Item No. 2.
| MEETING DATE: 03/01/2021 |
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| TO: | HONORABLE MAYOR/CHAIR AND COUNCILMEMBERS/DIRECTORS |
| FROM: | JIM SADRO, CITY MANAGER/EXECUTIVE DIRECTOR By: Miranda Cole-Corona, Housing and Economic Dev Manager |
| SUBJECT: | CONSIDER APPROVAL OF 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 209 NORTH EUCLID STREET AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL RELATED DOCUMENTS
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RECOMMENDATION:
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 209 North Euclid Street for $230,000; and
B. Approve the appropriation of $232,000 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 209 NORTH EUCLID STREET 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 209 NORTH EUCLID STREET 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.
DISCUSSION:
The City of La Habra (City) desires to purchase the property located at 209 North Euclid Street (Property) from the La Habra Housing Authority (Authority). This property is located adjacent to the Child Development Center. In October 2009, the Authority authorized the execution of a Purchase and Sales Agreement to purchase the Property as a potential site for future affordable housing. On October 5, 2009, the Authority also authorized a lease allowing the City to use the Property for parking for its Child Development Center.
The subject property is approximately 6,576 square feet, currently improved as a parking lot for the Child Development facility and has an easement that allows for access to a privately owned residential parcel to the rear. It would be impractical to place housing on the property due to the easement and if the property were developed with a small affordable housing unit, it would eliminate parking needed by the City's Child Development facility. Due to the space limitations of the parcel, staff recommends that the City purchase the property from the Authority for use as permanent parking for the Child Development Center. Proceeds from the transaction would then be accumulated and used by the Authority to support larger potential affordable housing opportunities in other locations in the City in the future.
The City and Authority recognize benefits provided to the community by the sale and transference of the property, namely the continued use of the Property as parking for a Child Development facility, as well as the use of the proceeds for affordable housing projects in the community. Staff has determined that 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 subject property is approximately 6,576 square feet, currently improved as a parking lot for the Child Development facility and has an easement that allows for access to a privately owned residential parcel to the rear. It would be impractical to place housing on the property due to the easement and if the property were developed with a small affordable housing unit, it would eliminate parking needed by the City's Child Development facility. Due to the space limitations of the parcel, staff recommends that the City purchase the property from the Authority for use as permanent parking for the Child Development Center. Proceeds from the transaction would then be accumulated and used by the Authority to support larger potential affordable housing opportunities in other locations in the City in the future.
The City and Authority recognize benefits provided to the community by the sale and transference of the property, namely the continued use of the Property as parking for a Child Development facility, as well as the use of the proceeds for affordable housing projects in the community. Staff has determined that 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.
FISCAL IMPACT/SOURCE OF FUNDING:
The cost for the City to purchase the parcel from the Authority is $230,000. Escrow and title fees for the City are approximately $1,800 and escrow fees or the Authority are approximately $800. There are available General Fund resources available to purchase the property and cover the City's portion of escrow and title fees. The Authority sufficient budgeted funds to pay for the $800 needed to cover its portion of escrow fees. 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.
GENERAL PLAN RELEVANCE:
LU 2.5 Places Supporting the Quality of Life
Attachments
- 1. HA Resolution
- 2. City Resolution
- 3. Purchase and Sales Agreement
- 4. Exhibit A to Purchase and Sales Agreement
- 5. Exhibit B to Purchase and Sales Agreement