HomeMy WebLinkAboutCC RES 02-084RESOLUTION NO. 02-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT APPROVING THE SALE BY THE PALM DESERT
REDEVELOPMENT AGENCY OF CERTAIN REAL PROPERTY
CONSISTING OF APPROXIMATELY 0.39 ACRES ON A PARCEL
LOCATED BETWEEN PAINTERS PATH, HIGHWAY 111, THE PALM
VALLEY STORM CHANNEL AND WEST EL PASEO PURSUANT TO A
DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN
THE PALM DESERT REDEVELOPMENT AGENCY AND DERVIEUX,
INC. (D/B/A CUISTOT)
The City Council of the City of Palm Desert hereby finds, determines,
resolves, and orders as follows:
Section 1. On July 11, 2002, the City Council of the City of Palm Desert
(the "City") and the Palm Desert Redevelopment Agency (the "Agency") held a
duly noticed joint public hearing on the approval of the Agency's proposed sale of
certain real property consisting of approximately 0.39 acres located in the
Agency's Project Area No. 1 (the "Property"), as described in that certain
Disposition and Development Agreement (the "Agreement") by and between
DERVIEUX, INC., A CALIFORNIA CORPORATION D/B/A CUISTOT (the
"Developer") and the Agency, at which time all persons desiring to comment on or
ask questions concerning the Agreement and the lease of the Property to
Developer were given the opportunity to do so. On or before June 27, 2002,
information concerning the Agency's proposed sale of the Property to Developer, a
copy of the Agreement, and the Summary Report prepared pursuant to California
Health and Safety Code Section 33433 were made available for public inspection
and copying in the offices of the Palm Desert Redevelopment Agency at 73-510
Fred Waring Drive, Palm Desert, California 92260 between the hours of 8:00 a.m.
and 5:00 p.m., Monday through Friday. Notice of the public hearing was
published in The Desert Sun on Thursday, June 27, 2002, and Thursday, July 4,
2002.
Resolution No. 02-84
Section 2. Pursuant to the Agreement, the Developer covenants to
construct certain improvements on the Property within a certain time period as
therein described, including but not limited to an approximately 7,500 square foot
restaurant facility, including a 2,000 square foot exterior patio, and certain public
improvements.
Section 3. The City Council reviewed and considered all written and oral
comments, questions and concerns regarding the Agency's proposed sale of the
Property to Developer received prior to and at the public hearing on July 11, 2002.
Section 4. The Property contains approximately 0.39 acres and, pursuant
to the Agreement, will be sold to the Developer for a purchase price of $750,000.
The Agency Staff obtained a report prepared by a real estate analysis services
company which evaluated the fair market value of the Property at its highest and
best use, and determined that the probable fair market value of the Property at its
highest and best use is approximately $20.50 per square foot. A summary report
prepared pursuant to California Health and Safety Code Section 33433 is attached
hereto as Exhibit "A."
Section 5. Project Area No. 1 is an area which has previously been
identified in the Redevelopment Plan for Project Area No. 1 originally approved and
adopted by the City Council of the City pursuant to Ordinance No. 80 on July 16,
1975, as may be amended from time to time, as a blighted area. The area has
previously been determined to create a social and economic burden on the
community which cannot reasonably be expected to be reversed or alleviated by
private enterprise or governmental action, or both, without redevelopment. In
699257-2
Resolution No. 02-84
addition, Project Area No. 1 contains vacant and under-utilized properties and
properties which suffer from economic dislocation, deterioration or disuse,
including depreciated or stagnant property values and impaired investments.
Project Area No. 1 is characterized by the existence of inadequate public
improvements, public facilities and open spaces which cannot be remedied by
private or governmental action without redevelopment.
Section 6. The City Council hereby finds that the sale of the Property
pursuant to the Agreement will assist in the elimination of blight by providing for
Developer's construction of certain improvements and use described in the
Agreement on previously vacant, under-utilized land, which will remedy the lack of
adequate public improvements, assist in the revitalization of Project Area No. 1,
encourage private sector investment and create job opportunities, all for the
health, safety and welfare of the residents and taxpayers of the City.
Section 7. The City Council hereby finds that the proposed sale of the
Property is consistent with the Agency's implementation plan adopted pursuant to
California Health and Safety Code Section 33490.
