Title
Update on the Long Range Property Management Plan (LRPMP). (Community Development 70272)
Body
To: Honorable Chair and Members of the Successor Agency to the Community Improvement Commission
Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Update on the Long Range Property Management Plan
BACKGROUND
On February 1, 2012, all redevelopment agencies in the State of California were dissolved pursuant to AB X1 26. Successor agencies were created to wind down former agency operations, oversee the dissolution process, and meet regular reporting requirements. Additional legislation, AB 1484, went into effect on June 27, 2012, and made technical and substantive changes to AB X1 26.
AB 1484 requires that successor agencies, within six months of receiving a Finding of Completion from the State Department of Finance (DOF), prepare and submit for approval to the Oversight Board and DOF, a Long Range Property Management Plan (LRPMP) that addresses the disposition and use of real property owned by the former redevelopment agency. The Successor Agency received its Finding of Completion on May 24, 2013.
On October 15, 2013, the Successor Agency to the Community Improvement Commission of the City of Alameda (Successor Agency) recommended that the Oversight Board approve the LRPMP. The Oversight Board approved the Plan on November 5, 2013, and submitted the Plan to DOF.
This staff report provides an update on the LRPMP. No action is required.
DISCUSSION
The LRPMP identified two properties, Alameda Landing and a .8-acre remnant parcel adjacent to the College of Alameda and 5th Street, south of Stargell Avenue, for disposition and future use. The LRPMP identified Alameda Landing as a property to be retained to fulfill an enforceable obligation pursuant to a third party agreement and proposed the sale of the remnant parcel with proceeds from the sale disbursed to the taxing entities.
DOF initiated its review of the LRPMP in 2014. DOF staff requested that the Successor Agency address the disposition of the downtown parking garage and the Alameda Theatre in the LRPMP. These properties were not included in the LRPMP because, while the properties were developed by the former Community Improvement Commission (CIC), the properties were conveyed to the City of Alameda in March 2011. However, DOF felt strongly that the properties should be included in the LRPMP and worked with staff to address this issue. Staff proposed a disposition strategy, provided for in the dissolution legislation, which allows the property to be retained by the city for future redevelopment purposes. DOF approved that approach and requested that staff prepare an amended LRPMP for Oversight Board approval. The amended LRPMP (Exhibit 1) was approved by the Oversight Board at its February 24, 2015 meeting. On March 6, 2015, DOF approved the amended LRPMP (Exhibit 2).
With an approved LRPMP, the Successor Agency has met a key requirement of the dissolution legislation. An approved LRPMP assures the binding disposition and use of property owned by the former redevelopment agency. Therefore, the Successor Agency can move forward with retention of Alameda Landing for disposition pursuant to the Disposition and Development Agreement with Catellus Alameda Development LLC, and sale of the .8-acre remnant parcel with proceeds disbursed to the taxing entities. The City can also retain ownership of the parking garage and Alameda Theatre.
The 15-16A Recognized Obligation Payment Schedule (ROPS) (July 1, 2015 - December 31, 2015) contains funds for appraising, marketing and selling the remnant parcel. In addition, pursuant to the approved LRPMP, City staff will be preparing compensation agreements with the taxing entities that provide, that in the event the City ever sells the parking garage and Alameda Theatre, proceeds from the sale would be disbursed to the taxing entities on the same pro rata basis that they receive property tax (i.e., as a taxing entity, the City receives 32% of the property tax and would therefore receive 32% of the sales proceeds if the parking garage and Alameda Theatre were ever sold).
FINANCIAL IMPACT
There is a positive impact to the General Fund as a result of an approved LRPMP. As a taxing entity, the City will receive its pro rata share of the sales proceeds of the remnant parcel. In addition, if the parking garage and Alameda Theatre were ever sold by the City, it would also receive a pro rata share of those proceeds.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The approved LRPMP was prepared in accordance with the dissolution legislation, AB X1 26 and AB 1484.
ENVIRONMENTAL REVIEW
A recommendation that the Oversight Board approve the LRPMP is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines, Section 15061(b)(3) (lead agency determines with certainty that there is no possibility that the activity may have a significant environmental effect).
RECOMMENDATION
This report is for information only. No action is required.
Debbie Potter
Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Amended Long Range Property Management Plan
2. Letter from DOF