HomeMy WebLinkAbout0005_1_SA Staff Report - Transfer of Properties 062816REPORT TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY
OF THE CITY OF LAKE ELSINORE
To:Honorable Chairman and the Successor Agency
From:Grant Yates, Executive Director
Prepared By: Barbara Leibold, Successor Agency Counsel
Date:June 28, 2016
Subject:Approval of a Form of Compensation Agreement and Transfer of
Properties to the City of Lake Elsinore for Future Development in
Accordance with Health & Safety Code Section 34180(f)
Recommendation
Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE APPROVING (1) THE FORM OF A
COMPENSATION AGREEMENT PURSUANT TO HEALTH & SAFETY CODE SECTION
34180(f); AND (2) TRANSFER OF CERTAIN PROPERTIES BY THE SUCCESSOR
AGENCY TO THE CITY OF LAKE ELSINORE FOR FUTURE DEVELOPMENT
Background
As part of the dissolution of the former Redevelopment Agency, Health & Safety Code
Section 34177(e) requires the Oversight Board to direct the Successor Agency to dispose of
the real property held by the Successor Agency. The Successor Agency has identified the
properties listed in Exhibit A to Resolution OB-2016-003 attached hereto (collectively, the
“Properties”) as properties to be transferred to the City for future development, and the
Successor Agency and Oversight Board have previously approved a Long Range Property
Management Plan (LRPMP) which identified the same properties as properties to be
transferred to the City for future development.
Discussion
The Successor Agency must dispose of real property in accordance with Health & Safety
Code Sections 34177(e) and 34181(a). The data sheets from the LRPMP have been
updated to include available detail for each of the properties to be transferred to the City for
future development. All of the properties were previously approved by the Oversight Board
as properties to be transferred to the City for future development.
Transfer of Properties to be Held for Future Development
June 28, 2016
Page 2 of 3
Applicable law requires that an approved compensation agreement (the “Compensation
Agreement”) be executed by the affected Taxing Entities and the City to allow for the transfer
of the Property to the City for ultimate disposition consistent with the Redevelopment Plan.
The Compensation Agreement sets forth how proceeds from the sale of the Property will be
distributed to the Taxing Entities when the City conveys it to a private developer for
redevelopment. The net proceeds received by the City from the ultimate sale of the Property
to a private developer will be remitted to the Riverside County Auditor-Controller who will
then distribute the net proceeds to the Taxing Entities in proportion to their normal respective
property tax shares. For illustrative purposes, the current distribution pro-rata proportions
are listed on the table below.
Taxing Entity/Fund Property Tax Share
Riverside County General 11.06%
County Free Library 1.20%
County Structure Fire Protection 4.89%
Lake Elsinore General Fund 10.17%
Lake Elsinore Unified School District 39.94%
Mt. San Jacinto Junior College 4.80%
Elsinore Area Elementary School Fund 8.75%
Riverside County Office of Education 4.94%
Riverside Co. Regional Park & Open Space 0.27%
Flood Control Administration 0.20%
Flood Control Zone 3 2.79%
Elsinore Valley Cemetery 0.83%
Elsinore Valley Municipal Water 9.04%
Western Municipal Water 1.08%
Western Municipal Water 1st Fringe 0.03%
Riverside Corona Resource Conservation 0.01%
Property Transfer
In addition to approving the form of the Compensation Agreement for the distribution of net
proceeds, the attached resolution authorizes the Successor Agency, upon full execution of
the Compensation Agreement by the Taxing Entities and the City, to convey the Properties to
the City by grant deed and to take any action and execute any documents as may be
necessary to implement the conveyance of the Property to the City, pursuant to Health &
Safety Code section 34181, subdivision (a).
Following the Successor Agency’s approval of the transfer, the Oversight Board must also
approve the transfer. The Oversight Board’s Resolution approving such transfer must be
Transfer of Properties to be Held for Future Development
June 28, 2016
Page 3 of 3
transmitted to DOF. DOF has five (5) days after submittal to request a review and forty-five
(45) days to review the Oversight Board Resolution if it decides to do so.
Detailed information from the LRPMP regarding the properties has been updated and is
attached for informational purposes only. Please note that the property ID #s in these
detailed sheets correspond to the LRPMP and do not match the ID #’s in Exhibit A to the
Resolution.
Attachments:
Properties held for Future Development Data Sheets and Maps
Resolution No. SA 2016-0
Exhibit A – Compensation Agreement