AgdaPkt 2005-02-28 - Laserfiche WebLink

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7,C - 1 REPORT To the Redevelopment Agency Board From the Redevelo ment Mana er February 28, 2005 Subject Sale of Agency owned property loæted at 561-563 Douglas Avenue Recommendation Authorize staff to proceed with the sale of the Agency owned property loæted at 561- 563 Douglas Avenue, subject to the covenants and conditions required by California redevelopment law, for not less than fair market value. Background In 1990, the City made a home improvement loan on the property at 561-563 Douglas Avenue ("Property"). The Property is .14 acres with two units. The first unit is a 3 bedroom/1 bath house totaling 1,126 square feet. The second unit is a 1 bedroom apartment totaling 483 square feet. The owner defaulted on the loan in 1992 which required the County to foreclose on the Property and title was vested to the City. In October 2001, the Property was transferred from the City to the Agency in an "as is" condition for a total cost of $477,000. Additional Agency funds of $120,000 were spent to rehabilitate the Property. At the time of acquisition, the Agency's intent was to make the Property available to the school district for teacher housing. Both of the units are vaænt at present and although both units are currently in excellent condition, the house has been vandalized at various times. The school district has indiæted that it is not interested in managing the property to house teachers. In view of the school district's disinterest, Agency staff is recommending that the property be sold on the open market at fair market value. The vaænt property has become a liability beæuse of its vulnerability to vandalism. An independent appraisal prepared in November, 2004 indicates a value of $670,000. The proceeds from the sale could be designated for Bradford Street site development currently under consideration. Staff has negotiated an agreement with a loæl realtor to complete the transaction for the Agency. The realtor will list and show the property, and facilitate escrow close. An informational package for prospective buyers will be prepared by Agency counsel and staff specifying the terms and conditions of the sale. The property must be sold pursuant to covenants contained in California redevelopment law forbidding discrimination in the sale, lease, or occupancy of the property and requiring that the use and development of the property be in accordance with redevelopment law. Redeveiopmentsha-edI2005 Staff ReportslO2-2005/Douglas Avenue Sale 1of2