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AG RPTS 2001 0207 RDA REG
1 E8i1 RAO 1' OF Resolution No. 2001 -96 MOORPARK REDEVELOPMENT AGENCY REGULAR MEETING AGENDA WEDNESDAY, FEBRUARY 7, 2001 6:30 P.M. Moorpark Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3 . PUBLIC COb84ENT : 4. PUBLIC HEARING: 5. PRESENTATION /ACTION /DISCUSSION: A. Consider Adopting a Resolution of Necessity to Acquire Fee Title by Eminent Domain that Real Property Owned by Laszlo B. Kovacs at 798 Moorpark Avenue in the City of Moorpark. Staff Recommendation: 1) Conduct a hearing for the property owner before considering the adoption of Resolution No. 2001- F a Resolution of the Redevelopment Agency of The City of Moorpark, California finding and determining that the public interest, convenience and necessity require the acquisition of certain property for public purposes; 2) review the evidence presented, including the agenda report and public comments and close the hearing; and 3) adopt Resolution No. 2001- authorizing the commencement of eminent domain proceedings so as to acquire the fee simple interest in real property described therein. (Note: this requires an affirmative FOUR- FIFTHS (4 /5ths) vote of the Agency Board of Directors.) (ROLL CALL VOTE REQUIRED) Redevelopment Agency Agenda February 7, 2001 Page 2 5. PRESENTATION /ACTION /DISCUSSION: (continued) B. Consider Report on the Progress of Mountain View Development by Cabrillo Economic Development Corporation (Tract No. 5161, Residential Planned Development (RPD) No. 98 -7). Staff Recommendation: Direct staff as deemed appropriate. C. Consider Relocation of the Chamber of Commerce Offices to High Street. Staff Recommendation: 1) Offer a lease of the building at 18 High Street with the following provisions: (a) Monthly rent fixed at $1,000 per month for three years; (b) Review after three years; (c) Chamber to pay for all utilities and landscape maintenance; (d) No subletting provision; 2) Advance up to $10,000 for tenant improvements to be repaid over a five -year period at 5% simple interest. If the building is vacated by the Chamber at the Agency's request prior to the end of the five year period, the Agency would absorb the balance due. If the Chamber vacates the premises, at other than the Agency's request, prior to the end of the five years, the balance would be due and payable to the Agency; and 3) Provide Notice to Charles Abbott & Associates to relocate by April 30, 2001 or before if mutually convenient for interested parties. 6. CONSENT CALENDAR: A. Consider Approval of Minutes of Regular Meeting of June 21, 2000. Consider Approval of Minutes of Special Meeting of January 17, 2001. Consider Approval of Minutes of Regular Meeting of January 17, 2001. Consider Approval of Minutes of Special Meeting of January 31, 2001. Staff Recommendation: Approve minutes as processed. 7. CLOSED SESSION: A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Subdivision (c) of Section 54956.9 of the Government Code: (Number of cases to be discussed - 4) 7. CLOSED SESSION: (continued) Redevelopment Agency Agenda February 7, 2001 Page 3 B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Pursuant to Government Code Section 54956.8) Property: 798 Moorpark Ave., Moorpark CA 93021 Agency Negotiator: Steven Kueny, Executive Director Negotiating Parties: The Redevelopment Agency of the City of Moorpark and Laszlo B. Kovacs Under Negotiation: Price and terms of payment Property: 765 Walnut St., Moorpark CA 93021 Agency Negotiator: Steven Kueny, Executive Director Negotiating Parties: The Redevelopment Agency of the City of Moorpark and Miguel Magdeleno Under Negotiation: Price and terms of payment Property: 45 East High St., Moorpark CA 93021 (Moorpark Playhouse) Agency Negotiator: Steven Kueny, Executive Director Negotiating Parties: The Redevelopment Agency of the City of Moorpark and American Commercial Bank Under Negotiation: Price and terms of payment 8. ADJOUPJR4ENT : --------------------------------------------------------------------------------- Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or a Presentation /Action /Discussion item. Speakers who wish to address the Agency concerning a Public Hearing or Presentations /Action/ Discussion item must do so during the Public Hearing or Presentations /Action /Discussion portion of the Agenda for that item. Speaker cards must be received by the City Clerk for Public Comments prior to the beginning of the Public Comments portion of the meeting and for Presentation /Action /Discussion items prior to the beginning of the first item of the Presentation /Action /Discussion portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Presentation /Action /Discussion item speaker. A limitation of three to five minutes shall be imposed upon each Public Hearing Ate m speaker. Written Statement Cards may be submitted in lieu of speaking orally for open Public Hearings and Presentation /Action /Discussion items. Copies of each item of business on the agenda are on file in the office of the City Clerk and are available for public review. Any questions concerning any agenda item may be directed to the City Clerk at (805) 517 -6223. In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk's Department at (805) 517 -6223. