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RRA - Item 2 - Sale Of Surplus Redevelopment Agency Property (Egley And New Ave)ROSEMEAD REDEVELOPMENT AGENCY 8838 VALLEY BLVD., ROSEMEAD, CA 91770 • (818) 288-6671 • Telecopier 8183079218 TO: HONORABLE CHAIRMAN AND MEMBERS ROSEMEAD REDEVELOPMENT AGENCY FROM: FRANK G. TRIPEPI, EXECUTIVE DIRECTOR DATE: JANUARY 4, 2000 RE: SALE OF SURPLUS REDEVELOPMENT AGENCY PROPERTY (EGLEY & NEW AVENUES) In accordance with Government Code Section 54220 et se q., the Rosemead Redevelopment Agency may dispose of surplus land that is no longer deemed to be necessary for agency use by offering for sale to other public agencies, including any public school district within whose jurisdiction the surplus land is located. Garvey School District approached the Agency and offered to acquire surplus property located at the comer of Egley and New Avenues (Assessor's Parcel Number 5285-005-913). Subsequently, at the October 12, 1999, regular meeting of the Rosemead Redevelopment Agency, the sale was authorized. The Executive Director was instructed to hire an appraiser (to establish fair market value of the subject property) and negotiate the terms of the sale with the Garvey School District before returning to the Agency for final action. The appraiser has completed his review and established the fair market value as 530,500. A copy of the appraisal was provided the Garvey School District for their consideration (an abstract is attached). The District has taken formal action to purchase the property at the established appraised value (see attached correspondence). JAN 2 05 2000 ITEM No. a - RECOMMENDATION: It is recommended that the Redevelopment Agency (1) receive and file the appraisal establishing fair market value of subject property as $30,500; (2) reaffirm that subject property is no longer required for agency purposes and is surplus property; (3) approve sale of property to Garvey School District for fair market value of $30,500; and (4) authorize the Executive Director to execute documents on behalf of the Agency. JPP4-!1.03 10:20 FROM:BUSINESS OFFICE 818-572-4871 TO:818 307 9218 e N3 GARVEY SCHOOL DISTRICT 2730 North Del Mar Avenue, Rosemead, CA 91770 (626) 307-3404 FAX (626) 572-4871 Rolland M. Bocete, Assistant Superintendent, Business Services December 20,1999 Mr. Frank Tripepi City Manager City of Rosemead 8838 East Valley Boulevard Rosemead, CA 91770 Subject: Purchase of Property 2642 New Avenue, Rosemead, CA Dear Mr. Tripepi: PAGE: 02 BOARD OF EDUCATION LDrmu Gonzalez Eerleen Green David Lou John Nunez John T. Tran SUPERINTENDENT H. Alet Yueem, Ed,D. Please be advised that at the meeting of the Garvey School District Board of Education held December 6, 1999, the Board authorized administration to purchase the property at 2642 New Avenue, Rosemead, for $30,500. At this time, we plan to use neither an attorney nor a real estate broker for this transaction. Please let me know. exactly what you will need from us to effectively transfer title to the district. The Superintendent or I will sign all necessary papers to consummate the transaction. Thank you for your assistance. Very truly yours, Rolland M. Bocete Assistant Superintendent, Business Services RMB:nt Equal Opportunity Employer - Non-Discrimination on Basis of Race, Color, Ancestry, Religious Creed, Sex, Handicap, Age APPRAISAL REPORT 2642 NEW AVENUE ROSEMEAD, CALIFORNIA SOUTHEAST CORNER WITH EGLEY AVENUE ROSEMEAD REDEVELOPMENT AGENCY Prepared by: Himes and Himes, Inc. William L. Himes, SRA Date of value: November 16, 1999 REAL ESTATE APPRAISERS 750 TERRADO PLAZA • SUITE 212 • COVINA • CALIFORNIA 91723 JAMES R. HIMES, MAI GLORIA MIMES, SRA WILLIAM L. MIMES, SRA November 22, 1999 File No. 2243 Rosemead Redevelopment Agency 8838 East Valley Boulevard Rosemead, California 91770 Attn: Don Wagner, Assistant City Manager Re: Appraisal Services 2642 New Avenue, Rosemead Southeast Corner of New Avenue and Egley Avenue APN: 5285-005-913 Dear Mr. Wagner: TELEPHONE (626) 3310091 PAX (626) 332.1321 EMAIL: HIMCl9CARTMLINR.NCT At your request we have prepared an appraisal for the above captioned property. The purpose of the appraisal is to provide an estimate of market value for the fee simple interest in real property as of November 16, 1999, being the effective date of value for this report. The actual date of report preparation is November 22, 1999, as indicated above. It is our understanding the function of the report is to assist the client in making a business decision which may include selling the above captioned property. A summary report format consistent with USPAP Standards Rule 2-2(b) and Appraisal Institute standards has been used. The