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STAFF REPORT
Development Services Department
DATE: November 20, 2012
TO: Honorable Mayor and City Council, Acting as Successor Agency to the
Redevelopment Agency
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director-5'1"-
By: Jerry Schwartz, Economic Development Manager ,j"s
SUBJECT: REPORT, DISCUSSION, AND DIRECTION ON A LONG RANGE
PROPERTY MANAGEMENT PLAN FOR THE SUCCESSOR AGENCY
TO THE FORMER ARCADIA REDEVELOPMENT AGENCY
Recommendation: Approve
SUMMARY
Assembly Bill 1484 (AB 1484) was signed into law on June 27, 2012. AB 1484 modified
several elements of AB 1X 26, the bill that dissolved redevelopment agencies in
California and included certain steps for the wind down. One change made in AB 1484
is that before a successor agency can sell former Agency properties, it has to create a
Long Range Property Management Plan that must be approved by the Oversight Board
and the Department of Finance (DOF). Health and Safety Code Section 34191.5(c)(1),
which was added as part of AB 1484, describes the Long Range Property Management
Plan (Plan), the elements that are to be included, and the timing for preparing and
submitting this Plan. The Plan is presented for Successor Agency consideration before
being presented to the Oversight Board at an upcoming meeting.
BACKGROUND
The City of Arcadia chose to become the Successor Agency to the Arcadia
Redevelopment Agency at its January 3, 2012 meeting. One of the responsibilities of
the City, as Successor Agency, is to oversee the sale of former Agency properties. The
Redevelopment Agency owned five commercial properties at the time of the State
Supreme Court ruling ending redevelopment.
When the Successor Agency and the Oversight Board were operating under AB 1X 26,
there was a sense that selling these commercial properties was one of the highest
priorities in the dissolution process. AB 1484 made the sale of properties a much lower
priority. It did this by creating the requirement for a Long Range Property Management
Plan (Plan). The schedule in AB 1484 for the development and submission of the Plan
Long Range Property Management Plan
November 20, 2012
Page 2 of 3
is that it is to be submitted within six months of receiving a Finding of Completion from
the DOF. The DOF will be issuing a Finding of Completion to a Successor Agency that
meets a series of requirements, including sending all housing and non - housing funds to
the State for dispersal to the taxing entities. The DOF expects to issue Findings of
Completion starting in late spring of 2013. The Successor Agency is working ahead of
this schedule in hopes of receiving early approval to facilitate a land deal to allow
Rusnak Mercedes Benz to expand its dealership on four of the five properties owned by
the Successor Agency.
DISCUSSION
The Plan identifies the five commercial properties that were owned by the
Redevelopment Agency when it was dissolved. Those properties are:
• 101 -111 North Santa Anita Avenue - Current condition is vacant and fenced
121 -159 North Santa Anita Avenue — Current condition is vacant and fenced
21 Morlan Place — Current Condition is a paved parking lot, leased to Rusnak
• Dahlgren Parcel — Current Condition is vacant (not independently developable)
• 35 West Huntington Drive — Current condition is an active self storage building,
with the basement and first floor leased to Rusnak for its Parts Department
Section 34191.5(c)(1) of the California Health and Safety Code identifies what elements
should be included in the Long Range Property Management Plan regarding each
property. These elements include: the date of acquisition, value at purchase, estimate
of current value, purpose of acquisition, description of the property, any lease revenue
derived from the property, contamination issues, the property's potential for transit -
oriented development and advancing planning objectives, and history of previous
development proposals. The Long Range Property Management Plan which is
attached to this staff report addresses all of these issues for each of the five commercial
properties. There are two photographs of each property included with the descriptions,
a history of efforts to work with Rusnak on expansion that go back to 2001, and an
explanation of the importance of having the Plan approved at the earliest time possible.
Included also is an aerial photo showing all five Successor Agency properties, a site
plan for the Rusnak expansion, and portions of the Five Year Implementation Plan that
identify the Rusnak expansion as the top priority of the Redevelopment Agency.
The purpose of proceeding with the preparation, approval, and submission of this Plan
far in advance of the schedule identified in HSC Section 34191.5(c)(1) is the desire of
the Successor Agency and Rusnak Mercedes Benz to proceed with a Purchase and
Sale Agreement that would allow the dealership to expand on the four contiguous
Successor Agency parcels that equate to a 1.95 acre site. This site would provide
Rusnak with frontage on Santa Anita Avenue along with its current visibility on
Huntington Drive. Rusnak anticipates building a new showroom and service entrance
on the Successor Agency parcels. Because of pressure that Rusnak is receiving to
Long Range Property Management Plan
November 20, 2012
Page 3 of 3
expand from Mercedes -Benz, time is of the essence to have the Long Range Property
Management Plan approved by the Oversight Board and the DOF.
Once the Plan is approved by the Successor Agency, it will be scheduled for
consideration by the Oversight Board, and then submitted to the DOF. There are still
steps related to the expansion of Rusnak Mercedes Benz, including bringing a
Purchase and Sale Agreement forward for Successor Agency consideration, completion
of the traffic study and the Initial Environmental Assessment, and ultimately, the sale of
the properties to Rusnak. It is worth noting that the Self Storage Building is not part of
the potential Rusnak expansion. The Plan notes that after Rusnak moves its Parts
Department to the expanded dealership, the Successor Agency would take steps to sell
that building.
FISCAL IMPACT
There is no fiscal impact from the approval of the Long Range Property Management
Plan. However, approval of the Plan by the DOF could lead to the sale of four
properties to Rusnak. The sale proceeds would be shared by all taxing entities, but the
fiscal benefit from the expansion of the dealership would accrue to the City of Arcadia,
including the resultant increase in sales tax generated by the expanded dealership.
RECOMMENDATION
Approve the Long Range Property Management Plan for the Successor Agency to the
former Arcadia Redevelopment Agency.
Approved:
ominic Lazzar
City Manager
Attachment: Long Range Property Management Plan
Long Range Property Management Plan
Successor Agency to the former Arcadia Redevelopment Agency
INTRODUCTION
On June 27, 2012, Governor Brown signed into law Assembly Bill 1484 (AB 1484), a budget trailer bill
that makes substantial changes to the redevelopment agency dissolution process implemented by
Assembly Bill 1X 26. One of the key components of AB 1484 is the requirement that all successor
agencies develop a long -range property management plan that governs the disposition and use of the
former redevelopment agency property. This document is the Long Range Property Management Plan
for the Successor Agency to the former Arcadia Redevelopment Agency (Successor Agency).
SUMMARY OF PROPERTIES OWNED BY THE SUCCESSOR AGENCY
There are five (5) properties owned and controlled by the Successor Agency. They include the following:
1. 121 -159 North Santa Anita Avenue. A 20,550 square foot parcel formerly developed with
commercial uses. The Arcadia Redevelopment Agency worked with the tenants on the
relocation of their businesses, and this site is now vacant and fenced.
2. 101 -111 North Santa Anita Avenue. A 14,200 square foot parcel formerly developed with
commercial and office uses. The Arcadia Redevelopment Agency worked with the tenants on the
relocation of their businesses, and this site is now vacant and fenced.
