CC SR 20180904 04 - Purchase of Tax Defaulted PropertiesRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 09/04/2018
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action to purchase three (3) tax-defaulted properties located
in the active Portuguese Bend landslide area (APNs 7572-008-014, 7572-008-022 and
7572-008-023)
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Mayor and City Clerk to sign an Agreement to Purchase Tax-
Defaulted Property with the Los Angeles County Treasurer and Tax Collector for
three (3) vacant parcels in the active Portuguese Bend landslide area (APNs
7572-008-014, 7572-008-022 and 7572-008-023).
FISCAL IMPACT: $300.00 to submit purchase request, estimated final purchase price
$25,241.00 plus fees and due diligence review (to be completed in FY19-20).
Amount Budgeted: $25,000
Additional Appropriation: N/A
Account Number(s): 101-400-2999-8803
ORIGINATED BY: Kit Fox, AICP, Senior Administrative Analyst
REVIEWED BY: Gabriella Yap, Deputy City Manager
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Application to Purchase Tax-Defaulted Property (page A-1)
B. Notice of Tax-Defaulted Property Sale 2018A (page B-1)
C. List of properties offered in Rancho Palos Verdes (page C-1)
D. Aerial photo, property description and Assessor’s parcel map (page D-1)
BACKGROUND AND DISCUSSION:
Pursuant to State Revenue and Taxation Code, properties that are determined to be in
default for unpaid property taxes for five (5) years or more are periodically put up for
sale at public auction by the Los Angeles County Treasurer and Tax Collector (TTC).
However, if it is determined that a parcel is needed for public purposes, the City may
request to have the parcel removed from the auction and acquire title to the property.
The cost of acquisition is the minimum bid for the property as approved by the Los
Angeles County Board of Supervisors, plus noticing and transfer expenses. However,
parcels may be subject to removal from the auction if the owner pays the defaulted
taxes or enters into a legal process, such as bankruptcy.
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Staff has received notice that four (4) parcels in the City will be offered at public auction
by the County on October 22 and 23, 2018, as a part of Tax-Defaulted Property Sale
2018A (Attachment B). If the City determines that any of these properties is needed for
public purposes, the City must file a written statement setting forth the purpose of the
acquisition and the necessary Chapter 8 Agreement forms on or before September 14,
2018.
One (1) of these properties is a vacant, landlocked parcel in a canyon off Crest Rd. E. at
the upper terminus of Knollview Dr. Staff does not believe that there would be any
public value in City ownership of this parcel.
The other three (3) parcels in the City that are offered in Tax Sale 2018A are located in
the active Portuguese Bend landslide area (see aerial photo below). Assessor’s Parcel
Nos. 7572-008-014, 7572-008-022 and 7572-008-023 comprise roughly 4.54 acres
between Peppertree Dr. and Cherryhill Ln. The subject properties are located in the
City’s landslide moratorium area, so City ownership would remove any potential future
development that may aggravate landslide movement. As City-owned properties, they
could be used to support landslide remediation efforts such as dewatering wells, in- or
aboveground drains, and other remediation infrastructure. Landslide remediation
benefits the overall public welfare and preserves Palos Verdes Dr. S., a major arterial
road serving the entire Palos Verdes Peninsula.
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It should be noted that, in authorizing Staff to submit an application to acquire these tax-
defaulted properties, the City Council is not committing to complete the purchase of
them. If the current owner(s) redeem the properties by paying the back taxes prior to
the October 2018 auction, they will be withdrawn from the sale. The County charges a
non-refundable application fee of $100.00 per parcel to submit the application, but at
any time thereafter, if the City Council decides not to proceed with the purchase of
these properties, it may withdraw from the process. However, TTC does warn that
entities that fail to complete the Chapter 8 process after a property has been removed
from the tax-default auction may be banned from future participation in the Chapter 8
sale program, and may be required to pay any costs incurred by TTC.
If the City Council authorizes Staff to pursue the acquisition of this property, there will be
several additional steps to complete the acquisition. The City’s Planning Commission
will be asked to consider the consistency of this acquisition with the goals and polices of
the City’s General Plan. Staff will then retain the services of an environmental
consultant to conduct a Phase 1 Environmental Site Assessment of the properties. In
addition, Staff will need to identify funding sources for this acquisition, which may entail
the presentation of a budget adjustment for the City Council’s consideration at some
future date. Based upon recent experience, Staff anticipates that the acquisition
process for this property could take up to two (2) years.
