HomeMy WebLinkAbout2013-07-18_OB_Agenda
OVERSIGHT BOARD FOR SUCCESSOR
AGENCY TO THE COMMUNITY
REDEVELOPMENT AGENCY OF
ATASCADERO FOR REDEVELOPMENT
AND HOUSING PURPOSES1
SPECIAL MEETING
AGENDA
Thursday, July 18, 2013
3:00 P.M.
Atascadero City Hall, Conference Room #4
6907 El Camino Real
Atascadero, California
CALL TO ORDER:
ROLL CALL: Chairperson Fonzi
Board Member Rickard
Board Member Arnold
Board Member Weathers
Board Member Jarvis
Board Member Sommer
Board Member Clemens
1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the
successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to
retain the housing assets and functions previously performed by the Community Redevelopment Agency of
Atascadero.
APPROVAL OF AGENDA:
BOARD REORGANIZATION:
1. Election of Vice Chairperson
Recommendation: Oversight Board elect one member to serve as Vice
Chairperson for the Oversight Board for Successor Agency to the Community
Redevelopment Agency of Atascadero.
PUBLIC COMMENT: (This portion of the meeting is reserved for persons wanting to
address the Board on any matter not on this agenda and over which the Board has
jurisdiction. Speakers are limited to three minutes. Please state your name for the
record before making your presentation. The Board may take action to direct the staff
to place a matter of business on a future agenda. A maximum of 30 minutes will be
allowed for Public Comment, unless changed by the Board.)
A. CONSENT AGENDA:
1. Oversight Board Special Meeting Draft Action Minutes – February 25, 2013
Recommendation: Board approve the Oversight Board Special Meeting Draft
Action Minutes of February 25, 2013.
B. BUSINESS ITEMS:
1. Long Range Property Management Plan and Broker Opinion of Value
Fiscal Impact: None
Recommendation: Oversight Board adopt the Draft Resolution approving the
Long-Range Property Management Plan. [City Manager]
C. BOARD MEMBER COMMENTS:
D. ADJOURNMENT:
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in
an Oversight Board meeting, please contact the City Clerk’s Office at (805) 470-3400. Notification at
least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring
that reasonable arrangements can be made to provide accessibility to the meeting.
ITEM NUMBER: OB – 1
DATE: 07/18/13
Oversight Board for Successor Agency
to the Community Redevelopment Agency
of Atascadero
Election of Vice Chairperson
RECOMMENDATION:
Oversight Board elect one member to serve as Vice Chairperson for the Oversight
Board for Successor Agency to the Community Redevelopment Agency of Atascadero.
DISCUSSION:
The Oversight Board consists of seven (7) members appointed by City and County
officials. The Mayor of Atascadero appoints two (2) of the seven (7) members on the
Board.
Mayor O’Malley announced at the June 25, 2013 Council meeting, that he has
appointed City Manager Rachelle Rickard to the Board, replacing former City Manager
Wade McKinney. Mr. McKinney was the Vice-Chair of the Board.
The Board selects its Vice Chairperson by election. The by-laws state that the term of
this position is one year.
Recommended Voting Procedures: All actions must be taken on a majority vote of the
total membership of the Board. Given that the Oversight Board has seven (7)
members, four (4) affirmative votes are needed to pass a motion. A vote will be taken
and the Vice Chairperson will be elected.
ITEM NUMBER: OB – A-1
DATE: 07/18/13
OVERSIGHT BOARD FOR SUCCESSOR
AGENCY TO THE COMMUNITY
REDEVELOPMENT AGENCY OF
ATASCADERO FOR REDEVELOPMENT
AND HOUSING PURPOSES1
SPECIAL MEETING
DRAFT MINUTES
Monday, February 25, 2013
2:30 P.M.
Atascadero City Hall, Conference Room #4
6907 El Camino Real
Atascadero, California
CALL TO ORDER:
Chairperson Fonzi called the meeting to order at 2:31 p.m.
ROLL CALL:
Present: Board Members Clemens, Sommer, Vice Chairperson McKinney
and Chairperson Fonzi
Absent: Board Members Jarvis, Patterson, and Weathers
1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the
successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to
retain the housing assets and functions previously performed by the Community Redevelopment Agency of
Atascadero.
ITEM NUMBER: OB – B-1
DATE: 07/18/13
Oversight Board for City of Atascadero
February 25, 2013
Page 2 of 3
Staff Present: Administrative Services Director Rachelle Rickard, and City
Clerk/Assistant to the City Manager Marcia McClure Torgerson.
