That the City Council:

A. Authorize the City Manager to submit an offer to the Successor Agency to the Redevelopment Agency of the City of La Habra (Successor Agency) for the purchase of a 2.8-acre parcel owned by the Agency in La Habra, commonly known as a portion of the La Habra Marketplace Parking Lot, APN 018-381-64 (Property), in the amount of $60,375 which includes the purchase price of $57,500, plus broker fees of $2,875;

 

B. Authorize the City Manager to execute all documents necessary for the transfer of the Property from the Successor Agency to the City of La Habra (City);

C.  Approve an appropriation of $60,375 from the City's land acquisition fund for the purchase and transfer of the Property to the City; and,

D. APPROVE AND ADOPT RESOLUTION NO. ___ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING THE PURCHASE OF THE 2.8 ACRE PARCEL IN LA HABRA, COMMONLY KNOWN AS A PORTION OF THE LA HABRA MARKETPLACE PARKING LOT, APN 018-381-64 AND DETERMINING THAT THE PURCHASE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

On October 17, 2023, GM Properties, Inc. (Broker) listed a 2.8-acre parcel in La Habra commonly known as a portion of the La Habra Marketplace Parking Lot, APN 018-381-64 (Property) for sale on behalf of the Successor Agency to the La Habra Redevelopment Agency (SA). Grant Deed Record No. 90-340988, recorded on June 27, 1990, restricts the use of the Property “solely for a surface level public parking lot and no other use shall be allowed thereon.” On November 20, 2023, the SA requested staff contact the City of La Habra (City) to determine if the City had any interest in purchasing the Property.
 
On December 4, 2023, the City Council met in Closed Session and discussed the possibility of purchasing the property from the SA and determined that acquiring the property would be a benefit to the community for several reasons. The City could ensure that the Property would continue to be used as a surface level public parking lot, which contributes toward the parking spaces required for the La Habra Marketplace to meet parking requirements per the La Habra Municipal Code. In addition, ownership of the Property would allow the City to continue its occasional use of the Property for overflow parking during community or special events and as a staging area for the City’s annual 5K Run. The City requested staff make an offer to the SA to purchase the property for $57,500 (Attachment 2).  In addition to the purchase price of the property, the City will be required to pay a brokerage fee of $2,875. If approved by City Council, the total transaction cost for the purchase of the property will be $60,375.

In lieu of opening an escrow, the City is proposing to transfer title through the execution and recordation of a quitclaim deed. If approved by City Council and accepted by the SA, the City will transfer funds to the SA and then the quitclaim will be executed and recorded. Staff estimates that the process to execute and record the quitclaim deed and transfer funds to the SA should take no longer than two weeks, once the County Oversight Board reviews and approves the purchase and transfer of the property to the City. (Attachment 3).

The project was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) because the project does not pose a significant effect on the environment. The acquisition of the property is exempt from the review under CEQA because the purchase of the property will not change its continued use as a surface parking lot and, therefore, will not have a significant impact on the environment.

The total City cost for the purchase of the property is $60,375. The proposed purchase offer for the property is $57,500, plus an additional $2,875 to cover the cost of the broker fees.  Staff in the City's Finance Department have confirmed that there are sufficient unencumbered funds available in the City's General Fund property acquisition reserve for these costs. If the SA accepts and approves the sale of the property to the City and then confirms that the sale has been approved by the Oversight Board, the Finance Department will complete all necessary fund transfers within two weeks. Finance Department staff will transfer the funds from the City to the SA for the purchase of the property, and the SA will remit those funds, as required by state law, to the Orange County Auditor-Controller Redevelopment Property Tax Trust Fund.