ADDITIONAL INFORMATION:
Tax Sale 2013A
One of the subject parcels (APN 7572-008-014) was previously offered in Tax Sale
2013A. The City Council authorized Staff to pursue the acquisition of the property on
August 6, 2013. However, the owner redeemed the property by paying the back taxes
prior to the County auction date, so the City’s acquisition did not proceed at that time.
Summerland Street Acquisition
At its meeting on August 21, 2018, the City Council agreed to the County’s purchase
price and authorized Staff to proceed with the acquisition of the vacant private street
right-of-way of the 1800-block of Summerland Street (APN 7557-039-095). Staff
expects to return the signed Chapter 8 purchase agreement and other materials
requested by TTC to the County before the end of September 2018. Staff anticipates
that this process could take another year to complete.
Tax Sale 2018C
In May 2018, TTC offered another tax-defaulted parcel for sale in Tax Sale 2018C that
is located in the vicinity of the three (3) subject parcels in Tax Sale 2018A (see aerial
photo below). At the time, there appeared to Staff to be no public benefit in the City
acquiring this parcel (APN 7572-008-016). However, if the City eventually proceeds
with acquiring the parcels offered in Tax Sale 2018A, Staff intends to bring back a
3
recommendation to the City Council to make application to the County to acquire APN
7572-008-016 as well. At the time of Tax Sale 2018C, it was being offered for a
minimum bid of only $100.00, and Staff has confirmed that it remains unsold and in
default.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action is available for
the City Council’s consideration:
1. Receive and file this report, thereby directing Staff not to pursue the
acquisition of these tax-defaulted properties.
4
Mission Statement for City Government
The City of Rancho Palos Verdes is dedicated to providing its
residents, businesses and visitors with exemplary municipal
governance and services, while preserving our low-density, low-
tax and semi-rural character, inclusive of our natural resources
and open space, thereby enhancing the quality of life.
Vision Statement
To achieve the highest quality of life in Rancho Palos Verdes by
honoring the vision, principles and goals of the City’s founders,
as identified in the General Plan, while adapting to future needs,
challenges and opportunities.
Core Values Statement
The primary purpose of this City government is to provide
excellent, professional and high-quality municipal service.
(Adopted by Rancho Palos Verdes City Council on February 18, 2014)
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Chapter 8 Agreement No. ____
List of Properties Being Requested for Purchase
September 4, 2018
1. Assessor’s Identification No. 7572-008-014
Portion of Lot 31 in Block 1 of Tract No. 14118, Cherryhill Lane, Rancho Palos
Verdes
2. Assessor’s Identification No. 7572-008-022
Lot 16 in Block 1 of Tract No. 14118, Peppertree Drive, Rancho Palos Verdes
3. Assessor’s Identification No. 7572-008-023
Lot 17 in Block 1 of Tract No. 14118, Peppertree Drive, Rancho Palos Verdes
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Chapter 8 Agreement No. ____
Statement of Public Purpose and/or Intended Use of the Parcels
September 4, 2018
The three (3) subject properties are located in the City’s landslide moratorium area, so
City ownership would remove any potential for future development that may aggravate
or accelerate the movement of the active Portuguese Bend landslide. As City-owned
properties, the subject properties could be used to support future landslide remediation
efforts undertaken by the City, such as dewatering wells, in- or aboveground drains, and
other remediation infrastructure. Landslide remediation benefits the overall public
welfare and preserves the accessibility of Palos Verdes Drive South, a major arterial
road serving the entire Palos Verdes Peninsula, which passes through the active
landslide area between the subject properties and the shoreline of the Pacific Ocean.