APPROVAL OF AGENDA:
MOTION: By Board Member Sommer and seconded by Vice Chairperson
McKinney to approve the agenda.
Motion passed 4:0 by a roll-call vote.
PUBLIC COMMENT: None
Board Member Jarvis arrived at the meeting.
A. CONSENT AGENDA:
1. Oversight Board Special Meeting Draft Action Minutes – January 3, 2013
Recommendation: Board approve the Oversight Board Special Meeting Draft
Action Minutes of January 3, 2013.
MOTION: By Chairperson Fonzi and seconded by Vice Chairperson
McKinney to approve the Consent Calendar.
Motion passed 3:0 by a roll-call vote. (Clemens & Sommer
abstained)
B. BUSINESS ITEMS:
1. Approval of Recognized Obligation Payment Schedule
Fiscal Impact: None for this action.
Recommendation: Oversight Board adopt Draft Resolution approving
Recognized Obligation Payment Schedule (ROPS) for the period of July 1,
2013 through December 31, 2013. [Administrative Services]
Administrative Services Director Rachelle Rickard gave the staff report and answered
questions from the Board.
PUBLIC COMMENT: None
MOTION: By Vice Chairperson McKinney and seconded by Board
Member Clemens to adopt Draft Resolution approving
Recognized Obligation Payment Schedule (ROPS) for the
period of July 1, 2013 through December 31, 2013.
Motion passed 5:0 by a roll-call vote. (OB Resolution No.
2013-001)
ITEM NUMBER: OB – B-1
DATE: 07/18/13
Oversight Board for City of Atascadero
February 25, 2013
Page 3 of 3
C. BOARD MEMBER COMMENTS:
The next scheduled meeting is Thursday, April 18 th at 3:00 p.m.
D. ADJOURNMENT:
Chairperson Fonzi adjourned the meeting at 2:45 p.m.
MINUTES PREPARED BY:
______________________________________
Marcia McClure Torgerson, C.M.C.
City Clerk / Assistant to the City Manager
ITEM NUMBER: OB – B-1
DATE: 07/18/13
Oversight Board for Successor Agency
to the Community Redevelopment Agency
of Atascadero
Long Range Property Management Plan
and Broker Opinion of Value
RECOMMENDATION:
Oversight Board adopt Draft Resolution approving the Long-Range Property
Management Plan.
DISCUSSION:
As part of the dissolution of Redevelopment in California and Pursuant to Health and
Safety Code (HSC) Section 34179.7, the Department of Finance (DOF) has stated that
they will issue a finding of completion to the successor agency once appropriate
conditions were met and verified.
On March 8th, 2013, the City of Atascadero received a letter from the Department of
Finance notifying the City that a Finding of Completion has been granted. The letter
specified that the Agency is required to submit a Long-Range Property Management
Plan to Finance for review and approval, per HSC section 34191.5 (b), within six
months from the date of the letter.
The Draft Long-Range Property Management Plan summarizes a list of eight assets
owned and controlled by the Successor Agency. Only one of the assets, th e temporary
City Hall, is a property that includes fee simple land. The property is proposed in the
Long-Range Property Management Plan to be liquidated through a disposition process.
This building is a temporary relocation of City Hall due to damage sus tained in the 2003
San Simeon Earthquake. There is currently a lease agreement between the City and
the Former Community Redevelopment Agency (now the Successor Agency). FEMA
funds have been used to pay for the lease and are currently under dispute. The other
seven assets include one easement agreement and six improvements that are located
on City property.
ITEM NUMBER: OB – B-1
DATE: 07/18/13
Once the Oversight Board reviews and approves the Draft Long-Range Property
Management Plan, the Plan will be submitted to the DOF. The DOF will re view the Plan
and pending approval, the temporary City Hall property may be sold. As part of the
Long-Range Property Management Plan, there is a Broker Opinion of Value (BOV) that
has been completed on the temporary City Hall. The BOV will assist with th e sale of the
building once the Property Management Plan has been approved.
In light of the pending dispute with FEMA regarding the temporary City Hall, the
recommendation in the property management plan is that the temporary City Hall be
sold and that the sale proceeds be placed into a segregated account of the Successor
Agency (“Segregated Account”) pending a resolution of the dispute with FEMA.
