HomeMy WebLinkAboutResolution - OB 12-09 STATE OF CALIFORNIA ) RESOLUTION NO. OB 12-09
COUNTY OF RIVERSIDE )ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE DISSOLVED SAN JACINTO REDEVELOPMENT
AGENCY APPROVING THE SUCCESSOR AGENCY'S PROPERTY
DISPOSITION POLICY
WHEREAS, pursuant to Health and Safety Code section 34173(d), the City of
San Jacinto ("Successor Agency") is the successor agency to the dissolved San Jacinto
Redevelopment Agency ("RDA"), confirmed by Resolution No. 3408 adopted on
January 9, 2012; and
WHEREAS, pursuant to Health and Safety Code section 34179(a), the
Oversight Board is the oversight board to the Successor Agency; and
WHEREAS, Pursuant to Health and Safety Code section 34177(e), the
Successor Agency is required to dispose of the assets and properties of the RDA, as
directed by the oversight board;
WHEREAS, ABx1 26 and AB 1484 require that the disposition of RDA properties
occur in an expeditious manner that also maximizes value, but provides no guidance as
to how the properties are to be sold or any specific procedures to be followed; and
WHEREAS, in order to provide guidelines for the disposition of the RDA's
properties, the Successor Agency has adopted a Property Disposition Policy to
establish general procedures for the disposition of these properties, which will help
ensure value is maximized while avoiding a negative community impact; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, BE IT RESOLVED, ordered, and determined by the
Oversight Board to the Successor Agency to the dissolved San Jacinto Redevelopment
Agency:
SECTION 1. Recitals. The Recitals preceding this Resolution are true and
correct and are incorporated into this Resolution.
SECTION 2. Approval of Property Disposition Policy. The Oversight Board
hereby approves the Property Disposition Policy, which is attached hereto as Exhibit A
and incorporated herein by reference.
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SECTION 3. Certification. The City Clerk of the City of San Jacinto, acting on
behalf of the Oversight Board as its Secretary, shall certify to the adoption of this
Resolution.
SECTION 4. Effective Date. Pursuant to Health and Safety Code Section
34179(h), all actions taken by the Oversight Board may be reviewed by the State of
California Department of Finance, and, therefore, this Resolution shall not be effective
for five (5) business days, pending a request for review by the State of California
Department of Finance.
MOVED, PASSED AND ADOPTED on the 24th day of August, 2012, by the
following vote:
AYES: Elam, Hereen, Hults, Paisley, Prill, Frontino
NAYS: None
ABSENT: Turner
ABSTAIN: None
Fred Frontino, Chairperson
ATTEST:
r
Richard Miller, Oversight Board Secretary
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EXHIBIT A
PROPERTY DISPOSITION POLICY
(Attached behind this cover page)
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CITY OF SAN JACINTO, AS SUCCESSOR AGENCY TO THE
DISSOLVED SAN JACINTO REDEVELOPMENT AGENCY
PROPERTY DISPOSITION POLICY
INTRODUCTION
With the recent dissolution of the San Jacinto Redevelopment Agency ("RDA"), the
City of San Jacinto, as Successor Agency to the dissolved San Jacinto
Redevelopment Agency ("Successor Agency"), is required to dispose o ' certain
property assets of the former Redevelopment Agency in an expeditious manner
while maximizing value. There are some restrictions on the sale of property that must
be considered as part of this process. As such, the intent of this Policy is to establish
general procedures for the disposition of said properties that will help ensure value is
maximized while avoiding a negative community impact.
BACKGROUND
Since its inception in 1952, the California Redevelopment Law allowed cities and
counties to form redevelopment agencies with special powers to eradicate blighting
conditions in urban areas. These special powers included the ability to assemble and
sell property to private parties.
In order to effectuate the redevelopment agency's goals, property was often acquired
in an effort to eliminate social and economic blight and facilitate the property's re-use
in a beneficial manner to the community.
As Successor Agency, the City of San Jacinto is now responsible for winding down
the affairs of the RDA, including the disposition of assets and properties of the RDA.
Assembly Bill X1 26 (AB 26) requires that disposition occur in a manner that maximizes
value. These properties are being sold as directed by AB 26 and not pursuant to
the traditional city or redevelopment agency processes for disposing of property.
The former redevelopment agency properties are not considered surplus, so
Government Codes 54220, et seq. regarding surplus property disposition do not
apply. Likewise, the provisions for disposition of property under the California
Redevelopment Law also do not apply.
Given the large number of properties in the RDA's portfolio, it is important that the
disposition occur in an orderly and strategic manner in order to ensure value is
retained and prevent any negative impact on the community. A number of methods
can be considered in the process for disposition and, in order to aid in this process,
this Policy has been prepared to give general parameters for consideration.
This Policy has been prepared in a manner to allow for flexibility in property
disposition to maximize value, prevent re-establishment of blight, and maximize
resources by utilizing any or all of the disposition methods set forth in Sections 2
through 5 below on a case-by-case basis.
