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Home My WebLink About3/7/2018 - STAFF REPORTS - 2.A. O'VALM$A'P ti c v a FORN�P CITY COUNCIL AND SUCCESSOR AGENCY STAFF REPORT DATE: March 7, 2018 PUBLIC HEARING SUBJECT: AS SUCCESSOR AGENCY APPROVING THE SALE OF THE PROPERTY LOCATED AT 285 NORTH INDIAN CANYON DRIVE, (APN 513-091-003) TO THE CITY OF PALM SPRINGS IN THE AMOUNT OF $31,965, AND AS THE CITY COUNCIL APPROVING THE PURCHASE OF SUCCESSOR AGENCY-OWNED PROPERTY LOCATED AT 285 NORTH INDIAN CANYON DRIVE, (APN 513-091-003), IN THE AMOUNT OF $31,965 PURSUANT TO SECTION 34191.5(C) OF THE HEALTH AND SAFETY CODE FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY This action is to approve sale of the Successor Agency-owned property located at 285 North Indian Canyon Drive, known as the Desert Hotel Property with APN 513-091-003. As a Successor Agency property, its disposition must follow the requirements of Section 34191.5(c) of the California Health and Safety Code. This action would transfer ownership of the property to the City for $31,965 which is the property value approved by the State of California Department of Finance (DOF) in the Long Range Property Management Plan (LRPMP). RECOMMENDATION: 1. (Successor Agency) Approve the sale of the Desert Hotel Property to the City of Palm Springs in the amount of$31,965 and the execution of a grant deed. 2. (City Council) Approve the purchase of the Desert Hotel Property from the Successor Agency in the amount of $31,965 and the execution of a certificate of acceptance. 3. Authorize the City Manager and City Clerk to execute all necessary documents. ITEM NO. A° P City Council Staff Report March 7, 2018-- Page 2 Desert Hotel Property Purchase STAFF ANALYSIS: The requested action is for the sale of Successor Agency-owned property to the City. The property, located at 285 North Indian Canyon Drive (APN 513-091-003), is known as the Desert Hotel Property and identified as Property No. 2 in the Long Range Property Management Plan. The Desert Hotel Property is a Successor Agency owned property and its disposition must follow the requirements of Section 34191.5(c) of the California Health and Safety Code. This action would sell the property to the City for $31,695 the approved value in the LRPMP. Background The Desert Hotel property was purchased in January 2005 by the former Community Redevelopment Agency, (the "Agency") with redevelopment funds for $160,000. The site is 6,106 square feet in size. Aerial and street view photos of the property are shown in Attachment 1. The Agency purchased this parcel in order to tear down the blighted Desert Hotel on the land and to assemble this parcel along with adjacent parcels for a hotel development, which did not ultimately occur. Because the parcel is adjacent to City Fire Station No. 1, the City has an interest to purchase the property to expand the fire station. The State- approved value in the Long Range Property Management Plan (LRPMP) for this 6,106 square foot parcel is $31,965. The property was appraised at a value of $163,000 in August 2017. A Request for Proposals (RFP) inviting proposals from qualified bidders to purchase the property was posted on the City's website and notice of the opportunity was sent to all property owners within a 500 foot radius of the property along with a list of approximately 150 commercial brokers and developers as well as on OppSites, an online resource for cities and economic development professionals to share real property opportunities. One offer was received in the amount of $165,000. Upon further consideration, the City Council determined that it would be in the best interest of the City to retain this property for possible future expansion of the fire station. The provisions of the California Health and Safety Code Section 37181 allows the Oversight Board to "direct the successor agency to transfer ownership of those assets that were constructed and used for governmental purpose, such as roads, school buildings, parks, police and fire stations, libraries, and local agency administrative buildings".... The disposition plan in the LRPMP is to sell all Successor Agency-owned properties whether to the City or a private entity. At the time of the LRPMP preparation, the plan to sell all properties was to ensure that a finding of completion and approval of the LRPMP would not be delayed. Since the intended use of this property is for expansion of the fire station, a governmental use, it is the City's rationale that the property should be purchased at the minimum allowed in the LRPMP, subject to 02 City Council Staff Report March 7, 2018 -- Page 3 Desert Hotel