Depending upon the resolution of the dispute with FEMA, there may or may not be
revenue from the sale of the temporary City Hall available to be distributed to affected
taxing agencies per AB 1484. If the revenue is available to be distributed to the affected
taxing agencies, the taxing agencies will receive their proportional share of the
proceeds.
FISCAL IMPACT:
These is no fiscal impact of the Board’s adoption of the recommended Resolution
approving the Long-Range Property Management Plan.
ATTACHMENTS:
1. Finding of Completion
2. Draft Long-Range Property Management Plan
3. Broker Opinion of Value
4. Draft Resolution
ITEM NUMBER: OB – B-1
DATE: 07/18/13
DRAFT RESOLUTION
RESOLUTION OF THE OVERSIGHT BOARD FOR SUCCESSOR
AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY
OF ATASCADERO, APPROVING THE LONG-RANGE PROPERTY
MANAGEMENT PLAN PURSUANT TO CALIFORNIA HEALTH
AND SAFETY CODE SECTION 34191.5
WHEREAS, pursuant to Section 34191.5 of the California Health and Safety Code, City of
Atascadero has prepared a Long-Range Property Management Plan, for purposes of submission to the
Oversight Board for the Successor Agency for approval, the State Department of Finance (“DOF”), the
San Luis Obispo County administrative officer (“County Administrative Officer”), and the San Luis
Obispo County Auditor-Controller (“County Auditor”); and,
WHEREAS, The Oversight Board for the Successor Agency to the Community Redevelopment
Agency of Atascadero has reviewed the proposed Long-Range Property Management Plan, for purposes
of submission the State Department of Finance (“DOF”), the San Luis Obispo County administrative
officer (“County Administrative Officer”), and the San Luis Obispo County Auditor-Controller (“County
Auditor”).
NOW, THEREFORE, BE IT RESOLVED by the Oversight Board for Successor Agency to the
Community Redevelopment Agency of Atascadero hereby resolve as follows:
Section 1. The Oversight Board hereby approves the proposed Long-Range Property Management
Plan Exhibit A.
Section 2. The City Manager is hereby directed to submit the approved Long-Range Property
Management Plan to the DOF.
PASSED AND ADOPTED by the Oversight Board for Successor Agency to the Community
Redevelopment Agency of Atascadero on the 18 day of July 2013, by the following vote:
ITEM NUMBER: OB – B-1
DATE: 07/18/13
AYES:
NOES:
ABSENT:
ADOPTED:
OVERSIGHT BOARD FOR SUCCESSOR
AGENCY TO THE COMMUNITY
REDEVELOPMENT AGENCY OF
ATASCADERO
By: ________________________________
Roberta Fonzi, Chairperson
ATTEST:
___________________________________
Marcia McClure Torgerson, Board Secretary
LONG-RANGE PROPERTY
MANAGEMENT PLAN
CITY OF ATASCADERO SUCCESSOR AGENCY
JUNE 2013
Prepared By:
KOSMONT COMPANIES
865 S. Figueroa Street, #3500
Los Angeles, CA 90017
Telephone: (213) 417-3300
www.kosmont.com
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 2 of 14
Table of Contents
Section Page
1.0 Introduction ........................................................................................................................ 3
2.0 Long-Range Property Management Plan ......................................................................... 4
Asset #1: 6901 El Camino Real ........................................................................................... 7
Asset #2: Portable Building .................................................................................................. 7
Asset #3: Parking Lot Paving ............................................................................................... 8
Asset #4: Construction Access Easement ........................................................................... 9
Asset #5: Sunken Garden Improvements .......................................................................... 10
Asset #6: Zoo Improvements ............................................................................................. 11
Asset #7: Wayfinding Signs ............................................................................................... 12
Asset #8: Maiden Statue Repairs ....................................................................................... 13
3.0 Appendices ....................................................................................................................... 14
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 3 of 14
1.0 Introduction
1.1 Background & Purpose
Health and Safety Code Section 34191.5, added by AB 1484 (signed into law on June 27,
2012), requires each Successor Agency (“SA”) to prepare and approve a Long-Range Property
Management Plan (“LRPMP”) that addresses the disposition and use of the real properties of
the former redevelopment agency. Properties held by a successor agency cannot be disposed
of until the State Department of Finance (“DOF”) has approved the LRPMP. This document is
the LRPMP for the Successor Agency to the former Atascadero Community Redevelopment
Agency.
