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2015/04/03 City Council Agenda Packet City of Rohnert Park ♦ 130 Avram Avenue ♦ Rohnert Park, California 94928 PHONE: (707) 588-2227♦ FAX: (707) 792-1876 ♦ WEB: www.rpcity.org ROHNERT PARK CITY COUNCIL Rohnert Park Financing Authority (RPFA) Successor Agency to the Community Development Commission (CDC) JOINT SPECIAL MEETING AGENDA Friday, April 3, 2015 Open Session: 4:00 p.m. MEETING LOCATION: CITY HALL - COUNCIL CHAMBER 130 Avram Avenue, Rohnert Park, California The Rohnert Park City Council welcomes your attendance, interest and participation at its regular city meetings scheduled on the second and fourth Tuesdays of each month at 5:00 p.m. in the Council Chamber. City Council/RPFA agendas and minutes may be viewed at the City’s website: www.rpcity.org. PUBLIC HEARINGS: Council/RPFA may discuss and/or take action on any or all of the items listed on this agenda. If you challenge decisions of the City Council or the Rohnert Park Financing Authority of the City of Rohnert Park in court, you may be limited to raising only those issues you or someone else raised at public hearing(s) described in this agenda, or in written correspondence delivered to the City of Rohnert Park at, or prior to the public hearing(s). RIGHT TO APPEAL: Judicial review of any city administrative decision pursuant to Code of Civil Procedure Section 1094.5 may be had only if a petition is filed with the court no later than the deadlines specified in Section 1094.6 of the California Code of Civil Procedure, which generally limits the time within which the decision may be challenged to the 90th day following the date that the decision becomes final. SIMULTANEOUS MEETING COMPENSATION DISCLOSURE (Government Code § 54952.3): Members of the City Council receive no additional compensation as a result of convening this joint meeting of the City Council and the Rohnert Park Financing Authority. PUBLIC COMMENTS: Provides an opportunity for public comment on items not listed on the agenda, or on agenda items if unable to comment at the scheduled time (limited to three minutes per appearance and a 30 minute total time limit, or allocation of time determined by Presiding Officer based on number of speaker cards submitted). PLEASE FILL OUT A SPEAKER CARD PRIOR TO SPEAKING ANNOUNCEMENT: Please turn off all pagers, cellular telephones and all other communication devices upon entering the Council Chamber. Use of these devices causes electrical interference with the sound recording and TV broadcast systems. Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” City of Rohnert Park Joint Special Meeting Agenda April 3, 2015 for City Council/RPFA/CDC Successor Agency Page 2 of 3 1. CITY COUNCIL/RPFA/SUCCESSOR AGENCY JOINT SPECIAL MEETING - CALL TO ORDER/ROLL CALL (Callinan __ Mackenzie__ Stafford __ Belforte __ Ahanotu __) 2. PLEDGE OF ALLEGIANCE 3. PUBLIC COMMENTS Persons wishing to address the Council on any Consent Calendar item or on City business not listed on the Agenda may do so at this time. Each speaker will be allotted three minutes. Those wishing to address the Council on any report item listed on the Agenda should submit a “Speaker Card” to the City Clerk before announcement of that agenda item. 4. CONSENT CALENDAR All items on the Consent Calendar will be considered together by one or more action(s) of the City Council and/or the Rohnert Park Financing Authority and Successor Agency to the Community Development Commission, whichever is applicable, unless any Council Member or anyone else interested in a consent calendar item has a question about the item. A. City Council Resolutions for Adoption: 1. 2015-059 Authorizing and Approving an Agreement of Purchase and Sale and Joint Escrow Instructions for 6750 Commerce Boulevard, 100 Avram Avenue and 120 Avram Avenue with North Bay Homes and Land, Inc. and Authorizing the Mayor to Execute the Agreement and take all Other Actions Necessary to Consummate the Transaction Contemplated by this Resolution Council Motion/Vote 5. PUBLIC COMMENTS Persons wishing to address the Council on Closed Session or City business not listed on the Agenda may do so at this time. Each speaker will be allotted three minutes. Those wishing to address the Council on any report item listed on the Agenda should submit a “Speaker Card” to the City Clerk before announcement of that agenda item. 6. CLOSED SESSION (Estimated Duration: 10 min) A. Recess to Closed Session in Conference Room 2A to Consider: 1. Conference with Real Property Negotiators (Government Code §54956.8) Property: 