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HomeMy WebLinkAbout3/5/2003 - STAFF REPORTS jZ DATE: March 5, 2003 TO: Community Redevelopment Agency FROM: Director of Community& Economic Development APPROVAL OF THE PURCHASE OF VACANT PROPERTY LOCATED AT 233 W. TRAMVIEW ROAD FOR POTENTIAL INCLUSION IN THE DESERT HIGHLAND GATEWAY INFILL HOUSING PROGRAM RECOMMENDATION: It is recommended that the Community Redevelopment Agency of the City of Palm Springs ("Agency") approve the purchase of a vacant property located at 233 W. Tramview Road (APN 669-401-010) in an amount not to exceed $53,200 for its potential inclusion in the Desert Highland Gateway Infill Housing Program currently being developed for Merged Redevelopment Project Area No. 1; or if the property remains unsold after the County's March 17 Public Auction, bid on the property in the County's Continuation Sale on May 12. SUMMARY: The proposed purchase by the Agency of a vacant lot located at 233 W. Tramview Road (APN 669-401-010) would be completed as part of Riverside County's Sale of Tax-Defaulted Property which includes a Public Auction of such properties on March 17, 2003. The minimum bid for the property at the March 17 Public Auction is $52,196 and potential associated transaction costs are estimated at up to $1,000. Hence, the maximum authorized purchase price being recommended is $53,200. Alternatively, under the assumption that there would be no other bidders for the property at its current minimum bid price, the Agency could postpone submitting a bid for the property until the County's continuation sale scheduled for May 12, 2003. If in fact the property remains unsold after the March 17 Public Auction, it will be re-offered at a continuation sale beginning May 12, 2003, with a new presumably lower minimum bid price as determined by the County after the conclusion of the Public Auction. The proposed purchase would increase the number of vacant lots owned by the Agency in the Desert Highland Gateway neighborhood of Palm Springs from five to six, It is expected that all six properties would be included in the Infill Housing Program currently being developed by City staff to provide for partnering with one or more developers to construct for-sale detached single family homes for lower and moderate income households in this sub-area of Merged Redevelopment Project No. 1. BACKGROUND: The Agency was recently made aware of the fact that a vacant property located at 233 W. Tramview Road (APN 669-401-010) is included in the upcoming Sale of Tax-Defaulted Property being conducted by Riverside County. The property is being offered for sale due to liens against the property dating back to 1997. These liens, plus accrued interest, currently total over $52,000. Approximately half of that amount is related to liens recorded against the property as part of public nuisance abatement proceedings by the City of Palm Springs during 1999 and 2000. Those proceedings resulted in the demolition of previously existing structures on the property. NA A A On March 17, 2003, the County will conduct a Public Auction offering the tax- defaulted property to the highest bidder, with a current minimum bid amount of $52,196, which consists of the amount of the prior liens, administrative costs and accrued interest. If the property remains unsold after the Public Auction, it will be re-offered at a continuation sale beginning on May 12, 2003. Since it is very likely that there would be no other Public Auction bidders for the property at the current minimum bid price, the County would be expected to reduce the minimum bid price in advance of the May 12 continuation sale. However, that information will not be available until after the conclusion of the Public Auction and near the date of the May sale. if the County's minimum bid price were reduced, proceeds paid to all existing lien holders would be similarly reduced on a pro rata basis. Due to the City's prior abatement activities and the resulting liens, the County's minimum bid price for the property of$52,196 is well in excess of amounts being paid through both public auction and private market transactions for vacant lots in the area. In addition, interest on the current liens continues to accrue at the rate of approximately 12% per year. In March 2001, two vacant lots in the area were sold at Public Auction for$1,500 and $3,200, In March 2002, two additional vacant lots in the area were sold at Public Auction for $4,500 and $5,300. There are currently no vacant lots in the area listed for sale in the Board of Realtors Desert Area Multi-List Service. However, in September 2002 three vacant lots had been listed with asking prices ranging from $8,000 to $15,000. In effect, without Agency involvement or a dramatic reduction in the County's minimum bid price for the Tramview property, it is unlikely that this