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