HomeMy WebLinkAbout12/4/2012 - STAFF REPORTS - 3.A. RESOLUTION NO. 012
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
APPROVING AN ASSET TRANSFER ASSESSMENT
AND ASSET TRANSFER QUESTIONNAIRE AND
AUTHORIZING ITS SUBMITTAL TO THE STATE
CONTROLLER'S OFFICE, AND RATIFYING AND
CONFIRMING THE TRANSFER OF CERTAIN REAL
PROPERTY FOR CITY GOVERNMENTAL PURPOSES
TO THE CITY
WHEREAS, in accordance with the provisions of the California Health and Safety
Code Section 34173, the City Council of the City of Palm Springs, a public body,
corporate and politic, has been designated and has accepted such designation of
Successor Agency ("Successor') to the Community Redevelopment Agency of the City
of Palm Springs to carry out the purposes of and exercise the powers granted to
Successor Agencies in accordance with Assembly Bill X1 26 (ABX1 26), Section 1.85 of
Division 24 of the Health and Safety Code (the "Dissolution Act°); and
WHEREAS, the Oversight Board, in accordance with the provisions of the California
Health and Safety Code Section 37179 (a), has been formed to carry out the purposes
and exercise the powers granted to Oversight Boards in accordance with Assembly Bill
X1 26 (ABX1 26), Section 1.85 of Division 24 of the Health and Safety Code; and
WHEREAS, on March 16, 2011, the Community Redevelopment Agency and the City
of Palm Springs approved the transfer of all known real property assets then owned by
the Agency to the City; and
WHEREAS, the Dissolution Act requires the preparation and submittal to the State
Controller's Office of an Asset Transfer Assessment prepared by the Successor Agency,
showing the assets that were owned by the Agency and transferred to the Successor
Agency upon the dissolution on February 1, 2012; and
WHEREAS,the State Controller ordered any transfers of properties undertaken after
January 1, 2011 to be "unwound" and the properties returned to the Successor Agency;
and
WHEREAS, it is the City's position and the Successor Agency's position that all of the
properties described above are in the hands of the City, not the Successor Agency
because of the March 16, 2011 transfer; and
WHEREAS, AB 1484 suspends the land disposition process described in the
Dissolution Act, and provides certain flexibility and local benefits in connection with
property disposition, including Section 34181(a), which allows the Oversight Board to
transfer governmental purpose property to the appropriate public entity; and
Oversight Board Resolution No. 012
Page 2
WHEREAS, in accordance with the provisions of the California Health and Safety
Code Section 37181, the Oversight Board may "direct the successor agency to transfer
ownership of those assets that were constructed and used for a governmental purpose,
such as roads, school buildings, parks, police and fire stations, libraries, and local agency
administrative buildings, to the appropriate public jurisdiction . . .." [California Health and
Safety Code Section 34181]; and
WHEREAS, AB 1484 also allows transfer of real property for a Successor Agency that
has received a DOF Finding of Completion (Section 34191.3) and within six months after
receipt of a Finding of Completion, has submitted a long-range property management
plan for the real property of the Dissolved RDA for approval by the Oversight Board and
the DOF (Section 34191.5(b)); such property management plan must include an
inventory (with specified information) about each property, and address the use or
disposition of each property (Section 34191.5(c)).
NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF PALM SPRINGS AS FOLLOWS:
SECTION 1. The Oversight Board hereby rates and confirms the March 16,
2011 transfer of the city governmental use properties to the City identified on Exhibit "A"
to this Resolution.
SECTION 2. The Oversight Board hereby approves the Asset Transfer
Assessment and Asset Transfer Questionnaire and authorizes its submittal to the State
Controller's Office and other relevant agencies.
SECTION 3. Subject to its adoption by the Successor Agency, the Oversight
Board directs the Clerk/Secretary to cause the transmission of the Asset Transfer
Assessment and Asset Transfer Questionnaire to the State Controller's Office, and also
post the forms on the City's website.
SECTION 4. The Resolution will become effective three business days after its
adoption.
PASSED, APPROVED AND ADOPTED BY THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT
CHAIRPERSON
AGENCY THIS 4th DAY OF DECEMBER, 2012.
Oversight Board Resolution No.012
Page 3
ATTEST:
CLERK/SECRETARY
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, Clerk/Secretary, to the Oversight Board of the Successor
Agency to the Palm Springs Community Redevelopment Agency, hereby certify that
Resolution No. 012 is a full, true and correct copy, and was duly adopted at a regular
meeting of the Oversight Board on December 4, 2012, by the following vote:
AYES:
NOES:
ABSTAIN
ABSENT:
EXHIBIT"A"
CITY GOVERNMENTAL USE PROPERTIES
Francis Stevens Park APN 505-325-003
Convention Center North Parking Lot APNs 508-023-012,013,014
Village Green APN 513-153-017
Sunrise Park APNs 502-200-001,002
Palm Springs Visitor Center APN 504-040-001-8
STATE CONTROLLER'S OFFICE
ASSET TRANSFER ASSESSMENT
ASSEMBLY BILL X1 26
FORMER REDEVELOPMENT AGENCY NAME Community Redevelopment Agency of the City of Palm Spnng 11-DI GIT ID# 95-6000757
SUCCESSOR AGENCY City of Palm Springs DATE PREPARED 10-May-12
CONTACT NAME John Raymond PHONE 760-W3-8228 TITLE Director of Community and E-MAIL ADDRESS iohn.raymondfdoalmsodnosca.gov,
Economic Develo ment
A B C
D E
RDA IF THE ASSET WAS TRANSFERRED TO A CITY,COUNTY,OR WAS THE ASSET CONTRACTUALLY WAS THE
CARRYING VALUE AS OF OTHER PUBLIC AGENCY BETWEEN JANUARY 1,2011 AND COMMITTED OR ENCUMBERED TO A TRANSFER
DECEMBER JANUARY JANUARY 31,2012 EXCLUDE HOUSING ASSETS): THIRD PARTY AFTER JUNE 29,2011? REVERSED?
