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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 gw9% Paul S. Gibson, Director of Finance I/Jo n M. Wohlmuth, Executive Director et-m (6 - 0 ; k•et neuxnyzn A$56N ts J (40 •Of5 '° BY OVERSIGHT BOARD 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. /ti,cr!c �i rsaRa. %bau:Jct .'cal'�Pucr�;nrcnC( c'r,t 12-1 artrne'r, t Cr' FnrinLr: ,%70- 4,S-7,5¢G cx( 3738 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 PIA; .111111111_11111I11111 001111_11 _ _ . z G.) 0■•s jmin No■EIll8■o■i I. co m n 7J W to Ll U CO A tC • G7 Z1 m 0 C mE( .ma. m( a W g • n m a N v m m m a d m w m m w? m m m a a a a a a a n a a 6 a a Iw IN '� �w C co N O 0 N O COO 0 rbloZIL) s eoie.. r epuno: AU r N 0 0 N CI e9 C — CD • O Z 0 O RES. NO. 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OB — 073 HOVLE' LNiE 13 CARLOS ORTEGA VILLAS SENIOR HOUSING 11(a-h) 132 ACRE 12(f) DESERT WILLOW _CF 11(h) 132 ACRE ERAL' �'=OltD'DR 12(0 DESERT WILLOW 12(b) DESERT WILLOW 12(b) DESERT WILLOW 8 ENTRADA DEL PASEO LOT PAD 14 HILLSIDE OPEN SPACE it Ito 5(a-e) COLLEGE OF THE DESERT MAGNE I F 4 ADOBE VILLAS / PUBLIC PARKING MAW K'.RD.__.-_..._ -LONG RANGE PROPERTY MANAGEMENT PLAN 10(a-b) CAL STATE SAN BERNARDINO UNIVERSITY 12(a) DESERT WILLOW 12(d) DESERT WILLOW 12(c) DESERT WILLOW 12(d) DESERT WILLOW e 12(e) .., .I DESERT WILLOW 6(a-c) - 1PORTOLA AVE ROADWAY; WIDENING PROJECT NG DR 2(a-b) JOSELYN SENIOR CENTER EXPANSION 1(a-g) ALESSANDRO ALLEY 7(a-b) LARKSPUR SITE 3 HAYSTACK OPEN SPACE 13 CAS EY'S RESTAURANT W RING'.DR RETAIN FOR GOVERNMENT USE SELL