CITY OF PINOLE SUCCESSOR AGENCY PROPERTY

ATTACHMENT B

CITY OF PINOLE

SUCCESSOR AGENCY

PROPERTY MANAGEMENT PLAN

AB 1484 CLASSIFICATION

September 16, 2014

Long Range Property Management Plan

Successor Agency to the Former Redevelopment Agency

Of the City of Pinole

Introduction

As part of the dissolution process of former redevelopment agencies, State Assembly

Bill 26 (ABX1 26) required successor agencies to dispose of real property assets owned

by former redevelopment agencies “expeditiously and in a manner aimed at maximizing

value.” State Assembly Bill 1484 (AB 1484) clarified how successor agencies should

dispose of these assets with direction to prepare a Long Range Property Management

Plan (LRPMP) governing the disposition and use of the former Agency owned

properties to be submitted to their Oversight Board and the State Department of

Finance within six months of receiving a Finding of Completion. The Successor Agency

to the former Redevelopment Agency of the City of Pinole (Successor Agency) received

its Finding of Completion on September 23, 2014, which requires the LRPMP to be

submitted no later than March 22, 2015.

Section 34191.5 of the Health and Safety Code, which was added by AB 1484, requires

that the LRPMP include an inventory and site history of each of the former Agency

owned properties as well as a plan for the future use or disposition of each site. AB

1484 allows for four permissible uses of the properties, including the retention of the

property for governmental use, the retention of the property for future development, the

use of the property to fulfill an enforceable obligation (either through sale of the property

or revenue received), or the sale of the property.

This document is the Long Range Property Management Plan for the Successor

Agency to the former Redevelopment Agency of the City of Pinole and incorporates the

following:

 Include an inventory of all properties in the Property Trust Fund. The

inventory consist of all of the following information:

• The date of the acquisition of the property and the value of the property at

that time, and an estimate of the current value of the property.

• The purpose for which the property was acquired.

• Parcel data, including address, lot size, and current zoning in the former

agency redevelopment plan or

specific,

community, or general plan.

• An estimate of the current value of the parcel including, if available, any

appraisal information.

• An estimate of any lease

renta

or any other revenues generated by

the

property, and a description of the contractual requirements for

the

disposition of those funds.

•

The history of environmental contamination, including designation as

brownfield site, any related

environment

studies

and history of any

remediation efforts.

• A description of the

operty

s potential for transit-oriented development

and the advancement of the planning objectives of the successor

agency.

• A brief history of previous development proposals and activity

ncluding

the rental or lease of property.

• Address the use or disposition of all of the properties in the Property Trust

Fund. Permissible uses include the retention of the property for

governmental use, the retention of the property for future deve

opment,

the sale of the property, or the use of the property to fulfill an enforceable

obligation. The LRPMP shall separately identify and list properties in the

Property Trust Fund dedicated to governmental use purposes and

properties retained for purposes of fulfilling an enforceable obligation

With

respect to the use or disposition of all other properties, all of

the

following shall apply:

• If the LRPMP directs the use or liquidation of the property for a project

ident

fied in an approved redevelopment plan, the property shall transfer to

the City

• If the LRPMP directs the liquidation of the property or the use of

revenues generated from the property, such as lease or parking

evenues

for any purpose other than to fulfill an enforceable obligation or other than

that specified immediately above

the proceeds from the sale shall be

distributed as property tax to the taxing entities.

According to Health and Safety Code § 34180 (f), if a city wishes to retain any

properties or other assets for future redevelopment activities, it must reach a

compensation agreement with the other taxing entities to provide payments to them in

proportion to their shares of the base property tax, as determined pursuant to Section

34188, for the value of the property retained.

Of the 9 parcels designated as future development, compensation agreements will be

negotiated with other taxing agencies, so they may receive a pro rata share of any

payment received by the City after these parcels have been transferred to the City from

the Successor Agency.

Summary of Property Owned by the Successor Agency

The Successor Agency owns and controls various properties within the City of Pinole.