ASSET DESCRIPTION 31,2010 31,2012 TRANSFER DATE PUBLIC AGENCY YES/NO IF YES,DATE YES/NO
PSL-315 Subleasehold(Land) 7800,000 0 3/16/2011 City of Palm Springs
no rig
Cork n Bottle Land held for resale 619,125 0 3/16/2011 City of Palm S rin s no no
Prairie Schooner Parcel Land held for resale 2,378.893 0 3/16/2011 City of Palm Springs no no
Plaza Theater(Building) 895,220 0 3/16/2011 City of Palm Springs no no
Casa del Camino Property Land held for resale 593,871 0 3/16/2011 Cityof Palm Springs no no
McKinney Parcel(Land held for resale 6,325 0 3/16/2011 Cit of Palm S dos no no
Catholic Church Parkin Lot Land held for resale 685,000 o 3/16/2011 City of Palm S rin s no no
Blue Coyote Parkin Lot Land held for resale 141,500 0 3/16/2011 C8 of Palm S rin s no no
Vineyard Parkin Lot Land held for resale 482,45 0 3/16/2011 Cit of Palm S rin s no no
Food Court Parkin Lot Land held for resale 341,826 0 3/16/2011 Ci of Palm S rin s no d
Desert Hotel Property Land held for resale 263,026 0 3/16/2011 Cit of Palm S rin s no
HenryFrank Arcade Parkin Lot(Land held for resale 266,673 0 3/16/2011 Cit of Palm S rin s no
Villa a Green Land+Buildin s 184,495 0 3/16/2011 Ci of Palm S rin s no Palm S rin s Visitor Center Land 1,206,943 0 3/16/2011 Cit of Palm S rin s no Convention Center Parkin Lot Land 2,585,890 0 3/16/2011 Cit of Palm S rin s no Frances Stevens Park Land 525.575 0 3/16/2011 Cd of Palm S rin s no
Sunrise Park Land+Buildings) 3,302,981 0 3/16/2011 City of Palm Springs
no no
Sweeper/Scrubbers 2 100,309 0 3/16/2011 City of Palm Springs no no
Various Street Improvement Projects 761,880 0 3/16/2011 City of Palm S nn s no no
Storm Drain Improvement Project 570,666 0 3/16/2011 CN of Palm S dos rig no
E uitec Parcel Land held for resale 122,520 0 Written off as of 6/30111 Pro ert sold 2008 N/A N/A
E steen Parcel' Land held for resale -896,450 0 Written off as of 6/30/11 Pro ert sold 2005 N/A N/A
Patel Parcel' Land held for resale 70,255 0 Written off as of 6/30/11 Pro a sold 1997 N/A N/A
Animal Shelter 943,655 0 3/16/2011 Ci of PalmSprings no no
Downtown LeasTrasehold
Enclosure 387 354 0 3/16/2011 City of Palm Springs no no
Foster Leasehold 372,383 0 3/16/2011 Cit of Palm Springs no no
Land for Fire Station 230,000 0 Wrtten off as of 6/30/12 Pnopenv sold 2006 N/A N/A
NW Corner Tahquitz&Sunrise Land 2,576,897 0 Written off as of 6/30/12 Property exchanged new property sold 2005 N/A �NJA
Duplicate-Desert Hotel Pro ert 171,401 0 Written off as of 6/30112 Duplicate of Desert Hotel Pro pert Above N/A
Value as of June 30,2010--do not have data on December 31,2010
SUPPLEMENT TO:
STATE CONTROLLER'S OFFICE
- - -
_., ASSET TRANSFER QUESTIONNAIRE
ASSEMBLY BILL X1 26
- - - --. -
FORMER REDEVELOPMENT AGENCY NAME:— - Community Redevelopment Agency of the C_ ity of Palm Springs
DESCRIPTION --_ - Amount To Date
Direct Cash Transfers - - --
Prairie Schooner Parcel Lease Revenue from Tribe
$3,833.33/month x 13 months (Jan 1, 2011-Jan 31 2012) $49,833.29 _ General Fund ongoing monthly
Palm Springs Fudge Shoppe Revenue($1,652.42/mo x 13 months $21,481.46 General
Fund monthly--
Fund ongoing monthly
(
Cork n Bottle Revenue $2,750/mo x 13 months $35,750.00 -
- .__ongoing
RDA Loan Payments 1/11/11 through 1131112
Repayment of FY 09/10 annual loan for operational costs $1,466,785.00 General Fund 6/15/2011
Annual Interest payment on above loan_ $88,007.00 General Fund 6/15/2011
Repayment of FY 09/10 annual loan for operational costs $545,000.00 General Fund 6/15I2011
Annual Interest payment on above loan $32,700.00 General Fund _ _ _6/15/2011
Annual Interest on loans payments $73,620.00 Wastewater 6/1/2011
--- - _ - -
Annual principal and interest payment on 11/29/06 loan $101,106.00 _ Sustainability 6/30/2011
-- -
Repayment of 11/29/06 loan balance $1,095,759.00 Sustainability 1/18/2012
Interest payment on above loan for 6.5 months only _ $29,676.81 Sustainability 1/18/2012
TOTAL RDA LOAN PAYMENTS $3,432,653.81
OVERSIGHT BOARD
FOR THE SUCCESSOR AGENCY TO THE
PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY
BOARD REPORT
MEETING DATE: December 4, 2012 NEW BUSINESS
TITLE: APPROVING AN ASSET TRANSFER ASSESSMENT AND ASSET
