I. RECOMMENDATION:
Staff recommends Council's adoption of Resolution No. 4108 to advance the required disposition of former Successor Agency property (APN 071-131-06T, 071-131-07T, and 071-131-08T, also known as Property (17) on the Long Range Property Management Plan ("LRPMP").
II. BACKGROUND:
Pursuant to the Surplus Land Act, as amended by Assembly Bill 1486, staff is recommending to initiate disposition by commencing a surplus property disposition processes described herein.
Under the Dissolution Act and HCD's implementing guidelines, public agencies are now obligated to first make properties that are not under contract available as surplus properties before entertaining other offers. Pursuant to Surplus Land Act, public agencies must first designate the properties as surplus property, then provide notice of their availability to specified nonprofit housing providers and certain other entities before engaging in negotiations to dispose of the properties with any other entity. The City Council, acting as Successor Agency to the former Redevelopment Agency of the City of Coalinga ("Successor Agency") may approve this resolution.
III. DISCUSSION:
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 Coalinga Redevelopment Agency ("Former Redevelopment Agency"). As part of that process, the Successor Agency must dispose of all non-housing properties of the Former Agency in an expeditions manner aimed at maximizing value, all pursuant to the requirements of the Dissolution Law and in particular in compliance with the LRPMP as approved by the State of California, Department of Finance on December 30, 2015.
Under the LRPMP, 11 of the 19 properties are to be sold by the Successor Agency, including Property 17, or APNs 072-131-06T, 072-131-07T, and 072-131-08T ("Property"). The Property is a 0.51 acre vacant commercial parcel located on Elm Avenue between Coalinga Plaza and 4th Street.
On January 12, 2012, the City Council of the City of Coalinga ("City"), by Resolution No. 3489, elected to serve as the Successor Agency.
Under the state's Surplus Land Act, public agencies are now obligated to first make properties that are not under contract available as surplus properties before entertaining other offers. The process for surplus properties disposition entails these main actions.
- Under the Surplus Land Act, once the surplus designation is made, a notice of availability is prepared and transmitted to housing sponsors and other parties as required by law.
- Those entities have sixty (60) days to notify the Successor Agency that they are interested in the property by providing a notice of intent.
- Thereafter, the Successor Agency must negotiate in good faith with any qualifying entity expressing interest in the property.
- If the Successor Agency and the qualifying entity cannot come to an agreement within ninety (90) days of the commencement of negotiation, or no qualifying entity expresses interest in the property during the sixty (60) day notice period, the Successor Agency is able to market and sell the property to any entity.
- The Successor Agency is not required to sell the property to a qualifying entity for less than fair market value, but is required to negotiate with qualifying entities in "good faith". Among other things, the Successor Agency is prohibited from negotiating with a potential buyer, other than a qualifying entity, until the ninety day (90) day period has ended. In short, the Successor Agency could enter into an agreement within the 90 day period or wait until the 90 day period lapses before proceeding with negotiations with another buyer.
Under the Dissolution Law, a successor agency's action s are subject to review by a seven-member oversight board. For this Successor Agency, its oversight board is referred to as the Fresno County Oversight Board ("Oversight Board"), consisting of seven members representing various interests in Fresno County. The Oversight Board will consider a similar action at their next scheduled meeting on October 27, 2022, after which the Successor Agency would proceed with notification.
The complete tentative disposition schedule is detailed below:
August 4, 2022 - Declare APNs 072-131-06T, 072-131-07T, and 072-131-08T as Surplus Property
October 20, 2022 - Oversight Board approved Surplus Property Designation
October 27, 2022 - Distribute Notice of Availability
December 26, 2022 - Notice of Intent Due from Qualifying Entities
March 27, 2023 - Good Faith Negotiation Period Ends
IV. ALTERNATIVES:
None
V. FISCAL IMPACT:
The designation of surplus property has nominal costs. Costs include staff and consultant time for preparing the required documents, transmitting the Notice of Availability, receiving and analyzing offers, and presenting recommendations to the City Council. The estimated cost of the surplus property disposition is $2,000 and would be paid from the Successor Agency Fund. | | |