CC Resolution 11582RESOLUTION NO. lissz
RESOLUTION OF THE SUCCESSOR AGENCY OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF CAMPBELL APPROVING
ALONG-RANGE PROPERTY MANAGEMENT PLAN PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34191.5
WHEREAS, pursuant to ABx 1 26 enacted in June 2011 (as amended by AB 1484
enacted in June 2012, the "Dissolution Law"), the Redevelopment Agency of the City of
Campbell (the "Dissolved RDA") was dissolved as of February 1, 2012, and the City of
Campbell acting in a separate limited capacity and known as the Successor Agency of the
Redevelopment Agency of the City of Campbell, has elected to serve as the successor agency
(the "Successor Agency") of the Dissolved RDA; and
WHEREAS, pursuant to Health and Safety Code Section 34173(g), as added by the
Dissolution Law, the Successor Agency is a separate legal entity from the City of Campbell (the
"City"); and
WHEREAS, the City Council (the "City Council") of the City serves in a separate
capacity as the governing board of the Successor Agency; and
WHEREAS, the Successor Agency is chazged with paying the enforceable obligations,
disposing of the properties and other assets, and unwinding the affairs of the Dissolved RDA;
and
WHEREAS, an oversight board for the Successor Agency (the "Oversight Board") has
been formed and is functioning in accordance with Health and Safety Code Section 34179; and
WHEREAS, the real property and specified other assets of the Dissolved RDA were
transferred to the ownership and control of the Successor Agency as of February 1, 2012
pursuant to Health and Safety Code Section 34175(b), including the following five sites of real
property (collectively, the "Properties") within the Project Area and subject to the
Redevelopment Plan:
• APN: 305-22-040 thru 042 -The CampbellCommunity Center
• APN: 279-41-060 -The Campbell Historical Museum
• APN: 412-29-008 -Edith Morley Park
• APN: 412-06-076 -The First Street/Orchard City Drive downtown surface
parking lot
• APN: 279-41-062 - A 3,500 squaze foot vacant dirt lot fronting Civic Center
Drive across from the Library; and
WHEREAS, the Properties were attained by the Dissolved RDA with the intended use for
governmental purpose, except that the 3,500 square foot vacant property did not have an
intended purpose; and
WHEREAS, on April 26, 2013, the Successor Agency received a "Finding of
Completion" from the California Department of Finance (the "DOF") pursuant to Health and
1
I03\01\I3ii172.2
Safety Code Section 34179.7, confirming that the Successor Agency had made specified required
payments under the Dissolution Law; and
WHEREAS, pursuant to Health and Safety Code Section 34191 S(b), the Successor
Agency is now entitled to and must prepare and submit along-Range Property Management
Plan (the "PMP") to the Oversight Board and the DOF no later than six months following the
issuance by the DOF of the Finding of Completion; and
WHEREAS, in accordance with Health and Safety Code Section 34191.5, the Successor
Agency has prepared a PMP, a copy of which is on file with the Finance Director; and
WHEREAS, the PMP provides for the disposition of the Properties as follows:
1. With respect to the Campbell Community Center, for retention by the
Successor Agency until specified bond financing requirements have been satisfied, at which time
the site will be conveyed to the City in accordance of the tenns of the financing documents that
constitute an enforceable obligation and for continued use as a public community center;
2. With respect to the Campbell Historical Museum, the Edith Morley Park, and
the First Street/Orchard City Drive parking lot, to the City for continued use of those Properties
to remain as they were intended, for a recognized governmental purpose under the Dissolution
Law (with reference to Health and Safety Code Section 34180(a)); and
3. With respect to APN 279-41-062, the 3,500 square foot vacant property is
proposed for liquidation and sale by the Successor Agency,with the proceeds remitted to the
County Auditor-Controller for distribution to the affected taxing entities consistent with the
Dissolution Law (with reference to Health and Safety Code Section 34191.5(c)(2)(B)); and
WHEREAS, for the following reasons, approval of the PMP is exempt from the
requirements of the California Environmental Quality Act and implementing state and local
guidelines ("CEQA"):
1. With respect to the first four Properties listed above, the PMP proposes a
continuation of the current use, which makes the PMP exempt from the requirements of CEQA
pursuant to State CEQA guidelines Section 15301; and
2. With respect to APN 279-41-062, the intended use by the buyer upon sale by
the Successor Agency is currently unknown, so that, consistent with State CEQA guidelines
Section 15004(b), CEQA analysis is appropriately conducted at a future date when sufficient
meaningful information about the intended use becomes available to enable environmental
assessment; and
WHEREAS, the staff report (the "Staff Report") accompanying this Resolution contains
additional information and analysis upon which the findings and actions set forth in this
Resolution are based.