TRANSFER QUESTIONNAIRE AND AUTHORIZING ITS SUBMITTAL TO
THE STATE CONTROLLER'S OFFICE, AND RATIFYING AND
CONFIRMING THE TRANSFER OF CERTAIN REAL PROPERTY FOR
CITY GOVERNMENTAL PURPOSES TO THE CITY
INITIATED: Department of Community & Economic Development
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE OVERSIGHT BOARD
OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY APPROVING AN ASSET TRANSFER
ASSESSMENT AND ASSET TRANSFER QUESTIONNAIRE AND
AUTHORIZING ITS SUBMITTAL TO THE STATE CONTROLLER'S OFFICE,
AND RATIFYING AND CONFIRMING THE TRANSFER OF CERTAIN REAL
PROPERTY FOR CITY GOVERNMENTAL PURPOSES TO THE CITY
2. Direct the Clerk of the Successor Agency to cause the transmission of the Asset
Transfer Assessment and Asset Transfer Questionnaire to the State Controller's
Office, and to post the report to the City's website.
BACKGROUND AND ANALYSIS:
In January, 2011, the Governor proposed ending the 425 local redevelopment agencies
in California, in a move to secure $1.7 billion in local property taxes to be used to patch
the State's $25 billion budget deficit. The Legislature passed AB 1X 26, which was
intended to abolish redevelopment agencies by October 1, 2011: it required that all
agency activities be terminated, except for the implementation of existing obligations.
The unwinding of a redevelopment agency would be overseen by a successor entity
designed to liquidate the Agency's assets as rapidly as possible.
While the Governor's proposal was indeed drastic, it was not accompanied by any
specific bill language, leaving cities and counties during early 2011 uninformed on how
the legislation would be implemented. Once published, this legislation was seen to be
Item No . 3 .A.
Oversight Board Report
December 4, 2012
Page 2—Approval of Asset Transfer Form
harmful to Palm Springs' effort to improve the community through redevelopment. In the
area of property disposition, the bill required that Property of the Agency be handled as
follows:
"Section 34177. (a) Successor agencies are required to do all of the
following:
....(3) (e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board. Such disposal is to be done
expeditiously and in a manner aimed at maximizing value. Proceeds from
asset sales and related funds that are no longer needed for to wind up the
affairs of the agency, as determined by the oversight board, shall be
transferred to the county auditor-controller for distribution as property tax
proceeds under Section 34188."
Subsequent legislation, discussed in more detail later in this staff report, was adopted
that allows the oversight board to "direct the successor agency to transfer ownership of
those assets that were constructed and used for a governmental purpose, such as
roads, school buildings, parks, police and fire stations, libraries, and local agency
administrative buildings, to the appropriate public jurisdiction . . .." [California Health and
Safety Code Section 34181].
After the redevelopment dissolution bills became effective on June 29, 2011, agencies
were prohibited from entering into any new agreements until they have enacted an
ordinance committing to make the payments as required by AB 1X 27. On December
29, 2011, the California Supreme Court upheld AB 1X 26 (the "Dissolution Act"), which
dissolved all of the redevelopment agencies in the State of California, and struck down
AB I 27, which allowed redevelopment agencies to remain in existence if such agency
opted to the "Voluntary Alternative Redevelopment Program" ("VARP"). The Court
changed the periods covered by the EOPS and IROPS, for example, and the date of
dissolution was moved from October 1, 2011 to February 1, 2012 and certain other
deadlines were moved forward by four months.
The Agency's assets fell into several categories:
1. Property held for resale, often as part of an assemblage for redevelopment
purposes
2. Property held as community assets, typically parking facilities or other support
facilities
3. Land held for Low- and Moderate Income Housing purposes
4. Property conveyed from the City to the Agency under a financing arrangement
5. Other assets, including equipment and physical improvements paid for by the
Agency.
