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HomeMy WebLinkAbout2009-01-27 - AGENDA REPORTS - LEASEHOLD INTEREST CARQUEST (4)Agenda Item: CITY OF SANTA CLARITA JOINT CITY COUNCIL / REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: 4=�� CCISCr-PA, 3 PUBLIC HEARING Item to be presented by: Alex Hernandez DATE: January 27, 2009 SUBJECT: RESOLUTION MAKING CERTAIN DETERMINATIONS PERTAINING TO THE ACQUISITION OF THE LEASEHOLD INTEREST AND CERTAIN IMPROVEMENTS PERTAINING TO THE REALTY OF GENERAL PARTS, INC., DBA CARQUEST AUTO PARTS, 24535 MAIN STREET 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 the Redevelopment Agency of the City of Santa Clarita (Agency) for the acquisition of the leasehold interest and certain improvements pertaining to the realty of General Parts, Inc. dba Carquest Auto Parts (Carquest) located at 24535 Main Street, Santa Clarita, CA to allow 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 the leasehold interest and certain improvements pertaining to the realty of Carquest to allow 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 acquisition of the leasehold interest and certain improvements pertaining to the realty of Carquest to allow 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 the leasehold interest and certain improvements pertaining to the realty of Carquest to allow for the construction of a public library. 2. Agency authorize Executive Director or designee to approve payments up to a maximum amount of $59,370 for the acquisition and to execute all required documentation to complete the acquisition of the leasehold interest and certain improvements pertaining to realty, subject to review by Agency Attorney. BACKGROUND In November 2007, the Agency purchased the property located at 24535 Main Street. The terms of the purchase and sale agreement required that the Agency assume two existing lease agreements, one of those leases is with General Parts, Inc., dba Carquest Auto Parts. The Carquest lease does not end until July 31, 2012, however, construction of the new library is scheduled to begin on or about July 1, 2009. Since May 2008, Agency staff and the Agency's relocation consultant, RSG have been working with Carquest's relocation representatives in an effort to identify another business location for the parts store. Since that time, over twenty potential locations have been submitted to Carquest for evaluation. Still, Carquest representatives have indicated that those properties, as well as many others within Santa Clarita, will not be acceptable for their specific business needs. In an effort to adhere to the current schedule which provides for construction of the library project to start in July 2009, an appraisal was completed to establish the fair market value of the leasehold interest and certain improvements pertaining to the realty for General Parts, Inc., dba Carquest Auto Parts. On December 24, 2008, an offer to purchase the leasehold interest and improvements pertaining to the realty (furniture, fixtures, and equipment) in the amount of $59,370 was submitted to General Parts, Inc., dba Carquest Auto Parts, which was determined to be the total amount of just compensation for the acquisition of the leasehold and the improvements pertaining to the realty. This is seperate and apart from any other relocation benefits or assistance to which Carquest may be entitled. Those costs will be determined once the acquisition of the leasehold interest and improvements pertaining to the realty has been completed. In order for redevelopment agencies to spend funds for the payment of property, including the leasehold interest and improvements pertaining to realty 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. 3-2 4. Consistency with the Agency's 5 -Year Implementation Plan. As further discussed in the attached resolutions, those findings can be satisfactorily made permitting the Agency to use its funds for the acquisition of the leasehold interest and improvements pertaining to realty of Carquest Auto Parts. 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 Funds for this expenditure, in the amount of $59,730, are available in Account 13400-5201.004. ATTACHMENTS Resolution - City Council Resolution - Redevelopment Agency 3-3 CITY OF SANTA CLARITA CITY COUNCIL and REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING Pursuant to Health & Safety Code Section 33679 the Redevelopment Agency of the City of Santa Clarita and the City of Santa Clarita City Council will hold public hearings on the expenditure of Agency funds to be used for the acquisition of the leasehold interest and certain improvements pertaining to the realty of General Parts, Inc., dba Carquest Auto Parts, located at 24535 Main Street for Project No. F2007390. NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita and the Redevelopment Agency of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Blvd., I" Floor, Santa Clarita, California on January 27, 2009, at 6:00 pm, or as soon after as possible, to consider the purchase proposed above. