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HomeMy WebLinkAboutCC Resolution 11557 (RAB Motors Lease)RESOLUTION NO. 11557 A RESOLUTION OF THE CITY COUNCIL APPROVING A LEASE BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND R.A.B. MOTORS, INC. FOR THE PROPERTY LOCATED AT RICE DRIVE AND FRANCISCO BLVD WEST (APN 013-041-44) PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 (Two-year lease with three one-year extensions) WHEREAS, the City Council of the City of San Rafael (the "City Council") adopted the Redevelopment Plan for the Central San Rafael Redevelopment Project Area (the "Redevelopment Plan") on November 20, 1972, by Ordinance No. 1079, as amended, affecting the Central San Rafael Redevelopment Project Area (the "Project Area"); and WHEREAS, the City Council adopted the Third Amended and Restated Redevelopment Plan for the Central San Rafael Redevelopment Project Area (the "Restated Redevelopment Plan") on August 19, 2002, by Ordinance No. 1786; and WHEREAS, the San Rafael Redevelopment Agency (the "Agency") is vested with responsibility pursuant to the Community Redevelopment Law (Part I of Division 24 of the Health and Safety Code of the State of California) (the "Law") to implement the Redevelopment Plan in the Project Area; and WHEREAS, the Agency desires to lease the property located at Rice Drive and Francisco Boulevard West (APN 013-041-44); and WHEREAS, the Community Redevelopment Law ("CRL") Section 33433 requires the City Council to approve such lease after conducting a noticed public hearing; and WHEREAS, notice of the public hearing was advertised in the Marin Independent Journal on May 3 And May 10, 2004; and WHEREAS, the report required by CRL 33433 was prepared and considered by the City Council, and the Agency, and was made available to the public as provided by the CRL; and WHEREAS, on May 17, 2004, the City Council and the Agency conducted a duly noticed public hearing pursuant to Section 33433 of the CRL to obtain and consider public testimony regarding the lease of Agency property; and ORIGINAL �� NOW, THEREFORE, IT IS HEREBY RESOLVED that based on information presented to the City Council and the Agency, including the information provided in the Section 33433 Report presented, and in compliance with the requirements of Section 33433 of the CRL, the City Council resolves that: 1. All of the above recitals are true and correct, and the City Council has based the findings and actions set forth in this Resolution, in part, on such recitals. 2. The City Council hereby finds and determines that: (a) the lease of the property will assist in the elimination of one or more blighting conditions inside the Project Area; (b) the lease of the property is consistent with the Agency's current Implementation Plan; and (c) the consideration is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the lease. The factual basis used by the City Council in making these findings and determinations is set forth in the Section 33433 Report and in the staff report and materials regarding the lease provided to the City Council. 3. The City Council hereby consents to the Agency lease with alterations as required by the Agency Counsel. 4. The attached 33433 Report ("Exhibit A") is incorporated in to this Resolution by this reference. 5. This Resolution shall take immediate effect from and after its passage and approval. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a special joint meeting of the San Rafael City Council and the San Rafael Redevelopment Agency held on the seventeenth day of May, 2004, by the following vote: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None A. JearHe M. Leoncini, City Clerk EXHIBIT A SECTION 33433 SUMMARY I. Introduction The Redevelopment Agency advertised the lease of this property and received bids from RAB Motors and Samuelson Schafer. The parcel is proposed to be leased to RAB Motors, the highest bidder. II. Summary of Cost to the A2encv The cost to the Agency for the lease of the property is the cost of the engineering studies to establish the boundary lines of the parcels to be leased. Advertising Costs for bidding and public hearing $ 125 Engineering Costs $ 2,760 Total Cost $ 2,885 III. Estimated Value of Interest to be Conveved The estimated value of the properties to be leased for the highest and best use under the provisions of the Redevelopment Plan is estimated to be the price offered by the highest bidder or $ 2,770 per month. IV. Lease Amount Price The monthly lease payment will be $2,770 per month. V. Comparison of Lease Price to Estimated Value The lease price is the highest price offered in the bidding that closed on February 27, 2004. The request for proposals was mailed to all adjacent property owners and mailed to all car dealerships having a business license with the City of San Rafael. Ssl\ projects\ auto\ rice\ 33434 VI. Lease of Property Aids in the Elimination of Blight The lease of the property will assist the Agency in achieving the following Project Area Plan goals: a. To eliminate deficiencies in the Project Area including an inefficient circulation system, inadequate storm drains, inefficient off street parking and other similar deficiencies adversely affecting the Project Area. Pursuant to the requirement of the Community Redevelopment Law Section 33433(a) (2)(B)(iv) the lease of the property will assist in the elimination of blight through the better utilization of properties along West Francisco Boulevard, a major traffic arterial serving industrial and commercial properties in the Project Area. b. To retain existing businesses by enhancing and promoting their activities; and c. To create local job opportunities and preserve the Project Area's existing employment base. Pursuant to the requirement of the Community Redevelopment Law Section 33433(a) (2)(B)(iv) the lease of the property to RAB Motors will assist in the elimination of blight by providing expansion space for an existing local auto dealer. Service technicians and salespersons employed by auto dealers have higher pay scales than workers in the retail sector. Ssl\ projects\ auto\ rice\ 33434 MIZE, CO 7.1 13 W.4 CA": 31 -tin. 4 j A ;7 lilt L;