SR - RES-10918 - LONG RANGE PROPERTY MANAGEMENT PLAN* �OF ° AGENDA ITEM
9 y� A'••ga,a`••' J a February 9, 2016
CI O I Y Ceti
TO: Honorable Mayor and
Members of the City Council
THRU: Rick Otto
City Manager
FROM: Lisa Kim
Economic eve opment Manager
ReviewedNerified By
City Manager
Finance Directo
To Be Presented By:
Lisa Kim
X Cons Calendar _
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1. SUBJECT
Resolution No. 10918 — A Resolution of the City Council authorizing the acceptance of the
conveyance of governmental use properties conveyed by the Successor Agency to the Orange
Redevelopment Agency pursuant to the Long Range Property Management Plan (the "LRPMP ")
and taking certain related actions.
2. SUMMARY
In December 2015, the California Department of Finance approved the Successor Agency's that
provided for the transfer of twelve (12) governmental use properties to the City of Orange and
two (2) properties for sale. The City Council is requested to accept the conveyance of the
approved government use properties from the Successor Agency.
3. RECOMMENDATION
1. Approve Resolution No. 10918.
2. Authorize the Mayor (or in the Mayor's absence, the Mayor Pro Tem) to execute the
certificate of acceptance pertaining to the related quitclaim deed(s).
4. FISCAL IMPACT
By transfer of the governmental use assets, the City of Orange will assume certain property
maintenance responsibilities.
5. STRATEGIC PLAN GOAL(S)
2. Be a fiscally healthy community
a. Expend fiscal resources responsibly
6. GENERAL PLAN IMPLEMENTATION
ITEM 3.13 1 02/09/16
Economic Development Goal 6.0: Provide sufficient infrastructure to support anticipated
economic development and growth.
Policy 6.1: Provide and maintain infrastructure adequate to support growth and expansion of
commercial, industrial and institutional areas, including water, sewer, streets, curbs, gutters,
sidewalks, storm drains, access, and parking improvements.
7. DISCUSSION and BACKGROUND
Background
The RDA Dissolution Act sets forth obligations and deadlines for redevelopment wind -down
activities, including specific language in Health and Safety Code Section 34191.5 with respect to
the preparation of the LRPMP. The Successor Agency is required to submit its LRPMP detailing
disposition and use of former Orange Redevelopment Agency real properties within six months
following receipt of a Finding of Completion. The Orange Successor Agency received its Finding
of Completion on June 12, 2014.
The LRPMP was approved by the Successor Agency Board at its November 25, 2014 meeting.
The Oversight Board approved the LRPMP at its December 3, 2014 and formal submittal to the
DOF took place on December 4, 2014. Per the DOF's directions, there were minor revisions to
the LRPMP. The DOF issued its letter approving the LRPMP, as revised, on December 10,
2015. The DOF approved the transfer a majority of the Successor Agency assets to the City for
future governmental purposes.
Discussion
Resolution No. 10918 authorizes the acceptance twelve (12) governmental use properties from
the Successor Agency. An overview of the approved governmental use properties available for
transfer are as follows:
1. The South Orange Parking Lot was acquired by the redevelopment agency in 2009 for
governmental purposes as a public parking lot in the Old Towne area.
2. The North Olive Parking Lot is comprised of two parcels and was acquired by the
redevelopment agency in 2010 for governmental purposes as a public parking lot in the
Old Towne area.
3. The North Orange Parking Lot is comprised of two parcels and was acquired by the
redevelopment agency in 2010 for governmental purposes as a public parking lot in the
Old Towne area.
4. The Atchison Street Right -of -way was acquired by the redevelopment agency in 2008 and
is comprised of a portion of the public parking lot and a small sliver of grassy area that
serves the historic Santa Fe Depot Park and the Orange Transportation Center.
5. The northeast corner of Palm and Palm property was acquired by the redevelopment
agency in 1988 and designated in the LRPMP as a future water facility site.
ITEM ~ 2 02/09/16
6. The former Fire Prevention property located at 174 S. Orange Street was acquired by the
redevelopment agency in 1990 and designated in the LRPMP as future public parking
facilities.
7. The 170 -180 S. Water Street property was acquired by the redevelopment agency in 2003
and designated in the LRPMP as a future water and fire facilities.
8. The 215 -218 State College property adjacent to Panther Village was acquired by the
redevelopment agency in 2005 and designated in the LRPMP as future water facilities.