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (CFR 35.102- 35.104 ADA Title II). STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss CITY OF MOORPARK AFFIDAVIT OF POSTING I, Blanca Garza, declare as follows : That I am the Deputy City Clerk of the City of Moorpark and that an agenda of the Regular meeting of the Moorpark Redevelopment Agency to be held February 7, 2001, at 6: 30 p.m. in the Council Chambers of the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California, was posted on February 2, 2001, at a conspicuous place at the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California. I declare under penalty of perjury that the foregoing is true and correct . Executed on February 2, 2001 . Blanca Garza, Deputy City Clerk ITEM CIT%* OF Nl(li Redevelop, of "��y/ ACTION: MOORPARK REDEVELOPMENT AGENCYo r� AGENDA REPORT BY: TO: Honorable Agency Board of Directors FROM: Hugh R. Riley, Assistant Executive Directo DATE: January 23, 2001 (MRA Meeting of 2/7/01) )Rr1kuK. (7A1,1FOR11:1 ment •1grncy- Meeting 7 iClYl J - 6 SUBJECT: Consider adopting a Resolution of Necessity to acquire fee title by eminent domain that real property owned by Laszlo B. Kovacs at 798 Moorpark Avenue in the City of Moorpark. BACKGROUND: The primary objective of the Moorpark Redevelopment Agency is to eliminate blight, provide affordable housing and correct deficiencies with utilities and infrastructure. The Redevelopment Agency staff has been pursuing acquisition of property located at 798 Moorpark Avenue as part of the assembly of a future affordable housing site. Laszlo B. Kovacs is the owner of the property. On December 6, the Agency held a noticed hearing before considering a Resolution of Necessity to acquire the property. At that time the Agency Board decided to postpone the hearing in favor of continuing the negotiations for a purchase price with Mr. Kovacs. DISCUSSION: The subject property is located in the Downtown Specific Plan area and is zoned C -O Office uses. It is located at the southeast corner of Moorpark Avenue and Everett Street. The Property contains 7,500 square feet and has 50 feet of frontage on Moorpark Avenue and, 150 feet of frontage on Everett Street. There is a 1,165 square foot structure and a parking lot with approximately eight parking spaces. MRA Agenda Report January 23, 2001 Page 2 The Agency had an appraisal made on the property by McNamara & Associates. The appraised value of the property was determined to be one hundred seventy -two thousand dollars ($172,000). The Appraisal document has been reviewed by the Agency Board. The property, along with adjacent property is necessary for the future development of medium to higher density, affordable housing. This intended use is consistent with the purpose of the Moorpark Redevelopment Plan. The acquisition of the property is necessary in order to carry out the intended project. As of January 17, 2001, Agency staff has attempted to negotiate a purchase of the property from the owner, but has not been successful. Pursuant to California Government Code sections 7267.2, 37350, and 40401 et sec-. and California Code of Civil Procedure Section 1230.010 et se q. and Section 19, Article I of the California Constitution, and other authorities, the Agency is authorized to acquire the fee title to the property by eminent domain, provided certain procedural steps are followed. First, the Agency must make an offer to the Property owner, which offer must be transmitted in writing, based upon an appraisal. A copy of the offer the Agency made to the Property owner is attached hereto as Exhibit "A," which offer was made as required by applicable law. The offer was based upon the appraisal of the Property. It is now necessary that an action in eminent domain be commenced to acquire the Property. Prior to filing the action, the Agency must hold a hearing on a resolution of necessity, which resolution is attached hereto, and provide the owner of the Property an opportunity to be heard at that hearing, provided the owner has filed a request to be heard in writing with the City prior to the hearing. The hearing is timely and duly noticed. Submitted herewith as Exhibit "B" is a copy of the Notice of Hearing which notice was given in accordance with the applicable statutes. MRA Agenda Report January 23, 2001 Page 3 After conducting the hearing, if the Agency finds that the public necessity so requires, the attached Resolution of Necessity, Resolution 2001- f should be adopted, authorizing condemnation proceedings for the purpose of acquiring the Property which is described in the said Resolution. The findings that need to be made are as set forth in the Resolution of Necessity. Specifically, the Agency must find. 1. That the public interest, convenience and necessity require the acquisition of the Property for the Project. As proposed, the Project will serve public purposes, as discussed above. 2. That the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. As set forth above, the property is presently being underutilized having only one occupant. The proposed project with increased use density, will provide affordable housing for numerous low and moderate income households. 