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HomeMy WebLinkAboutItem #3OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE TO: CHAIRMAN WILLIAMS AND MEMBERS OF THE OVERSIGHT BOARD FROM: BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL DATE: OCTOBER 22, 2013 SUBJECT: LONG RANGE PROPERTY MANAGEMENT PLAN Recommendation It is recommended that the Oversight Board to the Successor Agency adopt Resolution OB 2013 -009, A Resolution of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Approving a Long Range Property Management Plan for Successor Agency Properties. Background On December 29, 2011, the California Supreme Court issued its decision in the California Redevelopment Association v. Matosantos case, finding ABx1 26 (the "Dissolution Act") largely constitutional. The Court's decision dissolved the Redevelopment Agency of the City of Lake Elsinore (the "Redevelopment Agency ") along with all other redevelopment agencies in the state effective February 1, 2012. The City of Lake Elsinore (the "City ") elected to be the "Successor Agency" to the former Redevelopment Agency in accordance with the Dissolution Act. On June 27, 2012, AB 1484 was signed by Governor Brown and took immediate effect, AB 1484 made technical and substantive amendments to the Dissolution Act and required successor agencies to conduct a due diligence review to determine the unobligated cash balances available for transfer to taxing entities in both the housing fund and all other non - housing funds of the former Redevelopment Agency. Both the housing fund and non - housing fund due diligence reviews have been completed and accepted by the State Department of Finance (DOF). As part of AB 1484, those agencies who have received approval of their due diligence reviews are granted a "Finding of Completion ". On April 26, 2013, the DOF issued a Finding of Completion to the Successor Agency. Pursuant to Health and Safety Code Section 34191.5(b), within six months after receiving a Finding of Completion from the DOF, the Successor Agency is required to submit for approval to the Oversight Board and the DOF a Long Range Property Management Plan (Management Plan) that addresses the disposition and use of the real properties owned by the Successor Agency. AGENDA ITEM 3 Page 1 Long Range Property Management Plan October 22, 2013 Page 2 The Management Plan includes an inventory of all non - housing real property assets of the former Redevelopment Agency now held by the Successor Agency. The Management Plan does not include housing real property that was transferred to the City as Housing Successor. The properties acquired by the former Redevelopment Agency for low and moderate income housing purposes are exempt from the Management Plan and are not required to be disposed of pursuant to the requirements of AB 1484. The Successor Agency held a Study Session on October 8, 2013 discussing the forty eight (48) separate legal parcels owned by the Successor Agency and the proposed characterization of each property or grouping of parcels in the Management Plan, Discussion Overview of Management Plan: As of the date of dissolution, the former Redevelopment Agency owned 55 parcels, 7 of which were acquired for affordable housing purposes and are not addressed in this report or included as part of the Management Plan. In accordance with Section 34191.5(c)(1) of the California Health & Safety Code, the Management Plan includes an inventory of the remaining 48 parcels owned by the Successor Agency. The inventory consists of the following information: • The date of the acquisition of the property and the value of the property at that time, and an estimate of the current value of the property. • The purpose for which the property was acquired. • Parcel data, including address, lot size, and current zoning in the former agency redevelopment plan or specific, community, or general plan. • An estimate of the current value of the parcel including, if available, any appraisal information. An estimate of any lease, rental, or any other revenues generated by the property, and a description of the contractual requirements for the disposition of those funds. • The history of environmental contamination, including designation as a brownfield site, any related environmental studies, and history of any remediation efforts. = A description of the property's potential for transit - oriented development and the advancement of the planning objectives of the successor agency. • A brief history of previous development proposals and activity, including the rental or lease of property. AGENDA ITEM 3 Page 2 Long Range Property Management Plan October 22, 2013 Page 3 The Management Plan also addresses the proposed use or disposition of all of the properties within one of four categories as follows: Governmental Purpose Use — properties used for a governmental purpose such as roads, school buildings, parks, police and fire stations, libraries, and local agency administrative buildings to be retained by the Successor Agency or conveyed to the City or appropriate public agency • Enforceable Obligation Use - properties to be held by the Successor Agency to fulfill an enforceable obligation • Properties to be Held for Future Development — properties to be transferred to the City for future development for a project identified in an approved redevelopment