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Home My WebLink About13 Res SA-RDA 81 - PSA - GHA Montage LLCSTAFF REPORT SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT ECONOMIC DEVELOPMENT MEETING DATE: December 10, 2020 PREPARED BY: Wayne Olson, Senior Management Analyst REQUEST: Adopt Resolution No. SA-RDA - 81, approving a Purchase Sale Agreement between SARDA and GHA Montage, LLC for 23.29-acre portion of the 128-acre site located at the northwest corner of Portola Avenue and Julie Lane. _____________________________________________________________________ Recommendation By Minute Motion: 1. Waive further reading, and adopt Resolution No. SA-RDA-81, approving a Purchase and Sale Agreement (PSA) between the Successor Agency to the Palm Desert Redevelopment Agency (SARDA) and GHA Montage, LLC for a 23.29-acre portion of the 128-acre site with a purchase price of $1,430,000 (Fair Market Value) located at the northwest corner of Portola Avenue and Julie Lane (APNs- 694-300- 001, 002, 005, 014, 015). Executive Summary Pending direction from the Successor Agency to the Palm Desert Redevelopment Agency (SARDA) Board to staff, staff will execute a PSA between the SARDA and GHA Montage, LLC to sell the five parcels referenced above pending approval of the attached resolution and approval by the Riverside County Oversight Board (OB). The sale of the property is for fair market value ($1,430,000). As part of the approval process for presentation to the Riverside County Oversight Board in January 2021, a resolution by the SARDA Board must also accompany the approval of the PSA. Staff recommends waiving further reading and that the SARDA Board adopt the attached resolution. Discussion Attached for consideration is a SARDA Board resolution required by the Riverside County Oversight Board pursuant to the Policies and Procedures Manual of the OB. This will allow staff to complete the documentation required to receive approval on January 7, 2021, at the OB meeting in order to execute the PSA. If the OB approves the action at that meeting, no further approvals are required since the land transfer comports to the approved SARDA Long Range Property Management Plan. December 10, 2020 Resolution of SARDA Board — GHA Purchase Sale Agreement Page 2 of 2 Fiscal Analvsis The property is listed on the LRPMP and is to be sold for appraised fair market value. Disposition of the SARDA owned 23.39 acres will yield $1,430,000 (fair market value as of most recent appraisal, October 2020) in sale proceeds upon closing. Consistent with the approved SARDA LRPMP and in accordance with the terms of the California Health and Safety Code, the proceeds will be distributed by the County to the applicable taxing entities. The City of Palm Desert as a taxing entity is eligible to receive approximately three (3) percent of the sales proceeds of $42,900. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Marfi.w ALva.�-e-z I��i .FT�_1l�FTi�7 ��. ��oo2G Robert W. Director of Janet M. Moore Hargreaves Economic Director of City Attorney Development Finance Interim City Manager, Randy Bynder: Xarccy�ynder Attached: Resolution SA-RDA - 81 Site Map .Andy �'irestine Andy Firestine Assistant City Manager ��b(J�S�,( �V 8A-FI�A � -� ON ( :� -IO � d.(��O , VERIFIED BY: —t Ori �nal on file with City CI 's Office ��5s � f�a�niK�r�6r�n,1��I�, C�.��nlan�( Icz,, � K2l l �� . Y -1- RESOLUTION NO. SARDA-81 A RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A PURCHASE OPTION AGREEMENT FOR A 23.29 ACRE PORTION (THE SITE) (APNS-694-300-001, 002, 005, 014, 015) OF THE 128-ACRE SITE (THE “SITE), LOCATED AT THE NORTHWEST CORNER OF PORTOLA AVENUE AND JULIE LANE 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 Redevelopment 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 California 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 Act”). 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 Plan (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”). -2- 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 2020, the Successor Agency received a proposal for a portion of the 128-acre parcel of approximately 23.29 acres with APNS- 694-300-001, 694-300-002, 694-300-005, 694-300-014, and 694-300-015. K. The proposal received was in the amount of $1,430,000 received from GHA Montage, LLC (the “GHA”). L. On August 12, 2020, the Successor Agency entered into an exclusive right to negotiate an agreement with GHA. M. A current appraisal of the property was ordered from Capital Realty Analysts dated September 2, 2020. The report places the current appraised value of the property at $1,430,000. N. The Board is adopting this Resolution to approve the Real Estate Option and Purchase and Sale Agreement and Escrow Instructions (the “Purchase and Sale Agreement”) for the sale of a 23.29 acres portion of the 128-acre parcel located at the northwest corner of Portola Avenue and Julie Lane of pursuant to the LRPMP, on file with the Successor Agency. 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 Interim Executive Director to execute a Purchase and Sale Agreement with GHA for a 23.29 acres portion of the 128-acre parcel located at the northwest corner of Portola Avenue and Julie Lane, 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, by the Department of Finance, if required, subject to minor confirming and clarifying changes approved by the Interim Executive Director and Agency Legal Counsel. -3- 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 _________________ 2020. AYES: NOES: ABSENT: ABSTAIN: , CHAIRMAN ATTEST: , SECRETARY PALM DESERT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY JERI LN PORTOLA AVEPORTOLA AVE ACADEMY LN E GERALD FORD DRGERALD FORD DR SCHOLAR LN W SCHOLAR LN E WINDFLOWER CT SHEPHERD LNSHEPHERD LNSHEPHERD LNPORTOLA POINTE LN COSMOPOLITAN LN CO L L E GE D R MONDRIAN PL ANASTACIA LN ENCORE LN JULIE LN TESLA DR 694300001 694300002 694300005 694300014 694300015 JERI LN PORTOLA AVEPORTOLA AVE ACADEMY LN E GERALD FORD DRGERALD FORD DR SCHOLAR LN W SCHOLAR LN E WINDFLOWER CT SHEPHERD LNSHEPHERD LNSHEPHERD LNPORTOLA POINTE LN COSMOPOLITAN LN CO L L E GE D R MONDRIAN PL ANASTACIA LN ENCORE LN JULIE LN TESLA DR 694300001 694300002 694300005 694300014 694300015 GHA/SARDA ENA I VICINITY MAP