02-03-2004 - Development of City Properties Located at Morganfield Avenue & Valley Boulevard (APN #'s 8742-013-900 & 8742-013-901)City of West Covina
Memorandum
AGENDA
TO: Andrew G. Pasmant, City Manager and the
City Council
FROM: Christopher J. Chung
Redevelopment Director
ITEM NO. E-3
DATE February 3, 2004
SUBJECT: DEVELOPMENT OF CITY ._ PROPERTIES LOCATED AT
MORGANFIELD AVENUE AND VALLEY BOULEVARD (APN NOS.
8742-013-900 & 8742-013-901)
RECOMMENDATION: It is recommended that theCity Council direct Planning staff to
,conduct a community meeting to obtain public input.
DISCUSSION:
This item was carried over from a previous (January 20, 2004) meeting.
The City of West Covina received two unsolicited requests (Attachment Nos. I and. 2) from
developers (Dynamic and D.C. Corporation) asking to enter into negotiations for City -owned
properties located at the northwest and northeast corners of Morganfield Avenue and Valley
Boulevard (Attachment Nos. 3, 4 and 5). Both developers are proposing single-family residential
development on the sites. In addition, D.C. Corporation also showed interest in the future
property at the Alameda Corridor East (ACE) project, which is located at the northeast corner of
Valley Boulevard and Nogales Street (Attachment No. 6). However, this property is under the
ownership of ACE and will not be available until spring 2005.
The Morganfield .Avenue and Valley Boulevard sites are approximately 2.45 acres (106,720
square feet) total. The City was granted these properties, in 1963 under a tract map dedication.
The properties are currently zoned for Public Building (P-B) and surrounded entirely on the north
by residential (Single Family and Medium Density Multiple Family) zones. Public Works
estimates that the City's annual cost to maintain the sites is $4,000 (irrigation and mowing) per
annum.
Staff recommends that a community meeting be held by the Planning Department to obtain input
from adjacent residents regarding the sale of the properties and the type of density of the
development.
Upon receiving community input, the City Council may direct staff to solicit development
proposals in which Dynamic and D.C. Corporation can participate. In doing so, the City would
benefit by the following:
• Gauge what the market value is for the properties and potentially obtain
the highest price for the City.
• Gauge the type of development that may occur.
• Sell the properties and eliminate the maintenance costs.
The City Attorney's office reviewed related tract maps and easements identified in a preliminary
title report. Legal Counsel is of the opinion that the preliminary review has not uncovered any
restrictions that would prohibit the City from selling the sites.
Should the City desire to sell the properties, there would be procedural issues that would need to
be taken into consideration. Under Government Code 54222, the City is required to provide a
written offer to sell or lease the properties (for a period of 60-days) to all public agencies, which
would include the Community Development Commission (CDC). As a result, the CDC would
have the opportunity to submit an offer to purchase the properties at that time.
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City Manager and the -City Council
February 3, 2004 ►
Page 2
Alternatives:
The City Council has several options available:
1) Direct Planning staff to conduct a community meeting prior to considering any
proposals.
2) Direct CDC staff to solicit development proposals for specific land uses (RFP's).
3) Direct CDC staff to negotiate an ENA with Dynamic or D.C. Corporation to be
brought back for future CDC consideration.
4) Direct CDC staff to reject the requests from Dynamic and D.C. Corporation.
5) ,Direct CDC staff not to pursue any development at this time.
FISCAL IMPACT:
The expense to solicit development proposals may be less than $500.00. Staff believes that a
ballpark estimate of land value for residential development can range from $8 to $12 per square
foot, yielding approximately $850,000 to $1.28 million.
PrepzVed b Benj in Cendejas Reviewed by: Mike Lee
Community Planner Redevelopment Manager
old MAA'lv/,(ez-Glasman Planning
xecteveiopment liirector city Attorney
Attachments: No. 1 — Proposal from Dynamic
No. 2 — Proposal from D.C. Corporation
No. 3 — Site Map
No. 4— Aerial
No. 5 — Photo of Sites
No. 6 — ACE Project Site Plan
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ATTACHMENT NO. 1
1
11Y A
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GROUP OF COMPANIES
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November 07, 2003
CITY OF WEST COVINA
c/o Mayor Steve Herfert
West Covina City Hall
1444 West Garvey Ave.
West Covina, CA 91790
RE: EXCLUSIVE NEGOTIATION AGREEMENT
Dear Sirs & Madam:
We would like to enter into an Exclusive Negotiation Agreement between the City of
West Covina and The Dynamic Group of Companies.
We are interested in developing the site on Morgan Field Strip located at Valley Blvd.
and Morgan Field Avenue, just outside the Galaxy Tract, the east and west sides both
are vacant lands and we would like to build a residential community.
We thank you for your time and the opportunity to hear us out.
In hopes to hear from you soon, I remain
Truly
CEO/Pres.
CC: Mr. Mike Miller, Mayor Pro -Tern
Mr. Roger Hernandez, Council Member
Ms. Shelley Sanderson, Council Member
Mr. Ben Wong, Council Member
Mr. Andrew Pasmant, City Manager
Mr. Chris Chung, Development Director
REDEVELOPMENT AGENCY
NOV 1 2 2003
'YEST GUVINA
1050 Lakes Drive, Suite 130 • West Covina, CA 91790
Office 626.931.1466 - Fax 626.931.1470 - e-mail: dynamic@norente.com
i
ATTACHMENT NO.2
D.0 Corporation RECEIVED
$l�G�liiGliL ro- t-,eY DreR t DEC 11 A10 :49
WEST "'0ViNA LiTY i'aFJV3f f
December 11,2003
Dear Mr. Pasmant,
This letter is a request to negotiate the purchase of two sites owned by the City of.
West Covina.
The first site we are interested in is located at the corner of Morganfield Avenue and
Lanesboro Drive. (See attachment #1) The legal description is
Lots 96 and 297 of Tract No. 27665, in the City of West Covina, County of Los
Angeles, State of California, as shown in map recorded in Book 697, Pages 81 through
87, inclusive of Maps, Records of Los Angeles County.
The second site we are interested in is located at the corner of Valley boulevard and
Nogales. (See attachment #2) The legal description is
Those portions of Lots 47 and 48 of Forster & Rowland Tract, in the City of West
Covina, county of Los Angeles, State of California, as shown on map recorded in Book
20, Pages 14 and 15 of Maps, Records of Los Angles county lying Westerly of the
Easterly line of land described in deed to Feseas Investment, a partnership recorded
July 1,1969 as Instrument No.1459 of Official Records, Records of Los Angeles
County.
Please advise us of the availability of these properties and the procedure for tendering a
purchase offer for them.
Your assistances in this matter is greatly appreciated.
Sincerely,
e
Don
•
ATTACHMENT NO.3
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ATTACHMENT NO.4
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ATTACHMENT NO. 5
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