plan and for advancement of the planning objectives of the Successor Agency • Properties to be Sold — properties to be sold for development in a manner consistent with the Dissolution Act and the proceeds from the sale distributed as property tax to the taxing entities The Management Plan separately identifies and lists properties dedicated to governmental use and properties retained for purposes of fulfilling an enforceable obligation (HSC Section 34191.5(c)(2)). Property designated for governmental purpose can be transferred to the City for that purpose in accordance with any existing agreements. Properties transferred to a private or public agency may be subject to compensation requirements and distribution of income to affected taxing entities in proportion to their respective property tax shares. If a property is not being used for a governmental purpose (per HSC Section 34181(a)) and will not be used to pay enforceable obligations, but instead will be used or liquidated to complete a project in an approved redevelopment plan, then the property must be transferred to the City per HSC Section 34191.5(c)(2)(A). After the transfer is complete, the City may determine how to use the asset. Properties shall not be transferred to a city, county, or city and county, unless the Management Plan has been approved by the Oversight Board and the Department of Finance. Summary of Management Plan: The Management Plan indicates that eighteen (18) parcels should be transferred to the City for a governmental use and that three (3) parcels should be retained by the Successor Agency to satisfy enforceable obligations. The remaining twenty seven (27) parcels are recommended for sale either immediately or in the future, with the proceeds to be used to pay enforceable obligations or distributed to the taxing entities. Of the properties to be sold, the Management Plan states that twenty two (22) properties are to be held for future development pursuant to a Request for Proposal (RFP) process in order to advance the planning objectives of the City and the Redevelopment Plans. The remaining five (5) properties are to be sold upon approval by the Department of Finance of the Management Plan. AGENDA ITEM 3 Page Long Range Property Management Plan October 22, 2013 Page 4 Properties to be Retained for Governmental Use: The Successor Agency considers the properties listed below to be dedicated to governmental purposes. The Management Plan includes a detailed discussion about each property and why it should be retained as a governmental purpose property. The Management Plan recommends that title to these properties be transferred to the City so that they can be retained by the City for the appropriate governmental purpose. • Lake Elsinore Senior Activities Center • Lake Elsinore Cultural Center • Downtown Parking /Alley (6 parcels) • Conservation Easement (2 parcels) • Floodway (2 parcels) • Gazebo Property/Historic Preservation • Cultural Center Parking /Business Incubator Properties (5 parcels) Properties to be Retained for Purposes of Fulfilling an Enforceable Obligation: The Management Plan must separately identify and list properties retained for purposes of fulfilling an enforceable obligation (HSC Section 34191.5(c)(2)). Only the two properties comprised of three individual legal parcels owned by the Successor Agency as listed below are subject to enforceable obligations: • Exchange Parcel to be Conveyed pursuant to Summerly DDA • Lake Elsinore Diamond Stadium (2 parcels) The former Redevelopment Agency of the City of Lake Elsinore entered into an Amended and Restated Disposition and Development Agreement dated as of March 8, 2011 with McMillin Summerly LLC and Civic Partners- Elsinore LLC (Summerly DDA). The Summerly DDA has been listed as an enforceable obligation on each Recognized Obligation Payment Schedule (ROPS) submitted by the Successor Agency. The Summerly DDA requires the conveyance of the Exchange Parcel, subject to a number of conditions set forth in the DDA. The Lake Elsinore Diamond Stadium is currently subject to five (5) contracts which constitute enforceable obligations of the Successor Agency and were listed on previous ROPS (as applicable) as well as on lines 29 through 33 of the ROPS 13 -14B. Further, the Diamond Stadium property was donated to the Agency subject to a restrictive covenant requiring the property to be developed and operated as a professional minor league baseball stadium. As a result, the Diamond Stadium is required to be retained by the Successor Agency to fulfill its enforceable obligations under the Stadium Operations Contracts and the covenant that the property be operated as a baseball stadium. AGENDA ITEM 3 Page 4 Long Range Property Management Plan October 22, 2013 Page 5 Properties To Be Held for Future Development: If a property is not being used for a governmental purpose (per HSC Section 34181(a)) and will not be used to satisfy enforceable obligations, but instead will be used or liquidated to complete a project in an approved redevelopment plan, then the property must be transferred to the City per HSC Section 34191.5(c)(2)(A). After the transfer is complete, the City may determine how to use the asset. The Management Plan lists twenty two (22) properties as held for future development subject to an RFP process in order to advance the planning objectives of the