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HomeMy Public PortalAbout2016.135 (06-21-16)RESOLUTION NO. 2016.135 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD CONCERNING THE SITE LOCATED AT ATLANTIC AND AGNES OPPOSITE HAM PARK SUBJECT OF DISPOSITION AND DEVELOPMENT AGREEMENT, DIRECTING STAFF TO ENTER INTO AN AGREEMENT WITH THE STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION FOR THE DISPOSITION OF THE SALE PROCEEDS FROM THE DEVELOPER UNDER A CURRENT DDA SO THAT FIFTY PERCENT (50 %) OF THE SALE PROCEEDS ARE ESCROWED TO SUPPORT CAPITAL IMPROVEMENT PROJECTS TO CITY PARKS SUBJECT TO APPROVAL BY THE STATE DEPARTMENT OF PARKS AND RECREATION, WITH THE REMAINING FIFTY PERCENT (50 %) TO BE USED BY THE CITY AS IT DETERMINES MOST APPROPRIATE WHEREAS, in 2005 and 2006, the City of Lynwood acquired multiple properties located on the west side of Atlantic Avenue between Agnes Avenue and Lavinia Avenue; and WHEREAS, the site is comprised of ten (10) parcels and is approximately 38,350 square feet in area (parcel map attached). The subject land was formerly zoned as open space (OS) development and Yvonne Burke Ham Park (Park) runs parallel on the east side of Atlantic Avenue. The 10 parcels are as follows: 6186 - 001 -900, 6186 -001- 901, 6186 - 001 - 902,6186- 001 - 903, 6186- 001 - 904, 6186 - 001 - 905,6186- 001- 906,6186- 001 -907, 6186- 001 -908, and 6186 - 001 -909 (all jointly referred to as the "Property "); and WHEREAS, the property was originally acquired for development as part of the new Yvonne Burke -John D. Ham Park. Further assessment of this proposed development site, located across from the main park and its facilities, resulted in a decision not to build the additional park space and amenities at the site, limiting the park development to the east side of Atlantic Boulevard; and WHEREAS, the Property has been vacant, undeveloped land and is not being used for the intended purpose. The Property can be used to support the need for additional senior housing in Lynwood; and WHEREAS a qualified senior housing developer has shown interest in pursuing a development on the Property; and WHEREAS, staff has engaged in discussions with the developer and has negotiated a development agreement which has been executed by both parties; and WHEREAS, in an effort to preserve open space use for the Property the California Department of Parks and Recreation recorded on or about October 10, 2012 certain Deed Restrictions as Instrument No. 20121529238; and Originally assigned No. 2016.136 WHEREAS, subject to certain conditions about the use of the proceeds from the sale of the Property to the Developer under the DDA, Parks and Recreation is prepared to release and extinguish the Deed Restrictions; and WHEREAS, the Deed Restrictions and any and all other claims by the State of California Department of Parks and Recreation will be released to permit the sale to the Developer under the DDA free of any claim, subject to escrow's remittance of one -half of the sale proceeds to a second escrow for the support of capital improvements to the City of Lynwood parks, subject to approval by Parks and Recreation. The remaining one half of proceeds from the sale shall be remitted to the City of Lynwood for use in any manner it deems appropriate. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: Section 1. That the City Council of the City of Lynwood authorizes the Mayor to execute an agreement for the disposition of sale proceeds received from the Developer under the terms of the DDA in the following manner: one -half of the proceeds into a jointly controlled escrow between the City and the State Department of Parks and Recreation for use in capital projects for City parks, and the remaining one -half of the proceeds to the City for use in the manner it deems most appropriate. Section 2. This Resolution shall become effective immediately upon its adoption. Section 3. The City Clerk shall certify as to the adoption of this City Council Resolution. a i= PASSED, APPROVED and ADOPTED this 21st day of June 2016. Edwin Hernandez, Mayor City of Lynwood ATTEST: Maria Quinone City Clerk APPROVED AS TO FORM: l� J. Arnoldo Beltr6n City Manager David A. Garcia City Attorney Originally assigned No. 2016.136 STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 21St day of June, 2016, and passed by the following vote: AYES: COUNCIL MEMBERS ALATORRE, SANTILLAN -BEAS, SOLACHE, CASTRO AND MAYOR HERNANDEZ NOES: NONE ABSENT: NONE ABSTAIN: NONE aria