Resoluttion 2018-32RESOLUTION NO.2018-32
RESOLUTION NO. 2018-32 - A RESOLUTION OF THE SUCCESSOR
AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT
AGENCY APPROVING AND AUTHORIZING THE SALE OF THREE (3)
AGENCY PARCELS (APN'S: 8735-002-906, 8735-002-909, 8735-002-910)
AND RELATED LICENSE AGREEMENT (APN 8735-002-018) TO THE
CITY OF WEST COVINA
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 BKK 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") lx26 (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 CalAth 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
WHEREAS, the Successor Agency has approved a Long Range Property Management
Plan ("LRPMP") for the properties, identified as APN: 8735-002-906, 8735-002-909, 8735-002-
910, City of West Covina, California, and more particularly described in Exhibit A (the
"Property"), which has been approved by the West Covina Oversight Board and the Department
of Finance. That LRPMP provides for the sale of the Property 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 for 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 property; 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 holds an unrecorded license agreement for a portion
of the landfill adjacent to the properties being sold (APN 8735-002-018), which should be
transferred with the for -sale parcels; 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 Property 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
Property may be made which is inconsistent with the existing zoning or permitting of the Properties
without further environmental review.
NOW THEREFORE, THE SUCCESSOR AGENCY TO THE FORMER WEST
COVINA REDEVELOPMENT AGENCY 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 Successor Agency concerning this matter, the Successor Agency finds and
declares that the Properties and related license should be sold to the City of West Covina as -is, and
where -is, for one dollar ($1.00) each, subject to any existing easements, liens, and the 2004 Bonds.
These sales proceeds shall be paid over to the Los Angeles County Auditor -Controller for
distribution to the affected taxing entities.
SECTION 3. As a condition of the sale to the City, the City shall apply any and all sales
proceeds associated with future sale of the Properties and license to pay off or pay down the 2004
Bonds. After payment of the 2004 Bonds in full and reimbursement to the City of all payments
made by City on the bonds, principal, interest or costs, any sale proceeds remaining shall be paid
over to the Los Angeles County Auditor -Controller for distribution to the affected taxing entities.
SECTION 4. The Successor Agency hereby requests that the Oversight Board issue a
Resolution approving the sale of the Properties to the City on substantially the terms and conditions
identified herein.
SECTION 5. The Successor Agency authorizes and directs staff to transmit a copy of this
Resolution to the Oversight Board for its consideration, and to submit such other documents and
evidence to the Oversight Board as necessary to approve the sale of the Properties pursuant to the
Successor Agency's Long Range Property Management Plan previously approved by the
Oversight Board and the Department of Finance.
SECTION 6. Successor Agency staff is further authorized and directed to take all actions
necessary and appropriate in carrying out this Resolution pursuant to Dissolution Law.
SECTION 7. The Successor Agency Secretary shall certify to the adoption of this
Resolution, and it shall become effective immediately upon approval.
PASSED, APPROVED, AND ADOPTED this 17'h day of April, 2018.
APPROVED AS TO FORM:
Kii6berly HdIl Barlow
Successor Agency Attorney
Chairman
ATTEST:
Nickolas S. Le is
Secret-ary
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 17"' day of April, 2018
by the following vote of the City Council:
AYES: Johnson, Toma, Warshaw, Wu, Spence
NOES: None
ABSENT: None
ABSTAIN: None
J t --4
ickolas S. Le -is J -
City Clerk __