The URL can be used to link to this page

Home My WebLink AboutAGENDA REPORT 2021 0407 CCSA REG ITEM 09DCITY OF MOORPARK,  CALIFORNIA City Council Meeting of April 07, 2021 ACTION Unanimous Consensus to Receive and File the Update (Councilmembers Castro and Groff Recused). BY B.Garza. D. Consider Update on Disposition of Housing Assets and Economic Development Properties of the Former Redevelopment Agency. Staff Recommendation: Receive and file report. (Staff: Jessica Sandifer) Item: 9.D. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jessica Sandifer, Community Services Manager DATE: 04/07/2021 Regular Meeting SUBJECT: Consider Update on Disposition of Housing Assets and Economic Development Properties of the Former Redevelopment Agency SUMMARY Staff is providing an update on the process of disposing of the housing assets of the former Redevelopment Agency. BACKGROUND The Redevelopment Agency of the City of Moorpark (“Redevelopment Agency”) was dissolved on February 1, 2012. Pursuant to Health and Safety Code Section 34176(a), the City Council of the City of Moorpark (“City”) could elect to assume the functions of the former Redevelopment Agency and could separately elect to assume the housing functions, duties, and obligations of the former Redevelopment Agency and become the Successor Housing Agency. On January 4, 2012, the City Council adopted Resolution No. 2012-3079, which confirmed the City’s election to serve as the Successor Agency of the former Redevelopment Agency as well as the Housing Successor Agency. One of the first requirements of the Successor Agency was to work with the State Department of Finance (DOF) on preparation and approval of a Long Range Property Management Plan (LRPMP). The LRPMP outlined those properties of the former Redevelopment Agency that could be retained by the City for governmental uses, and those properties that needed to be disposed of. Under the LRPMP, there were five properties listed as retain for economic development, that were to be disposed of. When the City elected to become the Housing Successor, the City retained the housing assets of the former Redevelopment Agency. Under prior Redevelopment Law (HSC Section 33334.16), former redevelopment agencies were required to initiate activities for the development of properties purchased with Low-Mod Redevelopment Housing Funds Item: 9.D. 351 Honorable City Council 04/07/2021 Regular Meeting Page 2 for affordable housing purposes within five years of their purchase. The Redevelopment Law allowed for one five-year extension of that timeline. When the former Redevelopment Agency was dissolved in February 2012, the Redevelopment Dissolution law re-set the five-year disposition timeline for the Successor Housing Agency properties to commence on the date that the Housing Asset list was approved by the State Department of Finance (DOF), which was August 12, 2012. The Dissolution law allowed for one five-year extension of the timeline, which the Successor Housing Agency exercised in 2017. The current deadline is now August 12, 2022. If physical development (i.e., grading, construction, etc.) of the properties for their intended purpose (affordable housing) has not begun by the deadline (August 12, 2022), then the Successor Housing Agency will be forced to sell the properties. Assembly Bill 1486 (“AB 1486”), effective January 1, 2020, revised the California Surplus Land Act (Govt. Code Sect. 54220 et seq.) (“Act” or “SLA”) to expand and clarify certain requirements regarding the disposition of surplus property. For the LRPMP properties, there was an exemption in the SLA for those properties still held by the Successor Agency, that if an enforceable Exclusive Negotiating Agreement or other document were in place prior to December 31, 2020, those properties would be exempt from complying with the SLA. If a housing asset property is required to be sold because physical development will not begin by the deadline or if it will be sold for a use other than affordable housing, then the Surplus Land Act will apply to these properties. When selling a property pursuant to the SLA, the City Council, in its capacity as Successor Housing Agency will need to declare the properties surplus land (or exempt surplus land), and if the properties are surplus land, prepare and send a written notice of availability of the properties to housing entities/developers and other specified entities allowing offers/proposals to be submitted within a period of 60 days. The Surplus Land Act also requires that the City negotiate in good faith for a period of up to 90 days with any respondents that timely submitted a proposal/offer to acquire the property for a use authorized by the Act. Once the requirements of the Act are completed and if the City Council does not agree to price and terms with a responding entity, or if NO designated entity shows interest in the