3. 21 Morlan Place. A 44,000 square foot lot that formerly housed a church. The church has been
relocated elsewhere in Arcadia and the site has been cleared and paved. It is currently used for
auto storage through a lease with the adjacent Rusnak Mercedes Benz dealership.
4. The "Dahlgren Parcel ". A vacant commercial site on Santa Clara Street that is north of and
adjacent to 21 Morlan Place. This is an unusually shaped, 6,100 square foot vacant parcel that
has never been developed and is not developable on its own. It must be combined with
surrounding properties to be developed. The site does not have a formal address.
5. 35 West Huntington Drive. A 20,040 square foot parcel, it is currently developed with a 38,127
square foot, five story, self- storage building, and several vacant commercial tenant spaces.
These properties are described in greater detail in the "Inventory" section below and are shown in the
aerial photo below, and in Attachment A.
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HISTORY OF PREVIOUS DEVELOPMENT PROPOSALS AND ACTIVITIES
All of the properties included in the Successor Agency's inventory have been acquired in an effort to
redevelop and revitalize this portion of the City of Arcadia through an expansion of a local car dealership
business. This dealership, Rusnak Mercedes Benz ( Rusnak), moved to an adjacent parcel in 2000. The
site had been occupied by another car dealership (Foulger Ford) but had been vacant for many years
prior to Rusnak's purchase of the site. Shortly after moving to Arcadia, Rusnak and the Arcadia
Redevelopment Agency (ARA) began discussions on an expansion of the dealership. The expansion of
the dealership was included in the ARA's Implementation Plan and Mid - Redevelopment Plan Update,
both of which reflected that this was the top priority of the ARA. In 2001, the ARA obtained appraisals
and cost estimates for relocation and goodwill for the adjacent properties. As Rusnak built a new
showroom on the site, the ARA worked toward establishing owner /tenant participation letters with the
adjacent property owners.
In 2004, the ARA entered into a Land Assembly and Development Agreement (LADA) with Rusnak to
effectuate the expansion of the dealership onto three of the five properties currently owned by the
Successor Agency. The deal was predicated on the Agency acquiring these and several other parcels to
facilitate an expansion along Huntington Drive, where the current showroom is located. The ARA
acquired 35 West Huntington Drive in 2006 and 21 Morlan Place in 2008 as part of the implementation
of the LADA. The Agency was unable to acquire two other critical properties that were necessary for the
expansion under the LADA and the agreement expired. Two floors of the building at 35 West
Huntington (which is occupied by a self- storage facility) were leased to Rusnak for parts storage. The
user at 21 Morlan Place was relocated, the building was subsequently demolished, and the site was
leased to Rusnak for auto storage. These parts and auto storage leases were viewed by the ARA as
temporary uses until such time as the Rusnak expansion occurred.
Rather than attempt to utilize Eminent Domain to acquire the other parcels necessary to implement the
LADA, the ARA pursued the acquisition of a different cluster of parcels and worked with Rusnak to
reconfigure a new site plan for expansion. In 2010, the Agency acquired the neighboring commercial
properties addressed as 101 -111 North Santa Anita Avenue and 121 -159 North Santa Anita Avenue. In
2011, the ARA acquired the "Dahlgren" parcel, to finish out the block and complete the assembly of a
1.95 acre parcel adjacent to the existing Rusnak dealership site. The ARA then proceeded to complete a
draft Disposition and Development Agreement (DDA) with Rusnak in mid -2011. However, at that point
the California Supreme Court issued their stay of all Redevelopment activity and the finalization of the
DDA could not be pursued. Obviously, the Supreme Court decision to end Redevelopment in December
2011 set the project back yet again. The Agency and Rusnak were very close to culminating 10 years of
efforts to facilitate the dealership's expansion when State Supreme Court made its ruling.
In June, 2012, the Successor Agency began work on a non - redevelopment land sale with Rusnak.
Rusnak indicated that it was prepared to execute a Purchase and Sale Agreement to purchase the four
(4) parcels for expansion. Staff had presented the potential deal to the newly- formed Oversight Board
to the Successor Agency, and was developing a timeline to bring the project forward to the Successor
Agency, Oversight Board, and Department of Finance for review and approval. The passage of AB 1484
Arcadia Successor Agency
Long Range Property Management Plan
Page 3
stopped these efforts and now the Successor Agency is in the process of compliance with the new
process set forth in AB 1484.
Another significant issue with regard to delay is the fact that the Rusnak dealership is under pressure
from Mercedes -Benz to expand. A number of years ago, Mercedes required all of its California
dealerships to upgrade to a new " Autohaus" concept. The Autohaus concept includes expanded
showrooms, expanded service provision, and enhanced site features. For Rusnak, this requirement can
only be accomplished with an expansion of land area. Given the fact that the many attempts to
effectuate a land deal have been stalled, Mercedes has removed numerous incentives from Rusnak and
it is now our understanding that the franchise is in jeopardy of being closed because it cannot meet
Mercedes' demands. This would be a significant blow to Arcadia. Time is of the essence to have the
Long Range Property Management Plan approved so the land sale can proceed and this important local
business will be able to expand.
To summarize, the former ARA and current Successor Agency have been attempting to complete a deal
with Rusnak to expand this important local business in Arcadia for more than 10 years. Rusnak is a
model corporate citizen, is invested in the community, and is a successful job producer and sales tax
generator that provides benefits to the region. Over the years, the five parcels currently in the
ownership of the Successor Agency have all been acquired to facilitate this important expansion. The
Rusnak expansion has been part of the Agency's Implementation Plan for over a decade and remains a
high priority for this community. The Successor Agency's long -term plan is to combine four of the five
existing parcels under its ownership (21 Morlan Place, both Santa Anita Avenue parcels, and the
Dahlgren Parcel) into this land sale and development project with Rusnak. The proceeds from the sale
and subsequent construction will be of great benefit to taxing entities, and the City will realize its long-
term redevelopment goal of creating an economically sustainable community free of blighting
conditions. An expanded Rusnak dealership will provide new permanent full -time jobs in both the blue
collar (service and parts) and professional (sales and management) fields. It will also combine several
underutilized and irregularly shaped parcels that were previously under separate ownership into a
unified and attractive parcel that will receive at least $10 million in development upgrades. The new
investment by Rusnak will yield greater property tax revenues to all taxing entities for many years. The
increase in property tax will begin when the Successor Agency sells its four properties to Rusnak and
they reappear on the tax rolls as being owned by a private party rather than a public entity.
The final parcel, 35 West Huntington Drive, is an existing self- storage building that the City plans to
continue to operate in the near term but will ultimately liquidate. While this parcel was previously
considered as part of the 2004 Rusnak LADA, it is not part of the current expansion. However, Rusnak
leases two floors for its parts business, including storage and inventory control. The City is also using the
building for storage of City property from the library, historical museum, and other departments. In
addition, Arcadia City Hall is currently going through a renovation that has necessitated the use of the
self- storage building to house City Hall records and property. While these public uses take up some of
the available self storage spaces, and make it difficult to sell until those are vacated, the City expects to
own the building until the new Rusnak dealership is constructed, and the parts department moves from
Arcadia Successor Agency
Long Range Property Management Plan
Page 4
the building into the dealership. Once that process is completed, the City will look to sell the self -
storage building.