Under the Dissolution Act, Low- and Moderate Income Housing assets were transferred
Oversight Board Report
December 4, 2012
Page 3—Approval of Asset Transfer Form
to the Housing Successor Agency outside the purview of the Oversight Board.
Transfer of Agency-Owned Property to the City of Palm Springs
On March 16, 2011, the City and Community Redevelopment Agency approved the
transfer of Agency property to the City of Palm Springs pursuant to Sections 33430 and
33432 of the California Health & Safety Code.
One group of properties transferred to the City were considered Property Held for
Resale, acquired as part of land assembly or for redevelopment purposes; or assets of
the Agency acquired from private parties. These properties generally include downtown
parking lots and the Plaza Theater. Excluded were parcels acquired with funds acquired
with Low- and Moderate-Income Housing Funds, which were required to be appraised
and sold for fair market value, with the proceeds remitted back to the Low-Mod Fund.
(Those parcels are now under the ownership of the Housing Successor Agency, a
separate entity from the Successor Agency.) The largest affordable housing parcel, 3.6
acres at the southeast corner of Indian Canyon Drive and San Rafael Road, was
undergoing an MAI appraisal in early 2011 for that exactly purpose.
In transferring this set of properties, the Agency made the finding in that California
Health & Safety Code Section 33430 and 33432 allowed the Agency to transfer
properties to the community or any other public agency without competitive bidding and
both the Agency and the City desired to transfer the properties to the City of Palm
Springs. Included in the transfer were the following parcels:
• PSL-315 Subleasehold. This is interest in certain real property (the "Leasehold")
within Merged Project Area No. 2, generally being 9.62 acres located at the
intersection of Amado Road and Avenida Cabelleros. The City is the Master
Lessee under Business Lease No. PSL 315 ("Original Lease"). The Master
Lease has been amended pursuant to: 1) Amendment No. 1 to PSL-315
approved by the BIA on October 13, 1995; 2) the First Amendment to Business
Lease-315, dated April 7, 2004, and approved by the BIA on May 26, 2004; and
3) the Second Amendment to Business Lease No. PSL-315, dated February 9,
2006, and approved by the BIA on February 9, 2006. The Original Lease as
amended by the three amendments is collectively referred to in this Agreement as
the "Master Lease."
• The Cork n Bottle. This 2,094 square feet property, referred to as APN 513-081-
017, is located at 342-344 North Palm Canyon Drive near Amado Road, within
Merged Project Area No. 1. The transfer of the Property is subject to the terms
of the tenant Lease with Moustapha EI-Khalil, executed on September 3, 2004
• The Prairie Schooner Parcel. These three parcels bear APN Numbers 508-055-
008, 508-055-009, and 508-055-007 and are generally south of Andreas Road
and East of Calle El Segundo in Section 14. The Property is subject to the terms
Oversight Board Report
December 4, 2012
Page 4—Approval of Asset Transfer Form
of the Repayment Agreement with the Agua Caliente Band of Cahuilla Indians for
the construction of a parking lot, and a Disposition and Development Agreement
with O & M HR, LLC for the development of a 500-room hotel.
• The Plaza Theater. Located at 124-132 South Palm Canyon Drive (APN 513-
144-008). The Property is subject to the terms of the Lease with the Partnership
for the Performing Arts and certain easements and leases with the Wessman
Family Trust and Plaza Investment Company for certain courtyard, alleyway, and
trash area access.
• Casa del Camino Property. This 32,852 s.f. property is located at 1479 N. Palm
Canyon Drive (near Stevens Road), APN 505-182-004.
• The McKinney Parcel. This 6,950 s.f. vacant parcel is located at 190 West Sunny
Dunes, APN 508-131-009. The Property is subject to the terms of the Easements
for underground utility lines and ingress/egress off Sunny Dunes, dated 1991.
• Catholic Church Parking Lot. This 39,440 s.f..lot at the northwest corner of Alejo
and Belardo Road (APN 505-324-002). The property was acquired by the
Agency in 1983 and is subject to the terms of an agreement with Our Lady of
Solitude Catholic Church for use of site for parking.
• Blue Coyote Parking Lot and driveway. These two parcels, at 400 North Belardo
Road and 425 North Palm Canyon Drive (513-082-023&040, 23,790 s.f. and
3,218 s.f.) were acquired by the Agency in 1981 and 1983.
• Vineyard Parking Lot. 42,729 s.f of improved parking and a horse carriage
enclosure, APN 513-153-015, 016 & 025, in the 200 Block of South Belardo
Road. The property was acquired by the Agency in 1977. The transfer of the
Property is subject to the terms of a Lease for the use of the carriage enclosure
(such lease has since been terminated) and is conditioned on the redevelopment
and use of the property in conformity with the Merged Project Area No. 1
Redevelopment Plan.
• Food Court Parking Lot. This 19,313 s.f. of improved parking (APN 513-082-
043), is on the 300 Block of North Belardo Road. It was acquired by the Agency
through a land exchange in 1997. The Property is subject to the terms of an
Easement for Access to the trash enclosure.
• The Desert Hotel property. This.06 acre parcel, APN 513-091-003, is located at
285 North Indian Canyon Drive, within Merged Project Area No. 1, and was
acquired by the Agency in 2005.