1.2 Successor Agency Asset Summary
There are eight (8) assets owned and controlled by the Successor Agency. Only one of the
assets (Asset #1 in the list that follows) is a property that includes fee simple land. This
property is designated to be liquidated through a disposition process. The remaining seven (7)
assets include one (1) easement agreement and six (6) property improvements that are located
on property owned by the City of Atascadero.
# Address/Description APN Purpose
Public Econ. Dev. Liquid. Enf. Oblig.
1 Property: 6907 El Camino Real 029-361-045 X
2 Improvements: Portable Building N/A X
3 Improvements: Parking Lot
Paving N/A X
4 Easement: Construction Access N/A X
5 Improvements: Sunken Garden N/A X
6 Improvements: Zoo N/A X
7 Signage: Wayfinding Signs N/A X
8 Improvements: Maiden Statue
Repairs N/A X
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 4 of 14
2.0 Long-Range Property
Management Plan (PMP)
Asset #1: 6901 El Camino Real
Parcel Data – Asset #1
Address 6907 El Camino Real
APN 029-361-045
Lot Size 2.26 acres
Use Temporary City Hall
Zoning DC (Downtown Commercial)
General Plan Downtown (D)
Current Title Former Redevelopment Agency
Building Commercial building, currently used as a temporary City Hall facility; 31,436
square feet
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 5 of 14
Acquisition & Valuation Information – Asset #1
Purchase Date 12/21/2004
Purchase Price $2,984,661 (includes improvement and rehabilitation costs)
Funding Source Tax increment / public
Purpose Revitalization: Improvement of Retail District
Estimate of Current Value $1.26 to $1.63 million
Method of Valuation Broker Opinion of Value provided by Kosmont Realty Corp.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 6 of 14
Revenues Generated by Property & Contractual Requirements – Asset #1
City / Successor
Agency Lease
Agreement
In May 2005, a Lease Agreement was entered into between City of
Atascadero and Atascadero Community Redevelopment Agency (CRA)
for the temporary City Hall for a four year term. In February 2010, the
City and CRA entered into another Lease Agreement for the temporary
City Hall for the period of March 1, 2010 and expired on December 31,
2012. The Agreement continues today on a month-to-month basis. The
consideration for the lease is $31,133.00 per month which was paid by
the City to the CRA and to the Successor Agency of the CRA. The City
received from the Federal Emergency Management Agency (FEMA)
reimbursement for the rental payments that the City paid to CRA and to
the Successor Agency. There is currently a dispute between the City
and FEMA regarding the reimbursement payments which may impact
the disposition of the sale proceeds of the temporary City Hall.
History of Environmental Contamination or Remediation Efforts – Asset #1
None No history of contamination, designation as Brownfield site, or
remediation
Transit-Oriented Development & Advancement of Agency Planning Objectives – Asset #1
Potential for TOD Not applicable
Agency Planning Objectives
Continued public service as temporary City Hall for next 3 – 9
months, then disposition to-be-selected private owner that will
attract retail user(s)
Recommendation for Disposition – Asset #1
Dispose to
Private
Buyer
Continued public service as temporary City Hall for next 3 – 9 months, then
disposition to an owner that will attract retail user(s) which conforms to the adjacent
uses in downtown Atascadero. In light of the pending dispute with FEMA regarding
the temporary City Hall, the Recommendation is that the temporary City Hall be sold
and that the sale proceeds be placed into a segregated account of the Successor
Agency (“Segregated Account”) pending a resolution of the dispute with FEMA.
Depending upon the resolution of the dispute with FEMA, there may or may not be
revenue from the sale of the temporary City Hall to be distributed to affected taxing
agencies per AB 1484.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 7 of 14
Asset #2: Improvements – Portable Building
Asset Data – Asset #2
Address 6550 El Camino Real
Current Title Improvements: Former Redevelopment Agency
Land: City of Atascadero
Building/Size Portable building, currently vacant; approximately 590 square feet
Acquisition & Valuation Information – Asset #2
Purchase Date 3/24/2009
Purchase Price $10,400
Funding Source Tax increment / public
Purpose Office space originally used for Chamber of Commerce and
subsequently used by Main Street, a non-profit corporation.
Estimate of Current Value
$0 (or salvage value less removal/demolition costs); based on
outdated condition of structure and need to remove it from City-
owned property.
Revenues Generated by Property & Contractual Requirements – Asset #2
City / Successor
Agency Lease
Agreement
There is currently no active lease for the portable building which the
Successor Agency controls and is located on City-owned property. The
City desires that the building be removed from the property which will
require the Successor Agency to pay the cost of having it demolished.
