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Home My WebLink About2007-12-11 - AGENDA REPORTS - 24533 SAN FERNANDO RD PURCHASE (2)CONSENT CALENDAR DATE: Agenda Item: CITY OF SANTA CLARITA REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval Item to be presented by: December 11, 2007 WE Paul Brotzman �r SUBJECT: ACQUISITION OF 24533 SAN FERNANDO ROAD, SANTA CLARITA, CA 91321 - APN #2831-006-002, 2831-006-030 AND 2831-006-031 DEPARTMENT: Community Development RECOMMENDED ACTION 1) Agency authorize the Executive Director or designee to sign all required documentation to complete the acquisition of 24533 San Fernando Road, Santa Clarita, CA 91321 (Assessor Parcels #2831-006-002, 2831-006-030, and 2831-006-031), subject to review by the City Attorney. 2) Agency appropriate $1,730,000 to account 13400-5201.004. Funds are available in the Redevelopment Agency fund balance. 3) Agency adopt reimbursement resolution. BACKGROUND On September 24, 2007, the City entered into negotiations to purchase 24533 San Fernando Road, Santa Clarita, CA. The site consists of three parcels, historically addressed as 24533, 24522, and 24535 San Fernando Road. The proposed acquisition will assist in implementing the re -design of San Fernando Road, including the installation of proposed public buildings and improvements to further the goals of the Redevelopment Agency and provide public enhancement of downtown Newhall under the guidelines of the proposed Specific Plan and existing Special Standards District. A map showing the property site is attached. This acquisition has been found in compliance with the purposes of the Redevelopment Agency and Government Code Section 65402. APPROVED Adopted. f W G The purchase price of the property is $1,715,000.00. An additional $15,000.00 is needed for title research, environmental reports, escrow,and issuance of a policy for title insurance. Agency adoption of the recommended reimbursement resolution would permit the Agency to be reimbursed for this purchase with bond proceeds should the Agency issue bonds in the future. This resolution does not bind the Agency to issue bonds but, rather, provides the Agency with additional financial flexibility. ALTERNATIVE ACTIONS 1) Agency may direct staff to cease the acquisition effort. 2) Other actions as determined by the Agency. FISCAL IMPACT Funds for this purchase are available in the Redevelopment Agency fund balance. ATTACHMENTS Reimbursement Resolution Aerial Map RESOLUTION NO. RESOLUTION OF THE BOARD OF THE SANTA CLARITA REDEVELOPMENT AGENCY AND THE DOWNTOWN NEWHALL PROJECT AREA OF THE CITY OF CLARITA DECLARING ITS INTENTION TO REIMBURSE CERTAIN EXPENDITURES FROM A TAX-EXEMPT OBLIGATION AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2 WHEREAS, the Board ("Board") of the Santa Clarita Redevelopment Agency and the Downtown Newhall Project Area of the City of Santa Clarita (the "Agency") is contemplating the use of one or more series of tax-exempt bonds or other financing obligations (the "Bonds") to fund certain redevelopment activities of benefit to the Agency's Downtown Newhall Project Area (the "Project Area"), including, but not limited to, the financing of certain low and moderate income housing projects and programs, and the acquisition, design, construction, improvement, installation, and/or rehabilitation of certain public capital improvements and facilities (collectively, the "Project"); and WHEREAS, the Agency intends to incur certain Project expenses prior to the date of delivery of the Bonds (the "Reimbursable -Expenses"); and WHEREAS, Section 1.150-2 of the regulations (the "Treasury Regulations") promulgated under the Internal Revenue Code of 1986, as amended (the "Code"), requires the Agency to declare its reasonable official intent to reimburse such Reimbursable Expenses for the Project from proceeds of the Bonds which the Agency reasonably expects will be incurred prior to the issuance of the Bonds, and that a portion of the proceeds of the Bonds shall be used to reimburse the Agency for such Reimbursable Expenses; NOW, THEREFORE, the Board of the Santa Clarita Redevelopment Agency and the Downtown Newhall Project Area of the City of Santa Clarita, does hereby resolve as follows: SECTION 1. All of the foregoing recitals are true and correct. SECTION 2. This Resolution is adopted for purposes of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This Resolution does not bind the Agency to make any expenditure, incur any indebtedness or proceed with the Project. SECTION 3. The Agency hereby declares its reasonable official intention to issue or to have issued on its behalf one or more series of Bonds or incur other tax-exempt debt in the expected estimated maximum principal amount of $41 million for the aggregate series of Bonds and to use proceeds of the Bonds to reimburse itself for the Reimbursable Expenses. All of the Reimbursable Expenses covered by this Resolution were made not earlier than sixty (60) days prior to the adoption hereof, other than certain de minimis amounts and preliminary expenditures as described in Treas. Reg. Section 1.150-2(f)(2) that are exempt from the sixty day requirement pursuant to Section 1.150-2 of the Treasury Regulations. The non-exempt Reimbursable Expenses covered by this Resolution are eligible for reimbursement provided the reimbursement occurs not later than eighteen (18) months after the later of the date the original expenditure is made or the date the property is placed in service; but in no event more than three (3) years after the original expenditure is made. SECTION 4. The Agency reasonably expects to reimburse itself for the Reimbursable Expenses made from the general fund of the Agency in anticipation of the issuance of the Bonds with proceeds from the sale of the Bonds. The reimbursement of the expenditure is consistent with the Agency's budgetary and financial circumstances. There are no funds or other sources of money of the Agency, or any related person or controlled entity, that have been, or are reasonably expected to be reserved, allocated on a long term basis or otherwise set aside to pay the costs of the Project to be paid or reimbursed out of the proceeds of the Bonds. SECTION 5. All actions heretofore taken by the officers, or their respective designees, and the employees and agents of the Agency in connection with the financing of the Project and execution and delivery of a supplemental tax certificate and other related documents and certificates are hereby ratified and confirmed. The officers and their designees, the employees and agents of the Agency are hereby authorized to take any and all actions in connection with the financing of the Project and as may be necessary and consistent with the purposes of this Resolution. SECTION 6. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED and ADOPTED this day of December 2007. ATTEST: SECRETARY THE SANTA CLARITA REDEVELOPMENT AGENCY AND THE DOWNTOWN NEWHALL PROJECT AREA OF THE CITY OF SANTA CLARITA CHAIR 2 STATE,OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) I, Sharon 1. Dawson, Secretary of the Santa Clarita Redevelopment Agency and the Downtown Newhall Project Area of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the Board of the Santa Clarita Redevelopment Agency and the Downtown Newhall Project Area of the City of Santa Clarita at a regular meeting thereof, held on the _ day of December 2007, by the following vote of the Board: AYES: NOES: ABSENT: SECRETARY OF THE SANTA CLARITA REDEVELOPMENT AGENCY AND THE DOWNTOWN NEWHALL PROJECT AREA OF THE CITY OF SANTA CLARITA 3 t