HomeMy WebLinkAboutRes OB-073 (2)OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVAL OF THE 2ND REVISION OF THE LONG RANGE
PROPERTY MANAGEMENT PLAN FOR THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
SUBMITTED BY: Martin Alvarez, Director of Economic Development
DATE: May 5, 2014
CONTENTS: Resolution No. OB - 073
State Department of Finance E-Correspondence
Joslyn Senior Center Exhibits
Recommendation
That the Oversight Board of the Successor Agency to the Palm Desert
Redevelopment Agency waive further reading and adopt a Resolution No.
OB -073 approving the 2nd revision of the Long Range Management Plan
for the Successor Agency to the Palm Desert Redevelopment Agency.
Background
On May 15, 2013, the State Department of Finance (DOF) issued a Finding of
Completion to the Successor Agency to the Palm Desert Redevelopment Agency
(Successor Agency). The Oversight Board of the Successor Agency to the Palm Desert
Redevelopment Agency (Oversight Board) approved the Successor Agency's Long
Range Property Management Plan (Management Plan) on June 24, 2013 and staff
submitted the Management Plan to the DOF on June 27, 2013. On January 17, 2014,
the DOF issued a letter to the Successor Agency indicating the Management Plan was
not approved and requested modifications, clarification and additional language on the
Management Plan. The Oversight Board approved the revisions requested by the DOF
and the revised Management Plan was submitted to the DOF on February 27, 2014.
The DOF recently contacted staff indicating that the Management Plan can be approved
in its entirety with two minor changes to the Management Plan and with approval by the
Oversight Board (see attached electronic correspondence).
Oversight Board Staff Report
Revised Long Range Property Management Plan
May 5, 2014
Page 2 of 3
Discussion
The DOF requested two minor modifications to the plan, which include:
1. Modifying the disposition strategy for Property No.s 2(a), 2(b) Joslyn Senior
Center Expansion from "Retain for Government Use" to "Sell" for appraised
value. The disposition strategies for both these parcels will be modified on the
Long Range Property Management Plan documents and map from "Purple"
Government Use to "Green" Sell. Also included in the modifications is the actual
acreage of parcel 2(b) from 1.03 to 0.65 (typographical error) and the language
indicating where the proceeds of the sale will go. The proceeds of the sale will
be distributed to the taxing entities, in accordance with the terms of Health and
Safety Section 34191.5(c)(2)(B). The Management Plan Property
Backgrounds/Summaries document has also been modified to reflect these
changes (see attached Resolution Exhibits).
Although staff submitted a copy of the architectural master plan and program
indicating that these properties were contemplated for the future expansion of the
Joslyn Senior Center, the DOF did not accept these documents since there are
no formal agreements, or contracts on record from the City or the Cove
Communities Commission (that we can locate), prior to the dissolution of RDA, to
support the use of the property for Governmental Use.
2. The second change requested by the DOF address a typographical error on
Property 12(a) Desert Willow Lot Pad. Specifically, the property description for
Property 12(a) on the Long Range Property Management Plan's Property
Background/Summaries document indicated that 3.0 acres of this property was
to be retained for Government Use (i.e. future drainage facility). The description
should read as follows:
Site 12(a) — This site consists of two parcels totaling 16.86, zoned Commercial
Resort. The Management Plan directs that the properties be liquidated and sold
for appraised value and that the proceeds of the sale be distributed as property
tax to the affected taxing entities, in accordance with the terms of Health and
Safety Code (HSC) section 34191.5(c)(2)(B). The Plan also dirocts that the
arnmantsl bg;e-and trancfer t„ the Cit„
Staff recommends that the Oversight Board approve the attached resolution with the
2nd revisions identified in Exhibit A., addressing the DOF's requested modifications.
G Vda\Martin Alvarez12014\OSB\LRPMP\OBSR LRPMP 5-5-14.doc
Oversight Board Staff Report
Revised Long Range Property Management Plan
May 5, 2014
Page 3 of 3
Fiscal Analysis
Approval of the Management Plan by the Oversight Board and the DOF will lead to the
sale of properties. The proceeds from the sale of properties will be sent to the County
for distribution as property tax to all taxing entities, pursuant to Health and Safety Code
Section 34191.5(c)(2)(B). Each taxing entity will receive their proportionate share as
determined by the Riverside County Auditor Controller.
Submitted By:
Martin Alvarez,
Director of Economic Development
Rudy Acosta, Assistant City Manager
Appro
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Paul S. Gibson, Director of Finance
I/Jo n M. Wohlmuth, Executive Director
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ON (� — —
VERIFIED
Original on file with City Clerk's Office
G.\rda\Martin Alvarez\2014\OSB\LRPMP\OBSR LRPMP 5-5-14.doc
Alvarez, Martin
From: Prisakar, Nicole <Nicole.Prisakar@dof.ca.gov>
Sent: Monday, April 14, 2014 1:07 PM
To: Alvarez, Martin
Cc: Medina Jackson, Susana
Subject: RE: LRPMP
Hi Martin,
I have looked some more at the additional documents provided for the Joslyn Center expansion and it seems
that the provided documents are not sufficient for it to be approved as governmental use property.
