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HomeMy WebLinkAboutRDA Res 06-03 2006-03-13 RESOLUTION NUMBER 06-03 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH APPROVING PAYMENT BY THE REDEVELOPMENT AGENCY FOR THE COST OF THE ACQUISITION AND IMPROVEMENT OF PROPERTY CONTAINING STRUCTURES INCLUDING CHILDCARE FACILITIES TO BE OWNED BY THE CITY I RECITALS A. The Los Alamitos Unified School District is the owner of land and improvements ("Property") commonly known as 343 and 357 - 12th Street, Seal Beach, Califomia 90740, more particularly described as Parcel 2 on Parcel Map 87-131, as per map recorded in Book 233, Pages 15, 16 and 17 of Parcel Maps, in the Office of the Orange County Recorder. B. The Los Alamitos Unified School District is leasing the Property to the City of Seal Beach ("City") by a Lease dated January I, 1987 (the "Lease''). Section 13.2 of the Lease contains an option in favor of the City to purchase the Property (the "Purchase Option"). C. The City desires to exercise its Purchase Option. D. Pursuant to provisions of the Community Redevelopment Law, the Agency desires to pay the costs of the City's acquisition and improvement of the Property. I E. The Property is currently improved with two structures containing chiIdcare facilities. The City may install and construct additional publicly owned structures on the Property. The Property will be owned by the City, and will benefit the River Beach Project Area by helping to remove blighting influences, retaining childcare facilities available to City residents, including low and moderate income families in the Projeet Area, and creating additional educational and recreational services for such residents and families. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS: 1. Pursuant to provisions of Health and Safety Code ~ 33000, e(seq., and in particular ~ 33445, the Agency proposes to pay the purchase price of $679,000 (which may be adjusted in the event rent is paid for the period in 2006 prior to the closing date) and other funds necessary in order for the City to purchase and improve the Property. I 2. Due to budget considerations of the City, the cost of the Property and certain improvements thereto have been allocated to the Agency. No other reasonable means of financing the acquisition of the Property, or any future improvements thereon, are available to the community. The budget constraints of the City and the extraordinary voter approval requirements applicable to traditional methods of financing (such as general obligation bonds and community facilities district special tax bonds) as a practical matter prevent the City from financing the purchase of the Property and improvement thereof by any other means. No moneys of the City were, are or are reasonably expected to be available on a long-tenn basis under the budget of the City to now pay for the cost of the purchase and improvement of the Property. Traditional methods of financing such as the issuance of general obligation bonds 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 benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Resolution Number 06-03 3. Staff has prepared a summary report, attached hereto as Exhibit A and incorporated by this reference. The Agency Board hereby finds and determines that all of the facts, findings and determinations set forth in the summary report are true and correct. 4. The Agency Board hereby finds and determines that based upon the foregoing, the summary report, and all other information presented at the joint public hearing, including the staff report and other documents presented by the staff: (i) the Property, including childcare facilities and future improvements, is of benefit to the Project Area and to the immediate neighborhood in which the Property is located; (ii) no other reasonable means of financing the purchase and improvement of the Property is available to the City; (iii) the payment of funds for the acquisition and improvement of the Property will assist in the elimination of one or more blighting conditions inside the Project Area; and (iv) the Agency's payment of up to $700,000 of its funds, plus closing costs, for the purchase price of the Property, and payment of costs related to improving the Property, are each consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490. I 5. The Agency Board hereby approves the Agency's payment for the cost of the Property in an amount not to exceed $700,000, plus closing costs, and payment of all or a part of the cost to improve the Property, estimated at $1,000,000. