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CITY COUNCIL AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: SEPTEMBER 26, 2023
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: ADOPTION OF A RESOLUTION APPROVING THE SALE OF REAL PROPERTY LOCATED AT 125 W. VERMONT AVE.
(ASSESSORS PARCEL NUMBER: 037-072-43)
ATTACHMENT (Y/N): YES ITEM # 20
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council by Resolution:
1) Approve the sale of real property located at 125 W. Vermont Ave. (APN: 037-072- 43) by the City of Anaheim to Caterina’s Club, a California nonprofit corporation, along with certain actions related to the sale of the property; and 2) Authorize the Director of Economic Development, or his designee, to execute and deliver the Purchase and Sale Agreement, in substantial form, as approved by the City Attorney’s Office.
DISCUSSION:
The Redevelopment Agency of the City of Anaheim (Redevelopment Agency) originally acquired the approximately 0.22-acre commercial property located at 125 W. Vermont Ave. (Property) in 2004 to eliminate the blighting influence of a liquor store adjacent to a residential neighborhood, consistent with the Commercial Corridor Redevelopment Plan.
However, prior to the disposition of the Property, the Redevelopment Agency was dissolved pursuant to ABX1 26 (Dissolution Act). As part of the dissolution process, the City of Anaheim elected to become the Successor Agency to the Redevelopment Agency (Successor Agency) to oversee and administer the wind down activities of the former Redevelopment Agency including the disposition and sale of real property. The Successor Agency was required by the Dissolution Act to prepare a Long-Range Property Management Plan (LRPMP) addressing the disposition of real properties acquired by the former Redevelopment Agency, which included the Subject Property.
On October 12, 2021 the Successor Agency transferred the Property to the City. On April 12, 2022, the City declared the Subject Property as “surplus land” in accordance with the Surplus Land Act (SLA). On May 2, 2022, the City issued a Notice of Availability (NOA) for the Subject Property. In response to the NOA, the City received Disposition of 125 W. Vermont Ave.
September 26, 2023
one notice of interest to acquire the Subject Property within the 60-day noticing period, which expired on July 1, 2022. However, on November 1, 2022, the respondent notified the City of their intent to withdraw their interest to acquire and develop the Subject Property due to its size limitations. In accordance with the SLA, the City subsequently submitted the required documentation to the California Department of Housing and Community Development (HCD) seeking a letter of SLA compliance and approval to move forward with the sale of the Property, which was obtained on January 18, 2023. As a condition of approval, the SLA requires that an affordable housing covenant be placed on the Subject Property, which states that if ten or more residential units are ever developed on the Subject Property, 15% of the units will be required to be affordable.
Subsequent to the SLA process, staff received a proposal from Caterina’s Club, a non- profit organization that provides food services to Anaheim’s youth. Caterina’s Club has been leasing the Subject Property since July 2010. The City and Caterina’s Club (Buyer) have been in discussions over the last few months regarding the Buyer’s interest in the acquisition of the Subject Property. The Buyer is the owner of the real property directly adjacent to the Subject Property, which operates as a restaurant (Anaheim White House) and now seeks to have a larger fully integrated site to continue to operate Caterina’s Club for years to come.
Subject to City Council review and approval, the City and Buyer have negotiated a Purchase and Sale Agreement for the Property, which includes the following primary deal terms:
Purchase Price: $830,000
Deposit: $10,000
Inspection Deadline: 30 days following the Effective Date Financing Contingency Deadline: 45 days following the Inspection Deadline. Closing Date: 30 days following the Financing Contingency Deadline.
Staff believes that the Buyer is best suited to acquire the Property given that the subject property will be integrated with the Buyer’s adjacent site. An appraisal was conducted by a third party MAI Certified Appraiser and the purchase price is within the value range in the appraisal. Further, the subject Property size (~.22 Acres) is insufficient to support modern commercial uses. Therefore, Staff is recommending that the City Council approve a Resolution approving the Purchase and Sale Agreement between the City and the Buyer for the sale of the subject Property for the price and terms identified herein.
ENVIRONMENTAL DETERMINATION:
The City Council finds and determines that this action results in no binding commitment by the City to authorize or advance the disposition of any of the Surplus Properties or Exempt Surplus Properties; will not result in a direct or indirect physical change in the environment; and does not constitute an “approval” of a “project” pursuant to CEQA Guidelines Sections 15312.
Disposition of 125 W. Vermont Ave.
September 26, 2023
IMPACT ON BUDGET:
Sufficient funds for compliance with the Surplus Land Act are available in the Economic Development Department’s Fiscal Year 2023/24 Long Range Property Management Plan budget. Proceeds from the sale will be disbursed among affected taxing agencies in accordance with Redevelopment Dissolution Law.
Respectfully submitted,
Sergio M. Ramirez
Director of Economic Development
Attachments:
1. Resolution
2. Purchase and Sale Agreement (substantial form)
3. Property Profile/Information