Oversight Board Report
December 4, 2012
Page 5—Approval of Asset Transfer Form
• The Henry Frank Arcade Parking Lot, a 3,682 s.f. improved parking lot, APN 513-
082-043, located at 261-265 North Indian Canyon Drive. The property is the
northern half of the Henry Frank Arcade Parking Lot, within Merged Project Area
No. 1, and was acquired by the Agency in 1989.
Transfer of City Governmental Purpose Property to the City.
The City and Agency had a second category of properties, city governmental use
properties, transferred to the Agency in late 2007 and 2008 subject to Land Notes payable
to the City. On March 16, 2011, pursuant to resolutions of the City and the Agency, these
properties were conveyed back to the City and the Land Notes evidencing Agency
obligations were extinguished. These properties include:
• Frances Stevens Park: a 3.48 acre park and cultural facilities (APN 505-325-
003), including the Palm Canyon Theater (538 North Palm Canyon Drive) and
the Desert Art Center (550 North Palm Canyon Drive). The Property is subject
to a lease of the Palm Canyon Theater and the Desert Art Center and a Theater
Use Agreement with the Palm Springs International Film Festival for the use of
the Palm Canyon Theater; and a Lease Agreement between Desert Art Center,
Inc. of the Coachella Valley.
• Convention Center North Parking Lot (APNs 508-023-012, 013, and 014). The
Property was subject to the provisions of the Disposition and Development
Agreement, which provides for the sale of the property to the Developer per the
terms of the Agreement.
• Village Green (211 South Palm Canyon Drive; APN: 513-153-017). The
transfer of the Property is subject to the terms of any easements and leases with
the Palm Springs Historical Society, the Agua Caliente Band of Cahuilla Band
Indians, and Palm Springs Fudge.
• Sunrise Park (1901 E. Baristo Road; APNs 502-200-001 and 502-200-002).
The Property is subject to the terms of any easements and leases and
Agreements with the Mizell Senior Center, the Boys & Girls Club, the Palm
Springs Power, and any other users of facilities in the Park.
• Palm Springs Visitor Center (2901 North Palm Canyon Drive; APN: 504-040-
001-8). The Property is subject to the terms of any easements and leases and
Agreements with the Agua Caliente Band of Cahuilla Band and the Culver Nichols
Charitable Trust.
Other Agency Assets
In addition to the properties listed above, the Dissolution Act (approved in June, 2011)
required all assets owned by the Agency as of January 1, 2011 to be transferred to the
Oversight Board Report
December 4, 2012
Page 6-Approval of Asset Transfer Form
Successor Agency. Again, while there are challenges to the retroactivity of the Act, the
Agency needs to list all of the assets on its books as of January 1, 2011. The most
current inventory of assets as of that date was the year-end inventory as of June 30,
2010. Also included in that inventory were:
1. Sweeper Scrubbers. The Agency purchased two sweeper scrubbers for
downtown maintenance. They remain on the Agency's books.
2. Various Street Improvement Projects, including South Palm Canyon widening
related to the bridge project, and the widening of Vista Chino at Sunrise. These
were related to adjacent projects and should not be assets "owned" by the
Agency.
3. Storm Drain (Line 8) along Sunrise Way, from Tahquitz to Ramon. The Agency
funded $599,998.04 of a $4 million storm drain project in Merged Project Area No.
2. The Agency made appropriate findings at the time of the contribution under
Health & Safety Code Section 33445 that allowed tax increment to be spent on
City-owned assets, so the storm drain (or the portion of the storm drain) itself is
owned by the City, not the Agency.
4. Eouitec Parcel. This parcel is a small wedge shaped parcel, part of the Springs
Shopping Center and was acquired by Endure Investments, LLC in accordance
with a Disposition and Development Agreement dated June 18, 2008. It was
removed from the fixed asset report in April, 2011.
5. Epsteen Parcel. This was the main Agency-owned portion of the former City
dumpsite, now part of the Springs Shopping Center which began construction in
2006. The parcel was sold to Endure Investments, formerly known as Geiger,
LLC in accordance with a Disposition and Development Agreement dated
November 16, 2005. It was removed from the fixed asset report in April, 2011.
6. Patel Parcel. This was a property acquired through eminent domain as part of
Disposition and Development Agreement with Linsu, LLC in 1997, and was
immediately resold to the developers. It is now part of the Desert Shadows (now
Desert Sun) Resort. It was removed from the Fixed Asset Report in April, 2011.
7. Animal Shelter. Approximately $943,000 of the Agency's contribution toward the
construction of the new Animal Shelter was listed as an asset of the Agency. The
Agency made appropriate findings at the time of the contribution under Health &
Safety Code Section 33445 that allowed tax increment to be spent on City-owned
assets, so the Shelter itself is owned by the City, not the Agency.
8. Downtown Trash Enclosure. The Agency invested in the design and construction
of a multi-user trash enclosure and alleyway improvements in the downtown.
