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HomeMy WebLinkAboutMINUTES - 04052011 - SD.5RECOMMENDATION(S): OPEN the Public Hearing and receive testimony on the five matters referred to in section B below; CLOSE the Public Hearing; Upon completion and closing of the Public Hearing, MAKE the Findings and Determinations listed under Section B below; and ADOPT Resolution of Necessity (No. 2011/126) to acquire the required property by eminent domain. FISCAL IMPACT: In eminent domain actions the judgment will be the price paid for the property and may include court costs which are regarded as a roughly calculable expense of property acquisition. Costs of acquisition in this case are 100% reimbursable from Contra Costa County Redevelopment Agency (Agency). There will be no impact to the County General Fund. The Agency’s financial obligation to acquire this site is from budgeted funds under the North Richmond Redevelopment Project Area for FY 2010 – 2011. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 04/05/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Carla Peccianti, (925) 313-2222 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: April 5, 2011 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Real Property Division; Fina Prak SD. 5 To: From:Jim Kennedy, Redevelopment Agency Director Date:April 5, 2011 Contra Costa County Subject:Heritage Point Property Acquisition, North Richmond; Project No. 4500 6X5489 BACKGROUND: A. Proposed Project In 1987, the Redevelopment Agency adopted a Redevelopment Plan to assist with the revitalization and elimination of blight in the North Richmond community. After the plan was adopted, the area was zoned P-1 (planned unit development). The zoning program established development guidelines for the area in 1994. During the rezoning process, the residents of North Richmond requested the creation of a commercial district or “Town Center” in the existing community, and the zoning program authorized development of the North Richmond Town Center (“Town Center”) in order to provide needed public amenities to the North Richmond community. As part of the first phase of developing the North Richmond Town Center, the Agency created the award winning Senior Heritage Apartments, North Richmond Health Center and Service Integration Team and it has recently installed Streetscape Improvements along Third Street between Chesley Avenue and Grove Street. These improvements have made a substantial, positive, impact on the North Richmond community. The Agency is now ready to proceed with a new residential mixed-use development on the east side of Third Street between Chesley Avenue and Grove Street. This development is known as Heritage Point Project (“Project”) (formerly referred to as the Grove Point Mix Use Development). On March 31, 2009, as part of the Redevelopment Plan, this Board approved a Unified Development Area which consisted of six contiguous parcels in the one-block area on Third Street. This assemblage allowed the Agency to appraise, make conditional offers, negotiate purchase agreements subject to Board approval and recruit a master developer for these six parcels that comprise the Project. One of the six properties necessary for the Project (the “subject property”) is under the ownership of the Housing Authority of Contra Costa County (Authority). The Agency, through the County’s Public Works Department, Real Property Division, has made an offer of just compensation to the Authority for the property rights required for the Project. The offer was based on the appraisal of the 2008 fair market value of said property rights by an independent, licensed appraiser. The Housing Authority has conditionally accepted this offer but requires consent from the U. S. Department of Housing and Urban Development (“HUD”). In order to obtain HUD’s consent in a timely manner, the Agency must exercise its power of eminent domain. Pursuant to Section 1245.235 of the Code of Civil Procedure, notice was given to the following persons listed on the attached Exhibit “A” whose names and addresses appear on the last equalized County Assessment Roll. This notice consisted of sending by first-class and certified mail on March 1, 2011 a Notice of Intention which notified the owners that a hearing is scheduled for April 5, 2011 at 10:00 a.m. in the Board's Chambers, at which time they may appear to be heard on the matters referred to in the notice. On March 31, 2009, this Board determined that the formation of the Unified Development Area is exempt from CEQA and a Notice of Exemption was filed on April 2, 2009. B. Scope of Hearing Per C.C.P. Section 1245.235 1. Public Interest and Necessity require the proposed project. In 2008, the Agency adopted the Sixth Amendment to the Redevelopment Plan for the North Richmond Redevelopment Project Area. This Amendment re-affirmed several blight related findings previously identified during the formation of the Project area, including that blight was pervasive throughout the project area and could not be easily eliminated without private investment dollars, or public-private partnerships. Currently, the Project area continues to exhibit conditions of physical and social blight. Since the adoption of the North Richmond Redevelopment