TO: Honorable Mayor and Members of the City Council
FROM: Rick Otto, City Manager
1. SUBJECT
title
Disposition and Development Agreement by and between the City of Orange and Shelter Providers of Orange County, Inc. to develop six units of affordable housing.
body
2. SUMMARY
Agreement with Shelter Providers of Orange County, Inc. to sell three adjacent properties located at 617, 625, and 637 West La Veta Avenue to develop six units of affordable housing.
3. RECOMMENDED ACTION
recommendation
Approve the Disposition and Development Agreement by and between the City of Orange and Shelter Providers of Orange County, Inc.; and authorize the Mayor and City Clerk to execute on behalf of the City.
end
4. FISCAL IMPACT
The $700,000 in proceeds from the sale of the properties will be paid over a period of 30 years and will first be used to reimburse the $514,378 of Gas Tax funds (272) that were used to purchase the properties. Remaining proceeds will benefit the General Fund (100).
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community
c: Support and enhance attractive, diverse living environments.
6. DISCUSSION AND BACKGROUND
Background
The City purchased three contiguous properties at 617, 625, and 637 West La Veta Avenue between 1992 and 1999 for a planned street widening. The widening project never moved forward as the City was not able to acquire the remaining needed property on the open market, and the City Council did not want to use eminent domain to acquire it. The City purchased the properties using $514,378 in Gas Tax funds and so any proceeds from the sale of the properties must first be used to repay the Gas Tax fund (272).
Government Surplus Process
State law requires that the City follow a certain process when disposing of property. Once the City determines that it has no need for a property, the City must first declare the property as surplus and then formally offer the property for sale to other government ...
Click here for full text