Successor Agency
to the Redevelopment Agency of the Ci of Placentia
TO: SUCCESSOR AGENCY
VIA: CITY ADMINISTRATOR/EXECUTIVE DIRECTOR
FROM: SUCCESSOR AGENCY STAFF
DATE: MAY 17, 2022
AGENDA REPORT
SUBJECT: TERMINATION OF OWNER PARTICIPATION AGREEMENT BETWEEN THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
PLACENTA AND DENNIS LYNN BLAKE AS TRUSTEE OF THE BLAKE FAMILY TRUST
FISCAL
IMPACT: None.
SUMMARY:
California redevelopment agencies, including the Redevelopment Agency of the City of Placentia ("RDA") were dissolved on February 1, 2012 such that the RDA is now deemed a former redevelopment agency under Health and Safety Code section 34173 and AB x1 26, as modified by Assembly Bill No. 1484 (as modified to date, the "Dissolution Law"), which added Parts 1.8 and 1.85 to Division 24 of the California Community Redevelopment Law (Health and Safety Code sections 33000 et seq., the "CRL"). On January 17, 2012, the Placentia City Council adopted Resolution No. R-2012-03 accepting for the City, the role of Successor Agency to the former Redevelopment Agency ("Successor Agency").
The former Redevelopment Agency of the City of Placentia entered into an Owner Participation Agreement with Dennis Lynn Blake as Trustee for the Blake Family Trust (the "Blake OPA") regarding redevelopment of certain property located at 202 West Santa Fe Avenue, Placentia, CA. (the "OPA Site") and dated April 15, 2010. Pursuant to the advice of the City Attorney, the most appropriate action to take on formally closing this matter is to adopt a resolution formally terminating the OPA. This action respectfully requests the Successor Agency's approval of the termination of the Blake OPA and Revocation of Parking Rights.
RECOMMENDATION:
It is recommended that the Successor Agency take the following action:
Approve Resolution RSA -2022-01, a Resolution of the City Council of the City of Placentia, California, acting as the Successor Agency to the Redevelopment Agency of the City of Placentia, approving the termination of an Owner Participation Agreement between the Former Redevelopment Agency and Dennis Lynn Blake as trustee of the Blake Family Trust.
1.1. May 17, 2022
Attachment 1
City Council/Successor Agency Agenda
May 17, 2022
DISCUSSION:
California redevelopment agencies, including the Redevelopment Agency of the City of Placentia ("RDA") were dissolved on February 1, 2012 such that the RDA is now deemed a former redevelopment agency under Health and Safety Code section 34173 and AB x1 26, as modified by Assembly Bill No. 1484 (as modified to date, the "Dissolution Law"), which added Parts 1.8 and 1.85 to Division 24 of the California Community Redevelopment Law (Health and Safety Code sections 33000 et seq., the "CRL"). The Redevelopment Agency of the City of Placentia entered into an Owner Participation Agreement with Dennis Lynn Blake as Trustee for the Blake Family Trust (the "Blake OPA") regarding redevelopment of certain property located at 202 West Santa Fe Avenue, Placentia, CA. (the "OPA Site") and dated April 15, 2010.
Dennis Blake as Trustee for the Blake Family Trust is identified as the Participant in the Blake OPA undertaking certain obligations and duties for the redevelopment of the OPA Site. The Participant has not fulfilled their obligation to redevelop the OPA Site as required by the terms and conditions of the Blake OPA, specifically section 4 which states in pertinent part; "The Participant shall rehabilitate, redevelop and re -use the OPA Site in a new manner that is consistent with all applicable land use and zoning regulations and serves the goals for the Redevelopment Project Area, specifically including generation of tax increment revenue." As of the date of this Staff Report, no tenant occupying the OPA Site has generated tax increment revenue (as that term was contemplated in the OPA) and the OPA Site has remained vacant for several years.
As provided in section 7 of the Blake OPA, which states "Participant shall rehabilitate, redevelop and cause exterior facade improvements and modifications to the OPA Site." In addition, "Participant shall provide Agency with written plans and specifications of the intended improvements to the OPA Site no later than six (6) months from the effective date of this agreement." "Construction of Improvements shall commence no later than nine (9) months from the Effective Date of this Agreement." As of the date of this Staff Report, there have been no exterior facade improvements made to the OPA Site.
The Successor Agency to the Redevelopment Agency of the City of Placentia (the "Successor Agency") by the authority of the Dissolution Law and the CRL is now successor in interest to the Blake OPA. Pursuant to the City Attorney's analysis, the most appropriate action for the City Council to take in formally closing this matter for the Successor Agency is to approve a formal termination of the Blake OPA and Revocation of Parking Rights. As provided in section 6.3 of the Blake OPA, which states — "Agency reserves the right to revoke any and all public off-site parking and/or future parking allowances provided in this Agreement if Participant fails to implement the required Improvements, fails to maintain the Improvements or if Participant, a successor -in - interest or tenant ceases to use the OPA Site in a new manner that is consistent with all applicable land use and zoning regulations and serves the goals for the Redevelopment Project Area, including generation of tax increment revenue consistent with the list of Permitted Uses as provided in Exhibit 3 unless any non -revenue generating use or use not listed in Exhibit 3 is approved by the City and/or Agency upon application by Participant and an amendment to this Agreement is entered into by Agency and Participant allowing such use."
City Council/Successor Agency Agenda
May 17, 2022
FISCAL IMPACT:
There are no fiscal impacts associated with this action.
Prepared by:
Jeannette Ortega
Assistant to the City Administrator/
Economic Development Manager
Reviewed and approved:
Luis fsf
Luis Estevez
Deputy City Administrator
Approved as to Form:
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Christian L. Bettenhausen
City Attorney
Reviewed and approved:
JoWihLWbert
Director of Development Services
Reviewed and approved:
Damien R. Arrula
City Administrator/Executive Director
Attachment:
1. Successor Agency Board Resolution RSA -2022-03 — Approving the Termination of the Owner Participation Agreement