Arcadia Successor Agency
Long Range Property Management Plan
Page 5
INVENTORY
Section 34191.5(c)(1) of the Health and Safety Code, which was added as part of AB 1484, requires that
the Long Range Property Management Plan include an inventory of all properties held in the Community
Redevelopment Property Trust Fund. For the Arcadia Successor Agency, this includes the five parcels
referenced in the two prior sections. As per the statute, each of these parcels is described separately.
Arcadia Successor Agency
Long Range Property Management Plan
Page 6
Parcel #1:
121 -159 North Santa Anita Avenue
Portion of Property from across Santa Anita Avenue
North End of Property with view of Santa Clara Street
Date of Acquisition and its value at that time, and an estimate of current value.
This commercial property at 121 -159 North Santa Anita Avenue was acquired in August 2010 for
$1,616,500. It was purchased together with the adjoining commercial property at 101 -111 North Santa
Anita Avenue. These combined properties provide approximately 240 linear feet of frontage on Santa
Anita Avenue, a major commercial street in downtown Arcadia with access to the 1 -210 freeway and the
upcoming extension of the Gold Line mass transit line from Pasadena through Arcadia. An appraisal of
the property was performed as of February 23, 2010, and the value at that time was determined to be
$1,525,000. Given that commercial real estate values have remained relatively steady over the past two
years, the current value of this site is unlikely to have changed from the appraised value in February
2010.
The reason for the acquisition of the property.
The property was acquired as part of the assemblage of a larger commercial site to sell to Rusnak
Mercedes Benz to expand the dealership, including the construction of a new showroom with frontage
on Santa Anita Avenue, which is a major commercial street in downtown Arcadia. The expansion of the
dealership on Santa Anita Avenue would give Rusnak a major presence on the two main commercial
streets in downtown Arcadia: Huntington Drive and Santa Anita Avenue. It would also provide access
from Morlan Place on the south side and Santa Clara Street on the north side. Both Santa Anita Avenue
and Santa Clara Street are visible in the photographs of the site at the top of the page.
Arcadia Successor Agency
Long Range Property Management Plan
Page 7
Parcel data for each property, including address, lot size and current zoning.
The property address is 121 -159 North Santa Anita Avenue. The Assessor Parcel numbers are 5775 -025-
903 and 904. The lot size is 20,550 sq. ft. The property has three contiguous commercial buildings with
8,900 sq. ft. of gross building area and 8,709 sq. ft. of net rentable space. There are ten (10) tenant
spaces all of which have been vacated. The current zoning is Central Business District (CBD) with a
Downtown Overlay.
There are three contiguous buildings that were built in 1948, 1952, and 1960. There are twenty -five (25)
parking spaces behind the building. The parking ratio of 2.81 spaces per 1,000 sq. ft. of commercial
space is significantly below the City's parking standard of 5 spaces per 1,000 square feet of commercial
space. The current code would require 45 parking spaces for this amount of commercial space. This
property was a legal non - conforming use.
An estimate of the current value of the parcel, including any appraisal information, if available.
The property appraised in February 2010 for $1,525,000. When the appraisal was performed, the
property was generating rental income from the commercial tenants, which had a positive impact on its
value. The Redevelopment Agency received rent from the tenants that were in place when it purchased
the property. Currently the property is vacant and fenced. This can be seen in the photos at the top of
this section. All of the tenants have been relocated. While it has not been appraised recently, the
primary value of the property is in the land rather than the improvements. This is because the City
would not want the building reoccupied without adequate parking and without significant work done to
the building, which has suffered from several years of deferred maintenance. As a result, the current
value is estimated at approximately the same as the 2010 appraised value of $1,525,000.
An estimate of any lease, rental, or other revenues generated by the property and a description of the
contractual requirements for disposition of those revenues.
The ten (10) tenant spaces generated $8,580 per month in gross rent revenues when they were
occupied. Most of the tenants were on month -to -month rental agreements that were in place when the
property was acquired in August 2010. For several months, before relocation efforts were initiated, the
Redevelopment Agency received these rent revenues. The City hired Overland Pacific & Cutler to handle
the relocation,. which started in May, 2011 and was completed in May, 2012. The rental income
dwindled as tenants were relocated. Currently the spaces are vacant and there is no longer any rental
income.
Any history of environmental contamination or remediation efforts.
There is no known history of environmental contamination on this site. A phase one environmental
review was performed during escrow which did not reveal any issues of concern.
Arcadia Successor Agency
Long Range Property Management Plan
Page 8
A description of the property's potential for transit- oriented development and the advancement of
the planning objectives of the successor agency.
The use of this property for the expansion of the Rusnak Mercedes Benz dealership would advance the
planning objectives of the Arcadia Successor Agency. It would do this because the Arcadia Successor
Agency has assumed the goal of the Arcadia Redevelopment Agency to help the dealership expand. This
goal has been in the City of Arcadia's plans for a decade. The Successor Agency now controls these
properties that were purchased by the Arcadia Redevelopment Agency. One of the planning goals is
new investment on this site that will be attractive and generate revenue for the City of Arcadia. The
expansion of the Mercedes Benz dealership will meet that goal.
In the General Plan update, which was completed in November 2010, transit - oriented development is
one of the goals identified for the downtown area to integrate with the expansion of the Gold Line mass
transit line from Pasadena through Arcadia. A significant portion of the City's downtown was rezoned to
promote transit oriented development. The higher density TOD sites are east of Santa Anita Avenue,
however, making this site not conducive for a transit - oriented development project. This area was not
zoned to allow high density residential or other types of TOD as part of the 2010 General Plan update.
A brief history of previous development proposals and activities, including the rental or lease of
property.
The property was purchased as part of a larger site assembly to create an advantageous location for
Rusnak Mercedes Benz to expand. Building a new showroom on the assembled site that includes this
parcel would give the dealership tremendous visibility on Santa Anita Avenue, one of the two main
streets in downtown Arcadia. Rusnak /Arcadia already has a strong presence on Huntington Drive, the
other main street in Downtown Arcadia.
Redevelopment Agency staff negotiated final terms for a deal to sell this and other properties to Rusnak
in 2011. However, before the documentation was complete and could be scheduled for a public
hearing, the State Supreme Court put a stay on redevelopment which prevented any new transactions.
As a result, the deal was stopped before it could be presented to the Arcadia City Council. The
elimination of redevelopment prevented the 2011 agreement from ever going forward.
Rusnak Mercedes Benz has indicated that it is prepared to execute a Purchase and Sale Agreement to
purchase the four (4) parcels that make up the 1.95 acre expansion site. Rusnak is under pressure from
Mercedes -Benz to expand or potentially have the dealership closed. Time is of the essence to proceed
with the land sale so that this important local business will be able to expand, maintaining local jobs and
consistent revenues to the City and State.
Arcadia Successor Agency
Long Range Property Management Plan
Page 9
Parcel #2:
101 -111 North Santa Anita Avenue
South end of Property along Morlan Place
View of Property looking north along Santa Anita Avenue
Date of Acquisition and its value at that time, and an estimate of current value.
