HomeMy WebLinkAboutItem #4CITY OF
LADE LSIHOIZE
DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT YATES
CITY MANAGER
DATE: SEPTEMBER 10, 2013
SUBJECT: ACQUISITION OF TAX - DEFAULTED PROPERTIES BY THE CITY
OF LAKE ELSINORE
Recommendation
A) Adopt Resolution No. 2013 -r)(I A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAKE ELSINORE, CALIFORNIA, OBJECTING TO THE SALE OF TAX -
DEFAULTED PROPERTY KNOWN AS ASSESSOR'S PARCEL NUMBER 371 -020-
002; APPLYING TO THE COUNTY BOARD OF SUPERVISORS, COUNTY TAX
COLLECTOR AND TREASURER, AND STATE CONTROLLER TO PURCHASE THE
PROPERTY; AND AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE THE PURCHASE TAX- DEFAULTED PROPERTY
B) Allocate funds from the Unallocated Revenue Reserve to purchase Assessor's
Parcel Number 371 - 020 -002 in accordance with the Agreement.
Background
Five years or more after a property becomes subject to sale for nonpayment of property
taxes, the County Tax Collector is authorized to sell such property. Each year the
Riverside County Treasurer and Tax Collector's Office offers tax defaulted properties for
sale. Pursuant to Revenue and Taxation Code Section 3695.4, cities, special districts
and other public agencies in Riverside County may remove properties from the public
sales list in order to purchase the properties for a public purpose.
Assessor's Parcel Number 371- 020 -002 is among the County's list of tax defaulted
properties. This property is approximately 12.59 acres and located in the north
quadrant for the Back Basin area under the East Lake Specific Plan. Staff believes the
property presents unique opportunities for the City to advance important policies in the
Lake Elsinore General Plan and the East Lake Specific Plan and to further the public
purposes embodied in the Disposition and Development Agreement by and among the
AGENDA ITEM NO. 4
Page 1 of 1 l
City Acquisition of Tax Defaulted Property
September 10, 2013
Page 2 of 3
former Redevelopment Agency, Civic Partner Elsinore LLC and McMillin Summerly
relating to the development of the Back Basin area.
Discussion
In order to acquire any tax defaulted properties, the City must adopt a resolution
objecting to the public auction of the specific tax defaulted properties and execute an
agreement to purchase the properties under the County's Chapter 8 Agreement
process. A form of the Agreement is attached.
The adoption of the resolution and execution of the Agreement does not guarantee that
the City will be able to acquire the property as the County will give current owners
ample opportunity to resolve unpaid property tax payments. However, it is the first stage
of the acquisition process (Chapter 8 sale).
The City of Lake Elsinore has traditionally viewed development and environmental
matters in the Back Basin very closely in order to meet the requirements of the East
Lake Specific Plan which seeks to balance responsible development alongside
sustainable environmental preservation. As part of that preservation effort, 770 acres of
conservation area have been targeted under the MSHCP and is subject to significant
permitting requirements imposed by State and federal regulatory agencies.
While the subject property lies outside of the targeted 770 acre MSHCP conservation
area, acquisition of the property presents a strategic resource for the City to ultimately
acquire additional conservation property while also promoting development consistent
with the General Plan and East Lake Specific Plan. Accordingly, acquisition of the
subject property will serve a public purpose by allowing the City to further implement
balanced land use and economic development in the Back Basin area of the City
pursuant to existing contractual obligations of the City and Successor Agency consistent
with the General Plan and the MSHCP Back Basin conservation goals.
Environmental Determination
There are no direct environmental impacts associated with the approval of the
Resolution.
Fiscal Impact
The resolution provides authority to the City Manager of up to $30,000 for the purchase
of the subject property to be funded from the Unallocated Reserve. The actual
anticipated purchase price has been requested from the County. Based on a previously
withdrawn bid by another public agency, the price was $25,413; however, additional
taxes and cost may have accrued in the interim.
