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<br />CITY OF RIVERSIDE
<br />
<br />REDEVELOPMENT AGENCY MEMORANDUM
<br />
<br />Honorable Mayor and Agency Board
<br />
<br />Date:
<br />Item No.:
<br />
<br />March 6, 200 I
<br />4
<br />
<br />Subject: A Public Hearing to Request to Implement a Lease and Maintenance Agreement with the La
<br />Sierra Apartment Owners Association for a Fully Improved Twenty-Six Space Parking
<br />Facility Located at Hole and Collett A venues (La Sierra ManorNillage of La Sierra)
<br />
<br />Background
<br />
<br />Since 1992, the City of Riverside Redevelopment Agency ("Agency") has worked to rehabilitate a series of 53
<br />fourplexes now known as the Village of La Sierra (fonnally La Sierra Manor), The Agency has provided a series
<br />of fully forgivable loans to individual owners, and has used these loans to successfully seed a homeowners
<br />association and implement an area-wide set of Covenants, Conditions, and Restrictions (CC&R' s) for the area.
<br />Further, the City of Riverside and the Agency has assisted the Riverside Housing Development Corporation to
<br />acquire 36 apartment units in the Village of La Sierra,
<br />
<br />As part of the California A venue Extension Project, the Agency acquired via Quit Claim Deed from the City and
<br />adjacent owners the property between Collett A venue, Hole Avenue, and the now realigned California Avenue
<br />(26,478 square feet) for the purposes of a parking area that would alleviate crowded parking conditions in the
<br />Village of La Sierra, The Agency is currently developing a twenty-six space parking lot that will be fully
<br />improved, lighted, and landscaped, with a walkway into the Village of La Sierra ("Lot"),
<br />
<br />Current Issue
<br />
<br />Staff now requests approval of the attached Lease and Maintenance Agreement ("Agreement") between the
<br />Agency and the La Sierra Apartment Owners Association for the use, care, and maintenance of the Lot. The
<br />Agreement is for a thirty (30) year tenn and binds the Association to care and maintain the Lot, per an agreed
<br />schedule, for the tenn of the Agreement. All power and water used in the Lot will be the responsibility ofthe
<br />Association, In exchange for the care and maintenance from the Association, the Agency will agree to an annual
<br />lease rate of One Dollar ($1) per annum, This agreement will allow the Association to assume title to the Lot at
<br />the conclusion of the tenn of the Agreement, assuming that the Association has not defaulted on any portion of
<br />the tenns of the Agreement. It is estimated by Bruce Kulpa, President of the Association, that care and
<br />maintenance expenses for the Lot will cost the Association approximately $3,000 to $5,000 a year,
<br />
<br />Analysis
<br />
<br />Pursuant to Section 33430 of California Community Redevelopment Law, an "...agency may, within a survey area
<br />or for the purposes of redevelopment, sell, lease, for a period not to exceed 99 years, exchange, subdivide,
<br />transfer, assign, pledge, encumber by mortgage, deed of trust, or otherwise dispose of any real property or any
<br />interest in property," This disposition of property must be made after a public hearing pursuant to California
<br />Community Redevelopment Law Section 33431,
<br />
<br />It is Staff's conclusion that disposal ofthe Project parcel is not subject to the traditional disposition requirement
<br />of Section 33433 of California Community Redevelopment Law (financial summary analysis) in that the Project
<br />parcel was, in no way, acquired directly or indirectly with tax increment ~onies. The Agreement, as currently
<br />drawn, is undated and will be executed upon completion of the constructIOn of the Lot.
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