HomeMy WebLinkAbout0010_2_Purchase of Properties - Exhibit A ResolutionRESOLUTION NO. 2017-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ACTING AS SUCCESSOR TO THE HOUSING
ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY
OF THE CITY OF LAKE ELSINORE UNDER HEALTH & SAFETY CODE
SECTION 34176(a)(1),APPROVING A PURCHASE AND SALE
AGREEMENT FOR THE PURCHASE OF REAL PROPERTY FOR
AFFORDABLE HOUSING PURPOSES FROM THE SUCCESSOR AGENCY
TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF LAKE
ELSINORE
WHEREAS, the City of Lake Elsinore (“City”) is a municipal corporation organized and
operating under the laws of the State of California; and
WHEREAS, the Successor Agency to the Redevelopment Agency of the City of Lake
Elsinore (“Successor Agency”) is a public body corporate and politic, organized and
operating under Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code
(“HSC”), and the successor to the former Redevelopment Agency of the City of Lake
Elsinore (“former Agency”) that was previously a community redevelopment agency
organized and existing pursuant to the Community Redevelopment Law, Health and
Safety Code Section 33000, et seq. (“CRL”); and
WHEREAS, Assembly Bill xl 26 (“AB xl 26”) added Parts 1.8 and 1.85 to Division 24 of the
California Health & Safety Code and which laws were modified, in part, and determined
constitutional by the California Supreme Court in the petition California Redevelopment
Association. et al. v. Ana Matosantos, et al., Case No. S194861 (“Matosantos Decision”),
which laws and court opinion caused the dissolution of all redevelopment agencies and
winding down of the affairs of former redevelopment agencies: thereafter, such laws were
amended further by Assembly Bill 1484 (“AB 1484”) (together AB xl 26, the Matosantos
Decision,and AB 1484, as amended to date,referred to as the “Dissolution Law”); and
WHEREAS, as of February 1, 2012,the former Agency was dissolved pursuant to the
Dissolution Law and as a separate public entity, the Successor Agency administers the
enforceable obligations of the former Agency and otherwise unwinds the former Agency’s
affairs, all subject to the review and approval of a seven-member oversight board
(“Oversight Board”); and
WHEREAS, as of February 1, 2012, the City elected to act as the successor to the housing
assets and functions of the former Agency in accordance with HSC Section 34176.1(a)(3)(A)
(“Housing Successor”); and
WHEREAS, the Successor Agency completed the Due Diligence Reviews (“DDRs”) required
under HSC Section 34179.5 and submitted them for approval to the Oversight Board and the
California Department of Finance (“DOF”); and
WHEREAS, the Oversight Board and the DOF reviewed and approved the DDRs; and
WHEREAS, as a result of the approval of the DDRs and resulting payments of funds to the
county auditor-controller, DOF issued the Successor Agency a “Finding of Completion” as
described in HSC Section 34179.7; and
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WHEREAS, as a result of its receipt of Finding of Completion, the Successor Agency was
required to (i) prepare a “Long Range Property Management Plan” (“LRPMP”) meeting the
requirements of HSC Section 34191.5(c), and (ii) submit the LRPMP to the Oversight Board and
the DOF for approval within six months of the date of the Finding of Completion; and
WHEREAS,the Successor Agency prepared its LRPMP in accordance with HSC Section
34191.5(c) and submitted it to the Oversight Board for approval; and
WHEREAS, the Oversight Board approved the LRPMP and directed that it be submitted to the
DOF for approval in accordance with HSC Section 34191.5(c); and
WHEREAS, notwithstanding the timely approval and submission of the LRPMP by the
Oversight Board, DOF did not approve the LRPMP by December 31, 2015; and
WHEREAS, as a result, the statutory requirements for disposition of real property set forth in
HSC Sections 34181(a) and 34177(e) currently apply to the disposition of property by the
Successor Agency; and
WHEREAS, the Successor Agency has proposed to sell to the City, in its capacity as Housing
Successor, certain properties owned by the Successor Agency identified as Assessor’s Parcel
Numbers 374-062-005; 374-062-006; 374-062-015; [374-062-020]; 374-162-039; 374-162-041;
374-162-043; 374-162-045; 374-162-047; 374-162-049; 374-162-051; 374-162-053; 374-162-
055; 374-162-057; 374-162-059; 374-162-061 (collectively, the “Properties”) for affordable
housing purposes; and
WHEREAS, the Successor Agency and its Oversight Board, after being provided with
appraisals for the Disposition Properties and a form of Purchase and Sale Agreement between
the City and the Successor Agency, approved the sale of the Properties to the City for
consideration equal to fair market value, and the California Department of Finance subsequently
approved the Oversight Board resolution approving the sale and the form of Purchase and Sale
Agreement; and
WHEREAS,the Properties have an aggregate fair market value of not less than $720,000, as
determined by an appraisal prepared by a third party, licensed appraiser, which constitutes the
purchase price set forth in the form of Purchase and Sale Agreement; and
WHEREAS,in accordance with the Dissolution Law, the Housing Successor has established a
Low and Moderate Income Housing Asset Fund (“LMIHAF”), the proceeds of which can only be
used for affordable housing purposes; and
WHEREAS,there are sufficient funds in the LMIHAF to purchase the Properties in accordance
with the Purchase and Sale Agreement; and
WHEREAS,the City has been allocated 1,196 very low income units, 801 low income units and
897 moderate income units as part of its regional housing allocation for the current Housing
Element period (2014 – 2021); and
WHEREAS,the existing developments for low income households in the City are not likely to
meet the projected need for low income housing in the Lake Elsinore community; and
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WHEREAS,purchase of the Properties for affordable housing purposes serves the common
benefit by assisting the City in meeting the State mandate to provide very low income, low