746 Brett Avenue (APN: 143-271-049) City Negotiator: Darrin Jenkins, City Manager Negotiating Parties: Jonny Sanchez, Chris Nunes, and Kathy Hamilton Under Negotiation: Price and Terms B. Reconvene Joint Regular Meeting Open Session in Council Chamber C. Report On Closed Session (Government Code § 54957.1) City of Rohnert Park Joint Special Meeting Agenda April 3, 2015 for City Council/RPFA/CDC Successor Agency Page 3 of 3 7. ADJOURNMENT CERTIFICATION OF POSTING OF AGENDA I, JoAnne Buergler, City Clerk for the City of Rohnert Park, declare that the foregoing agenda for the April 3, 2015, Joint Special Meeting of the Rohnert Park City Council/RPFA was posted and available for review on April 2, 2015, at Rohnert Park City Hall, 130 Avram Avenue, Rohnert Park, California 94928. The agenda is also available on the City web site at www.rpcity.org, Executed this 2nd day of April, 2015, at Rohnert Park, California. ___________________________________________ JoAnne M. Buergler, City Clerk NOTE: Time shown for any particular matter on the agenda is an estimate only. Matters may be considered earlier or later than the time indicated depending on the pace at which the meeting proceeds. If you wish to speak on an item under discussion by the Council which appears on this agenda, after receiving recognition from the Mayor, please walk to the rostrum and state your name and address for the record. Any item raised by a member of the public which is not on the agenda and may require Council action shall be automatically referred to staff for investigation and disposition which may include placing on a future agenda. If the item is deemed to be an emergency or the need to take action arose after posting of the agenda within the meaning of Government Code Section 54954.2(b), Council is entitled to discuss the matter to determine if it is an emergency item under said Government Code and may take action thereon. DISABLED ACCOMMODATION: If you have a disability which requires an interpreter or other person to assist you while attending this City Council meeting, please contact the City Clerk’s Office at (707) 588- 2227 at least 72 hours prior to the meeting to ensure arrangements for accommodation by the City. Please notify the City Clerk’s Office as soon as possible if you have a visual impairment requiring meeting materials to be produced in another format (Braille, audio-tape, etc.) AGENDA REPORTS & DOCUMENTS: Copies of all staff reports and documents subject to disclosure that relate to each item of business referred to on the agenda are available for public inspection at City Hall located at 130 Avram Avenue, during regular business hours, Monday through Friday from 8:00 am to 5:00 pm. Any writings or documents subject to disclosure that are provided to all, or a majority of all, of the members of the City Council regarding any item on this agenda after the agenda has been distributed will also be made available for inspection at City Hall during regular business hours. ITEM NO. 4 1 Meeting Date: April 3, 2015 Department: Administration Submitted By: Darrin Jenkins, City Manager Prepared By: Bryce Atkins, Senior Analyst Agenda Title: A Resolution of the City Council of the City of Rohnert Park Authorizing and Approving an Agreement of Purchase and Sale and Joint Escrow Instructions for 6750 Commerce Boulevard, 100 and 120 Avram Avenue. RECOMMENDED ACTION: Adopt a resolution of the City Council of the City of Rohnert Park authorizing and approving an Agreement of Purchase and Sale and Joint Escrow Instructions with North Bay Homes and Land, Inc. and authorizing the Mayor to execute the Agreement and take all other actions necessary to consummate the transaction contemplated by the resolution. BACKGROUND: Staff has been processing the preparation and sale of former redevelopment housing assets, including the properties of 6750 Commerce Avenue, 100 Avram Avenue, and 120 Avram Avenue (collectively, the “Property”). This has been an ongoing process, involving title clean-up activities, and formalization of the transfers from the Successor Agency to the City of housing assets in December of 2014. Assembly Bill X1 26, as subsequently amended by AB 1484 (collectively, the “Dissolution Act”) dissolved California’s redevelopment agencies formed under the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.). The Dissolution Act provided that the city, county, or city and county that authorized the creation of the redevelopment agency (“RDA”) shall be the “successor agency” to the dissolved RDA, unless it elects not to serve