client and intended user of this report is the Rosemead Redevelopment Agency and any consultants the client deems to be helpful in pursuing their intended use of this report. It is our understanding the report will not be used as part of a Federally funded transaction. The opinions reported herein rely upon a physical inspection of the subject property and an investigation of environing factors which influence value. Based upon the data and analysis contained herein it is our opinion that a reasonable estimate of "as is" market value for the subject property would be: THIRTY THOUSAND FIVE HUNDRED (530,500) DOLLARS I 1 Rosemead Redevelopment Agency November 22, 1999 Page -2- The opinion is cash equivalent and assumes the site to be. free of any form of contamination. No visible signs of contamination were noted during the property inspection. Your attention is directed to the certification pages and to the contents of the appraisal report. Sincerely, William L. Himes, SRA Cert. AG026674 WLH:dp SUMMARY OF SALIENT FACTS AND CONCLUSIONS PROPERTY ADDRESS 2642 New Avenue, Rosemead, California. Southeast corner with Egley Avenue. PROPERTY TYPE Residential. INTENDED USER Rosemead Redevelopment Agency REPORT FORMAT Summary appraisal format in accordance with USPAP Standards Rule 2-2(b). INTEREST APPRAISED Fee simple. LAND AREA 4,375 Square feet. ZONING R-3, Medium Multiple Residential. CENSUS TRACT NUMBER 4824.01 THOMAS BROS. MAP REF. 636-D2 IMPROVEMENTS Vacant land. HIGHEST AND BEST USE Joinder with adjacent property to create a usable site. REPORT DATE November 22, 1999 REPORT EFFECTIVE DATE November 16, 1999 "AS IS" MARKET VALUE $30,500 REASONABLE EXPOSURE TIME Six months. I I F 9 F A 0 a F I I I 0 H I U I I I. i i 7 I Easterly at subject property from New Avenue. South west at subject property from Egley Avenue. Los Angeles, CA, 1998-99 - 5285-005-002, Sheet: 1 of 1 A ~s V ~ NEW AVE. a m y ~ 30 /9.7 30 N Jp w N I A I 4 Z I r ~ a IU lO : { o O W I~ .'0 ro V G 30 23.75 ¢G m u m 2 J Z /ra75 69.875 69 B75 0 O YS i Yb o Q _ ~'7~ 69. B_75_ -L 6B (p q y ~ A I ® a v i x i2s.7s DEQ FINE o O$ I p O I e S I /23,7.5 I R Q3 o I I I ' ~J b I I ~u= I D , a3 of I n A 46 m I N e z5 z sln o a 193.7-f ~J LI NDY AVE. c~ SENT BY WALLIN KRESS REISMAN : 1- 6- 0 :10 55AM (310) 450-0506 818 307 9218:# 2/ 6 Article 8 Surplus Land [Title 5, Local Agencies-Division 2, Cities, Counties, and Other Agencles--Part 1, Powers and Duties Common to Cities, Counties, and Other Agencies--Chapter 5, Property--Articla B, Surplus Land; Article added by Stats 1988 ch 621 §1 and heading amended by Stats 1982 ch 1442 §1.] § 54220. The Legislature reaffirms its declaration that housing is of vital statewide importance to the health, safety, and welfare of the residents of this state and that provision of a decent home and a suitable living environment for every Californian Is a priority of the highest order. The Legislature further declares that there is a shortage of sites available for housing for persons and families of low and moderate income and that surplus government land, prior to disposition, should be made available for that purpose. The Legislature reaffirms its belief that there Is an identifiable deficiency in the amount of land available for recreational purposes and that surplus land, prior to disposition, should be made available for park and recreation purposes or for open-space purposes. This article shall not apply to surplus residential property as defined in Section 54236. Added Stats 1968 ch 621 §1; Amended Stats 1973 ch 1038 §2; Stats 1979 ch 942 §t; Stats 1982 ch 1442 §1.5. § 54221. (a) As used In this article, the term "local agency" means every city, whether organized under class. echarter, mpowered to acquire ire city and and hold real propeirtyict, Including school districts of any nd or general law or mpowere (b) As used in this article, the term "surplus land" means land owned by any agency of the state, or any local agency, that is determined to be no longer necessary for the agency's use, except property being held by the agency for the purpose of exchange. (c) As used in this article, the term "open-space purposes" means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources. (d) As used In this article, the term "persons and families of low or moderate income" means the same as provided under Section 50093[Deering's] of the Health and Safety Code. (e) As used in this article, the term "exempt surplus land" means either of the following (1) Surplus land which is transferred pursuant to Section 25539.4. (2) Surplus land which is (A) less than 5,000 square feet in area, (B) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet In