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HomeMy WebLinkAboutStaff Report 3.D 7/21/2014DATE: July 21, 2014 Agenda Item #3.D TO: Honorable Mayor andMembers of the City Council through City Manager FROM: Dan St'Cf 4-E�--Director, Public Works & Utilities Larry Zimmer, P.E. — Manager, Capital Projects Division SUBJECT: Second Reading of Ordinance Authorizing City Manager to Complete All Necessary Transactions for the Purchase of 1335 Industrial Avenue (AP# 007- 412-036) RECOMMENDATION It is recommended that the City Council adopt the Ordinance authorizing City Manager to complete all necessary transactions for the purchase of the property located at 1335 Industrial Avenue (AP# 007-412-036) owned by Gateway Financial Inc., (AKA Coyne), for the amount of $370,000. The Council approved the ordinance by a vote of 7-0. On July 7, the Council approved the first reading of the Ordinance. The recommended action provides for second reading and adoption of the ordinance. The staff report for the first reading of this item at the July 7, 2014 Council meeting is provided in attachment 2 for further background information. FINANCIAL IMPACTS The property was appraised for $370,000; the appraisal was approved by the State Department of General Services as required by the grant Funding Agreement. All funds associated with the acquisition and escrow expenses will be borne by the grant from The Natural Resources Agency, and the pending SCAPOSD grant. Based on the current appraisal available funding is sufficient to purchase the subject parcel as part of the Denman Reach Phase 3 project, CIP C500208. ATTACHMENTS 1. Ordinance authorizing City Manager to complete all necessary transactions for the purchase of the Gateway Financial Inc. property, 1335 Industrial Avenue (AP# 007-412- 036) 2. Staff Report of First Reading from July 7, 2014 City Council Meeting Agenda Review: City Attorney Finance Director City Manager Attachment 1 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING PURCHASE AND SALE AGREEMENT, BETWEEN GATEWAY FINANCIAL, INCORPORATED, LOCATED AT 1335 INDUSTRIAL AVENUE (AP# 007-412-036), AND THE CITY OF PETALUMA REGARDING REAL PROPERTY COMMONLY KNOWN AS 1335 INDUSTRIAL AVENUE, (APN 007-412-036) PURSUANT TO DIRECTION FROM CITY COUNCIL REGARDING THE PURSUIT OF GRANT FUNDS AS SET FORTH IN RESOLUTION 2008-198 N.C.S. ADOPTED OCTOBER 20, 2008. WHEREAS, Section 46 of the Charter of the City of Petaluma requires that actions for the acquisition, sale, or lease of real property be taken by Ordinance; and, WHEREAS, PURSUANT TO Resolution 2008-198 N.C.S., the City of Petaluma (City) submitted applications to the California River Parkways Grant Program (Program) of the California Natural Resources Agency, funded by Proposition 84, for grant funds to be used for the acquisition of certain property commonly known as 1335 Industrial Avenue, County of Sonoma Assessor's Parcel No. 007-412-036 (the Property); and, WHEREAS, the State Natural Resources Agency approved funding in the amount of $850,000 for land acquisition and awarded the City a subsequent grant of an additional $165,262; and, WHEREAS, the Sonoma County Agricultural Preservation and Open Space District has a pending application in the amount of $50,000 for land acquisition and will, when approved, reimburse the City; and, WHEREAS, the City has negotiated a purchase and sale agreement between the City and Gateway Financial Inc., 1335 Industrial Avenue (AP# 007-412-036), owners of the property, in the amount of $370,000, a copy of which is attached as Exhibit A and incorporated herein by reference; and, WHEREAS, this action was found in compliance with the California Environmental Quality Act (CEQA) pursuant to Title 14, Chapter 3 of the California Code of Regulations (CEQA Guidelines), through the completion and filing of a Notice of Determination on March 1, 2012, for the acquisition portion of this project. 