Page 2 of I I
City Acquisition of Tax Defaulted Property
September 10, 2013
Page 3 of 3
Prepared by: Barbara Leibold, City Attorney
Approved by: Grant Yates, City Manager
Attachments:
1. Vicinity Map
2. Resolution
3. Application
4. Form Agreement to Purchase Tax - Defaulted Property
Page 3of11
Page 4 of 11
Volume IJl.• Agreement Sale
Application to Purchase Tax - Defaulted Property from County
This application must be completed by eligible purchasing entity to commence purchase of tax- defaulted property by
Agreement sale from the county under applicable provisions of the California Revenue and Taxation Code. Complete the
following sections and supply supporting documentation Completion of this application does not guarantee purchase approve
A. Purchaser Information
1. Name of Organization: City of Lake Elsinore
2. Contact Person: Grant Yates Phone : (951)674-3124 Fxt 204
3. Corporate Structure — check the appropriate box below and provide the corresponding information: .
❑ Nonprofit Organization — provide Articles of Incorporation
X Public Agency — provide Mission Statement (if redevelopment agency or special district, provide jurisdiction map)
City of Lake Elsinore Mission Statement To provide an overall quality of life in the city of Lake Elsinore by enhancing our security,
recreation, and neighborhoods, delivering quality public services, preserving and enhancing the City's economic prosperity,
embracing the diversity of our citizens, and making Lake Elsinore a desirable place to raise a family.
II. Purchasing Information
Determine which category the parcel falls under and then check the appropriate box as it relates to the purchasing
entity's corporate structure and the intended use of the parcel: (Note: From the six choices, check only one)
Categggy A Parcel is currently scheduled for a Chapter 7 tax sate (Attach a separate letter objecting to the sale of the parcel)
• Purchase by tax agency /revenue district to preserve its lien
• Purchase by tax agency, county, revenue district, special district, or redevelopment agency for public purpose
• Purchase by nonprofit to use parcel(s) for low- income housing purpose or to preserve open space
Category B• Parcel is not currently scheduled for a Chapter 7 tax sate
❑ Purchase by taxing agency for public purpose
X Purchase by State, county, revenue district, special district, or redevelopment agency for public purpose
❑ Purchase by nonprofit to use parcel(s) for low- income housing purpose or to preserve open space
C. Pronertw Detail
Provide the following information. If there is more than one peol or you need more space for any of the criteria, consolidate the
information into a separate "Exhibit" document and attach it to this application:
1. County where the parcel is located:
2. Assessor's Parcel Number: 371 -020 -00<
3. State the purpose and intended use for the parcel:
D, Acknowled ement Detail
Provide the signature of the purchasing entity's authorized officer
Grant Yates f951)674.3124 Fxt 204
Mat Name --°"— °` Contact Number
_ CitvManager September4 2013
Title Date
ti John Chiang • Calltbrniu State Controller
nvr -au to�.v o -auj
Dl /08
Page 6 of 11
RESOLUTION NO. 2013 -059
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, OBJECTING TO THE SALE OF TAX -
DEFAULTED PROPERTY KNOWN AS ASSESSOR'S PARCEL NUMBER
371 - 020 -002; APPLYING TO THE COUNTY BOARD OF SUPERVISORS,
COUNTY TAX COLLECTOR AND TREASURER, AND STATE
CONTROLLER TO PURCHASE THE PROPERTY; AND AUTHORIZING
AND DIRECTING THE CITY MANAGER TO EXECUTE THE PURCHASE
TAX - DEFAULTED PROPERTY
WHEREAS, the Board of Supervisors of the County of Riverside and its Tax
Collector intend on selling certain property located within the City of Lake Elsinore that
has become tax - defaulted and is identified with the following APN in Lake Elsinore,
California (the "Property "):
APN 371 - 020 -002, and
WHEREAS, the City of Lake Elsinore objects to the sale of the Property and is
applying in writing by way of this resolution to the Riverside County Board of
Supervisors and the Riverside County Tax Collector to purchase the property in
accordance with an agreement, the form which is on file in the Office of the City Clerk
and identified as "Agreement to Purchase Tax Defaulted Property," and
WHEREAS, the City of Lake Elsinore will pay for the cost of giving public notice,
and
WHEREAS, the City of Lake Elsinore will utilize the Property for public purposes
consistent with the mission of the City of Lake Elsinore, which include the following
public purpose:
To implement balanced land use and economic development in the Back Basin
area of the City pursuant to existing contractual obligations of the City and
Successor Agency consistent with the General Plan and the MSHCP Back Basin
conservation goals.
NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LAKE
ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to send a copy of this
resolution to the County Board of Supervisors, to the County Treasurer and County Tax
Collector, and to the State Controller registering the objection of the City of Lake
Elsinore to the sale of the aforementioned Property, and to apply to the County Board
of Supervisors, the County Tax Collector and Treasurer, and the State Controller to
purchase the Property at the price established by the County Treasurer's Office and
approved by the Board of Supervisors as will be set forth in the "Agreement to Purchase
Tax Defaulted Property," a copy of which will be on file in the Office of the City Clerk.
