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32 RESOLUTION NO. 2022-R____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER
CITY PURSUANT TO THE PROVISIONS OF CALIFORNIA
GOVERNMENT CODE SECTION 52201 APPROVING: (1) THE SALE
AND TRANSFER OF CERTAIN REAL PROPERTY LOCATED AT 9814
WASHINGTON BOULEVARD TO RETHINK CULVER LLC; (2) ENTRY
BY THE CITY OF CULVER CITY AND RETHINK CULVER LLC INTO
A PROPOSED DISPOSITION AND DEVELOPMENT AGREEMENT
AND A GRANT DEED TO EFFECTUATE SAID DISPOSITION OF
PROPERTY; (3) THE CITY OF CULVER CITY’S REMITTANCE OF
THE NET PURCHASE PRICE PROCEEDS RECEIVED BY THE CITY
OF CULVER CITY AFTER CLOSE OF ESCROW TO THE LOS
ANGELES COUNTY AUDITOR -CONTROLLER FOR DISPOSITION
TO TAXING ENTITIES; AND (4) RELATED ACTIONS.
WHEREAS, Assembly Bill No. X1 26 (2011-2012 1st Ex. Sess.) (“AB 26”) was signed by the Governor of California on June 28, 2011, making certain changes to the California Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the “Redevelopment Law”) and to the California Health and Safety Code (“ H&S Code”) including adding Part 1.8 ( commencing with Section 34161) and Part 1.85 (commencing with Section 34170) (“Part 1.85”) to Division 24 of the H&S Code; and
WHEREAS, pursuant to AB 26, as modified by the California Supreme Court on December 29, 2011 by its decision in California Redevelopment Association v.
Matosantos, all California redevelopment agencies, including the Culver City Redevelopment Agency (the “Former CCRA”), were dissolved on February 1, 2012, and successor agencies were designated and vested with the responsibility of paying, performing and enforcing the enforceable obligations of the former redevelopment agencies and exped itiously winding down the business and fiscal affairs of the former redevelopment agencies; and WHEREAS, the City Council of the City of Culver City adopted Resolution No. 2012-R001 on January 9, 2012, pursuant to Part 1.85 of AB 26, accepting for the Cit y of
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32 Culver City (the “City”) the role of successor agency to the Former CCRA (the “ Successor Agency”); and
WHEREAS, AB 26 has since been amended by various assembly and senate bills enacted by the California Legislature and signed by the Governor (AB 26 as amended is hereinafter referred to as the “Dissolution Law”); and WHEREAS, on February 6, 2012, the Board of Directors of the Successor Agency, adopted Resolution No. 2012 -SA001 naming itself the “Successor Agency to the Culver City Redevelopment Agency”, the sole name by which it will exercise its powers and fulfill its duties pursuant to Part 1.85 of the Dissolution Law and establishing itself as a separate legal entity with rules and regulations that will apply to the governance and operations of the Successor Agency; and
WHEREAS, pursuant to the Dissolution Law, each successor agency shall have an oversight board with fiduciary responsibilities to holders of enforceable obligations and to the taxing entities that benefit from distributions of property taxes and other revenues pursuant to H&S Code Section 34188 of the Dissolution Law; and WHEREAS, the oversight board has been established for the Successor Agency (hereinafter referred to as the “Oversight Board”) and all seven (7) members have been appointed to the Oversight Board pursuant to H&S Code Section 34179. The duties and responsibilities of the Oversight Board are primarily set forth in H&S Sections 34179 through 34181 of the Dissolution Law; and
WHEREAS, pursuant to H&S Code Section 34191.5(b) of the Dissolution Law, on July 18, 2013, the Successor Agency prepared and submitted to the California Department of Finance (the “DOF”) for approval its Long Range Property Management Plan (the “LRPMP”), as approved by its Oversight Board, that addressed the disposition and use
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32 of certain real properties of the Former CCRA. On March 13, 2014, the Successor Agency prepared and submitted to the DOF for approval certain revisions to its LRPMP, as approved by its Oversight Board, that addressed changes to the disposition of certain parking parcels of the Former CCRA as described in the revised LRPMP; and WHEREAS, the DOF, by letter dated March 18, 2014, issued its determination on the LRPMP, as revised, (the “Revised LRPMP”) approving the Successor Agency’s use and disposition of all the properties listed in the LRPMP. The DOF’s letter states that its approval of the Revised LRPMP took into account Resolution No. 2014 -OB004 approving the Revised LRPMP and accompanying Agenda Item Report and acknowledges the Successor Agency’s submittal of its LRPMP on July 18, 2013 and the Revised LRPMP on March 13, 2014; and
WHEREAS, among the properties approved for disposition was the Successor Agency-owned real property located at 9814 Washington Boulevard, in the C ity of Culver City (the “Site”); and
WHEREAS, by grant deed recorded in the official records of Los Angeles County on January 29, 2020, the Site was transferred from the Successor Agency to the City for no monetary compensation; and
WHEREAS, the City and REthink Culver LLC, a California limited liability company (the “Developer”), desire to enter into a Disposition and Development Agreement and related agreements (collectively, the “ DDA”) to provide for the improvement and development of the Site with the 34-unit market rate and affordable housing project with ground-floor arts related space (the “Project”). The DDA provides for the City to sell and transfer the Site to the Developer for a purchase price of Three Hundred Thousand Dollars ($300,000) (the “Purchase Price”); and
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32 WHEREAS, the City desires to sell and transfer to the Developer fee title to the Site through a proposed grant deed (the “Grant Deed”); and WHEREAS, the DDA contains all the provisions, terms and obligations required by State and local law, and the Developer represents that it possesses the qualifications and financial resources necessary to develop and operate the Project as set forth in the DDA, all of which development will be in accordance with the purposes and objectives o f the Redevelopment Law; and
WHEREAS, pursuant to California Government Code Section 52201, the City is authorized, with the consent of the City Council, to sell or lease property, such as the Site, in order to create an economic opportunity; and