NOW, THEREFORE, BE IT RESOLVED that the Successor Agency hereby finds that
the above Recitals are true and correct, and together with the Staff Report and other information
2
103V01A1351172.2
provided by the Successor Agency staff and the public, form the basis for the findings and
actions set forth in this Resolution.
BE IT FURTHER RESOLVED that, for the reasons set forth above, the Successor
Agency finds and determines that approval of the PMP is exempt from the requirements of
CEQA, and the Successor Agency Executive Director, or the Executive Director's designee, is
authorized to file the appropriate notice of exemption with respect to the approval of the PMP in
accordance with CEQA.
BE IT FURTHER RESOLVED that the Successor Agency hereby approves the PMP in
the form on file with the Finance Director and attached as Exhibit A.
BE IT FURTHER RESOLVED that the Successor Agency Executive Director, or the
Executive Director's designee, is hereby authorized and directed to submit the PMP to the
Oversight Board and the DOF for approval in accordance with Health and Safety Code Section
34191.5(b).
BE IT FURTHER RESOLVED that, upon approval of the PMP by the Oversight Board
and the DOF, the Successor Agency authorizes and directs the Successor Agency Executive
Director, or the Executive Director's designee, acting on behalf of the Successor Agency, to
dispose and use the Properties and any disposition proceeds in accordance with the PMP and to
take any action and execute any documents as maybe necessary to implement the disposition
and use of the Properties and any disposition proceeds in accordance with the terms approved in
the.PMP and this Resolution.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon
adoption.
ADOPTED July 16, 2013 by the governing board of the Successor Agency of the
Redevelopment Agency of the City of Campbell, a separate legal entity, by the following vote, to
wit:
AYES: .-SuccessorAgency Members:' Kotowski, Cristina, Baker, Waterman, Low
NOES: .Successor Agency Members: None
ABSTAIN: Successor Agency Members: None
ABSENT:
Successor Agency Chair, Evan D. Low
ATTEST:
~^-.-
Successor Agency Secretary,
Anne Bybee
103\01\1351172.2
City of Campbell Successor Agency
Long Range Property Management Plan
(Pursuant to Health and safety Code Section 34191.5)
Introduction
On February 1, 2012 the City of Campbell Redevelopment Agency (the "RDA") was statutorily
dissolved under ABxl 26. On August 11, 2011, the Campbell City Council took the steps to
designate the City of Campbell as the "Successor Agency" to the former RDA pursuant to
section 34173 of the Health and Safety code, and the former RDA assets were transferred to the
trust of the Successor Agency on February 1, 2012.
Pursuant to Health and Safety Code section 34191.5, within six months after receiving a Finding
of Completion from the Department of Finance (the "DOF"), the Successor Agency is required
to submit for approval to its Oversight Board and the DOF a Long Range Property Management
Plan (the "PMP") that addresses the disposition and use of the real property assets of the former
RDA. That Finding of Completion was issued by the DOF to the City of Campbell Successor
Agency on April 26, 2013.
Presented below is the Long Range Property Management Plan (the "PMP) prepared in
compliance with H&S Section 34191.5(c)
Permissible Options for the Disposition of Property under the Long Range Property
Management Plan
Pursuant to H&S Section 34181, Successor Agencies can propose the disposition of property
under four categories.
1. The retention of the property for a government purpose. Those properties that have been
used and were intended for a governmental purpose maybe transferred to those
respective public jurisdictions.
2. Property may be retained by the Successor Agency to fulfill an enforceable obligation.
The property would remain under the ownership of the Successor Agency until such time
as that enforceable obligation is complete and the disposition of the asset can be
addressed.
3. The retention of property by the Successor Agency for future development to fulfill a
specified goal in the Redevelopment Plan.