City and the Redevelopment Plan. The Management Plan discusses the potential for each parcel. The proceeds from the sale of these properties will either be used to pay enforceable obligations or be distributed as property tax to the taxing entities. Taxing Entities: The Management Plan lists five (5) properties to be sold upon approval by the Department of Finance of the Management Plan. The proceeds from the sale of these properties will be distributed as property tax to the taxing entities. Further Actions: Following approval by the Successor Agency and the Oversight Board, the Management Plan will be submitted to the DOF. There is no time frame specified by AB 1484 for DOF's review and approval of the Management Plan. Fiscal Impact Approval of the Management Plan will have no immediate fiscal impact on the Successor Agency. Costs associated with conveyance of properties to the City will include document recordation and processing. The actual costs are unknown at this time. Costs associated with the proposed merger of properties and the conveyance of properties to private entities will include City processing and recording fees, appraisal fees, RFP preparation, document preparation, escrow, title, legal and recording fees. The Successor Agency's share of these costs will be paid for from the proceeds of the sales. The balance of the property sale proceeds will be allocated to pay enforceable obligations or paid to the County for distribution to affected taxing entities. Prepared by: Barbara Leiboid, City Attorney /Successor Agency Counsel Attachments: Resolution No. OB- 2013 -009 Successor Agency Property List and Maps Long Range Property Management Plan DOF Checklist Long Range Property Management Plan — distributed under separate cover to the Oversight Board and available for public review at the City Clerk's office AGENDA ITEM 3 Page RESOLUTION NO, OB- 2013 -009 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING A LONG RANGE PROPERTY MANAGEMENT PLAN FOR SUCCESSOR AGENCY PROPERTIES WHEREAS, Assembly Bill x1 26 was chaptered and became effective on June 27, 2011, adding parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which caused the dissolution of all redevelopment agencies and winding down of the affairs of former agencies; and WHEREAS, Assembly Bill x1 26 was amended by Assembly Bill 1484, as chaptered and effective on June 27, 2012 (together, the "Dissolution Act "); and WHEREAS, as of February 1, 20121 the Redevelopment Agency of the City of Lake Elsinore ( "Redevelopment Agency ") was dissolved pursuant to the Dissolution Act and the City of Lake Elsinore ( "City ") became the Successor Agency in accordance with the Dissolution Act; and WHEREAS, the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore ( "Oversight Board ") has been established to direct the Successor Agency to take certain actions to wind down the affairs of the former Redevelopment Agency in accordance with the Dissolution Act; and WHEREAS, on April 26, 2013, the Department of Finance ( "DOF ") issued a Finding of Completion to the Successor Agency; and WHEREAS, pursuant to Health & Safety Code Section 34191.5(b), within six months after receiving a Finding of Completion from the DOF, the Successor Agency is required to submit for approval to the Oversight Board and the DOF a Long Range Property Management Plan ( "Management Plan') that addresses the disposition and use of the real properties owned by the Successor Agency; and WHEREAS, pursuant to Health & Safety Code Section 34191.5, the Oversight Board must approve the Management Plan; and WHEREAS, the Successor Agency held a Study Session on October 8, 2013 discussing the forty eight (48) real property parcels owned by the Successor Agency and the proposed characterization of each property or grouping of parcels in the Management Plan; and WHEREAS, attached hereto is a Management Plan for the real property owned by the Successor Agency, as prepared in accordance with Health & Safety Code Section 34191.5 and the guidelines posted on the DOF website; and AGENDA ITEM 3 Page 6 OVERSIGHT BOARD RESOLUTION NO. SA 2013 -009 Page 2 WHEREAS, the Management Plan determines that eighteen (18) parcels are to be held for governmental use and recommends transfer of such properties to the City to be retained for a governmental public purpose pursuant to Health & Safety Code Section 34191.5(c)(2), as follows: the Lake Elsinore Senior Activities Center, Lake Elsinore Cultural Center, Downtown Parking /Alley (6 parcels), Conservation Easement (2 parcels), Floodway (2 parcels), Gazebo property (historic preservation) and the Cultural Center /Business Incubator Properties (5 parcels); and WHEREAS, the Management Plan determines that two (2) properties (which consist of three legal parcels) are to be retained by the Successor Agency to fulfill enforceable obligations pursuant to Health & Safety Code Section 34191.5(c)(2), as follows: the Exchange Parcel to be Conveyed pursuant to the Summerly DDA and the Lake Elsinore Diamond Stadium (2 parcels); and WHEREAS, the Management Plan determines that the remaining twenty seven (27) parcels owned by the Successor Agency are to be sold or held for development and then sold at a later date, with the proceeds to be used to pay enforceable obligations or distributed to the taxing entities, with twenty two (22) parcels to be