HomeMy WebLinkAboutRDA RES 522ARESOLUTION NO. 522A
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
APPROVING THE SALE BY THE PALM DESERT REDEVELOPMENT
AGENCY OF CERTAIN REAL PROPERTY IN THE CITY OF PALM DESERT
CONSISTING OF APPROXIMATELY 0.14 ACRES ON A PARCEL at 74-039
SAN MARINO CIRCLE NORTH OF ALESSANDRO DRIVE AND EAST OF
PORTOLA AVENUE PURSUANT TO A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE PALM DESERT REDEVELOPMENT
AGENCY AND GREGORY � GREGORY, LLC
The Palm Desert Redevelopment Agency hereby finds, determines, resolves and orders
as follows:
Section 1. On April 13, 2006, 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 0.14 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 Gregory & Gregory, LLC, a California limited liability corporation (the "Developer"} and
the Agency, at which time all persons desiring to comment on or ask questions concerning the
Agreement and the sale of the Property to the Developer were given the opportunity to do so.
Commencing on or before March 9, 2006, 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 a.m. and 5 p.m., Monday
through Friday. Notice of the public hearing was published in the Desert Sun on Thursday,
March 30, 2006 and Thursday, April 6, 2006.
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, a public parking area consisting of 11 parking stalls and landscaping with walls.
Section 3. The Agency Board 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 April 13, 2006.
Section 4. The Property contains approximately 0.14 acres, and pursuant to the
Agreement will be sold to the Developer for a purchase price of $47,000. 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 the reuse value of this property with the
covenants, codes and development cost authorized by the sale and found the fair reuse value to
be $47,000. The Summary Report prepared pursuant to California Health and Safety Code
Section 33433 is attached hereto as Exhibit A.
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RESOLUTION NO. 522A
Section 5. Project Area No. 1 is an area which has been previously 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
addition, Project Area No. 1 contains vacant and underutilized properties, and properties that
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 Agency Board hereby finds that the sale of the Property pursuant to the
Agreement will assist in the elimination of blight; providing for Developer's construction of
certain improvements and use described in the Agreement on previously vacant underutilized
land 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 Agency Board 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 Agency Board hereby finds that the consideration to be paid by
Developer pursuant to the Agreement is not less than the fair reuse 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. The Agency Board 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 such deeds, and execute, acknowledge and deliver such
instruments and documents as the Agency deems necessary in connection the�ewith. The
Agency Board 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 authorized officer
executing the Agreement may approve in his discretion as being in the best interest of the
Agency. Such app�oval to be conclusively evidenced by the execution and delivery thereof.
G:1RDA1Maria Hunt1WPDATAIAYLAIAMSan Marino Cirdelydareso.doc 2
RESOLUTION NO. 522A
PASSED, APPROVED AND ADOPTED this 13th day of April 2006 by the following vote
to wit:
AYES: BENSON, CRITES, SPIEGEL, FERGUSON
NOES: NONE
ABSFAIN: rrorrE
ABSENT: KELLY
ATTEST:
Rachelle D. Klassen, Secr tary
Palm Desert Redevelopment Agency
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G:\RDA1Maria Hunt\WPDATA�AYLAIAMSan Marino CirdeUdareso.doc `]
J
RESOLUTION NO. 522A
EXHIBIT A
G1RDA'�.Maria Hunt�WPDATA�.AYLAlAN1San Manno C+rcleVdareso.doc
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REASCO
Resolution No. 06-37
Resolution No. 522A
REAL ESTATE ANALY5IS SERVICES CO.
POST OFFICE BOX 2809, PALM DESERT, CALIFORNIA 92261
TEL: (760) 340-1429; FAX: (760) 340-2041
EMAIL: LRWREASCO@�40L.COM
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February 16, 2006
Ms Lauri Aylaian
Development Manager
PALM DESERT REDEVELOPMENT AGENCY
73-510 Fred Waring Drive
Palm Desert, Califomia 92260
Copies to: Mr. Justin McCarthy
Mr. David Yrigoyen
REFERENCE: Proposed Sale of Aqencv Proaertv to Gre�ory � Gres�ory
SUBJECT: Report Pursuant To Section 33433 Of The Califomia
Health And Safetv Code
NOTE 1: This report is based on the terms and conditions of the Disposition and
Development Agreement ("Agreement") Dated April 13th , 2006 between
the Palm Desert Redevelopment Agency ("Agency") and Gregory 8� Gregory
("Developer").
