City of Culver City, California
Agenda Item Report
Meeting Date: 06/09/2014 Item Number: PH-1
SUCCESSOR AGENCY AGENDA ITEM: PUBLIC HEARING - Adoption of a
Resolution Approving, and Recommending that the Oversight Board Approve, (1)
the Sale and Transfer of Real Property Located at 12803, 12811, 12813 and 12823
Washington Boulevard, Culver City, from the Successor Agency to Axis-Mundi RE
II, LLC for Use to Fulfill Contractual Enforceable Obligations in Accordance with
the Terms of the DDA Between the Former Culver City Redevelopment Agency and
the Developer, Pursuant to the State Department of Finance Approved Long Range
Property Management Plan; and (2) the Successor Agency’s Use of the Net
Purchase Price Proceeds Received by the Successor Agency after Close of Escrow
in Accordance with the Dissolution Act and Other Applicable Law; and (3) Related
Actions.
Contact Person/Dept.: Glenn Heald
Todd Tipton / CDD
Phone Number: 310-253-5752
310-253-5783
Fiscal Impact: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: [X]
Public Notification: (E-Mail) Meetings and Agendas – Successor Agency (06/04/14);
Public Notice Posted (05/27/14) and Published (05/29/14) in the Culver City News.
Departmental Approval:
Sol Blumenfeld (06/04/14)
Successor Agency General Counsel Approval;
Carol Schwab (by H. Baker) (06/04/14)
Successor Agency Special Counsel Approval:
Murray Kane: (06/04/14)
Chief Financial Officer Approval:
Jeff Muir (06/04/14)
Executive Director Approval:
John M. Nachbar (06/04/14)
RECOMMENDATION:
Staff recommends the Board of the Successor Agency to the Culver City
Redevelopment Agency (Successor Agency Board) adopt a proposed resolution
approving, and recommending to the Oversight Board to the Culver City Successor
Agency (Oversight Board) the approval of: (1) the sale and transfer of real property
located at 12803, 12811, 12813 and 12823 Washington Boulevard, Culver City (the
Property), from the Successor Agency to the Culver City Redevelopment Agency
(Successor Agency) to Axis-Mundi RE II, LLC (Developer) for use to fulfill
contractual enforceable obligations in accordance with the terms of the Disposition
and Development Agreement (DDA) between the former Culver City Redevelopment
Agency (Former CCRA) and the Developer dated February 7, 2008, pursuant to the
authority of the Long Range Property Management Plan (LRPMP) approved by the
California Department of Finance (DOF) on March 18, 2014; and (2) the Successor
Agency’s use of the net purchase price proceeds received by the Successor Agency
after close of escrow in accordance with the Dissolution Act and other applicable
law; and (3) related actions.
City of Culver City, California
Agenda Item Report
PROCEDURE (Noticed Public Hearing):
1. The Chair seeks a motion from the Successor Agency Board to receive and file
the affidavits of publication and posting of notices and correspondence received
in response to the public hearing notices; and,
2. The Chair calls for a staff report and the Board Members may pose questions to
staff as desired; and,
3. The Chair seeks a motion to open the public hearing; and,
4. The Chair seeks motion to close the public hearing after all public testimony has
been presented; and,
5. The Successor Agency Board discusses the item and arrives at its decision.
BACKGROUND:
On June 28, 2011, the Governor of California signed into law Assembly Bill No. X1
26 (2011-2012 1st Ex. Sess.) (referred to herein as the Dissolution Act), making
certain changes to the California Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the California Health and Safety
Code) (the Redevelopment Law) and to the California Health and Safety Code (H&S
Code) including adding Part 1.8 (commencing with Section 34161) (Part 1.8) and
Part 1.85 (commencing with Section 34170) (Part 1.85) to Division 24 of the H&S
Code. The Property, owned by the Former CCRA and now the Successor Agency
pursuant to the Dissolution Act, is proposed to be sold by the Successor Agency to
the Developer for use to fulfill contractual enforceable obligations in accordance with
the terms of the DDA, pursuant to the authority of the LRPMP approved by the DOF
on March 18, 2014, and in accordance with H&S Code Section 34181.