held for development and then later sold subject to a Request for Proposal process such that the planning objectives of the City and the Redevelopment Plans can be advanced, and five (5) additional parcels to be sold upon approval of the Management Plan by the Department of Finance; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1, The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. The Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore hereby approves the Long Range Property Management Plan dated October 22, 2013 attached as Exhibit A hereto. SECTION 3. Executive Director Yates, or his designee, is hereby authorized to submit the Long Range Property Management Plan to DOF and such other parties as may be required in accordance with the Health & Safety Code, and to take such other actions on behalf of the Successor Agency with respect to the Long Range Property Management Plan as may be necessary in accordance with applicable law. SECTION 4. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or AGENDA ITEM 3 — Page 7 OVERSIGHT BOARD RESOLUTION NO. SA 2013 -009 Page 2 applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 5. This Resolution shall take effect from and after the date of its passage and adoption in accordance with, and subject to, all applicable requirements of the Health & Safety Code. PASSED, APPROVED AND ADOPTED at a regular meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 22nd day of October, 2013 by the following vote: AYES: NOES: ABSENT: WA OMR1r_11►F Phil Williams, Chairperson Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Uftd 11004 7WFM i77i1:78iF Phillip Greer, Oversight Board Counsel ATTEST: Virginia J. Bloom, Oversight Board Secretary AGENDA ITEM 3 Page 8 W W Fm a °a a V z W Q a N W U 0 0 0 0 0 ' A `V=A1F "��� o oEE coo ds 0200E aaa a u� co o` paaaa ffi�yaaan.a aaa{{a. 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"t1s LONG -RANGE PROPERTY MANAGEMENT PLAN CHECKLIST Instructions: Please use this checklist as a guide to ensure you have completed all the required components of your Long -Range Property Management Plan. Upon completion of your Long -Range Property Management Plan, email a PDF version of this document and your plan to: Redevelopment—Administration@dof.ca.gov The subject line should state "[Agency Name] Long -Range Property Management Plan ", The Department of Finance (Finance) will contact the requesting agency for any additional information that may be necessary during our review of your Long -Range Property Management Plan. Questions related to the Long -Range Property Management Plan process should be directed to (916) 445 -1546 or by email to Redevelopment Administration§dof.ca.gov, Pursuant to Health and Safety Code 34191.5, within six months after receiving a Finding of Completion from Finance, the Successor Agency is required to submit for approval to the Oversight Board and Finance a Long - Range Property Management Plan that addresses the disposition and use of the real properties of the former redevelopment agency. GENERAL INFORMATION: Agency Name: Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Date Finding of Completion Received: April 26, 2013 Date Oversight Board Approved LRPMP: October 22, 2013 m Long -Range Property Management Plan Requirements For each property the plan Includes the date of acquisition, value of property at time of acquisition, and an estimate of the current value. ® Yes ❑ No For each property the plan includes the purpose for which the property was acquired. ® Yes ❑ No For each property the plan Includes the parcel data, including address, lot size, and current zoning in the former agency redevelopment plan or speck, community, or general plan. ® Yes ❑ No For each property the plan includes an estimate of the current value of the parcel Including, if available, any appraisal information. ® Yes ❑ No Page 1 of 3 For each property the plan includes an estimate of any lease, rental, or any other revenues generated by the property, and a description of the contractual requirements for the disposition of those funds. ® Yes ❑ No For each property the plan Includes the history of environmental contamination, including designation as a brownfield site, any related environmental studies, and history of any remediation efforts. ® Yes ❑ No For each property the plan includes a description of the property's potential for transit -oriented development and the advancement of the planning objectives of the successor agency. ® Yes ❑ No For each property the plan includes a brief history of previous development proposals and activity, including the rental or lease of the property. ® Yes ❑ No For each property the plan identifies the use or disposition of the property, which could include 1) the retention of the property for governmental use, 2) the retention of the property for future development, 3) the sale of the property, or 4) the use of the property to fulfill an enforceable obligation. ® Yes ❑ No The plan separately identifies and list properties dedicated to governmental use purposes and properties retained for purposes of fulfilling an enforceable obligation. ® Yes ❑ No •' T •'< ® If applicable, please provide any additional pertinent information that we should be aware of during our review of your Long -Range Property Management Plan. Page 2 of 3 APPROVED(DENIED BY: DATE: Page 3 of 3