This cost of demolition is estimated at $9,750.
Recommendation for Disposition – Asset #2
Demolish
This asset is beyond its intended period of utilization and needs to be demolished so
that it no longer occupies City of Atascadero-owned land. The Successor Agency
will need to fund the cost of demolition so that the City-owned property can return to
its previous state prior to the Successor Agency-owned improvement being located
there. The Successor Agency intends to include the cost of removal/demolition on
the January – June 2014 Recognized Obligation Payment Schedule (ROPS).
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 8 of 14
Asset #3: Improvements – Parking Lot Paving
Asset Data – Asset #3
Address 6005 EL Camino Real
Current Title Land: City of Atascadero
Improvements Asphalt paving on City-owned parking lot (approximately 16,000 square feet)
Acquisition & Valuation Information – Asset #3
Improvement Date 1/5/2005
Improvement Price $215,944
Funding Source Tax increment / public
Purpose Maintenance of parking lot that supports Downtown amenities
Estimate of Current Value $0 (based on inability to sell on open market and ongoing
maintenance costs)
Revenues Generated by Property & Contractual Requirements – Asset #3
City / Successor
Agency Agreement
There is no revenue generated from the Successor Agency-owned
improvements. There is an annual maintenance cost in the range of
$2,500 annually and approximately $15,000 every 7 to 8 years for major
maintenance.
Recommendation for Disposition – Asset #3
Transfer to
City as
Public Use
This asset is installed as an affixed improvement to the underlying land asset. As
such it would have no value in the open market net of removal and replacement
costs. The asphalt cover has ongoing maintenance costs. The City of Atascadero
desires to take ownership of these improvements “as is” and will be responsible for
ongoing maintenance and eventual replacement of the improvements.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 9 of 14
Asset #4: Easement – Construction Access
Asset Data – Asset #4
Address Atascadero Creek Reservation #3
Current Title Land: City of Atascadero
Easement Right to use property owned by the City of Atascadero
Acquisition & Valuation Information – Asset #4
Easement Date 6/28/2006
Easement Price $60,000
Funding Source Tax increment / public
Purpose Access to neighboring bridge to conduct repairs.
Estimate of Current Value $0 (based on inability to sell a property specific easement for
access to bridge for construction purposes).
Revenues Generated by Property & Contractual Requirements – Asset #4
City / Successor
Agency Agreement
There is no revenue generated from the easement held by the
Successor Agency.
Recommendation for Disposition – Asset #4
Discontinue
Easement
This asset would have no value in the open market and therefore it is best the
easement be vacated in order to minimize confusion on the title to the City of
Atascadero-owned property.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 10 of 14
Asset #5: Improvements – Sunken Gardens
Asset Data – Asset #5
Address 6505 El Camino Real
Current Title Land: City of Atascadero
Improvements Improvements to a City of Atascadero-owned park
Acquisition & Valuation Information – Asset #5
Improvement Date 12/3/2005
Improvement Price $1,242,766
Funding Source Tax increment / public
Purpose
Improvements to a City-owned park that is located in the former
Project Area such as sidewalk, streetscape, turf and irrigation
improvements.
Estimate of Current Value Improvements: $0 (based on inability to sell on open market and
ongoing maintenance costs)
Revenues Generated by Property & Contractual Requirements – Asset #5
City / Successor
Agency Agreement
There is no revenue generated from the Successor Agency-owned
improvements. There is an annual maintenance cost in the range of
$5,000, which is a proportional component of the $180,000 in total spent
annually to maintain the park.
Recommendation for Disposition – Asset #5
Transfer to
City as
Public Use
This asset would have no value in the open market and has ongoing maintenance
costs. The City of Atascadero desires to take ownership of these improvements “as
is” and will be responsible for ongoing maintenance and eventual replacement of the
improvements which are on City-owned land.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 11 of 14
Asset #6: Improvements – Zoo
Asset Data – Asset #6
Address 9100 Morro Rd
Current Title Land: City of Atascadero
Improvements Improvements to a City of Atascadero-owned zoo including entrance and
restroom.
