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LONG RANGE PROPERTY MANAGEMENT PLAN
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RECOMMENDATION
It is recommended that the Oversight Board to the Successor Agency (“Oversight Board”) adopt a resolution approving the Long Range Property Management Plan (LRPMP).
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Summary
On February 1, 2012, Assembly Bill x1 26 (AB26) dissolved redevelopment agencies and replaced them with successor agencies. At this time, redevelopment agency properties transferred to newly formed successor agencies.
Assembly Bill 1484 (AB1484), enacted in June 2012, amended AB26 and added responsibilities, deadlines, and penalties to the successor agencies and sponsoring cities including prohibiting agencies from taking actions, other than paying enforceable obligations, until an oversight board was established. The Oversight Board was established and began meeting in April 2012.
One of the key components of AB1484 is the requirement that successor agencies holding property from former redevelopment agencies develop a LRPMP that governs the disposition and use of the former non-housing redevelopment agency properties. The LRPMP must be filed with the Department of Finance (DOF), with Oversight Board approval, within six months of receiving a finding of completion. A finding of completion was issued to the Successor Agency on October 30, 2014.
The disposition and use of the properties are based on approved planning documents outlining the goals and objectives of the former redevelopment agency. Net sales revenue from any disposition will be first used to pay enforceable obligations with any remaining funds being remitted to the county auditor-controller for distribution to the taxing entities.
Upon Oversight Board approval, the LRPMP will be submitted to DOF for approval so that former redevelopment agency properties may be properly transferred and disposed of by the Successor Agency in accordance with AB1484.
The LRPMP for the Successor Agency (Attachment A - Long Range Property Management Plan) details the disposition and use of fifty (50) parcels divided amongst thirteen (13) sites that are owned and controlled by the Successor Agency. The properties are grouped into property sites with specific site identification numbers shown in the LRPMP. Three (3) sites on which twenty-nine (29) parcels are located, are proposed to be transferred to the City as government use to continue serving the community. Four (4) sites on which ten (10) parcels are located, are proposed to be held for future development purposes, as allowed by law, to allow the Successor Agency to complete projects planned prior to redevelopment dissolution. Finally, six (6) sites on which eleven (11) parcels are located, are designated for sale within specified parameters pursuant to current legal requirements. The properties are further described in Attachment A.
Actions approved by the Oversight Board will be submitted to the DOF, for review and approval as required under Assembly Bill x1 26 (AB26) and AB1484.
DISCUSSION
AB26 dissolved redevelopment agencies and replaced them with successor agencies effective February 1, 2012. On this date, by matter of law, properties owned by the former redevelopment agencies transferred to their successor agencies. AB26 was later amended by AB1484 which added responsibilities, deadlines, and penalties to the Successor Agency and sponsoring City. After AB26 was signed into law, agencies were prohibited from taking actions, other than paying enforceable obligations, until an oversight board was established. The Oversight Board was established and began meeting in April 2012.
The Stockton City Council adopted a Resolution allowing the City to serve as the successor agency to the former Redevelopment Agency of the City of Stockton upon dissolution of the Redevelopment Agency (Attachment B - Council Resolution No. 11-0251). On February 1, 2012, pursuant to Health and Safety Code section 34175(b), all assets and properties of the Redevelopment Agency were transferred to the Successor Agency.
Pursuant to Health and Safety Code section 34191.5, each successor agency that holds property from a former redevelopment agency is required to submit a LRPMP to the State Department of Finance (DOF) within six months after receiving a finding of completion from DOF. AB1484 provided for a finding of completion to be issued to successor agencies that met certain payment obligations. The Successor Agency did not have any of these payment obligations and; therefore, qualified for a finding of completion which was issued by DOF to the Successor Agency on October 30, 2014. Prior to submittal of the LRPMP to DOF, the successor agency’s oversight board must also approve the LRPMP.
The legal requirements mandated by AB1484 require that the LRPMP include the following components:
1. Inventory of all properties in the Community Redevelopment Property Trust Fund (Trust Fund), established to serve as the repository of the former redevelopment agency’s real properties. This inventory shall consist of all of the following information:
a. Date of acquisition of the property and the value of the property at the time, and an estimate of the current value of the property.
b. Purpose for which the property was acquired
c. Parcel date, including address, lot size, and current zoning in the former redevelopment agency redevelopment plan or specific, community, or general plan.
d. Estimate of the current value of the parcel including, if available, any appraisal information
e. 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.
f. History of environmental contamination, including designation as a brownfield site, and related environmental studies, and history of any remediation efforts.
g. Description of the property’s potential for transit-oriented development and the advancement of the planning objectives of the successor agency.
h. Brief history of previous development proposals and activity, including the rental or lease of property.
