HomeMy WebLinkAbout2017 CON CDC Various Taxing Entities - Compensation Agreement - 1640 East Plaza BlvdNOTE TO FILE
01-23-19
IN THE MATTER OF: Agreement by and between the City of National City
and Various Taxing Entities regarding Long Range Property Management
Plan Property Retained by the City of National City for future development
(1640 East Plaza Blvd., National City, CA APN #557-410-20). Please note the
following:
NO FULLY EXECUTED ORIGINAL AGREEMENT
WAS FILED WITH THE OFFICE OF THE CITY CLERK.
A COPY OF THE FULLY EXECUTED AGREEMENT WAS PROVIDED.
ORIGINATING DEPARTMENT:
NTF
CDC X Housing & Economic Dev.
City Attorney _ Human Resources
City Manager MIS
Community Svcs. Planning
Engineering Police
Finance Public Works
Fire
COMPENSATION AGREEMENT REGARDING LONG RANGE
PROPERTY MANAGEMENT PLAN PROPERTY RETAINED BY
THE CITY OF NATIONAL CITY FOR FUTURE DEVELOPMENT
(1640 East Plaza Blvd., National City,
CA APN # 557-410-20)
This Compensation Agreement ("Agreement"), dated as of June 13 , 2017
("Effective Date"), is entered into by and among the City of National City ("City"), the County of
San Diego, the National School District, the Sweetwater Union High School District,
Southwestern College, San Diego County Office of Education, and the San Diego County Water
Authority (collectively referred to as "Taxing Entities"), on the basis of the following facts,
understandings, and intentions of the parties:
RECITALS
A. Assembly Bill 26X, as amended by AB 1484, SB 107, and other statutes, together, being
referenced below as the "Dissolution Act" dissolved redevelopment agencies and
required successor agencies to wind down redevelopment agencies' affairs.
B. Pursuant to the Dissolution Act, all real property owned by the dissolved National
City Redevelopment Agency was transferred to the control of the Successor Agency
to the Community Development Commission as the National City Redevelopment
Agency ("Successor Agency").
C. Health and Safety Code Section 34191.5(b) requires a successor agency to prepare a
long- range property management plan ("LRPMP") that addresses the disposition and
use of the real properties of the former redevelopment agency within six months of
receiving a "finding of completion".
D. Health and Safety Code Section 34191.5(b) also requires the Successor Agency to
submit the LRPMP to its Oversight Board and the California Department of Finance
("DOE") for approval.
E. On December 30, 2015, DOF approved a revised LRPMP which was prepared by
the Successor Agency ("Revised LRPMP").
F. DOF' s letter to the Successor Agency approving the Revised LRPMP provides
that "[p]ursuant to HSC section 34191.3(a) the approved LRPMP shall govern, and
supersede all other provisions relating to, the disposition and use of all the real
property assets of the former redevelopment agency."
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G. The Revised LRPMP provides that eighteen (18) County Assessor parcels will be
transferred to and retained by the City for future development (each individually a
"Future Development Parcel"). One Future Development Parcel is that certain real
property located at 1640 East Plaza Blvd., National City, California, APN #557-410-20
("Property").
H. The City has entered into that certain Real Property Purchase and Sale Agreement and
Joint Escrow Instructions dated as of August 18, 2016 ("Purchase Agreement"), pursuant
to which the City will sell the Property to Palm Plaza Associates, LLC, a California
limited liability company ("Buyer"), in accordance with the terms and conditions of the
Purchase Agreement.
I. The Purchase Agreement provides that Buyer shall pay City Eight Hundred Seventy
Thousand and No/100 Dollars ($870,000) as the purchase price for the Property, which
is the fair market value of the Property as of February 29, 2016, pursuant to that certain
appraisal report conducted by Kent Carpenter of Hilco Valuation Services.
J. The Revised LRPMP provides that in connection with the Property, the City shall enter
into a compensation agreement with the affected taxing entities. This Agreement is the
compensation agreement referenced in the Revised LRPMP with respect to the Property.
K. Health and Safety Code Section 34180(f) provides that if a city wishes to retain any
properties or other assets for future redevelopment activities, funded from its own funds
and under its own auspices, it must reach a compensation agreement with other taxing
entities to provide payments to them in proportion to their shares of the base property
tax, as determined pursuant to Section 34188, for the value of the property retained.
L. The parties recognize that real property is unique, and accordingly, agree that the
provisions of this Agreement shall not establish a precedent with respect to properties to
be disposed of in the future by the City of National City.
