HomeMy WebLinkAbout6/2/2004 - STAFF REPORTS (4) DATE: JUNE 2, 2004
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
APPROVAL OF A CHAPTER 8 OFFER TO PURCHASE WITH THE COUNTY OF RIVERSIDE
FOR THE ACQUISITION OF TWO SINGLE-FAMILY PARCELS IN THE DESERT HIGHLAND
GATEWAY AREA FOR THE PURPOSE OF FACILITATING THE DESERT HIGHLAND INFILL
PROGRAM AND AUTHORIZATION TO ENTER AN AGREEMENT OF SALE
RECOMMENDATION:
That the Agency approve an offer to purchase from the County of Riverside the vacant
property located at 400 Avenida Cerca and 233 W. Tramview Road (APN 669-3W-023
and 669-401-010-5) at the sales prices of$83,437.15 and $66,165.13, respectively, and
authorize the Executive Director to execute documents necessary to close the transaction.
SUMMARY:
The Community Redevelopment Agency established a Desert Highland Infill program in
2002 with the issuance of an RFP to builders interested in constructing single-family
homes in the neighborhood on Agency-owned parcels. These properties will be targeted
at moderate-income families recently priced out of the single-family market in Palm
Springs.
On April 7 the Agency started the formal Chapter 8 process of direct negotiated sale with
the County of Riverside for two lots—one at 400 Avenida Cerca that went to tax sale this
year and one at 233 W. Tramview that was offered at tax sale last year but went unsold.
Notification went to the County immediately after the Agency approved the action, and the
County has provided staff with guidance on the process for completing the sale, including
the additional resolution provided here as well as additional notification processes.
As described on April 7,the purchase of the lots from the County is at a much-higher price
than the market price, but the difference is due to nuisance liens placed on the properties
by the City of Palm Springs because of abatement and demolition activity. The City could,
upon close of sale, choose to waive the charges to the Agency or dedicate the reimbursed
funds to other abatement activities in the neighborhood.
The proposed purchase by the Agency of vacant lots located at 233 W. Tramview Road
(APN 669-401-010) and 400 Avenida Cerca (669-393-023) would be completed as part
of Riverside County's Sale of Tax-Defaulted Property. Since there were no other bidders
for the property at its current minimum bid price, the Agency postponed submitting a bid
for the Tramview property in 2003. The County did not lower its price last year after the
unsuccessful auction, and has not lowered its price after the March Public Auction.
The proposed purchases and trade would increase the number of vacant lots owned by
the Agency in the Desert Highland Gateway neighborhood of Palm Springs from five to
eight,with anticipated future actions adding at least four to five more. By separate action,
the Agency is also being asked to approve a fair market transaction with Coachella Valley
Ccao. V
Housing Coalition that will add an additional five lots to the inventory.
Staff is still working with Century Homes and other potential builders on the DDA for the
actual infill housing program, which will come back to the Agency relatively soon.
The funds for the purchase from the County are available in the Agency's Low&Moderate
Income Housing Fund - Desert Highland Infill Program.