as the successor agency. Additionally, the Dissolution Act provides that the city, county, or city and county that authorized the creation of the RDA may also elect to retain the housing assets and functions previously performed by the former RDA. The City of Rohnert Park adopted Resolution No. 2012-10 on January 10, 2012. The resolution declared that, effective February 1, 2012: 1) the City of Rohnert Park (“City”), acting in a separate legal capacity and as a separate public entity, would act as successor agency (the “Successor Agency”) for the Community Development Commission of the City of Rohnert Park (“CDC”); and 2) the City would retain the housing assets and responsibility for performing the housing functions previously performed by the CDC. Under the Dissolution Act, all rights, powers, duties, obligations, and housing assets have been or shall be transferred to the City. Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 4 2 The City prepared a Housing Asset List for the California Department of Finance (“DOF”), which was subsequently approved by the DOF via letter dated August 29, 2012. On December 1, 2014, the Oversight Board adopted Resolution No. OSB 2014-10, authorizing and directing the transfer of all former CDC housing assets to be transferred to the City. The Property was included on the Housing Asset Transfer List, and the Oversight Board resolution. The City currently possesses clear title to the Property. The City conducted a competitive process to select a broker to sell the Property, and North Bay Property Advisors was selected. The City, through the marketing effort of the broker, received several offers. A competitive bidding process was then undertaken, and North Bay Homes and Land, Inc. (“Buyer”) made the highest offer. Their intention is to repurpose some of the existing buildings into high density residential units, and demolish and build new buildings for the remainder of their project. The Buyer has already submitted pre-applications through the Department of Development Services for their proposed project. ANALYSIS: The purchase offer is for $1,548,000. There is an initial deposit of $25,000, with an increased deposit of $100,000 upon the completion of the due diligence period. The escrow period is 30 days, with the due diligence period also being 30 days upon delivery by the City of known documents regarding the Property. The Agreement provides 15 days for the City to deliver the known documents to the Buyer upon the approval of this agreement. OTHER OPTIONS CONSIDERED: 1. There is an option to reject the offer and agreement. However, this is the highest offer received, and the other terms are amenable to the efficient and effective disposition of the Property. Higher offers may not be realized if the property goes back onto the market for more offers. Not recommended. 2. There is also the option to amend the agreement terms. The general terms were produced by staff, in concert with our brokers, and were nearly all accepted by the Buyer. Not recommended. ENVIRONMENTAL ANALYSIS: Section 15061(b)(3) of the CEQA Guidelines exempts from CEQA review activities that do not have the potential to cause significant effects on the environment. The transfer of ownership of the property from the City to the Buyer is exempt from CEQA under Section 15061(b)(3) because there is no possibility that the conveyance will have an effect on the environment. FISCAL IMPACT/FUNDING SOURCE: The fiscal impact will consist of revenue in the amount of $1,548,000, minus commissions, report costs, and other smaller costs that are deducted from the purchase price at the close of escrow. This revenue is required to be deposited into the Low and Moderate Income Housing Asset Fund per the Dissolution Act. Department Head Approval Date: N/A City Manager Approval Date: 4/2/2015 ITEM NO. 4 3 City Attorney Approval Date: 4/2/2015 Attachments (list in packet assembly order): 1. Approving Resolution 2. Exhibit A: Agreement of Purchase and Sale and Joint Escrow Instructions Between the City of Rohnert Park and North Bay Homes and Land, Inc. RESOLUTION NO. 2015-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING AND APPROVING AN AGREEMENT OF PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS FOR 6750 COMMERCE BOULEVARD, 100 AVRAM AVENUE AND 120 AVRAM AVENUE WITH NORTH BAY HOMES AND LAND, INC. AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT AND TAKE ALL OTHER ACTIONS NECESSARY TO CONSUMMATE THE TRANSACTION CONTEMPLATED BY THIS RESOLUTION WHEREAS, the California state legislature enacted Assembly Bills