6-A
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to consider ratifying Resolution No. 24-16 – A Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement, in a form approved by the City Attorney, with M Power Communication Corporation for the purchase of real property located at 16730 Bellflower Boulevard (APN 7109-013-800 and 801).
DATE: April 25, 2024
EXECUTIVE SUMMARY
A public hearing was held on April 8, 2024 regarding this matter. Because of a technical error in the timing of the public hearing, and in an abundance of caution, the matter was re-noticed to ratify the action taken by the City Council on April 8, 2024.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take documentary and testimonial evidence; and after considering the evidence, ratify Resolution No. 24-16 amending the fiscal year 2023-24 Operating Budget to allocate funds for the property purchase and authorizing the City Manager to execute the Purchase and Sale Agreement, in a form approved by the City Attorney;
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The City will pay $1,945,000 to M Power Communications Corp. to acquire the Property plus $10,000 to cover estimated escrow fees and title insurance costs.
PUBLIC NOTICE
On April 11, 2024, a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park; also on April 12 and April 19, 2024, a Public Hearing Notice was published in the Los Cerritos Community News newspaper.
DISCUSSION
A public hearing was held on April 8, 2024 regarding this matter (see attached April 8, 2024 Staff Report). Because of a technical error in the timing of the public hearing, and in an abundance of caution, the matter was re-noticed to ratify the action taken by the City Council on April 8, 2024.
ATTACHMENT
April 8, 2024 Staff Report ...................................................................................................................... 2
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Jim DellaLonga, Director of Economic Development
SUBJECT: Consideration and possible action to conduct a public hearing to consider adopting Resolution No. 24-16 – A Resolution authorizing the City Manager to amend the FY 2023-24 Operating Budget and execute a Purchase and Sale Agreement File No. 422.1 between the City of Bellflower and M Power Communications Corporation for the purchase of real property located at 16730 Bellflower Boulevard (APN 7109-013-800 and 801).
DATE: April 8, 2024
EXECUTIVE SUMMARY
Executing the Purchase and Sale Agreement File No. 422.1 (PSA) with M Power Communications Corporation (the “M Power”) would cause the City to purchase real property located at 16730 Bellflower Boulevard for $1,945,000. The property includes the former M Power building that contains the Chamber of Commerce office, a parking lot containing 29 spaces, and is adjacent to a City-owned public parking lot. Acquiring the property would give the City control over its future use in a manner that contributes to Downtown Bellflower’s economic growth and image.
RECOMMENDATION TO CITY COUNCIL
1) Open the public hearing; take documentary and testimonial evidence including receiving and filing a report required by Government Code § 52201; and after considering the evidence, adopt Resolution No. 24-16 amending the fiscal year 2023-24 Operating Budget to allocate funds for the property purchase and authorizing the City Manager to execute Purchase and Sale Agreement File No. 422.1, in a form approved by the City Attorney; and
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The City would pay $1,945,000 to M Power Communications Corp. to acquire the Property plus $10,000 to pay for estimated escrow fees and title insurance costs.
A budget amendment to the 2023-24 fiscal year operating budget is needed to allocate $1,955,000 in the General Fund (Cash Reserve for Property Acquisitions) – Account No. 010-47212-9000 for the purchase of the Property.
PUBLIC NOTICE
On March 22, 2024, a Public Hearing Notice was posted at City Hall, Brakensiek Library, Bellflower Substation, Thompson Park, and Simms Park; also on March 22, 2024, a Public Hearing Notice was published in the Los Cerritos Community News newspaper.
Staff Report – Purchase and Sale Agreement File No. 422.1 with M Power April 8, 2024
DISCUSSION
In early March 2024, the property at 16730 Bellflower Boulevard (the “Property”) was put on the market for sale. The Property consists of two parcels containing a 6,198 square foot building (APN 7109-013-800) on a 6,559 square foot parcel, and a parking lot (APN 7109-013-801) on a 17,243 square foot parcel. The building is currently occupied by the Bellflower Chamber of Commerce, which is utilizing 1,500 square feet. The remaining 4,698 square feet is vacant.
Staff believes the purchase of this property, with the right business or developer, represents an important asset and opportunity that will contribute to this area’s economic growth. As part of this process, the City reviewed recent comparable sales in Downtown Bellflower which support the negotiated purchase price of $1,945,000, agreed to by M Power. The purchase and sale agreement represents the terms and conditions of this pending acquisition.
It is the City’s intent to lease or sell the property to a business or developer that will contribute to the economic development of the Downtown Bellflower area. Proceeds from any future leases of the property will be returned to the City’s general fund.
