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Home My WebLink AboutAGENDA REPORT 2016 1221 CCSA REG ITEM 10H ITEM 10.H. CITY OF MOORPARK,CALUFOR it City Council Meeting of lit-',2/ 0/fo MOORPARK CITY COUNCILAclow-4- •; AGENDA REPORT TO: Honorable City Council FROM: Jessica Sandifer, Program Manag DATE: December 14, 2016 (CC Meeting of /21/16) SUBJECT: Consider Resolution Amending FY 2016/17 Budget to Fund Expenses Related to the Disposition of Property on the South Side of High Street (APN 512-0-090-115) BACKGROUND On February 1, 2012 pursuant to AB x1 26, the Redevelopment Agency of the City of Moorpark was dissolved and the Successor Agency of the Redevelopment Agencyof the City of Moorpark (Successor Agency) was established. Pursuant to the Health and Safety Code Section 34191.5(b), the Successor Agency prepared the required Long Range Property Management Plan (LRPMP) detailing. the disposition of non-housing assets. On February 12, 2015, the State of California Department of Finance (DOF) approved the LRPMP and authorized the disposal of the properties. On July 1, 2015, the Board of Directors of the Successor Agency adopted Resolution No. 2015-11 authorizing the transfer of the government-use and future development properties to the City of Moorpark. All properties transferred to the City of Moorpark after January 1, 2011, were considered illegal property transfers. These transfers created clouds on the titles to the various properties. In order to clean up the title to the properties, it was necessary to transfer the properties back to the Successor Agency. Unfortunately, the properties had never been properly transferred back to the Successor Agency, prior to the July 1, 2015 action. So on June 15, 2016, the properties were transferred back to the Successor Agency for proper transfer back to the City. Also, on June 15, 2016, the Successor Agency adopted resolution SA-2016-15 authorizing the sale of the non-government use portion of the 192 High Street property to the City of Moorpark and the City Council adopted Resolution 2016-3522 accepting the purchase of the property. To date, the City has transferred the funds to purchase the property to the County Assessor for distribution to the taxing entities. The grant deed transferring the property to the City of Moorpark has not occurred yet, pending issues with the Maria's Restaurant and separation of the parcels, as further discussed below. 196 Honorable City Council December 21, 2016 Page 2 On November 16, 2016 City Council approved Commercial Planned Development Permit No. 2016-01 for the construction of the Apricot Lane Market. The project site is located on the south side of High Street, east of Moorpark Avenue and west of Bard Street. The majority of the project site is currently owned by the Successor Agency to the Redevelopment Agency of the City of Moorpark. A Development and Disposition Agreement (DDA) is being negotiated to effectuate the sale of the property to Apricot Lane Market. The project also proposes use of approximately 8,900 sq. ft. of Ventura County Transportation Commission (VCTC) owned property for extra parking and landscaping. This property would remain under VCTC ownership and be used through a revocable license agreement or similar instrument. DISCUSSION There are several items that the City needs to do to prepare the property for sale to Apricot Lane Farms and future developers. Due to the ownership of the parcel by the railroad, the south side of High Street, west of Kahoots, was never defined by a legal tract map. This makes surveying and locating property lines in this area difficult. A parcel map will create legal lots on the south side of High Street and clean up the survey and property line issues. With the parcel map, the south side of High Street will be divided into two government purpose parcels at the east and west ends of the parcel that the City will retain, the Apricot Lane parcel, another parcel to be retained for future development, and will also incorporate the north Metrolink parking lot to finish out the block. Benner and Carpenter, Inc. has been engaged to prepare the parcel map, which will include the creation of a tentative map to be submitted for City Council approval prior to recordation of the final parcel map.. The cost for parcel map preparation services is $22,780. The City Council should be aware that the creation of the parcel map will not delay the Apricot Lane Farms