Section 8. The City Council hereby finds that the consideration to be paid
by Developer pursuant to the Agreement is not less than the fair market value of
the Property at its highest and best use in accordance with the Redevelopment
Plan for the Agency's Project Area No. 1.
Section 9. In 1989, an Environmental Impact Report was prepared and
approved for the Ahmanson Commercial Development Plan, which was proposed for
the same approximately twelve (12) acre site of which the Property is a part (the
"Master Site"), pursuant to the requirements of the California Environmental Quality
Act (CEQA). The Agency Staff and the Director of Community Development have
699257-2
Resolution No. 02-84
found that (a) the proposed project (sale of the Property for construction of a
restaurant facility) is a project within the scope of the EIR prepared for the Master Site,
(b) the proposed project constitutes a Tess intensive use than the proposed
development of the Master Site contemplated by the EIR, and (c) pursuant to California
Public Resources Code Section 21090 and State CEQA Guidelines Section 15180,
further environmental review of the project is not required. The Agency Staff found,
and the City Council finds, in the exercise of its independent judgment, that none of
the factors specified in State CEQA Guidelines Section 15162 or 15163 apply and
therefore no subsequent or supplemental EIR or Negative Declaration is required.
Specifically, substantial changes have not occurred with respect to the circumstances
under which the project is undertaken which require major revisions to the previous EIR
due to the involvement of new significant environmental effects or a substantial
increase in the severity of previously identified significant effects. In addition, new
information of substantial importance, which was not known and could not have been
known with the exercise of reasonable diligence, is not present in this matter and does
not arise due to the proposed Agreement. Based on all the information in the record of
this matter, and on the grounds, including but not limited to those specified above, the
City Council hereby finds the project exempt from CEQA pursuant to State CEQA
Guidelines Section 15180. The City Council further finds that the project will have a
de minimus impact on wildlife resources. The City Council directs staff to file a Notice
of Exemption and any other required environmental filings with the County Clerk's
Office.
Section 10. The City Council hereby approves the Agreement and the
Agency's sale of the Property to Developer in accordance with the terms and
conditions of the Agreement pursuant to the requirements of California Health and
Safety Code Section 33433(b), and authorizes the Agency's Executive Director
and/or any other authorized officers of the Agency to take such actions, perform
699257-2
Resolution No. 02-84
such deeds, and execute, acknowledge and deliver such instruments and
documents as the Agency deems necessary in connection therewith. The City
Council hereby authorizes the Agency's Executive Director and/or any other
authorized officers of the Agency to enter into the Agreement in substantially the
form now on file with the City Clerk, with such changes therein as may be
necessary and as the Executive Director may approve, in its discretion, as being in
the best interests of the City, such approval to be conclusively evidenced by the
execution and delivery thereof, in order to effectuate the development and
operation of the Property by the Developer, and to take such actions, perform such
deeds, and execute, acknowledge and deliver such instruments and documents as
it deems necessary in connection therewith.
PASSED, APPROVED and ADOPTED this 1 1th day of July, 2002, by the
following vote to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
699257-2
BENSON, CRITES, SPIEGEL, KELLY
NONE
NONE
FERGUSON
S'S
RICHARD S. KELLY, MAYOR
Resolution No. 02-84
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE)
',Rochelle D. Klas§aity Clerk of the City of Palm Desert, do hereby certify that
the entire number of councilmembers of the City Council of the City of Palm Desert is
five; that the foregoing resolution, being Resolution No. 02- 84 was duly and regularly
adopted by said City Council at a regular meeting duly held on the 1 1th day of July,
2002, and that the same was passed and adopted by the following vote:
AYES: COUNCILMEMBERS: BENSON, . CRITES, SPIEGEL, KELLY
NOES: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: FERGUSON
c;?1,20-a
RACHELL D. KLASSEN
CITY CLERK
Resolution No. 02-84
Exhibit "A"
Summary Report Prepared pursuant to Section 33433
[To be provided]
REASCO
June 26, 2002
REAL ESTATE ANALYSIS SERVICES CO.
POST OFFICE BOX 2809, PALM DESERT, CALIFORNIA 92261
TEL: (760) 340-1429; FAX: (760) 340-2041; EMAIL: LRWREASCO@AOL.COM
Ms Lauri Aylaian
Project Administrator
PALM DESERT REDEVELOPMENT AGENCY
CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, Califomia 92260
REFERENCE: Proposed Sale Of Land To Dervieux. Inc.
