HomeMy WebLinkAboutCC Res 6151 2011-06-27RESOLUTION NUMBER 6151
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
CONSENTING TO AND APPROVING PAYMENTS BY THE SEAL
BEACH REDEVELOPMENT AGENCY FOR THE VALUE OF A
SEWER EASEMENT AND FEE TITLE TO CERTAIN PROPERTY
FOR OPEN SPACE AND IN CONNECTION WITH THE CITY'S
REFURBISHMENT AND IMPROVEMENT OF ITS RIVER'S END
STAGING AREA AND SAN GABRIEL RIVER BIKE TRAIL
RECITALS:
A. Bay City Partners LLC, ( "Bay City ") owns vacant land (the
"Property ") located between 1 St Street and the San Gabriel River, and between
Marina Drive and the City beach in the City of Seal Beach. Previously, the Los
Angeles Department of Water and Power owned the property and operated a
power plant thereon. The Property is located within the Riverfront
Redevelopment Project Area and the DWP Specific Plan area. Bay City
proposes to develop the Property with single - family homes (the "Proposed
Residential Project ") on the northerly portion of the Property. State law and the
City's Charter and Municipal Code require Bay City to obtain land use and other
entitlements and permits from the City and other agencies including a coastal
development permit ( "CDP ") from the California Coastal Commission in
connection with its Project. The remaining portion of the Property lies generally
and largely south of the westerly prolongation of the southern right -of -way
boundary of Central Way and is referred to herein as the "Open Space." The
City's Specific Plan for the Property defines the open space uses as "Public
parks, green belts, bike trails, nature trails, hiking trails, and any passive
recreational uses normally located in parks or open spaces." The
Redevelopment Plan for the Riverfront Redevelopment Project designates the
open space area as parkland. The Redevelopment Agency's 5 year
implementation plan contains, inter alia, the goals that the Agency will "assist in
the redevelopment of the former Los Angeles Department of Water and Power
(DWP) site" and "Increase parks and recreation opportunities that leads to
increased economic activity."
B. The City of Seal Beach (the "City ") seeks to refurbish and improve
its River's End Staging Area and San Gabriel River Bike Trail (the "River's End
Project "). Much of the River's End Project is located on property adjacent to the
southwesterly and southerly boundaries of the Property. A segment of the bike
trail that is part of the River's End Project crosses onto the Property along the
San Gabriel River at the Property's westerly property line (the "Bike Trail
Parcel ").
C. The City and Bay City engaged in litigation including a complaint in
eminent domain filed by the City seeking to acquire two portions of the Property:
(1) The "Driveway," a public access roadway from First Street and Ocean
Avenue to the public parking lot that serves the River's End Project and
maintains public access to the public beach, the Pacific Ocean, Windsurfer Park,
the First Street beach parking lot, and the River's End Cafe; and (2) The "Sewer
Parcel," a sewer maintenance area to maintain an existing City sewer line.
Pursuant to the California Environmental Quality Act, Bay City filed a writ of
mandate challenging the City's issuance of a mitigated negative declaration for
the River's End Project. The City incurred substantial litigation costs, including
attorneys' fees, consultant and expert witness costs, mediation costs and court
costs, in connection with the litigation. For the fiscal year 2010 -11, those costs
are not less than $300,000.
Resolution Number 6151
D. To resolve all disputes and litigation between the parties, Bay City,
the City and the Redevelopment Agency of the City of Seal Beach (the
"Agency "), entered into a Settlement Agreement and Mutual Release (the
"Agreement ").
E. Pursuant to the Agreement, the City paid $900,000 to Bay City and,
in exchange, Bay City conveyed to the City an irrevocable easement for the
Sewer Parcel for sewer access, construction and maintenance purposes. In
addition, Bay City leased to the City the Driveway and the Bike Trail Parcel,
which enables the City to install its improvements to the Driveway and the Bike
Trail.