John S. Raymond
Director of Community & Economic Development
APPROVED:
Executive Directo
ATTACHMENTS:
1. Resolution Approving Chapter 8 Agreement of Sale
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS FORMALLY REQUESTING
A CHAPTER 8 AGREEMENT OF SALE WITH THE
COUNTY OF RIVERSIDE FOR VACANT PROPERTY
LOCATED AT 233 W. TRAMVIEW ROAD AND 400
AVENIDA CERCA FOR INCLUSION IN THE DESERT
HIGHLAND GATEWAY INFILL HOUSING PROGRAM AND
AUTHORIZING THE EXECUTIVE DIRECTOR TO
EXECUTE DOCUMENTS RELATED TO SAME
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs ("Agency')was
informed that the vacant property located at 233 W. Tramview Road and 400 Avenida Cerca,
further identified as Assessor's Parcel Number 669-401-010 and 669-393-023 (the"Properties"),
were included in a Sale of Tax-Defaulted Property Public Auction by the County of Riverside on
March 17, 2003 and March 15, 2004; and
WHEREAS, the Agency wishes to purchase the vacant property at 233 W. Tramview Road and
400 Avenida Cerca in Palm Springs for inclusion in an infill housing program being developed for
the Highland-Gateway constituent area of Merged Redevelopment Project Area No. 1 as a way
of writing down the land cost for qualified families; and
WHEREAS, Section 3698.5 (a), Section 3698.5 (c), Section 3793.6 and Section 3799 of the
Revenue and Taxation Code, State of California set forth the procedures under which the County
may sell tax-defaulted property; and
WHEREAS, Riverside County has established the Chapter 8 direct sale price for the Property at
233 W. Tramview as $66,165.13 including all nuisance abatement liens plus $175.00 in County
administrative costs,the price determined in keeping with Section 3698.5 (a) (or section c or both)
of the Revenue and Taxation Code; and
WHEREAS, Riverside County has established the Chapter 8 direct sale price for the Property at
400 Avenida Cerca as $83,437.15 including all nuisance abatement liens plus$175.00 in County
administrative costs,the price determined in keeping with Section 3698.5 (a) (or section c or both)
of the Revenue and Taxation Code; and
WHEREAS, funds for the purchase of the Property are available in the Agency's Low/Moderate
Income Housing Fund - Desert Highland Infill Program.
NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City
of Palm Springs, as follows:
SECTION 1. The Community Redevelopment Agency of the City of Palm Springs objects to the
public sale of parcels 669401010-5 and 669393023-3.
SECTION 2. The Agency approves an offerto purchase from the County of Riverside the vacant
property located at 233 W.Tramview Road(APN 669-401-010-5),more particularly
described in Exhibit "A", at the sales price of $66,165.13 allowed under Section
3698.5 (a) (or section c or both) of the Revenue and Taxation Code, State of
CCac- 10
California. The public purpose for the purchase is to include the parcel in a
program to provide housing for low-or moderate-income residents. Furthermore,
the costs of giving notice in a form of a legal notice published in the Press
Enterprise, in compliance with Section 3793.6 (a) of the California Revenue and
Taxation Code and at a tentative cost of$175.00, shall be paid by the Agency.
SECTION 3. The Agency approves an offerto purchase from the County of Riverside the vacant
property located at 400 Avenida Cerca (APN 669-323-023-3), more particularly
described in Exhibit "A", at the sales price of $83,437.15 allowed under Section
3698.5 (a) (or section c or both) of the Revenue and Taxation Code, State of
California. The public purpose for the purchase is to include the parcel in a
program to provide housing for low-or moderate-income residents. Furthermore,
the costs of giving notice in a form of a legal notice published in the Press
Enterprise, in compliance with Section 3793.6 (a) of the California Revenue and
Taxation Code and at a tentative cost of$175.00, shall be paid by the Agency.
SECTION 4. Pursuant to Section 3793.6 (a) of the California Revenue and Taxation Code, the
lot books are required by the Riverside County Tax Collector in order to have the
names of Parties of Interest that must be notified of the pending sale pursuant to
Section 3799 of the aforesaid code. The Agency approves the cost of providing
the lot books for the County.
SECTION 5. The purpose of the purchase is the inclusion of the properties in an infill housing
program being developed for the construction of for-sale detached single family
homes for lower and moderate income households in the Highland-Gateway
constituent area of Merged Project Area No. 1.
SECTION 6. The purchase is to be funded from the Agency's Low/Moderate Income Housing
Fund.
SECTION 7. The Executive Director, or his designee, is hereby authorized to execute on behalf
of the Agency the necessary documents to complete the approved purchase.
ADOPTED this day of . 2004.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Executive Director
REVIEWED &APPROVED
C ro. + �