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Home My WebLink About14 SARDA APN 694-310-006 NON SLASTAFF REPORT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ECONOMIC DEVELOPMENT MEETING DATE: December 16, 2021 PREPARED BY: Martin Alvarez, Director of Economic Development REQUEST: Adoption of a Resolution of the Board of the Successor Agency to the Palm Desert Redevelopment Agency Finding that Real Property Identified as approximate +/-11.94-acre portion of APN 694-310-006 is Not Subject to Requirements of the Surplus Land Act. Recommendation That the Successor Agency Board: 1. Waive further reading and adopt Successor Agency Resolution No. SA- RDA-087, a resolution finding that the real property owned by the Successor Agency to the Palm Desert Redevelopment Agency ("SARDA") located on the south side of Gerald Ford Drive, east of the Palm Desert Sheriff Station, identified as the approximate +/-11.94 acre portion of APN 694-310-006 is not subject to requirements of the Surplus Land Act (SLA); 2. Authorize staff to submit a copy of this resolution to the California Department of Housing and Community Development ("HOD"); and 3. Authorize the Executive Director and staff in consultation with SARDA legal counsel, to take any other actions they deem appropriate or necessary and are consistent to effectuate the purposes of the proposed resolution. Strategic Plan Land Use, Housing & Open Space Priority 2: Facilitate development of high -quality housing for people of all income levels. This request meets that objective by diversifying the City's housing stock for very low and lower income households Background The subject property is owned by the SARDA and is required to be sold as part of approved Long Range Property Management Plan. In September of 2020, the SARDA Board approved a Purchase and Sale Agreement with Pacific West Group. As part of the transaction the attached resolution is required to be adopted to fulfill the requirements of California Surplus Land Act. The California Surplus Land Act (Government Code 54220 December 16, 2021 - Staff Report SARDA - Finding of APN 694-310-006 Not Subject to Requirements of Surplus Land Act Page 2of3 et seq.) ("SLA" or the "Act") governs the sale of surplus land and requires local agencies to prioritize opportunities for certain uses of surplus land, including affordable housing development. Land may be declared either "surplus land" or "exempt surplus land" by the legislative body of the local agency as supported by written findings. Effective January 1, 2020, the SLA defines a "local agency" to include the SARDA. However, Government Code Section 54234(b) provides that with respect to land that has been designated in a successor agency's long-range property management plan for sale, the SLA, as it existed on December 31, 2019, will apply to the disposition of the land if (i) an exclusive negotiating agreement for disposition was entered into not later than December 31, 2020, and (ii) the disposition is completed not later than December 31, 2022. SARDA owns the property located along Gerald Ford Drive identified as the approximate +/-11.94 acre portion of APN 694-310-006 (the "Property"). On December 9, 2015, the California Department of Finance ("DOF") approved the SARDA's Long Range Property Management Plan, as amended ("LRPMP"), which includes the Property. In September of 2020, the SARDA Board authorized the Executive Director to enter into an Exclusive Negotiating Agreement ("ENA") with Pacific West Communities, Inc. ("Developer") for the purpose of negotiating the terms and conditions upon which SARDA would sell the Property to the Developer to develop the Project. The Developer met the conditions of the ENA and proposes to construct a 269-unit multi -family residential apartment community for households with incomes between 30% and 80% of the area median income. Currently, the Property is not subject to the requirements of the