Quinonez, City Cle STATE OF CALIFORNIA ) ) SS. COUNTY OF LOS ANGELES ) I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2016.135 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 21s' day of June, 2016. Maria Quinonez, ity CI k t: Originally assigned No. 2016.136 Final Agreement for release of deed restriction. June 21, 2016 AGREEMENT FOR RELEASE OF DEED RESTRICTIONS AS BETWEEN THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION AND THE CITY OF LYNWOOD This Agreement (hereinafter the "Agreement ") for the release of deed restrictions is made this 21st day of June, 2016, by and between the California Department of Parks and Recreation (hereinafter "DPR "), a public entity, and the City of Lynwood (hereinafter "City"), a municipal corporation. DPR and the City will sometimes be individually referred to as "part -y" or collectively as the "Parties." RECITALS The City is the owner of that certain real property (the "Property") located on Atlantic Avenue bordered by Agnes Avenue and Lavinia Avenue, with parcel street ' addresses of 12001 through 12035 Atlantic Avenue. This Property is approximately .90 acres and is shown and described in Exhibit A, attached hereto and incorporated by reference. On June 23, 2011, the City applied for a $5 million competitive grant award under the 2006 Parks Bond Act Statewide Park Development and Community Revitalization grant program. The City was successful in receiving the grant award, based on the competitiveness of its application and proposed grant project. For its grant project (hereinafter "Project "), the City proposed development of the Property and development of Yvonne Burke -John D. Ham Park (hereinafter "Ham Park "), located at 11832 Atlantic Avenue, Lynwood, CA. The City's proposed development of the Property included a children's playground, walking /jogging path, and landscaping. The City's proposed development of Ham Park included the construction of an 8,645 sq. ft. community center, the construction of a 1,320 sq. ft. maintenance building, solar panels, landscaping, and exercise stations. On August 22, 2012, the City and DPR entered into a grant contract for the improvements to Ham Park and the Property. On October 10, 2012, a deed restriction was recorded on both properties. On July 1, 2014, the City requested a change in the grant scope due to increased construction costs. DPR approved the request, which allowed the City to remove the proposed maintenance building and exercise stations at Ham Park. The improvements proposed for the Property, were also removed from the grant scope. 1 Final Agreement for release of deed restriction. June 21, 2016 The new scope of the project is "construction of an approximately 8,680 sq. ft. community center with hardscape, landscape, and irrigation." On or about December 22, 2015, the City and Pacific Development Consultants, Inc. (the "Developer") entered into a Disposition and Development agreement (the "DDA ") for the development of the property into affordable senior housing units. The DDA provides for the payment of fair market value for the Property by the Developer to the City. DPR is responsible for, among other things, the preservation of open space, the improvement of recreational opportunities For Californians; and Development of the Property under the terms of the DDA will result in the Property not being available as open space. After discussions between the City and DPR, the parties concur that the DDA for development of the Property across the.street from Ham Park can proceed upon the City's fulfillment of certain conditions that result in the further enhancement of Ham Park and benefit City residents and park users. TERMS For good and valuable consideration, the Parties agree to the following: 1. DPR agrees to release its deed restrictions in the Property recorded and any other known and unknown claims of interest in the Property. The deed restriction was previously recorded as Instrument No. 20121529238 on October 10, 2012. The deed restrictions on Ham Park will remain unchanged. 2. The City will submit this Agreement as part of the joint escrow instructions pertaining to the sale of the Property. The City agrees to instruct the escrow company to hold one -half of the proceeds from the sale as stated in Paragraph 3 of this Agreement. 