06/26/2018 - SPCITY OF GRAND TERRACE
CITY COUNCIL AS THE SUCCESSOR AGENCY
TO THE COMMUNITY REDEVELOPMENT AGENCY
AGENDA ● JUNE 26, 2018
Council Chambers Special Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road
City of Grand Terrace Page 1
The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require
special assistance to participate in this meeting, please call the City Clerk’s office at (909) 824-6621 at
least 48 hours prior to the meeting.
If you desire to address the City Council during the meeting, please complete a Request to Speak Form
available at the entrance and present it to the City Clerk. Speakers will be called upon by the Mayor at
the appropriate time.
Any documents provided to a majority of the City Council regarding any item on this agenda will be made
available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during
normal business hours. In addition, such documents will be posted on the City’s website at
www.grandterrace-ca.gov.
CALL TO ORDER
Convene City Council as the Successor Agency to the Community Redevelopment
Agency
Roll Call
Attendee Name Present Absent Late Arrived
Mayor Darcy McNaboe
Mayor Pro Tem Sylvia Robles
Council Member Doug Wilson
Council Member Bill Hussey
Council Member Kenneth J. Henderson
NEW BUSINESS
1. Find that the Proposed Sale is Exempt from Review Under the California Environmental
Quality Act (CEQA) Pursuant to Section 15061 (B)(3) of the CEQA Guidelines and
Approve the Sale of Successor Agency Property Located on the North Side of Barton
Road and East of Vivienda Avenue Identified as Assessor Parcel Numbers 0275-242-
10 & 0275-242-11.
Agenda Grand Terrace City Council as Successor Agency June 26, 2018
City of Grand Terrace Page 2
RECOMMENDATION:
1. Find that the Action to Approve the Proposed Sale of Successor Agency Property
is Exempt from Review Pursuant to the California Environmental Quality Act
(CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of
Regulations; and
2. Approve the Sale of Successor Agency Property Identified as Property 1 in the
Adopted Long-Range Property Management Plan, Subject to the Terms
Specified Below:
a. The sale price of the property shall be the higher of $400,000 or the
prepared Broker’s Price Opinion;
b. Escrow shall close 90 days from the date of opening, unless extended by
the Executive Director;
c. The sale is subject to the Planning Commission determining the sale of
the Property and is consistent with the City’s General Plan; and
3. Authorize the Executive Director to Execute a Purchase and Sale Agreement
Consistent with the Terms outlined above, and such additional Terms as may be
required.
DEPARTMENT: PLANNING & DEVELOPMENT SERVICES
ADJOURN
The Next Regular City Council Meeting will be held on Tuesday, July 10, 2018 at 6:00
p.m. Agenda item requests must be submitted in writing to the City Clerk’s office no
later than 14 calendar days preceding the meeting.
AGENDA REPORT
MEETING DATE: June 26, 2018 Successor Agency Item
TITLE: Find that the Proposed Sale is Exempt from Review Under
the California Environmental Quality Act (CEQA) Pursuant to
Section 15061 (B)(3) of the CEQA Guidelines and Approve
the Sale of Successor Agency Property Located on the
North Side of Barton Road and East of Vivienda Avenue
Identified as Assessor Parcel Numbers 0275-242-10 & 0275-
242-11.
PRESENTED BY: Sandra Molina, Planning & Development Services Director
RECOMMENDATION: 1. Find that the Action to Approve the Proposed Sale of
Successor Agency Property is Exempt From Review
Pursuant to the California Environmental Quality Act (CEQA)
pursuant to Section 15061(b)(3) of Title 14 of the California
Code of Regulations; and
2. Approve the Sale of Successor Agency Property
Identified as Property 1 in the Adopted Long-Range Property
Management Plan, Subject to the Terms Specified Below:
a. The sale price of the property shall be the higher of
$400,000 or the prepared Broker’s Price Opinion;
b. Escrow shall close 90 days from the date of opening,
unless extended by the Executive Director;
c. The sale is subject to the Planning Commission
determining the sale of the Property and is consistent with
the City’s General Plan; and
3. Authorize the Executive Director to Execute a Purchase
and Sale Agreement Consistent with the Terms outlined
above, and such additional Terms as may be required.
2030 VISION STATEMENT:
This staff report supports Goal #3: Promote Economic Development: Develop Proactive
Economic Development Plan to Attract New Businesses and Retain Existing
Businesses.
