HomeMy WebLinkAboutSA Reso No 2020-008 Purchase of Properties for Affordable Housing PurposesRESOLUTION NO. SA 2020-8
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING A PURCHASE AND SALE AGREEMENT FOR THE
SALE OF REAL PROPERTY TO THE CITY OF LAKE ELSINORE, IN ITS
CAPACITY AS THE 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),
FOR AFFORDABLE HOUSING PURPOSES IN ACCORDANCE WITH HEALTH
& SAFETY CODE SECTION 34176.1(A)(3)(A)
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 the Oversight Board to the Successor
Agency and, now, the Riverside Countywide 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, 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; 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
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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
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, an approximately 5,641 square foot portion of APN 374-162-036 located on
the northeast corner of Heald Avenue and Riley Street is home to the Mary McDonald historic
landmark and was previously conveyed to the City for historic preservation purposes following
approval by the Oversight Board and the Department of Finance (DOF); and
WHEREAS, the remainder portion of APN 374-162-036 comprised of approximately
17,775 square feet (the “Property”) is owned by the Successor Agency and has been identified
by the City in its capacity as the Housing Successor as an opportunity site for affordable senior
housing; and
WHEREAS,the Property has a fair market value of $120,000, 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 presented in the agenda report concurrent with
the consideration of this Resolution; 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,the sale of the Property to the City as housing Successor is in conformance
with the requirements of the Dissolution Law and serves the common benefit of the functions of
the Housing Successor and assisting the City in meeting the State mandate to provide its regional
fair share of very low income, low income and moderate income housing; and
WHEREAS,by authorizing the sale of the Property, the Successor Agency 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 Successor Agency,
the City Council or any representative or department thereof and that any proposed development
or future use of the Property shall be preceded by and in compliance with the California
Environmental Quality Act (“CEQA”).
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NOW, THEREFORE, 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 Successor Agency hereby approves the sale of the Property for a
purchase price of $120,000 consistent with the terms and provisions of the Purchase and Sale
Agreement between the City and Successor Agency with respect to the sale of the Property in
substantially the form set forth in the agenda report, with such minor changes as may be mutually
agreed upon by the Executive Director (or his duly authorized representative), in consultation with
Agency Counsel.
SECTION 3.The sale of the Property by the Successor Agency 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 Property shall be preceded by, and is
conditional and contingent upon, environmental assessment and review under, and in compliance
with, CEQA.
SECTION 5.The Executive Director is hereby directed to submit this Resolution and the
form of the Purchase and Sale Agreement to the Riverside Countywide Oversight Board and
DOF for approval. The Executive Director is hereby authorized and directed to execute, and the
Agency Secretary is hereby authorized and directed to attest, the Purchase and Sale Agreement
and Grant Deed on behalf of the Successor Agency. In such regard, the Executive Director 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 Executive Director 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 Agency Counsel, 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 Successor Agency’s obligations, responsibilities and duties to
be performed under the Purchase and Sale Agreement.
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 Successor Agency hereby declares that
it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.
SECTION 8.The Agency Secretary shall certify to the passage and adoption of this
Resolution and enter it into the book of original resolutions.
SECTION 9.This Resolution shall take effect immediately upon its adoption.
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Passed and Adopted on this 22nd day of September 2020.
Brian Tisdale, Chair
Attest:
Candice Alvarez, MMC, Secretary
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, Secretary of the Successor Agency to the Redevelopment Agency of
the City of Lake Elsinore, California, do hereby certify that Resolution No. SA 2020-8 was adopted
by the Successor Agency of the City of Lake Elsinore, California, at the Regular meeting of
September 22, 2020, and that the same was adopted by the following vote:
AYES: Agency Members Manos, Johnson, and Sheridan; Vice-Chair Magee; and
Chair Tisdale
NOES: None
ABSENT: None
ABSTAIN: None
Candice Alvarez, MMC, Secretary