4. Liquidation of the property with the sale proceeds distributed to the affected taxing
entities.
103\01\1351155.2
Property Disposition Plan
Summary
There are five (5) sites under trust of the City of Campbell Successor Agency listed below. It is
proposed that property one (1) be retained by the Successor Agency in satisfaction of an
enforceable obligation until such time as the enforceable obligation is completed at which time
the asset is to be transferred to the City of Campbell in accordance with the requirements of the
enforceable obligation, and in satisfaction of its intended governmental purpose as a community
center. Sites two (2) through four (4) are to be conveyed to the City of Campbell immediately
upon approval by the Oversight Board and the DOF for their continued public and/or
governmental intended purpose as authorized pursuant to Health and Safety Code Section
341801(a). Property five (5) is to be sold with any proceeds remitted to the County Auditor-
Controller for distribution to the affected taxing entities in accordance with Health and Safety
Code Section 34191.5(c)(2)(B).
1. Campbell Community Center
Disposition Cate¢ory
The Campbell Community Center falls under two disposition categories in that it is the object of
an enforceable obligation that requires its disposition to the City of Campbell at a specified time,
and it is an asset that serves a governmental purpose. This PMP directs that the Community
Center be retained by the Successor Agency until such time that the enforceable obligation is
satisfied at which time the Community Center is to be transferred to the City of Campbell to
comply with a specific requirement of the enforceable obligation, as described below.
103V01A13511552
Property APN: 305-22-040 (Community Center), op~ ~.+~r~
305-22-041 (Field), 305-22-042 (Track) { d
`~ .L , =.
Land Area: 21.51 acres (Community Center), 4.03 acres ~ ~
(Field), 5.20 acres {Track)
Description : Campt~eli Community Center, Corner of N ~`
/~Rf~ 11 n4~~y`
Winchester Boulevard and Campbell Avenue ~ CommunftyDevelopment Department
rear Planning Division
p 900 1.E00
103\Ol\1351155.2
Pronertv Description and Purpose
Property Address:
Assessor Parcel Numbers:
Total Acreage:
General Plan Designation:
Zoning Designation:
Date of Acquisition:
Purpose of Acquisition:
Value at the time of Acquisition:
Estimate of current value:
Lease Revenue:
Environmental:
TOD/Other Development Potential:
1 Campbell Avenue, Campbell, CA 95008
305-22-040 thrn 042
31.74
Open Space
Public Facilities
August 1, 1985
As a Community Center (see discussion below)
$10 million
$34 million (see discussion below)
All revenue required to be applied toward operating costs
(see discussion below)
No environmental history
None beyond current Community Center use
Backeround, Including Purpose of Acquisition and Potential For Development
The Campbell Community Center is approximately 31 acres located at the northwest corner of
Campbell Avenue and Winchester Boulevard. The site consists of 160,000 square feet of
building space which houses administrative offices, meeting rooms, a senior center, community
theatre and rental space. The balance of the property is active and passive open space that
includes outdoor recreation, a skateboard park, athletic fields, track, hand ball and tennis courts,
and a swim center. The facility is intended to serve as the City's focal point for providing
community and civic activities as well as administrative office space for city recreation programs
and senior services.
The Campbell Community Center site was originally developed as Campbell High School in the
early 1930's and served in that capacity until 1980 when due to low enrollment the school was
closed by the Campbell Union High School District. Four of the buildings on the site are locally
designated historical landmarks including the old school auditorium now converted to a
community theater. When the Campbell High School District designated the property surplus,
the City of Campbell placed a measure on the ballot to determine community interest in
purchasing the property for a community center.
After a ballot measure passed in 1984 with an approval rate in excess of 90%, on August 1,
1985, the former high school site was purchased for $10 million under the Naylor Act and has
served as the Campbell Community Center ever since.
Because of its land use designation and intended governmental use as described above, the
Campbell Community Center site does not have any potential for transit-oriented development or
the advancement of planning objectives of the Successor Agency beyond the current Community
Center use.
