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Board adopts resolution to exchange Harmony Court senior-apartment parcel, citing poor lease terms
Summary
The board adopted Resolution AS-03-2425 to authorize exchange of district-owned land housing Harmony Court Senior Apartments as exempt surplus land under the Surplus Lands Act; staff said a portfolio buyer will acquire the site and the exchange proceeds will be reallocated to income-generating property or other investments.
The Torrance Unified School District board adopted Resolution AS-03-2425 authorizing and approving an exchange agreement and joint escrow instructions for a parcel currently occupied by Harmony Court Senior Apartments.
District staff explained the property had been held under a ground lease that the district considers disadvantageous, including a negotiating history in which the leaseholder stopped paying rent to the district. Staff said Standard Communities — a buyer of a larger portfolio that includes this site — agreed to purchase the portfolio, enabling the district to exchange the parcel into a different property type that is expected to generate ongoing income for the district.
“This was on the closed session agenda last time because we were in negotiations around this particular item,” staff said, describing the lease history and the district’s opportunity to move the asset into a more favorable arrangement. Staff noted the transaction’s proceeds (discussed in the meeting as about $10,300,000) will be available later in the year and that the board would later review proposals for how best to invest or deploy those funds.
The board moved and adopted the resolution by voice vote. The action was described as exempt from the Surplus Lands Act provisions that otherwise govern sale of district surplus property.
What it means: The exchange is intended to remove the district from a nonperforming ground lease and to secure an asset that will generate more reliable revenue for district purposes. The staff presentation signaled a future report to the board with recommended investment vehicles or property options for the funds.
