Item #07
Date: January 17, 2023
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Disposition and Development Agreement
Recommendation:
Pass a Motion to authorize the Mayor to sign the attached Disposition and Development Agreement (DDA) by and between the City of Marysville and Harinder Johl, etal. for properties described as 302 and 304 D Street: APN 010-233-011 & 010-233-010.
Rationale for Recommendation:
At the October 20, 2020, City Council meeting the City Council Passed a Motion to authorize the City Manager, or designee, to enter into agreements with interested purchasers and sell the eleven remaining Redevelopment Agency properties. Six of the Agency Parcels were identified as being developable. Two sets of parcels are contiguous. The result will be four DDA’s. To maximize the benefit to the City and eliminate vacant or underutilized parcels, the purchasers will enter into a DDA to develop these sites. This provides a guarantee to the City these properties will get developed in a timely manner.
Discussion & Analysis
The DDA outlines the terms and conditions for the sale and development of this property. The project proposes the development of 11,000 sq ft site with a 4-level building containing 34 one- and twobedroom units. The extreme lack of housing in California has created a high level of demand. The multifamily market continues to demonstrate increasingly favorable trends for development, including low vacancy rates and very limited property availability. The proposed project will be highly desirable based on the projects site’s location within the city’s core downtown. This development will add much-needed residents to the downtown which Marysville has not seen for years.
The General Terms of the Agreement Include:
• Sale Price of $66,800
• Property will be developed with market rate 1 and 2-bedroom apartments with the bottom floor being initially developed into apartment units and convertible to commercial space at a later date based on community and economic demand.
• The Development shall be in compliance with the City’s Municipal Code and the plans, drawings, and documents submitted by the developer shall be reasonably approved by the City in accordance with its ordinary and customary procedures.
2 • The purchaser agrees to meet and adhere to the performance milestones outlined in Exhibit C, Schedule of Performance, attached to the Agreement.
• If the purchaser is unable for any reason to fulfill the development terms of this Agreement the property shall be sold back to the City at its original sale price.
Legal Review:
The City Attorney has reviewed and approved the DDAs.
Alignment with City Council Goal(s):
Goal #2: Expand Economic Development by adding local growth and dollars spent within the City.
Fiscal Analysis:
Receipt of funds from the disposition of Successor Agency assets were used to pay down the Recognized Obligation Payments Schedule (ROPS) which is a listing of enforceable obligations of the former Marysville RDA that was approved by the Oversight Board. With all enforceable obligations being fulfilled, the remaining funds received through the sale of this property will be distributed back to Yuba County to the various taxing entities at current property tax distribution rates. Once back on the tax roll, the property will begin to generate property tax for various taxing entities. There are three positive fiscal impacts:
1) The City will no longer need to maintain these properties, thus saving maintenance costs. 2) The sale will put this property back on the tax rolls and start generating property tax revenue for the City and taxing entities
3) The development of the property into market-rate condominiums/townhomes will provide needed residential development.
Attachments:
1) Disposition and Development Agreement
2) Original Letter of Intent