income and moderate income housing; and,
WHEREAS, the City Council of the City has duly considered all of the terms and conditions of the
Purchase and Sale Agreement, as set forth in the agenda report presented to it and as attached
hereto and any testimony received at the meeting at which this matter was considered, and
believes that the acquisition of the Properties is in the best interests of the City and the health,
safety, morals and welfare of its residents, and in accord with the public purposes and provisions of
applicable State and local law requirements; and
WHEREAS,by authorizing acquisition of the Properties, the City Council hereby finds and
determines that it is not committing itself to or agreeing to undertake any other acts or activities
requiring the subsequent independent exercise of discretion by the City Council or any
representative or department thereof. Any disposition of the Properties or future use thereof
shall be preceded by, and is conditional and contingent upon, environmental assessment and
review under, and in compliance with, the California Environmental Quality Act (“CEQA”); and
WHEREAS, the City, in its capacity as Housing Successor, desires to approve a Purchase and
Sale Agreement substantially in the form attached hereto to be entered into by the City and
Successor Agency for the purchase and sale of the Properties for an aggregate purchase price
of $720,000; and
WHEREAS, the City in its capacity as Housing Successor, proposes to purchase the Properties
utilizing funds from the LMIHAF; and
WHEREAS, the City, in its capacity as Housing Successor, proposes to purchase the Properties
for affordable housing purposes in accordance with applicable sections of the Dissolution Law;
and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS
SUCCESSOR TO THE HOUSING ASSETS AND FUNCTIONS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE UNDER HEALTH &
SAFETY CODE SECTION 34176(a)(1), 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 City, in its capacity as Housing Successor, hereby approves the purchase of
the Properties for an aggregate purchase price of $720,000. The terms and provisions of the
Purchase and Sale Agreement between the City and Successor Agency with respect to the
acquisition of the Properties in the form attached hereto is hereby approved, with such changes
as may be mutually agreed upon by the City Manager (or his duly authorized representative), in
consultation with the City Attorney, as are minor and in substantial conformance with the form of
the Purchase and Sale Agreement submitted herewith.
SECTION 3.The City, in its capacity as successor to the housing assets and functions of the
former Agency under Health & Safety Code Section 34176(a)(1), hereby appropriates funds
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from the Low and Moderate Income Housing Asset Fund to fund the purchase price for the
Properties and other costs as set forth in the Purchase and Sale Agreement.
SECTION 4.The acquisition of the Property by the City pursuant to the Purchase and Sale
Agreement is exempt from the provisions of CEQA under Section 15004(b)(2)(A) of the State
CEQA Guidelines because any subsequent disposition or action taken by the City Council with
respect to the future use of the Properties shall be preceded by, and is conditional and
contingent upon, environmental assessment and review under, and in compliance with, CEQA.
SECTION 5.The City Manager is hereby authorized and directed to execute, and the City
Clerk is hereby authorized and directed to attest, the Purchase and Sale Agreement on behalf
of the City, including the acceptance in the name and on behalf of the City of a grant deed
conveying to this City the above-described interest in the Properties. In such regard, the City
Manager is authorized to sign the final version of the Purchase and Sale Agreement after
completion of any such non-substantive, minor revisions. Copies of the final form of the
Agreement, when duly executed and attested, shall be placed on file in the office of the City
Clerk.
SECTION 6.In addition, the City Manager is authorized and directed to do any and all things,
and to execute any and all additional documents, which he may deem necessary or advisable to
effectuate this Resolution, including all escrow instructions and documents, which in
consultation with the City Attorney, he may deem necessary or advisable in order to carry out
and implement the Purchase and Sale Agreement and otherwise effectuate the purposes of this
Resolution and to administer the City’s obligations, responsibilities and duties to be performed
under the Purchase and Sale Agreement. The City Manager is further authorized and directed
to do any and all things, and to execute any and all documents, to insure that the Properties
shall be utilized by the City in accordance with the Community Redevelopment Law (Part
1(commencing with Section 33000)), as amended by Health and Safety Code Section 34176.1,
and, in particular, for the development of affordable housing in accordance with Health and
Safety Code Section 34176.1(a)((3)(A). Any previously-taken acts or previously-executed
documents in furtherance of the subject matter hereof are hereby ratified.
SECTION 7.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 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 City Council hereby declares that it
would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.
SECTION 8.The City Clerk shall certify to the passage and adoption of this Resolution and
enter it into the book of original resolutions.
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SECTION 9.This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 10th day of January 2017.
Robert E. Magee, Mayor
ATTEST:
Susan M. Domen, MMC
City Clerk
APPROVED AS TO FORM:
Barbara Leibold
City Attorney
Attachment:Purchase and Sale Agreement
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify
that Resolution No. ______ was adopted by the City Council of the City of Lake Elsinore,
California, at the regular meeting of January 10, 2017, and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Susan M. Domen, MMC
City Clerk