BACKGROUND:
The subject property is made up of two separate parcels totaling approximately 38,000
square feet. The property is identified in the adopted Long-Range Property
Management Plan (PMP) as Property 1. The PMP, as approved by the Department of
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Finance, lists Property 1 for liquidation.
The proposed buyer is D&MJFH 1, LLC, represented by Douglas Jacobsen. Mr.
Jacobsen also represents the property at the northeast corner of Barton Road and
Vivienda Avenue. Attachment 1 is a Letter of Intent (Agreement) to purchase Property
1.
DISCUSSION:
The Agency Executive Director received the attached Letter of Intent to purchase
Property 1 at a purchase price of $400,000. This is the best offer received. The PMP
prepared in 2013 and revised in 2014 estimated the value of Property 1 at $350,000.
Refer to Attachment 2 for the analysis of Property 1 from the PMP. Market values have
increased since 2014 and it is reasonable to expect the value of Property 1 to have
increased as well. To ensure that the Agency receives fair market value of the property,
one of the terms of the purchase and sale agreement will be that the Buyer will
purchase the property at the higher of $400,000 or the value set by a Broker’s Price
Opinion of Value.
As shown in the Letter of Intent, the Buyer desires to enter and close escrow quickly.
Escrow is proposed to close within 30 days of opening, but no later than 90 days.
However, the purchase is subject to a contingency (Section 8) that the Buyer executes
a purchase agreement and opens escrow on the property located at 22182 Barton Road
(owned by Dr. Luke); and a condition (Section 12) that Dr. Luke secures a buildable pad
on Property 1. The proposed Buyer and Dr. Luke would negotiate the logistics of the
new pad.
The agenda report that was contained in the regular packet contained error in
identifying the location of Property 1, and the Letter of Intent also contained a typo in an
APN and incorrectly identified the City as the property owner. It has also been revised to
show only one broker, Candyce Bozner. The items have been updated and revised in
this special meeting agenda report.
The properties sits between two dynamic corners in Grand Terrace. Over 28,000 cars
per day circulate through the intersection at Barton Road and Mount Vernon Avenue
and over 27,000 cars per day pass through the intersection at Barton Road and
Michigan Street. Assembling of the properties will allow for a cohesive design and
maximizes the opportunity to capture these vehicle trips.
It is recommended that the Successor Agency find that this action is exempt from the
California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title
14 the California Code of Regulations because the proposed purchase and sale
agreement will not create a significant impact on the environment but merely transfer
the property for development purposes. When the developer applies for entitlements
for the use of the property, the project will be reviewed pursuant to CEQA.
FISCAL IMPACT:
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Proceeds from the sale of the property must be distributed to the appropriate taxing
entities. The City’s General Fund will realize a positive financial impact of approximately
$80,000. This is because there are many taxing entities that receive a percentage of
the proceeds from the sale of former redevelopment agency property. The City’s
General Fund receives 19.97% of the sale proceeds after deduction of qualified
expenses. The largest disbursements are to the Colton Joint Unified School District
(26.53%), ERAF (19.26%) and County of San Bernardino General Fund (12.72%).
ATTACHMENTS:
• Updated 6.22.2018 LOI Barton Road - DCJ executed (PDF)
• Property 1_from LRPMP (PDF)
• SA Resolution_Revised 6.25.2018 (DOCX)
APPROVALS:
Sandra Molina Completed 06/25/2018 4:07 PM
Finance Completed 06/25/2018 4:19 PM
City Attorney Completed 06/25/2018 5:27 PM
City Manager Completed 06/25/2018 5:35 PM
City Council Pending 06/26/2018 6:00 PM
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Amended Long-Range Property Management Plan
City of Grand Terrace Successor Agency
November 13,2014
Page 8 0'21
Long-Range Property
Management Plan
Property #1: 22100 Block of Barton Road
-Parcel Data -Property #1
Address
APN
Lot Size
Use
Zoning
Current Title
22100 Block of Barton Road
0275-242-10 & 0275-242-11
0.88 acres (38,333 square feet)
Vacant land
BRSP -General Commercial
City of Grand Terrace Successor Agency
_
The analyses, projections. assumptions, rates of retum. and any examples presented herein are for Illustrative
purposes and are not a guarantee of actual and/or future results. Project pro forma and lax analyses are projections .A.: only. Actual results may differ matenally from those expressed in this analysis.