Improvements included the construction of a secured enclosure, 2 state of the art
Oversight Board Report
December 4, 2012
Page 7-Approval of Asset Transfer Form
compactors for refuse and cardboard, recycling area, hot water hose, keyless
entry gate and other enhancements. In addition, the alleyway was enhanced with
new pavers, lighting and decorative elements. The project was completed in
November 2008 and is on the Agency's books at $372,383.40. Like the Animal
Shelter above, the Agency spent funds on City-owned property after making the
appropriate findings.
9. Foster Leasehold. The Foster Leasehold pertains to the site of the Convention
Center at the southwest corner of Avenida Caballeros and Amado Road. This is
an Indian leasehold property and was part of the assembly for the Convention
Center, Wyndham (now Renaissance) and surrounding properties, the 30 +/-
acres known as PSL 315. The City became the holder of the Master Lease in
1989. The Agency has not had an interest in this portion of PSL 315 since 1989
though more documentation of the transactions will be required prior to writing it
off the Agency's asset list.
10.Land for Fire Station. The property was acquired by the Agency for the eventual
relocation of Fire Station No. 1, but was transferred to the Agua Caliente Band of
Cahuilla Indians (Tribe) per Amendment No. 1 of the DDA, dated August 7, 1996.
The parcel was sold to the Tribe soon after, though it was not taken into Indian
Trust until several years later. The property has been owned by USA BIA since
May 4, 2006. It is now the northwest corner of the Spa Casino site. It will be
properly written off the Fixed Asset Report as of June 30, 2012.
11.NW Comer of Tahouitz and Sunrise — This property was transferred to an Indian
allottee in a land exchange deal under which the Agency acquired a 7.9 acre
parcel at East Palm Canyon Drive, which it resold via a DDA for the BMW
Dealership in late 2005. It will be properly written off the Fixed Asset Report as of
June 30, 2012.
12.285 N. Indian Canyon Drive. Desert Hotel Property. There was an error in
accounting and the property was listed twice - once as "land held for resale" and
once as a "fixed asset." The duplicate will be properly written off the Fixed Asset
Report as of June 30, 2012.
With the exception of the Sweeper Scrubbers at the top of the list, it is the Successor
Agency's position that the other 11 properties listed here are not "owned" by the
Successor Agency.
Asset Transfer Assessment
One of the requirements under the Dissolution Act was the preparation and submittal to
the State Controller's Office of an Asset Transfer Assessment prepared by the
Successor Agency, showing the assets that were owned by the Agency and transferred
to the Successor Agency upon the dissolution on February 1, 2012. The State
Oversight Board Report
December 4, 2012
Page 8—Approval of Asset Transfer Form
Controller also ordered any transfers of properties undertaken after January 1, 2011 to
be "unwound" and the properties returned to the Successor Agency. However, several
legal challenges to the retroactivity of the Dissolution Act were made by several cities,
and the issue remains unclear. As a result, it is the City's position and the Successor
Agency's position that all of the properties described above are in the hands of the City,
not the Successor Agency.
However, this position leaves certain properties in legal limbo. In 2011, the City agreed
to sell the Prairie Schooner parcel described above to the same parties which the former
Agency had a Disposition and Development Agreement, but the City is unable to
produce a clean title to the property until the title company can be satisfied the property
was legally transferred from the Agency to the City, which under the Dissolution Act
would have required Oversight Board and State approval.
The Dissolution Act calls for the Successor Agency, under the direction of the Oversight
Board, to dispose of real property it received from the Dissolved RDA either for limited
public uses, or for disposition into the private market expeditiously and with a view
toward maximizing value, with the disposition proceeds ultimately made available for
distribution to the affected taxing entities. At the time of the City's transaction on the
Prairie Schooner, the Dissolution Act was being challenged in the Supreme Court and
there was no Oversight Board created.
The first step in obtaining the State's approval of the asset transfers is to submit the form
to the State Controller's Office for review.
Legal Changes Due to AB 1484
As discussed briefly above, in June, 2012 the legal landscape evolved, when the
Governor signed Assembly Bill 1484, Chapter 26, Section 17 (AB 1484), a
redevelopment reform act which created new reporting and audit requirements on
Successor Agencies and Oversight Boards. Health and Safety Code Section 34179.5
provides new procedures for reviewing the available cash assets of the Dissolved RDA
(the "Review") and there were numerous other amendments made by AB 1484 that will
have significant impacts on the dissolution process for all successor agencies, including
the requirement to adopt a Long-Range Property Management Plan that governs the
disposition and use of the former redevelopment agency property, and further
requirements by the State for the "sweep' of unobligated Agency funds.
These also include very severe penalties for non-compliance with these provisions, but
once the Successor Agency does pay the full amount of unobligated funds, the
redevelopment agency may receive a "Finding of Completion" which entitles the
successor agency to certain "safe harbor" provisions that affect the ownership of
property and the repayment of certain City loans.
Oversight Board Report
December 4, 2012
Page 9—Approval of Asset Transfer Form
Based on the Oversight Board's approval of the first Due Diligence Review required
under AB 1484, of the unobligated Low- and Moderate-Income Housing Fund Balance,
the Successor Agency remitted to the County Auditor-Controller an amount in excess of
$7.7 million on November 15, 2012. This is the first required payment under AB 1484
and the first completion milestone toward a Finding of Completion (FOC) letter from the
State.