Property Purchase approval of the Oversight Board and the State of California Department of Finance ("DOF"). Land Disposition Process under AB 1484 In 2012, the State approved a redevelopment reform act, AB1484, which changed a number of the processes related to the disposition of dissolved Redevelopment Agency assets. AB1484 provided certain flexibility and local benefits in connection with property disposition. At the time of dissolution, the Successor Agency held a total of twelve (12) properties from the dissolved Redevelopment Agency. These properties included sites assembled for future redevelopment, public parking lots and other real property. Disposition of these properties were not able to occur until the California Department of Finance ("DOF") issued a finding of completion and approved the Long Range Property Management Plan ("LRPMP") for the intended disposition of these properties. Assembly Bill 1X 26 added Health and Safety Code Sections 34191.1-34191.5 requiring that successor agencies present a LRPMP to their Oversight Board and submit the LRPMP to DOF no later than six months following the issuance of the finding of completion. The Successor Agency received its finding of completion from the DOF on January 2, 2014. The LRPMP was reviewed by the Oversight Board on December 12, 2013. Prepared in collaboration with a qualified dissolution and real estate consultant, the LRPMP contains detailed information on each property, such as the date and purchase of acquisition, parcel characteristics, estimate of the current value and any lease, rental or other revenues, histories of environmental contamination, and previous development proposals. The LRPMP outlined that the Successor Agency would sell the Desert Hotel parcel. The DOF-approved value in the LRPMP for this 6,106 square foot parcel is $31,965. The sales proceeds collected by the Successor Agency (net of transaction costs) would be transferred later to the county Auditor-Controller for dissemination to each of the affected taxing agencies of the former redevelopment project area. Although the LRPMP has been approved b the DOF, individual transactions are still PP Y required to go to the Oversight Board for approval. Upon approval by the City Council as the Successor Agency, the sale of the Desert Hotel property to the City will be scheduled for approval by the Oversight Board. The Oversight Board's approval of the disposition of the property will then be submitted to the DOF for review and approval. 03 City Council Staff Report March 7, 2018-- Page 4 Desert Hotel Property Purchase ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project' as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project' means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve a transfer of ownership of property, and is exempt from CEQA pursuant to Section 15378(b), in that a "Project' does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: The recommended action is to purchase the property for $31,965. As a taxing agency, the City will receive a share of 27% of the sales proceeds of the transaction ($8,630) into its General Fund from the County Auditor-Controller. The remainder of those sales proceeds will be allocated to other taxing entities, such as the school district and the County. SUBMITTED: Dlana R. Shay_ _ Jay lirfita, Director of Redevelopment Coordinator Com unity and Economic Development David H. Ready, Esq --- City Manager Attachments: 1. Desert Hotel Property Aerial and Street View Photos as ATTACHMENT ? os v rn • � I _ O m 7 S '� 1 CITY OF PALM SPRINGS PUBLIC NOTIFICATION s Date: March 7, 2018 Subject: Proposed Sale of the Desert Hotel Property at 285 North Indian Canyon Drive AFFIDAVIT OF PUBLICATION I, Cynthia A. Berardi, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on February 25, 2018. 1 declare under penalty of perjury that the foregoing is true and correct. Cynthia A. erardi, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Cynthia A. Berardi, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on February 22, 2018. 