We can approve the plan in its entirety, when the plan states the revised permissible use for the Joslyn Center
properties and property 12(a) has no governmental use requested — those changes have to be approved by
the Oversight Board and re -submitted through the redevelopment e-mail.
You are not required to submit a revised plan, however you may choose to do so and have it approved by the
Oversight Board.
An alternative to a revised plan is to adopt the specific changes to the plan in the OB Resolution.
Let me know if you have any questions.
Thank you.
Nicole
From: malvarezCa�citvofoalmdesert.ora fmailto: malvarez(@citvofoalmdesert.oraj
Sent: Thursday, April 10, 2014 2:43 PM
To: Prisakar, Nicole
Subject: RE: LRPMP
Hi Nicole,
Per our telephone conversation, I want to clarify that our property 12(a) has no governmental
use requested. Page 7-8 of the written plan has a typographical error that references 3.0 acres
for government use. The two parcels under 12(a) will be sold for fair market value.
If you have any additional questions, please feel free to contact me at your convenience.
Thanks for your help.
Martin
From: Prisakar, Nicole fmailto: Nicole. PrisakarC@dof.ca.aovl
Sent: Thursday, April 10, 2014 1:39 PM
i
To: Alvarez, Martin
Subject: RE: LRPMP
Hi Martin,
Aside the changes recommended in our initial letter, I have noticed an additional change to Property 12(a) —
per original plan the two parcels were planned to be used for future development. Per revised plan the
majority of the two parcels is intended to be for sale — which is ok and 3 acres for governmental use (drainage
facility) — why was that not on the original plan? And, is this correct? — I know that Property 3 has a drainage
facility and 12(f) has a retention basin.
Please let me know.
Thank you.
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From: malvarez@citvofoalmdesert.ora fmailto: malvarez@citvofoalmdesert.oral
Sent: Monday, April 07, 2014 11:18 AM
To: Prisakar, Nicole
Subject: RE: LRPMP
Hi Nicole,
I just wanted to follow up with you and see if you have any follow up questions regarding our
plan and if you have an anticipated review schedule. As you know we have several properties
that are ready for disposition and our Oversight Board and taxing entities are seeking an
update on the status of the plan.
Thanks for your help.
Martin Alvarez
From: Prisakar, Nicole fmailto: Nicole.Prisakar@dof.ca.aovl
Sent: Thursday, March 13, 2014 4:37 PM
To: Alvarez, Martin
Subject: RE: LRPMP
Hello Martin,
Yes, I received the Oversight Board approved the revised Long Range Property Management Plan. Given that
ROPS start coming right before that, I did not get a chance to look at it. I should be able to take a look at it at
the end of next week or the following week. I will do it sooner if I get a chance.
2
RESOLUTION NO, OB-073
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
APPROVING THE 2ND REVISION OF THE LONG-RANGE PROPERTY
MANAGEMENT PLAN PREPARED BY THE SUCCESSOR AGENCY
PURSUANT TO HEALTH AND SAFETY CODE SECTION 34191.5,
DETERMING THAT APPROVAL OF THE LONG-RANGE PROPERTY
MANAGEMENT PLAN IS EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT, AND TAKING CERTAIN ACTIONS
IN CONNECTION THEREWITH
RECITALS:
A. Pursuant to Health and Safety Code Section 34175(b) and the California
Supreme Court's decision in California Redevelopment Association, et al. v. Ana
Matosantos, et al. (53 Ca1.4th 231(2011)), on February 1, 2012, all assets, properties,
contracts, leases, books and records, buildings, and equipment of the former Palm
Desert Redevelopment Agency (the "Agency") transferred to the control of the
Successor Agency to the Palm Desert Redevelopment Agency (the "Successor
Agency") by operation of law.
B. Pursuant to Health and Safety Code Section 34191.5(b), the Successor
Agency must prepare a Tong -range property management plan which addresses the
disposition and use of the real properties and interests in real property of the former
Agency, and which must be submitted to the Oversight Board of the Successor Agency
(the "Oversight Board") and the Department of Finance (the "DOF") for approval no later
than six months following the issuance by DOF to the Successor Agency of a finding of
completion pursuant to Health and Safety Code Section 34179.7.
C. Pursuant to Health and Safety Code Section 34179.7, DOF issued a
finding of completion to the Successor Agency on May 15, 2013.