The property was purchased in August 2010 for $1,716,000. It was purchased together with the
adjoining commercial property at 121 -159 North Santa Anita Avenue. These combined properties
provide approximately 240 linear feet of frontage on Santa Anita Avenue, a major commercial street in
downtown Arcadia with access to the 1 -210 freeway. An appraisal of the property was performed as of
February 23, 2010, and the value at that time was determined to be $1,560,000. Given that commercial
real estate values have remained relatively steady over the past two years, the current value of this site
is unlikely to have changed from the appraised value in February 2010.
The purpose for which the property was acquired.
The property was acquired as part of the assemblage of a larger site to sell to Rusnak Mercedes Benz to
expand the dealership, including the construction of a new showroom with frontage on Santa Anita
Avenue, which is a major commercial street in downtown Arcadia. The expansion of the dealership on
Santa Anita Avenue would give Rusnak a major presence on the two main commercial streets in
downtown Arcadia, Huntington Drive, and Santa Anita Avenue. It would also provide access from
Morlan Place on the south side and Santa Clara Street on the north side. Both Santa Anita Avenue and
Morlan Place are visible in the photographs on the site at the top of the page.
Parcel data for each property, including address, lot size and current zoning.
The address is 101 -111 North Santa Anita Avenue. The assessor parcel numbers are 5775 - 025 -905, 906,
and 907. The lot size is 14,200 sq. ft. The property has two contiguous commercial buildings with 9,460
sq. ft. of gross building area and 9,367 sq. ft. of net rentable building area. As shown in the photos
above, the building is two stories on the Morlan Place side, and one story on the Santa Anita Avenue
side. There are eleven (11) tenant spaces, including three on the second floor. The current zoning is
Central Business District (CBD) with a Downtown Overlay.
Arcadia Successor Agency
Long Range Property Management Plan
Page 10
There are two contiguous buildings that were built in 1953, and 1954. There are fifteen (15) parking
spaces behind the building, all of which have been vacated. The parking ratio of 1.59 spaces per 1,000
sq. ft. of commercial space is significantly below the City's parking standard of 5 spaces per 1,000 square
feet of commercial space. The current code would require 48 parking spaces for this amount of
commercial space. This property was a legal non - conforming use.
An estimate of the current value of the parcel including any appraisal information, if available.
The property was appraised in February 2010 for $1,560,000. When the appraisal was performed, the
property was generating rental income from the commercial tenants, which had a positive impact on its
value. The Redevelopment Agency received rent from the tenants that were in place when it purchased
the property. Currently the property is vacant and fenced. This can be seen in the photos at the top of
this section. All of the tenants have been relocated. While it has not been appraised recently, the
primary value of the property is in the land rather than the improvements. This is because the City
would not want the building reoccupied without adequate parking and without significant work done to
the building, which has suffered from several years of deferred maintenance. As a result, the current
value is estimated at approximately the same as the 2010 appraised value of $1,560,000.
An estimate of any lease, rental, or other revenues generated by the property and a description of the
contractual requirements for disposition of those revenues.
The eleven (11) tenant spaces generated $8,245 per month in gross rent revenues when they were
occupied. Most of the tenants were on month -to -month rental agreements that were in place when the
property was acquired in August 2010. For several months, before relocation efforts were initiated, the
Redevelopment Agency received these rent revenues. The City hired Overland Pacific & Cutler to handle
the relocation, which started in May, 2011 and was completed in May, 2012. The rental income
dwindled as tenants were relocated. Currently the spaces are vacant and there is no longer any rental
income.
Any history of environmental contamination or remediation efforts
There is no known history of environmental contamination on this site. A phase one environmental
review was performed during escrow which did not reveal any issues of concern.
A description of the property's potential for transit- oriented development and the advancement of
the planning objectives of the successor agency.
The use of this property for the expansion of the Rusnak Mercedes Benz dealership would advance the
planning objectives of the Arcadia Successor Agency. It would do this because the Arcadia Successor
Agency has assumed the goal of the Arcadia Redevelopment Agency to help the dealership expand. This
goal has been in the City of Arcadia's plans for a decade. The Successor Agency now controls these
properties that were purchased by the Arcadia Redevelopment Agency. One of the planning goals is
new investment on this site that will be attractive and generate revenue for the City of Arcadia. The
expansion of the Mercedes Benz dealership will meet that goal.
Arcadia Successor Agency
Long Range Property Management Plan
Page 11
In the General Plan update, which was completed in November 2010, transit- oriented development is
one of the goals identified for the downtown area to integrate with the expansion of the Gold Line mass
transit line from Pasadena through Arcadia. A significant portion of the City's downtown was rezoned to
promote transit oriented development. The higher density TOD sites are east of Santa Anita Avenue,
however, making this site not conducive for a transit - oriented development project. This area was not
zoned to allow high density residential or other types of TOD as part of the 2010 General Plan update.
A brief history of previous development proposals and activities, including the rental or lease of
property.
The property was purchased as part of a larger site assembly to create an advantageous location for
Rusnak Mercedes Benz to expand. Building a new showroom on the assembled site that includes this
parcel would give the dealership tremendous visibility on Santa Anita Avenue, one of the two main
streets in downtown Arcadia. Rusnak /Arcadia already has a strong presence on Huntington Drive, the
other main street in Downtown Arcadia.
Redevelopment Agency staff negotiated final terms for a deal to sell this and other properties to Rusnak
in 2011. However, before the documentation was complete and could be scheduled for a public
hearing, the State Supreme Court put a stay on redevelopment which prevented any new transactions.
As a result, the deal was stopped before it could be presented to the Arcadia City Council. The
elimination of redevelopment prevented the 2011 agreement from ever going forward.
Rusnak Mercedes Benz has indicated that it is prepared to execute a Purchase and Sale Agreement to
purchase the four (4) parcels that make up the 1.95 acre expansion site. Rusnak is under pressure from
Mercedes -Benz to expand or potentially have the dealership closed. Time is of the essence to proceed
with the land sale so that this important local business will be able to expand, maintaining local jobs and
consistent revenues to the City and State.
Arcadia Successor Agency
Long Range Property Management Plan
Page 12
Parcel #3:
21 Morlan Place
Current Status — fenced with Rusnak New Car Storage
Property as purchased with building, since demolished
Date of Acquisition and its value at that time, and an estimate of current value
This commercial property at 21 Morlan Place was purchased in September 2008 for $3.6 million. An
appraisal of the property was performed in April 2005, and the value at that time was determined to be
$2,470,000. The appraisal was done when there was a building on the property, as shown in the second
photo above. After the Redevelopment Agency purchased the property, it demolished the building and
paved the lot. This current status is shown in the first photo above. The April 2005 appraisal included a
value of $1,450,000 if the parcel was vacant. Since the building has been demolished, and commercial
real estate values have been relatively flat during the economic slowdown, the current value is unlikely
to be much different than the 2005 appraised value of the site if vacant.
The purpose for which the property was acquired.
The property was purchased as part of the assemblage of a commercial site to sell for the expansion of
Rusnak Mercedes Benz to enlarge the dealership. The Arcadia Redevelopment Agency approved a Land
Acquisition and Development Agreement (LADA) with Rusnak in 2004. The LADA included provisions for
property assembly to create a site for expansion along Huntington Drive adjacent to the current
dealership location. The property at 21 Morlan Place was purchased as part of that site assembly. It
was anticipated that most of Morlan Place would be vacated as part of creating the expanded site under
the LADA.
