Report to Successor Agency
Tuesday, January 14, 2020
Discussion
SUBJECT:
Title
CONSIDER PROVIDING DIRECTION TO STAFF REGARDING DISPOSITION OF CARSON SUCCESSOR AGENCY PROPERTY AT 20820 MAIN STREET (SUCCESSOR AGENCY)
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I. SUMMARY
This item has been placed on the agenda at the request of Mayor Robles. Pursuant to the Successor Agency’s adopted and approved Long Range Property Management Plan (“LRPMP”), the 0.58 acre-property located on the southeast corner of Main Street and Torrance Boulevard (“Property”) is designated to be transferred to the Consolidated Fire Protection District of Los Angeles County (“Fire District”) at no cost. The property has been made available to the Fire District for several years; however, the Fire District has not officially determined the site to be suitable for a fire station. The Fire District is currently finalizing its environmental site assessment as part of its due diligence process, prior to determining the site to be suitable for a fire station.
The Fire District has not demonstrated to the City that it has the funds to construct a fire station on the Property. Therefore, even if the Property was transferred to the Fire District, there is no timeline for the construction of the fire station. Alternatively, if directed by City Council, staff could explore the possibility of selling the Successor Agency (“Agency”) owned property by initiating discussions with the California Department of Finance (DOF). If successful, the Agency would follow standard procedures to market the property. This strategy could provide the City and/or the Carson Reclamation Authority (CRA) with a much needed financial assistance. In September of 2018, the City had an unsolicited offer of $1,100,000 for the Property and City staff immediately informed the Fire District of this offer. The City did not pursue the offer, to allow the Fire District more time to complete its environmental site assessment. In December 2019, the City received another unsolicited offer for $1,400,000.
In summer of 2018 and 2019, the City commented on the Kimmelman and Creek at Dominguez Hills IS and DEIRs, stating that the City has been working with the Fire District for the past several years on the Property; however, the site is constrained as it is small and adjacent to single family units. The City suggested at that time examining the possibility of locating the fire station on the County-owned property (Victoria Golf Course). Later, the City requested the County’s support to participate in the EIFD that the City was, and still is, in the process of forming. The County responded negatively to both requests.
II. RECOMMENDATION
Recommendation
DIRECT staff to provide options to the Successor Agency Board in disposing of Carson Successor Agency Property at 20820 Main Street.
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III. ALTERNATIVES
TAKE any other action(s) the Successor Agency Board deems appropriate.
IV. BACKGROUND
February 1, 2012, pursuant to State law, redevelopment agencies were dissolved and were replaced by successor agencies. The non-housing real estate holdings of the former redevelopment agencies became the property of the newly created successor agencies. The Carson Successor Agency (“CSA”) retained nine properties. Per the State Department of Finance (“DOF”), before the CSA could dispose of any of its properties it had to prepare a Long Range Property Management Plan (“LRPMP”) that addressed the disposition and use of the real properties of the former redevelopment agency. The CSA received approval from the DOF for its LRPMP on October 23, 2013.
To date, seven of the nine properties have been transferred in accordance with the LRPMP. Pursuant to the LRPMP, the Property (Exhibit No. 3) was intended to be conveyed at no cost to the Fire District for development of a new fire station. This Property and another property at 24219 S. Avalon (the parking lot adjacent to Domenick’s Pizza) are the only two other Agency properties remaining to be transferred.
V. FISCAL IMPACT
Any proceeds of sales by the CSA must be remitted to the County to be disbursed to the local taxing entities through the ROPS process. Prior CSA land sale proceeds were remitted to the Carson Reclamation Authority pursuant to a previous obligation, but that has now been fully satisfied. The City as a taxing entity will get roughly 6.7% of the sale proceeds. For example, if Agency sells property for $1.5 million (net), the City would receive approximately $105,000 in revenue.
VI. EXHIBITS
None.
Prepared by: Saied Naaseh, Community Development Director