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HomeMy WebLinkAbout5297 RESOLUTION NO. 5297 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING THE SALE, DISPOSITION AND DEVELOPMENT OF CERTAIN PROPERTY LOCATED IN THE CENTRAL REDEVELOPMENT PROJECT PURSUANT TO THE TERMS OF A DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE ARCADIA REDEVELOPMENT AGENCY AND STANLEY W. GRIBBLE AND ASSOCIATES, MAKING CERTAIN FINDINGS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33433, AND RECOMMENDING THE CERTIFICATION OF AN ENVIRONMENTAL IMPACT REPORT AND ADDENDUM THERETO. WHEREAS, the City Council of the City of Arcadia, California (the "City Council"), has approved and adopted the Redevelopment Plan for the Central Redevelopment Project, as amended (the "Redevelopment Plan"); and WHEREAS, the Redevelopment plan provides for the participation in the redevelopment of property located within the Central Redevelopment Project by qualified developers; and WHEREAS, Stanley W. Gribble and Associates, a sole proprietorship (the "Developer"), has submitted to the Arcadia Redevelopment Agency (the "Agency") a proposal to acquire certain property located on the south side of East Huntington Drive between the separated grade railroad crossing and Fifth Avenue in ,the Central Redevelopment Project (the "Property"), and to construct thereon a mixed use commercial complex, appurtenant improvements, landscaping and vehicle parking facilities (the "Project"); and WHEREAS, the acquisition of the Property by the Developer from the Agency and redevelopment of the Project by the Developer pursuant to the terms of a certain Disposition and Development -1- 5297 Agreement by and between the Agency and the Developer (the "Agreement"), as attached hereto as Exhibit "A" and incorporated herein by this reference, shall further the objectives of the 'Agency and the City and implement the Redevelopment Plan; and WHEREAS, the Agency has caused to be duly pUblished a notice of public hearing concerning the ap'proval by the Agency of the sale of tne Property to the Developer pursuant to the terms of said Agreement and certain appropriate action by the City Council in accordance with the provisions of Health and Safety Code Section 33433; and WHEREAS, the Agency has prepared a certain report (the "Report"), as attached hereto as Exhibit "B" and incorporated herein by this reference, which summarizes the terms of the proposed sale of the Property by the Agency to the Developer and a copy of said Report is on file with the City Clerk; and WHEREAS, the Agency and the City Council have neretofore taken certain other appropriate actions regarding the Project in accordance with the provision of the California Environmental Quality Act of 1970, 'as amended ("CEQA") and, in particular, have (i) caused the preparation of an Environmental Impact Report dated March 1986 ("EIR"), an addendum to the EIR dated April 1986 ("Addendum") and a Statement Of Overriding Considerations and (ii) conducted a public hearing concerning the proposed :certification of the EIR and the Addendum; and the City Council has reviewed and considered the information contained in the EIR, Addendum and Statement of Overriding Considerations; and WHEREAS, the Agency has requested the City Council to take -2- 5297 certain aperopriate action concerning approval of the Project and the Agreement in accordance with the provisions of Health and Safety Code Section 33433. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The facts described in the recitals hereof are true and correct. SECTION 2. 'The City Council hereby accepts and approves the ,Report which summarizes the terms of the sale of the Property by ,the Agency to the Developer which is on file with the City Clerk. SECTION 3. The City Council has conducted a full and fair public hearing regarding the sale of the Property to the Developer in accordance with'the terms and provisions of the Agreement. The City Council has considered all oral and written comments, including the Report and the Agency Staff Report as submitted to the City Council during said public hearing held on this date for the sale of the Property by the Agency to the Developer for the total consideration as more fully described in said Agreement. SECTION 4. The City Council hereby finds and determines, based upon the Report, and the real estate appraisal information contained therein, that the consideration to be paid to the Agency by the Developer for the acquisition of the Property in accordance with the terms and provisions of the Agreement is fair market value of the Property. Notwithstanding the foregoing, the City council hereby acknowledges that the total fair market value -3- 5297 acquisition cost of the Property to the Agency for the necessary assembly of the various parcels of the Property may exceed the purchase price for the Property paid by the Developer to the Agency, which purchase price has been determined to be the fair market value of the Property in accordance with the reuse appraisal of the property based upon the contemplated uses of the Property as described in the Agreement and consistent with the Redevelopment Plan. SECTION 5. The City Council hereby finds and determines that the payments to be made by the Developer to the Agency for the acquisition of the Property in accordance with the terms of the Agreement are fair, reasonable and adequate compensation for the Property; in so far as such payments may be deemed to be less than the fair market value of the Property, that this difference in purchase price is necessary to effectuate the purposes of the Redevelopment Plan and the Community Redevelopment Law by encouraging the assembly of land for the development of an integrated mixed use commercial development which will eliminate blight, create employment opportunities, improve the appearance of the Property and generally further the public health, safety and welfare. The City Council further finds and determines that the acquisition of the ,Property by the Developer and the completion of the Project pursuant to the terms of the Agreement are reasonably anticipated to result in certain additional retail sales tax and other revenues to be received by the City and certain additional tax increment revenues to be received by the Agency. -4- 5297 SECTION 6. The City Council finds and determines that the EIR, the Addendum and Statement Of Overriding Considerations have been completed in compliance with CEQA and the City Council has reviewed and considered the information contained therein. The City council. hereby recommends that the Agency approve and certify that ,the EIR, the Addendum and the statement Of Overriding Considerations were prepared in compliance with CEQA. SECTION 7. The City Council hereby approves the terms and conditions of the