3. That the Property sought to be acquired is necessary for the Project. As set forth above, the Project involves the development of affordable housing This Property will be used along with other property in the vicinity for affordable housing purposes. STAFF RECOMMENDATION: 1. Conduct a hearing for the property owner before considering the adoption of Resolution 2001 1 a Resolution of the Redevelopment Agency of The City of Moorpark, California Finding and Determining That The Public Interest, Convenience and Necessity Require The Acquisition of Certain Property For Public Purposes; and 2. Review the evidence presented, including this staff report and public comments and close the hearing; and MRA Agenda Report January 23, 2001 Page 4 3. Adopt the attached Resolution 2001- authorizing the commencement of eminent domain proceedings so as to acquire the fee simple interest in real property described therein. Note: This requires an affirmative FOUR- FIFTHS (4/5) vote of the Agency Board of Directors). Attachments: Exhibit "A" Offer Letter Exhibit "B" Notice of Hearing Resolution 2001- EXHIBIT A MOORPARK REDEVELOPMENT AGENCY 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 December 11, 2000 Mr. Laszlo B. Kovacs 1449 Fordham Ave. Thousand Oaks, CA 91360 Re: Offer to Purchase Interests in Real Property: 798 Moorpark Ave., Moorpark, CA, APN 512 -0- 062 -120 Dear Mr. Kovacs: The City of Moorpark Redevelopment Agency understands that you are the owner of property located at 798 Moorpark Avenue, Moorpark, California, APN 512 -0- 062 -120, more particularly described on Exhibit "B ", attached hereto ( "Property "). With regard to the Property, the Redevelopment Agency of the City of Moorpark hereby offers to purchase the fee simple interest in and to the Property for the appraised market value of ONE HUNDRED AND SEVENTY TWO THOUSAND DOLLARS, ($172,000.00). An independent appraisal of value was made of the Property to be acquired. The amount of the above offer is the amount the City has determined to be the fair market value thereof. The basis for that determination is explained in the Appraisal Summary attached hereto as Exhibit "A," which is incorporated herein by this reference. This offer is subject to: Your ability to convey acceptable marketable title, including elimination of liens and encumbrances on the Property; and 2. An environmental inspection and approval by the Agency. The purpose of this process would be to attempt to determine whether there is hazardous contamination within, adjacent to, or coming from your property. The environmental inspection and approval process may include physical inspections and environmental assessments as deemed necessary or advisable by the Agency as well as other testing or inspection should a preliminary review indicate it advisable. In the event the Agency determines that corrective or remedial action may be necessary, the Agency reserves the right to reduce the amount offered to reflect these costs, or to withdraw this offer. Any such inspections would be conducted at Agency expense. CC-10W; Laszlo B. Kovacs December 8, 2000 Page 2 Regarding your statement to the Agency Board at their regular meeting on December 6, we would hope that a conclusion to this transaction may be reached that is satisfactory to all concerned thus eliminating the need for eminent domain proceedings. I will be contacting you shortly to discuss this offer as promised. Sincerely, H iley, Assistant Executive Director cc: Steven Kueny, Executive Di rector Joeseph E. Montes, City Attorney 02"00 0 11 Laszlo B. Kovacs December 8, 2000 Page 3 Exhibit "A" Appraisal Summary PROPERTY LOCATION 798 Moorpark Avenue, City of Moorpark, Ventura County Tax Assessor's Parcel Number 512 -0- 062 -120, described on Exhibit B attached hereto. PROPERTY TO BE The fee interest in and to the land and improvements for the ACQUIRED entire Property, approximately 6,500 square feet OWNER Laszlo B. Kovacs ZONING C- O— Office Uses, Downtown Specific Plan Area PRESENT USE Professional Office CONTOUR Level, at street grade. ACCESS Moorpark Avenue (State Highway 23) frontage, with parking access on Everett Street. HIGHEST AND BEST USE As Developed VALUATION METHOD Market Data approach ESTIMATED PROPERTY $ 172,000 VALUE DATE OF VALUE September 6, 2000 C1%-/10a01 y Laszlo B. Kovacs December 8, 2000 Page 4 Exhibit "B" Legal Description The northerly 50 feet of the westerly 150 feet of Block A, in the City of Moorpark, County of Ventura, State of California, as per Map recorded in Book 5, Page 37 of Maps, in the Office of the County Recorder of Said County. Except therefrom a 15 foot corner radius off the northwest corner of the property dedicated to the City of Moorpark, per Instrument 86- 125069. EXHIBIT B NOTICE OF HEARING NOTICE OF HEARING REGARDING THE INTENTION OF THE CITY OF MOORPARK REDEVELOPMENT AGENCY TO ADOPT A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF 798 MOORPARK AVENUE; APN 512 -0- 062 -120; AS THE SAME IS DESCRIBED IN EXHIBIT "A" ATTACHED. TO: Lazslo B. Kovacs 1449 Fordham Ave. Thousand Oaks, CA 91360 YOU ARE HEREBY NOTIFIED, pursuant to Code of Civil Procedure Section 1230.010 et. seq., that the City of Moorpark Redevelopment Agency intends to consider the adoption of a Resolution of Necessity for acquisition by eminent domain of the fee title to certain real property ( "Property"), for redevelopment purposes (the "Project "). The Property is located at 798 Moorpark Avenue; APN 5120- 062 -120; as the same is described in Exhibit "A" Attached. The hearing will be held on February 7, 2001 at 6:30 p.m., or as soon thereafter as the City of Moorpark Redevelopment Agency Board can hear said matter, at the City of Moorpark City Council Chambers, located at 799 Moorpark Avenue, Moorpark, California 93021. You, as a person claiming or having an interest in and to the Property, are hereby notified that you have the right to appear and be heard on the issues to be considered at that hearing. The issues which will be considered are set forth in California Code of Civil Procedure section 1240.030, and include: Whether or not the public interest and necessity require the Project; 2. Whether or not the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; Whether or not the