I. RECOMMENDATION:
City Manager recommends approval of Resolution No. SA-334 approving a Vacant Land Purchase Agreement and Joint Escrow Instructions and Addendum No. One (together, "Replacement Agreement") between the Successor Agency to the Redevelopment Agency of the City of Coalinga ("Successor Agency"), as seller, and Rajinder Singh ("Replacement Purchaser"), as buyer, for the disposition of 155, 153, and 165 E. Elm Ave. ("Property"), Property No. 17 of the Successor Agency's Long Range Property Management Plan ("LRPMP").
II. BACKGROUND:
As a result of the dissolution of redevelopment, the Successor Agency was created to administer enforceable obligations and wind down the affairs of the former Redevelopment Agency of the City of Coalinga (“Former Agency”). As part of that process, the Successor Agency must dispose of all non-housing properties of the Former Agency. Should the Successor Agency approve the Replacement Agreement, it will be submitted to the Fresno County Consolidated Oversight Board for final review and approval.
III. DISCUSSION:
The Successor Agency was required to develop a LRPMP to assist in the disposing of properties possessed by the Former Agency. The LRPMP calls for the sale of the Property (Property 17 in the LRPMP), as well as ten other properties, along with the transfer of 11 properties to the City of Coalinga (“City”) for governmental use.
The Property is approximately 0.51 acres of vacant land, zoned as Central Trading District C-4 in the City’s Zoning Ordinance. The Former Agency acquired the Property in 1988 and held ownership until dissolution in 2012, when the Property was transferred by operation of law to the Successor Agency.
The offer from the Replacement Purchaser under the proposed Replacement Agreement is the first offer since the Original Purchaser cancelled escrow. The Original Purchaser and the Successor Agency had signed a purchase and sale agreement (“Original Agreement”) and received approval from the Council on June 20, 2019 and Oversight Board on November 7, 2019. On February 6, 2020, the Original Purchaser notified the Successor Agency that they were cancelling escrow on the Original Agreement. The Replacement Purchaser made their offer for the Property thereafter.
Department of Finance's ("DOF") role in the review of a purchase and sale agreement under an approved LRPMP was amended in 2015 by Senate Bill 107, effective that October. Under the Dissolution Law Section 34191.5(f), actions to implement the disposition of property pursuant to an approved LRPMP shall not require review by the DOF. If the Fresno County Consolidated Oversight Board approves the Replacement Agreement, then that will be the final action to proceed with implementation of the sale under the Replacement Agreement.
The Property is approximately 0.51 acres of vacant land, zoned as Central Trading District C-4 in the City’s Zoning Ordinance. The Former Agency acquired the Property in 1988 and held ownership until dissolution in 2012, when the Property was transferred by operation of law to the Successor Agency.
The offer from the Replacement Purchaser under the proposed Replacement Agreement is the first offer since the Original Purchaser cancelled escrow. The Original Purchaser and the Successor Agency had signed a purchase and sale agreement (“Original Agreement”) and received approval from the Council on June 20, 2019 and Oversight Board on November 7, 2019. On February 6, 2020, the Original Purchaser notified the Successor Agency that they were cancelling escrow on the Original Agreement. The Replacement Purchaser made their offer for the Property thereafter.
Department of Finance's ("DOF") role in the review of a purchase and sale agreement under an approved LRPMP was amended in 2015 by Senate Bill 107, effective that October. Under the Dissolution Law Section 34191.5(f), actions to implement the disposition of property pursuant to an approved LRPMP shall not require review by the DOF. If the Fresno County Consolidated Oversight Board approves the Replacement Agreement, then that will be the final action to proceed with implementation of the sale under the Replacement Agreement.
The Successor Agency was required to develop a LRPMP to assist in the disposing of properties possessed by the Former Agency. The LRPMP calls for the sale of the Property (Property 17 in the LRPMP), as well as ten other properties, along with the transfer of 11 properties to the City of Coalinga (“City”) for governmental use.
The Property is approximately 0.51 acres of vacant land, zoned as Central Trading District C-4 in the City’s Zoning Ordinance. The Former Agency acquired the Property in 1988 and held ownership until dissolution in 2012, when the Property was transferred by operation of law to the Successor Agency.
The offer from the Replacement Purchaser under the proposed Replacement Agreement is the first offer since the Original Purchaser cancelled escrow. The Original Purchaser and the Successor Agency had signed a purchase and sale agreement (“Original Agreement”) and received approval from the Council on June 20, 2019 and Oversight Board on November 7, 2019. On February 6, 2020, the Original Purchaser notified the Successor Agency that they were cancelling escrow on the Original Agreement. The Replacement Purchaser made their offer for the Property thereafter.
Department of Finance's ("DOF") role in the review of a purchase and sale agreement under an approved LRPMP was amended in 2015 by Senate Bill 107, effective that October. Under the Dissolution Law Section 34191.5(f), actions to implement the disposition of property pursuant to an approved LRPMP shall not require review by the DOF. If the Fresno County Consolidated Oversight Board approves the Replacement Agreement, then that will be the final action to proceed with implementation of the sale under the Replacement Agreement.
IV. ALTERNATIVES:
Do not approve Resolution No. SA-334.
V. FISCAL IMPACT:
The property was originally approved for sale by the Oversight Board to Walid Saif Muharram ("Original Purchaser") on November 7, 2019 for $100,000. However, the Original Purchaser cancelled escrow before the sale could be finalized. The City then found a Replacement Purchaser who, under the terms of the Replacement Agreement, will acquire the Property for the price of $150,000. Per Health and Safety Code, Division 24, Part 1.85 (beginning with section 34170) ("Dissolution Law"), the Successor Agency must either submit the net proceeds of the sale to the County Auditor-Controller for distribution to the affected taxing entities or spend the proceeds on recognized enforceable obligations.
Under Section 3A of the PSA, within three (3) business days after the Replacement Purchaser has received a copy of the Replacement Agreement and accepted the terms and executed the Replacement Agreement, the Replacement Purchaser is to deposit $1,000 into escrow. Per an addendum to the Replacement Agreement, the Replacement Purchaser intends to pay all cash. The deposit shall be applied to the purchase price. In the event the escrow is terminated, the deposit is refunded to the party entitle to the funds. If the Successor Agency received any funds from a canceled escrow, such proceeds would be available for and restricted to enforceable obligations on a future ROPS. | | |