lot will be put into productive use in the foreseeable future. The property is located within the target area of the Desert Highland Gateway Infill Housing Program being developed by City staff to provide for partnering with one or more developers to construct for-sale detached single family homes for lower and moderate income households. This target area is part of the Highland- Gateway constituent area of Merged Redevelopment Project No. 1. Staff has previously identified five vacant lots owned by the Agency for inclusion in the program and is currently evaluating proposals received from developers in December 2002 which were submitted in response to a Request for Proposals for the Program. The intent of purchasing the Tramview property at this time would be its potential inclusion in the Infill Housing Program. Staff has inquired of the County as to the possibility of a negotiated sale of the Tramview property at a reduced price and was informed that, due to various procedural rules and the current backlog of direct sale activities with the County, a negotiated sale would take up to two years to complete. This is well beyond the time frame anticipated by staff for the completion of the Infill Housing Program. Staff therefore recommends that, mindful of the previously incurred costs to demolish the structures on the property, the Agency authorize the purchase of the vacant property in an amount not to exceed $53,200, including associated transaction costs estimated at no more than $1,000. The anticipated use of the property would be its inclusion in the Desert Highland Gateway Infill Housing Program as currently being developed by staff. Should the Agency prefer to wait until after the conclusion of the March 17 Public Auction to determine if the minimum bid price for the property will be reduced by the County, staff would defer submitting the revised bid amount until the May continuation sale. The funds for this purchase are available in the Agency's Low & Moderate Income Housing Fund - Unscheduled Capital Projects. Tzkv�-l John EURaymond Director of Community & Economic Development Approved: Executive Director P�J Attachments: REVIEWED BY DEPT.OF FINANCE 1. Vicinity Map and Site Location 2. Agency Resolution C2A A3 M1 --� MELA DR Zm* MUL 0 RD CI N WRENCE CIR ITA OWARD CIR CI CIR LRERTO CIR G MINEZ CIR CIR ATE RD C/) * Proposed Purchase C O r C r 233 W. Tramview y Z ?� m Agency-Owned Parcels: ri I. APN: 669-363-001 m � NE Corner Jiminez Circle and Las Vegas Road D y D 2. APN: 669-394-004 m 390 W. Avenida Cerca f 3. APN: 669-394-005 Proposed 3834 N. Granada Avenue © Purchase 1 233 W. Tramview { 4. APN: 669-394-006 389 W. Bon Air Drive r, S. APN: 669-413-019 �w�a 3709 El Dorado INDIAN CANYON DR MA �y RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS APPROVING THE PURCHASE OF VACANT PROPERTY LOCATED AT 233 W. TRAMVIEW ROAD FOR INCLUSION IN THE DESERT HIGHLAND GATEWAY INFILL HOUSING PROGRAM WHEREAS, the Community Redevelopment Agency of the City of Palm Springs ("Agency") is aware that the vacant property located at 233 W. Tramview Road, further identified as Assessor's Parcel Number 669-401-010 (the "Property"), is scheduled for inclusion in a Sale of Tax-Defaulted Property to be initiated through a Public Auction by the County of Riverside on March 17, 2003; and WHEREAS, the Agency wishes to purchase the vacant property located at 233 W. Tramview Road in Palm Springs for potential inclusion in an infill housing program being developed for the Highland-Gateway constituent area of Merged Redevelopment Project Area No. 1; and WHEREAS, Riverside County has established the minimum bid price for the Property for the Public Auction as $52,196 and additional associated transaction and administrative costs for the acquisition may be required in the approximate amount of$1,000; and WHEREAS, funds for the purchase of the Property are available in the Agency's Low/Moderate Income Housing Fund- Unscheduled Capital Projects. NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: SECTION 1. The Agency approves submittal of the necessary bid documents and funds to purchase for an amount not to exceed $53,200 the vacant property located at 233 W. Tramview Road (APN 669-401- 010) in conjunction with the County of Riverside's 2003 Sale of Tax-Defaulted Property. SECTION 2. The purpose of the purchase is the potential inclusion of the property 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 3. The purchase is to be funded from the Agency's Low/Moderate Income Housing Fund. SECTION 4. The Executive Director, or his designee, is hereby authorized to execute on behalf of the Agency the necessary bidding and transaction documents to complete the approved purchase. ADOPTED this day of , 2003. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA BY Assistant Secretary Executive Director REVIEWED &APPROVED