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ITEM: |
CONSENT CALENDAR |
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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 |
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Meeting Date: |
November 13, 2017 |
Budgeted: |
N/A |
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From: |
David J. Stoldt, |
Program/ |
N/A |
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General Manager |
Line Item No.: |
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Prepared By: |
Arlene Tavani |
Cost Estimate: |
N/A |
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General Counsel Review: Yes.
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Committee Recommendation: N/A |
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CEQA Compliance: This
action does not constitute a project as defined by the California
Environmental Quality Act Guidelines Section 15378. |
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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. |
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RECOMMENDATION:
The Board should approve the compensation agreement. |
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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 program’s
activities. Proceeds from disposition
of the property or rental proceeds earned under the lease cannot be
distributed to local taxing entities.
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EXHIBITS |
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Compensation Agreement Signed as to Form by
District Counsel
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October 2, 2017 Letter from Michael
McCarthy, City Manager
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U:\staff\Boardpacket\2017\20171113\ConsentClndr\05\Item-5.docx
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