposed Use: Parking Size: 4,500 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use 5 Washington Avenue Downtown Plaza Parking APN: 077-0545-010-00 Street Address: Washington Avenue Description: Parking at Downtown Plaza Acquisition Year: 1970 by RDA Current Use: Parking Proposed Use: Parking Size: 3,494 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use 135 W. Joaquin Avenue APN: 077-0545-015-00 Street Address: 135 W. Joaquin Avenue Description: Walkway Acquisition Year: 1963 by RDA Current Use: Walkway Proposed Use: Walkway Size: 2,399 sq. ft. Zoning: DA-1 Downtown Area District General Plan: Downtown Mixed Use Parcel at corner of W. Juana and Hays APN: 077-0226-006-00 Street Address: W. Juana Avenue and Hays Street Description: Right of Way Acquisition Year: Unknown Current Use: Back of Walk – Right of Way Proposed Use: Right of Way Size: 256 sq. ft. Zoning: DA-1 (S) Dwtn. Area Special Overlay Dist. General Plan: Downtown Mixed Use