SUBJECT: Report Pursuant To Section 33433 Of The California Health And Safety Code
NOTE 1: This report is based on the terms and conditions of the Disposition and Development
Agreement dated July 11 . 2002 between the Palm Desert Redevelopment Agency (the
"Agency') and Dervieux, Inc., a California corporation, dibla Cuistot
Dear Ms Aylaian,
Coates to: David Yrigoyen
Justin McCarthy
Section 33433 of the Califomia Health and Safety Code stipulates that before any property of the Agency, acquired
directly or indirectly with tax increment funds, is sold or leased for development purposes pursuant to the
redevelopment plan, the sale or lease shall first be approved by the legislative body by resolution after public
hearing. The property the Agency proposes to sell to Dervieux, Inc. falls into the category covered by Section 33433.
I have prepared a comprehensive report (included as an attachment to this letter) which is required in order to
comply with Section 33433. Pursuant to the report, I have concluded that the following findings can be included
in the resolution aoorovina the sale:
FINDING #1: The Property is currently completely unimproved, and the development of the Project will
assist in the elimination of blight in the area.
FINDING #2: Sale of the Property Is consistent with the implementation plan adopted pursuant
to Section 33490 of the California Health and Safety Code.
FINDING #3: The consideration is not less that the Fair Market value.
The rationale for these findings can be found in the attached report.
Yours truly,
Leonard' R. Wolk
Leonard R. Wolk, President Real Estate Analysis Services Company (REASCO)
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05:25 PM
w
0041111
REPORT PURSUANT TO SECTION 3343
- page 2 -
This report was prepared to comply with the requirements of California Health and Safety Code Section 33433.
The report contains the following sections: Section 1, a summary of the terms and conditions of the proposed
Disposition and Development Agreement (the "DDA") between the Palm Desert Redevelopment Agency (the
"Agency"), and Dervieux, Inc., a California corporation d/b/a Cuistot (the "Developer"). concerning the proposed
acquisition by the Developer of certain real property owned by the Agency; Section 2, the cost of the DDA to the
Agency; Section 3, the estimated value of the interest to be conveyed, determined at the highest and best uses
permitted under the Redevelopment Plan; Section 4, the estimated value of the interest to be conveyed,
determined at the use and with the conditions, covenents and development costs required by the DDA (the "reuse
value"); and Section 5, recommended Findings to be included in the resolution approving the sale.
SECTION 1: SUMMARY OF THE MAJOR BUSINESS POINTS OF THE DDA:
Reference is made to the DDA for full particulars of any provision described herein, and in the event
of any inconsistency between the provisions herein and the DDA, the DDA shall control.
A. The Subject Property:
1. The Agency owns fee title to certain real property (the "Property") in the City of Palm Desert (the "City").
The Property is legally described in Exhibit A of the DDA and is comprised of approximately
16,900 square feet. (0.39 acres), on which Developer intends to construct a fine restaurant..
2. The Property constitutes a portion of a twelve acre Master Site, owned in fee title by the Agency and
legally described in Exhibit F of the DDA. The Master Site is to be developed in accordance with the
Master Site Plan (described in Exhibit G of the DDA), and is adjacent to and east of the Desert Crossing
Shopping Center in Palm Desert.
B. Purchase and sale of the Property:
1. Subject to the terms and conditions of the DDA, the Agency proposes to sell to Developer fee simple
title to the Property for a purchase price of $750,000.
2. The purchase price shall be payable as follows: Within 2 business days after the DDA has been fully
executed, Developer shall deposit $20,000 into an interest bearing escrow account, as earnest money
(the "Deposit"), to be credited to the purchase price. Prior to the close of escrow, Developer shall deposit
the balance of the purchase price with the Escrow Holder. Provided, however, if escrow does not close
by November 30, 2002, due to Developer's default, then the Agency shall receive, as liquidated
damages, the Deposit and all accrued interest, subject to the condition described in Paragraph C.4.
of this report.
3. If Developer fails to purchase the Property when Developer is obligated to do so under the terms of the
DDA, and all conditions precedent to Developer's obligation to purchase the Property have been
satisfied or waived, then the Agency may cancel the Escrow and the Agency shall thereupon be released
from its obligations pursuant to the DDA.
Refer to Article 2 of the DDA for further details about the purchase and sale of the Property.