F. Pursuant to the Agreement, in the event the City approves the
Proposed Residential Project and the Coastal Commission issues a CDP to Bay
City for the Proposed Residential Project, the City will pay to Bay City the amount
of $1,100,000 and Bay City, in exchange, will convey to the City fee title to (1)
Open Space for future open space and park uses, which consists of all of the
land south of the westerly prolongation of the southern right -of -way boundary of
Central Way, except ±1,200 square feet of land within the Proposed Residential
Project area south of the westerly prolongation of the southern right -of -way
boundary of Central Way; (2) the Driveway; (3) the Sewer Parcel; and (4) the
Bike Trail Parcel.
G. If the Coastal Commission does not issue a CDP to Bay City for the
Proposed Residential Project, or the City does not approve the Proposed
Residential Project, the parties shall have no obligations as described in
paragraph F, above.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL HEREBY
FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1 . Pursuant to provisions of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et seq.) (the "Redevelopment
Law "), and in particular Section 33445 thereof:
A. The Agency shall reimburse the City $1,200,000 for the cost of
acquiring the irrevocable easement for the Sewer Parcel as
described in Recitals C -E, above (the "Easement "); and
B. In the event the City becomes obligated under the Agreement to
pay Bay City $1,100,000 for the cost of acquiring fee title to: the
Open Space; the Driveway; the Sewer Parcel; and the Bike Trail
Parcel, as described in Recital F above (collectively, the "Parcels "),
the Agency shall reimburse the City for such payment, or make
such payment on behalf of the City.
Section 2 . The City acquired the Easement through a short-term
borrowing from the City's sewer enterprise fund; however, pursuant to prior
understandings of the Agency and City, the cost of acquiring the Easement has
been allocated to the Agency. Except for the funds advanced by the City from
the sewer enterprise fund (which must be repaid and used for the installation of
capital improvements to the sewer system), no funds of the City were, are, or are
reasonably expected to be, available on a long -term basis under the budget of
the City to pay for the cost of acquiring the Easement or the Parcels. Traditional
methods of financing such as the issuance of general obligation bonds by the
City are unavailable as a practical matter because of the extraordinary majority
voter approval requirements of two - thirds of the electorate. Assessment
financing or special tax financing could overburden benefitting properties with
assessments or special taxes which would be added to existing taxes and
assessments, and, in addition, special taxes and assessments require voter or
property owner approval.
Resolution Number 6151
In April 2005, the City successfully applied to the Rivers and Mountain
Conservancy for a grant to help fund the River's End Project. However, this
grant will be used to finance the improvements to the River's End Project and is
not available to fund any costs associated with the acquisition of the Easement or
the Parcels.
Section 3. The Property, including the Open Space, Driveway, the Sewer,
and Bike Trail Parcels, and portions of the River's End Project are located within
the Riverfront Redevelopment Project Area (the "Project Area "). Acquisition of
the Sewer Easement is necessary to provide service to property within the
Project Area. The Bike Trail Parcel is required to complete the San Gabriel River
bike trail. The Driveway is required to maintain public access to the public
beach, the Pacific Ocean, Windsurfer Park, the First Street parking lot, and the
River's End Cafe. The sewer within the Sewer Parcel provides service to the
buildings within the River's End Project and will provide service to buildings and
facilities within the Project Area. The Open Space is located within the Project
Area and is designated as parkland in the applicable Specific Plan and the
Redevelopment Plan.
The River's End Project and the proposed park will serve the residents
and taxpayers of the City, including the Project Area. The Project Area is an
area in which the combination of conditions of blight is so prevalent and so
substantial that it causes a reduction of, or lack of, proper utilization of the area to
such an extent that it constitutes a serious physical and economic burden on the
City which cannot reasonably be expected to be reversed or alleviated by private
enterprise or governmental action, or both, without redevelopment. Among other
things, the Project Area contains vacant and underutilized properties and
properties which suffer from economic dislocation, deterioration or disuse,
including depreciated or stagnant property values and impaired investments, and
deteriorated, aged and obsolete buildings. In addition, the Project Area is
characterized by the existence of inadequate open space and public
improvements and public facilities, including recreational facilities, which cannot
be remedied by private or governmental action, or both, without redevelopment.