Acquisition & Valuation Information – Asset #6
Improvement Date Entrance: 1/11/2010; Restroom: 9/4/2009
Improvement Price $1,097,012
Funding Source Tax increment / public
Purpose Improving a City-owned zoo located adjacent to the former
Project Area
Estimate of Current Value Improvements: $0 (based on inability to sell on open market and
ongoing maintenance costs)
Revenues Generated by Property & Contractual Requirements – Asset #6
City / Successor
Agency Agreement
There is no revenue generated from the Successor Agency-owned
improvements. Annual maintenance costs are approximately $29,000.
Recommendation for Disposition – Asset #6
Transfer to
City as
Public Use
This asset which is affixed to City-owned land would have no value in the open
market and has ongoing maintenance costs. The City of Atascadero desires to take
ownership of these improvements “as is” and will be responsible for ongoing
maintenance and eventual replacement of the improvements.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 12 of 14
Asset #7: Improvements – Wayfinding Signs
Asset Data – Asset #7
Address Located throughout downtown area
Current Title Land: City of Atascadero
Improvements Wayfinding signs located throughout Downtown
Acquisition & Valuation Information – Asset #7
Improvement Date 12/13/2007
Improvement Price $12,082
Funding Source Tax increment / public
Purpose Installation of wayfinding signs located in the former Project Area
Estimate of Current Value Improvements: $0 (based on inability to sell on open market and
ongoing maintenance costs)
Revenues Generated by Property & Contractual Requirements – Asset #7
City / Successor
Agency Agreement
There is no revenue generated from the Successor Agency-owned way
finding signs with annual maintenance costs in the range of $1,500.
Recommendation for Disposition – Asset #8
Transfer to
City as
Public Use
This asset would have no value in the open market and has ongoing maintenance
costs. The City of Atascadero desires to take ownership of these improvements “as
is” and will be responsible for ongoing maintenance and eventual replacement.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 13 of 14
Asset #8: Improvements – Maiden Statue Repairs
Asset Data – Asset #8
Address 6505 El Camino Real
Current Title Land: City of Atascadero
Improvements Repairs to a City of Atascadero-owned statue
Acquisition & Valuation Information – Asset #8
Improvement Date 3/29/2007
Improvement Price $104,273
Funding Source Tax increment / public
Purpose Repairing a City-owned statue located in the former Project Area
Estimate of Current Value Improvements: $0 (based on inability to sell on open market and
ongoing maintenance costs)
Revenues Generated by Property & Contractual Requirements – Asset #8
City / Successor
Agency Agreement
There is no revenue generated from the Successor Agency-owned
improvements with annual maintenance cost in the range of $2,000.
Recommendation for Disposition – Asset #8
Transfer to
City as
Public Use
This asset would have no value in the open market and has ongoing maintenance
costs. The City of Atascadero desires to take ownership of these improvements “as
is” and will be responsible for ongoing maintenance and eventual replacement.
Long-Range Property Management Plan
City of Atascadero Successor Agency
June 2013
Page 14 of 14
3.0 Appendices
Appendix A: Relevant Sections of Community Redevelopment Agency Redevelopment
Plan – May, 2003 (Originally Adopted July, 1999)
Section 720 – GOALS, OJECTIVES AND PROGRAMS FOR INITIAL PLAN
The Agency’s goals and objectives for the initial Implementation Plan for the Atascadero
Redevelopment Project shall be as follows:
720.1 Improvement of the Downtown Area which is generally bounded by Highway 101,
Highway 41, Bajada Avenue and Rosario Avenue. Potential project include the following:
[Subset List]
Expansion of entertainment facilities in the downtown including the expansion of the existing
movie theater. The Agency will encourage and target entertainment facilities in the downtown to
encourage public gatherings and informal uses of public spaces. Encouragement will include
marketing for targeted uses, assisting in project planning and other activities to promote private
investment. The Agency will also encourage the expansion of the existing theater complex in
the downtown. The goal will be to continue to have the complex a community focal point, draw
people to the downtown and expand the experience they have, maintain the facility in the
downtown.
Addition of anchor tenants to increase activity in the downtown. This project will include the
Agency assisting in the attraction of major downtown tenants to stabilize the retail mix. The
Agency may assist in marketing, planning and investment consistent with the Redevelopment
Plan to capture tenants that will attract people to downtown. These tenants would include
restaurants, entertainment and retail that attract people by the name of business practices.
Improvements of and additions to the downtown streetscape. This project includes the
improvement of public infrastructure to promote a downtown pedestrian atmosphere.
Improvements include new sidewalks, street trees, landscaping, benches, waste cans, signs,
etc.