Each site and the required information under AB 1484 will be discussed in detail in the

“Summary” matrix. Table 1 below is an overview of the classification of the Successor

Agencies properties:

Table 1

Property

AB 1484 Classification

Governmental

Purpose Use

Enforceable

Obligation

Use

Approved

Redevelopment

Plan Use

Liquidation

/Maximize Value

of Proceeds Use

648 Tennant Ave- Parking Lot

2180 Prune St- Parking Lot

813 Fernandez Ave- Parking Lot

798 Fernandez Ave- Parking Lot

601 Tennent Ave-Youth Center

San Pablo Ave- Fernandez Park

San Pablo Ave- Entrance Sign

2131 Pear St – City Hall Complex

651 Pinole Shores- Animal Shelter

2361 San Pablo Ave- Former Bank

Pinole Valley Rd- Gateway East-

Restaurant

1301 Pinole Valley Rd & Henry Rd –

Gateway East- Medical

Pinole Valley Rd- Gateway East-

Restaurant #2 (Caltrans)

1300-1400 Pinole Valley Rd-

Gateway West

2301 San Pablo Ave – Corner Lot

830-850 San Pablo Ave-

Pinole Shores II

600 Tennant Ave - Blackies

Property Inventory

Health and Safety Code Section 34191.5 requires that the Long Range Property

Management Plan include an inventory of all properties owned by the Former

Redevelopment Agency of the City of Pinole, which are held in a Property Trust Fund.

The Successor Agency to the former Redevelopment Agency of the City of Pinole has

possession of seventeen (17) parcels that were referenced in the previous section and

have been included in this plan. The properties have been placed

into

different

categories based upon the

specifics

of the property and approach to its disposition.

A. Properties that will be used for government purpose. These properties

have no commercial value, including remnant pieces, landscape areas

ROW,

slope area and properties that are governmental

use.

The staff recommends

that these properties be conveyed at no cost to the City. There are nine (9)

properties listed under this category.

1. 648 Tennant Ave (youth center) employee and park parking lot, which is

being used by youth center staff and public accessing the City’s park.

2. 2180 Prune Street (City Hall) parking lot which is primarily used by

City for employee, police and code enforcement staff for parking of

vehicles as well as visitor parking.

3. 813 Fernandez Ave (Bay Trail) park parking lot which is used as

parking for direct access to the Bay Trail for walking, jogging and

promotion of wetlands area

4. 798 Fernandez Ave (Community) parking lot used to provide off-street

parking to commercial and institutional (bank) businesses

5. 601 Tennant Ave. - Youth Center which serves as the center for City run

youth programs and activities

6. Fernandez Park Patio includes an outdoor gazebo located in Fernandez

Park,

7. San Pablo Ave - vacant site which is the location of a City entrance sign

with City logo

8. 2131 Pear Street – Pinole City Hall, which is location for all development,

administration and planning departments, which is used for governmental

purposes.

9. 651 Pinole Shores – Former Animal Shelter is now vacant and proposed

to be used by the City’s Public Works Department as corporation yard for

storage.

B. Properties Transferred to the City for Development. The properties are

intended to be transferred to the City on a short-term basis and soon thereafter

sold to interested parties and/or developers to carry out the vision of the

approved by the Redevelopment Plan, the Three Corridors Specific Plan, and

Redevelopment Implementation Plan. There are six properties listed under this

category.

10. 2361 San Pablo Ave – Former Bank of Pinole which was purchased

from the City for the commercial and retail development

11. Pinole Valley Road Gateway East – Vacant Pad which was purchased

for development of a regional commercial, medical or retail

development

12. 1301 Pinole Valley Road & Henry Rd – Vacant Pad which was

purchased for development of a regional commercial, medical or retail

development

13. Pinole Valley Road Gateway East – Vacant Pad (Caltrans) which was

purchased for development of a regional commercial, medical or retail

development or parking lot for commercial overflow

14. 1300-1400 Pinole Valley Rd which was purchased for development of a

regional commercial, medical or retail development

15. 2301 San Pablo Ave – vacant site which is located in the Downtown and

proposed for future development

With respect to bullet points 11-14, the City has been in negotiations with Thomas

Gateway LLC and Agape Assets LLC, for the sale of the properties for development, in

the amounts of $3,700,000 for properties No. 11, 13, & 14, and $470,000 for property

11, respectively. The sale price represents the highest and best use and fair market

value as determined by an appraisal conducted by an MAI appraiser.

Parcels designated as future development require compensation agreements with other

taxing agencies, so they may receive a pro rata share of any payment received by the

City after these parcels have been transferred to the City from the Successor Agency.

Properties for Sale

Those properties are to be marketed through direct

contact with interested parties and through the

use

of brokers. Proposals

would be evaluated based upon acceptable development plans. There are two

properties listed under this category. The properties will be sold after an

appraisal is obtained.

16. 830-850 San Pablo Ave. – Pinole Shores II, this property along with an

adjacent parcel was purchased with the intent of developing both sites

but this property remains undeveloped and is proposed to be sold.

17. 600 Tennant Ave – Blackies was purchased with the intent to rehab the

restaurant. The properties remain vacant and undeveloped and will be

sold at Fair Market Value as interest is received