Report to Successor Agency
Tuesday, December 15, 2020
Consent
SUBJECT:
Title
CONSIDER RESOLUTION NO. 20-12-CSA APPROVING THE PURCHASE AND SALE AGREEMENT FOR REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS FOR SALE OF PROPERTY LOCATED AT 20820 S. MAIN STREET TO THE CITY OF CARSON (SUCCESSOR AGENCY)
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I. SUMMARY
The Carson Successor Agency (“CSA”) currently owns property located at 20820 S. Main Street in the city of Carson (APNs #7336-016-900 through 906, inclusive) (“Property”), as visually depicted under the Vicinity Map (Exhibit No. 1). The Property is composed of seven adjacent vacant parcels, totaling 0.58 acres, located on the southeast corner of Main Street and Torrance Boulevard. Under the proposed Purchase and Sale Agreement (“PSA”) (Exhibit No. 2) the CSA would sell the Property to the City of Carson for $885,000, which is the appraised fair market value of the Property as determined by the appraisal conducted by Anderson & Brabant, Inc. Sale proceeds for this transaction by the CSA would be remitted to the County to be disbursed to the local taxing entities.
II. RECOMMENDATION
Recommendation
1. WAIVE further reading and ADOPT Resolution No. 20-12-CSA “A RESOLUTION OF THE SUCCESSOR AGENCY OF THE CITY OF CARSON, CALIFORNIA, APPROVING THE PURCHASE AND SALE AGREEMENT FOR REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS TO SELL THE PROPERTY LOCATED AT 20820 S. MAIN STREET TO THE CITY OF CARSON.”
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III. ALTERNATIVES
Take another action deemed appropriate by the Agency Board.
IV. BACKGROUND
On 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 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 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.
Since 2006, the Carson Redevelopment Agency (“CRA”), and subsequently the CSA, have been engaged in ongoing discussions with the Los Angeles County Fire District (“LACFD”) to build a new fire station on the Property. The LACFD has stated to the CRA and CSA that no funding is available to construct a fire station on the Property. More recently, LACFD assured the CRA that funding for this fire station would be available with the passage of the Los Angeles County Fire District Measure FD. Measure FD was on the ballot on March 3, 2020 but did not pass. Therefore, even if the Property was transferred to the LACFD, there is no timeline for the construction of the fire station and the Property will remain vacant and underutilized. Therefore, the transfer to the Fire District would not meet the objectives of the LRPMP.
Furthermore, changes in development patterns along the Main Street corridor have also caused the City to rethink the appropriateness of this site for a fire station, as it is adjacent to an existing single family neighborhood making the fire station incompatible with these homes. The site has always been constrained by its shape and size to be able to fit a prototypical fire station, and there may be other more suitable land uses for this parcel adjacent to residential. Since the CSA has the responsibility of disposing the former CRA non-housing property and assets whereby sale proceeds are redistributed to the local taxing entities, it is recommended for the CSA to proceed without delay to dispose the Property to meet this responsibility. The CSA will continue to work with the LACFD to find a suitable site for a fire station when funding is identified for the new station.
Adoption of the Resolution (Exhibit No. 3) will approve the PSA, effective immediately, and the parties will then open escrow. The Resolution also authorizes the Executive Director to execute all documents necessary to effectuate the transfer of the Property in accordance with the terms of the PSA. The closing of escrow will be subject to the approval of the Los Angeles County Second Supervisorial District Consolidated Oversight Board (“Second District Consolidated Oversight Board”) and DOF if applicable.
V. FISCAL IMPACT
The sale price under the PSA is $885,000, which is the appraised fair market value of the Property. Any proceeds of sales by the CSA must be remitted to the County to be disbursed to the local taxing entities.
VI. EXHIBITS
1. Vicinity Map (pg. 4)
2. Purchase and Sale Agreement (pgs. 5-14)
3. Resolution No. 20-12-CSA (pgs. 15-27)
Prepared by: Saied Naaseh, Director of Community Development /
James Nguyen, Project Manager