Project Area, the community has desired the creation of a commercial district or “Town Center”, and the Agency has worked with the North Richmond community to create the Town Center as authorized by the zoning program. Phase one of the Town Center is now finished and the development has made a positive impact on the community. Phase two – the Heritage Point Project - - is now ready for implementation and calls for the acquisition of six contiguous properties on the east side of Third Street between Grove Street and Chesley Avenue. The parcel which the Agency seeks to acquire here is the sixth and final parcel that will comprise the Project, which is necessary for eliminating blight and physical decay in the urbanized North Richmond area. 2. The project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury. The Project requires the acquisition of six contiguous properties located on the east side of Third Street between Grove Street and Chesley Avenue for the new residential mixed-use development that the community would like to see implemented. Having continuity of ownership of the six parcels will allow the Agency to develop the Project as a whole, rather than as fragmented development. As part of the redevelopment process, the Agency evaluated alternative sites for the Project and determined that the six parcels which are part of the Project would result in the least impact to existing residential and commercial properties in the area consistent with achieving the goals for a Town Center. 3. The property sought to be acquired is necessary for the project. The property sought for Phase Two of the Project is necessary for completing the North Richmond Town Center in the Unified Development Area approved by this Board. The subject property to be acquired is located in the middle of the block and in the middle of the five other properties owned by the Agency. The subject property is the sixth parcel of the Project and is necessary in order for the Agency to have contiguity of ownership and the necessary land rights to develop the Project. Without this parcel, the mixed-use residential development could not be completed in a contiguous, cohesive manner. In addition, should the Agency not acquire this site, it would suffer a huge financial loss because the investment already expended for the project through the acquisition of five previous parcels would be compromised. 4. The offer of compensation required by Section 7267.2 of the Government Code has been made to owner or owners of record. The Agency, through the Public Works Department, Real Property Division, has made an offer ($250,000) of just compensation to the owner of record for the rights required for this Project. The offer was based on an appraisal of the 2008 fair market value of said property. Efforts were made to acquire the property through a negotiated purchase and sale instead of condemnation. While the Housing Authority has agreed to the acquisition, the U.S. Department of Housing and Urban Development (“HUD”) must also approve the acquisition. HUD has indicated that eminent domain is the most expedient method by which to obtain HUD consent. The Agency is now exercising its power of eminent domain in order to obtain the necessary approval from HUD. HUD will not approve the acquisition unless it occurs by eminent domain. 5. The acquisition and use of the subject property by the Agency for the purposes identified herein is for a more necessary public use than the use to which the property has been appropriated. The Agency’s acquisition of the subject property is crucial to the elimination of blight in and the overall revitalization of the area. While the subject property is currently used as public housing, the Housing Authority desires to transition out of its under-utilized housing portfolio, which includes the property located at 1538 Third Street, as well as over 30 underperforming duplexes in the North Richmond area. The Authority has agreed to the acquisition of the subject property by the Agency. However, as noted above, HUD has indicated that the Agency’s acquisition of the subject property can be accomplished most expeditiously by the Agency’s use of eminent domain. CONSEQUENCE OF NEGATIVE ACTION: Should the Agency not purchase this site, the North Richmond community will not be able to redevelop Heritage Point and complete Phase II of the North Richmond Town Center. The Agency would also suffer a significant financial loss because the investment already expended for the Project through the acquisition of five previous parcels would be compromised. CHILDREN'S IMPACT STATEMENT: Not applicable. Not applicable. CLERK'S ADDENDUM CLOSED the hearing; FOUND and DETERMINED that: a) Public Interest and Necessity require the proposed project; b) The project is planned and located in the manner that will be most compatible with the greatest public good and the least private injury; c) The property sought to be acquired is necessary for the project; and d) The offer of compensation required by Section 7267.2 of the Government Code has been made to owner or owners of record; and ADOPTED Resolution of Necessity No. 2011/126 to acquire the required property by eminent domain . ATTACHMENTS Resolution No. 2011/126 Exhibit A