City of Culver City, California
Agenda Item Report
Meeting Date: 03/10/2014 Item Number: JA-1
JOINT CITY COUNCIL - SUCCESSOR AGENCY AGENDA ITEM: (1) Approval of
Assignment of All Rights, Interests and Obligations Related to Certain Parking
Facilities from the Successor Agency to the Culver City Redevelopment Agency to
the City of Culver City; and, (2) Adoption by the Successor Agency of a Resolution
Approving Revisions to the Long Range Property Management Plan Submitted to
the State Department of Finance and Making a Finding that Assignment of
Successor Agency Obligations to the City is Consistent with the Intentions of State
Assembly Bill ABx1 26 as Amended by AB 1484.
Contact Person/Dept.: Glenn Heald
Todd Tipton/CDD
Phone Number: 310-253-5752
310-253-5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – Successor Agency (03/07/2014).
Department Approval:
Sol Blumenfeld (03/06/2014)
City Attorney/Successor Agency General
Counsel Approval:
Carol Schwab (by H. Baker) (03/06/14)
City/Successor Agency Special Counsel
Approval:
Murray Kane (03/06/2014)
Chief Financial Officer Approval:
Jeff Muir (03/06/14)
City Manager/Executive Director Approval:
RECOMMENDATION:
Pursuant to California Department of Finance (DOF) direction, Staff recommends:
The City Council:
Accept assignment from the Successor Agency to the Culver City
Redevelopment Agency (Successor Agency) to the City of Culver City (City) of all
of the Successor Agency's rights, title, interest, powers, privileges and other
incidences of ownership in and to all Disposition and Development Agreements
and Parking Agreements encumbering six of the ten parking facilities identified
herein.
AND
The Successor Agency:
(1) Assign to the City all of the Successor Agency's rights, title, interest, powers,
privileges and other incidences of ownership in and to all Disposition and City of Culver City, California
Agenda Item Report
Development Agreements and Parking Agreements encumbering six of the ten
parking facilities identified herein; and
(2) Adopt a Resolution approving the proposed Revised Long Range Property
Management Plan (LRPMP) for submittal to the DOF and making a finding that
assignment of the DDA(s) and Parking Agreement(s) for the properties to the
City is consistent with the intentions of State Assembly Bill ABx1 26 as amended
by AB 1484 (Dissolution Act).
BACKGROUND:
Pursuant to Health and Safety Code Section 34191.5, within six months after
receiving a Finding of Completion from the DOF, each successor agency is required
to submit for approval to its oversight board and the DOF a Long Range Property
Management Plan addressing the disposition and use of the real properties of the
former redevelopment agency
i
. The Successor Agency’s proposed LRPMP was
approved for submittal by the Successor Agency on June 10, 2013 and by the
Oversight Board on July 3, 2013, and submitted to the DOF on July 17, 2013.
The DOF has indicated to staff that they are prepared to approve the Culver City
LRPMP if ten (10) parking facilities listed as former Culver City Redevelopment
Agency assets are reclassified for disposition in categories the DOF feels more
closely reflect the criteria within the Dissolution Act (See endnote i2). Upon DOF
approval of the LRPMP and satisfaction of all conditions related thereto, the ten
parking facilities will be eligible for transfer from the Successor Agency to the City.
DISCUSSION:
The Culver City Long Range Property Management Plan is a complete listing and
narrative discussion of the proposed disposition of former Redevelopment Agency
assets. It includes all non-housing real property assets that have been redeveloped
or are proposed to be redeveloped, including remnant parcels and public parking
assets. The LRPMP lists ten parking facilities under the disposition category
“Properties to be Retained for Governmental Use” indicating the Successor
Agency’s intention to retain the parking facilities for future transfer to the City or the
Parking Authority to ensure they continue to be operated in a manner consistent with
the City’s existing obligations to local businesses and plans for future development
of the areas in proximity to the parking facilities.
The ten parking facilities recommended for reclassification are:
1. 3846 Cardiff Ave. (Cardiff Parking Structure).
2. 9099 Washington Blvd. (Ince Parking Structure). City of Culver City, California
Agenda Item Report
3. 3844-48, 3864 Watseka Ave. (Watseka Parking Structure).
4. 10401, 10555, 10601 Virginia Ave. (Virginia Parking Lot).
