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CC SR 20230307 03 - Tax-Defaulted Property Acquisition
CITY COUNCIL MEETING DATE: 03/07/2023 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to request the purchase of a tax-defaulted property in the Portuguese Bend Landslide area (APN 7572-004-033). RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign a Request to Purchase Tax-Defaulted Property from the Los Angeles County Treasurer and Tax Collector for a vacant lot in the Portuguese Bend Landslide area (APN 7572-004-033). FISCAL IMPACT: $274 to submit a purchase request, the final purchase price to be determined. Amount Budgeted: $25,000 Additional Appropriation: N/A Account Number(s): 101-400-2999-8803 (General Fund – Non-department/Land) ORIGINATED BY: Megan Barnes, Senior Administrative Analyst REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft Request to Purchase Tax-Defaulted Property (page A-1) BACKGROUND AND DISCUSSION: Pursuant to the California Revenue and Taxation Code, the City may request to purchase properties that are determined to be in default for unpaid property taxes if it is determined that a parcel is needed for public purposes. Staff has identified one such parcel in the Portuguese Bend Landslide area that has recently become available. Assessor’s Parcel No. 7572-004-033 (see aerial photo below) consists of a .44-acre vacant lot located immediately to the west of the intersection of Limetree Lane and Cherry Hill Lane. While improvements from another lot have slid within the bounds of the parcel over the years due to land movement, the parcel is legally a vacant lot. The City owns 1 RANCHO PALOS VERDES more than a dozen lots in the Cherry Hill Lane area, including lots immediately to the east and south of the subject parcel. The parcel is zoned Open Space Hazard and is traversed by Limetree Lane in the northeast corner. The parcel is located in the City’s landslide moratorium area, so City ownership would remove any potential future development that may aggravate landslide movement. As a City-owned property, it 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 Drive South, a major arterial road serving the entire Palos Verdes Peninsula. If the City acquires this parcel, the City will be responsible for fuel modification. If the City determines that this property is needed for public purposes, the City may file a written statement setting forth the purpose of the acquisition and the necessary Chapter 8 Agreement forms to the Los Angeles County Treasurer and Tax Collector (TTC). It should be noted that, in authorizing Staff to submit an application (Attachment A) to acquire this tax-defaulted property, the City Council is not committing to complete the purchase. If the current owner redeems the property by paying the back taxes, it would no longer be available for purchase. The County charges a non-refundable application fee of $274 to submit the application, but at any time thereafter, if the City Council decides not to proceed with the purchase of the property, it may withdraw from the process. At this time, Staff does not know what sale price the county may set for the parcel. It has been in default for six years, and its current assessed value is $35,503. There is $25,000 allocated in the Fiscal Year 2022-23 budget for property acquisition. Staff would expect 2 to return to the City Council with a budget adjustment once the County’s purchase price has been determined. If the City Council authorizes Staff to pursue acquiring this property, there will be several additional steps to complete the acquisition process. The City Council will be asked to approve the sale price set by the TTC. The City’s Planning Commission will then be asked to consider the consistency of this acquisition with the goals and policies of the City’s General Plan. Finally, Staff will retain the services of the City’s environmental consultant to conduct a Phase 1 Environmental Site Assessment of the properties. The typical cost of a Phase 1 study is about $5,000. CONCLUSION: In conclusion, Staff recommends the City Council authorize the Mayor to sign the Request to Purchase Tax-Defaulted Property from the TTC for a vacant lot in the Portuguese Bend Landslide area (APN 7572-004-033). ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Direct Staff not to pursue the acquisition of this tax-defaulted property. 3 Los Angeles7572-004-033Acquire a vacant parcel in the active Portuguese Bend landslide area for landslide abatement purposesMarch 7, 2023MayorCity of Rancho Palos VerdesA-1DRAFTApplication to Purchase Tax-Defaulted Property from the County This application is to be completed by eligible purchasing entities to commence purchase of tax-defaulted property by agreement sale from the county under applicable provisions of the California Revenue and Taxation Code. Please complete the following sections and supply supporting documentation accordingly. Completion of this application does not guarantee purchase approval. A. Purchaser Information 1. Name of Organization: 2. Corporate Structure -check the appropriate box below and provide corresponding information: 0 Nonprofit -Articles of Incorporation ~ Public Agency -Mission statement (if special district, also provide jurisdiction boundary map) B. Purchasing