D. The Successor Agency prepared and the Oversight Board approved the
2nd revisions of the Long -Range Property Management Plan (the "LRPMP"), in response
to the State Department of Finance's January 17, 2014 correspondence and disposition
and use of the real properties and interests in real property of the former Agency and
includes the information required pursuant to Health and Safety Code Section
34191.5(c). Whereas the Oversight Board approves final revisions to the LRPMP based
on electronic communication with the DOF requesting specific modifications to
Properties No. 2(a), 2(b) and 12(a) of the LRPMP. The specific modifications to the
LRPMP are hereby approved by the Oversight Board and attached hereto as Exhibit A.
Exhibit A is meant to replace specific pages and Map of the LRPMP submitted by
Oversight Board on Resolution No. 2014-067.
1
RES. NO. OB - 073
E. Pursuant to Health and Safety Code Section 34180(j), at the same time
the Successor Agency submitted the LRPMP to the Oversight Board, the Successor
Agency submitted the LRPMP to the County Administrative Officer, the County Auditor -
Controller, and DOF.
F. Pursuant to Health and Safety Code Section 34181(f), the public was
provided with at least ten days' notice of date of the meeting at which the Oversight
Board proposes to consider approval of the LRPMP.
NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a substantive part
of this Resolution.
Section 2. This Resolution is adopted pursuant to Health and Safety Code
Section 34191.5.
Section 3. The Oversight Board hereby approves the LRPMP as modified and
presented by the Successor Agency and attached hereto as Exhibit A.
Section 4. The staff of the Successor Agency is hereby directed to transmit to
DOF this Resolution together with written notice and information regarding the action
taken by this Resolution. Such notice to DOF shall be provided by electronic means
and in a manner of DOF's choosing.
Section 5. The staff and the Board of the Successor Agency are hereby
authorized and directed, jointly and severally, to do any and all things which they may
deem necessary or advisable to effectuate this Resolution and any such actions
previously taken are hereby ratified.
Section 6. This Resolution has been reviewed with respect to the applicability
of the California Environmental Quality Act (Public Resources Code Section 21000 et
seq.) ("CEQA"). Pursuant to the State CEQA Guidelines (14 Cal. Code Regs 15000 et
seq.)(the "Guidelines"), the Oversight Board has determined that the approval of the
LRPMP is not a project pursuant to CEQA and is exempt therefrom because it is an
organizational or administrative activity of government that will not result in direct or
indirect physical changes in the environment (Guidelines Section 15378(b)(5)). Further,
it can be seen with certainty that there is no possibility that approval of the LRPMP may
have a significant effect on the environment, and thus the action is exempt from CEQA
(Guidelines Section 15061(b)(3)). Staff of the Successor Agency is hereby directed to
prepare and post a notice of exemption pursuant to Guidelines Section 15062.
-2-
RES. NO. OB - 073
PASSED, APPROVED AND ADOPTED this day of , 2014.
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, CHAIR
ATTEST:
RACHELL D. KLASSEN, SECRETARY
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY
TO THE PALM DESERT REDEVELOPMENT AGENCY
-3-
RES. NO. OB - 073
EXHIBIT A
Long -Range Property Management Plan Revisions
-4-
RES. NO. OB - 073
LRPMP Property Background/Summaries
February 24, 2014
Page 3 of 10
in LRPMP are those remaining parcels that were acquired by the former RDA. The
details of the individual properties are listed in the Management Plan. The
Management Plan directs that properties 1(a-q) be liquidated and sold for
appraised value and that the proceeds of the sale be distributed as property tax
to the affected taxing entities. in accordance with the terms of Health and Safety
Code (HSC) section 34191.5(c)(2)(B).
Joslyn Senior Center Expansion— Properties 2(a), 2(b):
The Joslyn Senior Center sites consist of two parcels totaling 1.3 acres. The parcels
are located adjacent to the City owned Joslyn Cove Communities Senior Center, which
serves the region and specifically the communities of Palm Desert, Rancho Mirage and
Indian Wells. The Senior Center serves over 38,000 seniors over the age of 50 on an
annual basis. These parcels were originally intended to facilitate the future expansion
of the senior center. The Management Plan directs that properties 2(a) and 2(b) be
liquidated and sold for appraised value and that the proceeds of the sale be
distributed as property tax to the affected taxing entities, in accordance with the
terms of Health and Safety Code (HSC) section 34191.5(c)(2)(B).
Haystack Open Space — Property 3
The Haystack property total 1.90 acres. The property was acquired to facilitate the
installation of a drainage facility and retention of open space. The parcel contains an
underground drainage pipe that serves residential neighborhoods in this area. Having
the drainage pipe underground makes the parcel undevelopable and its' only use is for
open space. The Management Plan directs that the Successor Agency retain the
site for governmental use and transfer the property to the City for use as public
open space.
