HomeMy WebLinkAboutSR - - PROPERTY TRANSFER 1649 WEST CHAPMAN AVENUE0,130
�� AGENDA ITEM
' "o ..,�... February 10, 2015
TO: Honorable Chairperson and Directors
of the Successor Agency to
the Orange Redevelopment Agency
THRU: John W. Sibley
Executive Director
FROM: Rick Otto
Assistant Executiv for
1. SUBJECT
edNer'fied By:
anager
f
e Dir for
To Be Presen
Aaron Schulze
X Cons Calendar _
City Mgr Rpts
Council Reports _
Legal Affairs
Boards /Crates _
Public Hrgs
Admin Reports
Plan /Environ
Approve the requested consent by the Successor Agency to allow an ownership transfer of the
property located at 1649 West Chapman Avenue from Glen R. Nelson and Steven A. Nelson to
The Centers, LLC.
2. SUMMARY
In 2010, the Orange Redevelopment Agency approved a rehabilitation loan to Glen R. Nelson
and Steven A. Nelson under the Orange Redevelopment Agency's Small Business Assistance
Program. The loan funded certain improvements to their commercial center located at 1649 West
Chapman Avenue. The loan agreement requires written consent from the Successor Agency
before transferring ownership of the property. Messrs. Nelson have requested that the Successor
Agency grant consent to transfer the property to The Centers, LLC.
13. RECOMMENDATION I
Authorize the Executive Director to provide Messrs. Nelson with written consent to transfer
ownership of the property to The Centers, LLC subject to the approval of the Oversight Board
and State Department of Finance.
14. FISCAL IMPACT
None.
15. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community.
e. Create an environment to attract, retain and expand economic opportunities.
SAORA ITEM 3. 30 1 2/10/15
6. GENERAL PLAN IMPLEMENTATION
Not applicable.
7. DISCUSSION and BACKGROUND
BACKGROUND
In March, 2010 the Orange Redevelopment Agency through the Small Business 'Assistance
Program provided Glen R. Nelson and Steven A. Nelson, (collectively referred to as the Property
Owners) with a commercial rehabilitation loan to complete various exterior improvements to the
commercial center located at 1649 West Chapman Avenue. The improvements were completed
in 2012. Loan repayment began on July, 12012, and will continue until June 1, 2021. During this
period, the property owners are required to maintain the property.
DISCUSSION
The Property Owners have requested that the Successor Agency grant permission to transfer
ownership in the property from Glen R. Nelson and Steven A. Nelson to The Centers, LLC. The
proposed transfer is between parties in which the proportional interests of the transferors and the
transferees being transferred remain the same after the transfer. The purpose of the transfer
therefore is not to change the parties involved in the ownership, or the proportion of their
interests, but to create a legal entity that is more conducive to property ownership.
The loan agreement requires written consent from the Agency before transferring ownership of
the property. As a result of the dissolution of the redevelopment agency, approval from the
Successor Agency is requested. It is recommended that the Successor Agency authorize the
Executive Director to provide the property owners with written consent to transfer ownership to
The Centers, LLC subject to the approval of the Oversight Board and State Department of
Finance.
7. ATTACHMENTS
• Letter from Messrs. Nelson, dated December 8, 2014
• Form of Letter to Grant Consent to Transfer Ownership
N: \Economic Development Files \STAFF REPORTS\2015 \011315a Nelson Commercial Center Approval of Transfer SA.doc
SAORA ITEM 2 2/10/15