Property sought to be acquired is necessary for the Project. If you wish to be heard at this hearing, you MUST FILE A WRITTEN REQUEST, indicating your intent to appear and be heard, within fifteen (15) days of the mailing of this notice by filing or delivering that written request to the City of Moorpark Redevelopment Agency Executive Director at 799 Moorpark Avenue, Moorpark, California 93021. RIV #69160 v1 -1- C 0 009 NOTICE OF HEARING, Page 2 You may use the enclosure for the purpose of notifying the City of Moorpark Redevelopment Agency of your intent and desire to be heard. Your failure to timely file a written request to appear and be heard may result in a waiver of your right to be heard. For further information, contact Hugh Riley at (805) 517 -6215. Hugh R. ey Assistant Executive Director RZV #69161 vi NOTICE OF HEARING, Page 3 Name Address Date RIV #69161 vi REQUEST TO BE HEARD ON RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN REAL PROPERTY [798 Moorpark Avenue]. Telephone Signature C 'J"1100i _- EXHIBIT "All - SAID LAND IS SITUATED IN THE COUNTY OF VENTURA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE NORTH 50 FEET OF THE WEST HALF OF BLOCK "A ", ACCORDING TO THE MAP SHOWING THE TOWNSITE OF MOORPARK, IN THE CITY OF MOORPARK, RECORDED IN BOOK 5, PAGE 5 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND PARTICULARLY DESCRIBED AS: BEGINNING AT A POINT IN THE EAST LINE OF MOORPARK AVENUE, DISTANT NORTH 250 FEET FROM THE POINT OF INTERSECTION OF THE NORTH LINE OF CHARLES STREET AND THE EAST LINE OF MOORPARK AVENUE; THENCE FROM SAID POINT OF BEGINNING: 1ST: NORTH 50 FEET TO A POINT; THENCE AT RIGHT ANGLES, 2ND: EAST 150 FEET TO THE NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO MADELEINE R. POINDEXTER, ET CONJ. TO THE MOORPARK SCHOOL DISTRICT BY DEED DATED JUNE 15, 1905 AND RECORDED IN BOOK 96, PAGE 108 OF DEEDS; THENCE AT RIGHT ANGLES, 3RD: SOUTH 50 FEET TO A POINT; THENCE AT RIGHT ANGLES, 4TH: WEST 150 FEET TO THE POINT OF BEGINNING. EXCEPT THAT PORTION OF THE NORTH 50 FEET OF THE WEST HALF OF BLOCK "A" ACCORDING TO THE MAP SHOWING THE TOWNSITE OF MOORPARK, IN THE COUNTY OF VENTURA, STATE OF CALIFORNIA, ACCORDING TO THE MAP RECORDED IN BOOK 5, PAGE 5 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND PARTICULARLY DESCRIBED AS: BEGINNING AT A POINT IN THE EAST LINE OF MOORPARK AVENUE, DISTANT NORTH 30C FEET FROM THE POINT OF INTERSECTION OF THE NORTH LINE OF CHARLES STREET AND THE EAST LINE OF MOORPARK AVENUE AS SAID INTERSECTION IS SHOWN ON SAID MAP; THENCE FROM SAID POINT OF BEGINNING, 1ST: EAST 15.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 15.00 FEET; THENCE, 2ND: SCUTiEASTERLY ALONG SAID CURVE AN ARC DISTANCE OF 23.56 FEET THROUGH A CENTRAL ANGLE OF 900 00` 00" 70 THE EASTERLY LINE OF SAID MOORPARK AVENUE; THENCE, 3RD: NORTH 15.00 FEET ALONG SAID EASTERLY LINE, TO THE POINT OF BEGINNING AS GRANTED TO THE CITY OF MOORPARK IN DEED RECORDED SEPTEMBER 12, 1986, AS INSTRUMENT NO. 86- 125069. RESOLUTION NO. 2001- A RESOLUTION OF THE REDEVELOPNMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FINDING AND DETERMINING THAT PUBLIC INTEREST AND NECESSITY REQUIRE THE ACQUISITION FOR REDEVELOPMENT PURPOSES OF CERTAIN REAL PROPERTY DESCRIBED AS 798 MOORPARK AVENUE; APN 512 -0- 062 -120 AS THE SAME IS MORE PARTICULARLY DESCRIBED IN EXHIBITS "A" and "B" ATTACHED HERETO AND INCORPORATED HEREWITH. WHEREAS, the Redevelopment Agency of the City of Moorpark ( "Agency ") made an offer to Laszlo B. Kovacs ( "Owner ") on December 11, 2000, to purchase property for $172,000; and WHEREAS, said offer of $172,000 represents the full amount determined to be just compensation for the property and improvements; and WHEREAS, said offer is not less than the Agency's approved appraisal of the fair market value of the property; and WHEREAS, as of January 17, 2001, Owner did not accept the Agency's offer; and WHEREAS, the Agency then notified Owner on January 18, 2001, of a hearing, to be held not less than fifteen (15) days from the date of said notification, on February 7, 2001, at which time a Resolution of Necessity to acquire the property by eminent domain would be considered; and WHEREAS, Owner has not waived the fifteen (15) day notification period and has acknowledged the City's intent to hold said hearing at 6:30 p.m. on February 7, 2001 in the manner provided in the Notice of Hearing. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Redevelopment Agency of the City of Moorpark (hereafter "Agency "), after consideration of the staff report, staff presentation, discussion, oral testimony and evidence presented at the February 7, 2001 meeting of the Agency hereby finds, determines and declares as follows: C 1%-10 Resolution No. 2001 - Page 2 1. That the public interest and necessity requires the development of affordable housing for low and moderate income households; 2. That the above described improvements are planned and located in a manner that will be most compatible with the greatest public good and the least private injury; 3. That the real property described above is necessary for the proposed project; 4. That the proposed project is consistent with the Redevelopment Plan adopted by the legislative body; S. That the offer to purchase the above described property has been made to the owner of record of the property, as required by California Government Code Section 7267.2 and said offer has not been accepted by said owner. SECTION 2. The real property that is the subject of this resolution and is to be taken by the Redevelopment Agency consists of 798 Moorpark