WHEREAS, a copy of the DDA and a summary of this transaction (which by this reference is incorporated herein as if set forth in full at this point) setting forth all of those matters required by the provisions of Section 52201 of the California Government Code have been available for public inspection; and
WHEREAS, notice of the hearing to consider the DDA was given in the manner required by law; and
WHEREAS, at said public hearing, the City Council received and considered a staff report (which by this reference is incorporated herein as if set forth in full at this point) and testimony; and
WHEREAS, the City and the Developer’s predecessor-in-interest entered into an exclusive negotiation agreement dated as of November 17, 2020 regarding the proposed sale of th e Site, and so long as such sale is completed by December 31, 2022, California Government Code Section 54234(b)(1) and Surplus Land Act Guidelines Section 103(b)(2)
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32 provide that the sale is not subject to the requirements of AB 1486 and must comply with the Surplus Land Act as it existed on December 31, 2019; and WHEREAS, in accordance with the California Environmental Quality Act (“CEQA”) set forth in California Public Resources Code Section 21000 et seq., the State CEQA Guidelines set forth in Title 14, California Code of Regulations Section 15000 et seq., and procedures adopted by the City relating to environmental evaluation of public and private projects, initial review of the Project established that there are no potentially significant adverse impacts upon the environment, and the Project has been determined to be Categorically Exempt pursuant to CEQA Section 15332, Class 32 – In-Fill Developments, because the proposed project is consistent with the Downtown (Commercial) General Plan Land Use designation and the Commercial Downtown (CD) Zoning standards , the Project site is on a 0.29 -acre site surrounded by urban land uses ( e.g., commercial uses, medical and hospital uses, and municipal buildings) , the Project site currently consists of a vacant single-family home and a commercial restaurant, and has no value as habitat for endangered, rare, or threatened species, the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality because it is within the anticipated development threshold for this area , and t he Project analysis did not identify significant impacts and required utilities and public services are provided as determined by the City; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, the City Council of the City of Culver City , DOES HEREBY RESOLVE as follows:
SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution.
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32 SECTION 2. The City Council has received and heard all oral and written objections to the City’s proposed sale and transfer of the Site to the D eveloper for the Purchase Price, in accordance with the terms and conditions set forth in the DDA, and to other matters pertaining to this transaction, and that all such oral and written objections are hereby overruled.
SECTION 3. The City’s proposed sale and transfer of the Site to the Developer for the Purchase Price will assist in the creation of economic opportunity.
SECTION 4. The consideration for the Site is not less than the fair market value at its highest and best use.
SECTION 5. The City Council hereby approves the City’s entry into the DDA, and the sale and transfer of the Site to the Developer for the Purchase Price , all in accordance with the terms and conditions set forth in the DDA.
SECTION 6. The City Council hereby approves the DDA, in substantially the form as the DDA attached to the September 12, 2022 City Council Agenda Item Report, Agenda Item No. 23-76, that effectuates the City’s disposition of the Site to the Developer for the Purchase Price.
SECTION 7. The City Council hereby approves delivery of the Grant Deed that would effectuate the City’s disposition of the Site to the Developer for the Purchase Price.
SECTION 8. The City Council hereby authorizes and directs the City Manager of the City, or designee, to remit to the Los Angeles County Auditor -Controller’s Office for distribution to the taxing entities in accordance with H&S Co de Section 34191.5(c)(2)(B) of the Dissolution Law the net purchase price proceeds that are received by the City after the close of escrow for the City’s sale and transfer of the Site to the Developer in accordance with the terms and conditions set forth in the DDA, and consistent with the Revised LRPMP,
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32 because the Site was transferred from the Successor Agency to the City for no monetary compensation.
SECTION 9. The City Council hereby finds that so long as the sale of the Site is completed by December 31, 2022, it is not subject to the requirements of AB 1486 and must comply with the Surplus Land Act as it existed on December 31, 2019.
SECTION 10. The City Council hereby authorizes and directs the City Manager of the City, or designee, (i) to take all actions and to execute any and all documents, instruments, and agreements necessary or desirable on behalf of the City, as approved by the City Manager of the City and the City Attorney, including, without limitation, the DDA and the Grant Deed transferring the Site the Developer for the Purchase Price ; (ii) to remit the net purchase price proceeds for the Site received from the Developer by the City after the close of escrow to the Los Angeles County Auditor -Controller’s Office for distribution to the taxing entities in accordance with H&S Code Section 34191.5(c)(2)(B) of the Dissolution Law, (iii) to effectuate all other actions approved by this Resolution, including, without limitation, approving changes, implementations, or revisions to documents, instruments, and agreements as determined necessary by the City Manager , or designee ; and (i v) to administer the City’s obligations, responsibilities, and duties to be performed pursuant to this Resolution and all documents, instruments, and agreements required by and for the sale and transfer of the Site to the Developer for the Purchase Price.
SECTION 11. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, then such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The
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32 City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.
SECTION 12. This Resolution shall take effect upon the date of its adoption.
APPROVED AND ADOPTED, this ___ day of______________, 2022.
DR. DANIEL LEE, Mayor
ATTEST: APPROVED AS TO FORM:
JEREMY BOCCHINO, City Clerk HEATHER BAKER, City Attorney