103\01\1351155.2
Enforceable Oblieation Description and Requirement Regarding Disposition
The Campbell Community Center acquisition and improvement was financed using proceeds
from the issuance of the City of Campbell's 1985 Certificates of Participation which have been
refunded multiple times and is now reflected in the 1997 & 2002 Refunding Certificates of
Participation (in current form, the "COPS"). Under the terms of the Third Amended and
Restated Indebtedness Agreement (the "Indebtedness Agreement") between the former RDA and
the City related to the COPS, the former RDA (and now Successor Agency) pays 41.8% of the
debt service on the COPS. The Indebtedness Agreement is a recognized enforceable obligation
by both the County Auditor-Controller and the State Department of Finance. Unlike most
agreements between the former RDA and the City of Campbell that became ineffective as of the
former RDA's dissolution, the Indebtedness Agreement and the accompanying Lease Agreement
described below have expressly been retained as effective agreements and enforceable
obligations by the Legislature, as recognized by the DOF, pursuant to Health and Safety Code
Section 34171(d)(2).
Under the Fourth Amended and Restated Lease Agreement dated July 1, 2002 (the "Lease
Agreement") entered into in connection with the COPS, and thereby recognized as a continuing
enforceable obligation as detailed above, the Campbell Community Center is leased by the
former RDA (now Successor Agency) to the City for $1 a year. Pursuant to Section 4.6 of the
Lease Agreement, once all COPS payments have been made, the lease under the Lease
Agreement will terminate, at which time all rights, title and interest of the former RDA (now
Successor Agency) in the Community Center shall be transferred to City without further
compensation. This obligation constitutes the enforceable obligation requiring Successor Agency
disposition of the Campbell Community Center to the City of Campbell at the time specified in
the Lease Agreement.
Lease Revenue
The City does rent and sub-lease part of the Community Center to help finance ongoing
maintenance operations. In FY 12/13 approximately $700,000 is anticipated to be collected from
renting meeting rooms, halls and banquet facilities for wedding receptions, corporate meetings,
and community service organizations using short term rental agreements. It is estimated that
another $1.3 million will be collected by the City from leasing roughly 50,000 square feet of
building space to various private educational institutions including private elementary schools
and tutoring groups contracted under standard real estate lease agreements. Under a "Certificate
Regarding Use of Proceeds" entered into in 1991 both the City and the former RDA certify that
the lease revenues generated under the lease agreements for the Campbell Community Center are
to be applied toward off-setting the City's on-going operating and maintenance costs for the
Community Center. Neither the Successor Agency nor the former RDA receives, nor has it ever
received, any lease or rental revenue from the community center.
Estimated Value
The $34 million estimated value of the property is essentially the "book" value assigned by the
City for accounting and reporting purposes for the FY 11/12 fiscal year. The reality is that the
103\01\1351155.2
City's General Plan and Zoning designation for the property as open space is intended to ensure
that the Community Center and its recreational assets be retained as a public recreational amenity
in perpetuity. Additionally, the provisions of the Naylor Act under which the former RDA
purchased the property from the school district place statutory restrictions on converting any of
the open space for private use. Therefore, the true "market value" of the property is something
considerably less than the "book" value or the value one might assign it if it were available for
private development.
PMP Authorized/Directed Disposition Action: Upon approval of this PMP, the Successor
Agency shall retain the Campbell Community Center as the object of an enforceable obligation
(with particular reference to the Lease Agreement) until such time as the COPS payments have
been fully satisfied, at which time the Successor Agency is directed to transfer the Campbell
Community Center to the City of Campbell in accordance with the enforceable obligation set
forth in Section 4.6 of the Lease Agreement, and to enable its continued use as a governmental
purpose site.
2. Edith Morley Park
Disposition Cate~gOLV
Edith Morley Park is a four (4) acre public park that is proposed for transfer to the City of
Campbell, as a site with a continuing governmental purpose, as authorized pursuant to Health
and Safety Code Section 34180(a).