SLA. This is because SARDA entered into the ENA for the Property prior to December 31, 2020. If the Developer fails to close escrow by December 31, 2022, the Property will become subject to the requirements of the SLA. Staff recommends that the SARDA Board adopt a resolution (Exhibit A) declaring its finding that the Property is not subject to requirements of the SLA pursuant to Government Code Section 54234(b) and approve the related actions taken therein. Environmental Review Sales of surplus government property are exempt from the California Environmental Act (CEQA) pursuant to Title 14 Section 15312 of the California Code of Regulations. -2- 12812-0001\2546229v3.doc December 16, 2021 - Staff Report SARDA - Finding of APN 694-310-006 Not Subject to Requirements of Surplus Land Act Page 3 of 3 Fiscal Analysis There is no immediate financial impact or budget action necessary as a result of the recommended actions. LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT REVIEW CITY MANAGER NIA Andy Jirestine RH Robert W. Hargreaves City Attorney MA Martin Alvarez Director of Economic Development Services Janet M. Moore Andy Firestine Director of Assistant City Finance Manager City Manager: L. Todd Hileman: L. Todd HiLemavt Attachments: 1. Resolution No. SA-RDA-087 2. Project Site Map - P pFl 0E-7 N pproed frAdrzoieti Pe5 BY SA -RDA ON 1 L U Z.0 Lt VERIFIED BY: NIA / S r5 Original on file with City Clerk's Office Nateihde,OUihi2thill4 }+lalnll`- ND None -3- 12812-0001 \2546229v3. doc RESOLUTION NO. SA -RDA - 087 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY FINDING THAT REAL PROPERTY OWNED BY THE SUCCESSOR AGENCY LOCATED IN THE CITY OF PALM DESERT ALONG GERALD FORD DRIVE AND IDENTIFIED AS THE APPROXIMATELY 11.94 ACRE PORTION OF APN 694-310-006 IS NOT SUBJECT TO REQUIREMENTS OF THE SURPLUS LAND ACT, AND TAKING RELATED ACTIONS RECITALS: A. Pursuant to AB X1 26 (which became effective in June 2011) (as subsequently amended, the "Dissolution Act") and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the Palm Desert Redevelopment Agency ("Former Agency") was dissolved as of February 1, 2012, and the City of Palm Desert elected to serve as the successor agency to the Former Agency ("Successor Agency"); and B. Pursuant to the Dissolution Act, properties of the Former Agency, including the property located along Gerald Ford Drive and identified as the approximately 11.94 acre portion of APN 694-310-006 in the City of Palm Desert (the "Property") transferred to the Successor Agency by operation of law and the Successor Agency owns the Property in fee simple. The Property is described on Exhibit "A", attached hereto; and C. On December 9, 2015, the California Department of Finance ("DOF") approved the Successor Agency's Long Range Property Management Plan, as amended ("LRPMP"), prepared pursuant to Health and Safety Code Section 34191.5, which includes the Property and requires the Successor Agency to sell the Property; and D. The Surplus Land Act (Government Code Sections 54220-54234) generally requires the governing board of a local agency that owns land in fee simple which is not necessary for the agency's use to take formal action in a regular public meeting to declare that the land is surplus land or exempt surplus land prior to undertaking other action to dispose of the land; and E. As amended by Assembly Bill 1486, which took effect on January 1, 2020, the Surplus Land Act defines "local agency" for purposes of the Surplus Land Act to include the Successor Agency, but Government Code Section 54234(b) also provides that with respect to land that has been designated in a long range property management plan pursuant to Health and Safety Code Section 34191.5 for sale, the Surplus Land Act, as it existed on December 31, 2019, without regard to the changes made to the Surplus Land Act by Assembly Bill 1486, shall apply to the disposition of the land if (i) an exclusive negotiating