Façade Improvements in the downtown to capitalize on Atascadero’s character and improve the
retail/pedestrian atmosphere. In this project, the Agency would work with individual property
owners to improve the exterior appearances of buildings. Consistent with Downtown Master
Plan, a design theme will be promoted to accentuate the Atascadero Colony and improve the
pedestrian, retail climate. Participation will include façade easements, loans, designs, fee
wavier etc.
Aggregation of sites and buildings for a major employment, office or retail user. The Agency will
assist major employers in locating suitable sites. This may include joining multiple properties to
provide and appropriate sized parcel. The Agency will first look to the downtown area.
1601 Sepulveda #382, Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
Memorandum
To: Wade Mckinney, City Manager, City of Atascadero, California
Audrey Banks, Management Analyst, City of Atascadero, California
From: Larry J. Kosmont, CRE®, Broker, Kosmont Realty Corporation
(Broker #01770428)
Date: June 13, 2013
Subject: Broker Opinion of Value – Temporary City Hall Building (6907 El Camino
Real, Atascadero, CA 93422; APN: 029-361-045)
I. Background & Valuation Summary
As part of efforts to comply with California Assembly Bill No. 1484 (“AB 1484”), the Successor
Agency to the former City of Atascadero Redevelopment Agency (“Successor Agency”) is
currently in the process of completing a Long-Range Property Management Plan (“PMP”), which
delineates the Successor Agency’s strategy for the utilization and/or disposition of real estate
assets of the dissolved City of Atascadero Redevelopment Agency (“RDA”).
Among the assets of the former RDA is the facility currently utilized by the City of Atascadero
(“City”) as a temporary City Hall (“Property”). The Property is recommended within the PMP for
liquidation by the Successor Agency, the proceeds from which will be distributed as property tax
to the corresponding local taxing agencies consistent with AB 1484.
The PMP must include an estimate of value for each former RDA property, and as part of PMP
preparation efforts, the City has requested that Kosmont Realty Corporation (“KRC”; California
brokerage firm license #01770428) prepare this Broker Opinion of Value (“BOV”) to evaluate the
range of fair market value of the Property as supported by current market conditions and other
relevant data.
Based on the sales comparison methodology, KRC estimates that the value of the Property is
between $40.00 to $52.00 per square foot (“PSF”), or $1.26 to $1.63 million.
II. Property Information
Location
The Property is comprised of a temporary City Hall facility and a surrounding parking lot. Prior
to serving as a temporary City Hall, the Property operated as a bowling alley. The Property is
approximately 2.26 acres in size and located in a cluster of other properties that includes a
movie theater and other retail businesses. The cluster of properties is located northwest of the
City of Atascadero
KRC Broker Opinion of Value
June 13, 2013
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1601 Sepulveda #382 Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
intersection of El Camino Real and Santa Ysabel Avenue. The Property address is 6907 El
Camino Real, Atascadero, CA 93422 (Assessor Parcel Number, or “APN” 029-361-045).
A Regional Map, City Location Map, Property Aerial Map, and a Parcel Map are provided as
Exhibits A, B, C, and D respectively.
Description
The building on the Property that houses the temporary City Hall is one story and is
approximately 31,436 square feet in size. Adjacent to the building and located on the Property
are 56 parking spaces in addition to shared parking space on neighboring properties controlled
CC&R agreement. Total lot size is approximately 2.26 acres.
Existing Conditions
The Property is zoned for commercial use (‘Downtown Commercial’ zoning designation and
‘Downtown’ General Plan designation) and located among a cluster of properties that contain
commercial uses. The property is adjacent to a large green belt on the western edge. A large
retail shopping center is located to the east, on the other side of Ysabel Avenue.
Once the City vacates the temporary City Hall building to reoccupy the original City Hall, it is
unlikely that a tenant could utilize the space in its current configuration. The Property is likely to
need extensive renovations allowing it to return to its previous commercial retail use.
It should also be noted that any potential buyer of the property will be taking possession of a
building that is completely vacant given that the City will no longer be using it as a temporary
City Hall. Given the retail vacancy rate in the City of Atascadero remains elevated (7.8% in the
first quarter of 2013)1 as a result of the recent recession, securing appropriate tenants for the
building may be challenging.
III. Valuation Methodology
Standard methodologies for the valuation of commercial property include the replacement cost
methodology, income capitalization methodology, and the sales comparison methodology.