Information Determine which category the property belongs and then check the appropriate box as it relates to the purchasing entity's corporate structure and the intended use of the property: Category A: Property is scheduled for a Chapter 7 tax sale □ No Purchase -State / County I taxing agency registering objection to preserve lien only □ Purchase by State / County / tax agency / revenue district / redevelopment agency I special district to preserve its lien □ Purchase by State / County/ tax agency I revenue district / redevelopment agency / special district for public purpose □ Purchase by nonprofit for low-income housing or other use to serve low-income persons, or to preserve open space Category B: Property is not scheduled for a Chapter 7 tax sale ~ Purchase by State I County I taxing agency I revenue district / redevelopment agency I special district for public purpose □ Purchase by nonprofit for low-income housing or other use to serve low-income persons. or to preserve open space C. Property Detail Provide the following information. If more space is needed for any of the criteria, consolidate the information into a separate "Exhibit" document and attach accordingly: 1. County where the property(ies) is located: -----~---------------------2. Each property by Assessor's Identification Number:-----------~----------3. State the purpose and intended use for each property: ______________________ _ D. Acknowledgement Detail The signature of the purchasing entity's authorized officer Authorized Signature Title Date sea a-16 AGREEMENT# 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) A-2DRAFTCITVOF RANCHO PALOS VERDES Chapter 8 Agreement No. ____ List of Properties Being Requested for Purchase March 7, 2023 1. Assessor’s Identification No. 7572-004-033 Lot 10 of Tract No. 14118, Cherry Hill Lane, Rancho Palos Verdes A-3DRAFT Chapter 8 Agreement No. ____ Statement of Public Purpose and/or Intended Use of the Parcels March 7, 2023 The subject property is 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 a City-owned property, the subject property 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 property and the shoreline of the Pacific Ocean. 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3 2 6 0 0 AVLNST900 DRD R 450 0 400COR O NALN VIA S T PL S ID E BIG 400W BANDINILAR ICHR E Y RD B IG AV 5TH HARBORGA N A D O DR D IANORA E M IL I A W 200DOLORES 5500 D R S LN PALOS DRST INTREPID6400CANYON 5TH D R BAR O N RD CYN 3 0 6 0 0 P A L A C I O SBELLMARINCOOLHEIGHTS DR BLVDSTPL DR PL NELSONBENDIGO PL ST PEPPERTREEST C H A N D E L E U R SAVDR 21006THE ST AVC A N O NFALCONHEAD 700 DR6TH 500W SVERDES500EL PASEO RDST W 6 T H DREDAUNTLESS CASI LI NAVI S T ALNBYN N E R LUCANIADRPISA1 7 0 0 SEACOVE4 5 00 SDALA D I E R 600 D E L U N A PL1000 STWY1400 4300 ADMIRABLE STAV600AVV E R D E30300 600S T DR 600CLIFFSITE ANTE7TH D R S A MP S ON YACHT AVDRW PERKOV3 5 0 0 7THCHERRYST DR DR DR 7TH AVENGER PLW ST DRWCOVERLY EXULTANT MILANS1600 HILL700C O RINNA DRAVD R STALWART H A WK SMOOR 1200 PLST W SCHOONER DRRD700PLST DREADMIRABLE 8TH LNS E A S C APE STRAPALLOSANTALUNA D R WW BROADWAYAVST 700HIGHTIDE 8THW PALOSVERDES RAPALLO DR DRNARINO 4400 BUTTE3500 VALORPLSUANA30500DR SP IR A TE SEAWALL RD W 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THW 700 AVC A R O L I N A 2600MACARTHUR WYGRA Y S BYST SWHITES3 5THVI E W ATLASDR CIRBELLEZA SPEARINGAVS T DEL AVSTARGAZERPOINTABALONE25THW HAMIL T O NRD ST ST M E Y L E R AVDRGRISSOM S T 600WATCHORNBLVD A V VERDES S T ST DR AMIGOMARIN A 25 0 0 GURNARDTE R W 2300 TITANLOMAS PL WKSST 900 1100 2 6 T H S T MAR W 1 2 0 0 3 7 T H 25002500 800MULLDAEDR ST AVSHADAVBOWFINGURNA R D AV25002500PLHAMILTON500 W A R M O U T H ST 700 SEAFARER CIR ST 26TH W 900W WALKER POINT WHITES S 2 6 T HW PL RDS SDR 2900DOLPHI NS S26TH AV2100 PASEO BARBARA W W OFFICERS27TH WARMOUTH ST PL AV27TH WW 260027TH 800 29TH WAV 26TH2500AVAVWESTERN28TH ST W DR1 4 0 0 PLDEL ST 28TH 28TH AVERILL W ST ST MACARTHURGRAY S B Y W STBLAV KAY FIORENTINO STST 130031ST ST27THST500 W MAR S MI N E R 80029TH S T EMILYST PL2 9 0 0HAMILTONW 2800DRST MARINAAV1700 PL SCABRILLOVIAST HAMIL-W 29TH 28002800ANCHOVYMARINERW AV30TH 27THSTTONWHALERSAVVOYAGER CIR1301AVS 800 900 STSS T29THW W AV WALKW AVMAIN BARBARASTAV35TH AV300031002900BARLOW ST HAMILTONW 30TH ST PASEO WKST 34TH ROYAL PATTONST MEA D EST BAYWATER3 1 STS 36T H 600 AV700 CABRILLOW SHAMILTONDR AVST WSTS TRDST 37TH P A L MS35001700 31STW 31STW S3000R D SAXTO N800 1300SILVIUS CT ALMAD EL ST 3600BLAV1400 LEARY MERRIAM S T 3500SAV DENISONLELAND32ND W M AR DRPECKW SOR C R D 500 WEYMOUTHSPRINGW AVDIX 3600W 36TH SSTSTKERCKHOFFN C O R D 33RD RD 33RD AV3200JACKSTADT3200LEAVENWORTH FARLEY1500 ST ST AVERILLST PATTONW DOLPHINSTST WALKER1400 RDSHOSHONEANS34TH ST ST34TH W STAVEMILYW ALMERIASBARBARAAVSS T 3600CAROLINA37TH 3700W OSGOODSST1200 DR 3400DR SST3 5 T H SMACARTHURSST STS3700MEYLERPACIFIC3 5 T HW 3700ROXBURY3500C TSTEPHEN ST SCABRILLO3600 BLUFF PARKER500ST 36TH 800 W 3800SS PASEO ST 1000 3 7 T H PLW 700 MSOLIVER PL 3700ST 3 8 T H WH I T E W VICKERY DEL 400 CIRCLE 3800 6 0 0 WY 900 ST 39TH DRW 3800GAFFEY5 0 0 M A R CAROLINASPL3900ST 40TH W 800 800 4000SHEPARD 4000BLUFF600 SPASEOS ST DEL MAR CO 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-5DRAFTCJ D 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