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CC - Item 3A - Public Hearing approval of teh sale of owned property 9734 AbileneTO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL AND HONORABLE CHAIRMAN AND MEMBERS ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION FROM: BILL`CROWE, CITY MANAGER DATE: APRIL 22, 2003 RE: JOINT PUBLIC HEARING OF THE CITY COUNCIL AND ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION TO CONSIDER THE APPROVAL OF THE SALE OF COMMISSION OWNED SURPLUS PROPERTY LOCATED AT 9734 ABILENE (APN: 8577-009-901) Attached, please find a copy of the redevelopment disclosure report prepared by Commission Counsel summarizing the acquisition and disposition costs associated with the sale of 9734 Abilene. The proposed purchaser of the subject property is Jiang's Valley LLC and the sales price is $215,000. The purchaser has agreed, as a condition subsequent, to demolish the existing residential improvements on the property. It is the intent of the purchaser to combine the subject property with other commercial parcels located to the south. The Agency received fourteen offers for the subject property and the proposed transaction is at the highest purchase price offered - matched by one other offer. The Agency is responsible for the payment of a real estate commission to Coldwell Banker from the proceeds of the sale., Also, attached is a copy of the Commission staff report from the March 25, 2003 meeting. RECOMMENDATION It is recommended that the Commission adopt Resolution No. 2003-07 and the City Council adopt Resolution No. 2003-13 providing for the sale of 9734 Abilene to Jiang's Valley LLC. COUNCIL AGENDA COMMISSION AGENDA APR 2 2 2003 ITEM No. 71-1 APR 2 2 2003 ITEM No. = L~ SUMMARY OF RESIDENTIAL PURCHASE AGREEMENT WITH JAINGS VALLEY LLC (Health & Safety Code Section 33433) BACKGROUND The Rosemead Community Development Commission ("Commission") proposes to sell property owned by it at 9734 Abilene Street to Jaings Valley LLC ("Purchaser"). The property is zoned for commercial use, but is improved with a pre-existing nonconforming residence. The property is located outside the Project Area, but adjacent to the Project Area boundaries. It was acquired when a commercial development for that portion of the Project Area was under consideration. The Commission subsequently determined the property to be surplus to its needs and listed the property for sale with a broker. The Agency has received fourteen offers, the highest ones, including the offer from the Purchaser, being at $215,000. SUMMARY OF-TRANSACTION The sale will be for $215,000 cash at closing. The Purchaser is to demolish the nonconforming residence on the property. The Purchaser is the owner of adjacent property in the Redevelopment Project Area, and intends to eventually combine and develop the properties. However, the sales agreement does not require any development of the property. COST TO COMMISSIONNALUE OF PROPERTY The property was acquired by the Commission for $283,200, inclusive of relocation benefits paid to the occupant. The property has been exposed to the market through a multiple listing service, and the sales price of $215,000.00 constitutes the highest offer received either for commercial development or for continuation of the residential use. A broker's commission of $10,750 will be payable from the proceeds of sale. ELIMINATION OF BLIGHT This sale will eliminate a pre-existing nonconforming use adjacent to the Project Area and will facilitate development of those parcels currently owned by the Purchaser within the Project Area. While the Implementation Plan does not call for any use for the property, the ultimate development of the Purchaser's holdings will be consistent with the Implementation Plan. RESOLUTION NO. 2003-07 A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION APPROVING A RESIDENTIAL PURCHASE AGREEMENT WITH JIANGS VALLEY LLC FOR SALE OF 9734 ABILENE STREET The Rosemead Community Development Commission finds, determines and resolves as follows: Section 1. The Commission has listed 9734 Abilene for sale and secured offers for sale of the property. The Commission has determined that the $215,000.00 offer from Jiangs Valley LLC is at the highest price offered for the property, and that the purchaser, s plan to combine the property with adjacent property owned by it within the Redevelopment Project Area, will be of benefit to the Project Area. Section 2. The Commission has reviewed the Residential Purchase . Agreement offer and has conducted a public hearing thereon and has determined that the agreement will assist in the elimination of blight within the project area and that the consideration to be charged is not less than the fair market value. Section 3. The Commission hereby approves the agreement and authorizes the Chairman to execute the same. The Executive Director is authorized to execute any documents necessary to effectuate the agreement. Section 4. The Chairman shall sign and the Secretary shall certify to the passage and adoption of this Resolution. PASSED, APPROVED and ADOPTED this 22nd day of APRIL , 2003. Chairman, Rosemead Community Development Commission ATTEST: Secretary, Rosemead Community Development Commission-