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Home My WebLink AboutRes SA-RDA-074 - 128-Acre Parcel - Mission Valley PropertiesResolution No. SA-RDA-074 STAFF REPORT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY PUBLIC WORKS DEPARTMENT MEETING DATE PREPARED BY: October 11, 2018 Cora L. Gaugush, Management Specialist II � REQUEST: Accept the bid of $7,135,000 from Mission Valley Properties Development California , LLC, of Pleasanton, California , for the 128 Acre Parcel of Vacant Land, South of Gerald Ford Drive, North of Frank Sinatra Drive and West of Portola Avenue (APN(S) 694-300-001; 694-300-002; 694- 300-005; 694-300-014; 694-300-015; 694-310-002; 694-310-003; and 694-310-006 Recommendation By Minute Motion, adopt Resolution to: 1. Accept the bid of $7,135,000, from Mission Valley Properties Development, LLC, of Pieasanton for the 128 Acre Parcel of Vacant Land, South of Gerald Ford Drive, North of Frank Sinatra Drive and West of Portola Avenue (APN(S) 694-300-001; 694-300-002; 694-300-005; 694-300-014; 694-300- 015; 694-310-002; 694-310-003; and 694-310-006); Strateqic Plan The sale of this property is part of the winding down of the Palm Desert Redevelopment Agency (RDA). Disposition of RDA assets by the Successor Agency to Palm Desert Redevelopment Agency (SARDA) for the market value of the property is one of the specific goals given to staff by the City Manager. This action will further the goals set in Envision Palm Desert under the Land Use, Housing and Open Space section, by selling a vacant parcel of land in an undeveloped residential area, and provide an opportunity for the property to be developed according to the General Plan, approved Zoning and the Housing Element, while ensuring every effort is made to obtain true market value. Backqround AnalYsis The property in question is a remaining asset to be disposed of by the SARDA in the process of winding down the business of the former Redevelopment Agency. October 11, 2018 - Staff Report Accept Bid for the 128 Acre Vacant Parcel of Land Page 2 of 2 On September 27, 2018, bids were received for the property in question. Two bids were received. They are as follows: BIDDER LOCATION BID AMOUNT Lewis Land Develo ers, LLC U land, California $3,333,333.33 Mission Valley Properties Development Pleasanton, $7,135,000.00 California , LLC California The latest report places the current appraised value of the property at $7,135,000. Analvsis SARDA is tasked with disposing of the assets of the former Palm Desert Redevelopment Agency for the benefit of the various affected taxing entities, in accordance with the terms of the California Health and Safety Code. The property is listed on the Long Range Property Management Plan (LRPMP) to be sold for appraised value. The LRMP requires that all proceeds of the sale be distributed as property taxes to the affected taxing entities, in accordance with the terms of the California Health and Safety Code. Each taxing entity including the City of Pa�m Desert will receive a portion of the proceeds based on their respective tax rate. Staff requests accepting the bid from Mission Development California, LLC, and presenting this action for approval by the Countywide Oversight Board. Fiscal Analvsis In accepting the bid, the fiscal impact is the small portion of the proceeds due the City of Palm Desert. APPLICANT: Mission Valley Properties Development California, LLC 3875 Hopyard Road, Suite 180 Pleasanton, California, 94588 `� BX SA-�iI7A �� ATTACHMENTS: Bid Sheet �N ��^ I I— �� `� Resolution No. sA-xDA-o�4 VERIFIED BY `� Vicinity Map �riginal on file with City Cle s Office ��s � ��n� �, �-�� y.