NOW, THEREFORE, the parties agree as follows:
Section 1. Allocation of Sale Proceeds from Sale of Property.
The parties agree that pursuant to the Purchase Agreement, the City will distribute
$855,966.00 ($870,000 less $14,034 in agreed upon costs) within 30 days after the close of
escrow to the Taxing Entities in proportion to each agency's share of the base property
tax as determined pursuant to Health and Safety Code Section 34188 and by the County's
Auditor and Controller as set forth below:
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IMPACTED TAXING ENTITIES
FUND
IMPACT
RATIOS
Fund Name
COUNTY OF SAN DIEGO (County General)
0.14987258
NATIONAL SCHOOL DISTRICT
0.28818591
SWEETWATER UNION HIGH SCHOOL
DISTRICT
0.17633424
SOUTHWESTERN COLLEGE
0.04751464
SAN DIEGO COUNTY OFFICE OF
EDUCATION
0.02115 793
EDUCATIONAL REVENUE
AUGMENTATION FUND
0.13306690
CITY OF NATIONAL CITY
0.17992456
SAN DIEGO COUNTY WATER
AUTHORITY
0.00394326
TOTAL
1.00000000
Agreed Upon Costs for Sale of the Property
Estimated Escrow Fees/ Closing Costs
$5,934
Public Notice
$700
Economic Opportunity Report
$0 — Paid
Appraisal Report
$0 — Paid
Estimated Maintenance Costs
$2,000
Estimated Management Costs
$2,900
Estimated Legal Fees
$2,500
TOTAL ESTIMATED COSTS
$14,034
Section 2. Condition Precedent.
Any duty imposed on the City by this Agreement is based upon the consummation
of the sale of the Property in accordance with the Purchase Agreement. No representations or
assurances are made by the City as to when, if ever, the sale will be consummated.
Section 3. Effective Date and Term.
This Agreement shall be effective from the Effective Date specified above and shall
remain in effect until the provisions of Section 1 above are fully performed or the Purchase
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Agreement is terminated, whichever occurs first.
Notwithstanding any other provision of this Agreement or the Revised LRPMP, a
party may terminate this Agreement upon written notice to the other parties if a court order,
legislation, or DOF policy reverses the requirement or need for this Agreement (an "Early
Termination"). An Early Termination shall become effective five (5) days after the
terminating party delivers the required notice to the other parties in accordance with this
Agreement. Upon effectiveness of an Early Termination, no party shall have any further rights
or obligations under this Agreement. An Early Termination shall not be permissible if the net
sale proceeds from the sale of the Property have already been distributed in accordance with this
Agreement. Notwithstanding any other provision contained herein, once the City makes a
payment to a taxing entity, the payment is irrevocable.
Section 4. Miscellaneous Provisions.
a. Notices. All notices, statements, or other communications made pursuant to this
Agreement to another party or parties shall be in writing and addressed to the applicable party
at the address listed on Exhibit A, which is attached hereto and incorporated herein by this
reference. All such notices shall be sent by: (1) personal delivery, in which case notice is
effective upon delivery; (2) certified or registered mail, return receipt requested, in which case
notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (3)
nationally recognized overnight courier, with charges prepaid or charged to the sender's
account, in which case notice is effective on delivery if delivery is confirmed by the delivery
service. Any party may change its address for notice purposes by written notice to the other
parties prepared and delivered in accordance with the provisions of this Section.
b. No Third Party Beneficiaries. No person or entity other than the parties and their
successors and assigns shall have any right under this Agreement.
c. • State Law; Venue. This Agreement, and the rights and obligations of the parties
hereto, shall be construed and enforced in accordance with the laws of the State of California.
Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court
of San Diego County, California or in the Federal District Court for the Southern District
of California.
d. Entire Agreement; Amendment. This Agreement constitutes the entire and
integrated agreement of the parties and supersedes all prior negotiations, representations, or
agreements, either written or oral. This Agreement may be modified only in writing and only
if signed by all of the parties hereto.
e. Counterparts. This Agreement may be executed in counterparts, each of which
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shall be deemed an original, but all of which together shall constitute one and the same
agreement. The signature page of any counterpart may be detached therefrom without
impairing the legal effect of the signature(s) thereon, provided such signature page is attached
to any other counterpart identical thereto having additional signature pages executed by the
other parties. Any executed counterpart of this Agreement shall be deemed as binding as if an
originally signed counterpart was delivered.