Avenue; APN 512 -0- 062 -120 and as described on Exhibit `A' which is attached hereto and incorporated herein, and as more particularly depicted on Exhibit `B' which is also attached hereto and incorporated herein. SECTION 3. The public use for which the above - described property is to be taken is the construction affordable housing. The Redevelopment Agency is authorized to acquire the above described property by eminent domain pursuant to Section 19, Article 1 of the California Constitution, Sections 1240.010 through 1240.050 of the California Code of Civil Procedure, and Section 33391 (b) of the Health and Safety Code and Section 403 of the Redevelopment Plan. SECTION 4. If any of the above described property has been previously appropriated to some public use, the public use for which it is taken under this proceeding is a compatible public use or, in the alternative, a more necessary public use. SECTION 5. The Agency's Attorney and the firm of Burke, Williams and Sorenson are hereby authorized and directed to prepare, institute, and prosecute in the name of Redevelopment Agency of the City of Moorpark such proceedings in the court Resolution No. 2001 - Page 3 having jurisdiction thereof as may be necessary for the acquisition of the above described property. SECTION 6. The Agency Secretary shall certify to the adoption of this resolution by a vote of not less than four - fifths (4/5) of all of the members of the Agency Board of Directors. SECTION 7. This resolution shall be effective immediately upon its adoption. SECTION 8. The Agency Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this day of February, 2001. Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt Agency Secretary Attachments: Exhibit "A" Exhibit "B" C v0:1:-) Resolution No. 2001 - Page 4 EXHIBIT A MAP 05 �s • as' 1,7 100' 100' 10 • 100 50' S0' 1 100' 22 I 14 32 21 I 2s I . 13 pp so. I g 1 P So 8 SIO i on 06 I M �° 5UBJECT PROPERTY niJ " s I ' 47' 49' LS SJ 90 107 !s L v ERETT WOf25069 �Nw I� k.511 °°i� j J -- Q Y X12.` so So' 1 5 I O *' 062 i I � M IDS' � O LSJ O2 ti a. w 0 t o h O O b O M® 0 o ~� 15 S0 50 0 -0 CHARLES Z ' O J O *' LSJ O2 ti a. w o v� o 75" M N K 3 W N i 75' -0 CHARLES Z ' O J Resolution No. 2001 - Page 5 EXHIBIT B Legal Description The northerly 50 feet of the westerly 150 feet of Block A, in the City of Moorpark, County of Ventura, State of California, as per Map recorded in Book 5, Page 37 of Maps, in the office of the County Recorder of Said County. Except there from a 15 -foot corner radius off the northwest corner of the property dedicated to the City of Moorpark, per instrument 86- 125069. ITEM 6' 31V C1TN' OV %100RPIRK. C^T,IFORNIA Redevelopment Agency Meeting of L?l "''�3 i ACTION: L' a— �'-� ,-✓c, MOORPARK REDEVELOPMENT AGENDA REPORT To: Honorable Agency Board of Directors From: Nancy Burns, Senior Management Analyst Date: February, 1, 2001 (Agency Mtg. of February 7, 2001) Subject: CONSIDER REPORT ON THE PROGRESS OF MOUNTAIN VIEW DEVELOPMENT BY CABRILLO ECONOMIC DEVELOPMENT CORPORATION (TRACT NO. 5161, RESIDENTIAL PLANNED DEVELOPMENT NO. 98 -7) BACKGROUND On September 20, 2000, the Agency Board received a report on the status of the Mountain View Project in Moorpark. At that time, more than two years had transpired since the Moorpark Redevelopment Agency entered into a Disposition and Development Agreement (DDA) with Cabrillo Economic Development Corporation (CEDC) for the construction of fifty -nine (59) homes on the Gisler Field Site, fifteen (15) of which are to be affordable to low and very low income households. This report will provide a brief overview of the chronology of the project and its current status. DISCUSSION Attachment No. 4 to the DDA is its Schedule of Performance. The DDA provides that the Schedule of Performance may be revised from time to time, as mutually agreed by the Agency and the Developer. The DDA also provides for the imposition of a penalty if the Developer fails to meet and fulfill any of the requirements of the Schedule. The penalty of one percent (1 =U of the balance owed to the Agency on the property may be imposed if the Agency notifies the Developer of a default on any of the requirements and the Developer does not correct the default. C 'C"001 1.7..9_ n Honorable Agency Board of Directors Date 02/01/01 Page 2 Delays occurred during the latter part of 1998 in meeting some of the required actions. Some of the delays were caused, in part, by the cancellation of Agency and City meetings. On February 17, 1999, the Agency amended the DDA to revise the Schedule of Performance (Amendment No. 1). Attachment "A" shows the Amended Schedule of Performance, including original dates. On October, 19, 1999, CEDC was sent a notification that it was in default on certain requirements contained in the Performance Schedule. A separate letter of the same date advised the developer of other actions that were required. Subsequently, the developer addressed many of the outstanding issues. Some issues remained outstanding or were partially addressed. On March 1, 2000, the Agency received a report on the project and was advised that delays at that time could not be attributed to City /Agency. Outstanding items at that time included the question of subordination of the DDA to the construction loan; proof of financing for the complete project; provision of executed construction contracts for the project; changes to the number of units planned for each phase; corrections for approval of plans; additional right -of -way required for access to site; deed restrictions for individual