Item #09
Date: March 15, 2022
To: Mayor and City Council
From: Christian S. Sachs, Chief of Police
Jim Schaad, City Manager
Subject: Redevelopment Agency Properties for Sale Under the Marysville Long Range Property Management Plan
Recommendation:
Pass a Motion to approve Resolution No. 2022-XX, authorizing sale of Redevelopment Agency properties identified by parcel numbers listed within this staff report.
Rationale for Recommendation:
Staff has worked diligently with the State Department of Finance and Old Republic Title Company to complete the sale and transfer process however a resolution is now being requested from the Successor Agency authorizing approval of sales.
Background:
On October 20, 2020, Marysville City Council approved the sale of Redevelopment Agency properties for sale under the Marysville Long Range Property Management Plan. As staff has worked through the process to sell and transfer said properties, there were several requirements needing to be met. Staff was just informed a resolution approving the sale of such properties is now required to assist in completing this process.
Additionally, On May 8, 2015, the Department of Finance (DOF) approved the amended Long-Range Property Management Plan (LRPMP) and the disposition of all the properties listed on that plan.
On September 14, 2015, the Oversight Board approved the City’s request to use a real estate broker and pay real estate commissions for the sale of Marysville Redevelopment Agency assets.
In May of 2016 the Marysville Successor Agency contracted for an appraisal and listed the subject properties for sale with Coldwell Banker.
The list of properties included in the LRPMP, and the appraised value is included on the attached matrix. The Agency sold properties number 1 and 10 on the attached list. Proceeds from that sale were assigned to the ROPS. Three other properties were transferred to the City in compliance with the LRPMP. No offers were received on the remaining properties.
Item #09
Health and Safety Code 4177 (e) provides that the Agency dispose of assets expeditiously and in a manner aimed at maximizing value. Proceeds from asset sales are first paid toward the ROPS and the remainder is transferred to the county auditor-controller for distribution as property tax proceeds under Section 3418. However, nothing in the Redevelopment Agency wind down legislation precludes an agency from selling assets for less than fair market value; only that the proceeds first pay the ROPS and then flow to the taxing entities.
Discussion & Analysis:
To assist in finalizing the completion of sales of the Redevelopment Agency properties listed, staff is requesting the approval of the attached resolution. This resolution will be placed on file with the Marysville Successor Agency and Old Republic Title Company.
Below is a list of APN Parcel numbers and buyers for reference. • 010-282-002-000 & 010-282-003-000 – JCGH Properties LLC. – Sale Price $35,000 • 010-284-023-000 & 010-284-029-000 – Frank M. Booth Inc- Sale Price $14,760 • 010-242-019-000 - Randy Mitchell – Sale Price $12,500 • 010-300-039-000 & 010-300-041-000 - Loran Perkins - $2,760 The Marysville Successor Agency has made diligent efforts to sell the properties at market value and several properties remain underperforming assets of the Agency. The City Council/Successor Agency directed City staff to offer the properties to adjacent property owners and others to dispose of the properties and return them to the tax rolls. The Council/Agency indicated that it may want performance surety for properties sold at a discount to assure highest use and maximum tax generation.
Staff has now solicited and received various Letters of Intent to purchase many of the remaining properties, most at less than the 2016 appraised value. City staff is now requesting authorization from City Council to approve the attached resolution.
Legal Review:
The City Attorney has reviewed and approved the recommended plan.
Alignment with City Council Goal(s):
Goal #2: Expand Economic Development, by being able to add local growth and dollars spent within the City.
Fiscal Analysis:
No fiscal impact for approval of the listed resolution.
Attachments:
1. Resolution No. 2022-XX
2. RDA Property Spreadsheet