x1 26 and 1484 (together, the “Dissolution Act”) to dissolve and unwind the affairs of redevelopment agencies formed under the Community Redevelopment Law (Health and Safety Code Section 33000 et seq); and WHEREAS, the Dissolution Act, at Health and Safety Code Section 34176, provides that the city, county, or city and county that authorized the creation of the redevelopment agency may elect to retain the housing assets and functions previously performed by the former redevelopment agency; and WHEREAS, the City of Rohnert Park (“City”) did so elect, by adoption of Resolution No. 2012-10 on January 10, 2012, and by Grant Deeds dated December 17, 2014 and recorded as Instrument Nos. QCD 2015003603, 2015003611, and 2015003613, in the records of the Sonoma County Recorder, the Successor Agency to the Community Development Commission of the City of Rohnert Park transferred to the City the properties located at 6750 Commerce Blvd, 100 Avram Avenue and 120 Avram Avenue; and WHEREAS, North Bay Homes and Land, Inc. (“Buyer”) has submitted a proposal to the City to acquire the Property from the City, at fair market value, and the City desires to so dispose of the Property, with the proceeds of the sale to be deposited in the City’s Low and Moderate Income Housing Asset Fund as required pursuant to Health and Safety Code Section 34176(d); and WHEREAS, On September11, 2014, the Planning Commission of the City of Rohnert Park conducted a review pursuant to Government Code Section 65402 and determined that the City’s disposition of the Property to Buyer pursuant to the terms hereof is consistent with, and will facilitate implementation of the City of Rohnert Park General Plan; and NOW, THEREFORE, the City Council of the City of Rohnert Park does hereby resolve, determine, find and order as follows: Section 1. Recitals. The above referenced recitals are true and correct and are incorporated into and form a material part of this Resolution. 2 Section 2. Environmental Review. The transfer of ownership of the property from the City to Buyer is exempt from CEQA review under CEQA Guidelines section 15061(b)(3) because there is no possibility for the conveyance to have an effect on the environment. Section 3. Approval of Agreement of Purchase and Sale and Joint Escrow Instructions; Authority of Mayor. The City Council hereby consents to the sale of the Property to North Bay Homes and Land, Inc. for a price of One Million, Five Hundred Forty Eight Thousand Dollars ($1,548,000.00) and approves the Agreement of Purchase and Sale and Joint Escrow Instructions in substantially similar form as provided for in “Exhibit A”, attached hereto and incorporated by this reference. The City Council authorizes the Mayor to execute said Agreement on behalf of the City of Rohnert Park subject to minor modifications as approved by the City Attorney. Section 4. Section 65402 Consistency. Pursuant to Government Code Section 65402, the City Council hereby affirms and accepts the City Planning Commission’s recommended finding that the actions described in this Resolution are consistent with the City’s General Plan. Section 5. Approval of Deed. The Mayor is hereby authorized and directed to execute a Grant Deed for and on behalf of the City of Rohnert Park, subject to the terms stated in the Agreement of Purchase and Sale and Joint Escrow Instructions and to the review and acceptance by the City Attorney. Section 6. Other Actions Authorized. Subject to review and acceptance by the City Attorney, the Mayor and City Manager, as appropriate, are hereby authorized and directed to take all action necessary or reasonably required to carry out, give effect to, and consummate the transactions contemplated by this Resolution and to take all action necessary in conformity therewith. Section 7. Severability. If any action, subsection, sentence, clause or phrase of this Resolution shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Resolution that can be given effect without the invalid provisions. DULY AND REGULARLY ADOPTED this 3rd day of April, 2015. CITY OF ROHNERT PARK _______________________________ Amy O. Ahanotu, Mayor ATTEST: _____________________________ JoAnne Buergler, City Clerk 3 Attachments: Exhibit A, Agreement of Purchase and Sale and Joint Escrow Instructions Between the City of Rohnert Park and North Bay Homes and Land, Inc. EXHIBIT A AGREEMENT OF PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS CALLINAN _________ MACKENZIE: _________ STAFFORD: _________ BELFORTE _________ AHANOTU: _________ AYES: ( ) NOES: ( ) ABSENT: ( ) ABSTAIN: ( )