��s-��f�, �� I�r � ��c�� {� �r� �� rS � �� , C - PURCHASE BID 128 Acre Parcel Vacant Land South of Gerald Ford Drive, North of Frank Sinatra Drive and West of Po�tola Avenue TO: CITY OF PALM DESERT, "CiTY" TO: SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, "AGENCY" DATE: Se��bcf Z� 2o�g BIDDER: r�1 u P�e✓�� o e+�c.n�" Ca�� -�ror n� L�—C— The UNDERSIGNED, "BIDDER", having carefully examined the site and the Contract Documents for the purchase of the 128 Acre Parcel of Vacant Land located South of Gerald Ford Drive, North of Frank Sinatra Drive, and West of Portola Avenue (APN 694- 300-001; 694-300-002; 694-300-005; 694-300-014; 694-300-015; 694-310-002; 694-310- 003; 694-310-006), hereby submits a bid to purchase the 128 vacant parcel of land in accordance with the Contract Documents, including Addenda No(s). for the amount stated in this Purchase Bid. By submitting this Purchase Bid, the undersigned agrees with the Agency: That unless withdrawn in person or by some person authorized in writing by entity submitting the bid, before the time specified in the Notice Inviting Bids for the public opening of bids, this Bid constitutes an irrevocable offer for 90 calendar days after that date. 2 The Agency has the right to reject any or all Bids and to waive any irregularities or informalities contained in a Bid. 3. That the sale of the property shall be awarded only by the governing bodies of the Agency. A Purchase and Sale Agreement shall be entered into only after approval by the Board of the Successor Agency to the Palm Desert Redevelopment Agency (SARDA), the Oversight Board of the Successor Agency to the Palm Desert Redevelopment Agency (OB), and the State of California Department of Finance (DOF). 4. That the accompanying cash, certified or cashier's check or other security deemed acceptable to the SARDA constitutes a guarantee that if a bid is accepted by the above referenced parties, the bidder will execute a Purchase and Sale Agreement and Escrow Instructions and deliver all documents required by the SARDA, sufficient to open escrow, within 10 days after notice of award. If bidder fails to C-1 execute and deliver said documents, the cash, check or security shall be retained by the Agency, and is declared forfeited by the bidder. 5. ALL PROPERTY SOLD "AS IS", "WHERE IS", and "WITH ALL FAULTS". PROPERTY IS BEING OFFERED AND SOLD IN ITS AS IS/WHERE IS CONDITION AT THE TIME OF THE BID, WITH ALL FAULTS, INCLUDING ANY HIDDEN DEFECTS OF ANY NATURE. SARDA. AS THE SELLER, MAKES NO REPRESENTATIONS. WARRANTIES. OR GUARANTEES WHATSOEVER, EXPRESS OR IMPLIED. REGARDING THE NATURE, VALUE, OR MARKETABILITY. ITEM DESCRIPTION 128 Acre Vacant Parcel of Land APN (s) 694-300-009 ; 694-300-002; 694-300- 005; 694-300-014; 694-300-015; 694-310-002; 694-310-003; 694-310-006 BID AMOUNT � �'� + 3 S o00 . vo TOTAL AMOUNT BID IN FIGURES $��, � 3S ��- oa TOTAL AMOUNT BID IN WORDS Sev� ��\�o� On� I�u�i� T1n �� F��c, � ho� �� ot\4t S BIDDER'S CONTACT INFORMATION Name: I` o�i�� i' �adano��1�• ��P ��v`\o,(��n+�c.n� C�� 1�o�n�g 11-� Address: 3��-5 1-�top.tar� � o�� # I 90 �I�G s�� n C A�- "t�S 8� Phone: `�2S - '�(v} - Gi�o� ' �- s - �{ �o �- - �� o c. `D , r� �,� By: �%� r �1-� Signature (must be notarized) By: Signature (must be notarized) G2 A notary public or other officer completing this certficate verifies only the identity of the individual I who signed the document, to which this cert�cate is attached, and not the truthfulness, accuracy, or validity of thatdocument. ' State of California ) County of ►"� �GmeUU ) On � I 2�t' (, 20 �� before me, C�n I✓1. �,u U f �u (, j i � personally appeared i n .� k(�o�� n�� c.l� who p�oved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. MANOY M.OWEN WITNESS m hand and official seal. - Nota�yPubl�c-Cahforni� Y ' � Alameda Cou�ty > M� � Commission t 2195191 �/((� � �Q/� My Comm. Expites May 1, 2021 Signature of Notary Public C-3 RESOLUTION NO. SA-RDA-074 A RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ACCEPTING A BID FOR THE 128 ACRE PARCEL OF VACANT LAND, WITHIN THE CITY OF PALM DESERT, SOUTH OF GERALD FORD DRIVE, NORTH OF FRANK SINATRA DRIVE AND WEST OF PORTOLA AVENUE (APN 694-300-001; 694-300- 002; 694-300-005; 694-300-014; 694-300-015; 694-310-002; 