properties by responding to the City’s notice of availability, the City would be free to place the property on the open market. In either case, AB 1486 provides that if the surplus land is developed with 10 or more residential units, not less than 15 percent of the total units must be available to lower income households at an affordable cost or rent. This requirement must be contained in a covenant or restriction recorded against the property prior to land use entitlement of the property and would apply to any future development on the property. DISCUSSION There were five properties on the LRPMP, one of which is the future Daly Group project, the remaining four are highlighted in the table below. Prior to its dissolution the Redevelopment Agency purchased 22 properties with funds from the Low and Moderate 352 Honorable City Council 04/07/2021 Regular Meeting Page 3 Income Housing Fund (Housing Asset Properties). These properties were purchased with the intent that they be developed for affordable housing purposes through sales to non-profit or for profit developers. Five of the properties have been sold and developed into 25 units of affordable housing. The City, as Successor Housing Agency, still retains ownership of 17 parcels. Currently, the City has marketed two of the LRPMP properties and is in negotiations with the current tenant on a third. Eleven of the housing asset properties were marketed to produce affordable units. Nine of the parcels are currently under negotiation with developers to produce some affordable housing. Three parcels, due to their size and complexity to develop are recommended to be declared surplus property, and sold on the open market, and five of the parcels are encumbered by Exclusive Negotiating Agreements with developers for potential residential projects with affordable units. Below is a list of the four LRPMP properties and the seventeen remaining housing asset parcels and their current disposition status. A map is included to show the locations of the parcels with active negotiations: APN Address Status HOUSING ASSETS 506-0-020-130 250 Los Angeles Avenue Currently rented. Recommend to be declared surplus due to size of property. 511-0-030-250 1123 Walnut Canyon MAP LOCATION #2 Negotiations with potential developers for residential project underway. Contiguous properties to be developed into one project. 511-0-030-260 1113 Walnut Canyon 511-0-030-270 1095 Walnut Canyon 511-0-030-280 1083 Walnut Canyon 511-0-030-290 1073 Walnut Canyon 511-0-030-300 1063 Walnut Canyon 511-0-040-10 1331 Walnut Canyon MAP LOCATION #1 Negotiations with potential developers for residential project underway. Contiguous properties to be developed into one project. 511-0-040-130, & -140 1293 Walnut Canyon 512-0-063-010 780 Walnut Street Recommend to be declared surplus due to size of parcel. 512-0-081-050 450 Charles Street MAP LOCATION #3 Contiguous properties to be developed into one project. Currently encumbered by an Exclusive Negotiating Agreement for a residential project. 512-0-081-060 460 Charles Street 512-0-081-080 484 Charles Street 512-0-102-100 112 First Street MAP LOCATION #4 Contiguous properties to be developed into one project. Currently encumbered by an Exclusive Negotiating Agreement for a residential project. 512-0-102-110 124 First Street 353 Honorable City Council 04/07/2021 Regular Meeting Page 4 HOUSING ASSETS 506-0-020-525 SW Terminus of Millard St Recommend to be declared surplus due to complexity to develop. LRPMP PROPERTIES 506-0-050-080 500 Los Angeles Avenue MAP LOCATION #5 Currently encumbered by an Exclusive Negotiating Agreement for a commercial project. 513-0-024-105, & -135 15404 Princeton Avenue MAP LOCATION #6 Currently encumbered by an Exclusive Negotiating Agreement for a residential project. 512-0-081-110 467 High Street Successor Agency transferred to City, property disposition subject to Surplus Land Act. 511-0-101-350 347 Moorpark Avenue Successor Agency transferred to City, property disposition subject to Surplus Land Act It is important to remember that property negotiations do not mean that projects have been approved. All projects that might be proposed as a part of these sale negotiations, will need to go through the entitlement process, including public input and environmental review, before they will be approved projects. FISCAL IMPACT There is no fiscal impact from this action. COUNCIL GOAL COMPLIANCE This action is consistent with City Council Strategy 1, Goal 3, Objective 1 (1.3.1): “Dispose of applicable former Moorpark Redevelopment Agency owned properties.” STAFF RECOMMENDATION Receive and file report. Attachment: Map of Property Locations – Parcels Under Negotiation 354 ATTACHMENT 1— PROPERTY LOCATION MAP PARCELS CURRENTLY UNDER NEGOTIATION KEY HOUSING PROJECT COMMERCIAL PROJECT Princeton Avenue High Street Los Angeles Avenue First Street Charles Street 355