f. Costs. The parties shall each bear their own costs, expert fees, attorneys' fees
and other fees incurred in connection with this Agreement, including, without limitation if
any legal action is brought by any party because of a breach of this Agreement or to enforce
a provision of this Agreement.
g. No Partnership. Nothing contained in this Agreement shall be construed to
constitute any party as a partner, employee, joint venturer, or agent of any other party.
h. Headings: Interpretation. The section headings and captions used herein are
solely for convenience and shall not be used to interpret this Agreement. The parties agree
that this Agreement shall not be construed as if prepared by one of the parties, but rather
according to its fair meaning as a whole, as if all parties had prepared it.
i. Severability. If any term, provision, or condition of this Agreement is held by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement
shall continue in full force and effect.
j. Action or Approval. Whenever action and/or approval by the City is required
under this Agreement, the City Manager or his or her designee may act on and/or approve such
matter, or unless the City Manager determines in his or her discretion that such action or
approval requires referral to the City Council for consideration.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
dates set forth in the opening paragraph of this Agreement.
CITY OF NATIONAL CITY
Byc'--"±vp
Name: Leslie Deese
Title: City Manager
ATTEST:
By: 49x��✓'!
Name: Mike D. a
Title: City Clerk
APPROVED AS TO FORM:
By: � ,
Name: George H. Eiser III
Title: Interim City Attorney
KANE, BALLMER & BERKMAN
By:
Name: Susan Y. Apy
Title: Special Counsel
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COUNTY OF SAN DIEGO
APPROVED AS TO FORM:
By:
14ame: Rachel Witt
Title: Sr Deputy County Counsel
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By:
ff6c
Name: David Hall
Title: Clerk of the Board of Supervisors
DATE: • -O 7
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Approved and/or authorized by the
Board of Supervisors of the County of San Diego.
Meeting Date: {.o Minute Order No. l�
By: S).17 Date: c5f 4 ! ! y
Deputy Cierk of tilt Board Supervisors
NATIONAL SCHOOL DISTRICT
By:
ATTEST:
By: Name: AClz i—1 6
Title: MiviZtvi sd rt,4-t . A -Tit --)Ik&s S<-4.uy'`C."
Name: eh S. ars sit
Title: . 571. ZttS. SJes.
APPROVED AS TO FORM:
By:
Name:
Title:
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SWEETWATER UNION HIGH SCHOOL
DISTRICT
ATTEST:
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
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By:
Name:
Title:
Kartln Michel
Chief Financial Officer
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SOUTHWESTERN COLLEGE
AT 1'EST:
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
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By: f^
Name: Ttr^ T, r1bG&
Title: Vice e i ip.lr Car d‘,yirasa
cm% (rtr^CL&t b% ��'•�r j
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SAN DIEGO COUNTY OFFICE OF EDUCATION
ATTEST:
By: _
Name:
Title:
APPROVED AS TO FORM:
By: _
Name:
Title:
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By:
Name:
Title:
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SAN DIEGO COUNTY WATER Al 'I'I (ORITY
ATTEST:
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
Vet%ton •1 (t• I I In) (hill{ edits)
N "me: L, �� l
Title V° Ct'eyt,e"
lr-a f/t
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EXHIBIT A
LIST OF NOTICE ADDRESSES OF PARTIES
City of National City: City of National City
1243 National City Boulevard
National City, California 91950
Attention: Leslie Deese, City Manager
With a Copy to: City of National City
Office of the City Attorney
1243 National City Boulevard
National City, California 91950
Attention: George Eiser, City Attorney
County of San Diego:
National School District:
County of San Diego
1600 Pacific Highway
Room
San Diego, CA 92101
Attn: Brian Hagerty, Group Finance Director
National School District
1500 N Avenue
National City, CA 91950
Attn: Christopher Carson, Asst. Superintendent of
Business Services
Sweetwater Union High School District:
Sweetwater Union High School District
1130 Fifth Ave
Chula Vista, CA 91911
Attn: Karen Michel, Chief Financial Officer
Southwestern College:
Southwestern College
900 Otay Lake Road
Chula Vista, CA 91910
Attn: Tim Flood, VP of
Business and Financial
Affairs
San Diego County Office of Education:
San Diego County Office of Education
6401 Linda Vista Road
San Diego, CA 92111
Attn: Lora Duzyk, Asst. Superintendent of
Business Services
San Diego County Water Authority:
San Diego County Water Authority
4677 Overland Avenue
San Diego, CA 92123
Attn: Christopher Woidzik, Controller
RESOLUTION NO. 2017 — 41
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE A COMPENSATION
AGREEMENT WITH THE AFFECTED TAXING ENTITIES PERTAINING TO
THE SALE OF A 1.07-ACRE PARCEL OF VACANT LAND LOCATED
AT 1640 EAST PLAZA BOULEVARD IN NATIONAL CITY RETAINED BY
THE CITY OF NATIONAL CITY FOR FUTURE DEVELOPMENT PURSUANT
