Agenda

Return

C.179

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	June 26, 2018

Contra

Costa

County

Subject:

APPROVE a Sale of Real Property located at 205 41st Street and 3927 Bissell Avenue in Richmond to RYSE, Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/26/2018

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Angela Bell, (925) 957-2451
cc:	Kimberly Aceves, Executive Director RYSE,Inc. Kristin Sherk, DCD

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 26, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

DECLARE the real property located at two addresses in Richmond: 205 41st Street (Parcels 1 – 3) and 3927 Bissell Avenue (Parcel 4) to be surplus and no longer necessary for the present or future needs of the County;


APPROVE the sale of (i) Parcels 1 - 3 for $175,000, and (ii) Parcel 4 for $25,000 (together, the Property) to RYSE, Inc., a California non-profit corporation (RYSE) in accordance with the Purchase and Sale Agreement, as permitted by Government Code Section 26227;

RECOMMENDATION(S): (CONT'D)

AUTHORIZE the Public Works Director, or designee, to execute the Purchase and Sales Agreement, and all ancillary documents necessary to implement the transfer of the Property, on behalf of the County;

ALLOCATE $25,000 from the Livable Communities Trust (District 1 portion) to the County’s General Fund account for the purchase of Parcel 4 by RYSE, as recommended by Supervisor Gioia and as permitted by Government Code Section 26627;

DETERMINE that the activity is not subject to the California Environmental Quality Act (CEQA), pursuant to Article 5, Section 15061(b)(3) of the CEQA Guidelines.

AUTHORIZE the Chair, Board of Supervisors, or designee, to execute a Grant Deed on behalf of the County to transfer the Property to RYSE;

DIRECT the Director of the Conservation and Development Department (DCD) to file a Notice of Exemption with the County Clerk;

AUTHORIZE the Public Works Director, or designee, to arrange for payment of a $50 fee to the County Clerk for filing, and a $25 fee to DCD for processing the Notice of Exemption.

AUTHORIZE the Auditor-Controller’s Office to transfer $25,000 from the Livable Communities Trust to the County’s General Fund account;

DIRECT the Real Estate Division of the Public Works Department to cause the Grant Deed to be recorded on behalf of RYSE in the office of the Clerk-Recorder.

FISCAL IMPACT:

The General Fund, Org 4303, will receive 100% of the $200,000 sale proceeds. Of the $200,000 in proceeds, $25,000 will be transferred from the District I portion of the Livable Communities Trust Fund for the purchase of Parcel 4, and $175,000 purchase price for Parcels 1 – 3 will be paid from an allocation of Community Development Block Grant (CDBG) funds that this Board approved on June 12, 2018.

BACKGROUND:

The County acquired Parcels 1 – 3 in 1974 or 1975. The property is improved with a one-story structure containing approximately 6,600 square feet on a lot that is approximately 17,500 square feet in size. Construction of the improvements was completed in 1975. During some or all of the time that the property was used by the County, it was used by the Health Services Department as part of the County’s general assistance program.

The County began leasing Parcels 1 - 3 to RYSE in 2009. RYSE uses the property to operate a youth center for young people (age 12 – 22) in West County. The youth center provides a safe space for youth to meet and participate in a variety of programs and services. The programs offered include, health and wellness, media, technology, arts, culture, education and career programs as well as youth leadership and advocacy, trauma-informed case management and care, youth re-entry programming and support. Under the existing lease, RYSE pays rent in the amount $900 per month and is responsible for utilities and janitorial services. The County is responsible for building maintenance, which is estimated to cost approximately $30,000 per year. In addition, the building suffers from deferred maintenance. It is estimated that the cost of completing the deferred maintenance would be approximately $700,000.

The County acquired Parcel 4 in 1976. Parcel 4 is unimproved land that is in the vicinity of Parcels 1 – 3.

Following its acquisition of the Property, RYSE intends to renovate the existing center to create a 37,000 square foot campus that will expand the space available for youth programs by 300%. With more space, RYSE will be able to expand its programs and the age range of the youth it serves. The new center will be known as RYSE Commons.

RYSE has offered to pay $200,000 for the Property. According to the Real Estate Division of the Public Works Department, the Property has an estimated fair market value of $275,000-350,000. Accepting the RYSE offer would allow the County to eliminate approximately $30,000 of annual maintenance expenses and the significant deferred maintenance on the Property. As a condition of the Grant Deed, the County will reserve a power of termination, which allows the County and its assigns to terminate RYSE’s estate if the Property isn’t used and held for public purposes directly related to youth after school programs, education or the administration of such purposes.

The Livable Communities Trust Fund (Fund) is a Special Revenue Mitigation Fund established by the Board of Supervisors on November 15, 2005, following the approval of the Camino Tassajara Combined General Plan Amendment Project, also known as the Alamo Creek and Intervening Property residential project, to implement a condition of approval. The residential developers pay a fee of $8,000 per unit (excluding affordable housing portion of the projects) into the Fund. The Department of Conservation and Development administers the Fund. Upon the completion of the build-out of the development projects contributing to the fund revenue balance, deposits into the Fund will total $8,448,000. As of April 17, 2018, total deposits in the account (including interest) are $8,313,574, of which $2,481,475 has been allocated to projects. There has been $761,224.72 in expenditures. Previously approved Fund allocations are shown in the “Livable Communities Trust Allocations to Date,” which is attached. The Fund was established to implement the County’s Smart Growth Action Plan. The acquisition of the Property by RYSE supports goal four of the Smart Growth Action Plan to promote economic revitalization in urban infill communities.

CONSEQUENCE OF NEGATIVE ACTION:

If the conveyance of the Property in accordance with the Purchase and Sale Agreement and the allocation of Livable Communities Trust Fund monies are not approved, RYSE, Inc. will not be able to expand the existing youth center.