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REPORT TO OVERSIGHT BOARD TO THE
SUCCESSOR AGENCYOF THE REDEVELOPMENT
AGENCYOF THE CITY OF LAKE ELSINORE
To:Chairperson Kelley and Oversight Board Members
From:Barbara Leibold, Successor Agency Counsel
Date:May 16, 2018
Subject:Approval of Transfer of Properties to the City of Lake Elsinore for Future
Development Subject to Form Compensation Agreement Among
Affected Taxing Entities 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 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 todispose of
real property held by the Successor Agency. Pursuant to that mandate and in accordance
with Oversight Board and California Department of Finance (DOF) approval, the Successor
Agency has disposed of 49 of the 57 properties that were owned by the former
Redevelopment Agency at the time of dissolution.
Of the eight remaining properties, two will be held by the Successor Agency pursuant to
enforceable obligations and two will be offered for sale at fair market value. By separate
action under another Agenda item, the Oversight Boardwill consider the conveyance of a
portion of one of these properties to the City for historical preservation.
By Resolution No. SA 2018-005, the Successor Agency approved conveyance of the last
four parcels to the City to be held for future developmentpursuant to Health& Safety Code
Section 34180(f). These four parcels (collectively, the “Properties”)are depicted on the
attached Vicinity Map and more particularly described as:
Parcel ID 8 –APN 373-025-007
Parcel ID 9 – APN 373-025-014
Parcel ID 10 –APN 373-025-024
Parcel ID 11 –APN 373-025-027.
Transfer of Properties to City for Future Development
May 16, 2018
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Discussion
The Properties are located in Redevelopment Project Area No. I in historic downtown Lake
Elsinore within the block bounded by Main, Franklin, Ellis and Heald.The Properties are
locatedin proximity to the Lake Elsinore Cultural Center and are an integral part of the
Downtown Master Plan which was sponsored by the former Redevelopment Agency as the
first step toward downtown revitalization.
The former Redevelopment Agency’s goals and objectives for Redevelopment Project Area I
included:
eliminate and prevent the spread of physical blight and deterioration by promoting
and encouraging immediate development of parcels in Redevelopment Project Area
No. I which are substantially vacant, underutilized and/or unproductive, and
encourage and foster economic revitalization, rehabilitation and growth in the
Downtown/Old Town Historic District consistent with the Downtown Master Plan.
The current configuration of the Properties would allow them to be combined into two
developable sites; a .24 acre site on Main Street and a .34 acre site on Ellis.The possibility
of creating a single larger developable site is also present given that the parcels adjacent to
the Properties are vacant and unimproved.The development of these Properties would
contribute to the former Redevelopment Agency’s economic development and revitalization
goals for the downtown.
Health & Safety Code Section 34180(f) requiresthat an approved compensation agreement
(the “Compensation Agreement”) be executed by the affected taxing entities and the Cityin
orderto allow for the transfer of the Propertiesto the City for ultimate disposition consistent
with the Redevelopment Plan.The form of the attached Compensation Agreement is
identical to form agreement approved by the Oversight Board by Resolution No. OB 2016-
003 and approved and executed byall of the affected taxing entities in connection with the
prior conveyance of properties to the City to be held for future development.
The Compensation Agreement sets forth how proceeds from the sale of the Properties for
private development will be distributed to the taxing entities.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.
Transfer of Properties to City for Future Development
May 16, 2018
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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%
The attached Oversight Board Resolution approves and authorizes the Successor Agency,
upon full execution of the Compensation Agreement by the Taxing Entities, to convey the
Properties to the City pursuant to Health & SafetyCode section 34181(a).
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:
Vicinity Map
Resolution No. OB2018-0
Exhibit A -Form Compensation Agreement