TO THE REVISED LONG RANGE PROPERTY MANAGEMENT PLAN
WHEREAS, the Community Development Commission as the National City
Redevelopment Agency ("Redevelopment Agency") owned that certain real property generally
located at 1640 East Plaza Boulevard (Assessor's Parcel No. 557-410-20) within the City of
National City, County of San Diego, State of California ("Property"); and
WHEREAS, pursuant to California Health and Safety Code Section 34172, the
Redevelopment Agency was dissolved by operation of law as of February 1, 2012, and pursuant
to California Health and Safety Code Section 34173, the Successor Agency to the Community
Development Commission as the National City Redevelopment Agency ("Successor Agency")
became the successor agency and successor -in -interest to the Redevelopment Agency,
confirmed by Resolution No. 2012-15 adopted on January 10, 2012, by the City Council of the
City of National City ("City"); and
WHEREAS, in accordance with California Health and Safety Code Section
34191.5, the Property was listed on Successor Agency's Revised Long Range Property
Management Plan ("Revised LRPMP"), which provides that the Property is to be sold at fair
market value, and the Revised LRPMP has been approved by the Oversight Board of the
Successor Agency ("Oversight Board") and the California Department of Finance ("DOF"); and
WHEREAS, at its regular meeting on May 17, 2016, the Successor Agency met and
pursuant to Resolution No. 2016-77 approved the transfer of the Property, among other properties,
from the Successor Agency to the City in accordance with the Revised LRPMP; and
WHEREAS, at its regular meeting on May 17, 2016, the City of National City met and
pursuant to Resolution No. 2016-70 accepted the transfer of the Property, among other properties, from
the Successor Agency to the City in accordance with the LRPMP; and
WHEREAS, in accordance with the DOF-approved Revised LRPMP, the net
proceeds from the sale of the Property pursuant to the Purchase and Sale Agreement will be
distributed as property tax to each taxing entity in an amount proportionate to its share of
property tax revenues; and
WHEREAS, on August 16, 2016, the City Council adopted Resolution No. 2016-
120 approving the sale of the property located at 1640 East Plaza Boulevard; and
WHEREAS, pursuant to Health and Safety Code Section 34188, upon the sale of
any Future Development Parcel, the City shall remit the hereinafter defined "Net Unrestricted
Sales Proceeds" for such Future Development Parcels among the affected taxing entities on a
pro rata basis in proportion to each entity's respective share of the property tax base; and
WHEREAS, all of the affected taxing agencies have approved the Compensation
Agreement as to form, which includes the County of San Diego, National School District,
Resolution No. 2017 — 41
Page Two
Sweetwater Union High School District, Southwestern College, San Diego County Office of
Education, Educational Revenue Augmentation Fund, San Diego County Water Authority, and
the City of National City; and
WHEREAS, the sales price of the property is $870,000.00, with $14,034.00 being
deducted for holding costs incurred by the City for marketing and managing the property, and
when the sale is finalized, the net sale proceeds of $855,966.00 will then be distributed to the
taxing entities based on each entity's proportional share of base property tax for the parcel; and
WHEREAS, according to County Auditor and Controller records, the City's
proportional share for the parcel is 17.992456%, resulting in $154,009.25 in estimated revenue.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the City Manager to execute a Compensation Agreement with
the affected Taxing Entities pertaining to the sale of a 1.07-acre parcel of vacant land located at
1640 East Plaza Boulevard in National City retained by the City of National City for future
development pursuant to the Revised Long Range Property Management Plan. A copy of said
Compensation Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 4th day of April, 2017.
on orrison, Mayor
ATTEST:
/1
Mich -el R. Dalla, 'c ty Clerk
APPROVED AS TO FORM:
George H. Eiser, Ill
Interim City Attorney
Passed and adopted by the Council of the City of National City, California, on April 4,
2017 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
44
A
l'
City Clerk of the City of N tional City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2017-41 of the City of National City, California, passed and adopted
by the Council of said City on April 4, 2017.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
C�dOY
"FETING DATE: gpril 4, 2017
AGENDA ITEM NO. 7
ITEM TITLE:
Resolution of the City Council of the City of National City authorizing the City Manager to execute a
Compensation Agreement with the affected Taxing Entities pertaining to the sale of a 1.07-acre parcel
of vacant land located at 1640 East Plaza Blvd. in National City retained by the City of National City
for future development pursuant to the Revised Long Range Property Management Plan.
