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HomeMy WebLinkAboutAGENDA REPORT 2024 0403 CCSA REG ITEM 10FCITY OF MOORPARK, CALIFORNIA City Council Meeting of April 3, 2024 ACTION APPROVED STAFF RECOMMENDATION. BY A. Hurtado. F. Consider Approval of Purchase and Sale Agreement with Dr. Yossi Bar-Zion for 780 Walnut Street. Staff Recommendation: Approve Purchase and Sale Agreement with Dr. Yossi Bar-Zion, subject to final language approval of the City Manager, and authorize City Manager to execute the agreement. (Staff: Jessica Sandifer, Deputy Parks & Recreation Director) Item: 10.F. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jessica Sandifer, Deputy Parks and Recreation Director DATE: 04/03/2024 Regular Meeting SUBJECT: Consider Approval of Purchase and Sale Agreement with Dr. Yossi Bar-Zion for 780 Walnut Street BACKGROUND The Redevelopment Agency of the City of Moorpark (Agency) purchased 780 Walnut Street in 2008 as a potential site for an affordable housing development. When the Agency purchased the property, it was purchased with an existing lease. The Agency allowed the tenant to lease for several years, until they moved out. The structure was demolished in 2011. The Agency staff then began working with individuals to find development partners for the site. However, prior to any development partners being found, the Agency was dissolved pursuant to AB X1 26 (”Dissolution Act”), as upheld and modified by the Supreme Court in California Redevelopment Association, et al. v. Ana Matosantos, et al. (53 Cal.4th 231(2011)). As part of the dissolution process, the City of Moorpark elected to become the Housing Successor to the Redevelopment Agency of the City of Moorpark (Housing Successor Agency). The Housing Successor Agency was required by the Dissolution Act to prepare a Housing Asset Transfer list (“HAT”) addressing the disposition of real properties acquired by the Agency for Affordable Housing purposes. The HAT allowed for the transfer of all of the Redevelopment Agency’s housing assets to the City of Moorpark. Under Dissolution Law, the City was allowed to continue to look for affordable housing development partners for the properties listed on the HAT. These activities had to conclude within 10 years of the approval of the HAT, otherwise the properties were required to be disposed of. In 2019, the City hired Kosmont Real Estate Services to assist with disposition of City surplus properties. The California Surplus Land Act (Government Code 54220 et seq.) (“SLA””) governs the sale of surplus land. Land may be declared either “surplus land” or “exempt surplus land” by the legislative body of the local agency as supported by written findings. In 2020, the SLA requirements changed such that once a public agency Item: 10.F. 115 Honorable City Council 04/03/2024 Regular Meeting Page 2 declares a property as surplus land, they must first offer the surplus land to interested affordable housing entities. DISCUSSION In November 2021, the City Council declared 780 Walnut Street as surplus property. In June 2022 a Notice of Availability (NOA) was submitted to all the required housing entities. No affordable housing entities expressed interest during the 60-day NOA period. The Surplus Land Act requires that when no affordable housing entity shows interest, an Affordable Housing Covenant needs to be recorded on the parcel requiring that if in the future, 10 or more residential units are constructed on the site, then not less than 15 percent of the number of units shall be sold or rented at affordable housing cost as defined in the California Health and Safety Code. This covenant will be recorded at the time of sale of the property. In June 2023, the City received approval from the State of California Department of Housing and Community Development (HCD) stating that the City had met the SLA obligations and is now free to sell the property. The City again marketed the parcel to the general public and real estate developers. Pursuant to this marketing effort, Dr. Yossi Bar-Zion submitted a Letter of Intent to purchase 780 Walnut Street. An appraisal was performed, which indicated that the property value was $255,000. The Purchase and Sale Agreement includes the following: • Straight land sale – no requirement to develop a particular project; • Price – Appraised Value at $255,000; • 60-day buyer due diligence period; and • Escrow closes 15 days after all conditions to close are satisfied. ENVIRONMENTAL DETERMINATION Staff has evaluated the conveyance of the property from the City to Dr. Yossi Bar-Zion and determined that the conveyance is exempt from review under the California Environmental Quality Act of 1970, as amended, (“CEQA”) on the grounds that the mere conveyance of the property, by itself, and without any specific plans for development of the property, is not a project that has the potential for a physical impact on the environment. In addition, the sale is not conditioned on any requirement to apply for, process, or seek approval for any particular land use project on the site. Any future proposed use of the site is uncertain at this time but will undergo environmental review when such use is proposed and approvals of that use are sought from the City. Accordingly, the approval of the Purchase and Sale Agreement is not a project pursuant to State CEQA Guidelines Section 15061 (b)(3) because it can be seen with certainty that there is no possibility that the mere change in ownership of the property, as distinguished from the future approval of particular uses, may have a significant effect on the environment. 116 Honorable City Council 04/03/2024 Regular Meeting Page 3 FISCAL IMPACT The Property is to be sold for appraised fair market value. Disposition of the Property will yield $255,000 (or fair market value as of the most recent appraisal) in sale proceeds upon closing, of which approximately $35,000 would be paid for closing and escrow costs. The remainder of the funds will be deposited in the Successor Agency Housing fund to be used for affordable housing purposes. COUNCIL GOAL COMPLIANCE This action is consistent with City Council Goal 3, Objective 3.8: “Surplus Land Act Process.” STAFF RECOMMENDATION Approve Purchase and Sale Agreement with Dr. Yossi Bar-Zion, subject to final language approval of the City Manager, and authorize City Manager to execute the agreement. Attachment: Purchase and Sale Agreement 117 ATTACHMENT 118 119 120 121 122 123 124 125 126 127 128 129 130 131