Under the current expansion plan, this parcel is be combined with the two parcels on North Santa Anita
Avenue (101 -111 & 121 -159) and the Dahlgren piece to create a parcel that is approximately 1.95 acres
that will provide the dealership with visibility on both Santa Anita Avenue and Huntington Drive, the two
major streets in downtown Arcadia. This plan does not include the vacation of any public streets. It is a
different plan than the 2004 LADA, which was never implemented because the Redevelopment Agency
was not able to acquire the other properties that were necessary.
Arcadia Successor Agency
Long Range Property Management Plan
Page 13
Parcel data for each property, including address, lot size and current zoning.
This property is 44,000 square feet in size. The assessor parcel number is 5775- 025 -902. When the
property was acquired in September 2008, there was an 18,292 sq. ft. building on the site. That building
has since been demolished. The current site is vacant, graded, fenced, and striped for parking. The
property is zoned Central Business District (CBD) with a Downtown Overlay.
An estimate of the current value of the parcel including any appraisal information, if available.
The property was appraised in April 2005 for $2,470,000. As mentioned above, when the property was
purchased in September 2008, there was a building on the site. The appraisal that was completed in
April 2005 took that into account. The appraiser also provided a value for the site if vacant. The value
of the vacant site was approximately $1 million less than an improved site. The current value is
estimated at around $1,450,000 based on the site being vacant.
An estimate of any lease, rental, or other revenues generated by the property and a description of the
contractual requirements for disposition of those revenues.
The property is currently leased to Rusnak Mercedes Benz for new vehicle storage, an arrangement that
has been in place since December 2008 . This is shown in the first photo at the top of this section. Lease
payments are $1,000 per month. Disposition of the revenues will be based on the Due Diligence Review
of non - housing funds that is currently being performed by the City's audit firm. The lease revenue will
end once the property is sold to Rusnak as part of the 1.95 acre expansion site.
Any history of environmental contamination or remediation efforts.
There was lead paint and asbestos in the building. Those were remediated and disposed of prior to
demolition, in keeping with State and Federal Law. The site no longer has any environmental issues.
A description of the property's potential for transit - oriented development and the advancement of
the planning objectives of the successor agency.
The use of this property for the expansion of the Rusnak Mercedes Benz dealership would advance the
planning objectives of the Arcadia Successor Agency. It would do this because the Arcadia Successor
Agency has assumed the goal of the Arcadia Redevelopment Agency to help the dealership expand. This
goal has been in the City of Arcadia's plans for a decade. The Successor Agency now controls these
properties that were purchased by the Arcadia Redevelopment Agency. One of the planning goals is
new investment on this site that will be attractive and generate revenue for the City of Arcadia. The
expansion of the Mercedes Benz dealership will meet that goal.
In the General Plan update, which was completed in November 2010, transit- oriented development is
one of the goals identified for the downtown area to integrate with the expansion of the Gold Line mass
transit line from Pasadena through Arcadia. A significant portion of the City's downtown was rezoned to
promote transit oriented development. The higher density TOD sites are east of Santa Anita Avenue,
Arcadia Successor Agency
Long Range Property Management Plan
Page 14
however, making this site not conducive for a transit- oriented development project. This area was not
zoned to allow high density residential or other types of TOD as part of the 2010 General Plan update.
A brief history of previous development proposals and activities, including the rental or lease of
property.
The property was purchased as part of a larger site assembly to create an advantageous location for
Rusnak Mercedes Benz to expand. Building a new showroom on the assembled site that includes this
parcel would give the dealership tremendous visibility on Santa Anita Avenue, one of the two main
streets in downtown Arcadia. Rusnak /Arcadia already has a strong presence on Huntington Drive, the
other main street in Downtown Arcadia.
Redevelopment Agency staff negotiated final terms for a deal to sell this and the other properties to
Rusnak in 2011. However, before the documentation was complete and could be scheduled for a public
hearing, the State Supreme Court put a stay on redevelopment which prevented any new transactions.
As a result, the deal was stopped before it could be presented to the Arcadia City Council.
Rusnak Mercedes Benz has indicated that it is prepared to execute a Purchase and Sale Agreement to
purchase the four (4) parcels that make up the 1.95 acre expansion site. Rusnak is under pressure from
Mercedes -Benz to expand or potentially have the dealership closed. Time is of the essence to proceed
with the land sale so that this important local business will be able to expand, maintaining local jobs and
consistent revenues to the City and State.
Arcadia Successor Agency
Long Range Property Management Plan
Page 15
Parcel #4:
"Dahlgren Parcel" - Vacant Commercial Site on Santa Clara Street, North of 21 Morlan Place
View of Dahlgren Property from Across Santa Clara Street Close up of Dahlgren Property, bordering 21 Morlan Place
Date of Acquisition and its value at that time, and an estimate of current value.
This vacant commercial property, without an address, and adjacent to 21 Morlan Place, was acquired in
May 2011 for $608,100. It was purchased to complete the 1.95 acre expansion site for Rusnak
Mercedes Benz, squaring off the site and providing clear access for the dealers' customers from Morlan
Place to Santa Clara Street. An appraisal of the property was performed as of December 2006, and the
value at that time was determined to be $335,000. The current value of the property is most likely
unchanged from the purchase price paid approximately 1 % years ago.
The purpose for which the property was acquired.
The property was acquired as part of the assemblage of a larger site to sell to Rusnak Mercedes Benz to
expand the dealership, including the construction of a new showroom with frontage on Santa Anita
Avenue. The expansion to Santa Anita Avenue would give Rusnak /Arcadia a presence on the two main
commercial streets in downtown Arcadia: Huntington Drive, and Santa Anita Avenue. This site
completed the parcel and would allow the Rusnak site plan to include an interior street for new car
delivery and service entry and exiting.
This property was acquired to complete the 1.95 acre parcel for the expansion of Rusnak Mercedes
Benz. It was not acquired until the development agreement was almost finished and this site was
necessary for access as described in the previous paragraph.
Parcel data for each property, including address, lot size and current zoning.
The property is a vacant, triangular site of approximately 6,100 sq. ft. (according to the Los Angeles
County Assessor's records. The assessor parcel number is 5775 - 025 -908. The seller provided a map that
Arcadia Successor Agency
Long Range Property Management Plan
Page 16
reflected a parcel size of 7,074.94 sq. ft.). The small size and spread out nature of the parcel are evident
from the two photographs at the start of this section. The property has never been developed and thus
has never been given an address. It has been known locally as the "Dahlgren parcel" for the name of the
family that had owned it for over 50 years. The current zoning is Central Business District (CBD) with a
Downtown Overlay. As a remnant piece of property, it is not developable on its own. It can only be
developed in combination with other adjoining properties.
An estimate of the current value of the parcel including any appraisal information, if available.
The property was purchased in May 2011 for $608,100. The Arcadia Redevelopment Agency and then
the Arcadia Successor Agency have owned the property for approximately 1 % years. It has not changed
since that time. As a result, the value should not have changed from the purchase price.
An estimate of any lease, rental, or other revenues generated by the property and a description of the
contractual requirements for disposition of those revenues.
There have been no lease revenues generated from this site. As a remnant parcel, it does not have
value as a property to be leased.