Attached is a Summary Report required by Government Code § 52201 that describes the following:
a) the cost of the agreement to the City;
b) the estimated value of the interest to be conveyed or leased determined at the highest and best uses permitted under the general plan or zoning;
c) if applicable, the estimated value of the interest to be conveyed or leased determined at the use with the conditions, covenants, and development costs required by the sale or lease;
d) the purchase price or present value of the lease payments which the lessee will be required to make during the term of the lease;
e) if the sale price or total rental amount is less than the fair market value of the interest to be conveyed or leased, determined at the highest and best use, then the city shall provide, as part of the summary, an explanation of the reasons for the difference; and
f) an explanation of why the sale or lease of the property will assist in the creation of economic opportunity (as defined by Government Code § 52200.2), with reference to all supporting facts and material relied upon in making this decision.
ATTACHMENTS
Summary Report ......................................................................................................................... 3 Resolution No. 24-16 .................................................................................................................. 5
Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 16730 Bellflower Bl. 1
SUMMARY REPORT PURSUANT TO
GOVERNMENT CODE § 52201
REGARDING A
PURCHASE AND SALE AGREEMENT
BY AND BETWEEN THE
CITY OF BELLFLOWER AND
M POWER COMMUNICATIONS CORP.
The following Summary Report was prepared pursuant to Government Code § 52201. This report sets forth certain details of the proposed Purchase and Sale Agreement (“Agreement”) between the City of Bellflower (“City”) and M Power Communications Corp. (“Seller”).
Seller owns approximately 23,802 square feet of land located at 16730 Bellflower Boulevard on two non- contiguous parcels (APNs 7109-013-800 and 7109-013-801) (“Property”) with a 6,198 square foot building on one of the parcels. The Agreement requires Seller to sell the Property to the City.
The following Summary Report is based upon information required by the Government Code. It is organized into the following three sections:
I. Salient Points of the Agreement: This section summarizes the major responsibilities agreed to by Seller and the City by the Agreement.
II. Cost of the Agreement to the City: This section details the total cost to the City associated with implementing the Agreement.
III. Creation of Economic Opportunity: This section describes the existing condition of the subject property and explains how the Agreement will assist in the creation of economic opportunity.
This report and the Agreement are to be made available for public inspection prior to the approval of the Agreement and no later than the time of publication of the first required notice of the public hearing pursuant to Government Code § 52201.
I. SALIENT POINTS OF THE AGREEMENT
A. Project Description
The Project is the City’s purchase of all that certain real property located at 16730 Bellflower Boulevard, Bellflower, CA 90706 on APNs 7109-013-800 and 7109-013-801.
B. Seller Responsibilities Under the Agreement
The Agreement requires the Seller to accept the following responsibilities:
1. Seller agrees to sell the Property, following the satisfactory inspection(s) of the Property by the City and approval of documents produced during the escrow Period.
2. Seller agrees to pay the costs associated with a CLTA Standard Coverage Police of Title Insurance showing title to the Property vested in Buyer and half of the escrow fees.
Summary Report Government Code Section 52200 – Purchase and Sale Agreement – 16730 Bellflower Bl. 2
C. City Responsibilities Under the Agreement
1. The City will purchase the Property for One Million Nine Hundred Forty-Five Thousand Dollars ($1,945,000) following satisfactory inspection(s) of the Property during escrow and the Due Diligence Period.
II. COST OF THE AGREEMENT TO THE CITY
The cost incurred by the City to implement the Agreement is $1,945,000 for the purchase of the Property plus half of the typical escrow fees and de minimum costs for staff time to effectuate the acquisition.
III. ECONOMIC OPPORTUNITY
The Property, located at a signalized intersection at the northeast corner of Bellflower Boulevard and Flower Street, is currently partially vacant and owned by Seller and is not currently generating any state or local taxes, as these are non-taxable parcels (public utility). The City intends to market the Property to produce a private development project that will create economic opportunity, as defined by Government Code Section 52200.2, by increasing property tax revenues to all property tax collecting entities by at least 15% at full implementation of a project when compared to the year before the property being acquired by the City.
Significant new development is occurring within the vicinity of the Property. This includes Edgeway Downtown Bellflower, The Mayne Events Center and Los Angeles County Fire Museum, The Bellflower Regional Transit Center and Parking Structure, SteelCraft outdoor food hall, the Downtown Collection townhomes by City Ventures, The Nest Eatery, and The Stand Up Comedy Club. The Site, located in the heart of Downtown Bellflower, is adjacent to a City-owned public parking lot and is within walking distance from several other public parking lots. Additionally, a street improvement project has been awarded by the City to complete improvements on Bellflower Boulevard from Flower Street south to the 91 Freeway.