area, whichever is less, or (C) has no record access and is less than 10,000 square feet in area; and is not contiguous to land owned by a state or local agency which Is used for park, recreational, open-space, or low- and moderate-income housing purposes and is not located within an enterprise zone pursuant to Section 7073 nor a designated program area as defined in Section 7082. if the surplus land is not sold a t onus Codes, Rules, BAJI and CALM Copyright 1999 Matthew Bender & Co., Inc SENT BY WALLIN KRESS REISMAN : 1- 6- 0 ;10 55AM (310) 950-0506- 818 307 9218:1~ 3/ 6 to an owner of contiguous land, it is not considered exempt surplus land and is subject to the provisions of this article. (0 Notwithstanding subdivision (e), the following properties are not considered exempt surplus land and are subject to the provisions of this article: (1) Lands within the coastal zone. (2) Lands within 1,000 yards of a historical unit of the State Parks System. 2) Lands within 1,000 yards of any property that has been listed on, or determined by e State Office of Historic Preservation to be eligible for, the National Register of Historic Places. (4) Lands within the Lake Tahoe region as defined In Section 66905.5. Added Stats 1968 ch 621 41; Amended Stats 1973 ch 1038 §3; Stats 1974 ch 1037 §1; Stats 1979 ch 942 §2; State 1982 ch 1442 §2. Amended Stats 1988 ch 964 sec 1. Amended Stats 1989 ch 208 sac 1. § 54222. Any agency of the state and any local agency disposing of surplus land shall, prior to disposing of that property, send a written offer to sell or lease the property as follows: (a) A written offer to sell or lease for the purpose of developing low- and moderate-income housing shall be sent to any local public entity as defined in Section 50079[Deering's] of the Health and Safety Code, within whose jurisdiction the surplus land Is located. Housing sponsors, as defined by Section 50074[0eering's] of the Health and Safety Code, shall, upon written request, be sent a written offer to sell or lease surplus land for the purpose of developing low- and moderate-Income housing. All notices shall be sent by first-class mall and shell include the location and a description of the property. With respect to any offer to purchase or lease pursuant to this subdivision, priority shall be given to development of the land to provide affordable housing for lower Income elderly or disabled persons or households, and other lower income households. (b) A written offer to sell or lease for park and recreational purposes or open-space purposes shall be sent: (1) To any park or recreation department of any city within which the land may be situated. (2) To any park or recreation department of the county within which the land is situated. (3) To any regional park authority having jurisdiction within the area in which the land is situated. (4) To the State Resources Agency or any agency which may succeed to its powers. C 1 omia Codes, Rules, andCAUIC 2 Copyright 1999 Matthew Bender 8 Co.. Inc. SENT BY: WALLIN KRESS REISMAN ; 1- 6- 0 ;10:56AM (310) 450-0506 818 307 9218:41 4/ 6 (c) A written offer to sell or lease land suitable for school facilities construction or use by a school district for open-space purposes shall be sent to any school district in whose jurlsdiction the land is located. (d) A written offer to sell or lease for enterprise zone purposes any surplus property in an area designated as an enterprise zone pursuant to Section 7073 shall be sent to the nonprofit neighborhood enterprise association corporation in that zone. (e) A written offer to sell or lease any surplus property in a designated program area, as defined In subdivision (i) of Section 7062, shall be sent to the program area agent. (f) The entity or association desiring to purchase or lease the surplus land for low- and moderate-income housing purposes, or for park or recreation purposes, or for open-space purposes, or for public school purposes, or for enterprise zone purposes, shall notify in writing the disposing agency of its intent to purchase or lease the land within 60 days after receipt of the agency's notification of Intent to sell the land. Added Stats 1968 ch 62111. Amended Stets 1973 ch 1038 §4; Stats 1974 ch 1339 §t; State 1979 ch 942 §3; Stalls 1982 ch 1442 §3; State 1984 ch 44 §2, effective March 20,1984, ch 45 §1, effective March 20, 1984, ch 1303 §1, operative until January 1, 1991; Stats 1985 ch 83 §18, effective June 19, 1985, operative until January 1, 1991; Stats 1984 ch 45 §1, operative January 1, 1991. Amended State 1988 ch 475 §1, operative until January 1, 1991, §2, operative January 1, 1991. ch 1350 1.5, operative until January 1, 1991, §2.5, operative