Any history of environmental contamination or remediation efforts.
The Successor Agency is unaware of any environmental contamination on this site. As it has always
been vacant, there are no building remnants on the property to contaminate the soil.
A description of the property's potential for transit- oriented development and the advancement of
the planning objectives of the successor agency.
The use of this property for the expansion of the Rusnak Mercedes Benz dealership would advance the
planning objectives of the Arcadia Successor Agency. It would do this because the Arcadia Successor
Agency has assumed the goal of the Arcadia Redevelopment Agency to help the dealership expand. This
goal has been in the City of Arcadia's plans for a decade. The Successor Agency now controls these
properties that were purchased by the Arcadia Redevelopment Agency. One of the planning goals is
new investment on this site that will be attractive and generate revenue for the City of Arcadia. The
expansion of the Mercedes Benz dealership will meet that goal.
In the General Plan update, which was completed in November 2010, transit - oriented development is
one of the goals identified for the downtown area to integrate with the expansion of the Gold Line mass
transit line from Pasadena through Arcadia. A significant portion of the City's downtown was rezoned to
promote transit oriented development. The higher density TOD sites are east of Santa Anita Avenue,
however, making this site not conducive for a transit- oriented development project. This area was not
zoned to allow high density residential or other types of TOD as part of the 2010 General Plan update.
Additionally, as a small remnant parcel, it cannot be developed on its own.
Arcadia Successor Agency
Long Range Property Management Plan
Page 17
A brief history of previous development proposals and activities, including the rental or lease of
property.
The property was purchased as part of a larger site assembly to create an advantageous location for
Rusnak /Arcadia Mercedes Benz to expand. Building a new showroom on the assembled site that
includes this parcel would give the dealership tremendous visibility on Santa Anita Avenue, one of the
two main streets in downtown Arcadia. Rusnak /Arcadia already has a strong presence on Huntington
Drive, the other main street in Downtown Arcadia.
Redevelopment Agency staff negotiated final terms for a deal to sell this and the other properties to
Rusnak in 2011. However, before the documentation was complete and could be scheduled for a public
hearing, the State Supreme Court put a stay on redevelopment which prevented any new transactions.
As a result, the deal was stopped before it could be presented to the Arcadia City Council.
Rusnak Mercedes Benz has indicated that it is prepared to execute a Purchase and Sale Agreement to
purchase the four (4) parcels that make up the 1.95 acre expansion site. Rusnak is under pressure from
Mercedes -Benz to expand or potentially have the dealership closed. Time is of the essence to proceed
with the land sale so that this important local business will be able to expand, maintaining local jobs and
consistent revenues to the City and State.
Arcadia Successor Agency
Long Range Property Management Plan
Page 18
Parcel #5
35 West Huntington Drive
View of Commercial Store Fronts on Huntington Drive View of Outside Building Fagade and Upper Floors
Date of Acquisition and its value at that time, and an estimate of current value.
This commercial property at 35 West Huntington Drive was acquired in 2006 for $4,600,000. An
appraisal of the property was performed as of February 2006, and the value at that time was
determined to be $4,175,000. Because of the real estate downturn of the past few years, it is unlikely
that the value has changed much from the original purchase price.
The purpose for which the property was acquired.
The property was purchased as part of the site assemblage of a commercial site to sell for the expansion
of Rusnak Mercedes Benz to enlarge the dealership. The Arcadia Redevelopment Agency approved a
Land Acquisition and Development Agreement (LADA) with Rusnak in 2004. The LADA included
provisions for property assembly to create a site for expansion along Huntington Drive adjacent to the
current dealership location. As the back of this property opens onto Morlan Place, its acquisition fit into
a plan to vacate most of that street as part of creating the expanded site under the LADA. As part of
preparing to sell this property to Rusnak, the three commercial tenants on Huntington Drive were
relocated by the Redevelopment Agency. The first photograph above shows the vacant commercial
spaces on Huntington Drive after being remodeled.
Since the current expansion plan involves combining four other parcels to create a 1.95 acre parcel with
frontage on North Santa Anita Avenue, this site is no longer part of the Rusnak expansion. Because the
Redevelopment Agency was not able to acquire the other properties that were necessary, the 2004
LADA was never implemented.
Arcadia Successor Agency
Long Range Property Management Plan
Page 19
Parcel data for each property, including address, lot size and current zoning.
The property address is 35 West Huntington Drive. The assessor parcel number is 5775 - 025 -901. The
lot size is 20,040 sq. ft. The property has a single commercial building that is 38,127 sq. ft., and is
divided into four floors plus a basement. When it was purchased, all five floors were used for self
storage. The three commercial spaces on the Huntington Drive side of the building were occupied. The
property is zoned Central Business District (CBD) with a Downtown Overlay.
The building was built in 1949. There are 22 marked parking spaces in the parking lot behind the
building. The size of each floor is: Basement — 7,571 sq. ft.; First floor — 7,531 sq. ft., Second Floor —
7,675 sq. ft.; Third Floor - 7,675 sq. ft.; Fourth Floor — 7,675 sq. ft. The rentable area was 22,600 sq. ft.
for the storage units and 2,000 sq. ft. the first floor commercial units.
An estimate of the current value of the parcel including any appraisal information, if available.
When the appraisal was completed in February 2006, all five floors were used for self storage and the
commercial spaces on Huntington Drive were occupied. There was also a cell tower lease with AT &T for
the roof and an equipment storage room on the fourth floor. Currently, the basement and first floor are
leased to Rusnak for parts storage and inventory. The second, third, and fourth floors are still being
used for self storage. The commercial spaces on Huntington Drive are vacant.
The site has not been appraised since acquisition. Income was an important consideration during the
February 2006 appraisal, and the revenue stream from the self storage operation is not as strong as it
was in 2006. The larger, more profitable self storage units were removed to make space for the Rusnak
parts operation. Additionally, the vacant commercial units on Huntington Drive are not providing any
rent revenues.
An estimate of any lease, rental, or other revenues generated by the property and a description of the
contractual requirements for disposition of those revenues.
There are two active leases related to this property. Rusnak Mercedes Benz operates a part storage and
inventory control operation on the first floor and basement level of the building. Rusnak makes a lease
payment of $1,688 per month for this space. In order to create space for Rusnak, the Agency relocated
the self storage tenants from the ground floor and first floor to upper floors, and removed the larger,
more lucrative self storage units that were on these two floors. AT &T wireless has a cell site on the roof
of the building, with an equipment room on the fourth floor. This lease expires in May 2013. Staff had
worked out the terms of a new lease with a large rent increase, but this process was stopped by the stay
issued by the State Supreme Court before the lease could be presented to the City Council. AT &T is
anxious to proceed with the new lease. The proposed new lease would raise the rent from $1,400 per
month to a base of $2,000 per month, with 3% annual rent increases. The new lease would increase the
value of the building because of the higher lease payments and the proposed 15 -year term.
It is also worth mentioning that the Successor Agency has a management agreement with a professional
self storage company that involves paying a monthly fee based on rent revenues. While there is a cost
Arcadia Successor Agency
Long Range Property Management Plan
Page 20
for professional management, operating a self storage building is not an area of expertise for the
Successor Agency. The Successor Agency currently receives approximately $2,000 - $4,000 per month in
remittances from the management company.