Property Description & Pumose
Assessor Parcel Number:
Parcel Address:
Total Acreage:
General Plan Designation:
Zoning Designation:
Date of Acquisition:
Purpose of Acquisition:
Value at time of acquisition:
Estimate of Current Value:
Lease Revenue:
Environmental:
TOD/Other Development Potential:
103VO1U3511552
412-29-008
None
4 acres
Open Space
Public Facilities
June/1994
Designated for public park as part of larger
industrial development (see discussion below)
$696,000
$1,347,537
None
No environmental history
None beyond current public park use
6
Backeround, Includine Acquisition Puroose, Rental Income, and Other Develonment Potential
Edith Morley Park is a four acre public park developed in 2000 as a part of a commercial
redevelopment project off of McGlincy Lane on the southern border of the City. The former
RDA acquired a 30 acre industrial property in 1994 from the Resolution Trust Corporation, an
institution created by the Federal government after the savings and loan collapse. The park was
developed as a part of a 280,000 square foot research and development business park. The
public park was supposed to be conveyed to the City after completion of the project but it never
occurred. The public park is operated and maintained by the City using City general funds. The
public park includes a passive open space area, a native plant walking path and community
gardens that are provided to the public for growing produce. The public park satisfies a key goal
in the City's Open Space Element of the General Plan providing critical open space on the east
side of the City.
No lease or rental income is generated from the park to either the City or the Successor Agency.
Because of its land use designation and intended governmental use as described above, Edith
Morley Park does not have any potential for transit-oriented development or the advancement of
planning objectives of the Successor Agency beyond the continued current public park use.
103\01\I351155.2
PMP Authorized/Directed Disposition Action. Upon approval of this PMP, the Successor
Agency shall transfer Edith Morley Park to the City of Campbell as a governmental purpose site
without compensation.
Property APN: 412-29-00$ ~'~~ ~'M
Land Area: 3.97 Acres ~`
Description :Edith Morley Park at ~ - o
Campbel! Technology Parkway N ~+
"~. ~~,u,.:,
Feet Community Devebpment Department
0 A00 864 Planning Division
3. Campbell Museum
Disposition Category
The Campbell Museum is a public building operated for over thirty years as a local historical
museum with related parking that is proposed for transfer to the City of Campbell as a continuing
governmental purpose site, as authorized pursuant to Health and Safety Code Section 34180(f).
Property Description & Purpose
Assessor Parcel Number:
Parcel Address:
Total Acreage:
General Plan Designation:
Zoning Designation:
Date of Acquisition:
Purpose of Acquisition:
Value at time of acquisition:
Estimate of Current Value:
Lease Revenue:
Environmental:
279-41-060
51 N. Central
.40 ac.
General Commercial
Central Commercial
unknown
Continued museum operation
unknown
$1,464,359
None
No environmental history
9
103\01\1351155.2
TOD/Other Development Potential: None beyond current museum use
Background Including Acquisition Purpose, Rental Income, and Other Develoament Potential
The Campbell Museum is located at the southwest comer of Civic Center Drive and Central
Avenue across from the Civic Center. The building was initially used as the City's first city hall
and police station in 1952, and later the City's first fire station. It's unclear when the property
was conveyed to the former RDA. Sometime in the 1970's it was abandoned as a fire station and
in 1983 the building became home to the Campbell Historical Museum and has remained so ever
since. The property is 17,410 square feet and consists of the museum building and
approximately 12 related parking spaces located in the downtown core. The building is part of
the City's historic inventory. Anon-profit organization operates the museum.
Neither the City nor the Successor Agency collects lease revenue or rental fees on this property.
Because of its continued intended governmental use as described above, the Campbell Museum
site does not have any potential for transit-oriented development or the advancement of planning
objectives of the Successor Agency beyond the continued current public museum use.
PMP Authorized/Directed DISUOSItIOn Action. Upon approval of this PMP, the Successor
Agency shall transfer the Campbell Museum property to the City of Campbell as a continuing
governmental purpose site without compensation.
10
103\Ol\1351155.2
erty APN: 279-41-060
Area: 17,410 sq. ft.
Museum and Parkin~.Lot, Civic Center
1st Street and Central Avenue
i55
J Feet
314
C~~'' CA At
A
a o
~ ~~ ~ ~.
:, ~~; '~
h y.
N ".<„„ r
Community Development Department
Planning Division
11
103V01A13511552
4. Downtown Surface Parking Lot
Disposition Category
The approximately 6,300 squaze foot paved surface parking lot serves as free public parking for
the downtown in support of a healthy commercial core of businesses, and is proposed for transfer
to the City of Campbell, as a site with a continuing governmental purpose, as authorized
pursuant to Health and Safety Code Section 34180(a).
