|Posted by [email protected] on July 19, 2015 at 2:50 PM|
Friday afternoon started off by visiting with a few business owners in Norco, listened to their experience and why they almost did not open their store in Norco. They pushed through and after 8 months of dealing with the city they were able to open their doors. After that I was able to visit with neighbors informing them of my intentions to run for City Council and letting them vent on their experiences and frustrations as well. Thirty of them signed my nomination papers for Norco City Council. We have issues that have to be resolved.
Saturday I worked with our volunteer group Norconian's helping Norconian's on a lot clean up at a senior / Veterans home. Heavy lifting, cleanup, organization and hauling off junk to the dump. What an amazing group of volunteers that always step up to help at no cost to the home owner.
Sunday morning I took a drive down to Auto Mall Drive to look a 1.63 acre parcel (APN 126-120-03) that was approved on 07 /15 /15 by Council to amend the agreement with Kosmont Realty Corporation for real estate services to sell the Successor Agency Properties.
Little History on the purchase of the property:
On June 4, 2014, the Successor Agency (SA) to the former Norco Community Redevelopment Agency entered into agreement for real estate services with Kosmont Realty Corporation (KRC) for disposition of SA owned real properties through the Department of Finance (DOF) approved Auction.com. Due to the unimproved nature of the properties to be sold, Auction.com did not accept the properties for placement and disposition through the electronic auction process.
Staff is recommending that the Successor Agency (SA) approve the first amendment to the agreement for real estate services designating KRC as the City’s broker and authorize KRC to sell the properties through the use of traditional real estate brokerage services consistent with the City’s Long-Range Property Management Plan (PMP) and the applicable provisions of AB 1484 and DOF regulations.
BACKGROUND/ANALYSIS: As part of the dissolution of redevelopment agencies in California, each Successor Agency is required to inventory all assets owned by the former Redevelopment Agency and to develop a Long-Range Property Management Plan (PMP) for the approval of the Oversight Board and the State of California Department of Finance (DOF). The PMP addressed the disposition and use of real properties of the former RDA, including whether certain properties will be sold to a third party pursuant to PMP disposition process. The Successor Agency’s PMP relative to these parcels was approved by the DOF on October 23, 2013. The Successor Agency’s PMP includes three (3) vacant land parcels which were previously approved by the SA to be sold through DOF approved Auction.com electronic platform.
APNs 122-070-023 and 122-070-026 is a single parcel, 0.4-acre vacant lot located adjacent to 1695 Hidden Valley Parkway and zoned Commercial (which I believe is the empty lot next to Shell gas station. The property was acquired by the former RDA on February 21, 2001 at a cost of $65,000. The most recent appraisal on May 3, 2013 valued the parcel at $130,000. This parcel was acquired for the purpose of encouraging redevelopment.
APN 126-120-038 is a 1.63-acre vacant lot located in the Norco Auto Mall next to the former Mitsubishi dealership on Auto Mall Drive. The property was approved to be acquired by the former RDA on November 5, 2008 at a cost of $1,330,000. The most recent appraisal on May 3, 2013 valued the parcel at $780,000. The property was acquired by the former RDA for potential expansion of the Auto Mall.
Due to the unimproved nature of the properties to be sold, Auction.com did not accept the properties for placement and disposition through the electronic auction process. Therefore, staff is recommending that the Successor Agency approve the attached first amendment to agreement for real estate services with KRC to sell the vacant land parcels described above using the traditional real property brokerage services. The initial agreement states that if the parcels are not sold through the auction process, Kosmont Realty Corporation will sell them using regular brokerage services. To the extent that regular brokerage service is necessary, KRC will be compensated based on an approved commission agreement.
FISCAL IMPACT: The attached agreement provides for commission of 4% of the gross sales price which will be paid upon close of escrow. All monies derived from the sale of Successor Agency owned parcels will be submitted to the County Auditor Controller for distribution to affected taxing entities which includes the City of Norco. Norco will receive some monies from the Sale from the County Auditor Controllers office.
My hope is to see these properties are cleaned up (the property on Auto Mall Drive is littered with junk and weeds), advertised, sold and developed bringing in some much needed fees / revenue to Norco.
I will continue to work on encouraging EDAC to market / advertise these properties for commercial, retail projects which will bring in the Sales Tax that is needed instead of trying to get residents to pay more taxes to make up the deficit in our Capital Improvement Funds.