5. 9415-9425 Venice Blvd. (Venice Parking Lot).
6. 3713-3715 Robertson Blvd. (Robertson Parking Lot #1).
7. 3727 Robertson Blvd. (Robertson Parking Lot #2).
8. 3757 Robertson Blvd. (Robertson Parking Lot #3).
9. 12601 Washington Blvd. (Washington Parking Lot).
10. 3825 Canfield Ave. (Canfield Parking Lot).
The DOF believes that these parking facilities and their uses are inconsistent with
the definition of “Governmental Use” as defined in the Dissolution Act. However, if
certain of the parking facilities referenced herein are reclassified as “Properties to be
Retained to Fulfill Enforceable Obligations.” (Nos. 1, 2, 3, 5, 8 and 10) and the
remainder are reclassified as “Properties to be Retained for Future Development”
(Nos. 4, 6, 7 and 9), the DOF has indicated to staff the LRPMP will be conditionally
approved.
Such disposition will allow the Successor Agency to retain six downtown parking
assets for transfer to the City but may oblige the City to seek Compensation
Agreements (negotiated settlements) with each of the taxing entities for the other
parking assets outside of the downtown area prior to the transfer of those properties
from the Successor Agency to the City. Such Compensation Agreements would
reflect the amount of foregone property taxes related to each asset and such
agreements must be reached within one year of the expiration of the Redevelopment
Project Area (2025)
ii
.
A DDA between the Successor Agency, the City and Oliver McMillan and a parking
license agreement between the Successor Agency and Paul Kahn encumber the
above downtown parking facilities in perpetuity. Such agreements may be assigned
to other parties. In order to effectuate the proposed reclassifications, the Successor
Agency must assign and the Oversight Board must approve their reassignment to
the City, which would be bound by all provisions and must perform all of the
obligations of the DDA(s) and parking agreement(s). An agreement for such
assignment will include, in part, the following or similar language:
Assignor does hereby sell, assign, pledge, transfer and set over unto
Assignee, all of Assignor's rights, title, interest, powers, privileges and
other incidences of ownership in and to the Disposition and Development City of Culver City, California
Agenda Item Report
Agreement(s) and Parking Agreement(s) and Assignee does hereby
assume all of Assignor's right, title, interest, powers, privileges and other
incidences of ownership in and to the Disposition and Development
Agreement(s) and Parking Agreement(s). Assignee hereby agrees to be
bound by any and all provisions of the Disposition and Development
Agreement(s) and Parking Agreement(s) as if Assignee had been a direct
party to the Disposition and Development Agreement(s) and Parking
Agreement(s), and agrees to perform all of the obligations of Assignor
thereunder. Notwithstanding anything to the contrary set forth herein, this
assignment and assumption shall release Assignor of any obligations
under the Disposition and Development Agreement(s) and Parking
Agreement(s).
Additionally, the Successor Agency and the Oversight Board must make a finding
that assignment of the DDA(s) and Parking Agreement(s) for the parking facilities to
the City will further the intention of the Dissolution Act and is consistent with the
California Health and Safety Code Sections 34167(a) and 34169(d), which direct the
Successor Agency to preserve revenues and assets so they may be made available
to the taxing entities. The assignment of the DDA(s) and Parking Agreement(s) is
consistent with such direction because it transfers the responsibilities and costs of
maintaining the parking facilities to the City and relieves the Successor Agency of
those operating and maintenance costs, allowing that revenue to be passed to the
taxing entities. Language expressing the required finding is incorporated into the
draft resolution approving the revisions to the LRPMP and authorizing the
assignment of the DDA(s) and Parking Agreement(s) to the City.
If the Successor Agency approves the assignment of the DDA(s) and Parking
Agreement(s) and the resolution, and the City accepts the assignment, staff will
present this issue to the Oversight Board for their consideration and approval on
March 13, 2014, after which, if approved, the revised LRPMP and resolution will be
submitted to the DOF for their approval.
FISCAL ANALYSIS:
There is no direct cost to the City or Successor Agency resulting from the approval
of revisions to the LRPMP or the reassignment of the DDA(s) and Parking
Agreement(s).
ATTACHMENTS:
1. Proposed Successor Agency Resolution Approving Revised Long Range
Property Management Plan and Making Findings that the Assignment to the City
of the DDA(s) and Parking Agreement(s) for the Properties Furthers the
Intentions of the Dissolution Act.