The Property is served by all major utilities and has only been vacant for approximately six months. A new sales tax generating use utilizing the square footage of the Property could generate between $3,000 and $25,000 in revenue to the City annually. Furthermore, as part of Downtown Bellflower, the property is part of the Downtown Bellflower Revitalization Vision Strategy, the Downtown Bellflower Strategic Development Plan, the Downtown Bellflower Transit Oriented Development Specific Plan Area, and would be eligible for the Bellflower Business Assistance Plan.
CITY OF BELLFLOWER
RESOLUTION NO. 24-16
A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE
FY 2023-24 OPERATING BUDGET AND EXECUTE A PURCHASE AND
SALE AGREEMENT FILE NO. 422.1 BETWEEN THE CITY OF
BELLFLOWER AND M POWER COMMUNICATIONS CORPORATION
FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 16730
BELLFLOWER BOULEVARD (APN 7109-013- 800 AND 7109-013-801)
THE CITY COUNCIL OF THE CITY OF BELLFLOWER DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. In March 2024, in response to a sales listing, the City of Bellflower made an offer to purchase the property located at 16730 Bellflower Boulevard APN 7109-013- 800 and 7109-013-801) from M Power Communications Corporation for a purchase price of $1,945,000;
B. Based on a review of recent comparable sales in Downtown Bellflower in March 2024, the City verified the negotiated price for the 16730 Bellflower Boulevard ("Property") as a fair market purchase price; C. M Power Communications Corporation desires to convey the Property to the City of Bellflower for a purchase price of $1 ,945,000, which represents a fair market value for the Property per the City's review of recent comparable sales in Downtown Bellflower;
D. As set forth in the accompanying report (as required by Government Code 52201) the City believes that the Property is an important asset that contributes to the economic activity in Downtown Bellflower. Accordingly, the City Council desires to purchase the Property; and
E. Toward that end, the City and M Power Communications Corporation desire to enter into a Purchase and Sale Agreement for the Property.
SECTION 2. Environmental Assessment. Adopting this Resolution is exempt from further environmental review pursuant to the California Environmental Quality Act Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the "CEQA Guidelines").
Acquisition of the Property (by itself) does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt in accordance with CEQA Guidelines § 15061(b)(3) as CEQA only applies to projects that have the potential to cause a significant effect on the environment. Additionally, acquiring the property would result in minor (if any) alterations to existing facilities involving no significant expansion of the existing use. Acquiring the Property — by itself — would not have any significant impacts with regard to traffic, noise, air quality, or water quality. There are adequate utilities and public services to serve the Property. Any future redevelopment of the Property would require separate environmental review and either discretionary or
City of Bellflower
Resolution No. 24-16
ministerial approvals by the City. A simple conveyance of title does not necessitate preparation of an environmental document. The City Manager, or designee, is directed to file a Notice of Determination in accordance with Public Resources Code §§ 21152, 21167(f); CEQA Guidelines § 15075; and any other applicable law..
SECTION 3. Authorizations. The City Council authorizes the purchase of the Property from M Power Communications Corporation to the City upon payment of 1,945,000 by City. In order to effectuate that conveyance, the Mayor and City Manager are authorized to execute all documents, in a form approved by the City Attorney, needed to implement the conveyance of the Property as contemplated by this Resolution including, without limitation, escrow instructions, the grant deed, closing statement, and the certificate of acceptance. The City Manager is further authorized to accept the grant deed and cause them to be recorded in the Office of the County Recorder of the County of Los Angeles after they are executed by M Power Communications Corporation.
SECTION 4. The City Manager, or designee, is directed to amend the FY 2023-2024 Operating Budget to allocate $1,955, 000 in the General Fund Account No. 010-47212-9000 to account for the acquisition of property.
SECTION 5. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 7. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 8h DAY OF APRIL 2024.
jck 74----tr-ehDanKoops, Mayor
ATTEST:
i
May a Ocjfr s' ?k
APPR j RM:
t
L
f• rl H. Berger ty Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES )SS
CITY OF BELLFLOWER
I, Mayra Ochiqui, City Clerk of the City of Bellflower, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 24-16 was duly passed, approved, and adopted by the City Council of the City of Bellflower at its Regular Meeting of the City Council on April 8, 2024, by the following vote to wit:
AYES: Council Members — Sanchez, Santa Ines, Dunton, Morse, and Mayor Koops
Dated: April 9, 2024
May c qui, City erk
Ci of B Ilflower, Califor 'a
SEAL)