PREPARED BY: Greg Rose, Property Agent DEPARTMENT: H
PHONE: 619-336-4266 APPROV Y:
EXPLANATION:
The sale of the property located at 1640 East Plaza Blvd. was approved by the Council on August 16,
2016. Pursuant to Health and Safety Code Section 34188, upon the sale of any Future Development
Parcel, the City shall remit the hereinafter defined "Net Unrestricted Sales Proceeds" for such Future
Development Parcels among the affected taxing entities on a pro rata basis in proportion to each
entity's respective share of the property tax base. All of the affected taxing agencies have approved the
Compensation Agreement as to form. A list of the affected taxing entities is included as Exhibit "A" to
the Compensation Agreement.
& Economic Dev.
The sales price of the property is $870,000.00, with $14,034.00 being deducted for holding cost incurred
by the City for marketing and managing the property. When the sale is finalized, the net sale proceeds
$855,966.00 will then be distributed to the taxing entities based on each entity's proportional share of
ase property tax for the parcel. According to County Auditor and Controller records, the City's
proportional share for the parcel is 17.992456°A), resulting in $154,009.25 in estimated revenue. -
FINANCIAL STATEMENT: APPROVED: (, 1/«. ��`E.�-�-- Finance
ACCOUNT NO. APPROVED:
$14,034.00 to 001-45462-3636 Refunds and Reimbursements
$154,009.25 to 001-45462-3019 Sale of Property- Residual Balance Distribution
ENVIRONMENTAL REVIEW:
This is not a project and, therefore, is not subject to environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
MIS
STAFF RECOMMENDATION:
Adopt the Resolution.
BOARD / COMMISSION RECOMMENDATION:
Not applicable.
A,TTACHMENTS:
1. Compensation Agreement
tOc'eLo1/4,vt\o\--N ‘.NO. Qc '• -•\
Attachment No. 1
COMPENSATION AGREEMENT REGARDING LONG RANGE
PROPERTY MANAGEMENT PLAN PROPERTY RETAINED BY
THE CITY OF NATIONAL CITY FOR FUTURE DEVELOPMENT
(1640 East Plaza Blvd., National City,
CA APN # 557-410-20)
This Compensation Agreement ("Agreement"), dated as of , 2017
("Effective Date"), is entered into by and among the City of National City ("City"), the County of
San Diego, the National School District, the Sweetwater Union High School District,
Southwestern College, San Diego County Office of Education, and the San Diego County Water
Authority (collectively referred to as "Taxing Entities"), on the basis of the following facts,
understandings, and intentions of the parties:
RECITALS
A. Assembly Bill 26X, as amended by AB 1484, SB 107, and other statutes, together, being
referenced below as the "Dissolution Act" dissolved redevelopment agencies and
required successor agencies to wind down redevelopment agencies' affairs.
B. Pursuant to the Dissolution Act, all real property owned by the dissolved National
City Redevelopment Agency was transferred to the control of the Successor Agency
to the Community Development Commission as the National City Redevelopment
Agency ("Successor Agency").
C. Health and Safety Code Section 34191.5(b) requires a successor agency to prepare a
long- range property management plan ("LRPMP") that addresses the disposition and
use of the real properties of the former redevelopment agency within six months of
receiving a "finding of completion".
D. Health and Safety Code Section 34191.5(b) also requires the Successor Agency to
submit the LRPMP to its Oversight Board and the California Department of Finance
("DOF") for approval.
E. On December 30, 2015, DOF approved a revised LRPMP which was prepared by
the Successor Agency ("Revised LRPMP").
F. DOF's letter to the Successor Agency approving the Revised LRPMP provides
that "[p]ursuant to HSC section 34191.3(a) the approved LRPMP shall govern, and
supersede all other provisions relating to, the disposition and use of all the real
property assets of the former redevelopment agency."
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Attachment No. 1
G. The Revised LRPMP provides that eighteen (18) County Assessor parcels will be
transferred to and retained by the City for future development (each individually a
"Future Development Parcel"). One Future Development Parcel is that certain real
property located at 1640 East Plaza Blvd., National City, California, APN #557-410-20
("Property").