2. Proposed Revised Long Range Property Management Plan in Excerpt. City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
Accept assignment of all of the Successor Agency's rights, title, interest, powers,
privileges and other incidences of ownership in and to all Disposition and
Development Agreement(s) and Parking Agreements encumbering the six
parking facilities proposed for reclassification as “Properties to be Retained to
Fulfill Enforceable Obligations” as identified herein, and authorize the City
Manager or designee to take all necessary, reasonable and appropriate actions
to implement the transfer of assets and obligations from the Successor Agency to
the City, and authorize the City Clerk to execute Certificates of Acceptance.
That the Successor Agency:
1. Assign, pledge, transfer and set over unto the City of Culver City, all of the
Successor Agency's rights, title, interest, powers, privileges and other incidences
of ownership in and to all Disposition and Development Agreement(s) and
Parking Agreement(s) encumbering the six parking facilities proposed for
reclassification as “Properties to be Retained to Fulfill Enforceable Obligations”
as identified herein, and authorize the Executive Director or designee to take all
necessary, reasonable and appropriate actions to implement the transfer of
assets and obligations from the Successor Agency to the City; and,
2. Adopt a Resolution approving the Revised Long Range Property Management
Plan for submission to the California Department of Finance and making a finding
that the assignment to the City of the DDA(s) and Parking Agreement(s)
encumbering the six parking facilities proposed for reclassification as “Properties
to be Retained to Fulfill Enforceable Obligations” is consistent with the intention
of the Dissolution Act and is consistent with the California Health and Safety
Code Sections 34167(a) and 34169(d).
i
The LRPMP shall do all of the following :
1. Include an inventory of all properties in the Community Redevelopment Property Trust Fund,
which was established to serve as the repository of the former redevelopment agency’s real
properties. The inventory shall consist of all of the following information:
• The date of the acquisition of the property and the value of the property at that time, and an
estimate of the current value of the property.
• The purpose for which the property was acquired.
• Parcel data, including address, lot size, and current zoning in the former agency
redevelopment plan or specific, community, or general plan. City of Culver City, California
Agenda Item Report
• An estimate of the current value of the parcel including, if available, any appraisal
information.
• An estimate of any lease, rental, or any other revenues generated by the property, and a
description of the contractual requirements for the disposition of those funds.
• The history of environmental contamination, including designation as a brownfield site, any
related environmental studies, and history of any remediation efforts.
• A description of the property's potential for transit-oriented development and the
advancement of the planning objectives of the successor agency.
• A brief history of previous development proposals and activity, including the rental or lease of
property.
2. Address the use or disposition of all of the properties in the Community Redevelopment Property
Trust Fund. Permissible uses include 1) the retention of the property for governmental use
pursuant to subdivision (a) of Section 34181, 2) the retention of the property for future
development, 3) the sale of the property, or 4) the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in the trust dedicated to
governmental use purposes and properties retained for purposes of fulfilling an enforceable
obligation. With respect to the use or disposition of all other properties, all of the following shall
apply:
• If the plan directs the use or liquidation of the property for a project identified in an approved
redevelopment plan, the property shall transfer to the city, county, or city and county.
• If the plan directs the liquidation of the property or the use of revenues generated from the
property, such as lease or parking revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in the bullet directly above, the proceeds from the sale shall
be distributed as property tax to the taxing entities.
• Property shall not be transferred to a successor agency, city, county, or city and county, unless the
long-range property management plan has been approved by the oversight board and the
Department of Finance.
ii
The Successor Agency may request that each taxing entity waive any claim to compensation in
recognition that the properties have no private market value. Alternately, the taxing entities may request
they be compensated in an amount equivalent to the portion of property tax they would receive if the
properties were assessed at market value and privately held. If the Successor Agency cannot reach
agreement with a taxing entity, the amount to be paid is to be determined by using the assessed value of
the property as of the 2011 date of the Dissolution Act. As the properties are currently government-
owned they do not have an assessed value on the current County Assessor tax rolls. The properties
have not been appraised. If appraisals are necessary to affect compensation agreements, the cost of
the appraisals may be included in future ROPS statements for reimbursement by the DOF through Real
Property Tax Trust Fund disbursements.