The lack of adequate open space and public improvements and facilities hinders
economic development opportunities and contributes to the existence of
depreciated and stagnant property values and impaired investments in the
Project Area.
The River's End Project and the proposed park will assist in remedying a
lack of adequate open space and public improvements and facilities and will
thereby encourage private sector investment in the Project Area, thereby
facilitating and accelerating the redevelopment of the Project Area. The River's
End Project will assist in eliminating factors which prevent or substantially hinder
the economically viable use or capacity of buildings or lots, assist the
revitalization of the Project Area, help to reverse depreciated or stagnant
property values and impaired investments, encourage private sector investment,
create job opportunities, promote the economic viability of businesses in the
Project Area, attract new businesses, assist in retaining existing businesses, and
encourage business expansion, thereby facilitating the redevelopment of the
Project Area, all for the health, safety and welfare of the residents, businesses,
and taxpayers of the Project Area.
The River's End Project and proposed park will serve a basic purpose of
redevelopment; which includes the provision of structures as may be appropriate
or necessary in the interest of the general welfare, including recreational and
other facilities. In addition, a fundamental purpose of redevelopment is to
provide an environment for the social, economic and psychological growth and
well -being of all citizens. The River's End Project and the proposed park will
serve the human need for fresh air, sunlight, physical exercise, recreation and
social interaction and psychological release, contributing to the well -being of the
community.
Resolution Number 6151
Section 4 . The City Council hereby finds and determines that based upon
the foregoing and other information presented to the City (i) the acquisition of the
Easement and the Parcels are of benefit to the Project Area by helping to
eliminate blight within the Project Area; (ii) the payment of funds by the Agency
for the acquisition of the Easement and the Parcels is consistent with the
Agency's implementation plan adopted pursuant to Health and Safety Code
Section 33490; and (iii) no other reasonable means of financing the acquisition of
the Easement or the Parcels are available to the City.
Section 5 . In accordance with Section 1A, the Agency shall pay to the
City the sum of $1,200,000 ( "City Advance ") together with interest accruing
thereon at the compound annual rate of 6% from the date of adoption of this
Resolution to the date of such payment from (i) tax increment generated in the
Project Area and eligible to be allocated to the Agency pursuant to the
Redevelopment Law, or to any successor agency or entity of the Agency and /or
any entity established by law to carry out the redevelopment plan for the Project
Area and /or expend tax increment or pay indebtedness of the Agency;
(ii) available proceeds of tax allocation bonds or other obligations of the Agency;
(iii) available proceeds from loans or other obligations which constitute
indebtedness of the Agency repayable from tax increment (as described in the
foregoing clause (i); or (iv) any other available funds of the Agency.
The Agency shall make such payments, including compounded annual
interest accrued on the City Advance from the date of adoption of this Resolution
pursuant to the Loan Amortization Schedule attached hereto as Attachment A
and incorporated by this reference.
Payments shall be applied first to accrued interest and then to principal.
In any event, the Agency hereby agrees that all amounts due hereunder,
including all outstanding principal and accrued interest, shall be due and payable
to the City by the date established in the redevelopment plan for the Project Area
as the time limit for the repayment of indebtedness.
Section 6 . Pursuant to Section 113, in the event the City becomes
obligated under the Agreement to pay Bay City $1,100,000 for the cost of
acquiring fee title to the Parcels, the Agency shall, within a reasonable time after
receipt of an invoice by the City seeking reimbursement or payment by the
Agency, pay to or on behalf of the City all amounts due thereunder from (i) tax
increment generated in the Project Area and eligible to be allocated to the
Agency pursuant to the Redevelopment Law, or to any successor agency or
entity of the Agency and /or any entity established by law to carry out the
redevelopment plan for the Project Area and /or expend tax increment or pay
indebtedness of the Agency; (ii) available proceeds of tax allocation bonds or
other obligations of the Agency; (iii) available proceeds from loans or other
obligations which constitute indebtedness of the Agency repayable from tax
increment (as described in the foregoing clause (i)); or (iv) any other available
funds of the Agency. Amounts not paid by the Agency to the City within 30 days
of receipt of an invoice therefor shall bear interest at the rate then paid to the City
on its funds invested in the Local Agency Investment Fund ( "LAIF "), plus one and
one -half percent per annum from the date of such invoice to the date of
repayment. Payments shall be applied first to accrued interest and then to
principal. In any event, the Agency hereby agrees that all amounts due
hereunder, including all outstanding principal and accrued interest, shall be due
and payable to the City by the date established in the redevelopment plan for the
Project Area as the time limit for the repayment of indebtedness.