9. The Royer Building located at 307 E. Chapman Avenue was acquired by the
redevelopment agency in 2007 and designated in the LRPMP as future water facilities.
10. The South Grand Apartments located at 124 -142 S. Grand Street was acquired by the
redevelopment agency in 2007 and designated in the LRPMP as future public parking
facilities.
11. The 7,317 square foot remnant parcel located at W. Chapman Avenue and I -5 Freeway
was acquired by the redevelopment agency in 2010 and designated in the LRPMP as
future water facilities.
12. The 123 -129 N. Cypress property was acquired by the redevelopment agency in 2010 and
designated in the LRPMP as future public pedestrian paseo and the remnant portion
would be available for disposition.
Two properties listed in the LRPMP have been identified for sale and not part of this City
transfer.
13. The 29,380 square foot remnant property located at the northwest corner of State
College Blvd. and Anaheim Way was acquired by the redevelopment agency in 2008 and
designated in the LRPMP as sale to the Regents of the University of California at its fair
market value of $440,000. Formal approval of this transaction will be considered by the
City Council at a future date.
14. The 19,672 square foot remnant property located at the southwest corner of The City
Drive and the I -5 Freeway was acquired by the redevelopment agency in 2008. This
property was sold to F.H.P., L.P. at its fair market value of $154,400 and escrow closed
on June 13, 2012. The remnant property has since been redeveloped and part of the new
Ayres Suite Hotel. All property sale proceeds have been transmitted to the Orange
County Auditor - Controller for distribution to the taxing entities. DOF requested
documentation of this transaction in the LRPMP and no further action for this property is
required.
ITEM 3 02/09/16
It is recommended that the City Council approve Resolutions No. 10918 accepting the Successor
Agency's conveyance of the governmental use properties from the Successor Agency.
8. ATTACHMENTS
• Resolution No. 10918
• Long Range Property Management Plan, in the form approved by the DOF
• Determination letter by the DOF dated December 10, 2015
020916c_SA Asset Transfer LRPMP_City
ITEM 4 02/09/16
RESOLUTION NO. 10918
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE
AUTHORIZING THE ACCEPTANCE OF GOVERNMENTAL USE
PROPERTIES CONVEYED BY THE SUCCESSOR AGENCY OF THE
ORANGE REDEVELOPMENT AGENCY PURSUANT TO THE LONG
RANGE PROPERTY MANAGEMENT PLAN AND TAKING CERTAIN
RELATED ACTIONS
WHEREAS, pursuant to AB X1 26 (which was enacted in June 2011), as substantially
upheld by the California Supreme Court's decision in California Redevelopment Association, et
al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the Orange Redevelopment Agency (the
"Former Agency ") was dissolved as of February 1, 2012, the Successor Agency to the Orange
Redevelopment Agency (the "Successor Agency ") was constituted, and the Oversight Board of
the Successor Agency (the "Oversight Board ") was established; and
WHEREAS, AB X1 26 added Part 1.8 (commencing with Section 34161) and Part 1.85
(commencing with Section 34170) to Division 24 of the California Health and Safety Code
( "HSC ") (such Parts 1.8 and 1.85, including amendments and supplements enacted after AB X1
26, being referred to herein as the "RDA Dissolution Act "); and
WHEREAS, pursuant to HSC Section 34175(b), all real properties of the Former
Agency have been transferred to the control of the Successor Agency; and
WHEREAS, pursuant to HSC Section 34191.5(b), the Successor Agency prepared a long
range property management plan (the "LRPMP ") which addresses the disposition and use of the
real properties (and interests in real property) of the Former RDA; and
WHEREAS, the Oversight Board adopted Resolution No. OB -0058, on December 3,
2014, approving the LRPMP; and
WHEREAS, State Department of Finance (the "DOF ") issued an approval letter on
December 10, 2015, indicating that the DOF has reviewed and approved the LRPMP; and
WHEREAS, pursuant to HSC 34191.3(a), the DOF- approved LRPMP shall govern, and
supersede all other provisions relating to, the disposition and use of all real property assets of the
Former Agency; and
WHEREAS, the LRPMP, as approved by the DOF, provides for the transfer of twelve
properties — identified in the LRPMP by Property Nos. 1 through 12 (collectively, the
"Governmental Use Properties ") — to the City of Orange (the "City "); and
WHEREAS, on January 27, 2016, the Oversight Board adopted Resolution No. OB-
0070 directing the Successor Agency to complete the transfer of the Governmental Use
Properties pursuant to the LRPMP; and