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28000
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27500
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27600
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2600
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28100
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28
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400
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6800
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2800
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7000
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2800
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2900
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28300
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JO
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B
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700
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28
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29500
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3100
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6900
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29600
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30100
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RANCHO PALOS VERDES
LOS ANGELESTORRANCELOMITAPALOS VERDES ESTATES
ROLLING HILLS ESTATES
ROLLING HILLS
Incorporated September 7, 1973
PacificOcean
Palos VerdesReservoir
Revised: December 3, 2012 C:\GIS\MXDs\Cities\Rancho Palos Verdes
Rancho Palos Verdes Sphere of Influence
Legend
City of Rancho Palos Verdes
Rancho Palos Verdes Sphere ofInfluence, Coterminous
Sphere of Influence History
Action Effective Date
Established 07-25-84Reconfirmed 09-28-05Reconfirmed 10-10-12
1 in = 0.5 miles
0 0.75 1.50.375 Miles A-4
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City of Rancho Palos Verdes
X
X
Los Angeles
7572-008-014, 7572-008-022 & 7572-008-023
Acquire three (3) vacant parcels in the active
Portuguese Bend landslide area for landslide abatement purposes
Mayor September 4, 2018
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MB PG PCL
ITEM LEGAL CURRENT PARCEL
NO NSB# DESC LOCATION MIN BID. IMPS PRIOR PARCEL
_______________________________________________________________________
3178 532 TRACT NO 25376 0.42 $11,347 7566 012 028
MORE LESS AC COM AT SW COR OF 13/7566 012 028
LOT 72 TH N ON W LINE OF SD LOT
42.67 FT TH N 72¢44'47" E TO W
LINE OF LOT 43 TR NO 27625 TH S
AND FOLLOWING BDRY LINE OF SD
LOT 43 TO S LINE OF SD LOT 72 TH
N 87¢50'25" W TO BEG PART OF LOT
72 LOCATION CITY-RANCHO P V
PROPERTY ADDRESS:
VACANT LOT
3179 532 TRACT # 14118 LOT COM $5,818 7572 008 014
AT MOST W COR OF LOT 31 BLK 1 TH 13/7572 008 014
N 37¢50'22" E 141.82 FT TH S
83¢20'29" E 126.18 FT TH S
13¢20'11" E 21.28 FT TH N
83¢20'29" W 10.64 FT TH S
13¢20'11" E 85.19 FT TH W 20.55
FT TH N 13¢20'11" W TO N LINE OF
LOT 32 SD BLK TH W 204.57 FT TO
BEG PART OF LOT 31 BLK 1
LOCATION CITY RANCHO P V
PROPERTY ADDRESS:
VACANT LOT
3180 532 TRACT NO 14118 LOT 16 $9,356 7572 008 022
BLK 1 LOCATION CITY RANCHO P V 13/7572 008 022
PROPERTY ADDRESS:
VACANT LOT
3181 532 TRACT NO 14118 LOT 17 $10,067 7572 008 023
BLK 1 LOCATION CITY RANCHO P V 13/7572 008 023
PROPERTY ADDRESS:
VACANT LOT
3186 583 TRACT NO 23313 LOT 14 $5,167 Y 8001 011 045
LOCATION CITY-SANTA FE SP 09/8001 011 045
PROPERTY ADDRESS:
9258 PIONEER BLVD
SANTA FE SPRINGS CA 90670-2364
3192 583 M R 18-98 1/2 VAC ST $138,093 Y 8009 015 033
ADJ ON N AND W AND LOTS 26,28 10/8009 015 033
AND 30 N LOCATION CITY-SANTA FE
SP
