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AGENDA ITEM NO. 2.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 11/19/2024 Originating Department: City Attorney |
City Manager:
Department Head:
SUBJECT:
RESOLUTION NO. 8499
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, APPROVING A PURCHASE AND SALE AGREEMENT WITH HANLEY FAMILY TRUST AS SELLERS FOR THE REAL PROPERTIES AT 3136, 3138, 3152 & 3208 ROSECRANS AVENUE & 14312-14314 CHADRON AVENUE AND MAKING A FINDING OF EXEMPTION IN COMPLIANCE WITH CEQA IN CONNECTION THEREWITH.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, APPROVING A PURCHASE AND SALE AGREEMENT WITH HANLEY FAMILY TRUST AS SELLERS FOR THE REAL PROPERTIES AT 3136, 3138, 3152 & 3208 ROSECRANS AVENUE & 14312-14314 CHADRON AVENUE AND MAKING A FINDING OF EXEMPTION IN COMPLIANCE WITH CEQA IN CONNECTION THEREWITH.
RECOMMENDED MOTION:
Staff recommends that the City Council approve or disapprove Resolution No. 8499 and the attached Purchase and Sale Agreement.
DISCUSSION:
The properties at 3136, 3138, 3152 & 3208 Rosecrans Avenue & 14312-14314 Chadron Avenue (APN: 4071-020-001, 4071-020-002, 4071-020-003, 4071-020-004, 4071-020-005, 4071-013-025) (”Properties”), are located on the west and east corners of the southern side of the intersection at Rosecrans Avenue and Chadron Avenue. The said Properties became available for purchase. The City Council directed the City’s Negotiator to seek a fair price and terms for the purchase for the City’s future use.
The City does not have a specific plan for use of the Property but contemplates its future use for public purpose, including, but not limited to the development of low-income housing and first homebuyer’s program, when such need arises. The Properties are lots with several old sheet metal structures with no value.
Staff believes, and recommends that the City Council find that acquisition of the Property is exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the acquisition of the Property, with no immediate change in use contemplated, may have a significant effect on the environment. Further, because there is no specific development or redevelopment plans at this time, any CEQA review would require undue speculation and be of no value. In addition, prior to any decisions regarding future use and/or redevelopment of the site, the City will undertake the appropriate environmental reviews as required by CEQA.
The purchase and sale agreement provides that the closing is conditioned upon, among other things, the Planning Commission’s determination under Government Code 65402 that the acquisition is consistent with the General Plan.
The City does not have a specific plan for use of the Property but contemplates its future use for public purpose, including, but not limited to the development of low-income housing and first homebuyer’s program, when such need arises. The Properties are lots with several old sheet metal structures with no value.
Staff believes, and recommends that the City Council find that acquisition of the Property is exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the acquisition of the Property, with no immediate change in use contemplated, may have a significant effect on the environment. Further, because there is no specific development or redevelopment plans at this time, any CEQA review would require undue speculation and be of no value. In addition, prior to any decisions regarding future use and/or redevelopment of the site, the City will undertake the appropriate environmental reviews as required by CEQA.
The purchase and sale agreement provides that the closing is conditioned upon, among other things, the Planning Commission’s determination under Government Code 65402 that the acquisition is consistent with the General Plan.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
N/A
FISCAL IMPACT:
The purchase price for the Properties is $6,770,000, approximately the current fair market value per Jacinto A. Munoz of Cogito Realty Partners, Real Estate Appraiser and Consultant, and will be paid from the City’s General Fund.
The City as the buyer would also need to pay costs of due diligence inspections/reports including a Phase I environmental report, 50% of the escrow fees, and the costs of any survey and extended coverage title insurance that might be advisable (such determination to be made by staff and City Attorney based on the review of the initial title report).
In the event that issues related to site conditions or title, the City would have the option to terminate the agreement, with the return of its cash deposit.
The City as the buyer would also need to pay costs of due diligence inspections/reports including a Phase I environmental report, 50% of the escrow fees, and the costs of any survey and extended coverage title insurance that might be advisable (such determination to be made by staff and City Attorney based on the review of the initial title report).
In the event that issues related to site conditions or title, the City would have the option to terminate the agreement, with the return of its cash deposit.
NOTICING PROCEDURE:
24 hours posted notice pursuant to the Ralph M. Brown Act for a special meeting of the City Council.