Property Description and Purpose
Assessor Parcel Number:
Parcel Address:
Total Acreage:
General Plan Designation:
Zoning Designation:
Date of Acquisition:
Purpose of Acquisition:
Value at time of acquisition:
Estimate of current value:
Lease Revenue:
Environmental:
TOD/Other Development Potential
412-06-76
None
6,270 square feet
General Commercial
Central Commercial
circa 1970's
Remnant of larger pazcel acquired for street system
unknown
$349,892
None
No environmental history
None beyond current museum use
12
103\01\1351155.2
Property APN: 412-d6-076 ~ of ~t"'t~ta~
Land Area: 6,272 sq. ft. r
Description :Downtown Surface Parking Lot, Corner of o- n
Orchard City Drive and First Street N
~~~tb a4Cf.v
FB¢t I` I Community Development Department
0 3&5 Ti0 N Planning Division
103\01\1351155.2
Background Including Acquisition Pumose, Rental Income, and Other Development Potential
This paved and striped surface public parking lot is 6,272 square feet and located at the
northwest comer of First Street and Orchard City Drive in the downtown core. The property was
a remnant piece from the property acquisition completed by the City in the 1970's to create the
"loop streets" around the downtown to facilitate traffic circulation. It is unknown when this
property was conveyed to the former RDA. The site contains 12 paved parking stalls. The
parking is free to the public and generates no revenue to either the City or the Successor Agency.
This public parking lot is operated and maintained by the City using City general funds.
The parking lot is necessary in support of public parking for downtown patrons in order to
maintain a competitive and viable core of downtown businesses. Because of its continued
intended governmental use as described above, this site does not have any potential for transit-
oriented development or the advancement of planning objectives of the Successor Agency
beyond the continued current public parking use. Additionally, the property is only 35 feet in
width making it difficult to us e for any commercial purpose
PMP Authorized/Directed Disposition Action. Upon approval of this PMP, the Successor
Agency shall transfer the property to the City of Campbell as a continuing governmental purpose
site without compensation.
14
(03\0I\1351155.2
5. Civic Center Drive Remnant Dirt Lot
Disposition Cateeorv
The 3,500 square foot irregularly shaped dirt lot has no value other than to the adjacent property
owner. It is proposed that the property be designated for sale by the Successor Agency with the
proceeds distributed to the affected taxing entities in accordance with Health and Safety Code
Section 34191.5(c)(2)(B).
Property Description and Purpose
Assessor Parcel Number:
Parcel Address:
Total Acreage:
General plan Designation: .
Zoning Designation:
Date of Acquisition:
Purpose of Acquisition:
Value at time of acquisition:
Estimate of current value:
Lease Revenue:
EnvironmentaL•
TOD/Other Development Potential
279-41-062
None
3,500 square feet
General Commercial
Central Commercial
Unknown
Remnant of larger parcel acquired for street system
Unknown
$100,000
None
No environmental history
None beyond development with adjacent parcel
APN: 279-41-062
nd Area: 3,500 sq. ft.
ptian :Remnant Dirt Lot, Southwest Corner of Cis
Drive and Harrison Avenue ppN
Feet I1
155 310 /1.1V
Op,CAAfA
~'
V f-
0 4
;. -
Community Development Department
Planning Division
16
103\01\1351155.2
Background Including Acquisition Purpose, Rental Income, and Other Development Potential
This "half moon" shaped property is 3,500 square feet in size located at the intersection of Civic
Center Drive and Harrison Avenue. The property is a remnant parcel from the City's property
acquisition in the 1970's for the loop street system developed around the downtown core to
facilitate traffic circulation. It is unknown when the property was conveyed to the former RDA.
The property has always been vacant. It cannot be developed independently because of its size,
irregular shape and limited vehicular access. Therefore, it has little or no value other than to
possibly the adjacent property owner as a part of a redevelopment opportunity. The property
does not generate any revenue to the City or the Successor Agency. The property has no transit-
oriented development potential or other potential for development except as described above.
PMP Authorized/Directed Disposition Action. Upon approval of this PMP, the Successor
Agency shall sell this remnant parcel in the open market and remit the sale proceeds to the
County Auditor-Controller for distribution to the taxing entities in accordance with Health and
Safety Code Section 34191.5(c)(2)(B).
17
103V01A13511552