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HomeMy WebLinkAbout2008-11-25 - AGENDA REPORTS - PURCHASE 24509 SPRUCE ST (2)Agenda Item: C CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: Wzo"� PUBLIC HEARING Item to be presented by: Paul Brotzman DATE: November 25, 2008 SUBJECT: RESOLUTION MAKING CERTAIN DETERMINATIONS PERTAINING TO THE PURCHASE OF LAND FOR PUBLIC IMPROVEMENTS AT 24509 SPRUCE STREET, SANTA CLARITA, CA 91321 - APN 2831-006-032, PURSUANT TO HEALTH AND SAFETY CODE SECTIONS 33445 AND 33679. DEPARTMENT: Community Development RECOMMENDED ACTION CITY COUNCIL: Conduct a public hearing and adopt a resolution consenting to payment being made by its Redevelopment Agency of the City of Santa Clarita (Agency) for the purchase of land for public improvement and making the findings required by Section 33445 of the California Redevelopment Law to permit the use of Agency funds to purchase 24509 Spruce Street for the construction of a public library. REDEVELOPMENT AGENCY: 1. Conduct a public hearing and adopt a resolution of the Agency requesting consent from the City Council to use Agency funds for the purchase of land for public improvements and making the findings required by Section 33445 of the California Redevelopment Law and to permit the use of those funds to acquire 24509 Spruce Street for the construction of a public library. 2. Agency authorize Executive Director or designee to approve payments up to a maximum amount of $806,000 for the acquisition and for all required costs related thereto and execute all required documentation to complete the acquisition of 24509 Spruce Street, Santa Clarita, -Re C '0.O�s� l03 �l Opifto eso. 2D4 O�-- ( 2, California 91321 (Assessor Parcel 2831-006-032), subject to review by Agency Attorney. BACKGROUND The property located at 24509 Spruce Street, occupied by the "Just Passing Through" piercing studio, is the final parcel that must be obtained by the Agency before it will be possible to begin construction on the new library in Downtown Newhall. Currently the Agency is negotiating with Thomas M. Fitterer, Trustee for the owner, for the purchase of this property. However, negotiations to date have not resulted in acquisition of the property. Two seperate offers were based on an appraisal dated June 5, 2007. On September 24, 2007 an offer in the amount of $586,400 was submitted to the property owner and resulted in the owner submitting a counter offer requesting $1.8M for the property on April 28, 2008. That counter offer was not accepted. On June 11, 2008 another offer was submitted to the property owner, this time in the amount of $750,000. That second offer was not accepted by the owner, but instead resulted in a counter offer in the amount of $1,475,000 on July 24, 2008. Subsequently, the owner made a second counter offer to the same June 11, 2008 offer of $1,770,000 on October 2, 2008. Those counter offers were also considered too high, and therefore not accepted. On September 17, 2008, an updated appraisal was completed which established the value for just compensation of the property as being $790,000. In addition to the just compensation value of $790,000 for the property, an additional $16,000 is needed for title research, environmental reports, escrow, and issuance of a policy for title insurance for a total of $806,000. This total for just compensation does not include disposition of the business nor cost for tenant relocation. Those costs will be determined once the property purchase has been completed. In order for redevelopment agencies to spend funds for the payment of land for the construction of public improvements such as the public library, the Agency must request and the City Council must consent and each body must make findings as provided for in the attached resolutions. Specifically the Agency and Council must find that: 1. The use of Agency funds is of benefit to the project area(s) funding the improvement. 2. There is no other reasonable means of financing the improvements. 3. Funding the project will assist in the elimination of one or more blighting conditions inside the project area. 4. Consistency with the Agency's 5 -Year Implementation Plan. As further discussed in the attached resolutions, those findings can be satisfactory made permitting the Agency to use its funds for the purchase of 24509 Spruce Street. ALTERNATIVE ACTIONS 1. City Council or Agency may direct staff to cease the acquisition effort. 2. Other actions as determined by the Agency or City Council. FISCAL IMPACT There is no fiscal impact created by the approval of the recommended action. ATTACHMENTS Resolution - City Council Resolution - Redevelopment Agency Aerial Map RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA MAKING THE FINDINGS REQUIRED BY SECTION 33445 OF THE CALIFORNIA REDEVELOPMENT LAW AND DETERMINING THAT THE PURCHASE OF 24509 SPRUCE STREET FOR THE CONSTRUCTION OF A PUBLIC LIBRARY IS OF BENEFIT TO THE NEWHALL REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of Santa Clarita (the "Agency") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Law"), including the power to expend funds for public improvements for the benefit of the Newhall Redevelopment Project Area ("Project Area"); and WHEREAS, the City of Santa Clarita ("City") is the legislative body for the community in which the Project Area is located and pursuant to Health & Safety Code Section 33445 is required to consent to payments to be made by its Agency for the acquisition of land for the installation of public improvements; and WHEREAS, the Downtown Newhall Specific Plan adopted on December 22, 2005 provides for the funding of public improvements within the Project Area; and WHEREAS, the provisions of public improvements is consistent with the Redevelopment Agency's Five -Year Implementation Plan in that the purchase of 24509 Spruce Street, Santa Clarita, California, APN 2831-006-032, for the construction of a public library ("Project") is listed in the Five -Year Implementation Plan as a goal and objective; and WHEREAS, the Agency desires to purchase the land for the Project with $806,000 of Agency funds as presently the City does not have funds available for this project; and WHEREAS, there are appropriate facts supporting the findings required by Health & Safety Code Section 33445 for the City Council to consent to the Agency's expenditure of funds for the purchase of land for public improvements provided by the Project. NOW, THEREFORE, the City Council of the City of Santa Clarita, California does hereby resolve as follows: SECTION 1. Recitals. The City Council of the City of Santa Clarita (hereafter "City Council"), after consideration of the Agenda Report, staff presentation, discussion, oral testimony and evidence presented at the public meeting on November 25, 2008 hereby finds, that the above recitals