Following dissolution of all California redevelopment agencies on February 1, 2012 and in furtherance of winding down the affairs of the former Garden Grove Agency for Community Development (Former Agency), the Successor Agency has undertaken steps to dispose of the real property assets of the Former Agency through implementation of theLRPMP approved by the State of California, Department of Finance (DOF).  The LRPMP governs the procedural and legal process for the Successor Agency to dispose of the Former Agency’s real property assets all subject to Parts 1.8 and 1.85 of Division 24 of the Health and Safety Code (Dissolution Law). This agenda report focuses on the proposed sale and disposition of real property located at 12311 Thackery Drive, Assessor Parcel No. 231-471-23 and listed as Property Number 55 in the LRPMP (herein, Property).  The Property is vacant and unimproved; the shape and size of the parcel is rectangular and approximately 7200 square feet (.165 ac), and is located west of Harbor Boulevard and north of Twintree Avenue, as depicted on Exhibit B. On July 12, 2022, the Successor Agency directed staff to commence the disposition process for sale of the Property at fair market value as determined by an independent appraiser.  On July 19, 2022, the Oversight Board directed staff to commence the disposition process at the appraised value. An independent appraisal was prepared by a professional appraiser, which concluded the Fair Market Value of the Property is $460,000.00.  The appraisal report is attached as Exhibit C.

Pursuant to statutory requirements, staff caused publication of a Notice of Joint Public Hearing about the proposed sale of the Property.  At this September 13, 2022, joint meeting, the Mayor and Successor Agency Chair will conduct the public hearing and receive testimony from the public whether in favor, opposed or neutral to the proposed sale and disposition.  Staff’s recommended action is to approve the sale and disposition of the Property in implementation of the proposed Disposition and Development Agreement between the City and Newage Garden Grove II LLC (Developer) in connection with development of a new resort hotel project. Staff has returned the action item to the Successor Agency for consideration and action on a Resolution (Exhibit A) to approve the sale of the Property to the Developer.  Following consideration by the Successor Agency, the sale and disposition will require review and approval by the Oversight Board and then the State Department of Finance.

There is no cost to sell the Property to Developer.  If the sale is approved and proceeds, the Developer will pay the purchase price of $460,000 to acquire the Property, which will result in the appropriation of the sale proceeds to the County for distribution as property tax to the taxing entities pursuant to the Dissolution Law and the LRPMP.

It is recommended that Successor Agency and City Council:

• Conduct a public hearing jointly with the City Council;

• Adopt the attached Resolution approving the sale and disposition of the Property by the Successor Agency to the Developer; and

• The Successor Agency authorize the Director and Secretary to execute and attest the Resolution, Grant Deed, and related implementing documents necessary to effectuate the sale of the Property, including making minor modifications on behalf of the Successor Agency.

By:  Paul Guerrero, Real Property Agent