Resolution - 2017-60RESOLUTION NO. 2017-60
A RESOLUTION OF THE CITY OF WEST COVINA APPROVING AND
AUTHORIZING THE PURCHASE OF THREE (3) PARCELS (APN's:
8735-002-906, 8735-002-909, 8735-002-910) FROM THE SUCCESSOR
AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT
AGENCY
WHEREAS, the former West Covina Redevelopment Agency ("Agency") was a
community redevelopment agency organized and existing under the California Redevelopment
Law; and
WHEREAS, during the Agency's existence, the Agency and the City of West Covina
("City") acquired interests in various parcels from BK.K Corporation in the vicinity of the BKK
Landfill, some of which were subsequently developed; and
WHEREAS, in August of 2004, to finance the proposed municipal golf course, the City
issued $8,165,000 in Variable Rate Lease Revenue Bonds, Series A and $5,335,000 of Variable
Rate Lease Revenue Bonds, Series B to provide financing for grading and infrastructure related
to the municipal golf course. The 2004 Lease Revenue Bonds, Series A and B total $13,500,000
(collectively "the 2004 Bonds"). While the bonds were issued by the City, it was the intent to
have the revenues from the golf course repay the bonds once operational. All work associated
with the bonds was done in preparation for the new municipal golf course. To date the
outstanding debt on the lease revenue bonds is $9,790,000 with a maturity date of May 1, 2034;
and
WHEREAS, on June 21, 2011, the Agency and City entered into an Implementation
Agreement for development of a Golf Course on former redevelopment agency land. The
agreement provides that the City is to be reimbursed by the Agency as expenditures are made;
and
WHEREAS, the Agency was dissolved effective February 1, 2012, by way of Assembly
Bill ("AB") 1x26 (as subsequently amended from time to time, the "Dissolution Law") and the
California Supreme Court's decision in California Redevelopment Association v. Matosantos
(2011) 53 Ca1.4th 231; and
WHEREAS, the Dissolution Law created a "successor agency" for each dissolved
redevelopment agency, and charged them with completing various tasks and obligations geared
towards "winding down" the affairs of their respective redevelopment agency; and
WHEREAS, the Dissolution Law created an "Oversight Board" for each successor
agency, and charged them with overseeing, reviewing, and approving enumerated successor
agency actions; and
WHEREAS, by resolution of the City Council, the City of West Covina serves as the
successor agency to the dissolved Agency ("Successor Agency"), and the West Covina
Oversight Board is the statutorily created oversight board of the Successor Agency ("Oversight
Board"); and
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WHEREAS, the Successor Agency approved a Long Range Property Management Plan
("LRPMP") for the properties, identified as APN: 8735-002-906, 8735-001-909, 8735-001-910,
City of West Covina, California, and more particularly described in Exhibit A (the "Properties"),
which has been approved by the West Covina Oversight Board and the Department of Finance.
That LRPMP provides for the sale of the Properties for fair market value; and
WHEREAS, the Successor Agency has conducted an arms-length, independent appraisal
of the Properties, which are located immediately adjacent to the BKK toxic waste site which is
currently under monitoring by the Department of Toxic Substance Control and CalRecycle; and
WHEREAS. BKK, the owner and operator of the Landfill, has been in bankruptcy for
many years, diminishing the availability of funding to protect and remediate the Properties; and
WHEREAS, the Properties currently may be used only as open space or a municipal golf
course; and
WHEREAS, the Successor Agency has not been allocated funds necessary to offset
required costs associated with maintenance of the Properties, sale of the Properties, repayment of
the outstanding bonds, or other expenses which are far in excess of the current fair market value
of the Properties; and
WHEREAS, sale of the Properties to the City is in the best interests of all affected
parties as it will relieve the Successor Agency and the other taxing entities, as defined in the
Dissolution Law, of any further liability or obligations with respect to the Properties while
providing the City a source for payment of at least some of the costs of maintenance, sale,
remediation and bond repayment; and
WHEREAS, the Successor Agency has considered the City's offer and determined that it
complies with the requirements of the Department of Finance and Oversight Board approved
Long Range Property Management Plan requiring that the Properties be disposed of at fair
market value; and
WHEREAS, the Successor Agency has determined that the sale of the Properties to the
City is categorically exempt from review under the California Environmental Quality Act
pursuant to 14 California Code of Regulations sections 15312 (sale of surplus property), 15301
(existing facilities), and 15601(b)(3) (common sense general exemption), and no development or
use of the Properties may be made which is inconsistent with the existing zoning or permitting of
the Properties without further environmental review.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA
HEREBY FINDS AND RESOLVES:
SECTION 1. The Recitals set forth above are true and correct and are incorporated
herein by this reference.
SECTION 2. Based upon the staff presentations and reports, and such other evidence
considered by the City Council concerning this matter, the City Council finds and declares that
the Properties should be purchased by the City of West Covina from the Successor Agency as-is,
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Corey W, shaw
Mayor
and where-is, for one dollar ($1.00) each, subject to any existing easements, liens, and the 2004
Bonds.
SECTION 3. City staff is further authorized and directed to take all actions necessary
and appropriate in carrying out this Resolution upon approval of the sale to the City by the
Oversight Board to the Successor Agency.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and it shall
become effective immediately upon approval.
PASSED, APPROVED, AND ADOPTED this 6th day of June, 2017.
APPROVED AS TO FORM:
Kimberly flll Barlow
City Attorney
AYES:
NOES:
ABSENT:
ABSTAIN:
Johnson, Spence, Toma, Wu, Warshaw
None
None
None
I, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City
Council of the City of West Covina, California, at a regular meeting thereof on the 6 th day of
June, 2017 by the following vote of the City Council:
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