H. The City has entered into that certain Real Property Purchase and Sale Agreement and
Joint Escrow Instructions dated as of August 18, 2016 ("Purchase Agreement"), pursuant
to which the City will sell the Property to Palm Plaza Associates, LLC, a California
limited liability company ("Buyer"), in accordance with the terms and conditions of the
Purchase Agreement.
I. The Purchase Agreement provides that Buyer shall pay City Eight Hundred Seventy
Thousand and No/100 Dollars ($870,000) as the purchase price for the Property, which
is the fair market value of the Property as of February 29, 2016, pursuant to that certain
appraisal report conducted by Kent Carpenter of Hilco Valuation Services.
J. The Revised LRPMP provides that in connection with the Property, the City shall enter
into a compensation agreement with the affected taxing entities. This Agreement is the
compensation agreement referenced in the Revised LRPMP with respect to the Property.
K. Health and Safety Code Section 34180(f) provides that if a city wishes to retain any
properties or other assets for future redevelopment activities, funded from its own funds
and under its own auspices, it must reach a compensation agreement with other taxing
entities to provide payments to them in proportion to their shares of the base property
tax, as determined pursuant to Section 34188, for the value of the property retained.
L. The parties recognize that real property is unique, and accordingly, agree that the
provisions of this Agreement shall not establish a precedent with respect to properties to
be disposed of in the future by the City of National City.
NOW, THEREFORE, the parties agree as follows:
Section 1. Allocation of Sale Proceeds from Sale of Property.
The parties agree that pursuant to the Purchase Agreement, the City will distribute
$855,966.00 ($870,000 less $14,034 in agreed upon costs) within 30 days after the close of
escrow to the Taxing Entities in proportion to each agency's share of the base property
tax as determined pursuant to Health and Safety Code Section 34188 and by the County's
Auditor and Controller as set forth below:
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Attachment No. 1
IMPACTED TAXING ENTITIES
FUND
IMPACT
RATIOS
Fund Name
COUNTY OF SAN DIEGO (County General)
0.14987258
NATIONAL SCHOOL DISTRICT
0.28818591
SWEETWATER UNION HIGH SCHOOL
DISTRICT
0.17633424
SOUTHWESTERN COLLEGE
0.04751464
SAN DIEGO COUNTY OFFICE OF
EDUCATION
0.02115793
EDUCATIONAL REVENUE
AUGMENTATION FUND
0.13306690
CITY OF NATIONAL CITY
0.17992456
SAN DIEGO COUNTY WATER
AUTHORITY
0.00394326
TOTAL
1.00000000
Agreed Upon Costs for Sale of the Property
Estimated Escrow Fees/ Closing Costs
$5,934
Public Notice
$700
Economic Opportunity Report
$0 — Paid
Appraisal Report
$0 — Paid
Estimated Maintenance Costs
$2,000
Estimated Management Costs
$2,900
Estimated Legal Fees
$2,500
TOTAL ESTIMATED COSTS
$14,034
Section 2. Condition Precedent.
Any duty imposed on the City by this Agreement is based upon the consummation
of the sale of the Property in accordance with the Purchase Agreement. No representations or
assurances are made by the City as to when, if ever, the sale will be consummated.
Section 3. Effective Date and Term.
This Agreement shall be effective from the Effective Date specified above and shall
remain in effect until the provisions of Section 1 above are fully performed or the Purchase
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Attachment No. 1
Agreement is terminated, whichever occurs first.
Notwithstanding any other provision of this Agreement or the Revised LRPMP, a
party may terminate this Agreement upon written notice to the other parties if a court order,
legislation, or DOF policy reverses the requirement or need for this Agreement (an "Early
Termination"). An Early Termination shall become effective five (5) days after the
terminating party delivers the required notice to the other parties in accordance with this
Agreement. Upon effectiveness of an Early Termination, no party shall have any further rights
or obligations under this Agreement. An Early Termination shall not be permissible if the net
sale proceeds from the sale of the Property have already been distributed in accordance with this
Agreement. Notwithstanding any other provision contained herein, once the City makes a
payment to a taxing entity, the payment is irrevocable.