Any history of environmental contamination or remediation efforts.
There is no history of environmental contamination on this site.
A description of the property's potential for transit- oriented development and the advancement of
the planning objectives of the successor agency.
This site was originally purchased as part an effort to assemble a larger site for the expansion of Rusnak
Mercedes Benz. As this was the Agency's highest priority, its purchase advanced the planning objectives
of the Successor Agency. As stated above, it is no longer part of the expansion plans.
In the General Plan update, which was completed in November 2010, transit - oriented development is
one of the goals identified for the downtown area to integrate with the expansion of the Gold Line mass
transit line from Pasadena through Arcadia. A significant portion of the City's downtown was rezoned to
promote transit oriented development. The higher density TOD sites are east of Santa Anita Avenue,
however, making this site not conducive for a transit - oriented development project. This area was not
zoned to allow high density residential or other types of TOD as part of the 2010 General Plan update.
This specific site does not have strong potential for transit - oriented development. While it is located on
Huntington Drive, it is a mid -block site, which would not be as attractive as a corner parcel. Additionally,
the 20,040 sq. ft. property size would not allow a significant TOD development unless it was combined
with other properties to make a larger site. Lastly, the cost to vacate and demolish the building makes
its use for another purpose, such as TOD, uneconomical.
A brief history of previous development proposals and activities, including the rental or lease of
property.
As mentioned above, this site was acquired as part of the 2004 LADA between the Arcadia
Redevelopment Agency and Rusnak Mercedes Benz. As the Agency was not able to acquire the other
sites required in the LADA, those expansion plans were not implemented. The current expansion plans
to build a new showroom along North Santa Anita Avenue do not involve this site.
The information about the leasing of portions of this site is described in a previous section above. The
commercial spaces on Huntington Drive have been improved but are currently vacant. There have been
several parties interested in leasing the two spaces, but the inability of the Redevelopment Agency and
the Successor Agency to enter into new agreements due to the dissolution of Redevelopment, have
thwarted those efforts.
Arcadia Successor Agency
Long Range Property Management Plan
Page 21
USE OR DISPOSITION OF PROPERTIES
Section 34191.5(c)(2) of the Health and Safety Code requires that Successor Agencies address the use or
disposition of all properties in the Community Redevelopment Trust Fund. The properties can be
retained for governmental use, retained for future development, sold, or used to fulfill an enforceable
obligation. The legislation goes on to state the following:
• The plan should separately identify and list properties dedicated to governmental use purposes
and properties retained for purposes of fulfilling and enforceable obligation.
• Property intended to be used for a project identified in an approved redevelopment plan will be
transferred to the host city or county.
• If the successor agency plans to liquidate the property or use the revenues from the property for
any purpose other than fulfilling an enforceable obligation or for a contemplated redevelopment
project, the proceeds from the sale shall be distributed as property tax to the taxing entities.
As stated above, the Arcadia Successor Agency wishes to utilize four of its properties to complete a
project that is within an approved redevelopment plan as allowed by bullet point #2 above. As such, it is
requested that these properties be transferred to the City as soon as possible. Properties 1 -4 in the
inventory have long been planned to be part of the Rusnak Mercedes Benz expansion project, a project
that has been contemplated in the Redevelopment Agency's Five Year Implementation Plans and Mid -
Plan updates for over a decade. The former Arcadia Redevelopment Agency worked with Rusnak since
2001 to attempt to complete a deal. Currently the Successor Agency has a signed Purchase and Sale
Agreement with Rusnak and is prepared to take this project through the appropriate local land use
review process. Rusnak has been a willing and cooperative partner through this process, and we
request that this transfer be allowed to occur immediately so that the City and Successor Agency are
able to pursue this important local project. It is essential that the transfer be approved promptly
because Rusnak is under pressure from Mercedes -Benz to expand or potentially have the dealership
closed. While having the dealership purchase the Successor Agency properties and expand its facilities
would be good for all taxing entities, the alternative would a significant blow to Arcadia and the region.
Thus time is of the essence to complete this transaction to facilitate the dealership's expansion.
Attachment B provides a proposed site plan for the expanded Rusnak dealership on properties 1 -4 as
contemplated by the Successor Agency's development project. Attachment C includes the portion of
the 2010 -2015 Five Year Implementation Plan that refers to the expansion of Rusnak Mercedes Benz as
the Agency's highest priority.
With regard to the final property, 35 W. Huntington, it is the Successor Agency's intent to retain this
parcel in the short term, but, ultimately, liquidate it. While this parcel was previously considered as part
of the 2004 LADA with Rusnak, it is not part of the current deal. The City does use the current building
for storage of City property from the library, historic museum, and other departments. In addition,
Arcadia City Hall is currently going through a renovation that has necessitated the use of the self- storage
building to house City Hall records and property. Lastly, Rusnak leases two floors for parts storage and
inventory. Once the dealership has completed its expansion, it is anticipated that the parts storage will
Arcadia Successor Agency
Long Range Property Management Plan
Page 22
move on -site. The Successor Agency anticipates continuing to own and operate this building until
Rusnak moves its parts operation. Once that occurs, the City will look to sell the self- storage building.
Attachments
A. Aerial Photo of Agency Properties
B. Rusnak Expansion Site Plan
C. Arcadia Redevelopment Agency Five Year Implement Plan 2010 -2015 (excerpts showing Rusnak
expansion)
Arcadia Successor Agency
Long Range Property Management Plan
Page 23
Attachment A
Aerial Photo of Agency Properties
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Rusnak Expansion Site Plan
AVE.
SANTA ANITA
Attachment C
Five Year Implementation Plan
Two affordable housing projects have been completed through partnerships with the
Agency. One project, Heritage Park, is a 54 -unit, 100% senior housing development that
opened in September 2004, was accomplished with a $1.8 million investment from the
low and moderate income housing fund. The other project, the Alta Street Classics, is an
6 -unit, moderate income, townhome development, that opened in early 2008, provided
home ownership opportunities to first time buyers, including allowing some City
employees to move into town.
Overall, more than 1,400 full time, and 2,000 part time jobs have been created because of
Agency- assisted projects. The image and reputation of both the City of Arcadia and the
Central Redevelopment Project Area have been significantly improved through these
investments. The complete list of Agency accomplishments is included as Exhibit 1 at
the back of this Plan.
H. Accomplishments since Implementation Plan 2005 -2010
Since the approval of Implementation Plan 2005 -2010, the Agency has worked diligently
to achieve the goals and objectives outlined in the Plan. As referenced in Table 6 above,
the Agency and Rusnak/Arcadia reached a Land Assembly and Development Agreement
(LADA) in December 2004, and it was amended in November 2005. The agreement
involved the Agency acquiring certain parcels to allow Rusnak to expand its dealership in
Arcadia. Two steps in the implementation of the agreement were the purchase of the
Arcadia Self Storage building in 2006 and the Church in Arcadia site in 2008. The
Agency's ability to purchase the other properties has been limited by a ballot measure,
approved by the voters, to give up the Agency's right of eminent domain. Efforts to
acquire the additional parcels, while unsuccessful, are ongoing.
