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HomeMy WebLinkAbout09_083 CC ResolutionRESOLUTION NO. 09-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A "PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS" BETWEEN THE TEMECULA REDEVELOPMENT AGENCY AND TEMECULA WATER PARK, LP, FOR THE SALE OF APPROXIMATELY 19.7 ACRES AT THE NORTHWEST CORNER OF DIAZ ROAD AND DENDY PARKWAY (APN: 909-370-002) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula hereby finds, determines and declares that: A. The Redevelopment Agency of the City of Temecula ("Agency") is a community redevelopment agency duly organized and existing under the Community Redevelopment Law ("CRL"), Health and Safety Code Sections 33000 et seq. and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Temecula. ' B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988-1" (hereafter the "Redevelopment Plan") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Redevelopment Plan are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91-08, 91-11, 91-14, and 91- 15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Redevelopment Plan from the County to the City. Pursuant to Ordinance Nos. 91-11 and 91-15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Redevelopment Plan as of July 1, 1991. C. The proposed Purchase and Sale Agreement ("Agreement') between the Agency and Temecula Water Park, LP, a California limited partnership ('Buyer") provides for the sale of approximately 19.7 acres of land owned by the Agency northwesterly of the intersection of Diaz Road and Dendy Parkway, APN 909-370-002, in the City of Temecula (the Property"). The sale price will be $6,700,000 with a $900,000 hold back for certain designated soils work. R:/Resos 2009/Resos 09-83 D. The proposed Agreement is intended to effectuate the Redevelopment Plan, by selling the Property to the Buyer for development of uses allowed by the City's General Plan, Development Code and the Redevelopment Plan. Proceeds from the sale of the Property will be placed into the Agency's Low and Moderate Income Housing Funds (sometimes referred to as the "Housing Set-Aside Fund") for future development of affordable housing in the Project Area and the Community. E. Despite significant efforts, the Agency has been unable to develop an affordable housing project on the Property and, due to physical and market conditions, does not expect to be able to do so for at least five years. Therefore, pursuant to the provisions of Health and Safety Code Section 33334.16, the Agency will sell the Property at fair market value and deposit the proceeds of the sale, less costs of the sale, into the Agency's Low and Moderate Income Housing Fund for increasing, improving and preserving the supply of low and moderate income housing in other areas of the Project Area and City where physical and market conditions will support affordable housing projects. As such, the Agreement will also assist the Agency and the City in complying with their obligation to provide low and moderate income housing pursuant to the Health and Safety Code of California and the goals of the City's Housing Element to the Temecula General Plan. ' F. Pursuant to the provisions of Health & Safety Code Section 33433, on September 22, 2009 the Board of Directors of the Redevelopment Agency of the City of Temecula and the City Council of the City of Temecula held a duly noticed joint public hearing concerning the approval of the proposed Agreement at which time the Council and Agency considered the report prepared pursuant to Section 33433 and the written and oral comments from the public. G. Pursuant to the provisions of Health & Safety Code Section 33433(b)(1) the purchase price for the sale of the Property to the Buyer is not less than the fair market value of the Property at its highest and best use in accordance with the Redevelopment Plan. H. The Agreement is consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area. The Agreement is consistent with the City's General Plan. J. The City Council has duly considered all terms and conditions of the proposed Agreement and believes that the Agreement is in the best interests of the Agency and City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. R:/Resos 2009/Resos 09-83 2 ' K. The Agreement pertains to and affects the ability of all parties to finance and carry out their statutory purposes and to accomplish the goals of the Redevelopment Plan and is intended to be a contract within the meaning of Government Code Section 53511. Section 2. The Council finds, determines and declares that no environmental review of the Agreement is required because the Agreement is not a "project" within the meaning of the California Environmental Quality Act ("CEQA") and specifically Section 15378 of the State CEQA Guidelines. A. The Agreement does not approve or commit the Agency to any specific project that will affect the environment. The Buyer would be allowed to develop any project that would comply with the applicable land use requirements for the Property set forth in the General Plan, zoning ordinance and the Redevelopment Plan. B. Approval of the Agreement creates funding for the Agency's Agency's Low and Moderate Income Housing Fund but without any commitment to particular projects within the City of Temecula. C. Even if one assumes the Agreement is a project, the Agreement would be exempt from CEQA under Section 15312 of the CEQA Guidelines ' because it is a sale of surplus government land that is not located in an area of statewide, regional or areawide concern as the as does not commit the Property to any particular development. D. Any specific projects proposed by the Buyer of the Property would require the Buyer to comply with the requirements of CEQA as part of the land use entitlement process for any such project. Any project receiving assistance from the Agency with funds from the Agency's Low and Moderate Income Housing Fund would be required to comply with the provisions of CEQA. Section 3. The City Council hereby terminates that certain agreement entitled "Development Agreement dated July 12, 2005 By and Between The City of Temecula, City, and AGK Group, LLC, Owner." AGK Group did not perfect its purchase of the Property pursuant to that certain "Disposition and Development Agreement" between AGK Group and the Agency, dated as of March 16, 2004, as amended AGK Group has no interests in the Property. The City Manager is hereby authorized to executed on behalf of the City any notices or documents necessary and convenient to effectuate this termination and to clear title. Section 4. The City Council hereby approves the proposed Purchase and Sale Agreement between the Agency and Temecula Water Park, LP, a California limited partnership and consents to the Agency entering into said Agreement. I Section 5. The City Clerk shall certify the adoption of this Resolution. R:/Resos 2009/Resos 09-83 3 ' PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 22nd day of September, 2009. Maryann Edwards, Mayor ATTEST: Susan ones, MMC City CI rk [SEAL] R:/Resos 2009/Resos 09-83 ' STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 09-83 was duly and regular adopted by the City Council of the City of Temecula at a meeting thereof held on the 22" day of September, 2009, by the following vote: AYES: 5 COUNCIL MEMBERS: Comerchero, Naggar, Roberts, Washington, Edwards NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None City Clerk R:/Resos 2009/Resos 09-83 5