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Dear Ms Aylaian,
Section 33433 of the California Health and Safety Code stipulates that before any property
of a redevelopment agency, acquired di�ectly or indirectly with tax increment funds, is sold or
leased (or otherwise conveyed) for development purposes pursuant to the Redevelopment
Plan, the conveyance shall first be approved by the legislative body by resolution after public
hearing.
The property the Agency proposes to convey to Gregory 8� Gregory falls into the category
covered by Section 33433.
MY 33433 REPORTS/"33433 FOR G& G(1)" 17-Feb-U6 01:59 PM
REAL, ESTATE AI�TALYSIS SERVICES COMPANY
Resolution No. 06-37A
- PAGE 2- Resolution No. 522A
February 16, 2006
LETTER TO: Ms Lauri Avlaian
SUBJECT: Report Pursuant To Section 33433 Of The California
Health And Safetv Code
We have prepared a comprehensive report, beginning on page three of this letter, which is
required in order to comply with Section 33433. Pursuant to the report, we have concluded
that the following findings can be included in the resolution approving the conveyance:
FINDING #1: The Sale of the Property wil! assist in the elimination of b{ight in the
Project Area.
FINDING #2: The 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 than the Fair Reuse Value determined at
the use and with the conditions, covenants and development costs authorized by
the Sale.
The rationale for these findings can be found in the report.
Sincerely,
Leonard R. Wolk .
Leonard R. Wofk, President
Real Estate Analysis Services Company (REASGO)
MY 33433 REPORTS!"33433 FOR G& G(1)" 17-feb-06 01:59 PM
REAL ESTATE ANALYSI5 SERVICES COMPANY
Resolution No. 06-37A
`""� - PAGE 3- Resolution No. 522A
Followinq are the detailed Sections of the report;
SECTION 1- A summary of the major business points of the Agreement between
the Agency and the Developer conceming the sale of the Subject Property owned by the
Agency to the Developer:
Reference is made to the Agreement for full particulars of any provision described
herein. In the event of any inconsistency between the provisions herein and the
Agreement, the Agreement shall control. .
A. The Subiect Proaertv:
1. The Agency owns fee title to certain unimproved real property (the "Property")
The Property is located at 74-039 San Marino Circle in the City of Palm Desert
("City"), and is legally described in Exhibit A of the Agreement. The Property size is
approximately 0.14 acres, or 6,000 square feet.
�.,.�, B. Purchase and Sale of the Propertv:
1. Subject to the terms and conditions of the Agreement, the Agency agrees to sell to
the Developer, and the Developer agrees to purchase from the Agency, fee simple
title to the Property at an agreed to price of $47,000, or $7.8.3 per square foot.
-� Refer to Article 3 of the Agreement for further details about the Purchase and
Sale of the Property.
C. Construction and Financin� of the Proiect:
1. Developer shall develop, or cause to be developed, the improvements (11 surface
paricing spaces) on the Property in accordance with the Schedule of Performance
and the Scope of Development (Exhibits F and B of the Agreement, respectively).
The cost for developing and constructing the improvements shall be borne solely by
Developer.
� Further details about Construction and Financing of the Project may be found
in Article 4 of the Ageement.
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MY 33433 REPORTS!"33433 FOR G& G(1)" 17-Feb-O6 �1:59 PM
REAI. ESTATE ANALYSIS 5ERVICES COMPANY
Resolution No. 06-37A
- PAGE 4- Resolution No. 522A
" SECTION 1- A summary of the major business points of the proposed
Agreement (continued):
D. Use of the Property:
1. Commencing upon completion of the Project, and in perpituity thereafter, the
Property and the Project shall be used only for parking which shall be made availablE
to the general public without fee or charge of any kind.