are true and correct and incorporates them herein. SECTION 2. Findings Required by Health & Safety Code Section 33445. The City Council hereby determines that: a. The Project is of benefit to the Project Area as there are inadequate public facilities within the Project Area and the purchase of the land to construct a public library will provide those needed public facilities, and b. No other reasonable means of financing the purchase of the property are available to the community as the City is using its funds to undertake other public improvements throughout the City, and C. That the payment of funds for the Project will assist in the elimination of blighting conditions inside the Redevelopment Project Area by providing for adequate parcels for the construction of a public library. The Project once complete will assist in attracting new businesses and residential developments to the area as the Project will be a positive public amenity within the Project Area, and d. The use of Agency funds for the acquisition is consistent with the Agency's adopted implementation plan per Health and Safety Code section 33490. SECTION 3. City Consent. The City Council consents to the Agency's request to pay $806,000 for the property located at 24509 Spruce Street, Santa Clarita, California, APN 2831-006-032 to permit the construction of a public library. SECTION 4. Effective Date. This Resolution shall take effect from and after its date of passage, approval and adoption. SECTION 5. Certification. The City Clerk shall certify the adoption of this Resolution and certify this record to be a full, complete and correct copy of the action taken. PASSED, APPROVED, AND ADOPTED this day of , 2008. ATTEST: CITY CLERK 2 MAYOR STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City of Santa Clarita at a regular meeting thereof, held on the day of , 2008, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 3 CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 08-, adopted by the City Council of the City of Santa Clarita, California on , 2008, which is now on file in my office. Witness my hand and seal of Ahe City of Santa Clarita, California, this day of , 2008. Sharon L. Dawson, MMC City Clerk By Susan Coffinan Deputy City Clerk 4 RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA, CALIFORNIA, MAKING THE FINDINGS REQUIRED BY SECTION 33445 OF THE CALIFORNIA REDEVELOPMENT LAW AND DETERMINING THAT THE PROVISION OF PUBLIC IMPROVEMENTS FROM THE PURCHASE OF 24509 SPRUCE STREET FOR THE CONSTRUCTION OF A PUBILC LIBRARY IS OF BENEFIT TO THE NEWHALL REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of Santa Clanta (the "Agency") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Law"), including the power to expend funds for public improvements for the benefit of the Newhall Redevelopment Project Area ("Project Area"); and WHEREAS, the City of Santa Clarita ("City") is the legislative body for the community in which the Project Area is located and pursuant to Health & Safety Code section 33445 is required to consent to payments to be made by its Agency for the acquisition of land for the installation of public improvements; and WHEREAS, the Downtown Newhall Specific Plan adopted on December 22, 2005 provides for the funding of public improvements within the Project Area; and WHEREAS, the provisions of public improvements is consistent with the Redevelopment Agency's Five -Year Implementation Plan in that the purchase of 24509 Spruce Street, Santa Clarita, California, APN 2831-006-032, for the construction of a public library ("Project") is listed in the Five -Year Implementation Plan as a goal and objective; and WHEREAS, the Agency desires to, purchase the land for the Project with $806,000 of Agency funds as presently the City does not have funds available for this project; and WHEREAS, there are appropriate facts supporting the findings required by Health & Safety Code Section 33445 for the City Council to consent to the Agency's expenditure of funds for the purchase of land for public improvements provided by the Project. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: 1. Recitals, The Agency Board after consideration of the Agenda Report, staff presentation, discussion, oral testimony and evidence presented at the public meeting on November 25, 2008 hereby finds, that the above recitals are true and correct and incorporates them herein. 2. Findings Required by Health & Safety Code Section 33445. The Agency hereby determines that: a. The Project is of benefit to the Project Area as there are inadequate public facilities within the Project Area and the purchase of the land to construct a public library will provide those needed public facilities, and b. No other reasonable means of financing the purchase of the property are available to the community as the City is using its funds to undertake other public improvements throughout the City, and C. That the payment of funds for -the Project will assist in the elimination of blighting conditions inside the Redevelopment Project Area by providing for adequate parcels for the' construction of a public library. The Project once complete will assist in attracting new businesses and residential developments to the area as the Project will be a positive public amenity within the Project Area, and d. The use of Agency funds for the acquisition is consistent with the Agency's adopted implementation plan per Health and Safety Code section 33490. SECTION 3. Agency Request for use of Funds. The Agency requests the City Council's consent for the Agency to use its funds to pay $806,000 for the property located at 24509 Spruce Street, Santa Clarita, California APN 2831 006 013 to permit the construction of a public library. SECTION 4. Effective Date: This Resolution shall take effect from and after its date of passage; approval and adoption. SECTION 5. Certification: The Agency Secretary shall certify to the adoption of this Resolution. ' PASSED, APPROVED AND ADOPTED this day of 2008. EXECUTIVE DIRECTOR ATTEST: AGENCY SECRETARY 2 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA`CLARITA) 1 I, Sharon L. Dawson, MMC, Agency Secretary of the Redevelopment Agency of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the Redevelopment Agency of the City of Santa Clarita at a regular meeting thereof, held on the day of I . 2008, by the following vote: AYES: AGENCY MEMBERS:' NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: AGENCY SECRETARY l STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA RESOLUTION I, Sharon L. Dawson, Agency Secretary of the Redevelopment Agency of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 08- adopted by the Redevelopment Agency of the City of Santa Clarita, California on , 2008, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of )2008. Sharon L. Dawson, MMC Agency Secretary 4