HomeMy WebLinkAboutAGENDA REPORT 2016 0420 CCSA REG ITEM 10O ITEM 10.0.
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City Council Meeting
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TO: Honorable City Council
FROM: Jessica Sandifer, Program Manag
DATE: April 12, 2016 (CC Meeting of 4/20/16)
SUBJECT: Consider Purchase of 776 W. Los Angeles Avenue (APN 506-0-050-
515) and Resolution Amending Fiscal Year 2015/16 Budget to Fund
Transaction
BACKGROUND & DISCUSSION
Staff has negotiated with CLP Investments, LLC, to purchase the property located at
776 W. Los Angeles Avenue. The property is adjacent to the future Pacific Communities
development property and the 76 Station on Los Angeles Avenue. The site is
approximately 1.6 acres in size and is being purchased for use as a future affordable
housing site. Depending upon the final design of the Pacific Communities development,
the location of the affordable housing site could be at a different location within the
development. The details of the final location of the site and related affordable housing
requirements for the project will be worked out as a part of the Development
Agreement. CLP Investments, LLC, has opened escrow with the current property
owner, Mohammed and Sohila Sheshebor ("Sheshebor"). The escrow will be assigned
to the City of Moorpark for closing.
The purchase price negotiated between CLP Investments, LLC and Sheshebor is
$1,375,000. The City will be executing an Assignment Agreement with CLP
Investments, LLC, requiring them to pay the $175,000 difference in the purchase cost
and all escrow costs. The City will be purchasing the site for $1,200,000. The City will
either recover the purchase price of the property as part of the Development
Agreement; when it is resold to an affordable housing developer; or the asset could be
converted into a loan to assist the affordable housing developer with developing the
site. Maintenance of the site is expected to be assumed by CLP Investments, LLC, as
part of an agreement with the City.
FISCAL IMPACT
The total funding requirement for this acquisition is $1,200,000. Recall that on February
3, 2016, City Council appropriated $1,550,000 from the City Affordable Housing Fund
(2201) for the purchase and maintenance of four (4) First Time Home Buyer units in the -
Brighton Development. The City is only purchasing one of the Brighton units. Staff is
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Honorable City Council
April 20, 2016
Page 2
proposing to transfer the remaining balance of $1,162,500 from the Home Buyer
Program (2201-2430-5025) to the newly established unit 776 W. Los Angeles Ave
(2201-7625-5097). An additional $37,500 is requested from the City Affordable Housing
Fund (2201), which has an estimated available fund balance of $2,539,302 as of the
current period.
STAFF RECOMMENDATION (ROLL CALL VOTE)
1. Authorize purchase of property at 776 W. Los Angeles Avenue and authorize the
City Manager to approve and sign all documents relevant to the transaction and
maintenance of the site, subject to final language approval of the City Manager
and City Attorney; and
2. Authorize City Clerk to accept the Grant Deed for the property; and
3. Adopt Resolution No. 2016- , amending the Fiscal Year 2015-16 budget
to purchase the property.
Attachment
1. Resolution No. 2016-
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ATTACHMENT 1
RESOLUTION NO. 2016-
A RESOLUTION OF CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AUTHORIZING AN AGGREGATE
BUDGET LINE ITEM TRANSFER OF $1,162,500 AND
AMENDING THE FISCAL YEAR 2015/2016 BUDGET BY
APPROPRIATING $37,500 FROM THE CITY AFFORDABLE
HOUSING FUND (2201) FOR THE PURCHASE OF 776 W. LOS
ANGELES AVENUE
WHEREAS, on June 17, 2015, the City of Moorpark adopted the Operating and
Capital Improvement Projects budget for Fiscal Year (FY) 2015/16, which included
$338,716 appropriations in the City Affordable Housing Fund (2201) for operations; and
WHEREAS, on February 3, 2016, Resolution No. 2016-3476 appropriated
$1,550,000 for the purchase and maintenance of the remaining four (4) affordable
housing units located in the Brighton Development, for the First Time Home Buyer
program; and
WHEREAS, the City will only be purchasing one of the affordable housing units
located in the Brighton Development for the First Time Home Buyer program; and
WHEREAS, a staff report has been presented to the City Council requesting
authorization to purchase the property at 776 W. Los Angeles Avenue for a future
affordable housing site for $1,200,000; and
WHEREAS, staff is recommending transferring the remaining $1,162,500 from
the purchase of the affordable housing units in the Brighton Development to the
purchase of 776 W. Los Angeles Avenue; and
WHEREAS, a budget amendment of $37,500 is requested from the City
Affordable Housing Fund (2201) to fully fund the purchase of 776 W. Los Angeles
Avenue; and
WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said
budget amendment and the resultant impact to the budget line items.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The purchase of 776 W. Los Angeles Avenue is hereby approved.
SECTION 2. The aggregate budget line item transfer of $1,162,500 from the
First Time Home Buyer Unit to the purchase of 776 W. Los Angeles Avenue as more
particularly described in Exhibit "A", attached hereto, is hereby approved.
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Resolution No. 2016 —
Page 2
SECTION 3. An budget amendment of $37,500 from the City Affordable Housing
Fund (2201), as more particularly described in Exhibit "A", attached hereto, is hereby
approved.
SECTION 4. The City Clerk 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 20th day of April, 2016.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Exhibit A— Budget Amendment
392
EXHIBIT A
BUDGET AMENDMENT FOR
City Affordable Housing Fund(2201)for Purchase of 776 W.Los Angeles Avenue
2015/16
FUND ALLOCATION FROM:
Fund Account Number Amount
City Affordable Housing Fund 2201-5500 $ 37,500.00
Total $ 37,500.00
DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS:
Account Number Current Budget Revision Amended Budget
2201.2430.5025.9102 $ 139,000.00 $ (22,500.00) $ 116,500.00
2201.2430.5025.9252 $ 20,000.00 $ (15,000.00) $ 5,000.00
2201.2430.5025.9610 $ 1,720,000.00 $ (1,125,000.00) $ 595,000.00
2201.7625.5097.9610 $ - $ 1,200,000.00 $ 1,200,000.00
Total ^$ 1,879,000.00 $ 37,500.00 $ 716,500.00
Approved as to Form: 6 %_
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