Land Disposition Process under AB 1484
AB 1484 appears to suspend the land disposition process described in the Dissolution
Act, and to provide certain flexibility and local benefits in connection with property
disposition. As discussed above, one provision, Section 34181(a) appears to allow the
Oversight Board to transfer governmental purpose property to the appropriate public
entity. One of the actions staff is recommending is that the Oversight Board ratify and
confirm the March 16, 2011 transfer of certain city governmental use properties to the
City.
In addition, the new law also appears to allow transfer of real property for a Successor
Agency that has received a DOF Finding of Completion (Section 34191.3). Within six
months after receipt of a Finding of Completion, the Successor Agency must submit a
long-range property management plan for the real property of the Dissolved RDA for
approval by the Oversight Board and the DOF (Section 34191.5(b)). The property
management plan must include an inventory (with specified information) about each
property, and address the use or disposition of each property (Section 34191.5(c).
However, it is not clear if a Successor Agency can continue to follow the Dissolution Act
path and dispose of property under Oversight Board direction to maximize value
received for distribution to the affected taxing entities, or is instead compelled to follow
the alternative path set out in AB 1484.
Property Management Plan
AB 1484 created a number of benefits for local communities in the area of property
disposition. The proviso that any property "funded with tax increment" was subject to
disposition was deleted. The forced disposition of properties was suspended, with any
forced disposition not applicable if an FOC is issued to a Successor Agency.
In addition, it created a process for dealing with housing assets and public purpose
properties, including:
• 10 day notice and Oversight Board public meeting
• DOF may extend its review of the Oversight Board action to 60 days
Nevertheless, permitted uses under a Property Management Plan include:
Oversight Board Report
December 4, 2012
Page 10—Approval of Asset Transfer Form
• Retention of the property for governmental use
• Retention of the property for future development
• Sale of the property
• Use of the property to fulfill an enforceable obligation
Upon approval of the property management plan, the properties of the Dissolved Agency
are to be placed in a Community Redevelopment Property Trust Fund administered by
the Successor Agency in accordance with the approved property management plan
(Sections 34191.4(a) and 34191.5(a)).
If the property management plan calls for use or liquidation (sale to obtain revenues) of a
property for a project identified in an approved redevelopment plan, that property is to be
transferred to the Sponsoring Community for that purpose. If the property management
plan calls for the liquidation of the property or use of revenues from the property for
purposes other than a project identified in a redevelopment plan or other than to fulfill an
enforceable obligation, the proceeds from the sale are to be distributed as property taxes
to the taxing entities (Section 34191.5(c)(2)(A) and (B)).
In short, use of property placed in the Community Redevelopment Property Trust Fund
in accordance with an approved property management plan enables the Successor
Agency and the Sponsoring Community to direct the use of specified properties and
revenues generated from those properties for community development activities,
including affordable housing, in a manner somewhat similar to the uses of property
formerly implemented by the Dissolved RDA.
The processing for preparing the Long Term Property Management Plan for State
approval is as follows:
• Submit plan for Oversight Board and DOF approval no later than 6 months
following issuance of FOC
• Upon Property Management Plan approval, the property is transferred to a
Community Redevelopment Property Trust Fund administered by the
Successor Agency in accordance with the approved plan
The information on each of the properties contained in the Property Management Plan
must include:
• Date of acquisition
• Value at acquisition and estimated current value
• Purpose for acquisition
• Income generated
• History of contamination/remediation
• Potential for TOD/planning objectives
• History of development proposals and activity
Oversight Board Report
December 4,2012
Page 11 —Approval of Asset Transfer Form
The proposed use, retention of disposition of each of the properties in the Property
Management Plan must include:
• Use or disposition of all properties shall be described as:
o Sale
o Retention for governmental use
o Retention for future development
o Use to fulfill an enforceable obligation
• Project identified in an "approved redevelopment plan"
• Transferred to city/county
• Sale proceeds shall be distributed to other Taxing Entities if:
o Property will be liquidated
o Lease or other revenue will be used for any purpose other than an
Enforceable Obligation or a project identified in an "approved
redevelopment plan."
No transfer to a Successor Agency or city/county unless Property Management Plan is
approved by the Oversight Board and DOF.
This action is only the approval of the Asset Transfer Assessment and not a Property
Management Plan. Information on AB 1484 and the Plan is provided to the Board for
context on the property issue. It is likely that the Property Management Plan, when
submitted to the Oversight Board for approval in 2013, will recommend retaining some
properties and disposing of others, particularly those acquired for resale or development.
PROPOSED RESOLUTION
RESOLUTION TEXT WILL BE SENT UNDER SEPARATE
COVER AS ADDITIONAL MEETING MATERIALS.