Section 4. Miscellaneous Provisions.
a. Notices. All notices, statements, or other communications made pursuant to this
Agreement to another party or parties shall be in writing and addressed to the applicable party
at the address listed on Exhibit A, which is attached hereto and incorporated herein by this
reference. All such notices shall be sent by: (1) personal delivery, in which case notice is
effective upon delivery; (2) certified or registered mail, return receipt requested, in which case
notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (3)
nationally recognized overnight courier, with charges prepaid or charged to the sender's
account, in which case notice is effective on delivery if delivery is confirmed by the delivery
service. Any party may change its address for notice purposes by written notice to the other
parties prepared and delivered in accordance with the provisions of this Section.
b. No Third Party Beneficiaries. No person or entity other than the parties and their
successors and assigns shall have any right under this Agreement.
c. State Law; Venue. This Agreement, and the rights and obligations of the parties
hereto, shall be construed and enforced in accordance with the laws of the State of California.
Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court
of San Diego County, California or in the Federal District Court for the Southern District
of California.
d. Entire Agreement; Amendment. This Agreement constitutes the entire and
integrated agreement of the parties and supersedes all prior negotiations, representations, or
agreements, either written or oral. This Agreement may be modified only in writing and only
if signed by all of the parties hereto.
e. Counterparts. This Agreement may be executed in counterparts, each of which
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Attachment No. 1
shall be deemed an original, but all of which together shall constitute one and the same
agreement. The signature page of any counterpart may be detached therefrom without
impairing the legal effect of the signature(s) thereon, provided such signature page is attached
to any other counterpart identical thereto having additional signature pages executed by the
other parties. Any executed counterpart of this Agreement shall be deemed as binding as if an
originally signed counterpart was delivered.
f. Costs. The parties shall each bear their own costs, expert fees, attorneys' fees
and other fees incurred in connection with this Agreement, including, without limitation if
any legal action is brought by any party because of a breach of this Agreement or to enforce
a provision of this Agreement.
g. No Partnership. Nothing contained in this Agreement shall be construed to
constitute any party as a partner, employee, joint venturer, or agent of any other party.
h. Headings; Interpretation. The section headings and captions used herein are
solely for convenience and shall not be used to interpret this Agreement. The parties agree
that this Agreement shall not be construed as if prepared by one of the parties, but rather
according to its fair meaning as a whole, as if all parties had prepared it.
i. Severability. If any term, provision, or condition of this Agreement is held by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement
shall continue in full force and effect.
j. Action or Approval. Whenever action and/or approval by the City is required
under this Agreement, the City Manager or his or her designee may act on and/or approve such
matter, or unless the City Manager determines in his or her discretion that such action or
approval requires referral to the City Council for consideration.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
dates set forth in the opening paragraph of this Agreement.
CITY OF NATIONAL CITY
ATTEST:
By:
Name: Mike Dalla
Title: City Clerk
APPROVED AS TO FORM:
By:
Name: George Eiser
Title: Interim City Attorney
KANE, BALLMER & BERKMAN
By:
Name: Susan Y. Apy
Title: Special Counsel
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By:
Name: Leslie Deese
Title: City Manager
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COUNTY OF SAN DIEGO
ATTEST:
By: _
Name:
Title:
APPROVED AS TO FORM:
By: _
Name:
Title:
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Title:
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Attachment No. 1
NATIONAL SCHOOL DISTRICT
ATTEST:
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
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Attachment No. 1
SWEETWATER UNION HIGH SCHOOL
DISTRICT
ATTEST:
By: _
Name:
Title:
APPROVED AS TO FORM:
By: _
Name:
Title:
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Attachment No. 1
SOUTHWESTERN COLLEGE
ATTEST:
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
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Attachment No. 1
SAN DIEGO COUNTY OFFICE OF EDUCATION
ATTEST:
By: _
Name:
Title:
APPROVED AS TO FORM:
By: _
Name:
Title:
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Attachment No. 1
SAN DIEGO COUNTY WATER AUTHORITY
ATTEST:
By: _
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
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Attachment No. 1
City of National City:
EXHIBIT A
LIST OF NOTICE ADDRESSES OF PARTIES
City of National City
1243 National City Boulevard
National City, California 91950
Attention: Leslie Deese, City Manager
With a Copy to: City of National City