" 3343UCR3'/ 14
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JtEPORT PURSUANT TO SECTION 33433 OF THE CALIFORNIA HEALTH AND SAFETY LADE
- page 3-
SECTION 1: SUMMARY OF THE MAJOR BUSINESS POINTS OF THE DDA (CONTtNUED1:
C. Opening and closing of Escrow:
1. Within five business days of the Agency's approval of the DDA, the Agency and Developer shall cause
an escrow to be opened with Escrow Holder for the sale of the Property from the Agency to Developer.
2. Escrow shall close after all the conditions specified in Section 2.3 of the DDA have been met, but in no
event later than November 30, 2002.
3. If Escrow does not close on or before November 30, 2002 due to the non -satisfaction by the Agency of
the conditions in Section 2.3.3 of the DDA relating to the permits and entitlements necessary for the
Public Improvements and in Section 2.3.4 of the DDA relating to the turning over by the Agency of the
budding pad, then Developer may terminate the DDA and cancel the escrow, and the Deposit (less half
of the escrow cancellation costs) will be refunded to Developer.
4. If Escrow does not close on or before November 30, 2002 due to the non -satisfaction by Developer
of any condition precedent of Section 2.3 of the DDA, but Developer has made a good faith effort to
satisfy such condition, then the Deposit (less hall of the escrow cancellation costs) will be refunded
to Developer.
Refer to Article 2 of the DDA for further details about the opening and closing of escrow..
D. Development of the Property:
1. Developer shall develop, or cause to be developed, the improvements on the Property in accordance
with the Scope of Development and the Schedule of Performance (Exhibits B and C of the DDA,
respectively). The cost for developing and constructing the improvements shall be borne solely
by Developer.
2. Aaencv's obligations:
a. The Agency shall deliver the Property to Developer at close of escrow with a finished
(over -excavated, backfilled, rough graded, compacted and certified) building pad, and with
available temporary power, fire protection and water service.
b. The Agency shall construct, or cause to be constructed and completed prior to a date which is nine
months after close of escrow, the parking lot and all utilities described in Exhibit C of the DDA as
"Public Improvements".
Refer to Article 3 and Exhibits B and C of the DDA for further details about Agency's obligations..
"3343UCR3'/15 26•Jun•02 05:13PMA_
Fr 01.
R PORT PURSUANT T) SECTION 33433 OF THE CALIFORNIA HEALTH AND SAFETY CODE
- page 4 -
SECTION 1: SUMMARY OF THE MAJOR BUSINESS POINTS OF THE DDA (CONTINUED):,
E. Limitations on Transfers and Security Interests:
1. Prior to issuance of a Certificate of Completion for the improvements, Developer shall not sell, assign,
transfer, mortgage, hypothecate or convey (collectively a "Transfer") the Property or any part thereof, or
any of Developer's rights or obligations pursuant to the DDA, without the Agency's prior written consent,
subject to certain exceptions described in Section 4.1.1 of the DDA.
Developer acknowledges that the identity of Developer is of particular concern to the Agency, and it is
because of Developer's identity that the Agency has entered into the DDA with Developer.
Refer to Article 4 of the DDA for further details about the limitation on transfers and security interests.
2. After issuance of a Certificate of Completion for the improvements and the opening of the improvements
for business, Developer shall have the right to Transfer the Property to any party subject to the conditions
in Section 4.1.2 of the DDA.
F. Use of the Property:
1. For as period of twenty years after the close of escrow, (the "Term of Use"), Developer and its lessees,
successors and assigns shall use the Property and the improvements only for the operation of a fine
dining restaurant and ancillary uses, and any other uses expressly permitted by the Agency.
Refer to Article 5.1 of the ODA for further details about the definition of "fine dining".
2. During the Term of Use, Developer shall maintain the Property and the improvements thereon in good
condition and repair and in a manner substantially comparable to the highest level of maintenance
provided by owners of developments in the Coachella Valley substantially similar to and of similar age as
the improvements.
3. The common area maintenance costs as described in Exhibit H of the DDA and including landscape
maintenance of the Parking Lot Site described in the Easement Agreement (Exhibit E of the DDA)
shall be included within the common area expenses shared by all owners and occupants of the Property
included within the Master Site. Developer shall be responsible for the monthly payments to the Agency
of its pro rata share of the common area expenses required to maintain the Parking Lot Site. Developer's
pro rata share of such common area expenses shall be based on the ratio of the number of parking
spaces required for the improvements, which is acknowledged by the parties to the DDA to be 72, to the
total number of parking spaces available within the Master Site.
