ITEM:

CONSENT CALENDAR

 

5.

CONSIDER APPROVAL OF COMPENSATION AGREEMENT REGARDING THE TRANSFER OF FORMER CITY OF MONTEREY REDEVELOPMENT AGENCY PROPERTY AT 300 PACIFIC sTREET, mONTEREY, TO THE CITY OF MONTEREY

 

Meeting Date:

November 13, 2017

Budgeted:

N/A

 

From:

David J. Stoldt,

Program/

N/A

 

General Manager

Line Item No.:

 

 

Prepared By:

Arlene Tavani

Cost Estimate:

N/A

 

General Counsel Review:Yes.

Committee Recommendation:N/A

CEQA Compliance:This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

 

SUMMARY:Attached as Exhibit 5-A is a multi-party agreement between the City of Monterey (City) and local taxing entities that receive proceeds from the transfer or sale of property within their jurisdiction.†† This agreement relates to the Hotel Pacific property at 300 Pacific Street in Monterey that will be transferred from the former City of Monterey Redevelopment Agency to its successor agency, the City of Monterey. The property will be transferred at no cost to the City, consequently there will be no distribution of property tax to local taxing entities.In addition, contracts with the Department of Housing and Urban Development specify that proceeds from the property lease between the Hotel Pacific and the City cannot be distributed to local taxing entities.By approving the agreement, the Board of Directors acknowledges that the transfer will generate no property tax to local taxing entities.

 

RECOMMENDATION:†† The Board should approve the compensation agreement.

 

BACKGROUND INFORMATION:The property at 300 Pacific Street was developed using U.S. Department of Housing and Urban Development (HUD) Urban Renewal Funds and developed pursuant to a ground lease as the Hotel Pacific.HUD requires that all current and future proceeds generated from the property shall be treated as Community Development Block Grant program income used solely to support the programís activities.Proceeds from disposition of the property or rental proceeds earned under the lease cannot be distributed to local taxing entities.

 

EXHIBITS

5-A

Compensation Agreement Signed as to Form by District Counsel

5-B

October 2, 2017 Letter from Michael McCarthy, City Manager

 

U:\staff\Boardpacket\2017\20171113\ConsentClndr\05\Item-5.docx