Community & Economic Development Department

Transcription

1 Community & Economic Development Department DISPOSITION OF SUCCESSOR AGENCY OWNED PROPERTY 720 SOUTH B STREET Kymberly Horner, Economic Development Director May 22, 2018

2 SALE OF SUCCESSOR AGENCY OWNED PROPERTY AB X1 26 (Dissolution Act) was approved by Governor Brown on June 30, 2011, thus ending California s Redevelopment Agencies February 1, 2012, pursuant to AB X1 26, the City of Oxnard elected to serve as the Successor Agency ( SA ) Successor Agencies and Oversight Boards ( OB ) are required to dispose of certain property assets pursuant to AB X1 26 and AB 1484 A Long Range Property Management Plan ( LRPMP ) is required by all SA s to determine how the assets are to be disposed of 1

3 SALE OF SUCCESSOR AGENCY OWNED PROPERTY On December 31, 2015 the State Department of Finance ( DOF ) Approved of the Oxnard Successor Agency s LRPMP The DOF approved of the disposition and use of all properties listed 720 South B Street is a SA asset listed in the LRPMP in the For Sale category 2

4 3 SALE OF SUCCESSOR AGENCY OWNED PROPERTY The Oxnard Community Development Commission Successor Agency is currently in possession of an offer to purchase 720 South B Street

5 720 SOUTH B STREET BACKGROUND 720 South B Street ( Property ) is a 822 square foot building located within Heritage Square Property is a small gabled-roof two story building that is a replica of the original building, commonly referred to as the Maulhardt Winery Building In June 2017, the SA retained the services of Lee & Associates Commercial Real Estate to sell the Property 4

6 720 SOUTH B STREET BACKGROUND The Broker Opinion Value ( BOV ) of the property by Kosmont Companies identified a value of $70,000 The property was placed on the market in May 2017 Offers were presented to Lee & Associates from: Oxnard Peace Officers Association Juan Carlos Guerrero & Daniel Guerrero Friends of Heritage Square (verbal offer) 5

7 720 SOUTH B STREET BACKGROUND City Staff requested a Final and Best Offer from all Parties by December 1, 2017 The Final and Best Offer was to include the purchase price with Heritage Square Property Association ( HSPOA ) voting rights deeded to the City and a second Final and a Best with the buyer retaining the Voting Rights. Following slides represents the offers: 6

8 720 SOUTH B STREET OFFERS Oxnard Peace Officers Association - $185,000 Juan Carlos Guerrero & Daniel Guerrero - $185,000 Friends of Heritage Square - $25,000 (verbal) City of Oxnard - $50,000 Staff was directed to negotiate with the City of Oxnard The City offered to Purchase the building for Public Use 7

9 720 SOUTH B STREET OFFER TO BE CONSIDERED On January 23, 2018, the City of Oxnard City Council ( City ) and the SA approved an agreement for the City to purchase the Property Agreement authorized a budget appropriation from the General Fund for $76,122: $50,000 for the Property $25,000 for building repairs $1,122 for the property owners assessment 8

10 720 SOUTH B STREET BACKGROUND On January 29, 2018, staff presented the City/SA Purchase & Sale Agreement to the OB After careful consideration & deliberation, the OB rejected the proposed sale by a vote of 2-4 OB member comments indicated the $50,000 purchase price to be too low considering the $70,000 BOV as referenced on the LRPMP 9

11 720 SOUTH B STREET RECOMMENDATION Staff recommends the City to negotiate the purchase of the Property for an amount not to exceed $125,000 As a result of the approved prior purchase price $50,000 (General Fund), a budget appropriation for $75,000 is required (Downtown Improvement Project Settlement Funds) 10

12 BENEFITS OF CITY OWNERSHIP OF PROPERTY Keeps with the City s Economic Development Strategy Priority Goal of Downtown Revitalization City ownership of Property would allow greater public control over how the asset is used in the future Affords additional economic opportunities & tourism for Heritage Square 11

13 720 SOUTH B STREET ALTERNATIVE RECOMMENDATION That the City decline to submit a revised offer. Staff recommends the Successor Agency direct staff to accept an offer from the December 1, 2017 process; or Staff recommends the Successor Agency direct staff to accept new offers from those that submitted on or before December 1,

14 SOUTH B STREET OFFER NEXT STEPS Step 1 Successor Agency Approval Escrow and Due Diligence Period Step 2 Oversight Board Approval Oversight Board Meeting: June 2018 Step 3 State Department of Finance

15 720 SOUTH B STREET FINANCIAL IMPACT Net proceeds from sale of Property would be either (i) retained by the Successor Agency, reducing on a dollar-for-dollar basis the amount of new funding (RPTTF) to be requested in a successive ROPS period, or (ii) transferred to the Ventura County Auditor-Controller for distribution to the other taxing entities City s General Fund, as a taxing entity, of distribution would be approximately 20% of sale price 14

16 QUESTIONS