The URL can be used to link to this page

Home My WebLink About2021-07 CC Resolution RESOLUTION NO. 2021-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN THE CITY OF TEMECULA, AS BUYER, AND HOFF INVESTMENTS, L.P. AND PMD INVESTMENTS, L.P., AS SELLERS (APNS 910-262-009 AND 910-262-010) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Findings. A. The City of Temecula("City") is a municipal corporation, located in the County of Riverside, State of California. B. The City has succeeded to the housing assets of the former Temecula Redevelopment Agency(RDA). Although the City may act in its capacity as the housing successor to the former RDA, there is no independent legal entity designated as the "housing successor". The Redevelopment dissolution laws authorize the City to assume the role of successor to the RDA housing assets and the City Council approved this action in 2012. Accordingly, as the successor to the RDA housing assets,the City may acquire property using the 2017B Housing Bond proceeds of the former redevelopment agency. C. The City seeks to acquire the following two vacant parcels that were listed for sale on the open market with Lee&Associates: (i)APN 910-262-009, which is an approximate 1.64- acre vacant parcel located at the western terminus of McCabe Court described more particularly on Exhibit "A-I" and depicted on Exhibit "B" to the attached Purchase and Sale Agreement, and (ii) APN 916-262-010, which is an approximate 1.53-acre vacant parcel located at the southeast corner of Jefferson Avenue and Southbound offramp from Interstate 15 to French Valley Parkway Interchange described more particularly on Exhibit "A-2" and depicted on Exhibit "B" to the attached Purchase and Sale Agreement. The real properties identified as APNs 910-262-009 and 910-262-010 are referred to below collectively as the"Subject Properties". The Subject Properties are owned by Hoff Investments, L.P. and PMD Investments, L.P. ("Sellers"). D. The City obtained an independent fair market value appraisal of the Subject Properties prepared by the appraisal firm Perdue, Russell, Matthies& Fusco Real Estate Appraisal that used a date of value of October 31, 2019 ("2019 Appraisal"). The City also obtained an appraisal review of the 2019 Appraisal dated July 24, 2020 prepared by Valbridge Property Advisors. The appraisal review found that the 2019 Appraisal complies with USPAP requirements, state and federal appraisal regulations, and Caltrans guidelines. The City and the Owners negotiated the City's purchase of the Subject Properties and agreed that the City would purchase the Subject Properties for the purchase price of$2,901,612.00,which is based on the fair market value of $21.00 per square foot. The Purchase Price is allocated as follows: (i) $1,231,818.00 for the portion of the fair market value for the total approximate 58,658 square foot portions of APN 910-262-009 and APN 910-262-010 described more particularly in the form of Grant Deed attached as Exhibit "C" to the Agreement, and (ii) $1,669,794.00 for the portion of the fair market value for the total approximate 79,514 square foot portions of APN 910-262-009 and APN 910-262-010 referred described more particularly in the form of Grant Deed attached as Exhibit"D" to the Agreement. E. The City has no current development plans for the Subject Properties. The acquisition of the Subject Properties results in the transfer of ownership of the Subject Properties. The City seeks to purchase the Subject Properties to hold for a future public use. Specifically, the City seek to purchase for future public use, namely potential public street and highway purposes, and all uses necessary or convenient thereto,the portions of APN 916-262-009 and APN 916-262- 010 that are within the draft proposed footprint of the proposed Phase III of the French Valley Parkway/I-15 Improvements Project("proposed Phase III"). The acquisition of portions of APN 916-262-009 and APN 916-262-010 by the City, acting in its capacity as Housing Successor, enables the City to acquire the portions of the Subject Properties located outside of the proposed Phase III footprint for potential future affordable housing purposes. The acquisition of the Subject Properties for future municipal purposes is authorized pursuant to Government Code Sections 37350, 37350.5, 37351, 37353, 37364, and other provisions of law. The City would not proceed with the use of the Subject Properties for a public use until it completes applicable environmental review for any future proposed projects. Section 2. Approval of Purchase and Sale Agreement and Joint Escrow Instructions Between the City of Temecula, as Buyer, and Hoff Investments, L.P. and PMD Investments,L.P.as Sellers(APNs 910-262-009 and 910-262-010),including Exhibits thereto, and Authority of City Manager to Implement the Purchase of the Subject Properties. The City Council hereby approves the Purchase and Sale Agreement and Joint Escrow Instructions Between the City of Temecula and the City of Temecula, Acting in its Capacity as Housing Successor, as Buyers, and Hoff Investments, L.P. and PMD Investments, L.P., as Sellers (APNs 910-262-009 and 910-262-010) ("Agreement") and exhibits thereto. Section 3. Environmental Review. The approval of the acquisition of the Subject Properties is not a"project" under the California Environmental Quality Act(CEQA)because the acquisition does not involve a commitment to a specific project on the Subject Properties that may result in a potentially significant physical impact on the environment,as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4). The proposed acquisition is exempt from the requirements of CEQA and the City's CEQA Guidelines pursuant to CEQA Guidelines Section 15061(b)(3)because it can be seen with certainty that there is no possibility that the acquisition of the Subject Properties will have a significant effect on the environment. The acquisition of the Subject Properties involves the transfer of ownership of interests in land only to hold said Subject Properties for potential future public use. The City will undertake CEQA review at such time in the future when the City determines to proceed with any projects on said Subject Properties. Section 4. City Manager's Authority. The City Manager is authorized to execute the Agreement in substantially the form attached. A copy of the final Agreement shall be placed on file in the Office of the City Clerk. A copy of the recorded lot line adjustment documents, perfecting deeds, and Grant Deeds referenced in the Agreement and the forms of which are attached as Exhibits to the Agreement shall also be placed on file in the Office of the City Clerk. The City Manager (or the City Manager's designee), is hereby authorized, on behalf of the City, 2 to take all actions necessary and convenient to carry out and implement the Agreement, and to administer the City's obligations,responsibilities and duties to be performed under the Agreement, including but not limited to, execution of the Certificates of Acceptance, applicable lot line adjustment documents, escrow instructions, and other similar agreements and documents as contemplated by or described in the Agreement or as necessary and convenient to implement the Agreement and to effectuate the acquisition of the Subject Properties. Section 5. Certification. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 9th day of February, 2021. ryann Edwards, Mayor ATTEST: ffire. Randi •hl, City Clerk [SEAL] 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 2021-07 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 9th day of February, 2021, by the following vote: AYES: 5 COUNCIL MEMBERS: Alexander, Edwards, Rahn, Schwank, Stewart NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None Randi Johl, City Clerk 4