RES. NO. OB - 073
LRPMP Property Background/Summaries
February 24, 2014
Page 8 of 10
appraised value and that the proceeds of the sale be distributed as property tax
to the affected taxing entities, in accordance with the terms of Health and Safety
Code (HSC) section 34191.5(c)(2)(B).
Site 12(b) — This site consists of two parcels totaling 17.68 aces. 14.652 acres are
undeveloped and 3.028 acres are developed as a public parking lot that serves the
community and the City owned Desert Willow Golf Resort (see attached legal
description). The Management Plan directs that 14.652 of the 17.68 acres be
liquidated and sold for appraised value and that the proceeds of the sale be
distributed as property tax to the affected taxing entities, in accordance with the
terms of Health and Safety Code (HSC) section 34191.5(c)(2)(B). The Management
Plan also directs that the Successor Agency retain 3.028 acres for governmental
use and transfer to the City of Palm Desert for use as public parking.
Site 12(c) - This site consists of five parcels totaling 18.845 aces. Included in this site,
the Successor Agency has two miscellaneous parcels (A.P.N. 620-450-011 & 620-450-
015, totaling 0.79 acres) that were inadvertently never transferred to the City of Palm
Desert and are currently used as part of the City owned Desert Willow Mountainview
Golf Course (see attached map). The Management Plan directs that 18.055 of the
18.845 acres be liauidated and sold for appraised value and that the proceeds of
the sale be distributed as property tax to the affected taxing entities. in
accordance with the terms of Health and Safety Code (HSC) section
34191.5(c)(2)(B). The Manaaement Plan also directs that the Successor Agency
retain 0.79 acres (A.P.N. 620-450-011 & 620-450-015) for governmental use and
transfer to the City of Palm Desert as part of the existing City owned recreational
facility.
Site 12(d) — This site consists of five parcels totaling 17.48 acres. Included in this site
the Successor Agency has one miscellaneous parcel (A.P.N. 620-450-021, totaling 2.10
acres) that was inadvertently never transferred to the City of Palm Desert and is
currently used as part of the City owned Desert Willow Mountainview Golf Course (see
attached map). The Management Plan directs that 15.38 of the 17.48 acres be
liquidated and sold for appraised value and the proceeds of the sale be
distributed as property tax to the affected taxing entities, in accordance with the
terms of Health and Safety Code (HSC) section 34191.5(c)(2)(B). The Management
Plan also directs that the Successor Agency retain 2.10 acres (A.P.N. 620-450-
RES. NO. OB - 073
LRPMP Property Background/Summaries
February 24, 2014
Page 9 of 10
021) for governmental use and transfer to the City of Palm Desert as part of the
existing City owned recreational facility.
Site 12(e) — This site consists of eight parcels totaling 11.14 acres. The Management
Plan directs that this site be liquidated and sold for appraised value and that the
proceeds of the sale be distributed as property tax to the affected taxing entities,
in accordance with the terms of Health and Safety Code (HSC) section
34191.5(c)(2)(B).
Site 12(f) — This site consist of one parcel totaling 19.85 acres. 4.238 of the 19.85 acres
are currently developed and used as a storm water retention basin (see attached legal
description). The remaining 15.612 acres are undeveloped. The Management Plan
directs that 15.612 out of the 19.85 acres be liquidated and sold for appraised
value and that the proceeds of the sale be distributed as property tax to the
affected taxing entities, in accordance with the terms of Health and Safety Code
JHSC) section 34191.5(c)(2)(B). The Management Plan also directs that the
Successor Agency retain 4.238 acres for governmental use and transfer to the
City of Palm Desert for continue use as a drainage facility.
Site 12(g) — This site consist of two parcels totaling 9.34 acres. The parcels are
currently undeveloped. The Management Plan directs that the properties be
liquidated and sold for appraised value and that the proceeds of the sale be
distributed as property tax to the affected taxing entities, in accordance with the
terms of Health and Safety Code (HSC) section 34191.5(c)(2)(B).
Casey's Restaurant Site — Property No. 13
The subject property was acquired in 2005 to facilitate the redevelopment of blighted
property. The site currently totals 2.924 acres, which includes a 4,943 square foot
restaurant building, 500 square foot office building, parking facilities and a vacant lot.
The Successor Agency's lease with Casey's Restaurant has been terminated at the
request of the lessee. The Management Plan directs that 1.64 acres out of the 2.924
acres be liquidated and sold for appraised value and the proceeds of the sale be
distributed as property tax to the affected taxing entities, in accordance with the
terms of Health and Safety Code (HSC) section 34191.5(c)(2)(B). The Management
Plan also directs that the Successor Agency transfer 1.284 acres to the Palm
Desert Housing Authority for governmental use (i.e. future affordable senior
housing). The affordable housing site has been designed and includes the
8
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SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY - LONG RANGE PROPERTY MANAGEMENT PLAN
RES. NO. OB — 073
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13
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