HomeMy WebLinkAboutAGENDA REPORT 2016 1019 CCSA SPC ITEM 05A CITY OFMOORPARK,CALIFORNIA
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SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
THE CITY OF MOORPARK
AGENDA REPORT
To: Honorable Successor Agency Members
From: Jessica Sandifer, Program Manage; j
Date: October 18, 2016 (SA Special Meeting of 10/19/16)
Subject: Consider Termination of Lease Agreement by and between Benjamin
Cano dba La Playita at 104 High Street and the Successor Agency of
the Redevelopment Agency of the City of Moorpark
BACKGROUND & DISCUSSION
With the goal of redeveloping the south side of High Street, the Redevelopment Agency
of the City of Moorpark ("Agency") acquired the property on the south side of High
Street between Moorpark Avenue and the Metrolink Parking Lot ("Property") in 1994. At
the time of the Agency's purchase, there were various leases that were transferred to
the Agency with the purchase of the Property. One of the leases was a ground lease
with Benjamin Cano for the area known as 104 High Street and currently the site of
Maria's Restaurant. Since at the time of the Agency's purchase there were no serious
proposals to redevelop the site, Mr. Cano was offered a one year lease, which would go
month-to-month at the end of the term, until such time as the Property was needed for
development. After the initial one-year lease term, Mr. Cano sold his business and sub-
leased his property to a new operator. The sub-lessee business owner has since
changed hands without the Agency's approval and Mr. Cano has since passed away.
On June 28, 2011, Governor Brown signed into law two bills that amended California
Community Redevelopment Law in order to address the state's ongoing budget deficit.
ABx1 26 dissolved all California redevelopment agencies (RDAs) effective October 1,
2011. This legislation prevented RDAs from engaging in new activities and outlined a
process for winding down the RDA's financial affairs. A companion bill, ABx1 27, was
also passed, which allowed individual RDAs to avoid dissolution if they agreed to make
substantial annual payments into a Special District Allocation Fund and Educational
Revenue Augmentation Fund. Various redevelopment organizations filed lawsuits with
the California Supreme Court challenging the constitutionality of both ABx1 26 and
ABx1 27. On December 29, 2011, the California Supreme Court upheld the
constitutionality of ABX1 26, while striking down ABx1 27 as unconstitutional. As a
result, AB X1 26, as upheld and modified by the Supreme Court in California
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Honorable Successor Agency
October 19, 2016
Page 2
Redevelopment Association, et al. v. Ana Matosantos, et al. (53 CaL 4th 231(2011)),
dissolved the Agency as of February 1, 2012 and created the Successor Agency to the
Redevelopment Agency of the City of Moorpark ("Successor Agency"). All assets and
liabilities of the former Agency were transferred to the Successor Agency. ABx1 26
required the Successor Agency to take certain actions relevant to the non-housing
properties that caused long delays with property transfers or plans for redevelopment.
The Property is currently held by the Successor Agency pending completion of
acquisition by the City of Moorpark (City). The Successor Agency approved the
purchase of the Property by the City on June 15, 2016 and the Oversight Board
concurred with the decision on June 28, 2016. The State Department of Finance (DOE)
did not object to the Oversight Board action and staff is in the process of completing the
City's acquisition of the Property.
With the proposed Apricot Lane Farms project, staff is seeking authorization to
terminate the lease with the estate of Benjamin Cano. Staff needs time to properly
notice the termination to allow for the removal of the improvements on the site, as
required under the Lease.
FISCAL IMPACT
The Agency will cease to collect monthly rent in the amount of$550/month.
STAFF RECOMMENDATION
Approve termination of the lease agreement.
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