TO:
VIA:
FROM:
DATE:
Placentia Cit Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
APRIL 4, 2023
AGENDA REPORT
SUBJECT: ACQUISITION OF REAL PROPERTY CONSISTING OF A SINGLE PARCEL LOCATED AT 207 WEST CHAPMAN AVENUE (APN 339-033-21) OWNED BY NEDRA M. CROCKER
FISCAL
IMPACT: EXPENSES: $916,500 PURCHASE OF 207 W. CHAPMAN AVENUE FUNDING: $916,500 HOUSING SUCCESSOR AGENCY (530000-6720) SUMMARY:
The property located at 207 West Chapman Avenue (APN: 339-033-21) (the "Property") is a privately -owned property located on the northerly side of Chapman Avenue, beginning 50 feet westerly of Main Street in the City of Placentia. The Property backs to a public alley and is located immediately south of Kraemer Memorial Park. The subject property contains 11,000 gross square feet of land area. The Property is within the C1 (Neighborhood Commercial) zone district of the City and served as a 1,698 square foot commercial building.
The Property suffered extensive fire damage on November 16, 2022. While the property owner indicated that portions of the building may be salvageable, such as the concrete foundation and various wood beams (rafters, studs, flooring, etc.), buyers/developers in the subject market would likely consider the building a total Toss, and would choose to demolish the existing building and redevelop the site with a new "ground -up" development. As such, the Property was appraised on January 30, 2023 as an effectively vacant land parcel, and the existing building represents a detriment to the underlying land value, due to costs associated with clearing the site (demolition, hauling, dump fees, etc.). After considering the various factors which influence value, the fair market value of the fee simple interest of the Property is $900,000. The Property Owner, Nedra M. Croker, has agreed to sell the property to the City for this amount. On March 21, 2023, the City Council met in closed session to discuss the terms of this purchase and authorized Staff to proceed with the purchase of this property and present the required resolutions and purchase and sale agreement for its consideration at a regularly scheduled meeting of the City Council.
The Chapman Corridor Specific Plan, which is currently underway, would encompass this Property. While the Chapman Corridor Specific Plan has not been finalized by the City Council, preliminary zoning criteria would likely permit mixed use commercial/residential development, at a density of up to 65 dwelling units per acre, for the area including the Property. As a result, a high-density affordable housing development would be considered for this Property.
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April 4, 2023
City Council Agenda
April 4, 2023
This action approves a Purchase and Sale Agreement between the City and Nedra M. Crocker for the purchase amount and half of the subsequent Broker, Escrow and Title fees associated with the land transaction for a total amount of $916,500.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Promote Community and Economic Development, under Objective #3.10, which is the Implementation of Housing Element Strategies.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution No. R-2023-17, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2022-23 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures; and
2. Adopt Resolution No. R-2023-18, A resolution of the City Council of the City of Placentia, California, approving a Purchase and Sale Agreement with Nedra M. Crocker for real property located at 207 West Chapman Avenue and authorizing the sale of property in connection therein and, finding that the acquisition of said property is not a project for the purposes of CEQA as defined by the California Public Resources Code Sections 21065 and 21080 and14 CCR Sections15378(a) and 15004(b)(2)(A); and
3. Authorize the City Administrator to execute the necessary documents, including a certificate of acceptance as required by Government Code Section 27281 in a form approved by the City Attorney.
DISCUSSION:
On March 21, 2023, the City Council met in closed session to discuss the terms of this purchase and authorized Staff to proceed with the purchase of this property and present the required resolutions and purchase and sale agreement for its consideration at a regularly scheduled meeting of the City Council. This proposed action approves a Purchase and Sale Agreement between the City and Nedra M. Crocker for the purchase amount and half of the subsequent Broker, Escrow and Title fees associated with the land transaction for a total amount of $916,500 and authorizes the City Administrator to execute the necessary documents including a certificate of acceptance.
Staff recommends that the City Council find that the acquisition of the subject property is exempt from further CEQA review in that this action does not constitute a project for the purposes of CEQA as defined by the California Public Resources Code Sections 21065 and 21080.
Additionally, the item before the Council tonight is not a "project" subject to CEQA under 14 CCR 15378(a) because approval of the Agreement has no potential to result in a direct or reasonably foreseeable indirect physical change in the environment because the purchase will result only in
City Council Agenda
April 4, 2023
a change of property ownership, with no reasonably foreseeable changes to the Property or the environment in the foreseeable future for the following reasons:
(1) All potential uses of the Property are preliminary and not binding commitments; and (2) The City Council has not adopted a resolution or otherwise formally selected the site for any specific use; and
(3) The City Council has not appropriated or otherwise authorized any expenditures toward developing or using the property for any purpose; and (4) Even though it may be reasonably foreseeable that the city may someday approve plans to use the property for affordable housing, nothing in the Agreement commits the City to a definite course of action since there are no development plans in existence.
(5) Any proposed future development of the Property would be subject to legally required CEQA review by the lead agency.
Additionally, 14 CCR 15004(b)(2)(A) provides that the City may "designate a preferred site for CEQA review and may enter into land acquisition agreements when the agency has conditioned the agency's future use of the site on CEQA compliance." This finding will also be considered by the Planning Commission on April 11, 2023. The proposed acquisition does not result in a direct or indirect change in the environment because the ultimate use and/or development of the Property has not been identified. The development of the site, if any, remains unspecified, uncertain, and undefined at this time. If and when future development is proposed for the site, by either the City or another entity, the City would review such development consistent with CEQA.
FISCAL IMPACT:
The total purchase price for the property is $900,000. The Purchase and Sale Agreement specifies that the buyer and seller would split the costs associated with the Broker, Escrow and Title fees in half. As a result, the associated land transaction for this Property for the City is a total amount of $916,500. Funding for this transaction would be paid out the Affordable Housing Fund.
Submitted by:
Reviewed and approved:
V
Jeal ^ Ortega Jennifer Lampman
t. t • the City Administrator/ Director of Finance
Economic Development Manager
City Council Agenda
April 4, 2023
Reviewed and approved: Review -d :nd approved:
Jose M. Lambert
Damien R. Arru
Director of Development Services City Administrator
Attachments:
1. Resolution No. 2023-17 - Budget Resolution
2. Resolution No. 2023-18 - Authorize the Sale
3. Purchase and Sale Agreement
4. Certificate of Acceptance
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