Agreement by and between the Agency and the Developer and hereby authorizes the sale of the Property.by the Agency to the Developer in accordance with the provisions of said Agreement. SECTION 8. This Resolution shall take effect upon adoption. PASSED, APPROVED AND ADOPTED this 6th day of May, 1986. Mayor 0 ~~~HYOf City of Arcadia, California -5- 5297 STATE Of CALIFORNIA COUNTY OF LOS ANGELES ss. CITY OF ARCADIA I, CHRISTINE VAN MAANEN, City Clerk of the City of Arcadia, California, hereby certify that the foregoing Resolution No. 5297 wa$ passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council on the 6th day of May, 1986, and that said Resolution was adopted by the following vote, to wit: AYES: Agency Members Chandler, Gilb, Harbicht, Lojeskiand Young NOES: None ABSENT: None ~~ City Clerk of the City of Arcadia, California -6- 5297 EXHIBIT "A" DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE ARCADIA REDEVELOPMENT, AGENCY AND STANLEY W. GRIBBLE AND ASSOCIATES EXHIBIT "B" DISPOSITION REPORT The following is the Disposition Report on the proposed sale of land by the Arcadia Redevelopment Agency ("Agency") to Stanley W. Gribble and Associates ("Developer") pursuant to a certain Disposition and Development Agreement ("Agreement") by and between the Agency and Developer. This Disposition Report has been prepared pursuant to the requirements set forth in California Health and Safety Code Section 33433. 1. General The Agency proposes to convey land which it proposes to acquire to Stanley W. Gribble and Associates, 'a sole proprietorship, 1600 Dove Street, Suite 130, Newport Beach, California 92660. Pursuant to the Agreement, the 9.11 acre site, located on the south side of East Huntington Drive between the Atchison, Topeka and Santa Fe Railroad and South Fifth Avenue ("Site"), will be developed as a mixed use commercial development' comprised of approximately 14,000 to 20,000 square feet of restaurant, 26,465 to 41165 square feet of retail and 88,000 to 145,000 square feet of office uses or, alternatively, in place of office use on the area behind the Southland Bank building, research and development use. The Initial Disposition Price to be paid by the Developer is $5,811,339.00 !$14.65/square foot). A copy of the proposed Agreement setting forth the terms and conditions of the sale is included as Attachment No. 1 of this report. In addition, the Agency will be entitled to receive supplemental payments as part of the purchase price up to a maximum of $700,000.00 plus five percent (5%) thereof compounded annually at the rate of five percent thereof, on or before six years following the date of the Agreement, in the event that there is a sufficient increase in the value of the Project, as set forth by formula in the Agreement. 2. Costs to Agency Certain expenses on the site have already been incurred while others will be made during the implementation of the Agreement. The costs below are presented in either one of two categories; A) past expenses, and B) future anticipated expenses. The payments for past expenses have already been made and can be accounted for accurately while those which are yet to occur are estimates based upon appraisals, current market conditions and cost projections made by staff and consultants. Additionally, future acquisition costs are presented in aggregate form in an effort to maintain the confidentiality required for those properties to be acquired. -1- A. Expenditures to date: Appraisal reports Environmental assessment Financial analysis Relocation consultant Legal services Title reports Engineering services Administration $60,065.00 11,937.38 11,910.25 2,932.75 11,039.38 10,.400.00 7,800.00 1 ,525.10 Total expenditures to date $117,609.86 Future costs within the foregoing calculated and included within expenditures set forth hereinafter. list of categories expenditures are of projected B. projected expenditures: Property acquisitions Relocation payments Demolition and clearance Off site improvements Escrow costs Administrative costs $7,166,000.00 1,311,000.00 160,000.00 40,000.00 35,000.00 90,000.00 Total projected expenditures $8,802,000.00 Estimated total project cost $8,919,609.86 3. Future Revenues Governmental revenues will be generated as a result of the completion of the proposed project on the Site, as set forth in the Agreement', on an ongoing basis in the form of tax increment revenue, sales tax revenue, business license fees and utility users' taxes. Current estimates of such future revenues are provided below and represent estimates of net increases of revenues above what is currently being generated by the Site. The following are estimates of annual revenues after completion of the project and are' expected to be generated annually thereafter. Tax increment to the Agency Sales taxes to the City License fees and utility taxes Range - FY 1989-90 $162,000 to 187,000 125,000 to 151,000 5,000 Total estimated revenues $292,000 to 343,000 -2- 4. Other Project Benefits The benefits of this project go beyond the generation of revenue to the city and Agency. This project also serves the purpose of meeting a number of goals as outlined in the Redevelopment plan for the Central Redevelopment Project.' The goals and benefits include: (A) Jobs will be created through the actual construction to take place on Site and also once the businesses have opened. Employee payrolls will result in additional indirect tax receipts to the City. (B) The physical appearance of this portion ,of the City will be improved through the elimination of blighting conditions which currently exist on the Site. One of the major entry ways into Arcadia will be made aesthetically more attractive, improving the image of the Downtown and of Arcadia. (C) New development generated as a result proposed project. in the surrounding area may be of the upgrading of this Site by the 5. Estimated Value of the project The Redevelopment Plan calls for Commercial Planned Development of the site. The Agency has identified a need for retail and related uses within the Project Area. Such development will provide economic returns to both the City and Agency. The fair market reUse value of the 9.11 acre Site has been determined to be $14.64/square foot, base~ upon an appraisal of this specific project by Keyser Marston and Associates. A copy of this appraisal is on file with the Economic Development Department of the City of Arcadia. The proposed sale price for the Site as set forth in the Agreement is equal to the foregoing appraised reuse value. To the extent that the proposed sale price for the Site may be deemed to be less than the fair market value thereof, the difference is necessary in order to permit the assembly of land within the Site to achieve the benefits of redevelopment thereof, as set forth in this Disposition Report. -3-