HomeMy WebLinkAboutItem 3b: Redevelopment Agency Purchase of Property on Santa Clara St. (Assessor Parcel Number 5775-025-025) < < 1
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STAFF REPORT
Arcadia Redevelopment Agency
DATE: April 5, 2011
TO: Chair and Members of the Agency Board
FROM: Jason Kruckeberg, Assistant City Manager /Development Services
Director -r
By: Jerry Schwartz, Economic Development Manager
SUBJECT: AUTHORIZATION TO APPROPRIATE FUNDS FROM
REDEVELOPMENT AGENCY UNDESIGNATED RESERVES AND
AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE A PURCHASE
AND SALE AGREEMENT TO PURCHASE PROPERTY ON SANTA
CLARA STREET IDENTIFIED AS ASSESSOR PARCEL NUMBER 5775-
025 -025 (THE "DAHLGREN PROPERTY ")
Recommendation: Approve
BACKGROUND
During Closed Session at the March 1, 2011 City Council /Agency Board Meeting, the
Agency Board gave staff parameters to negotiate to purchase a commercially -zoned
property located along Santa Clara Street. This property is vacant and thus does not
have a street address; it is identified as Assessor Parcel Number 5775 - 025 -025 and is
owned by Don and Ray Dahlgren ( "Dahlgren Property "). Staff has agreed on the details
of a purchase of the Dahlgren property and is currently processing the purchase
agreement. The Agency Board must authorize the budget expenditure to allow this
purchase to be completed. The subject property is an important portion of frontage
along Santa Clara Street and would complete an assembly of nearly 2 acres of property
acquired in the last several years by the Arcadia Redevelopment Agency.
DISCUSSION
The Agency Board provided parameters for staff to negotiate with the Dahlgrens to
acquire this piece of property on March 1, 2011. Agency staff has selected title and
escrow consultants and is in the process of completing the purchase agreement with
the owners. Acquisition cost for the real property is established at $608,100. Escrow
costs and other ancillary acquisition costs are estimated at no more than $15,000, for a
total requested appropriation of $623,000. The property is vacant and thus does not
require any demolition or abatement of environmental materials. In addition, Agency
staff conducted a Phase 1 Environmental Study on the neighboring property (21 Morlan
Place) which revealed no issues. The property includes an important segment of
frontage along Santa Clara Street that would be critical for any future development
plans for the site. The Dahlgren property is the fourth and final parcel in an acquisition
plan put in place several years ago by the Agency. The adjacent property at 21 Morlan
Place, the former Church in Arcadia site, was acquired in 2008. Two properties along
Santa Anita Avenue between Santa Clara and Morlan Place were acquired by the
Agency in 2010. With the addition of the Dahlgren parcel, the Agency will own nearly 2
acres of prime commercial property within the Central Redevelopment Project Area.
The Agency has the funds available to complete this transaction within the
Undesignated Redevelopment Agency Reserve Fund. Since this transaction was not
included in the Agency's 2010 -2011 budget, the Agency Board needs to appropriate the
funds from Agency reserves.
CALIFORNIA ENVIORNMENTAL QUALITY ACT (CEQA)
The acquisition of the property identified as Assessor Parcel Number 5775 - 025 -025 at
is exempt from CEQA because it is not considered a project per Section 15061 (b) (3) of
the CEQA guidelines. Any future project proposed on this property would be subject to
additional environmental review.
FISCAL IMPACT
The appropriation would be taken from the Agency's Undesignated Reserve Fund,
which currently contains approximately $5 million in undesignated funds. There is no
impact on the General Fund.
RECOMMENDATION
Authorize the appropriation of $623,000 from Redevelopment Agency Undesignated
Reserves and authorize the Executive Director to execute a purchase and sale
agreement to complete the land purchase transaction of Assessor Parcel Number 5775-
025 -025 (the Dahlgren Property).
Approved by: cam•.. -i'
Donald Penman, City Manager /Executive Director
Authorize Appropriation - Dahlgren Property
April 5, 2011
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