That the City Council and the City of La Habra Housing Authority:
A.  Approve a Purchase and Sales Agreement between the La Habra Housing Authority and the City of La Habra for the sale of real property located at 200 West Greenwood Avenue for $773,000; and

B.  Approve the appropriation of $777,000 from General Fund land acquisition reserves to fund the Purchase and Sales Agreement between the La Habra Housing Authority and the City of La Habra; and

C. Authorize the City Manager to sign all related documents for the purchase; and

D.  APPROVE AND ADOPT RESOLUTION NO. ___ ENTITLED: A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF LA HABRA APPROVING THE SALE OF 200 WEST GREENWOOD AVENUE TO THE CITY OF LA HABRA FOR THE COMMON BENEFIT; and

E.  APPROVE AND ADOPT RESOLUTION NO. ___ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING THE PURCHASE OF 200 WEST GREENWOOD AVENUE FROM THE LA HABRA HOUSING AUTHORITY.

The project was reviewed pursuant to California Environmental Quality Act (CEQA) and determined to be Categorically Exempt pursuant to Section 1506(b)(3): “Review of Exemption” of the California Environmental Quality Act Guidelines because the purchase of the property will have no significant effect on the environment.  Further environmental review will be conducted before the start of construction.

The City of La Habra desires to purchase the property located at 200 West Greenwood Avenue from the La Habra Housing Authority.  The property is approximately 30,938 square feet.  The property was deeded to the City, at no cost, in April 2014 by the Women’s Improvement Club of La Habra. In June 2016 the City authorized the sale of the property to the La Habra Housing Authority (Authority).  The intent of the Authority at that time was to find an affordable housing developer and develop affordable housing on the parcel. 
The Authority had conversations with several housing developers, including California State University Fullerton (Cal State Fullerton). Cal State Fullerton was exploring the potential of building affordable housing for university faculty at the location; however, the number of units needed to make the project financially viable was more than the number of units that could reasonably be developed at the location. To date, the Authority has been unable to come to an agreement with an affordable housing developer to create housing at the property.

On June 17, 2019, City Council authorized staff to submit four applications for park grant funds through the Statewide Park Development and Community Revitalization Program.  Of the four applications, the City was awarded one grant in the amount of $861,400 for the development of a neighborhood park at this location.  In order to develop the park, the City is required to purchase the property from the Authority; however the grant funds cannot be used to purchase the property. 

As part of the grant application submittal, the City hosted public workshops to solicit ideas from the community for future development of the property.  The community was supportive of developing usable open space at the location.  The community also indicated a lack of desire to see additional housing developed on the site.

The City and Authority recognize benefits provided to the community by the sale and transference of the property, specifically for the purpose of providing additional open space for the community.  The use of the property is for the common benefit of the City in compliance with Government Code Section 37350 et seq.

In accordance with Health and Safety Code Section 65402, the City of La Habra Planning Commission considered the purchase and sale of the property and determined the purchase and sale of the property is consistent with the General Plan and Zoning Code.

The cost for the City to purchase the parcel from the Authority is $773,000.  Escrow and title fees for the City are approximately $4,000 and escrow fees for the Authority are approximately $2,000.  Since the Statewide Park Development and Community Revitalization Program grant funds can only be used for design and construction of the park, General Funds will be necessary to purchase the property and cover the City's portion of escrow and title fees.  There are sufficient General Fund property acquisition reserves, as well as dedicated Park Development funds, to fund this proposed purchase. The Authority has the $2,000 needed to cover escrow fees available in its Professional Services Budget.  The sale proceeds can be accumulated by the Authority, along with other funds in its reserves, to use for future potential larger scale affordable housing projects in the community. 

LU 2.5  Places Supporting the Quality of Life
LU 8.3  Parks and Open Space Amenities