STATE CONTROLLER'S OFFICE
ASSET TRANSFER ASSESSMENT
ASSEMBLY BILL X1 26
FORMER REDEVELOPMENT AGENCY NAME Community Redevelopment Agency of the City of Palm Springs 11-0IGIT ID# 95-6000757
SUCCESSOR AGENCY City of Palm Springs DATE PREPARED 10-May-12
CONTACT NAME John Raymond PHONE 760-323-8228 TITLE Directorof Community and E-MAIL ADDRESS iohn.revmondColpalmsorinpsca.cov
Economic Development
A B C D E
RDA IF THE ASSET WAS TRANSFERRED TO A CITY,COUNTY,OR WAS THE ASSET CONTRACTUALLY WAS THE
CARRYING VALUE AS OF OTHER PUBLIC AGENCY BETWEEN JANUARY 1,2011 AND COMMITTED OR ENCUMBERED TO A TRANSFER
DECEMBER JANUARY JANUARY 31,2012 EXCLUDE HOUSING ASSETS): THIRD PARTY AFTER JUNE 29,2011? REVERSED?
ASSET DESCRIPTION 31,2010 31,2012 TRANSFER DATE PUBLIC AGENCY YES/NO IF YES,DATE YES/NO
PSL-315 Subleaseholtl Land 7,800,000 0 3/16/2011 City of Palm Springs no no
Cork n Bottle Land held for resale 619,125 0 3/16/2011 CRY of Palm Springs no no
Prairie Schooner Parcel Land held for resale 2,378 893 0 3/16/2011 City of Palm Springs no no
Plaza Theater Buildin 895,220 0 3/16/2011 City of Palm Springs no no
Casa del Camino Property Land held for resale 593,871 0 3/16/2011 City of Palm Springs no no
McKinney Parcel Land held for resale 6,325 0 3/16/2011 City of Palm S rin s no no
Catholic Church Parkin Lot Land held for resale 685,000 0 3/16/2011 City of Palm Springs no no
Blue Coyote Parkin Lot Land held for resale 141,500 0 3/16/2011 City of Palm Sronngs no no
Vineyard Parking, Lot Land held for resale 482,457 0 3/16/2011 City of Palm Springs no no
Food Court Parkin Lot Land held for resale 341,826 0 3/16/2011 CRY of Palm S rin s no no
Desert Hotel Property Land held for resale 263,026 0 3/16/2011 City of Palm Springs no no
HenryFrank Arcade Parkin Lot Land held for resale 266,673 01 3/16/2011 City of Palm Springs no no
Village Green Land+Buildings) 184,495 0 3/1612011 City of Palm Springs no no
Palm Springs Visitor Center Land 1,206,943 0 3/16/2011 City of Palm Springs no no
Convention Center Parkin Lot Land 2,585,890 0 3/16/2011 City of Palm Springs no no
Frances Stevens Park Land 525,575 0 3/16/2011 City of Palms rin s no no
Sunrise Park(Land+Buildings) 3.302,981 0 3/16/2011 City of PalmSprings no no
Sweeper/Scrubbers 2 100,309 0 no no
Various Street Improvement Pro acts 761,880 0 no no
Storm Drain Improvement Pro'ect 570.666 0 no no
E uitec Parcel Land held for resale 122,520 01 Apr-1 1 no no
E steen Parcel Land held for resale -896,450 0 Apr-1 1 no no
Patel Parcel r Land held for resale 70,255 0 A r-11 no no
Animal Shelter 943,655 0 no no
Downtown Trash Enclosure 387,354 0 no no
Foster Leasehold 372,383 0
no no
Land for Fire Station 230,000 0 6/30/2012 no no
NW Corner Tah uitz&Sunrise Land 2,576,897 0 6/30/2012 no no
!Duplicate-Desert Hotel Property 171,401 0 6/30/2012 no no
Value as of June 30,2010—do not have data on December 31,2010
SUPPLEMENT TO:
STATE CONTROLLER'S OFFICE
ASSET TRANSFER QUESTIONNAIRE
ASSEMBLY BILL X1 26
FORMER REDEVELOPMENT AGENCY NAME: Community Redevelopment Agency of the City of Palm Springs
DESCRIPTION Amount To Date
Direct Cash Transfers
Prairie Schooner Parcel Lease Revenue from Tribe
$3,833.33/month x 13 months (Jan 1, 2011-Jan 31 2012) $49,833.29 General Fund ongoing monthly
Palm Springs Fudge Shope Revenue ($1,652.42/mo x 13 montl $21,481.46'1 General Fund ongoing monthly
Cork n Bottle Revenue ($2,750/mo X 13 months) $35,750.00, General Fund ongoing monthly
RDA Loan Payments 1/11/11 through 1131112
Repayment of FY 09/10 annual loan for operational costs $1,466785.00 General Fund 6/1/2011
Annual Interest payment on above loan $88:007.00 General Fund 6/1/2011
Repayment of FY 09/10 annual loan for operational costs $545,000.00, General Fund 6/1/2011
Annual Interest payment on above loan $32,700.00 General Fund 6/1/2011
Annual principal and interest payment on 11/29/06 loan $101,106*00 Sustainability 6/1/2011
Repayment of 11/29/06loan balance $1,095,759.00 Sustainability 1/18/2012
Interest payment on above loan for 6.5 months only $29,676.81 Sustainability 1/18/2012
TOTAL RDA LOAN PAYMENTS $3,359,033.81