2 NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PETALUMA AS FOLLOWS: Section 1: The City Council approves the purchase and sale agreement between the City of Petaluma and Gateway Financial Inc., 1335 Industrial Avenue (AP# 007-412-036), in the amount of $370,000, a copy of which is attached as Exhibit A and incorporated herein as reference. Section 2: The City Manager is authorized and directed to execute the Agreement and all other documents reasonably necessary to complete the purchase and sale, according to the terms of the Agreement. Section 3: If any section, subsection, sentence, clause, phrase or work of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this Ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 4: This Ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 5: The City Clerk is hereby directed to publish or post this Ordnance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. INTRODUCED and ORDERED posted/published this day of 2014. ADOPTED this day of 2014 by the following vote: Ayes: Noes: Abstain Absent Attachment 2 DATE: July 7, 2014 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, Director of Public Works & Utilities SUBJECT: Introduce Ordinance Authorizing City Manager to Complete All Necessary Transactions for the Purchase of 1335 Industrial Avenue (AP# 007-412-036) Owned by the Gateway Financial, Inc., Pursuant to Direction from City Council Regarding the Pursuit of Grant Funds as Set Forth in Resolution 2008-198 N.C.S. Adopted October 20, 2008. RECOMMENDATION It is recommended that the City Council introduce the attached Ordinance authorizing City Manager to complete all necessary transactions for the purchase of the property located at 1335 Industrial Avenue (A -P# 007-412-036) owned by Gateway Financial Inc., (AKA Coyne), for the amount of $370,000, pursuant to direction from City Council regarding the pursuit of grant funds as set forth in Resolution 2008-198 N.C.S. adopted October 20, 2008 for the Denman Reach Phase 3 Project. BACKGROUND On October 20, 2008, the City Council adopted Resolution 2008-198 N.C.S. authorizing the submittal of a grant application for the acquisition of land and implementation of the Denman Reach Phase 3 project. Staff applied for a $850,000 grant for land acquisition in 2008 that was awarded by the Department of Natural Resources (DNR) in 2011. The grant was not enough to purchase all three parcels identified for the project. The City purchased on the first of the three parcels, the Richards/Gilson 5 -acre parcel in 2013. The Council, at the time, directed staff to pursue additional funds to purchase the subject property. Owners of the third property, the Nelsons, have agreed to execute a temporary construction easement and a permanent trail easement. This acquisition and the easements will provide the necessary land area along the river to construct the project and to fulfill, the goal of reducing flood depths in the vicinity and providing trail access along the Denman Reach length of the River (see Attachment 2). Staff completed the appraisal on July 8, 2013 for the subject parcel, but only received State approval on June 13, 2014. A conditional offer has been made and accepted by the owners for 4 the acquisition. Once Council authorization is received, all paperwork will be submitted to the State for authorization of funds to be deposited into escrow. The urgency of the matter is to open on or before July 8, 2014 to avoid having to prepare an update to the appraisal to meet County Open Space requirements. County Open Space is providing up to $50,000 to augment the DNR grant to provide sufficient funding to cover the existing appraised value of $370,000. Design of the proposed project is underway and utilizes the three properties, including the subject properties, and easements to meet the project goals. Environmental review has been completed. An interagency meeting was conducted last month to solicit early input from the permitting agencies. In the next step, staff will outreach to interested community members and groups, neighboring property and business owners, and regulatory agencies to receive input. Design is expected to be completed this summer. FINANCIAL IMPACTS The City was awarded a grant in the amount of $850,000, augmented by supplemental funds of $165,262 to purchase the properties necessary to implement the Denman Reach Phase 3 flood reduction and riparian restoration project. The City also has been approved for a grant from the Sonoma County Agricultural Preservation and Open Space District (SCAPOSD) in the amount of $50,000. All funds associated with the acquisition and escrow expenses will be home by the grant from The Natural Resources Agency, California River Parkways Grant Program funded by Proposition 84 and the SCAPOSD grant. Based on the current appraisal available funding are sufficient to purchase the subject parcel.