Replacement Cost Methodology
Given the unique circumstance of the current use of the Property as a temporary City Hall, the
replacement cost methodology is less relevant, as the current replacement cost of the Property
would include the value of special improvements completed to retrofit the Property from its
previous use as a movie theater for its current governmental use. Should the property be
liquidated as recommended by the Successor Agency, significant renovations would be
necessary to restore the Property to income-producing retail occupancy conditions consistent
with Downtown Commercial zoning.
1 Source: CoStar Group, Inc.
City of Atascadero
KRC Broker Opinion of Value
June 13, 2013
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1601 Sepulveda #382 Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
Income Capitalization Methodology
The income capitalization methodology is also deemed less relevant, due primarily to the lack of
comparable retail leases in the local area and significant uncertainties with regard to tenant
improvements necessary to restore the Property to income-producing retail conditions.
Sales Comparison Methodology
KRC utilizes the sales comparison methodology in this BOV, due primarily to the availability of
recent comparable property sales in the immediate local area. Four recent comparable sales
were evaluated on a price per-square-foot basis. The average range of sales price per-square-
foot was then adjusted to account primarily for necessary tenant improvements and the vacant
nature of the property when compared to fully-leased comparable sales.
IV. Valuation Analysis – Sales Comparison
Four recent comparable commercial sales were evaluated on a price per-square-foot basis:
Address Sale Date Lot
Acres
Building
SF Sales Price $ PSF
SUBJECT PROPERTY 2.26 31,436
8965 El Camino Real 4/23/2013 3.7 27,588 $1,375,000 $49.84
5890 Entrada Ave 12/28/2012 0.2 4,900 $375,000 $76.53
6900-02 El Camino Real 8/10/2012 1.4 11,400 $850,000 $74.56
8310 Morro Rd 3/15/2012 0.1 2,600 $125,000 $48.08
Based on the above comparable sales, values range from approximately $50 to $75 PSF. The
most recent comparable sale at 8965 El Camino Real ($50 PSF) most closely resembles the
Property in terms of building square footage and lot acreage. It should be noted, however, that
this building was fully-leased upon sale. Given the similarity to the comparable sale in the lower
half of the value range, the unadjusted range of the Property value is estimated at
approximately $50 to $65 PSF, or approximately $1.57 million to $2.04 million.
In order to account for the cost and risk associated with installation of significant tenant
improvements necessary to restore the Property to income-producing retails conditions and the
vacant nature of the property when compared to the fully-leased comparable sales, this range of
value is adjusted by an expense and vacancy risk factor of 20%, or approximately $10 to $15
per square foot as illustrated below:
Unadjusted $ PSF Unadjusted
Property Value Adjusted $ PSF Adjusted Property
Value
$50.00 $1,571,800 $40.00 $1,257,440
$55.00 $1,728,980 $44.00 $1,383,184
$60.00 $1,886,160 $48.00 $1,508,928
$65.00 $2,043,340 $52.00 $1,634,672
City of Atascadero
KRC Broker Opinion of Value
June 13, 2013
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1601 Sepulveda #382 Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
Based on the sales comparable analysis and the adjustment to account for the improvement
expense and vacancy risk, the value of the Property is estimated at approximately $40.00 to
$52.00 per square foot, or approximately $1.26 to $1.63 million.
VI. Conclusion – Broker Opinion Value
Based on the sales comparison methodology, KRC estimates the value of the Property between
approximately $40 to $52 per square foot, or approximately $1.26 to $1.63 million.
Property Low Range High Range
APN 029-361-045 (Temporary City Hall) $1.26 million $1.63 million
City of Atascadero
KRC Broker Opinion of Value
June 13, 2013
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1601 Sepulveda #382 Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
Exhibit A - Regional Map
Source: ESRI (2013)
City of Atascadero
KRC Broker Opinion of Value
June 13, 2013
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1601 Sepulveda #382 Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
Exhibit B – City Location Map
Source: ESRI (2013)
City of Atascadero
KRC Broker Opinion of Value
June 13, 2013
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1601 Sepulveda #382 Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
Exhibit C - Property Aerial Map
Source: City of Atascadero (2013)
City of Atascadero
KRC Broker Opinion of Value
June 13, 2013
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1601 Sepulveda #382 Manhattan Beach California 90266 ph 213.417.3300 fx 213-417.3311 www.kosmontrealty.com
Exhibit D - Assessor Parcel Map
Source: San Louis Obispo County Tax Assessor (2013)