January 1, 1991; State 1992 ch 404 §1 (SB 1724). § 54222.3. Section 54222 shall not apply to the disposal of exempt surplus land as defined in Section 54221 by an agency of the state or any local agency. Added Stats 1988 ch 964 sec 2. § 54223. After the disposing agency has received notice from the entity desiring to purchase or lease the land, the disposing agency and the entity shall enter into good faith negotiations to determine a mutually satisfactory sales price or lease terms, If the price or terms cannot be agreed upon after a good faith negotiation period of not less than 60 days, the lend may be disposed of without further regard to this article. Added Stats 1968 ch 621 §1; Amended State 1973 ch 1038 §5; Stats 1979 ch 942 §4; State 1982 ch 1442 §4 § 54224. Nothing in this article shall preclude a local agency, housing authority, or redevelopment agency which purchases land from a disposing agency pursuant to this article from reconveying the land to a nonprofit or for-profil housing developer for development of low- and moderate-income housing as authorized under Califomia Codes, Rules, BAH and CT~LJIC 3 Copyright 1999 Matthew Bender a Co., Inc. SENT BY: WALLIN KRESS REISMAN ; 1- 6- 0 ;10 56AM ; (310) 450-0506 818 307 9218:# 5/ 6 other provisions of law. Added Stats 1982 ch 1442 §e. § 54225. Any public agency selling surplus land.to an entity described In Section 54222 for park or recreation purposes, for open-space purposes, for school purposes, or for low- and moderate- income housing purposes may provide for a payment period of up to 20 years in any contract of sale or sale by trust deed of such land. Added Stats 1973-74 ch 1038 §8; Amended Stats 1979 ch 942 §5; State 1984 ch 1303 §2. § 54226. Nothing in this article shall be interpreted to limit the power of any agency of the state or any local agency to sell or lease surplus land at fair market value or at less than fair market value, and nothing in this article shall be interpreted to empower any agency of the state or any local agency to sell or lease surplus land at less than fair market value. No provision of this article shall be applied when it conflicts with any other provision of statutory law. Added Stats 1982 ch 1442 §8. § 54227. In the event that the state or any local agency disposing of surplus land receives offers for the purchase or lease of such land from more than one of the entities to which notice and an opportunity to purchase or lease shall be given pursuant to this article, the state or local agency shall give first priority to the entity which agrees to use the site for housing for persons and families of low or moderate income, except that first priority shall be given to an entity which agrees to use the site for ark or recreational purposes if the land being offered is already being used and will continue to be used for park or recreational purposes, or if the land Is designated for park and recreational use in the local general plan and will be developed for that purpose. § 54230.5. The failure by the state or a local agency to comply with the provisions of this article shall not invalidate the transfer or conveyance of real property to a purchaser or encumbrancer for value. Added State 1974 ch 1339 §5. § 54231. Lend acquired by a local agency for highway purposes through the expenditure of funds allocated pursuant to Chapter 3[Deering's] (commencing with Section 2100) of Division 3 of the Streets and Highways Code maybe retainedd by the local agency, or transferred to another local agency, for public park and recreational purposes if the land Is no longer necessary for highway purposes, and if the local agency having jurisdiction over such land determines that the use of such land for public park and a t orma Codes, Rules, B I an UTC Copydght 1990 Matthew Bander & Co., Inc. SENT BY W.ALLIN KRESS REISMAN : 1- 6- 0 .10 56AM recreational purposes Is the highest and best use of the land. Added State 1975 ch 852 §7. § 54232. (310) 450-0506, 818 307 9218:" 6/ 6 Land retained or transferred for public park and recreational purposes pursuant to Section 54231 shall be developed within 10 years, and shall be used for at least 25 years, following such retention or transfer for such purposes in accordance with the general plan for the city or county in which the land is located. Otherwise, the land shall be sold by the local agency, and the funds received from the sale shall be used for highway purposes. If the land originally had been transferred for such purposes, it shall revert to the original acquiring local agency for such sale. Added Stats 1975 ch 852 §2. a t omta Codes, Rules, BAJI and CALJ1C 5 Copyright 1999 Matthew Bender b Ca, Inc. .