parcels; and changes to escrow instructions, title insurance, subordination agreement and promissory note. Some of the unmet requirements were up to four (4) months late at that time. Staff was directed to return with an update on progress at the April 5, 2000, meeting. By April 5, 2000, items listed on the first page of the Amended Schedule of Performance had been completed; some other items on the Amended Schedule of Performance had been completed, as well. Items unresolved at that time included confirmation of terms of construction financing, provision for Agency to cure non- performance or other default, if necessary, revisions to the number of units to be constructed in each phase, selection criteria for the buyers of the affordable units, length of deed restrictions, and the overall delay of the project. The Final Map originally was to have been recorded in December 1999, with interest to begin accruing at that time. The Amended Schedule of Performance set the date for Final Map approval and the accrual of interest to March 2000. Honorable Agency Board of Directors Date 02/01/01 Page 3 At the Agency meeting of April 5, 2000, the Board determined that the DDA should be amended to reflect a revised schedule which requires interest accrual to be effective April 1, 2000, on the purchase price of the site; includes a definition of Moorpark residency; utilizes the HUD definition for First Time Home Buyer for buyers of the Affordable Units, restricts all affordable units for at least thirty (30) years; and requires language of key documents to be subject to approval by the Executive Director and Agency Counsel. On September 20, 2000, the Agency received a report updating the Board on the status of the project at that time. Progress had been made on many key issues. Key documents had been developed and revised, as needed; construction financing was approved for the entire project; and various corrections had been made to the Covenants, Conditions and Restrictions (CC &Rs), Final Map and Improvement Plans. Since the above - mentioned report was received by the Board, staff has worked with the Developer, construction lender and legal counsel to resolve outstanding issues for this project. Key activities include the following: 1. A Second Amendment is being prepared which includes a proposed revised Schedule of Performance. Performance dates will be included in the Schedule of Performance when other outstanding issues are resolved. Staff is awaiting resolution of storm water detention and National Pollutant Discharge Elimination System (NPDES) requirements. 2. CEDC reports that it is in escrow for the acquisition of property required for access to the site. 3. The developer has been asked to make minor modifications to the loan documents for the individual Affordable Units. These requested changes have been forwarded to the developer's legal counsel for inclusion in the documents. 4. Discussions with the Bank's legal counsel regarding the Subordination Agreement for the entire project have indicated the Bank's willingness to accept modifications requested by Agency counsel. 5. Other closing documents and a Closing List of all necessary items and actions pursuant to closing escrow have been prepared and are ready for use. Honorable Agency Board of Directors Date 02/01/01 Page 4 Outstanding conditions of the project include the payment of certain fees such as Quimby and City Traffic Mitigation fees, which the developer has indicated it is prepared to pay. Outside agency approvals that are still needed for this project include Calleguas Water District and the Ventura County Water Works. Primary conditions which have not been addressed to the satisfaction of the City Engineer are that of Line of Sig:: ^t constraints, adequate storm water detention for the project and NPDES requirements. The Director of Community Development and the City Engineer have communicated with the developer and developer's engineer to offer suggestions for a potential solution to these outstanding conditions of compliance. Additional revisions to the CC &Rs may be needed, once final decisions are made on how matters such as storm water detention and NPDES requirements will be met. STAFF RE COIOMNDAT I ON Direct staff as deemed appropriate. Attachment ATTACHMENT A ATTACHMENT NO. 4 SCHEDULE OF PERFORMANCE Amended 1. Schedule of Performance by Developer Unless extended as a result of an enforced delay, as provided for in Section 13.04 of the Agreement, or otherwise agreed to by Agency, Developer shall be required to perform in accordance with the following schedule. Failure to perform shall result in assessment of penalties as provided for in Section 04.08 of the Agreement, and may, at the option of Agency, result in a default of the Agreement. June 1998 Good faith payment due June 1998 Disposition and Development Agreement executed July 1998 July -1998 Submittal of basic concept and schematic drawings for Agency August 1998 approval (Sec. 04.02) Agency approval of concept and schematic drawings (Sec. September 1998 04.05) August 1998 Submittal of waiver requests November 1998 September-1J998 Application for entitlements submitted (Sec 04.07) December 1998 November 1998 Applications submitted to Planning Commission and/or Council March 1999 for review and action january 1999 Entitlements approved April 1999 january 1999, Begin final engineering and architectural design April 1999 M8Fch 1999 Civil engineering plans submitted to engineering June 1999 Pagc 1 of 3 L '.. 