kosm2.1!.-885 South Figueroa Street. 35th Floor Los Angeles CalWornia 90017 ph 213 417 3300 fax 213 417 3311
RESOLUTION NO. 2014-06 PAGE 8 OF 21 DECEMBER 17, 2014
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Long-Range Property Management Plan
City of Grand Terrace Successor Agency
November 13,2014
Page 9 of21
'Acquisition & Valuation Information -Property #1
Purchase Date
Purchase Price
Funding Source
Purpose
1/272009 (APN #0275-242-11) &
8/1/2009 (APN #0275-242-10)
$399,231
Tax increment
Future commercial development in advancement of
RDA planning objectives
Estimate of Current Value
Method of Valuation
$350,000
Professional appraisal obtained by City dated August
23,2011
Revenues Generated by Property & Contractual Requirements -Property #1
No Revenues or
Contractual
Requirements
There are no revenues generated by this property, and there no
contractual requirements related to this property.
History of Environmental Contamination or Remediation Efforts -Property #1
Soil Removal
Required
Phase I Environmental Site Assessment and Limited Phase II
Environmental Site Screening dated March 182009, April 15,
2009 and September 11, 2009. No known history of
environmental contamination, designation as Brownfield site, or
remediation was identified.
During the aforementioned escrow, a subsequent Phase 1
Assessment was conducted by O'Reilly, which identified a 10
cubic yard soil pile, as a Recognized Environmental Concern
(REC). Additional soil sampling of the soil pile determined the
stockpile contains non-hazardous levels of diesel and motor oil
range hydrocarbons. As a condition to the close of escrow,
O'Reilly was requiring the Agency to remove the soil from the
property. To properly dispose of the soil pile to the appropriate
treatment storage disposal facility, additional analysis for VOC's
and metals is required.
The Agency has included the anticipated cost of soil removal on
the Recognized Obligation Payment Schedule ("ROPS").
R The analyses, projections, assumptions. rales of retum. and any examples presanlad harain ara for lDuslrative
purposas and ara not a guarantee of actual and/or future results. Project pro fomw and tax analyses ara projections &: only. Actual results may dHrer malarially from !hose axpressed In this analysis.
kosm2.Il-865 South Figueroa Slreet. 35th Floor LosAngales California 90017 ph 213.417 3300 fax 213 417 3311
RESOLUTION NO. 2014-06 PAGE 9 OF 21 DECEMBER 17,2014
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Potential for TOO
Agency Planning
Objectives
Not applicable
Long-Range Property Management Plan
City of Grand Terrace Successor Agency
November 13, 2014
Page 10 of21
Future development of retail commercial uses will advance
Agency objectives of elimination of blight and strengthening of
commercial uses and the economic base of the community
r~r_ief}i1sfory of Pr~vious Development Prop<?sals and Activities -Pro-perty #.1· -,
History
This property was in escrow for sale to O'Reilly Automotive
Stores, Inc. ("O'Reilly") in May; however, escrow was
terminated in AUQust of 2013 due to redevelopment dissolution.
i~~~~mmendatio,! for Disposition -Property #f --.
Liquidation
As the Purchase and Sale Agreement with O'Reilly is no longer
in place at this time, it is recommended that the property be
sold to a developer or eAd-user for development consistent
with Agency planning objectives for a sale price consistent with
estimate of current value. Revenue generated from the sale of
this property is proposed to be distributed to local taxing
agencies pursuant to AS 1484.
_
The analyses, projections, assumptions. rates of return , and any examples presented herain ara for Illustrative
purposes and are not a guarantee of actual and/or futura results. Project pro forma and tax analyses ara projections &: only, Actual rasults may differ materially from those expressed in this analysis.