agreement for disposition is entered into not later Page 1 of 3 12812-0001 \2574411 v2.doc than December 31, 2020 and (ii) the disposition is completed not later than December 31, 2022; and F. The Successor Agency entered into an exclusive negotiating agreement with respect to the disposition of the Property with Pacific West Communities, Inc., dated October 21, 2020 ("ENA"); NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution. SECTION 2. The Board of Directors hereby finds that because the Successor Agency entered into the ENA with respect to the disposition of the Property prior to December 31, 2020, the disposition of the Property is not subject to the Surplus Land Act, provided that the disposition of the Property is completed not later than December 31, 2022. SECTION 3. The staff of the Successor Agency are hereby authorized to submit a copy of this Resolution to HCD. SECTION 4. The staff and officers of the Successor Agency are hereby authorized, jointly and severally, to take any other such actions as they deem necessary or proper to effectuate the purposes of this Resolution, and all actions previously taken are hereby ratified. SECTION 5. The Board of Directors hereby finds that appropriate environmental review pursuant to the California Environmental Quality Act will be completed as part of the process to dispose of the Property. [SIGNATURES TO FOLLOW ON TH NEXT PAGE] 12812-0001 \2574411 v2.doc Page 2of3 PASSED, APPROVED, AND ADOPTED this 16th day of December, 2021. AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK CHAIR OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ATTEST: NORMA I. ALLEY, MMC SECRETARY OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY Page 3of3 12812-0001 \2574411 v2.doc EXHIBIT "A" LEGAL DESCRIPTION OF SUBJECT PROPERTY The Land referred to herein below is situated in the City of Palm Desert, County of Riverside, State of California, and is described as follows: A PORTION OF PARCEL 1 OF THAT CERTAIN CERTIFICATE OF COMPLIANCE NO. 88-1, RECORDED JUNE 1, 1988 AS INSTRUMENT NO. 146461 OF OFFICIAL RECORDS. IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, LOCATED IN THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 32, TOWNSHIP 4 NORTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID PARCEL 1; THENCE NORTH 89°55'15" EAST, ALONG THE NORTHERLY LINE OF SAID PARCEL 1, SAID LINE ALSO BEING THE SOUTHERLY RIGHT-OF-WAY LINE OF GERALD FORD DRIVE, A DISTANCE OF 514.35 FEET; THENCE SOUTH 47°23'23" EAST, A DISTANCE OF 34.01 FEET; THENCE SOUTH 00°03'36" WEST, A DISTANCE OF 942.64 FEET; THENCE NORTH 89°56'24" WEST, A DISTANCE OF 539.40 FEET; THENCE NORTH 00°03'36" EAST, ALONG THE WESTERLY LINE OF SAID PARCEL 1 AND THE SOUTHERLY EXTENSION THEREOF, A DISTANCE OF 964.39 FEET, TO THE POINT OF BEGINNING; SUBJECT TO EXISTING EASEMENTS, COVENANTS, RIGHTS AND RIGHTS -OF - WAY OF RECORD. CONTAINING 520,257 SQUARE FEET OR 11.943 ACRES MORE OR LESS. AS DEPICTED ON EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. THIS LEGAL DESCRIPTION DOES NOT DESCRIBE A LEGAL PARCEL OF LAND. IT IS NOT TO BE USED FOR CONVEYANCE OR FINANCING OR ANY OTHER PURPOSE THAT WOULD BE A VIOLATION OF THE CALIFORNIA SUBDIVISION MAP ACT. Exhibit A - Page 1 of 2 12812-0001\2574411v2.doc a' EXHIBIT 'B' GERALD FORD DRIVE PA.B. J NW COR PARCEL 1 CERTIFICATE OF COMPLIANCE NO. 88-1 INST NO. 1988-146461 200' 400' SCALE 1"-200' N 89-55' 15' E 514.35' 5 4723'23" E 34.01' N 00'03'36" E 964.39' S 00'03'36" W 942.64' REMBRANDT PARKWAY N 89'56'24" W 539.40' p. of c0 19g8 $ 0 GC56\C,GPNSG o6.1o\\ \Z� MSA CONSULTING, INC. ti > PLANNINGCIVIL ENGINEERING a LAND SURVEYING 34200 BOB HOPE DRIVE, RANCHO MIRAGE. CA 92270 760.320.9611 MSACONSULTINGINC.COM J.N. 2619 PORTOLA AVENUE SHEET 1 OF I� 12812-0001 \2574411 v2.doc Exhibit A - Page 2 of 2 cowwnm1lE2 cow (/)MEC(if; frvEl cowwnmilE2 cow ME21 /. ME Vitalia Apartments Gerald Ford Drive, west of Portola Drive Palm Desert, California Co) Acj