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Seal Beach this 13th day of March, 2006 by the following vote: AYES: AgenCYMembers_~i1~J dCh/.J./)n(~J '"fttJtn)j~~;I- NOES: Agency Members ~.J ABSENT: Agency Members ~.J ABSTAIN: Agency Members X]iJnl I ATTEST: 1A;~~ C~/~I Agency Secretary STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, Agency Secretary of the Redevelopment Agency of the City of Seal Beach, California, do hereby certify that the foregoing Resolution is the original of Resolution Number 06-03 , on file in the office of the City Clerk, passed, approved, and adopted by the Redevelopment Agency of the City of Seal Beach at a meeting thereof held on the 13th day of March , 2006. I ~ Vf/}zhv Agency Secretary -, Resolution Number 06-03 Exhibit A I SUMMARY REPORT REGARDING PAYMENT BY THE SEAL BEACH REDEVELOPMENT AGENCY FOR THE COST OF THE ACQUISITION AND IMPROVEMENT OF PROPERTY INCLUDING A CHILDCARE FACILITY OF BENEFIT TO THE RIVERFRONT PROJECT AREA The Los Alamitos Unified School District, as landlord and the City of Seal Beach, as tenant, entered into a lease/purchase option agreement dated January 1,1987 ("Lease") for the portion of the former Zoeter School site commonly known as 343 and 357 12th Street, Seal Beach, California 90740, more particularly described as Parcel 2 on Parcel Map 87-131, as per map recorded in Book 233, Pages 15, 16 and 17 of Parcel Maps, in the Office of the County Recorder of Orange County ("property"). The property is improved with two structures, including one housing day care facilities, and parking. The term of the Lease commenced on the 151 of day of January 1987 and will expire on the 31" day of December 2011, unless terminated prior to that date. I Article XIII of the Lease granted the City an option to purchase the property. It provides that the City may exercise the option to purchase at any time during the term of the Lease by providing the School District a written notice of the exercise of the option. If the City exercises the option to purchase, the Lease requires the transfer of title and the payment of the purchase price to occur within thirty days after the option to purchase is exercised. The City's exercise ofthe option will terminate the Lease. Estimate of the Amount of Taxes Prooosed to be Used for Purchase of the Prooertv and Improvement Thereto The Redevelopment Agency of the City of Seal Beach ("Agency") established the Riverfront Project Area in 1969. The Agency proposes to pay for the purchase of the property, and certain improvements thereto, pursuant to proposed resolutions of the City Council and Agency Board. The City has leased the subject property since 1987 under the Lease that includes a purchase option with the Los Alamitos Unified School District. The City is currently subleasing the property to a childcare facility operator. The City is considering exercising the option for the purchase price of $679,000 subject to a credit for prorated rent paid for 2006, using funds recently acquired by the Agency upon its sale of adjacent property. The amount of Agency funds used may exceed that amount. In addition, staff is proposing that the property be improved, at an estimated cost of $1,000,000. Agency funds will be used to pay all or a portion of the cost to improve the property. The property and the childcare facility and parking lot constructed thereon (collectively "Facilities") and any future improvements will be owned by the City of Seal Beach. Facts Supporting Determinations I The Facilities are of benefit to the project area and the immediate neighborhood in which the project is located. 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, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. The project area is characterized by the existence of inadequate public improvements and public facilities, including childcare facilities and open space that carmot be remedied by private or govemmental action without redevelopment. Resolution Number 06-03 No other reasonable means of financing the acquisition of the land on which the Facilities are located, or any future improvements thereon are available to the community. The budget constraints of the City and the extraordinary voter approval requirements applicable to traditional methods of financing (such as general obligation bonds and community facilities district special tax bonds) as a practical matter prevent the City from financing the purchase and improvement of the Facilities by any other means. No moneys of the City were, are or are reasonably expected to be available on a long-term basis under the budget of the City to now pay for the cost of the purchase and improvement of the Facilities. Traditional methods of financing such as the issuance of general obligation bonds 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 benefiting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. I The acquisition of the Facilities and construction of future improvements are consistent with the Agency's implementation plan. Redevelopment Pumose; Elimination of Blight The payment of funds for the acquisition of the Facilities or other improvements will assist in the elimination of one or more blighting conditions inside the project area. The Facilities will serve a basic purpose of redevelopment; redevelopment includes the provision of structures and spaces as may be appropriate or necessary in the interest of the general welfare. In addition. a fundamental purpose of redevelopment is to expand employment opportunities and to provide an environment for the social, economic and psychological growth and well being of all citizens. The Facilities will provide childcare opportunities for working parents, including those of low and moderate income. The Facilities will serve the residents and taxpayers of the project area and assist in the elimination of conditions of blight within the project area. This in turn assists in eliminating a factor that prevents or substantially hinders the economically viable use or capacity of buildings or lots and will encourage private sector investment in the project area, thereby facilitating the redevelopment of the project area. I I