RESOLUTION NO.
A RESOLUTION APPROVING THE EXERCISE OF THE REPURCHASE OPTION FOR PROPERTY LOCATED AT 2143 SOUTH ATLANTIC BOULEVARD AND AUTHORIZING $335,000.00 FROM GENERAL FUND RESERVES FOR THE ACQUISITION OF SAID PROPERTY WHEREAS, Pursuant to ABx1 26 (“AB 26”) enacted in June 2011, the Commerce Community Development Commission (the “Commission”), and all other redevelopment agencies throughout the state, were dissolved as of February 1, 2012. AB 1484 was enacted in June of 2012 and substantially amended AB 26, and was codified in the Health and Safety Code; and WHEREAS, Pursuant to Health & Safety Code § 34175(b), on February 1, 2012, the real property and other assets of each dissolved RDA were transferred to the ownership and control of their “successor agency.” Health and Safety Code § 34173(g) requires each successor agency to dispose of such properties and to unwind the affairs of the dissolved redevelopment agencies. The City of Commerce has elected to take on the duties of the successor agency to the Commission (the “Successor Agency”), and by operation of law, the Successor Agency currently owns the land formerly owned by the Commission; and WHEREAS, Pursuant to Health and Safety Code § 34191.5, within six (6) months after receiving a Finding of Completion from the Department of Finance (“DOF”), each successor agency was required to submit for approval to its oversight board and the DOF, a Long Range Property Management Plan (“LRPMP) that addresses the disposition and use of the real properties of the respective former RDA.; and WHEREAS One property identified in the LRPMP is located at 2143 South Atlantic Boulevard in the City of Commerce; and WHEREAS, On July 2, 2019, the Successor Agency entered into a Contingent Agreement of Purchase of Sale between the Successor Agency to the Commerce Community Development Commission and Ramez Karkafi and Catherine George Bitar for property located at 2143 South Atlantic Boulevard in the City of Commerce (“Agreement”); and WHEREAS, Pursuant to Section 10.15 of the Agreement, the Seller has the option to repurchase the Property if the Buyers do not (a) obtain building permits to construct Buyer’s Anticipated Use within one (1) year from the Closing Date, or (b) commence (and thereafter, diligently prosecute to completion) the Buyer’s Anticipated Use within two (2) years after the occurrence of the events contemplated by subsection 10.15(a), then Seller shall have an option to repurchase the Property (the “Repurchase Option”) for the amount of the Purchase Price. Seller must give Buyer written notice of its election to exercise the Repurchase Option within one hundred eighty (180) days after the right matures. Upon exercise of the Repurchase Option by Seller, the Buyer and Seller shall open an escrow within thirty (30) days for the purchase and sale of the Property from Buyer to Seller. Each party shall pay the customary fees and charges of escrow; and WHEREAS, the Buyer did not comply with the abovementioned terms of the Agreement; and WHEREAS, the City of Commerce by operation of law and consistent with the terms of the Grant Deed related to the transaction for the property located at 2143 South Atlantic Boulevard; WHEREAS, the City of Commerce intends to exercise its rights under the Agreement to purchase the property located at 2143 South Atlantic Boulevard for the amount of the purchase price ($335,000.00), which is the same amount that the Successor Agency received from the Buyer.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council approves the exercise of the “Repurchase Option” outlined in Section 10.15 of the Agreement.
Section 3. The City Council authorizes the repurchase amount of $335,000.00 for the contemplated transaction, which is the same amount that the Successor Agency received from the Buyer.
Section 4. The City Manager is hereby authorized on behalf of the City of Commerce to execute any and all documents necessary to implement the City’s approval to repurchase the subject property.
Section 5. Authorize the Mayor to execute the Resolution for and on behalf of the City of Commerce.
Section 6. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED and ADOPTED this 14th day of June 2022. ________________________
Oralia Y. Rebollo
Mayor
ATTEST:
______________________________
Lena Shumway
City Clerk
CC Mtg: 06/14/2022
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