Agenda Report
Fullerton City Council
MEETING DATE: NOVEMBER 15, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, INTERIM DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: WILLIAM IRKHE, SPECIAL COUNSEL
SUNAYANA THOMAS, INTERIM DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT SUBJECT: cONSIDERATION AND APPROVAL OF AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS (PUBLIC PARKING AREA) Applicant: nfred llc; frontier parking ventures llc
site: appx. 48,170 Sq. Ft. PUBLIC PARKING LOT LOCATED SOUTH OF ELLIS PLACE (APNS 029-033-09, 029-033-10, 029-033-27 AND 029-033-28)
SUMMARY
Approval of the form of the Agreement and City Manager authority to execute the Agreement on behalf of the City so the City may utilize funding approved by the California Department of Finance (DOF) as part of the redevelopment dissolution process for parking structure construction.
RECOMMENDATION
Adopt the following resolutions:
As City Council:
RESOLUTION NO. 2022-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING THE FORM OF AN AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS FOR PROPERTY TO USED AS A PUBLIC PARKING AREA / PARKING STRUCTURE, LOCATED ON APPROXIMATELY 48,170 SQUARE FEET OF LAND SOUTH OF ELLIS PLACE (APNS 029-033-09, 029-033-10, 029-033-27 AND 029-033-28) As Successor Agency:
RESOLUTION NO. SA-2022-XX - A RESOLUTION OF THE SUCCESSOR AGENCY OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING THE FORM OF AN AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS FOR PROPERTY TO USE AS A PUBLIC PARKING AREA / PARKING STRUCTURE, LOCATED ON APPROXIMATELY 48,170 SQUARE FEET OF LAND SOUTH OF ELLIS PLACE (APNS 029-033-09, 029-033-10, 029-033-27 AND 029-033-28) Authorize City Manager to execute the Agreement, only if and subject to a condition of regulatory approval for a building permit to construct a parking structure as a public parking area on the Property.
Authorize City Manager, or authorized designee, to execute any additional implementing agreements or documents, including recorded instruments, to perform the City’s obligations under the Agreement and applicable conditions of approval.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
The Successor Agency has six million dollars earmarked as a specific contribution to funding construction of a public parking structure and related improvements to serve and used as a public parking area on the Property. Fullerton Municipal Code (FMC), Section 15.30.030.3, permits, among other enumerated uses, use as a public parking area in the C-3 Central Business District Commercial Zone.
The applicant approached the City to acquire the Property to construct the parking structure as a public parking area and thereafter operate and maintain the Property. In exchange for construction, operation and maintenance of the Property, the City would contribute the $6,000,000 approved by the DOF, which the City must use for the parking facility. The building permit process would include the conditions of approval for the disbursement of this amount, as well as the construction, maintenance and use of the public parking area, with completion as a condition precedent prior to the closing of escrow on the Property.
DISCUSSION
The project site consists of public parking area to complete with construction and use of a parking garage to fulfill, in part, an obligation of the former Fullerton Redevelopment Agency (assumed by the Fullerton Successor Agency) to fund the construction of a parking structure on the parcels identified above (the Property), located to the east of Harbor Boulevard and south of Ellis Place, generally behind Angelo’s and Vinci’s Ristorante building.
The City of Fullerton currently owns this Property as part of the former Redevelopment / Successor Agency and would sell to the project applicant as contemplated through the attached Agreement for Purchase and Sale and Escrow Instructions (the Agreement). However, the parties can only execute the Agreement as a condition of regulatory approval pursuant to a duly processed building permit that would require the applicant to complete the construction and maintain the use of the Property as a public parking area / parking structure.
The applicant and staff requesting approval of the form of the Agreement so that, upon completion of the processing of the required building permit that would include appropriate conditions of approval, the City Manager has the authority to execute the Agreement on behalf of the City so the City may use funding approved by the California Department of Finance (DOF) as part of the redevelopment dissolution process for construction of the parking structure.
The Agency transferred the Property to the City pursuant to the Long-Range Property Management Plan (LRPMP) governing the real properties of the former Fullerton Redevelopment Agency (RDA), which dissolved and wound-down pursuant to the Redevelopment Dissolution Law, Health and Safety Code Section 34170 et seq. (Dissolution Law). In accordance with the Dissolution Law, the Successor Agency prepared, pursuant to Health and Safety Code Section 34191.1 et seq., the LRPMP, which the DOF approved on or about December 22, 2015, pursuant to Health and Safety Code Section 34191.3(a) and 34191.5. The LRPMP identifies the Property as “Asset #3”.
The Property is subject to an “enforceable obligation” as defined by Health and Safety Code Section 34171(d). Specifically, the Property is subject to Section 6.2.2 of that certain Owner Participation Agreement, entered into on or about June 4, 1991, by and between the RDA and Steven Peck, as Trustee of the Steven Peck Inter Vivos Trust (OPA). The LRPMP, as approved by DOF, required the City to retain the Property for use to fulfill the enforceable obligation pursuant to Health and Safety Code Section 34191.5(c)(2) and the DOF approval letter dated December 22, 2015. Furthermore, DOF approved funding from the Redevelopment Property Tax Trust Fund (RPTTF), established pursuant to the Dissolution Law to pay for enforceable obligations of former redevelopment agencies.
CEQA DETERMINATION
Ministerial Project, Use by Right, exempt pursuant to Pub. Resources Code Section 21080(b)(1) and California Environmental Quality Act (CEQA) Guidelines Section 15060(c)(1); Public parking area is a use by right in the C-3 Central Business District Commercial Zone.
Attachments:
Attachment 1 – Draft Resolution No. 2022-XXX
Attachment 2 – Draft Resolution No. SA 2022-XX
Attachment 3 – Agreement for Purchase and Sale and Escrow Instructions cc: City Manager Eric J. Levitt
Agreement for Purchase, Sale, Escrow – Public Parking
November 15, 2022 - Page 2