HomeMy WebLinkAbout0003_1_Transfer of Properties for Future Development - SRPage 1 of 3
REPORT TO OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY OF THE REDEVELOPMENT
AGENCY OF THE CITY OF LAKE ELSINORE
To:Chairperson Kelley and Members of the Oversight Board
From:Barbara Leibold, Successor Agency Counsel
Date:September 29, 2016
Subject:Transfer of the Cultural Center and Downtown Parking Property to the
City of Lake Elsinore for Future Development in Accordance with Health
& Safety Code Section 34180(f)
Recommendation
Adopt A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF
THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
APPROVING TRANSFER OF THE CULTURAL CENTER AND DOWNTOWN PARKING
PROPERTY 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
any real property held by the Successor Agency.
The Successor Agency and Oversight Board previously approved the transfer of certain
Successor Agency owned properties, including the five parcels across the street from the
Cultural Center referred to in Attachment 1 hereto as the “Cultural Center and Downtown
Parking Property,” to the City of Lake Elsinore as governmental purpose properties. While
DOF approved the majority of the proposed transfers, conveyance of the Cultural Center and
Downtown Parking Property to the City as governmental purpose property was denied by
DOF.
The Successor Agency and Oversight Board also previously approved the conveyance of
certain other properties to the City for future development pursuant to Health & Safety Code
Section 34180(f). DOF approved those conveyances subject to execution of a compensation
agreement by the affected Taxing Entities and the City as required by applicable law (the
“Compensation Agreement”).
Use of the Cultural Center and Downtown Parking Property for public parking has continued
uninterrupted since 1994 when the City first leased the properties expressly for Cultural
Center parking. In 2008, the former Redevelopment Agency entered into a Purchase & Sale
Agreement to acquire the vacant property consisting of two parcels together with 3 small
parcels improved with retail businesses. That transaction closed in 2009 and the structures
were later demolished to expand the public parking lot.
Transfer of Properties to be Held for Future Development
Page 2 of 3
In light of DOF’s rejection of the Successor Agency’s and Oversight Board’s findings that the
Cultural Center and Downtown Parking Property qualifies as governmental purpose property
and in response to follow-up consultations with DOF, the Successor Agency proposes to
transfer of the Cultural Center and Downtown Parking Property to the City for future
development under the provisions of Health & Safety Code Section 34180(f).
Discussion
Transfer of the Cultural Center and Downtown Parking Property to the City for future
development would require that the City share any profit made from the future sale or
operation of the properties with the Taxing Entities in accordance with Health & Safety Code
Section 34180(f).
The form of the Compensation Agreement previously approved by the Successor Agency
and Oversight Board is attached. The Compensation Agreement sets forth how proceeds
from the sale of the properties will be distributed to the Taxing Entities when the City conveys
those properties to a private developer for redevelopment. The net proceeds received by the
City from the ultimate sale of the properties 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%
Transfer of Properties to be Held for Future Development
Page 3 of 3
The Successor Agency approved the transfer at its September 27, 2016 meeting and the
matter is now presented to the Oversight Board for consideration and approval. The
attached Resolution authorizes the Successor Agency, upon full execution of the
Compensation Agreement by the Taxing Entities and the City, to convey the Cultural Center
and Downtown Parking Property to the City for future development.
The Oversight Board’s Resolution approving such transfer must be 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.
Attachments:
Cultural Center and Downtown Parking Property
Form Compensation Agreement
Resolution No. OB-2016-