kOSID2,.n 885 South Figueroa Street, 35th Floor LosAnoeles Cahfornia 90017 ph 213.417 3300 fax 213 417,3311
RESOLUTION NO. 2014-06 PAGE 100F21 DECEMBER 17,2014
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RESOLUTION NO. SA ____
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE GRAND
TERRACE COMMUNITY REDEVELOPMENT AGENCY MAKING A
CEQA EXEMPTION FINDING AND APPROVING THE SALE OF
REAL PROPERTY LOCATED ON THE NORTH SIDE OF
BARTON ROAD, EAST OF VIVIENDA AVENUE IDENTIFIED AS
ASSESSOR’S PARCEL NUMBERS 0275-242-10 AND 0275-242-
11, SUBJECT TO CERTAIN TERMS AS CONTAINED IN THIS
RESOLUTION
WHEREAS, the former Redevelopment Agency of the City of Grand Terrace
(Former RDA) administered the implementation of various redevelopment projects,
programs, and activities within designated redevelopment project areas throughout
the City of Grand Terrace (City); and
WHEREAS, in accordance with Assembly Bill x 1 26 (AB 26), the Former RDA
dissolved as of February 1, 2012, at which time the City of Grand Terrace, solely in
its capacity as the designated successor agency to the Former RDA (Successor
Agency), assumed the Former RDA's assets and obligations; and
WHEREAS, the Successor Agency is required to administer the winding down
of the Former RDA's operations and to ensure compliance with the Former RDA's
obligations in accordance with AB 26, as subsequently amended (collectively, the
Dissolution Laws); and
WHEREAS, the San Bernardino County Auditor (County Auditor), the State
Controller, and the State Department of Finance (DOF) also possess certain rights
and obligations under the Dissolution Laws with respect to the Successor Agency's
administration of winding down the Former RDA's operations; and
WHEREAS, in late 2014, the Successor Agency and the DOF approved the
Amended and Restated Long-Range Property Management Plan (LRPMP), which
governs the Successor Agency's disposition of its non-housing real property assets,
in accordance with California Health and Safety Code (Code) section 34191.S(c);
and
WHEREAS, among other things, the LRPMP requires the Successor Agency
to liquidate several real property assets (Liquidation Sites), which will result in the
local taxing entities, such as the City, the County of San Bernardino, local school
districts, and local special districts, receiving a pro rata distribution of the net sale
proceeds in the same proportion as their share of general property tax revenues; and
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WHEREAS, the Successor Agency's sale of Liquidation Sites is subject to the
LRPMP and the Dissolution Laws; and
WHEREAS, one of the Liquidation Sites currently owned by the Successor
Agency is that certain real property commonly referred to as Property 1 in the
LRPMP, generally located on the north side of Barton Road, east of Vivienda Avenue,
Grand Terrace, California (Property 1); and
WHEREAS, D&MJFH 1, LLC, has submitted to the Successor Agency a
signed Letter of Intent to purchase Property 1 for the purchase price of the higher of
$400,000 or the Broker’s Price Opinion; and
WHEREAS, D&MJFH 1, LLC and Successor Agency have negotiated a
proposed real property Purchase and Sale Agreement, which is included as
Exhibit 1 of this Resolution; and
WHEREAS, consistent Code section 34191.5(c)(2)(B), the Successor Agency
will cause the net purchase price proceeds to be distributed, pro rata, to the local
taxing entities; and
WHEREAS, the Successor Agency must approve the Agreement before it
becomes effective, and under Code section 34191.5(f), the Successor Agency's
decision will become effective immediately, without any need for review by the DOF.
NOW THEREFORE, BE IT RESOLVED THAT THE SUCCESSOR DOES RESOLVE,
DETERMINE, FIND AND ORDER AS FOLLOWS:
Section 1. The Successor Agency finds that all of the above recitals are true and correct
and are incorporated herein by reference.
Section 2. The Successor Agency finds that this action exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 the
California Code of Regulations because the proposed purchase and sale agreement
will not create a significant impact on the environment.
Section 3. The Successor Agency approves the Purchase and Sale Agreement, attached
hereto, between the Agency and D7MJFH 1, LLC subject to the following terms:
a. The sale price of the property shall be the higher of $400,000
or the prepared Broker’s Price Opinion of Value;
b. Escrow shall close 90 days from the date of opening, unless
extended by the Executive Director;
c. The sale is subject to the Planning Commission determining the
sale of the Property is consistent with the City’s General Plan; and
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d. Buyer shall reimburse the Agency for Agency Counsel Costs of
Preparing the Purchase and Sale Agreement
Section 3. The Successor Agency further directs and authorizes the Executive Director
to take all necessary and required actions to carry out this Resolution, including but not
limited to meeting the requirements of the relevant sections of the Health & Safety Code,
or any other applicable law. This includes, but is not limited to, submission of this
Resolution to the Department of Finance and any other relevant agencies pursuant to the
Health & Safety Code.
Section 4. The Successor Agency shall maintain on file as a public record this Resolution
as approved hereby.
PASSED, APPROVED AND ADOPTED by the Successor Agency for the Grand Terrace
Redevelopment Agency at a regular meeting held on the 26th day of June 2018.
_______________________________
Darcy McNaboe
Chair of the Successor Agency for the
Community Redevelopment Agency of
the City of Grand Terrace
ATTEST:
______________________________
Debra L. Thomas
Agency Secretary
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