PROPERTY ADDRESS:
10715 BLOOMFIELD AVE
SANTA FE SPRINGS CA 90670-3913
227
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Detail of Parcels Offered for Sale
in Tax Sale 2018A
APN 7572-008-022
D-1
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http://pro.realquest.com/jsp/report.jsp?&client=&action=confirm&type=getreport&recordno=0&reportoptions=83be5126-189b-4564-a8c4-6dbe28a1c33…1/1
Property Detail Report
For Property Located At : , RANCHO PALOS VERDES, CA 90275
Owner Information
Owner Name:CROUSE MILO F
Mailing Address:30821 LILAC RD, VALLEY CENTER CA 92082-3332 R004
Vesting Codes:/ /
Location Information
Legal Description:TRACT # 14118 LOT COM AT MOST W COR OF LOT 31 BLK 1 TH N 3750'22" E 141.82 FT TH S 8320'29" E 126.18
FT TH S 1320' 11" E 21.28 FT TH N 8320'29" W 10.64 FT TH S 1320'11" E 85.19 FT TH W 20.55 FT LOT 31
County:LOS ANGELES, CA APN:7572-008-014
Census Tract / Block:6705.00 /Alternate APN:
Township-Range-Sect:Subdivision:14118
Legal Book/Page:306-34 Map Reference:77-E3 /
Legal Lot:31 Tract #:14118
Legal Block:1 School District:PALOS VERDES PENINSU
Market Area:169 School District Name:PALOS VERDES PENINSU
Neighbor Code:Munic/Township:
Owner Transfer Information
Recording/Sale Date:11/17/1955 /Deed Type:DEED (REG)
Sale Price:1st Mtg Document #:
Document #:
Last Market Sale Information
Recording/Sale Date:/1st Mtg Amount/Type:/
Sale Price: 1st Mtg Int. Rate/Type: /
Sale Type:1st Mtg Document #:
Document #:2nd Mtg Amount/Type:/
Deed Type:2nd Mtg Int. Rate/Type:/
Transfer Document #:Price Per SqFt:
New Construction:Multi/Split Sale:
Title Company:
Lender:
Seller Name:
Prior Sale Information
Prior Rec/Sale Date:/Prior Lender:
Prior Sale Price:Prior 1st Mtg Amt/Type:/
Prior Doc Number:Prior 1st Mtg Rate/Type:/
Prior Deed Type:
Property Characteristics
Year Built / Eff:/Total Rooms/Offices Garage Area:
Gross Area:Total Restrooms:Garage Capacity:
Building Area:Roof Type:Parking Spaces:
Tot Adj Area:Roof Material:Heat Type:
Above Grade:Construction:Air Cond:
# of Stories:Foundation:Pool:
Other Improvements:Building Permit Exterior wall:Quality:
Basement Area:Condition:
Site Information
Zoning:RPOH&E*Acres:0.42 County Use:VACANT RESIDENTIAL
(010V)
Lot Area:18,108 Lot Width/Depth:x State Use:
Land Use:RESIDENTIAL LOT Commercial Units:Water Type:
Site Influence:Sewer Type:Building Class:
Tax Information
Total Value:$1,024 Assessed Year:2017 Property Tax:$527.46
Land Value:$1,024 Improved %:Tax Area:7148
Improvement Value:Tax Year:2017 Tax Exemption:
Total Taxable Value:$1,024
D-2
8/17/2018 RealQuest.com ® - Report
http://pro.realquest.com/jsp/report.jsp?&client=&action=confirm&type=getreport&recordno=0&reportoptions=83be5126-189b-4564-a8c4-6dbe28a1c33…1/1
Property Detail Report
For Property Located At : , RANCHO PALOS VERDES, CA 90275
Owner Information
Owner Name:PEPPERTREE ESTATE LLC
Mailing Address:116 KUAU BEACH PL, PAIA HI 96779-8119 R001 C/O DAVID LAW
Vesting Codes:/ /
Location Information
Legal Description:TRACT NO 14118 LOT 16
County:LOS ANGELES, CA APN:7572-008-022
Census Tract / Block:6705.00 /Alternate APN:
Township-Range-Sect:Subdivision:14118
Legal Book/Page:306-34 Map Reference:77-E3 /
Legal Lot:16 Tract #:14118
Legal Block:1 School District:PALOS VERDES PENINSU
Market Area:169 School District Name:PALOS VERDES PENINSU
Neighbor Code:Munic/Township:
Owner Transfer Information
Recording/Sale Date:/Deed Type:
Sale Price:1st Mtg Document #:
Document #:
Last Market Sale Information
Recording/Sale Date:04/13/2012 / 03/30/2012 1st Mtg Amount/Type:$370,000 / PRIVATE PARTY
Sale Price:$770,000 1st Mtg Int. Rate/Type: /
