BURBANK REDEVELOPMENT AGENCY

Tuesday, April 29, 2003

AGENDA

CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE

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                                                                      6:30 P.M.

INVOCATION:           Rabbi Richard Flom, Temple  Emanuel of Burbank.

                                   The Courts have concluded that sectarian prayer as part of City Council meetings is not permitted under the

                                   Constitution.

FLAG SALUTE:

ROLL CALL:

CONSENT CALENDAR:  (Item 1)

The following item may be enacted by one motion.  There will be no separate discussion on this item unless a Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda.  A roll call vote is required for the consent calendar.

1.  Property Acquisition Agreement- 57 E. Palm Avenue (Kendall Family Trust):

The purpose of this report is to present the information necessary for the Redevelopment Agency Board (Agency) to consider approval of an Acquisition Agreement to purchase 57 E. Palm Avenue owned by Patrick V. Kendall and Ruth M. Kendall as Trustees of the Kendall Family Trust.

The subject property is located on Opportunity Site 6B within the City Centre Redevelopment Project Area.  This site is bounded by First Street, Bonnywood Place, Magnolia Boulevard and Orange Grove Avenue.  The site is privately owned by 12 different property owners, includes approximately 24 businesses and primarily consists of industrial and automotive uses.  The Interstate 5 freeway is directly west of the project site, and there is a mix of retail, restaurant, and office uses to the east, north and south of the site.  The City owns a portion of Bonnywood Place and one- half of Magnolia Boulevard, between First Street and Bonnywood Place. 

On March 10, 2003, staff received a letter from Mr. Kendall offering to sell his property to the Agency for $525,000 ($67.74 per square foot).  The property, located at 57 E. Palm Avenue, is 7,750 square feet (sf), improved with a 3,000 sf building, and is used as a storage facility by Urban Habitat (a furniture store), on a month-to-month basis. Staff has determined that the Kendall offer is within the range of Fair Market Value. The acquisition cost would be subject to an environmental review, and Mr. Kendall would be required to provide staff with an Early Entry Agreement for this purpose. 

Because of its strategic location near the center of the site, staff believes that the timely acquisition of the Kendall property would help fulfill the Agency�s goal to ensure quality future development and to prevent undesirable uses.  More importantly, this would be the first step towards revitalizing this site which is currently underutilized with manufacturing and industrial uses that are incompatible with surrounding commercial uses downtown.  In addition, staff believes that a mixed-use residential/retail development is an appropriate use for the site.

The cost to acquire the Kendall property is $525,000.  Unencumbered Housing Set Aside funds would be used to fund the acquisition of this property.

The cost to acquire the Kendall property is $525,000.  Additional costs estimated at $60,000 (environmental, relocation, demolition, escrow services, etc.) would be deferred until a project is approved.  Unencumbered Housing Set Aside funds would be used to fund the acquisition of this property.  Funds will be transferred from the Low Mod Unappropriated Fund Balance Account No. 305.ND000.30004.0000. 000000 into the Low Mod Land Acquisition Account for the Kendall Property Acquisition Account No. 305.CD23A.70001.0000.14182 in the amount of $525,000.

Recommendation:

Adoption of proposed resolutions entitled:

1.      A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AN ACQUISITION AGREEMENT AND ESCROW INSTRUCTIONS BETWEEN THE AGENCY AND THE KENDALL FAMILY TRUST (57 EAST PALM AVENUE).

2.      A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROPRIATING $525,000 FOR THE KENDALL PROPERTY ACQUISITION AND AMENDING THE FISCAL YEAR 2002-2003 ANNUAL BUDGET.

END OF CONSENT CALENDAR

RECESS to conclude the City Council meeting.

ADJOURNMENT.