Report to Successor Agency and Housing Authority
Tuesday, February 21, 2017
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER RESOLUTION NO. 17-05-CSA APPROVING THE PURCHASE AND SALE AGREEMENT BY AND BETWEEN THE CARSON SUCCESSOR AGENCY AND THE CARSON HOUSING AUTHORITY FOR SALE OF PROPERTY LOCATED AT 600 W. CARSON STREET (SUCCESSOR AGENCY AND HOUSING AUTHORITY)
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I. SUMMARY
This action is an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions (Agreement) by and between the Carson Successor Agency (Agency) and the Carson Housing Authority (Authority), for the property located at 600 W. Carson Street (Property). The Authority now wishes to acquire the Property (Exhibit No. 1) to facilitate future development of a mixed-use affordable veteran’s housing project, which was approved by the Housing Authority Board on January 24, 2017. Pursuant to the Agreement (Exhibit No. 2), the Property will be sold at the appraised fair market value of $628,600.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. OPEN the Public Hearing, TAKE public testimony, and CLOSE the Public Hearing.
2. WAIVE further reading and ADOPT Resolution No. 17-05-CSA, “A RESOLUTION OF THE Carson Successor Agency APPROVING THE PURCHASE AND SALE AGREEMENT BY AND BETWEEN THE CARSON SUCCESSOR AGENCY AND the Carson Housing Authority FOR SALE OF PROPERTY LOCATED AT 600 W. CARSON STREET, CARSON, CALIFORNIA.”
3. ADOPT Resolution No. 17-04-CHA “A Resolution of the Carson Housing Authority Amending the fiscal year 2016-17 budget in the Carson Housing Authority Fund.”
4. APPROVE the Authority’s acquisition of the property located at 600 W. Carson Street.
5. AUTHORIZE the Chairman to execute the Agreement following approval as to form by the Authority/Agency Counsel.
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III. ALTERNATIVES
TAKE another action the Board deems appropriate.
IV. BACKGROUND
On January 24, 2017 the Authority approved a Disposition and Development Agreement (DDA) by and between the Authority and Carson Figueroa Affordable Housing, LP for development of a 51 unit affordable veteran’s housing project that includes 2,500 square feet of commercial/retail space (Project). Under the Carson Street Master Plan (Master Plan), the Property is slated to be developed into a mixed-use project. However, its small size precludes that without combining it with the adjacent 0.70-acre site, which contains a liquor store and residential property. The Authority is now under contract to acquire those properties pursuant to the DDA and wishes to acquire the Property to assemble the land necessary to develop the proposed Project.
Acquisition of the Property would provide the Authority with a large enough parcel for development of the Project, which is consistent with the Master Plan. It would also provide the Property necessary to effectuate the terms under the DDA.
Pursuant to dissolution law, the Agency is responsible for selling off its real property assets. The sale of the Property is in accordance with the approved Long Range Property Management Plan (LRPMP) and HSC 34181 (f). The sale price of $628,600 is the value that was established by an independent fair-market appraisal dated July 11, 2016, by Goeppner and Associates, Inc. The sales proceeds will be distributed in accordance with the DOF approved LRPMP. Adoption of Resolution No. 17-05-CSA (Exhibit No. 3) authorizes the Agency to sell the Property to the Authority and approval of Resolution No. 17-04-CHA (Exhibit No. 4) amends the Authority budget to appropriate Authority funds for the acquisition of the Property.
V. FISCAL IMPACT
The purchase price of $628,600 will be funded from the Authority’s Taxable Housing Bond Funds. This purchase is not included in the Authority’s FY 2016/17 budget. Upon approval of the Agreement, funds shall be appropriated in 55-70-790-966-8001/01029-00. The estimated available fund balance in the Housing Authority is about $1.9 million at June 30, 2017. This amendment would reduce that amount to about $1.3 million. The sale proceeds due to the Agency will be used pursuant to the state approved LRPMP.
VI. EXHIBITS
1. Vicinity Map. (pg. 4)
2. Purchase and Sale Agreement. (pgs. 5-26)
3. Resolution No. 17-05-CSA. (pgs. 27-29)
4. Resolution No. 17-04-CHA. (pgs. 30-31)
Prepared by: Amelia Soto, A/Project Manager