Section 7 . The obligations of the Agency shall constitute an
indebtedness of the Agency for the purpose of carrying out the redevelopment
plan for the Project Area. The Agency's obligation to pay to or for the benefit of
the City all amounts due hereunder, shall, without the necessity of further action
by the Agency or the City, be junior and subordinate to all other obligations or
indebtedness heretofore or hereafter voluntarily incurred by the Agency,
Resolution Number 6151
including bonds or loans secured by a pledge of tax increment revenues derived
from the Project Area, and to all pre - existing statutory obligations of the Agency
pursuant to Sections 33607.5, 33607.7 or 33676 of the Redevelopment Law.
Section 8 . The City Council hereby consents to and approves payment by
the Agency in accordance with the terms set forth herein. The City Council
hereby directs the City Manager and /or other authorized officers to take such
actions, perform such deeds and execute, acknowledge and deliver such
instruments and documents as such officer deems necessary in connection with
the payments required pursuant to this Resolution. Any such previous payments,
actions, deeds, execution, acknowledgment or delivery are hereby ratified. Any
moneys paid or to be paid initially by the City for the costs described herein will
constitute loans of such moneys by the City to the Agency.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 27th day of June , 2011 by the following vote:
AYES:
Council Members 17'YA" , S = VJAW &
NOES:
Council Members
ABSENT:
Council Members ' r
ABSTAIN:
Council Members �>
Mayor
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6151 on file in
the office of the City Clerk, passed, approved, and adopted by the Seal Beach
City Council at a regular meeting held on the 27th day of June , 2011.
W IN 19 1 __ 11 0 &Z -1, 1
Resolution Number 6151
Exhibit A
Loan Amortization Schedule
W N Z
0 3
3
M
� rt
N N N p
0 C) o C
AWN (D
,4 ODN
C 0 0 p !C
O O D
7 �
A N O N
A 4 N
CO OD OD a �
W W j 1< C
a
V V -I M
OD 00 CO rt a
D
(D rt
4. C
W 00 00
CA CO CO
OW 3
Cn v v CD
A OD OD rt
CO W v
0 (D p -
cD ti � n
DODO
0
( (�D N
W O
OD c, rt
N
N O O
W CD O H
40
A O
N N
W W W
(n Q O m
Op. ? C C
O W N —
O A N A 3
(D (C
Iw
N V C
O)�N C
(VD 000 a
C_
Cn ? O
W ( C)
r
7
CL
D
3
M
r
0
O
3
O
Q
O
N
n
S
O
CL
C
n
3
D CD
n O.
C CD
O O_
7 7 (n
O C C 0
0 3 3 3
Q a
o o o (D
° -, 0 o Q
0
m m m 3
N 7 7 7 CD
ur 3
u �0
A 7
O W C
10 "3
41 V 0
W W W CO J
O
1
1
1
Z
C
3
O
r
O
N p Q
7
x
3 a
o
O
3
7
fl p'
(D U Q
O
(D 7
3
O (D 7
(D O
j
N p
C
7 Z
�
N
4
N
O
7
`
a
O
K)
O
O
t
C
r
0
O
3
O
Q
O
N
n
S
O
CL
C
n
3
D CD
n O.
C CD
O O_
7 7 (n
O C C 0
0 3 3 3
Q a
o o o (D
° -, 0 o Q
0
m m m 3
N 7 7 7 CD
ur 3
u �0
A 7
O W C
10 "3
41 V 0
W W W CO J
O
1
1
1