1 declare under penalty of perjury that the foregoing is true and correct. Cynthia A. Berardi, CMC Chief Deputy City Clerk PO Box 23430 mediagroup Green Bay,W154305-3430 Tel:760-778-4578/Fax 760-778-4731 �E Ci E:1 I. PAfiTOFr, EUSATODAYNE CR[ Email:legals@thedesertsun.com PROOF OF 2111 APR -9,uA &'rib& STATE OF CALIFORNIA SS. COUNTY OF RIVERSIDE CITY OF PALM SPRINGSILEGALS NOTICE OF PUBLIC MEETING PO BOX 2743 OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY PROPOSED SALE OF THE DESERT HOTEL PROPERTY AT 285 NORTH INDIAN I PALM SPRINGS CA 92263 CANYON DRIVE(APN 513-091-003) NOTICE IS HEREBY GIVEN pursuant to California Health and Safety Code Section 34181,'the Oversight Board of the Successor Agency to She Palm Springs I Community Redevelopment Agency will hold a public meeting on April 11, 2018. The Oversight Boartl meeting begins at 3:00 p.m., in the Large Conference Room at Palm Springs City Hall,3200'East Tahquitz Canyon Way, I am over the age of 18 years old,a citizen of the Palm springs. The purpose of the Oversight Board Meeting Is to consider resolution WI United States and not a party to,or have interest in approe the ale of the DeseR Hotel grope ry at 285 North Indian Ca ryon Drive,to the CiTy of Palm Springs,,in the amourt of$ 31,965, and so review it this matter.I hereby certify that the attached matters regarding the dispa'R'on of the property. The Desert Hotel grope is Identified as Property Number 2 in the Long-Range Properly Management Plan, advertisement appeared in said newspaper(set in I and is located at 285 North Indian Canyon O"Ye( sse sor Parcel No 513-09F003). type not smaller than non panel)In each and entire REVIEW OF INFORMATION:. The staff report and other supporting documents I are available for public review at The City Hall between the hours of 8:00 a.m. issue of said newspaper and not in an supplement and 6A0 p.m., Monday through' hursday,an or after Monday, April 2, 2018. p Y pp -Please contact the Office of the City Clerk at(760)323-82041f you would like to thereof on the following dates,to wit: F schedule an appointment to review these documents. n. PUBLIC.COMMENTS:'Response to this notice may he made verbally at the Public i Meeting andlor In writing before the meeting. .Written comments maybe, made to the Oversight Board by letter(for mail or hand delivery)to: 03/31/18 Anthony 1.Maps,City Clerk Oversigght Board Clerk/Secretary 3200 E.Tahquitz Canyon Way S' Palm Springs,CA 92262 1 acknowledge that I am a principal clerk of the u Si necesha ayuda con esta Carta,p orfavor flame a la Ciudad do Palm Springs y printer of The Desert Sun,printed and published puede,hablar con Felipe Primera telefono(760)323-8253 x 9742. 1 1 1 i ANTHONY J.ME11A weeklyin the City of Palm Springs,County of City clerk tYJ Oversight Board Riverside, State of California.The Desert Sun was aerkBecretary Published:March 31,2018 adjudicated a Newspaper of general circulation on March 24, 1988 by the Superior Court of the County of Riverside,State of California Case No. 191236. 1 declare under penalty of perjury that the foregoing is true and correct. Executed on this 2nd of April 2018 in Palm Springs,California. 41 D CLARANT Ad#:0002830371 P O:4/11 Meeting #of Affidavits:1 NOTICE OF PUBLIC HEARING CITY COUNCIL ACTING AS SUCCESSOR AGENCY OF THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY PROPOSED SALE OF THE DESERT HOTEL PROPERTY LOCATED AT 285 NORTH INDIAN CANYON DRIVE NOTICE IS HEREBY GIVEN that the City Council acting as the Successor Agency to the Palm Springs Community Redevelopment Agency will hold a public hearing on March 7, 2018. The City Council meeting begins at 6:00 p.m., in the Council Chamber at Palm Springs City Hall, 3200 East Tahquitz Canyon Way, Palm Springs, CA. The purpose of this hearing is to consider the sale of the Desert Hotel property at 285 North Indian Canyon Drive, to the City of Palm Springs, in the amount of $31,965, and to review matters regarding the disposition of the property, pursuant to California Health and Safety Code Section 34181. The Desert Hotel property is identified as Property Number 2 in the Long-Range Property Management Plan, and is located at 285 North Indian Canyon Drive (Assessor Parcel No. 513-091-003). REVIEW OF INFORMATION: The staff report and other supporting documents are available for public review at City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact the Office of the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review these documents. PUBLIC COMMENTS: Response to this notice may be made verbally at the Public Hearing and/or in writing before the hearing. Written comments may be made to the City Council acting as Successor Agency by email at cityclerk .palmsprin_gsca.gov, or by letter (for mail or hand delivery) to: Anthony J. Mejia, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed property sale in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior to, the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Jay Virata, Director of Community & Economic Development at or (760) 323-8228. Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs y puede hablar con Felipe Primera telefono (760) 323-8253 x 8742. )Wfl H Y J. EJIA MC City Cle Oversight Board Clerk/Secretary