The Agency remodeled the Self Storage building, including painting the exterior and
completely redoing the two commercial spaces and the facade along Huntington Drive.
The two commercial spaces are on the market for lease. Staff relocated self storage
tenants from the basement and first floor to other floors in the building, and the Agency
leased the basement and first floor to Rusnak for parts storage. The Agency relocated the
Church in Arcadia to temporary facilities while they build their new building at 630 East
Live Oak Avenue, on land acquired from the Agency. The Agency is paying the cost of
the temporary relocation. The parking lot of the former Church property is being leased
by the Agency to Rusnak to store vehicles. The former Church building has been
demolished, with grading and paving of the building pad slated for early in 2010. The
Agency has also reached agreement on price and terms to acquire a vacant manufacturing
property at 400 Rolyn Place. The transaction is anticipated to close in mid- December.
As referenced earlier, the Agency completed the Alta Street Classics, at 119 -121 Alta
Street, a six (6) unit, moderate income townhome project, that was made available to first
time homebuyers. The Agency also acquired a vacant, two -unit residential property at 15
Lucille Street in 2009. This property will be used to increase the supply of affordable
housing in the City.
14
Table 6
Agency Owned Properties
Property Address
Type of Propertv
When Purchased
Current Status
35 West Huntington
Self Storage
2006
Self storage business
Drive
Building w/ two
still operating;
commercial units
Basement and first
floor leased to Rusnak
for parts storage;
Agency leasing two
commercials aces
21 Morlan Place
Commercial; former
2008
Parking lot leased to
site of Church in
Rusnak for vehicle
Arcadia
storage; building
demolished; pad to be
paved in early 2010
15 Lucille Street
Two unit residential
2009
Units are vacant;
property
arranging demolition
and redevelopment of
affordable housing
units
400 Rolyn Place
Manufacturing
Escrow
Agreed with seller on
price and terms;
currently in due
diligence period;
escrow closing
scheduled for mid -
December 2009
• 35 West Huntington Drive and 21 Morlan Place were purchased pursuant
to a Land Assembly and Development Agreement between the Agency
and Rusnak/Arcadia which was approved on December 7, 2004 and
amended on November 1, 2005. Both properties were purchased with
general redevelopment funds. The 21 Morlan Place transaction also
included the transfer of 630 East Live Oak to the Church in Arcadia for its
new offices, worship and meeting facilities.
• 15 Lucille Street was purchased through a foreclosure sale using the
Agency's low and moderate income housing funds.
• 400 Rolyn Place includes a 15,000 sq. ft. building, and can potentially be
used for a specific tenant or as a relocation site for one of the businesses
that will be impacted by extension of the Gold Line through Arcadia.
While the purchase is being made, at least in part, with Agency funds, it
will become an eligible transportation fund cost if it is used in conjunction
with the Gold Line extension.
11
areas, particularly the Downtown.
12. Cooperate with business, educational, civic, and service organizations to improve the
quality of life and economic opportunity for all in Arcadia.
13. Increase sales and other direct and indirect tax receipts to the City.
14. Increase tax increment and other revenues to the Agency.
15. Provide increased employment opportunities for Arcadia residents.
16. Improve the image of Arcadia, and the Downtown, as a place to live, shop and work.
SECTION 2: FUTURE_ AGENCY PROJECTS, PROGRAMS, AND
ACTIVITIES; FIVE YEAR PLANNING PERIOD (2010 -2015)
In 1985, the Agency compiled a list of twenty -six (26) projects and programs as required
by AB 265. These were adopted by the Agency on December 3, 1985, and finally by
ARA Resolution 97 on July 15, 1986. These have served as the basis of the Agency's
long -term project and program planning efforts. The list has been updated as part of the
multi -year Implementation Plan process and annually as projects were completed by the
private or public sector. The Agency's master list of projects (Master List of Projects,
Table 9) is derived from four sources: a) the 1986 list, b) the 1994 list (ARA 174)
adopted July 5, 1994, c) the October 11, 1994 list (i.e., the Downtown 2000 Program),
and d) additional programs and projects compiled by staff and incorporated into the
annual Agency budget adopted by the Board.
Many of the projects on 1985 -1986 lists and two 1994 lists have been completed (Agency
Accomplishments, Appendix F). The list below is divided into five (5) implementation
periods as shown in Table 9 through Table 13: 1) ongoing (annual); 2) short term (one to
three years); 3) intermediate term (three to six years); 4) long term (six or more years); 5)
opportunity projects (possible projects not included in any other list). Affordable
Housing programs and activities are shown in the next section.
The programs, projects, and activities listed below will serve to address remaining blight
or improve underutilized sections of the project area while meeting the goals of the
redevelopment plan. It should be noted that the Arcadia General Plan is currently
undergoing a major update, slated for completion in 2010. The revision to the General
Plan and subsequent updating of the Zoning Code will impact the implementation of
certain projects. In pursing its projects and activities, the Redevelopment Agency is
responsible for implementing the General Plan.
The projected costs to carry out the projects listed below far exceed the anticipated
financial resources of the Agency over the next five years (even without the State taking
Agency funds for ERAF to backfill for education funding). The number of projects and
programs that the Agency will be able to implement depends on a number of factors,
including the economy, real estate market, lending climate, the number of projects with
owner /developers, costs of relocation, and whether the Agency is able to issue bonds or
pursue other third party financing.
16
Table 9
Ongoing Programs, Projects, and Activities
Title of Project
Estimated Amount or Cost
Payment to 2001 bondholders
$1.68 million annually (through 2023
Payment to the Low/Moderate Income
For FY 2009 -2010 - $888,000
Housing Fund (20% of gross T.I. annually)
and Dalgrens plus vacation
Economic Development Operations
For FY 2009 -2010 - $670,000
(Redevelopment and Housing)
bond proceeds
Payment to LA County Auditor - Controller
25% of tax increment growth since 2003 -
(per SB 211, Council Ordinance 218 1)
2004, plus an additional 21 % after 2012-
2013. Estimate for 2009 -2010 - $254,000.
Reimbursement to Church in Arcadia for
$32,000
Temporary Relocation (thru August 2010)
generate new funds
Table 10
Short Term Projects, Programs & Activities —1 -3 Years
Title of Project
Project Site
Estimated Amount
Land Acquisition (Rusnak)
Rod's Grill, Elk's Lodge
$4 million (including cost
and Dalgrens plus vacation
of relocation) — potential
of Morlan Place
bond proceeds
Agency Bond Issue —
Project wide
New proceeds could range
refunding of existing 2001
from $8 — 10 million;
bonds and separate issue to
possible in solid bond
generate new funds
market
Commercial Fagade
Commercial /Industrial
$50,000 for FY 2009 -2010;
Rehabilitation Program
zones in the Project Area
probable funding increase
in 2010 -2011
ERAF payment to Los
Required by State Law
FY 2009 -2010 - $1,547,696
Angeles County
(unless CRA lawsuit is
FY 2010 -2011 - $318,643
successful
Downtown - Banner
Huntington Drive /First
$100,000
Program and
Avenue
Marketing/Outreach
Acquisition of 400 Rolyn
400 Rolyn Place
$2.1 million
Place
Grading and Paving
21 Morlan Place
$150,000
Traffic Improvements in
Various sites
$200,000
Project Area
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