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Home My WebLink AboutMINUTES - 10122010 - SD.3 (2)RECOMMENDATION(S): Public Hearing of the Governing Board of the Redevelopment Agency to consider the sale of Agency owned property at 239 Ruby Avenue, North Richmond (Assessor’s Parcel Number 408-230-080) as required by Section 33433 of the Health and Safety Code; AUTHORIZE the Redevelopment Director, or his designee, to execute a Real Property Sales Agreement with Greyner A. Ampie for 239 Ruby in the amount of One Hundred and Sixty-Seven Thousand Dollars ($167,000) (First American Title Company Escrow Number # 3610411) DIRECT the Redevelopment Agency to have the Grant Deed from the Agency delivered to First American Title Company; DETERMINE that the project is a California Environmental Quality Act (CEQA) Class 12 Categorical Exemption, and Direct the Redevelopment Director, or his designee, to file a Notice of Exemption and pay the $50 filing fee to the County Clerk APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 10/12/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Jim Kennedy, 925-335-7225 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: October 12, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: SD. 3 To: From:David Twa, Redevelopment Agency Executive Director Date:October 12, 2010 Contra Costa County Subject:Sale of Redevelopment Agency-Owned Property at 239 Ruby Avenue, North Richmond FISCAL IMPACT: None. No General Fund revenues are involved with the sale of 239 Ruby Avenue, North Richmond. Redevelopment Set-Aside funds were used to purchase this site as part of the Agency’s Affordable Housing Program. Proceeds from the sale will reimburse the Agency's Affordable Housing Program. BACKGROUND: On February 12, 2008, the Redevelopment Agency exercised its right to acquire the property at 239 Ruby Avenue, North Richmond. The property was a deed restricted affordable housing unit. The Agency purchased the property pursuant to its Resale Requirements, Homebuyer Covenants, and Option to Purchase Agreement (Resale Restrictions) for a price of $196,000. Since the Agency acquired the property residential values in North Richmond have continued to decline. According to Data Quick the average value of home sales in the North Richmond area have decreased by half. Moreover, foreclosures are still at record highs and most first time homebuyers are just now able to secure financing to purchase new homes. On August 19, 2010, Greyner A. Ampie made an offer for 239 Ruby in the amount of $167,000. Although this offer is less than what the Agency paid for the property and incurred in transaction fees, staff is recommending that the Governing Board of the Redevelopment Agency accept the new offer of $167,000. Accepting this offer allows the Agency to reduce its real estate holdings, while preserving this unit as affordable for another First-Time Homebuyer. It also enables the Agency to continue fulfilling its affordable housing goals and overall production count. In order to establish a basis for acceptance of this offer, Community Housing Developer Corporation of North Richmond (CHDC), a local non-profit housing developer, was retained to research current comparable sales in the area. CHDC found that 5 similar properties have sold since April 2010 and the highest price has been $140,000. The County’s Public Works Department-Real Properties Division was also commissioned to research comparables using MLS and other sources such as Data Quick and Metro Scan. Real Property’s findings are in agreement with CHDC’s findings. Several comparable sales provided by the County’s Real Property Division sold for well under $100,000, less than half the market value of comparable properties three years ago. Ninety percent of all comparable sales are lower than the current offer being considered. In view of this data, and given the condition of the property, the offer appears to be representative of fair market value today. The new buyer will be required to enter into the Agency’s Resale Restriction and Buyer’s Disclosure Statement. CONSEQUENCE OF NEGATIVE ACTION: The unit will remain vacant and the Agency will continue to incur holding costs and other The unit will remain vacant and the Agency will continue to incur holding costs and other financial obligations. The unit will also not qualify for production count under the Agency’s affordable housing program CHILDREN'S IMPACT STATEMENT: Not applicable CLERK'S ADDENDUM CONTINUED to October 19, 2010. (No action taken) ATTACHMENTS Resolution No. 2010/511 dot CEQA purchase agreement public notice THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA and for Special Districts, Agencies and Authorities Governed by the Board Adopted this Resolution on 10/12/2010 by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSE: Resolution No. 2010/511 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA and for Special Districts, Agencies and Authorities Governed by the Board WHEREAS, The Redevelopment Agency is conveying Redevelopment Agency owned real property located at 239 Ruby Avenue, North Richmond, APN 408-230-080, to Greyner A. Ampie, for the purchase price of 167,000; and WHEREAS, this resolution is made pursuant to the provisions of subdivision (c) of Health and Safety Code Section 33433; and WHEREAS, the Agency held a noticed public hearing on October 12, 2010, at 9:30 a.m. in the Board of Supervisors Chambers, O’Brien Administration Building, 651 Pine Street, Martinez, California, regarding the conveyance of the above-referenced real property. NOW, THEREFORE BE IT RESOLVED, that the Board AUTHORIZES the Board Chair, on behalf of the Redevelopment Agency, to execute a Real Property Sales Agreement for the conveyance of Redevelopment Agency-owned real property located at 239 Ruby Avenue, North Richmond, APN 408-230-080 (“the Property”) to Greyner A. Ampie for the purchase price of $167,000; and BE IT FURTHER RESOLVED, that the Board AUTHORIZES the Board Chair, on behalf of the Redevelopment Agency, to have the Grant Deed from the Agency delivered to First American Title Company for recording. Contact: Jim Kennedy, 925-335-7225 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: October 12, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: NOTICE OF PUBLIC HEARING SALE OF REAL PROPERTY, 239 RUBY AVE., NORTH RICHMOND The Contra Costa County Board of Supervisors, as the Governing Board of the Contra Costa County Redevelopment Agency, will hold a public hearing on October 12, 2010, at 9:30 a.m. in the Board of Supervisors Chambers, O’Brien Administration Building, 651 Pine Street, Martinez, California. The purpose of the hearing is to consider conveying to Greyner A. Ampie, at a price of $167,000, the Agency-owned real property located at 239 Ruby Avenue, North Richmond, APN 408-230-080. Oral and written presentations can be made at the meeting. The hearing is required by Health and Safety Code section 33433(c). Under this section, a public hearing must be held prior to the sale by the Agency of certain Agency-owned real property that is proposed to be conveyed to persons and families of low or moderate income. A sale made pursuant to Health and Safety Code section 33433(c) is subject to certain resale restrictions. Further information regarding this hearing may be obtained by contacting D’Andre Wells, Redevelopment Project Manager, at (925) 335-7236.