DISCUSSION:
The Property consists of four contiguous parcels, APNs 4236-021-900, 4236-021-
901, 4236-021-902, and 4236-021-903, that combined form a 24,082 square foot
(0.55 acres) site spanning the north side of Washington Boulevard bounded by
Meier Street to the east and Moore Street to the west. The Property is included in
the Successor Agency’s LRPMP submitted to the DOF in July 2013, revised and
resubmitted to the DOF in March 2014, and approved by the DOF on March 18,
2014, as “Property to be Used to Fulfill Enforceable Obligations,” reflecting the
Property’s intended sale from the Successor Agency to the Developer for the
development of a project (Project) on and at the Property in accordance with the
terms of the DDA.
City of Culver City, California
Agenda Item Report
If the Successor Agency Board adopts the proposed resolution (Attachment No. 1),
a separate resolution approving and directing the sale and transfer of the Property
from the Successor Agency to the Developer for use to fulfill contractual enforceable
obligations in accordance with the terms of the DDA pursuant to the authority of the
LRPMP approved by the DOF on March 18, 2014, will be submitted to the Oversight
Board for consideration at their next regular meeting to be held on June 12, 2014. If
the Oversight Board adopts the proposed resolution, the Oversight Board resolution
will be submitted to the DOF for review and approval.
FISCAL ANALYSIS:
The sale of the Property will generate land sale purchase price proceeds of
approximately $3.2 million, equal to or exceeding the appraised fair market value of
the Property. The net purchase price proceeds received by the Successor Agency
after close of escrow will be used by the Successor Agency in accordance with the
Dissolution Act and other applicable law. The Successor Agency may seek
reimbursement of the incidental costs associated with the proposed sale of the
Property through the escrow process or future Recognized Obligations Payment
Schedule (ROPS) submissions to the DOF.
ENVIRONMENTAL REVIEW:
As part of the proposed resolution, the Successor Agency is requested to determine
that a Final Supplemental Environmental Impact Report (“FSEIR”) was certified by
the City on November 16, 1998, which identified and analyzed the potential
environmental impacts associated with the Project. This activity has been
determined to be adequately addressed in the FSEIR for the Project, and there is no
substantial change in circumstances, new information of substantial importance, or
project changes which would warrant additional environmental review; therefore, no
further environmental review is required under the CEQA pursuant to State CEQA
Guidelines Sections 15162 and 21166.
ATTACHMENTS:
1. Proposed Resolution.
MOTIONS:
That the Successor Agency Board:
City of Culver City, California
Agenda Item Report
Adopt a resolution approving, and recommending to its Oversight Board the
approval of, (1) the sale and transfer of real property located at 12803, 12811,
12813 and 12823 Washington Boulevard, Culver City, California (Assessor
Parcel Nos. 4236-021-900, 4236-021-901, 4236-021-902, and 4236-021-903)
from the Successor Agency to Axis-Mundi RE II, LLC for use to fulfill
contractual enforceable obligations in accordance with the terms of the
Disposition and Development Agreement between the former Culver City
Redevelopment Agency and the Developer dated February 7, 2008, pursuant
to the authority of the Long Range Property Management Plan approved by the
California Department of Finance on March 18, 2014; and (2) the Successor
Agency’s use of the net purchase price proceeds received by the Successor
Agency after close of escrow in accordance with the Dissolution Act and other
applicable law; and (3) related actions.
MEETING DATE: 06/09/2014
AGENDA ITEM: SUCCESSOR AGENCY AGENDA ITEM: PUBLIC
HEARING - Adoption of a Resolution Approving and
Recommending that the Oversight Board Approves (1)
the Sale and Transfer of Real Property at 12803-12823
Washington Blvd to Axis-Mundi LLC (Developer) in
Accordance With the Terms of the DDA Between the
Developer and the City of Culver City Pursuant to the
Approved Long Range Property Management Plan; and
(2) Approving the Successor Agency’s Remittance of the
Net Purchase Price Proceeds Received by the Successor
Agency After Close of Escrow to the County for
Distribution to Taxing Entities; and (3) Approving Related
Actions.
ATTACHMENTS
Pages
1. Proposed Resolution. 1-8
Attachment No. 1
1Attachment No. 1
2Attachment No. 1
3Attachment No. 1
4Attachment No. 1
5Attachment No. 1
6Attachment No. 1
7Attachment No. 1|1013|