-� Further details about Use of the Property may be found in Article 5 of the
Ageement.
E. Restrictions on Transfers:
1. Prior to the issuance of a Certificate of Completion for the Project, no transfer may
occur with respect to any portion of the Project or the Property without the
Agency's prior written consent.
-� Further details about Restrictions on Transfers may be found in Article 5 of the
Ageement.
F. Events of Default and Remedies:
1. Subject to the provisions of Articles 7 of the Agreement regarding Deve{oper's
appeal rights, the occurances which constitute a Default are described in Article 7.1.
of the Agreement.
-� Further details about Default and Remedies may be found in Article 7 of the
Agreement.
SECTION 2- Cost of the Agreement to the Agency:
The cost of the Agreement to the Agency is comprised of the foilowing three components:
. (1). the cost of any improvements to be provided by the Agency; (2). the projected interest on
the source of funds used to finance the land acquisition cost and the improvement cost; and
(3). the difference between the Sales price to the Developer and Agency's acquisition cost.
MY 33433 REPORTS/"33433 FOR G& G(9 )" 17-Feb-06 01:59 PM
REAL ESTATE ANALYSIS SERVICES COMPANY
Resolution No. 06-37A
- PAGE 5- Resolution No. 522A
SECTION 2- Cost of the Agreement to the Agency (continued):
A. The Aqencv's Propertv acauisition cost:
NOTE: The Agency's purchase was funded with tax increment funds.
1. The Agency purchased the Property on 2/28/2003 at a purchase price of $123,000.
Therefore, the acquisition cost for the Proaertv can be expressed as follows:
ACRES SQ. FT.
a. Amount of land 0.14 6,000
b. Cost per acre; per sq. ft. $892,980 $20.50
c. Total cost $123,000 $123,000
B. Aqencv's net cost of the Aareement:
,,,�,,, COST ELEMENT COST
1. Agency will not be providing any improvements $0
2. The Agency will lose one year of investment income that
could have been eamed on the $123,000 of tax increment
funds to pay for the Property, because in the following year, the
funds would be used to fund another project.
At the average annual LAIF rate for 2003 (1.742%), the Agency
will lose ($2,143)
3. Difference between the Sales price and the acauisition cost:
a. Sales price $47,000
b. Acquisition cost ($123,000)
c. Difference ($76,000) ($76,000)
4. Agency's net cost of the Agreement ($78,143)
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MY 33433 REPORTS/"33433 FOR G& G(1)" 17-Feb-06 01:59 PM
REAL ESTATE ANALYSIS SERVICES COMPANY
Resolution No. 06-37A
- PAGE 6- Resolution No. 522A
SECTION 3- The estimated value of the interest to be conveyed (the unimproved
Property) determined at the highest and best uses permitted under the
Redevelopment Plan (the "Fair Market Value").
A. Hiqhest and best use for the interest to be conveved:
1. Pursuant to its current zoning and a recent Appraisal, the highest and best use for
the interest to be conveyed is for development of a single-family residence.
B. Estimated value at the hi�hest and best use of the interest to be conveved:
1. Pursuant the most recent comparable sales, the current estimated value at the
highest and best use of the interest to be conveyed is 510.00 per sq. ft.
Section 4- The estimated value of the interest to be conveyed determined at the use
and with the conditions, covenents and devetopment costs required by the
Agreement (the "Reuse "Value):
1. Pursuant to the recent Appraisal, the purchase price ($47,000) represents the reuse value
of the Site at the use, and with the conditions, covenants and development costs
authorized by the Sale.
Section 5- Findings to be included in the resofution approving the transaction:
FINDING #1: The Sale of the Property will assist in the elimination of blight in
the Project Area.
FINDING #2: The Sale of the Property is consistent with the implementation
plan adopted pursuant to Section 33490 of the California Heafth
and Safety Code.
FINDING #3: The consideration is not less that the Fair Reuse Value at the use
and with the covenants and development costs authorized by the
Sale.
MY 33433 REPORTSP'33433 FOR G& G(1)" 17-Feb-06 01:59 PM