3. One -half of the proceeds (hereinafter "Funds ") from the sale of the Property at fair market value will be placed in a new, joint escrow account (hereinafter "New Escrow Account. ") The escrow company shall disburse the Funds directly to the New Escrow Account, agreed upon by the Parties. At a later date, the Parties will submit joint escrow instructions for the disbursement of these Funds. The Funds in the New Escrow Account will be used for capital improvements to Yvonne Burke - John D Ham Park located at 11832 Atlantic Avenue. The scope of these capital improvements projects, and the costs incurred as a result of these projects, will be approved by DPR. Any Funds remaining in the New 2 Final Agreement for release of deed restriction. June 21, 2016 AGREEMENT FOR RELEASE OF DEED RESTRICTIONS AS BETWEEN THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION AND THE CITY OF LYNWOOD This Agreement (hereinafter the "Agreement') for the release of deed restrictions is made this 21st day of June, 2016, by and between the California Department of Parks and Recreation (hereinafter "DPR"), a public entity, and the City of Lynwood (hereinafter "City"), a municipal corporation. DPR and the City will sometimes be individually referred to as "party" or collectively as the "Parties." RECITALS The City is the owner of that certain real property (the "Property") located on Atlantic Avenue bordered by Agnes Avenue and Lavinia Avenue, with parcel street addresses of 12001 through 12035 Atlantic Avenue. This Property is approximately .90 acres and is shown and described in Exhibit A, attached hereto and incorporated by reference. On June 23, 2011, the City applied for a $5 million competitive grant award under the 2006 Parks Bond Act Statewide Park Development and Community Revitalization grant program. The City was successful in receiving the grant award, based on the competitiveness of its application and proposed grant project For its grant project (hereinafter "Project'j, the City proposed development of the Property and development of Yvonne Burke -John D. Ham Park (hereinafter "Ham Park "), located at 11832 Atlantic Avenue, Lynwood, CA. The City's proposed development of the Property included a children's playground, walking /jogging path, and landscaping. The City's proposed development of Ham Park included the construction of an 8,645 sq. ft, community center, the construction of a 1,320 sq. ft. maintenance building, solar panels, landscaping, and exercise stations. On August 22, 2012, the City and DPR entered into a grant contract for the improvements to Ham Park and the Property. On October 10, 2012, a deed restriction was recorded on both properties. On July 1, 2014, the City requested a change in the grant scope due to increased construction costs. DPR approved the request, which allowed the City to remove the proposed maintenance building and exercise stations at Ham Park. The improvements proposed for the Property, were also removed from the grant scope. Final Agreement for release of deed restriction. June 21, 2016 Escrow Account as of June 30, 2019 will be disbursed to the State in accordance with the grant program requirements. 4. DPR agrees that the remaining one -half of the sale proceeds will be released to the City with no restrictions of any type. California Department of Parks and Recreation By: J4A Lacher Chief, Office of Grants and Local Services Date: Suh e a ( , a ° 16 The City of Lynwood Edwin Hernandez, Mayor Mai?a•QOWnez :` J. Arnoldo BeltrAn City rlerJc� City Manager APPROVED AST • FORM- 34 ct-fj U David A. Garcia, City Attorney EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCEL B THAT PORTION OF LAND IN THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AS SHOWN IN TRACT MAP 8242, BOOK 115 PAGES 55 -56, OF MAPS IN THE OFFICE OF THE LOS ANGELES COUNTY RECORDER DESCRIBED AS FOLLOWS: LOT 1- LOT 15 INCLUSIVE OF ALL LOTS. APN NOS.: 6168 -001 -900, 6168 -001 -901, 6168-001 -902, 6168. 001 -903, 6168.OQ1 -904, 6168 -001 -905, 6168 -0Ui -906 ' 6168-001-907,6268-001-908,6168=001-909 " J' Final Agreement for release of deed restriction. June 21, 2016 Escrow Account as of June 30, 2019 will be disbursed to the State in accordance with the grant program requirements. 4. DPR agrees that the remaining one -half of the sale proceeds will be released to the City with no restrictions of any type. California Department of Parks and Recreation _M0 AF By:.hl G%. qC� JdaA Lacher Chief, Office of Grants and Local Services Date: 7uyle-91, oZoJ6 The City of Lynwood Ev" C. /��? Edwin Hernandez, Mayor AT1 EST: Maria Quafon'ez City Clerk APPROVED AST ORMM-: UA David A. Garcia, City Attorney J. Arnoldo BeltrSn City Manager