Office of the City Attorney
1243 National City Boulevard
National City, California 91950
Attention: George Eiser, City Attorney
County of San Diego:
National School District:
County of San Diego
1600 Pacific Highway
Room
San Diego, CA 92101
Attn: Brian Hagerty, Group Finance Director
National School District
1500 N Avenue
National City, CA 91950
Attn: Christopher Carson, Asst. Superintendent of
Business Services
Sweetwater Union High School District:
Sweetwater Union High School District
1130 Fifth Ave
Chula Vista, CA 91911
Attn: Karen Michel, Chief Financial Officer
Southwestern College:
Southwestern College
900 Otay Lake Road
Chula Vista, CA 91910
Attn: Tim Flood
San Diego County Office of Education:
San Diego County Office of Education
6401 Linda Vista Road
San Diego, CA 92111
Attn: Bill Dos Santos, Senior Director
San Diego County Water Authority:
San Diego County Water Authority
4677 Overland Avenue
San Diego, CA 92123
Attn: Christopher Woidzik, Controller
RESOLUTION NO. 2017 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE A COMPENSATION
AGREEMENT WITH THE AFFECTED TAXING ENTITIES PERTAINING TO
THE SALE OF A 1.07-ACRE PARCEL OF VACANT LAND LOCATED
AT 1640 EAST PLAZA BOULEVARD IN NATIONAL CITY RETAINED BY
THE CITY OF NATIONAL CITY FOR FUTURE DEVELOPMENT PURSUANT
TO THE REVISED LONG RANGE PROPERTY MANAGEMENT PLAN
WHEREAS, the Community Development Commission as the National City
Redevelopment Agency ("Redevelopment Agency") owned that certain real property generally
located at 1640 East Plaza Boulevard (Assessor's Parcel No. 557-410-20) within the City of
National City, County of San Diego, State of California ("Property"); and
WHEREAS, pursuant to California Health and Safety Code Section 34172, the
Redevelopment Agency was dissolved by operation of law as of February 1, 2012, and pursuant
to California Health and Safety Code Section 34173, the Successor Agency to the Community
Development Commission as the National City Redevelopment Agency ("Successor Agency")
became the successor agency and successor -in -interest to the Redevelopment Agency,
confirmed by Resolution No. 2012-15 adopted on January 10, 2012, by the City Council of the
City of National City ("City"); and
WHEREAS, in accordance with California Health and Safety Code Section
34191.5, the Property was listed on Successor Agency's Revised Long Range Property
Management Plan ("Revised LRPMP"), which provides that the Property is to be sold at fair
market value, and the Revised LRPMP has been approved by the Oversight Board of the
Successor Agency ("Oversight Board") and the California Department of Finance ("DOF"); and
WHEREAS, at its regular meeting on May 17, 2016, the Successor Agency met and
pursuant to Resolution No. 2016-77 approved the transfer of the Property, among other properties,
from the Successor Agency to the City in accordance with the Revised LRPMP; and
WHEREAS, at its regular meeting on May 17, 2016, the City of National City met and
pursuant to Resolution No. 2016-70 accepted the transfer of the Property, among other properties, from
the Successor Agency to the City in accordance with the LRPMP; and
WHEREAS, in accordance with the DOF-approved Revised LRPMP, the net
proceeds from the sale of the Property pursuant to the Purchase and Sale Agreement will be
distributed as property tax to each taxing entity in an amount proportionate to its share of
property tax revenues; and
WHEREAS, on August 16, 2016, the City Council adopted Resolution No. 2016-
120 approving the sale of the property located at 1640 East Plaza Boulevard; and
WHEREAS, pursuant to Health and Safety Code Section 34188, upon the sale of
any Future Development Parcel, the City shall remit the hereinafter defined "Net Unrestricted
Sales Proceeds" for such Future Development Parcels among the affected taxing entities on a
pro rata basis in proportion to each entity's respective share of the property tax base; and
WHEREAS, all of the affected taxing agencies have approved the Compensation
Agreement as to form, which includes the County of San Diego, National School District,
Resolution No. 2017 —
Page Two
Sweetwater Union High School District, Southwestern College, San Diego County Office of
Education, Educational Revenue Augmentation Fund, San Diego County Water Authority, and
the City of National City; and
WHEREAS, the sales price of the property is $870,000.00, with $14,034.00 being
deducted for holding costs incurred by the City for marketing and managing the property, and
when the sale is finalized, the net sale proceeds of $855,966.00 will then be distributed to the
taxing entities based on each entity's proportional share of base property tax for the parcel; and
WHEREAS, according to County Auditor and Controller records, the City's
proportional share for the parcel is 17.992456%, resulting in $154,009.25 in estimated revenue.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the City Manager to execute a Compensation Agreement with
the affected Taxing Entities pertaining to the sale of a 1.07-acre parcel of vacant land located at
1640 East Plaza Boulevard in National City retained by the City of National City for future
development pursuant to the Revised Long Range Property Management Plan. A copy of said
Compensation Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 4th day of April, 2017.
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
Interim City Attorney
Ron Morrison, Mayor