2. Address the use or disposition of all the properties in the Trust Fund. Permissible uses include:
a. Retention for governmental use pursuant to subdivision (a) of Section 34181;
b. Retention for future development;
c. Sale of the property; or
d. Use of property to fulfill an enforceable obligation.
3. Separately identify and list properties in the Trust Fund 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 the following shall apply:
a. 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.
b. 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 subsection 3(a) above, the proceeds from the sale shall be distributed as property tax to the taxing entities.
c. Property shall not be transferred to a successor agency, city, county, or city and county unless the LRPMP has been approved by the oversight board and DOF.
The finding of completion was issued by DOF to the Successor Agency on October 30, 2014. The LRPMP must be approved by the Oversight Board and filed with DOF within six months of this date. The LRPMP has been prepared in accordance with the legal requirements referenced above and details the disposition and use of fifty (50) parcels divided amongst thirteen (13) sites that are owned and controlled by the Successor Agency. The parcels are grouped into property sites with specific site identification numbers shown in the LRPMP.
One goal of previously approved redevelopment plans was the creation of additional government offices in downtown. Existing state and county offices in the immediate area, such as the Department of Motor Vehicles and San Joaquin WorkNet offices, are evidence of the realization of that goal. Commercial, Downtown (CD) zoning designations which identify governmental facilities as an appropriate use are also established in the area. The following site representing twenty nine (22) parcels is proposed to be transferred to the City for governmental use to continue serving the community:
Site No. 1 - Van Buren, Washington, Market, Madison & Monroe Street
The City is also proposing that the Children’s Museum and Bob Hope Theater (Site Nos. 2 and 3) be transferred to the City for governmental use since they are both subsidized by the City and provide educational and recreational opportunities to the community. These two (2) sites represent seven (7) parcels.
Another goal and objective identified in previously approved redevelopment plans was the promotion and creation of an attractive and vibrant Downtown and Waterfront area that would serve as a destination for greater Stockton and consist of a diverse set of employment, recreational, cultural, civic, retail, visitor, and residential uses. Although commencement of this vision has begun with the construction and completion of several projects, there remains a need for additional development in the Downtown and Waterfront area, especially since the City has a vested interest in ensuring it remains viable.
Additionally, the Airport Corridor was also included in these plans and was intended to benefit from City-wide and local revitalization, since it serves as the gateway to a successful industrial area as well as the Stockton Metropolitan Airport. Some improvements were made as a part of these revitalization efforts, including a streetscape beautification project focused on improving the aesthetics and pedestrian-friendliness of the area. Also completed was the realignment of Airport Way and Second Street with traffic signals, intersection improvements, and the extension of Second Street between Airport Way and Union Street. To continue revitalization efforts in this area, the future development of Airport Way is vital and City involvement is necessary to continue these efforts which include the provision of additional services and amenities to South Stockton residents.
By retaining the following sites for future development purposes, the City will be able to ensure that future projects are developed that meet the City’s Downtown and Economic Development objectives, while meeting the goals in previously approved redevelopment plans. In addition, by retaining the property, the City can identify a developer with the necessary experience and expertise to complete a development project in a realistic timeframe while avoiding buyers interested in more speculative real estate investments.
To meet the above objectives, four (4) sites representing ten (10) parcels are proposed to be held for future development purposes, as allowed by law, to allow the Successor Agency to complete projects planned prior to redevelopment dissolution.
Site No. 4 - 833 W. Weber Avenue
Site No. 5 - Lincoln Street & Weber Avenue
Site No. 6 - Airport Way & Second Street
Site No. 7 - Airport Way & Eighth Street
Finally, six (6) sites representing eleven (11) parcels are designated for sale within specified parameters pursuant to current legal requirements. The properties are further described in Attachment A.
Site No. 8 - Airport Way & Folsom Street
Site No. 9 - 2110 S. Airport Way - Purchase Option
Site No. 10 - Airport Way & Ninth Street
Site No. 11 - Lincoln Street & Horton Avenue
Site No. 12 - Henery Apartments (119 S. Sutter Street)
Site No. 13 - Waterfront Office Tower Parking Lot
Actions approved by the Oversight Board will be submitted to the DOF for review and authorization as required under AB26 and AB1484.
FINANCIAL SUMMARY
The cost to prepare the LRPMP is an administrative activity of the Successor Agency, which is included in the adopted FY 2014-15 Successor Agency administrative budget. If deemed necessary by the Successor Agency, real estate advisory and brokerage services may be solicited in which event brokerage services may be paid through broker commissions upon sale of property. Proceeds from the sale of any properties will be transmitted to the County Auditor Controller for disbursement to taxing entities.
Attachment A - Long Range Property Management Plan
Attachment B - Council Resolution No. 11-0251