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Agenda Item 3.

Oversight Board Meeting

Meeting Date:	10/12/2017
FROM:	David Crabtree

Subject:

Sale of Successor Agency Owned Property Located at 323 N. Brea Blvd.

RECOMMENDATION

Adopt resolution authorizing the sale of real property to the recommended buyer.

BACKGROUND

With the elimination of redevelopment in California in 2012, successor agencies to the former redevelopment agencies were directed by the State to prepare a Long Range Property Management Plan (LRPMP) to govern the disposition and use of the former Agency's non-housing properties. Brea's LRPMP, approved by the State Department of Finance (DOF) in December 2015, included selling three undeveloped lots in the Downtown Brea area. The Successor Agency and Oversight Board approved the Purchase and Sale agreements for two of the properties owned by the Successor Agency and the transactions were completed.

The third property, located at 323 N. Brea Blvd is a 19,044 square foot undeveloped property zoned mixed use I. Previous offers were received and a buyer was selected. However, the selected buyer changed their mind the day escrow was to open. When the City Council, in their role as Successor Agency, reviewed the remaining purchase proposals, they decided the City of Brea acting as Housing Successor should purchase this property for a future affordable housing project. There is a housing crisis in California and Brea is losing affordable units as covenants expire on some of the older affordable projects done by the former Redevelopment Agency in its early days.

The Successor Agency has authorized the sale contingent upon approval by the Oversight Board. The Board is asked to adopt a resolution approving the execution of that agreement.

FISCAL IMPACT

The Housing Successor will purchase the property for the full asking price of $800,000, which was determined by the market evaluation performed by brokers Lee and Associates. Per the Long Range Property Management Plan, the sale proceeds after the costs of selling the property will be sent to the County Auditor-Controller for distribution to the taxing entities.

The Oversight Board is asked to adopt a resolution to authorize the sale of property at 323 North Brea Boulevard to the City of Brea acting as Housing Successor. This property was acquired by the former redevelopment agency for redevelopment purposes in the Downtown Brea area. Current State legislation requires that it be sold per the terms approved in the Long Range Property Management Plan and that the sales proceeds be distributed to the various taxing entities, including the City of Brea.

SIGNATURE BLOCK

Respectfully Submitted by: David Crabtree, Community Development Director
Prepared by: Kathie DeRobbio, Economic Development Manager
Concurrence: David Crabtree, Community Development Director

Attachments
Resolution OB 2017-14
Purchase and Sale Agreement
SA Resolution 2017-10