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1 . PRELIMINARY DISPOSITION STEPS
1 .1 In order to effectuate the disposition of the properties, it is anticipated
that the following preliminary actions will be taken:
1.1 .1 Parcel Consolidation: Many RDA properties are comprised of
multiple small parcels. In many cases, the individual parcels are
much smaller than the minimum lot size required for
development. On a case-by-case basis, staff will proceed with
parcel mergers, as necessary, to increase value, improve
marketability, and streamline the resale of the properties.
1 .1 .2 Preliminary Title Reports: Staff will order preliminary title reports
to identify issues that may affect the condition or marketability of
title, such as easements, covenants, conditions and restrictions,
and outstanding liens.
1 .1.3 Appraisals: On a case-by-case basis, staff will order independent
third party appraisals to identify fair market value for each
property.
2. STAFF MARKETING
2.1 Staff will market the properties in one or more of the following ways:
(a) Place the property on multiple real estate listing services.
(b) Create a marketing flyer for the property.
(c) Place "for sale" signs on the property.
(d) Depending on the property, additional customized marketing
may be utilized such as direct mailing and internet listings.
2.2 Should a purchase offer be received through the staff marketing
process, staff will present the purchase offer to the Successor Agency
and Oversight Board for approval.
2.2.1 A potential buyer will be recommended based on the following:
(a) Purchase price and proposed use.
(b) Cost of sale to include commissions, testing, and
inspections.
(c) Demonstration of relevant project experience (if
applicable).
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(d) Community benefit (i.e. elimination of social and
economic blight through job and sales tax creation). It is
anticipated that development of the properties in a
manner to provide community benefit will also support the
goal of maximizing price and value through higher quality
projects that require a higher investment.
(e) Proposed project's conformance with City zoning, specific
plans, general plan, or ability to amend.
(f) Financial strength and capability of the buyer.
2.3 Once a buyer has been initially approved by the Successor Agency,
staff will present the following deal points to the Oversight Board for
final approval and inclusion in a Purchase and Sale Agreement:
(a) Scope of development.
(b) Purchase price and proposed use.
(c) Deposit requirement (anticipate a minimum of 2-3% of
purchase price).
(d) Due diligence period.
(e) Schedule of Performance to include the following key
milestones:
(i) Submitting Planning application.
(ii) Obtaining entitlements (if applicable).
(iii) Covenants and restrictions (if applicable).
(iv) Closing escrow.
2.4 After approval from the Successor Agency and Oversight Board, staff
will develop a purchase and sale agreement with the selected buyer.
3. REQUEST FOR PROPOSALS
3.1 Solicit property purchase proposals through a competitive Request for
Proposal (RFP) process. This method permits the Successor Agency
to identify and engage the most qualified and experienced buyer and
sets parameters for purchase in a way to encourage maximum
reinvestment in the property and long term benefit to the enforceable
obligation holders and taxing entities.
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3.1.1 The RFP process will allow the Successor Agency to identify a
buyer with the necessary experience and financial capacity to
complete the purchase and subsequent development of the
property and prevent further damage to the community through the
elimination of social and economic blight.
3.1.2 A direct sale at the conclusion of the RFP process will afford the
community a measure of control regarding the development of
the property and ensure that it is consistent and compliant with
all applicable City zoning and general plan designations.
3.1.3 Fair market value will be included in the RFP based on an
independent third party appraisal.
3.1.4 It is the Successor Agency's goal to sell the property at the
highest value; however, all purchase proposals will be considered
based on the scope of the proposed property development and the
tong term value it provides. This long term value may provide
additional benefit to the enforceable obligation holders, the taxing
entities and community, but will need to be evaluated on a case-by-
case basis.
3.2 Purchase proposals will be presented to the Successor Agency and
Oversight Board in accordance with Sections 2.2.1 and 2.3.
3.3 A Purchase and Sale Agreement will be developed in accordance with
Section 2.4.
4. UNSOLICITED OFFERS
4.1 Should an unsolicited property purchase offer be received, which is not
in response to any formal or informal request, staff will have the ability
to take the purchase proposal directly to the Successor Agency and
Oversight Board for approval.
4.2 Purchase offers will be presented to the Successor Agency and
Oversight Board in accordance with Sections 2.2.1 and 2.3.
4.3 A Purchase and Sale Agreement will be developed in accordance with
Section 2.4.
5. BROKER SOLICITATION
5.1 For more challenging properties which have not received a purchase
proposal via the aforementioned disposition methods, staff may
engage a broker to market the property. Individual properties
recommended for disposition by broker will be brought to the Successor
Agency and Oversight Board for approval.
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5.2 Broker commission will be determined on a case-by-case basis
depending upon the individual property and market conditions.
5.3 Should a purchase offer be received as a result of the broker
marketing, staff will present the purchase offer to the Successor Agency
and Oversight Board for approval.
5.4 Purchase offers will be presented to the Successor Agency and
Oversight Board in accordance with Sections 2.2.1 and 2.3.
5.5 A Purchase and Sale Agreement will be developed in accordance with
Section 2.4.
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