HomeMy WebLinkAboutMINUTES - 10192010 - D.2RECOMMENDATION(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: 10/19/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III
Supervisor
Contact: D'Andre Wells
335-7236
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 19, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
D. 2
To:
From:Jim Kennedy, County Redevelopment Director
Date:October 19, 2010
Contra
Costa
County
Subject:Hearing to Consider Sale of 239 Ruby Avenue, 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
CLOSED the public hearing; AUTHORIZED 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); DIRECTED the
Redevelopment Agency to have the Grant Deed from the Agency delivered to First
American Title Company; and DETERMINED 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.
ATTACHMENTS
Resolution No. 2010/539
Purchase Agreement
CEQA
dot
Public Notice