Refer to Article 5.1.2 of the DDA for further details about Developer's payment of common area costs..
" 3343UCR3'/16
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REPORT PURSUANT TO SECTIONJ3433 OF THE CALIFORNIA HEALTH AND SAFETY CODE
- page 5 -
SECTION 1: SUMMARY OF THE MAJOR BUSINESS POINTS OF THE DDA (CONTINUED):
F. Use of the Pro er r Icontinuedj
4. Developer covenants and agrees to execute Developer CC&R's as described in Section 5.4 of the DDA,
and that the CC&R's shall burden the Property and shall run with the land for the benefit of the Agency
and/or the City and their respective successors and assigns; provided that the covenants and
agreements set forth in Section 5.1 of the DDA shall expire twenty years after the Close of Escrow.
Refer to Article 5.4 of the DDA for further details about Developer's CC&R's.
5. For as long as the DDA is in effect, Developer is operating a fine dining restaurant on the Property
featuring French cuisine and developer is not in material default of the DDA beyond any applicable
notice, cure or appeal periods, the Agency shall not permit any other property within the Master Site to
be used for the operation of a fine dining restaurant, more than 10% of the menu items of which
constitute French cuisine.
Refer to Article 5 of the DDA for further details about Developer's exclusive rights.
G. Events of Default. Remedies and Termination:
1. Subject to the provisions of Articles 2 and 6 of the DDA regarding Developer's appeal rights, the
occurances which constitute a Default are described in Article 6.1. of the DDA.
2. In the event of a Default by any Party to the DDA prior to the Close of Escrow, the non -defaulting Party
may pursue any and all of the remedies provided in Article 2 of the DDA.
3. In the event of a Default by any Party to the DDA after the Close of Escrow, the non -defaulting Party
shall be entitled to the remedies described in Article 6.2.2 of the DDA.
-3343UCR3'/17 26-Jun-02 05:13 PM
REPORT PURSUANT TO SFCTION 334 OF THE CALIFORNIA H TH AND SAFETY CODE
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SECTION 2: COST OF THE AGREEMENT ITHE "DDA'1 TO THE AGENCY:
The cost of the DDA to the Agency is comprised of the following three components: (1). the land acquisition cost;
(2). the cost of any improvements to be provided by the Agency; and (3). the projected interest on the source of
funds used to finance the land acquisition cost and the improvement cost.
A. The Agency's land acquisition cost:
NOTE: The Agency's purchase was funded by a loan from the City.
1. The Agency purchased the Master Site on 11/1/1998 at a purchase price of $3.347.917.
Therefore. the acquisition cost for the Master Site can be expressed as follows:
ACRES SQ. FT.
a. Amount of land 12.0 522,720
b. Cost per acre; per sq. ft. $278,993 $6.40
c. Total cost $3,347,917 $3,347,917
2. Calculation of the pro rata land acquisition cost for the Property:
NOTE: The Property area includes the gross restaurant area plus the amount of land
for which Developer has a non-exclusive easement for 72 parking spaces.
PERCENT OF
ACRES SQ. FT. MASTER SITE
a. Gross restaurant area 0.3880 16,900 n/a
b. Plus parking rights area 0.4959 21,600 n/a
c. Total area 0.8838 38,500 7.37%
d. Times cost per acre; per sq. ft. $278,993 $6.40 n/a
e. Total cost (pro rata) $246,585 $246,585 7.37%
B. Cost of the improvements to be provided by the agency:
The total, estimated Project cost for the Master Site (less the land cost and less the cost of the Visitor's Center)
is $3,705,131.
