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HomeMy WebLinkAbout06 SURPLUS PROPERTY DECLARATION FOR ASSESSORS DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E Agenda Item 6 —�� Reviewed: os AGENDA REPORT City Manager �� Finance Director MEETING DATE: JUNE 15, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: ECONOMIC DEVELOPMENT DEPARTMENT/PUBLIC WORKS DEPARTMENT SUBJECT: SURPLUS PROPERTY DECLARATION FOR ASSESSORS PARCEL NUMBER 396-333-02 SUMMARY Resolution 21-45 will declare APN 396-333-02 as surplus land pursuant to California Government Code Section 54221. RECOMMENDATION It is recommended that the City Council take the following actions: 1. Adopt Resolution 21-45: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSORS PARCEL NUMBER 396-333-02 AS SURPLUS LAND PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54221. 2. Authorize the City Manager to sign and direct staff to submit the appropriate documentation to the California Department of Housing and Community Development in connection with the Resolution. FISCAL IMPACT Not applicable BACKGROUND The Surplus Land Act (SLA) defines the process for local agencies to follow when disposing of surplus parcels of land owned in fee that are no longer needed for a government use. The SLA set general timelines for posting notification of an available surplus property, defined the process for negotiating with an affordable housing developer in the event that one expressed interest, and the process of disposition absent any notification of interest or in the event negotiations do not result in a sale to a qualifying affordable housing developer.. DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E Agenda Report—Surplus Property Declaration June 15, 2021 Page 2 Assembly Bill 1486 (Ting, 2019) amended the SLA and significantly changed the terms of the SLA, as well as added substantial penalties for noncompliance. The Final Housing and Community Development Department (HCD) Guidelines (Final HCD Guidelines) for compliance with the SLA were published in April 2021. The SLA and Final HCD Surplus Act Guidelines grant certain exemptions for various types of property, and for property subject to agreements entered into prior to September 30, 2019. The City Council authorized the abandonment of the Tustin Avenue Well located on Assessors Parcel Number (APN) 396-333-02 on April 20, 2021. APN 396-333-02 is owned by the Water Enterprise. The property is now ready to be disposed of pursuant to the Surplus Land Act and Final HCD Surplus Land Act Guidelines. DISCUSSION Resolution 21-45 states the applicable findings and declares APN 396-333-02 as surplus land. Staff will prepare and submit the required Notice of Availability (NOA) to the entities prescribed by the SLA and Final HCD Surplus Land Act Guidelines These entities will have sixty (60) days to respond to the NOA, indicating an interest in purchasing or leasing the property. - If no notifications of interest are received within sixty (60) days, the City may dispose of the property without further regard to the SLA. The only requirement is if more than 10 residential units are developed, 15% of the total amount of units must be for reserved for very low and low income households. - If the City receives a notice of interest within the sixty (60) day NOA period, then the City must negotiate in good faith for ninety (90) days with the respondents. If the price or terms cannot be agreed upon after the full 90-day good faith negotiation period, then the City may dispose of the property without further regard to the SLA. The only requirement is if more than 10 residential units are developed, 15% of the total amount of units must be for reserved for very low and low income households. DocuSigned by: DocuSigned by: visfon(A'r 6s{w obm( .s S. Sfa& l evKoster g0<j8CSE461&ack, P.E. Director of Economic Development Director of Public Works/City Engineer DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E Agenda Report— Exempt Surplus Property Declaration June 15, 2021 Page 3 5II''DocuSigned by: IA�-LL lkenfl��th'PigUee Senior Management Analyst ATTACHMENTS - Resolution 21-45 DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E RESOLUTION NO. 21-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSORS PARCEL NUMBER 396-333-02 AS SURPLUS LAND PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54221 . WHEREAS, the City of Tustin Water Enterprise (Water Enterprise) owns certain real property consisting of approximately 0.19 acres (Site) located on Assessors Parcel Number 396-333-02; and WHEREAS, the Site was acquired to create the Tustin Avenue Well which was drilled in 1952; and WHEREAS, existing law established the Surplus Land Act (SLA)for local agencies to follow when disposing of surplus properties no longer needed for government use or for revenue generation; and WHEREAS, on October 9, 2019, California Governor Gavin Newsom signed Assembly Bill 1486 (Ting) into law, making substantive amendments to the SLA effective January 1 , 2020; and WHEREAS, the amended SLA requires local agencies to declare land as "surplus land" or "exempt surplus land" prior to disposing of property owned by the local agency; and WHEREAS, the final Surplus Land Act Guidelines were published by the California Housing and Community Development Department in April 2021 with additional guidance; and WHEREAS, the City Council approved the abandonment of the Tustin Avenue Well on April 20, 2021 ; and WHEREAS, the City Council desires to initiate a disposition process for the Site; and WHEREAS, the City will send a written notice of availability for the Site by electronic mail to all of the entities identified in Government Code section 54222; and WHEREAS, as contemplated by Government Code section 54222 and 54227, if one of the entities/agencies desires to purchase or lease the Site after having received the notice of availability, it must indicate its interest to do so in writing within 60 days of receiving the City's notice, and the City and the entity/agency so responding to the notice will negotiate in good faith to determine whether price and terms for the disposition of the Site can be agreed upon; and DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E WHEREAS, as contemplated by Government Code 54223 and 54227, in the event no agreement is reached between the City and any interested entity/agency after a good faith negotiation period of 90 days, the Site may be disposed of without further regard to the SLA, except that if the City then enters into an agreement with any entity which results in the construction of ten or more residential units, the new entity shall provide at least 15 percent of the total number of units as affordable. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN, THAT: 1 . The foregoing recitals are hereby incorporated and adopted as the findings of the City Council; and 2. This action results in no binding commitment by the City to authorize or advance the disposition of the Site, will not result in a direct or indirect physical change in the environment, and does not constitute an "approval' of a "project" pursuant to CEQA Guidelines Sections 15004 and 15352; and 3. Subject to the findings above, the Site comprised of APN 396-333-02 is hereby declared "surplus land". PASSED and ADOPTED by the City Council of the City of Tustin at a regular meeting on 15th day of June, 2021. LETITIA CLARK, Mayor ATTEST: ERICA N. YASUDA, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No 21-45 was duly DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E passed and adopted at a regular meeting of the Tustin City Council, held on the 15th day of June, 2021 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk