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Home My WebLink AboutCORRSPONDENCE - COUNTY OF ORANGE_EMERGENCY SHELTERMitre - Ramirez, Norma From: Huizar, Maria Sent: Tuesday, November 18, 2014 2:13 PM To: Mitre - Ramirez, Norma Subject: FW: Homeless Shelter - Normandy Site not Approved by BOS Please make copy of this email for our files. Thank you! From: Flores, Alma Sent: Tuesday, November 18, 2014 1:59 PM Cc: EMT; Sandoval, Jose; Hodge, Ryan; Ibarra, Ruben; Kuplast, Michael; Ono, Ron; Eaton, Kevin; McCann, Melanie; Eggers, Terri; Macedonio, Margarita; Kutner, Scott Subject: Homeless Shelter - Normandy Site not Approved by BOS Dear Mayor and City Council, Earlier today, the Board of Supervisors did NOT APPROVE moving forward with the purchase of the property located at 1217 E. Normandy Place, the site being proposed for the multi- service emergency homeless shelter. Approximately 25 speakers spoke on the item during public comment prior to the Board recessing to closed session to consider the item. The majority of the speakers were residents or property owners near the Normandy site area and indicated opposition to the project. Upon resuming the open meeting, Supervisor Janet Nguyen spoke and made a motion to move the homeless shelter project to the Santa Ana Transit Terminal (also known as the abandoned OCTA bus terminal). It is my understanding that Nguyen's motion was not actionable since it was not an item placed on the Board agenda. However, with Supervisors Moorlach, Nelson, Nguyen and Spitzer present, the Board of Supervisors unanimously voted against moving forward with the Normandy site (Bates not present). For your reference, the County staff report is available at: http: / /cams.ocgov.com /Web Publisher /Agendal1 18 2014 files /images /A14- 001607 HTM The video playback should be available online by this evening at http:/ /ocgov granicus.com /ViewPublisher php ?view id =4. Please let me ]snow if you have any questions or would like additional information. Respectfully, Alma Flores City Manager's Office City of Santa Ana 20 Civic Center Plaza, M31 Santa Ana, CA 92702 afloresn-santa -ana. ora (714) 647 -5200 office AGENDA STAFF REPORT Page 1 of 3 Agenda Item AGENDA MEETING DATE: LEGAL ENTITY TAKING ACTION: BOARD OF SUPERVISORS DISTRICT(S): SUBMITTING AGENCY/DEPARTMENT: DEPARTMENT CONTACT PERSON(S): ASR Control 14- 001607 N- Board of Supervisors County Executive Office (Approved) Scott Mayer(714)834 -3046 Thomas Mason (714) 667 -9675 SUBJECT: Approve Grant Deed for the 1217 E. Normandy Place, Santa Ana Project CEO CONCUR COUNTY COUNSEL REVIEW CLERK OF THE BOARD Concur Approved Agreement to Form Discussion 3 Votes BoardMaiority Budgeted: Yes Current Year Cost: $3,600,000 Annual Cost: N/A Staffing Impact: No # of Positions: Sole Source: No Current Fiscal Year Revenue: N/A Funding Source: Budget Control 036: 100% County Audit in last 3 years: No Prior Board Action: 07/15/2014 933 RECOMMENDED ACTION(S): Direct staff to move forward with the 1217 E. Normandy Place, Santa Ana, CA. project. Approve and accept Grant Deed document used to transfer fee title to the County of Orange. Authorize the County Chief Real Estate Officer, or designee, to sign all transactional and escrow documents, including minor modifications that do not materially alter the terms or financial obligations of the transaction, and perform all activities specified under the terms of the Purchase and Sale Agreement and Escrow Instructions including acceptance of the Grant Deed. �10051LLV.11 i Approval of the purchase of real property located at 1217 E. Normandy Place, Santa Ana and acceptance of the Grant Deed document transferring fee title to the County of Orange will provide the County with an appreciating real property asset which can be used for varying purposes to improve the operations of County agencies or departments. http: // cams. ocgov.com /Web_Publisher /Agendal 11 8-2014—files/images/Al 4- 001607.FI... 11 /18/2014 AGENDA STAFF REPORT Page 2 of 3 The County Executive Office, Real Estate was tasked with finding a warehouse location in the city of Santa Ana, at or below current market value, in good condition, with the potential to be used for storage, equipment repair, trade shop purposes, and other miscellaneous uses by different County agencies or departments, including as a possible year -round emergency shelter. The property at 1217 E. Normandy Place, Santa Ana, a relatively new property constructed in 2000, was determined to provide many use options based on its proximity to other County facilities, its overall size and excellent condition, its exclusive ingress and egress access, and its extensive parking and outdoor space. The property consists of a one -story 23,220 square foot industrial warehouse building, situated on approximately 56,942 square feet of land, with 44 parking spaces. The building has been used strictly as a storage warehouse for its entire fourteen year existence resulting in a facility that is environmentally very clean. Because it is situated on an L- shaped street, which is only accessible from Grand Avenue and McFadden Avenue, and used only by the businesses on the street, there is very little "general public" vehicle and pedestrian traffic on a typical work day. Staff negotiated a Purchase and Sale Agreement (Agreement) between the County, as purchaser, and B &N Group /JRMV Investments, Inc., the seller, for the purchase of the property for $3,600,000, which was approved by the Board of Supervisors on July 15, 2014. The Agreement is attached hereto as Attachment A. The Agreement contains standard County language, which has been developed and tailored for this specific acquisition by CEO/Real Estate and County Counsel. Fee simple interest in the property was appraised in July 2014, by CBRE, Inc. - Valuation and Advisory Services, a California State Certified General Appraiser, with a market value conclusion of $3,600,000. CBRE's market analysis indicates that the Orange County industrial market experienced an 8.3% increase in gross activity in the first quarter of 2014 and the small building market, consisting of buildings 30,000 square feet and below, has seen rapid increases in sales prices which are expected to continue. Because vacancy and availability rates are low, landlords and sellers have started to increase their asking rental rates and sales prices. The result for the County is a property that is expected to consistently appreciate in value for many years to come. Due diligence investigations have been completed and include: the procurement of a preliminary title report, completion of a current appraisal, a Phase I environmental site assessment, land survey, structural and physical inspection, roof inspection, sewer line inspection, hazardous materials inspection, and a safety inspection. The building and land are in excellent condition and the improvements needed to continue the existing use are minimal. OC Public Works, OC Facilities has expressed an interest in the Normandy Place property for relocation of its operations which currently reside at the Fruit Street Operations Yard near the 5 freeway and Santa Ana Blvd. The Office of the Public Guardian and the Office of the Public Administrator, now separate entities, have an ongoing need for warehouse space so they also represent a viable use option for this property. Because Normandy Place is within the SB -2 zone established by the City of Santa Ana, the County would also have the option to explore the development of a year -round emergency shelter at this site. On July 15, 2014, your honorable Board approved the Purchase and Sale Agreement and Joint Escrow Instructions for the purchase of property at 1217 E. Normandy Place, Santa Ana. Staff is returning to the Board at this time to discuss the due diligence process and for acceptance of the Grant Deed transferring fee title to the County of Orange. Funding for the purchase of this property has already been approved by the Board. Compliance with CEQA: The proposed real estate purchase was previously determined to be exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines, on July 15, 2014 by this Board. This exemption is commonly called the common sense http://cams.ocgov.com/Web—Publisher/Agendatl_t8 2014 files/itnages/At4-001607.H... 11/18/2014 AGENDA STAFF REPORT Page 3 of 3 exemption. The activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. There is no possibility that this activity, which is, the proposed approval of the purchase of certain real property in Santa Ana, will have a significant effect on the environment. Any further action related to this property which may constitute a project will be reviewed for compliance with CEQA. FINANCIAL IMPACT: Appropriations and funding were included in the FY 2014 -15 Adopted Budget approved by your Board on June 24, 2014. STAFFING IMPACT: 010 ATTACHMENT(S): Attachment A - Purchase and Sale Agreement Attachment B - Grant Deed Document Attachment C - First Amendment to PSA http: // cams. ocgov .com /Web_Publisher /Agendat 1_18_2014_files /images /A14- 001607.H... 11/18/2014