The portion allocated to Developer is $841,737. The cost per acre is $952,343 ($841,737 / 0.8838)
"3343UCR3'/18
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SECTION 2: COST OF THE AGREEMENT (THE "DDA"1 TO THE AGENCY (CONTINUEDI:
C. Calculation of the Aaencv's oroiected finance cost for the land purchase:
The land acquisition cost was funded by an interest -only loan from the City, whereby the interest payments were
at the appropriate LAIF rate. The followina table describes the Aaencv's annual interest oavments to the City:
1998 1999 2000 2001 2002' TOTALS
1. Loan balance $246,585 $246,585 $246,585 $246,585 $246,585 i n/a
2. Times average
interest rate 5.433% 5.259% 6.252% 4.881% 2.909% n/a
3. Annual interest 503415.2041
payment (2 months in
1998 and 11 in 2002) $2,233 $12,967 $15,417 $12,035 $6,575 i $49,227
When escrow closes on November 30, 2002, Agency will receive $750,000 from Developer, the loan balance
of $246,585 will be repaid and the remaining $503,415 will be used to pay for a portion of the improvement costs.
D. Calculation of the Aaencv's oroiected finance cost for the imorovements:
The cost of the improvements to be provided by the Agency ($841,737) will be funded from the remaining $503,415
of Developer's, $750,000 land payment leaving a $338,322 balance of improvement costs which wiil be
funded by cash proceeds from tax increment.
1. The Agency will lose one year of investment income that could have been earned on the $338,322 because the
following year the tax increment would be used to fund another project.
a. At a projected LAIF rate of 3% per year, the Agency will lose $10,150.
E. Aaencv's total finance cost in 2002 dollars:
1. For the land acquisition, loan payments to the City
2. Lost revenue from $338,322 cash payment for improvements
3. Total finance cost
F. Total cost of the DDA to the Aaencv:
1. Amount of land sold to Developer
2. Plus parking rights land
3. Totals
4. Land cost (pro rata)
5. Plus improvement cost (pro rata)
6. Plus finance cost (pro rata)
7. Total cost of the DDA to the Agency
$49,227
$10,150
$59,377
ACRES SQ. FT.
0.3880 16,900
0.4959 21,600
0.8838 38,500
DOLLAR
AMOUNT
$246,585
$841,737
$59,377
$1,147,698
" 3343UCR3'/19 26-Jun-02 05:24 PM •IMO
REPORT PURSUANT TO SECTION 33433 OF THE CALIFORNIA HEALTH AND SAFETY CODE
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SECTION 3: The estimated value of the interest to be conveyed. determined at the highest and best uses
permitted under the Redevelopment Plan (the "Fair Market Value"):
After reviewing available, comparable sales data, and considering its zoning and location, we have concluded that
the Fair Market Value of the Property is $20.50 per square foot, or $892,980 per acre.
SECTION 4: The estimated value of the interest to be conveyed. determined at the use and with the
conditions. covenants and development costs reauired by the Amended DDA (the "Fair Reuse Value"):
In accordance with the terms and conditions of the DDA, Developer will pay $750,000 for the Property and
is required to develop the Property solely as a fine dining restaurant, serving lunch and dinner.
The restaurant will occupy 16,900 gross square feet, and the Developer will have a non-exclusive easement
for 72 parking spaces within the public parking facility to be constructed by the Agency. At 300 square feet per
parking space, the 72 parking spaces will occupy an additional 21,600 square feet. During a 24 hour period, the
parking spaces are expected to be used by the restaurant from 10:00 A.M. until 2:00 A.M. the following morning, a
total of 16 hours. Therefore, the total area allocated to the Developer will be the restaurants 16,900 square feet plus
21,600 square feet multiplied by the ratio of 16 divided by 24, or 14,400 square feet; a total of 31,300 square feet.
The Developer's $750,000 price, expressed on a per square foot basis will be $23.96 per square foot
($750,000 / 31,300), which is the Fair Reuse Value.
,ECTION 5: Findings to be included in the resolution approving the sale:
*. the resolution shall contain the following findings: (1). The sale or lease of the property will assist in the elimination
of blight; (2). The sale or lease of the property is consistent with the implementation plan adopted pursuant to
Section 33490 of the California Health and Safety Code; and one of the following two additional findings: (3). The
consideration is not Tess than the fair market value at its highest and best use in accordance with the redevelopment
plan or (4). The consideration is not less than the fair reuse value at the use and with the covenants and conditions
and development costs authorized by the sale.
The followina findings can be included in the resolution approving the sale:
FINDING #1: The Property is currently completely unimproved, and the development of the Project
will assist in the elimination of blight in the area.
FINDING #2: Sale of the Property is consistent with the implementation plan adopted
pursuant to Section 33490 of the California Heatth and Safety Code.
FINDING #3: The consideration is not less that the Fair Market Value.
" 3343UCR3'/20
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