HomeMy WebLinkAbout2012-07-24 OB Agenda Item No. 4OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE
TO: MEMBERS OF THE OVERSIGHT BOARD
FROM: BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL
DATE: JULY 24, 2012
SUBJECT: OVERVIEW OF REAL PROPERTY OWNED BY THE SUCCESSOR
AGENCY
Backaround:
The Oversight Board to the Successor Agency of the Redevelopment Agency of the
City of Lake Elsinore has been established to direct the Successor Agency to take
certain actions to wind down the affairs of the former Redevelopment Agency. Prior to
its dissolution, the Redevelopment Agency was engaged in activities to implement the
Redevelopment Plans for its three project areas: (1) Rancho Laguna Project Area No. 1,
(2) the Rancho Laguna Project Area No. 2 and (3) Rancho Laguna Project Area No. 3.
In the course of those activities, the Agency acquired real property. As of the date of
dissolution, the former Agency owned 55 parcels, 48 of which are non - housing assets
and subject to statutory disposition requirements.
The purpose of this Report is to provide an overview of these properties to the
Oversight Board and to brief the Board on the property disposition procedures as
modified by AB 1484. Binders with real property data have been separately distributed
to the Oversight Board Members.
Discussion:
General Requirements: AB x1 26 ( "Dissolution Act ") requires the Successor
Agency to dispose of real properties of the former redevelopment expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and related funds that
are no longer needed for previously approved development projects identified on the
Successor Agency's ROPS or otherwise needed to wind down the affairs of the agency,
will be transferred to the county auditor - controller for distribution as property tax
proceeds.
AB 1484 suspends the real property disposition process pending a Department
of Finance "Finding of Completion" relating to the former Agency's financial obligations.
Within six months after receipt of a "Finding of Completion" the Successor Agency must
submit a long -range management plan for the real property of the dissolved RDA for
AGENDA ITEM 4 Page 1
Real Property Overview
July 24, 2012
approval by the Oversight Board and the DOF. The property management plan must
include an inventory with specified information about each property and address the use
or disposition of each property. Permitted uses under the property management plan
include:
1) Retention of the property for governmental use
2) Retention of the property for future development
3) Sale of the property
4) Use of the property to fulfill an enforceable obligation
Real Property owned by the Successor Housing Agency NOT Subject to
Disposal. Seven parcels of the 55 Agency owned properties were acquired with Low
and Moderate Income Housing Funds and were transferred to the City as Successor
Housing Agency. The Successor Housing Agency is not required to dispose of these
seven parcels.
Governmental Purpose: AB X1 26 provides an exception to the general
provisions requiring disposition of real property assets by permitting the Oversight
Board to direct the Successor Agency to transfer ownership to the City of certain
properties that were funded by tax increment revenues and used for a governmental
purpose, such as roads, school buildings, parks, and fire stations. While AB 1484
postpones the disposition process, it retains the "governmental purpose" exception.
Future Development: AB 1484 appears to provide greater flexibility to successor
agencies to hold real property for future development to advance the planning
objectives of the successor agency.
Sale: Properties that are not used for governmental purposes or necessary to
fulfill an enforceable obligation are generally subject to disposition.
Enforceable Obligations: Successor agencies are permitted to maintain
properties required to satisfy an enforceable obligation.
Postponed Disposition: The Successor Agency will prepare a long -range
property management plan consistent with the statutory requirements following the
issuance by DOF of a finding of completion. Based upon the AB 1484 timeline, staff
does not anticipate submittal of the plan to the Oversight Board and DOF until mid -2013
and does not anticipate property dispositions until after the plan is approved.
AGENDA ITEM 4 Page 2
Real Property Overview
July 24, 2012
Recommendation:
That the Oversight Board receive and file the real property inventory.
Prepared and approved by: Barbara Leibold,
City Attorney /Successor Agency Counsel
AGENDA ITEM 4 Page 3