| | | | | | | | Agenda Item - 3.a.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | City Manager/Executive Director
| Dept.: | Community & Economic Development
| | Subject: | Approval of resolution approving disposition agreement for real property located at 12291 Thackery Drive, Garden Grove, California. (Joint Action Item with the Housing Authority) | Date: | 9/13/2022 |
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| | | | | | | | OBJECTIVE
For the City Council in a joint action with the Housing Authority to consider approving that certain agreement with escrow instructions for disposition of real property (“Disposition Agreement”) between the City and Housing Authority; authorizing the Executive Director/City Manager to carry out the Disposition Agreement; and making certain other findings in connection therewith regarding 12291 Thackery Drive. |
| | | | | | | | BACKGROUND
The real property that is located at 12291 Thackery Drive, Garden Grove, California 92840, Assessor Parcel No. 231-471-22 was purchased by the Garden Grove Agency for Community Development in 2007. The size of the parcel is approximately 7,200 square feet, and is vacant and unimproved. The Property is located in the R-1-7 (Single-Family Residential) zone district; however, the underlying land use designation in the City’s General Plan is International West Mixed Use (IW).
As of February 1, 2012, the Garden Grove Agency for Community Development (“Former Agency”) was dissolved pursuant to State Law and the Housing Authority became the successor to the rights, powers, assets, liabilities, duties and obligations associated with the housing functions of the Former Agency. Pursuant to Health & Safety Code Section 34176(a)(2), the Housing Authority, as housing successor to the Former Agency, prepared a Housing Asset Transfer Schedule (“HAT”) and submitted the HAT to the State of California, Department of Finance (“DOF”) for review and approval. On August 30, 2012, the DOF approved the HAT with certain modifications that are unrelated to the subject Property. The approved HAT includes the subject Property. |
| | | | | | | | DISCUSSION
The City of Garden Grove and New Age Garden Grove, LLC, (“Developer”) are parties to that certain Second Amended and Restated Exclusive Negotiation Agreement (ENA) dated as of April 24, 2018, which agreement was amended by certain amendments that extended the term of the ENA through December 31, 2022. The representatives of the parties to the ENA have been negotiating the terms and conditions of a certain proposed Disposition and Development Agreement (“DDA”) for an economic development hotel project, which DDA will be presented to the City’s City Council at a duly noticed public hearing of even date with the public hearing that is the subject of this Disposition Agreement or at a later date. The subject of the DDA affects certain parcels of real property that are described and defined collectively in the DDA as the “Site.” One parcel that is a part of the Site is the subject Property. Under the Disposition Agreement herein, the Housing Authority desires and intends to convey the Property to the City at its fair market value, and the City desires and intends to convey the Property to the Developer.
A Summary Report was prepared pursuant to California Health and Safety Code Sections 33433 and 34312b (Attached). The Summary Report provides:
- The proposed disposition of the Property by the Housing Authority to the City will be at the appraised value of the Property in the amount of $460,000. The appraisal is attached.
- The public purpose for the disposition is for economic development reuse by the City pursuant to the DDA.
- Under the DDA, the City will sell the larger, full Site, which includes the subject Property, to the Developer for construction and operation of a new first-class hotel development with ancillary uses.
- The Former Agency expended and incurred $588,954 in costs related to acquisition and ownership of the Property.
- The Housing Authority will deposit the proceeds net costs of sale of the Property into the LMIHAF for future development of affordable housing.
In conformance with CEQA and the CEQA Guidelines, on August 23, 2022, the City Council adopted Resolution No. 9768-22 approving a Mitigated Negative Declaration and Mitigation Monitoring Program, which evaluates and analyses the anticipated physical environmental impacts of the Developer’s hotel project and provides for specified mitigation measures. The Mitigated Negative Declaration and Mitigation Monitoring Program is available for review on the City's website at https://ggcity.org/planning/evironmental-documents. A complete copy of the Mitigated Negative Declaration and Mitigation Monitoring Program is on file and can be viewed in the Planning and Building Department of the City located at 11222 Acacia Pkwy, Garden Grove, CA 92840. |
| | | | | | | | FINANCIAL IMPACT
Minimal impacts are anticipated. The City’s payment will be reimbursed by the Developer through the proposed DDA. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council and Housing Authority:
- Adopt the Resolution approving the Disposition Agreement between the Housing Authority and City; and,
- Authorize the City Manager/Executive Director to execute the Disposition Agreement, Grant Deed, pertinent documents needed to effectuate the Disposition Agreement and make minor modifications as needed, on behalf of the Housing Authority and City.
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | City Council Resolution | 9/2/2022 | Resolution | 9-13-22_Resolution_of_City_Council_Approving_Disposition_of_12291_Thackery_to_City_(2).pdf | | Housing Authority Resolution | 9/2/2022 | Resolution | 9-13-22_Resolution_of_Housing_Authority_Approving_Disposition_of_12291_Thackery_to_City_(4).pdf | | Summary Report | 9/2/2022 | Backup Material | 9-13-22_Summary_Report_12291_Thackey_Drive_333433_and_34312_(B).pdf | | Disposition Agreement | 9/2/2022 | Agreement | 9-13-22_Disposition_Agreement-City_and_Housing_Authority-12291_Thackery_(1).pdf | | Appraisal | 9/6/2022 | Backup Material | GG_Thackery_12291_Appraisal_Report.pdf | | Public Hearing Notice | 9/6/2022 | Notice | 9-13-22_Affidavit__for_HAT_without_costs.pdf |
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