2000 AGN JUN 06 I15 - Laserfiche WebLink

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REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the City Council Meeting of June 6, 2000 TO: Honorable Mayor and City Co1wilmembers APPROVAL: Henry Garcia, Executive Direc QW FROM: Robb Steel, Redevelopment Directo"_ SUBJECT: Consideration and Approval of Resolution Approving an Asset Transfer Agreement by and between the Redevelopment Agency for the City of Colton and the City of Colton for the Annex Building at 655-661 North La Cadena) Drive, Colton. DATE: May 23, 2000 Background The Redevelopment Agency purchased the annex building from Lawrence Hutton in 1992 for $850,000. The Agency owns the property free and clear of any mortgage debts. The Community Development, Code Enforcement, and Public Works Departments of the City use the annex. There are also two private tenants sharing the facility with the Public Works Department. Redevelopment Law generally prohibits redevelopment agencies from owning facilities that are used for the conduct of general governmental operations. To redress this conflict, the City has proposed to acquire the property from the Agency for its original purchase price of $850,000. This has the added benefit of partially remedying the cashflow deficits in the Cooley Ranch Project Area since the original funding source was the Cooley Ranch Capital Projects Fund. The property will be deeded to the City of Colton and all subsequent rents from private tenants will be directed to the City. The Agency is currently receiving $1,200 per month from the two attorney's offices. The two current tenants have been noticed that the City/Agency intends to reclaim the leased premises for our use and the rental income stream is expected to be short-term only. The Agency will thereafter enter into a lease agreement with the City of Colton. Item # 15