project. Staff is working with Apricot Lane on a strategy to be able to sell them the property and have Apricot Lane become a participating property owner in the creation of the parcel map. Additionally, the project site currently contains the Maria's Restaurant building and the old grain facility building located at 192 High Street. The City intends to demolish these buildings prior to sale of the land. Before demolition, an environmental assessment of both buildings is required to test for asbestos and lead paint. FCG Environmental has been contracted to perform the environmental site assessment at a cost of$7,160. Lastly, the City anticipates legal fees related to the disposition of property at 192 High Street in the amount of $18,000. No funds have been budgeted for these fees in the FY 2016/17 budget. 197 Honorable City Council December 21, 2016 Page 3 Staff is also developing estimated demolition costs for the granary building and the Maria's restaurant property. Current indications are that these costs would range in the $150,000 to $200,000 range dependent upon the outcome of the asbestos and lead testing. Staff would return to City Council for award of an agreement and allocation of funding for the demolition costs once bids have been received. FISCAL IMPACT The total cost for parcel map preparation, environmental testing, and legal services is $47,940. No funds were allocated in the FY 2016-17 budget for these contractual services, therefore staff is requesting a Budget Amendment of $47,940 from the Endowment Fund (2018) for expenses related to the disposition of property at 192 High Street. STAFF RECOMMENDATION (ROLL CALL VOTE) Adopt Resolution No. 2016- , amending the Fiscal Year 2016/17 budget for services as outlined in the staff report. Attachment: Resolution No. 2016- . 198 RESOLUTION NO. 2016- A RESOLUTION OF CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2016/17 BUDGET BY APPROPRIATING $47,940.00 FROM THE ENDOWMENT FUND (2018) FOR SERVICES RELATED TO THE DISPOSITION OF PROPERTY ON SOUTH SIDE OF HIGH STREET (APN 512-0-090-115) (L0007) WHEREAS, on February 12, 2015, the State of California Department of Finance (DOF) approved the Successor Agency of the Redevelopment Agency of the City of Moorpark's (Successor Agency) Long Range Property Management Plan; and WHEREAS, on June 15, 2016 by Resolution No. SA-2016-15, the Successor Agency approved the sale of property 5.a APN 512-0-090-115, to the City of Moorpark; and WHEREAS on June 15, 2016 the City of Moorpark adopted the Operating and Capital Improvement Projects budget for Fiscal Year (FY) 20.16/17; and WHEREAS, on November 16, 2016, the City Council approved Commercial Planned Development Permit No. 2016-04 and Conditional Use Permit No. 2016-04 for the construction and operation of a new food market, restaurant, banquet room, commercial kitchen and microbrewery at 44 High Street; and WHEREAS, until the grant deed for the property is transferred to the City of Moorpark, the Successor Agency to the Redevelopment Agency of the City of Moorpark currently owns 1.02 acres of the project site, which it intends to sell to Apricot Lane Market Holdings LLC; and WHEREAS, a staff report has been presented to City Council requesting an appropriation of $47,940.00 from the Endowment Fund (2018) for expenses related to the disposition of property at the project site; and WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said budget amendment and the resultant impact to the budget line item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the amount $47,940.00 from the Endowment Fund (2018), as more particularly described in Exhibit "A", attached hereto, is hereby approved. SECTION 2. 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. 199 Resolution No. 2016 — Page 2 PASSED AND ADOPTED this 21st day of December, 2016. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Exhibit A— Budget Amendment 200 Resolution No. 2016-3545 Page 3 EXHIBIT A BUDGET AMENDMENT FOR Endowment Fund (2018)for Expenses related to Disposition of Property at 192 High Street FY 2016/17 FUND BALANCE ALLOCATION: Fund Title Fund-Account Number Amount ENDOWMENT FUND 2018-000-00000-33990 $ 47,940.00 Total $ 47,940.00 EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2018-172-L0007-51000 $ - $ 29,940.00 $ 29,940.00 2018-172-L0007-51040 $ - $ 18,000.00 $ 18,000.00. $ - $ - $ $ - $ - $ $ - $ - $ - Total $ - $ 47,940.00 $ 47,940.00 Finance Approval: _,92jL 201