Sale Type:FULL 1st Mtg Document #:559168
Document #:559167 2nd Mtg Amount/Type:/
Deed Type:GRANT DEED 2nd Mtg Int. Rate/Type:/
Transfer Document #:Price Per SqFt:
New Construction:Multi/Split Sale:MULTI
Title Company:CALCOUNTIES TITLE NATION
Lender:PRIVATE INDIVIDUAL
Seller Name:SUTTON E W 2008 TRUST
Prior Sale Information
Prior Rec/Sale Date:/Prior Lender:
Prior Sale Price:Prior 1st Mtg Amt/Type:/
Prior Doc Number:Prior 1st Mtg Rate/Type:/
Prior Deed Type:
Property Characteristics
Year Built / Eff:/Total Rooms/Offices Garage Area:
Gross Area:Total Restrooms:Garage Capacity:
Building Area:Roof Type:Parking Spaces:
Tot Adj Area:Roof Material:Heat Type:
Above Grade:Construction:Air Cond:
# of Stories:Foundation:Pool:
Other Improvements:Building Permit Exterior wall:Quality:
Basement Area:Condition:
Site Information
Zoning:RPOH&E*Acres:3.60 County Use:VACANT RESIDENTIAL
(010V)
Lot Area:156,662 Lot Width/Depth:x State Use:
Land Use:RESIDENTIAL
ACREAGE Commercial Units:Water Type:
Site Influence:Sewer Type:Building Class:
Tax Information
Total Value:$139,609 Assessed Year:2017 Property Tax:$2,132.45
Land Value:$139,609 Improved %:Tax Area:7148
Improvement Value:Tax Year:2017 Tax Exemption:
Total Taxable Value:$139,609
D-3
8/17/2018 RealQuest.com ® - Report
http://pro.realquest.com/jsp/report.jsp?&client=&action=confirm&type=getreport&recordno=0&reportoptions=83be5126-189b-4564-a8c4-6dbe28a1c33…1/1
Property Detail Report
For Property Located At : , RANCHO PALOS VERDES, CA 90275
Owner Information
Owner Name:PEPPERTREE ESTATE LLC
Mailing Address:116 KUAU BEACH PL, PAIA HI 96779-8119 R001 C/O DAVID LAW
Vesting Codes:/ /
Location Information
Legal Description:TRACT NO 14118 LOT 17
County:LOS ANGELES, CA APN:7572-008-023
Census Tract / Block:6705.00 /Alternate APN:
Township-Range-Sect:Subdivision:14118
Legal Book/Page:306-34 Map Reference:77-E3 /
Legal Lot:17 Tract #:14118
Legal Block:1 School District:PALOS VERDES PENINSU
Market Area:169 School District Name:PALOS VERDES PENINSU
Neighbor Code:Munic/Township:
Owner Transfer Information
Recording/Sale Date:/Deed Type:
Sale Price:1st Mtg Document #:
Document #:
Last Market Sale Information
Recording/Sale Date:04/13/2012 / 03/30/2012 1st Mtg Amount/Type:$370,000 / PRIVATE PARTY
Sale Price:$770,000 1st Mtg Int. Rate/Type: /
Sale Type:FULL 1st Mtg Document #:559168
Document #:559167 2nd Mtg Amount/Type:/
Deed Type:GRANT DEED 2nd Mtg Int. Rate/Type:/
Transfer Document #:Price Per SqFt:
New Construction:Multi/Split Sale:MULTI
Title Company:CALCOUNTIES TITLE NATION
Lender:PRIVATE INDIVIDUAL
Seller Name:SUTTON E W 2008 TRUST
Prior Sale Information
Prior Rec/Sale Date:03/14/1980 /Prior Lender:
Prior Sale Price:$3,000 Prior 1st Mtg Amt/Type:/
Prior Doc Number:264123 Prior 1st Mtg Rate/Type:/
Prior Deed Type:DEED (REG)
Property Characteristics
Year Built / Eff:/Total Rooms/Offices Garage Area:
Gross Area:Total Restrooms:Garage Capacity:
Building Area:Roof Type:Parking Spaces:
Tot Adj Area:Roof Material:Heat Type:
Above Grade:Construction:Air Cond:
# of Stories:Foundation:Pool:
Other Improvements:Building Permit Exterior wall:Quality:
Basement Area:Condition:
Site Information
Zoning:RPOH&E*Acres:0.64 County Use:VACANT RESIDENTIAL
(010V)
Lot Area:28,071 Lot Width/Depth:x State Use:
Land Use:RESIDENTIAL LOT Commercial Units:Water Type:
Site Influence:Sewer Type:Building Class:
Tax Information
Total Value:$169,914 Assessed Year:2017 Property Tax:$2,342.90
Land Value:$169,914 Improved %:Tax Area:7148
Improvement Value:Tax Year:2017 Tax Exemption:
Total Taxable Value:$169,914
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