Page 7 of 11
CITY COUNCIL RESOLUTION NO. 2013 -059
PAGE 2 OF 3
SECTION 2. The City Manager, or his designee, is hereby authorized and
directed to take all necessary and desirable steps to execute the Agreement to
Purchase Tax Defaulted Property for and on behalf of the City of Lake Elsinore.
SECTION 3. The City Manager is hereby authorized to provide a check in an
amount not to exceed $30,000.00, or some lesser amount reflecting the total price of
the Property purchased under this process to the County of Riverside for the purchase
price and the funds for said amount shall be appropriated therefore.
SECTION 4. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED on this 10th day of September 2013.
ATTEST:
Virginia J. Bloom, CMC
City Clerk
APPROVED AS TO FORM:
Barbara Leibold
City Attorney
City of Lake Elsinore
Robert Magee, Mayor
City of Lake Elsinore City Council
Page 8 of 11
Volume 117: A.ereemean Sale
AGREEMENT TO PURCHASE TAX - DEFAULTED PROPERTY
This Agreement is made this day of _ , by and between the
Board of Supervisors of
the Revenue and Taxation Code.
County, State of California, and
( "PURCHASER "), pursuant to the Provisions of Division 1, Part 6, Chapter 8, of
The real property situated within said county, hereinafter set forth and described in this agreement, is tax - defaulted and is
subject to the power of sale by the tax collector of said county for the nonpayment of taxes, pursuant to provisions of law.
It is mutually agreed as follows:
1. That, as provided by Revenue and Taxation Code section 3800, the cost of giving notice of this agreement shall be
paid by the PURCHASER, and
2. That the PURCHASER agrees to pay the sum of $ for the real property described in Exhibit "A"
within (__) days after the date this agreement becomes effective. Upon payment of said sum to the tax
collector, the tax collector shall execute and deliver a deed conveying title to said property to PURCHASER.
3. That the PURCHASER agrees to use the parcel(s) for public purpose under the following intent
4. That, if said purchaser is a taxing agency as defined in Revenue and Taxation Code section 121 or any other agency
that receives its revenue share under the provisions of Division 1, Part 8, Chapter 3 of the Revenue and Taxation Code,
it will not share in the distribution of the payment required by the Agreement as defined by section 3791 and section
3720 of the Revenue and Taxation Code.
If all or any portion of any individual parcel described in this agreement is redeemed prior to the effective date of this
agreement, this agreement shall be null and void as to that individual parcel.
In addition, the county may and should include any other terms and conditions it deems necessary for each individual
agreement
AGF -3 (SCO 8 -13)
(Front)
16 John Chiang. CaRfomia State Controller- 1112
Page 9 of 11
Section 6..- Public Agency Application Requirements
The undersigned hereby agree to the terms and conditions of this agreement and are duly authorized to
sign for said agencies.
If more than one executed copy is required, add the following statement above the signature block:
This document is being executed in counterpart each of which constitutes an original
ATTEST:
By
(Purchaser)
(seal)
ATTEST: BOARD OF SUPERVISORS
By
Clerk of die Board of Supervisors
0
Deputy
(seal)
Chair
If the property is located within the boundaries of a city, add this signature block:
COUNTY
Pursuant to the provisions of section 3775 of the Revenue and Taxation Code, the governing body of the
City of — hereby agrees to the sale price as provided in this agreement.
ATrES'r: CITY OF
By
Deputy
(seal)
Mayor
If the agreement is with the State or the county, use this signature block:
Pursuant to the provisions of section 3775 of the Revenue and Taxation Code, the Controller agrees to
the selling price hereinbefore set forth and, pursuant to the provisions of section 3795, approves the
foregoing agreement this day of
For agreements with agencies except the State or the county, use this signature block:
Pursuant to the provisions of section .'1795 of the Revenue and Taxation Code, the Controller approves
the foregoing agreement this day of
JOHN CHIANG, CALIFORNIA STATE, CONTROLLER
By
AGF -3 (SCO 8 -13)
(Back)
1/12 John Chiang. Califonna State Controller 17
Page 10 of 11
Volume IIC: Agm ntent Sale
Exhibit "A"
First Year Default Purchase
pescn• tp ion_____.____
Delinquent_ Nmnber Price
NOTE: TO BE MADE PART OF EACH CHAPTER 8 AGREEMENT
AGF- 4 (SCO 8 -I4)
18 John Chiang • C¢!i(+rni¢ Stnle Llontrol(er 1/12
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