694-310-003; AND 694-310-006) PURSUANT TO THE LONG RANGE PROPERTY MANAGEMENT PLAN AND TAKING RELATED ACTIONS RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011) and the California Supreme Court's decision in California Redeve/opment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the former Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012, the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency"), as the successor entity to the Former Agency, was constituted, and a board of the Successor Agency (the "Board") was established. B. AB X1 26 added Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the Califomia Health and Safety Code ("HSC") (such Parts 1.8 and 1.85, including amendments and supplements enacted after AB X1 26, being referred to herein as the "Dissolution AcY'). C. Pursuant to the Dissolution Act, the Successor Agency is tasked with winding down the affairs of the Former Agency. D. Pursuant to HSC Section 34175(b), all real properties of the Former Agency transferred to the control of the Successor Agency by operation of law. E. On May 5, 2014, the Oversight Board adopted Resolution No. OB-073, approving a Long-Range Property Management P1an (the "Original LRPMP") which addresses the disposition of the real properties owned by the Successor Agency. F. On June 2, 2014, the State Department of Finance (the "DOF") approved the Original LRPMP. G. On September 21, 2015, the Oversight Board approved an amendment to Original LRPMP (the "LRPMP Amendment"), H. On December 9, 2015, the DOF approved the LRPMP, as amended by the LRPMP Amendment (the "LRPMP"). I. Pursuant to HSC Section 34191.3, the DOF-approved LRPMP shall govern, and supersede all other provisions of the Dissolution Act relating to the disposition and use of the real property assets of the Former Agency. J In August, 2018, the Successor Agency released a Notice Inviting Bids regarding the 128 Acre parcel of vacant land, located South of Gerald Ford Drive, North of Frank Sinatra Drive and West of Portola Avenue. � K. The materials made available to the potential bidders included the Development Summary and the current Preliminary Title Report. L. Per the result of the sealed bids opened on September 27, 2018, the highest bid received was in the amount of $7,135,000 (the "Accepted Bid"), received from Mission Valley Properties Development California , LLC, (the "Accep#ed Bidders"). M. A current appraisal of the property was ordered from Capital Realty Analysts and received on May 16, 2018. The report places the current appraised value of the property at $7,135,000. O. The Board is adopting this Resolution to accept the accepted bid for the sale of the 128 Acre Parcel of Vacant Land, South of Gerald Ford Drive, North of Frank Sinatra Drive and West of Portola Avenue pursuant to the LRPMP. NOW, THEREFORE, THE BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The Board hereby directs the acceptance of the Accepted Bid received for the 128 Acre Parcel of Vacant Land, South of Gerald Ford Drive, North of Frank Sinatra Drive and West of Portola Avenue from the Accepted Bidders and hereby directs staff to negotiate a purchase and sale agreement with the Accepted Bidder, which purchase and sale agreement shall only be entered into by the Successor Agency after approval of the purchase and sale agreement by the Consolidated Countywide Oversight Board to the Successor Agency and the approval, or deemed approval, by the Department of Finance. Section 3. The members of this Board and the staff of the Successor Agency are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution and the disposal of the subject property. APPROVED and ADOPTED this day of , 2018. AYES: NOES: ABSENT: ABSTAIN: ATTEST: SABBY JONATHON, CHAIRMAN RACHELLE D. KALSSEN, SECRETARY PALM DESERT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY . a�' ;,� .. '�\ � � v%.. ;. 128 Acre Property QSITE A Q SITE B Q Retention Bas�n r �j� ;3 � �. .:,.��