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Should you have any questions regarding the proposed purchase, please contact Renee Stoll at (661) 286-4182. ` If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: January 12, 2009 Sharon L. Dawson, MMC City Clerk Published on: January 15, 2009 January 22, 2009 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 ACQUISITION OF THE LEASEHOLD INTEREST AND IMPROVEMENTS PERTAINING TO THE REALTY OF GENERAL PARTS, INC. DBA CARQUEST AUTO PARTS TO ALLOW 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 property, including the leasehold interest and improvements pertaining to the realty of General Parts, Inc., dba Carquest Auto Parts to allow 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 acquisition of the leasehold interest and improvements pertaining to the realty of General Parts, Inc. dba Carquest Auto Parts for the construction of a public library ("Project") is identified within the Downtown Newhall Specific Plan as a goal and objective; and WHEREAS, the Agency desires to purchase the improvements for the Project with $59,370 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 property, which includes the leasehold interest and improvements pertaining to the realty of General Parts, Inc. dba Carquest Auto Parts 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 35 Council"), after consideration of the Agenda Report, staff presentation, discussion, oral testimony and evidence presented at the public meeting on January 27, 2009 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 acquisition of the property including improvements pertaining to the realty to allow for construction of 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 $59,370 for acquisition of the leasehold interest and the improvements pertaining to the realty of General Parts, Inc. dba Carquest Auto Parts located at 24535 Main Street, Santa Clarita, California, 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 27th day of January, 2009. MAYOR ATTEST: CITY CLERK 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 Council of the City of Santa Clarita at a regular meeting thereof, held on the 27th day of January, 2009, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 3 3`7 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. , adopted by the City Council of the City of Santa Clarita, California on , which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of , 20 Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk 11 3-8 RESOLUTION NO. RDA 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 ACQUISITION OF THE LEASEHOLD INTERESTS AND IMPROVEMENTS PERTAINING TO THE REALTY OF GENERAL PARTS, INC. DBA CARQUEST AUTO PARTS 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 property, which includes the leasehold interest and improvements pertaining to the realty 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 acquisition of the leasehold interest and improvements to realty of General Parts, Inc. dba Carquest Auto Parts for the construction of a public library ("Project") is identified within the Downtown Newhall Specific Plan as a goal and objective; and WHEREAS, the Agency desires to acquire the leasehold interest and improvements pertaining to the realty for the Project with $59,370 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 acquisition of property, which includes the leasehold interest and improvements pertaining to the realty of General Parts, Inc. dba Carquest Auto Parts for public improvements provided by the Project. NOW, THEREFORE, the Redevelopment Agency of the City of Santa Clarita does hereby resolve as follows: SECTION 1. Recitals. The Agency Board after consideration of the Agenda Report, staff presentation, discussion, oral testimony and evidence presented at the public meeting on January 27, 2009 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 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 acquisition of the property, including improvements pertaining to realty to allow for construction of 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 $59,370 to acquire the leasehold interest and improvements pertaining to the realty of General Parts, Inc. dba Carquest Auto Parts and located at 24535 Main Street, Santa Clarita, California 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 27th day of January, 2009. AGENCY CHAIR ATTEST: AGENCY SECRETARY 3 -la STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, 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 27th day of January, 2009, by the following vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: AGENCY SECRETARY 3-1 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF REDEVELOPMENT AGENCY RESOLUTION I, Sharon L. Dawson, Agency Secretary of the Redevelopment Agency of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. RDA , adopted by the Redevelopment Agency of the City of Santa Clarita, California on January 27, 2009, which is now on file in my office. Witness my hand and seal of the Redevelopment Agency of the City of Santa Clarita, California, this day of , 20_. Sharon L. Dawson, MMC Agency Secretary By Susan Caputo, CMC Deputy Secretary