2 n March 1 Grading plans submitted to engineering 4une:,;1 '999 March 1999 Building plans submitted for plan check June,1999 duly -4999 Civil engineering plans approved October 1999 duly 1999 Building plans approved October 1999 jury -1999 Other government agencies' approvals obtained September 1999 duly -1999 Submit proof of financing (Sec. 03.14) September 1999 Escrow opens (Sec. 03.02) October 1999 Submit copy of Developer's executed contract documents October 1999 (Sec. 03.14) August -1999 Promissory Note prepared for Agency review (Sec. 03.07) October 1999 n,.,.,....,beF 1999 Final Map recorded / Interest begins to accrue March 2000 APRIL 2000 * n,,..,..., beF 1999 HOA recorded (if needed) March 2000 Deeernbe_ 1999 Escrow closes within 30 days of recordation, title conveyed to April 2000 CEDC (Sec. 03.03) DecernbeF 1999 Construction loan closes April 2000 4afedatt -21909 Interest payments begin April 2000 * See page 3 of 3 Page 2 of 3 d-i996 Phase One construction begins April X2000 June 1009 interest begins to aecrue Of Final Map not Yet mcolded july 2000 june -2999 Marketing begins September ,2000 Jae -2099 Payment of Site Purchase Price begins with sale of market September 2000 value units August 2 Phase Two construction begins November 2000 October 2999 Sales completed, Phase One January 2001 FebMaFy 94 Phase Three construction begins April 2001 Affil 2001 Sales completed, Phase Two July 2001 January 2002 Full construction of new public street completed january 20-02 Sales completed, Phase Three March 2002 * Per Board action on April 5, 2000 interest begins to accrue on April 1, 2000. Per DDA, interest payments are required to begin 30 days following the close of the construction loan. Page 3 of 3 C C"Ilfu (12¢. rrEM S-. e • C1Tt* nr NIOORP,�RK, CAT.TFOR'�TA Redevelopment Agenev Meeting of A( FiON- RY: MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT TO: Honorable Chair and Board Members From: Hugh R. Riley, Assistant Executive Director DATE: February 1, 2001 (Meeting of 2/7/01) SUBJECT: Relocation of Chamber of Commerce Offices to High Street Background: Staff has examined the feasibility of locating the Moorpark Chamber of Commerce Offices in the Redevelopment Agency - owned building at 18 High Street. Two scenarios for such a move were analyzed. These were the Chamber's independent lease of the building and the sharing of the building space with certain city staff to be assigned. Either scenario would require Abbott & Associates, the current tenant in the building to relocate. Discussion: EXISTING OFFICES - The Chamber of Commerce office is presently located at 225 W. Los Angeles Avenue. This site has 885 square feet. The Chamber pays rent at a rate of $.90 per square foot ($796.50) plus a charge for common area maintenance of $250. The current total rent is $ 1,046 per month. The existing lease is on a month -to -month basis. The Chamber's monthly cost for utilities and services is $196.50 including electricity, gas and security system. CC0025) Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 2 EXCLUSIVE USE OF 18 HIGH ST. - the Moorpark Redevelopment Agency owns the office building at 18 High Street. The building has a usable area of approximately 1,600 square feet and is presently leased to Charles Abbott & Associates (Abbott) for the City's Engineering and Building Safety services. Abbott pays the Agency $1,500/ month rent ($.94 /sq. ft.) . Generally accepted market rates for office space in this area is $.95 to $1.00/ Sq. Ft. The building has adequate parking for staff and customers and can be remodeled for use by the Chamber of Commerce. Current utility and service costs for 18 High Street are $293 per month ($3,516 /year) including $183 per month paid by Abbott for electric service. This is somewhat more than the Chamber's current monthly utility cost ($196.50) for electricity, gas and security at the existing location. The Agency pays about $42 per month for water and sewer service and $68 per month for landscape maintenance at the building. There are no charges for trash pick -up at this building as per the City's Franchise Agreement. Rent for the entire 1,600 Sq. Ft. at the market rate ($1.00/ Sq. Ft.) would be $1,600 per month or $19,200 per year. This exceeds the existing office rent by $554 per month. Rent for the entire building at the rate being paid by the current tenant ($.9375/sq. ft.) would be $1,500 which exceeds the Chamber's existing rent by $454 per month. Rent at $1,000 per month plus the utilities now being paid by the Agency estimated at $110 per month would be exceed the Chambers current monthly cost by only $46 excluding tenant improvements. An estimate of the cost to remodel the building for use by the Chamber of Commerce is $10,000 including new walls and doorways to provide separate conference room space, new carpeting, ceiling and lighting modifications, signs and other minor improvements. The Chamber owns sufficient serviceable office partitions and equipment including a copier to permit them to duplicate their existing office arrangements at 18 High Street. If the Chamber of Commerce is not in a position to pay for the required remodeling, the Redevelopment Agency could consider advancing the cost of the necessary tenant C- pia©, Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 3 improvements. In this instance a financing provision 5% simple interest could be incorporated into the lease that would amortize the $10,000 remodeling costs over year period. SUMMARY OF MONTHLY COSTS FOR EXCLUSIVE USE COST /SQ. FT. RENT UTILITIES TOTAL Existing Offices: $ .90 +Com. Area $1,046 $ 196.50 $1,243 18 High Street: $1.00 (market) $1,600 $ 293.00 $1,889 $ .9375 (Abbott) $1,500 $ 293.00 $1,789 $ .90 $1,440 $ 293.00 $1,729 $ .63 $1,000 $ 293.00 $1,289 with a 5- If the Redevelopment Agency rents the entire building at 18 High Street to the Chamber of Commerce for the same monthly rent and utilities being paid by Abbott, there would be no fiscal impact to the Agency. If the Agency provided the space for the same rent now being paid by the Chamber at LA Avenue ($ .90/ sq. ft.) the Agency would receive $454 per month or $5,448 per year less assuming the Chamber paid the utilities costs. This cost would increase if the agency accepted a lesser rent and does not include cost to finance tenant improvements at an interest rate that is less than the City's current investment rates. SHARED USE OF 18 HIGH STREET - An alternative to renting the entire building at 18 High Street to the Chamber would be to divide the building and provide common areas to be shared by the Chamber with certain City staff. This alternative provides two advantages. 1) It provides needed office space for the city and, 2) it helps offset the lower rent associated with providing space to the Chamber. The disadvantages of sharing space include: 1) separating 4 or 5 City Staff from City Hall; 2) sharing space with a non - government agency; and 3) the increased cost. Depending on the number of City staff to be located in the building, the space might be arranged as follows: 1. x002," Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 4 Chamber of Commerce - City Staff Shared Space TOTAL 450 square feet 592 square feet 560 square feet 1,600 square feet Shared space would include a conference room, restrooms and storage area. The two agencies could maintain separate entrance and reception areas with joint -use parking. An example of the rent provision for shared space scenario could be rental of 450 square feet (exclusive space) to the Chamber at $.90 and 560 square feet (shared space) at $.45 for a monthly rent of $657. The Chamber would pay 50% of the utility costs for the building ($148), reducing their overall monthly cost from $1,243 to $ 805. When the rent and utilities, excluding telephone, are added to the five year amortized cost of the tenant improvements ($192.50), the monthly cost is $ 997.50 compared to the current monthly cost of $ 1,243. Remodeling the building for use by City staff would require additional partitions and alterations to ceiling, lighting carpeting. Costs for these improvements are estimated to be $25,000 over and above the $10,000 needed for improvements for exclusive occupancy by the Chamber. Additional furnishing and equipment costs including the installation of the city's telephone and data processing systems are detailed as follows: Furnishings $12,000 Network Cable (data) $ 6,000 Phone System $ 3,500 Fax, printer etc. $ 2,000 TOTAL $21,000 The additional monthly cost for telephone service for city staff would be $250. The shared use alternative presents the following cost features to the City /Agency: TOTAL COSTS: Annual Recurring costs (phone & utilities $ 4,758 One time remodel costs $ 25,000 Furnishings $ 12,000 Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 5 Equipment costs $ 11,500 First year cost $ 53,758 Net Loss Annual Revenue $ 10,116 Annual Cost to Agency -5 years $ 24,574* * One -time remodeling, furnishing and equipment costs amortized over 5 years + Annual Recurring Costs + Net Increase /loss in Annual Revenue ANNUAL COST TO CHAMBER COMPARISON Existing 18 High St. 18 High St Location (sole tenant) Shared /City Rent $ 12,552 $ 12,000* $ 7,884 @ $1,000 /mo.) Util $ 2,358 $ 3,516 $ 1,776 T.I. -0- $ 2,310 $ 2,310 TOTAL $ 14,910 $ 17,826 $ 11,970 * Chamber to pay costs for water, sewer and landscape maintenance at a current cost of $110 per month. These alternatives are based on current costs and projected for an occupancy period of five years without CPI increases that would normally be included in a new Agency property lease. CONCLUSION: Sharing the office space at the 18 High Street building presents the least costly alternative for the Chamber to locate its offices on High Street. However it increases cost to the Agency /City and requires the relocation of certain City Staff away from City Hall. The Chamber would be paying less rent than they pay now and could afford the amortization for the non - agency share of the remodeling costs. Rent, utilities and copier sharing arrangements would be negotiable. Redevelopment Agency Agenda Report Chamber of Commerce Relocation February 1, 2001 Page 6 Exclusive use of the building would mean higher costs the Chamber by $2,916 more annually than they currently pay, however they would have almost twice the square footage and 12 parking spaces. Staff Recommendation: 1. Offer a lease of the building at 18 High Street with the following provisions: a. Monthly rent fixed at $1,000 per month for three years. b. Review after three years. C. Chamber to pay for all utilities and landscape maintenance. d. No subletting provision. 2. Advance up to $10,000 for tenant improvements to be repaid over a 5 -year period at 5% simple interest. If the building is vacated by the Chamber at the Agency's request prior to the end of the five year period, the Agency would absorb the balance due. If the Chamber vacates the premises at other than the Agency's request prior to the end of the five years the balance would be due and payable to the Agency. 3. Provide Notice to Charles Abbott & Associates to relocate by April 30, 2001 or before if mutually convenient for interested parties.