Item 3.1 Additional Material posted 3-19-19City of Poway
MEMORANDUM
ADDITIONAL MATERIAL
(Agenda Related Writings/Documents provided to City Council or Staff after distribution of the
Agenda Packet for the March 19, 2019 Council Meeting)
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
March 19, 2019
Honorable Mayor and Members of the City Council
Tina White, City Manager
Craig Ruiz, Economic Development Administrator
858-668-4509 or cruiz@poway.org
Poway Commons Purchase, Sale, and Development Agreement,
Affordable Housing Purchase, Sale, and Development Agreement,
Property Exchange Implementation Agreement, and a Government
Code Section 52201 Summary Report
In Agenda Report Item 3.1, Attachment C to the report is titled "Section 52201 Summary Report". On
Page 10 of the Summary Report (page 318 of the staff report), Section V , third paragraph , the first
sentence begins:
"The estimated value of the interest to be conveyed for the City Parcels, not including
the 0.9-acre southernmost portion of the City-Owned Mixed Property, determined at
the highest and best use permitted under the current General Plan and zoning code
is $5,579,091 ... "
The size of the City Parcels and the Affordable Housing Site have varied slightly in the
different iterations of the conceptual development plan. The value stated currently in the
Summary Report is reflective of a previous conceptual plan which had a larger acreage for
the City Parcels. The correct appraised value is $5 ,496,364. The Summary Report is hereby
revised to make this change.
Attachments:
A. Revised Page 1 O of Attachment C
Reviewed/Approved By:
Wendy Kaserman
Assistant City Manager
1 of 2
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
~~
Tina M. White
City Manager
March 19, 2019, Item #3.1
Purchase, Sale, and Development Agreement Summary Report Prepared Pursuant to Government Code 52201 City of Poway March 5, 2019
It should be noted that, pursuant to the City Note, the Applicable Rate shall be determined on the
date that is fourteen (14) days prior to the date such repayment is due, which is the fourth (4th)
anniversary of the Note Date. Therefore, the Applicable Rate applied for purposes of the
estimated future value of the City Note, is subject to change , which may impact the future value
and amount of payment received by the City from the Developer for the City Note.
I.ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED DETERMINED AT THE
HIGHEST AND BEST USE PERMITTED UNDER THE GENERAL PLAN AND ZONING
As described throughout this Report, the City is proposing to sell the City Parcels to the Developer
under the terms of the PSDA. If the PSDA is approved, the City Parcels will be sold in their current
"as is" condition and no express or implied representations have been made to the prospective
Developer by the City regarding suitability for desired use, zoning and land use, subsurface
compaction and/or the existence or non-existence of toxic waste, hazardous materials, and/or
undesirable substances in or on the City Parcels.
The prospective Developer of the City Parcels will be required under the PSDA to secure any and
all land use and other entitlements, permits and approvals, which may be required by the City and
any other governmental agency having jurisdiction over the City Parcels, including all
environmental review and analysis required in connection with any development project
application submitted by the prospective Developer.
The estimated value of the interest to be conveyed for the City Parcels, not including the 0.9-acre
southernmost portion of the City-Owned Mixed Property, determined at the highest and best use
permitted under the current General Plan and zoning code is $5,579,091 5 496 364 based on an
appraisal prepared by lntegra Realty Resources effective February 15, 2019, which conforms with
the Uniform Standards of Professional Appraisal Practice, the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Apprais al Inst itute, and applicable state
appraisal regulations. It should be noted that the value conclusion considers specific cost
adjustments to address uncompacted fill, asbestos/lead abatement, and environmental
remediation issues associated with the City Parcels.
II.ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE USE AND WITH THE
CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS REQUIRED BY THE SALE
The estimated value of the interest to be conveyed at the use and with the conditions, covenants,
and development costs required by the PSDA for the City Parcels is a purchase price of
$6,420,500, which is higher than the fair market value as determined at the highest and best use
permitted under the City's General Plan and zoning, as identified in Section V.
Ill. CONSIDERATION RECEIVED AND COMPARISON WITH THE ESTIMATED VALUE OF
THE INTEREST TO BE CONVEYED AT HIGHEST AND BEST USE
Pursuant to this Section, the City must provide an explanation of the reasons for the differe nce If
the sale price of the City Parcels is less than the fair market value of the interest to be conv eyed,
determined at the highest and best use. The City Parcels, not including the 0.9-acre southernmost
portion of the City-Owned Mixed Property, will be sold for a purchase price of $6,420,500, which
is higher than the fair market value as determined at the highest and best use permitted under
the City's General Plan and zoning, as ident ified in Section V.
2 of 2 Attachment A
10
March 19, 2019, Item #3.1
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