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HomeMy WebLinkAbout09 RESOLUTION DECLARING ASSESSOR’S PARCEL NUMBER 401-583-01 AS SURPLUS LANDDocusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7 MEETING DATE TO: FROM: SUBJECT: SUMMARY: OCTOBER 1, 2024 ALDO E. SCHINDLER, CITY MANAGER Agenda Item 9 Reviewed. Initial City Manager Finance Director N/A RYAN SWIONTEK, DEPUTY DIRECTOR OF REAL PROPERTY RESOLUTION DECLARING ASSESSOR'S PARCEL NUMBER 401- 583-01 AS SURPLUS LAND Resolution 24-70 will declare Assessor's Parcel Number 401-583-01 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 24-70: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSOR'S PARCEL NUMBER 401-583-01 AS SURPLUS LAND PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54221. 2. Authorize the City Manager to circulate a Notice of Availability and submit the appropriate documentation to the California Department of Housing and Community Development in connection with the Resolution. FISCAL IMPACT: Adoption of Resolution 24-70 itself does not have a financial impact to the City, however noticing and negotiating disposition of property as required under the Surplus Land Act may have financial impacts to the City. CORRELATION TO THE STRATEGIC PLAN: The declaration of Surplus Land for Assessor's Parcel Number 401-583-01 contributes to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood Development. Specifically, this item implements Strategy 14 which is to develop a strategic plan for Tustin's development which focuses on in -fill development in the Downtown Commercial Core and Red Hill Specific Plan areas. Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7 City Council Agenda Report Surplus Land Declaration October 1, 2024 Page 2 BACKGROUND AND DISCUSSION: 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 the City's use. The SLA sets general timelines for posting notification of available surplus property, defines the process for negotiating with an affordable housing developer in the event one expresses interest, and the process for disposition absent any notification of interest or in the event negotiations do not result in a sale to a qualifying affordable housing developer. Assembly Bill 1486 (Ting, 2019) significantly amended the terms of the SLA, as well as added substantial penalties for noncompliance. The California Housing and Community Development (HCD) Surplus Land Act Guidelines (HCD Guidelines) for compliance with the SLA were published in April 2021. Assembly Bill 480 (Ting, 2023) and Senate Bill 747 (Caballero, 2023) clarified elements of the SLA and provided new or consolidated exemption options for surplus land. HCD has also issued Final Updated Surplus Land Act Guidelines (Final Updated SLA Guidelines) to reflect new legislation which were adopted on August 1, 2024. The SLA appears to place all City owned property within the newly defined meaning of "surplus land," and therefore the City is approaching all dispositions as subject to the SLA. The City has chosen to comply with the law as prescribed in order to avoid tying property up in lawsuits, and continuing to expedite development of City owned property given the threat of substantial penalties for noncompliance (30%-50% of final land sale or lease price). Should the City Council adopt Resolution 24-70, staff will then release the Notice of Availability (NOA) as required by the SLA and Final Updated SLA Guidelines to the entities listed in California Government Code 54222. Once the NOA is released, a 60-day period begins for entities to respond to the NOA with a notice of interest to purchase or lease the property. If any notices of interest are received during the 60-day period, the City shall negotiate in good faith for up to 90 days with one or more responding entities to determine whether price and terms for the sale or lease of the property can be agreed upon. If no responses are received during the 60-day period, or if negotiations during the subsequent 90-day period are unsuccessful, the property may be disposed of without further SLA implications. The only remaining requirement is that the City must record a covenant prior to the sale or lease of the property indicating that if ten (10) or more residential units are ever constructed on the property, fifteen (15) percent of the total amount of units shall be provided as affordable to lower income households. Disposition documents and entitlements would be brought before the City Council at a future date with either (1) an entity that responded to the NOA, or (2) a future competitive process or sole source process for a development project that can occur after the NOA process is completed. Docusign Envelope ID: 7AB05F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 City Council Agenda Report Surplus Land Declaration October 1, 2024 Page 3 Signed by: j�ailn, �Wib� r-�eseaeeae Ryan Swiontek Deputy Director of Real Property Attachments: 1. Parcel Map 401-58 2. Resolution 24-70 F Signed by:Signed by: �i9LLCP Kenneth iguee Real Property Manager Docusign Envelope ID: 7ABO5F87-574B-4CBB-8B1 1 -B9D77ED61 BD7 'REPAREO FOR ORANGE iR DEPT. PURPOSES ONLY. WES NO GUARANTEE AS TO IOR ASSUMES ANY LIABILITY 1. NOT TO BE REPRODUCED. ERVED. 'ANGE COUNTY ASSESSOR 2007 I ALLEY 283'' TUSTIN CABAND. ST.) STREET 155' TRACT T_—T_ T +oo' r r r r 218' r__I—_ 1 O 1 J I l TUSTINI PAR. 11 I I - W - I O I I s l F.M. 23-31 I O 33' 50' I 50' 50' i 35' 15'1 50' 214 6 218' 8 110 1 112 65' 55' f 3 '33 5 7 9 11 33' 50' 50' 50'4 BLK. 42 - I I I sa4' s, 108.50' S4' 46" 50" 55' 1D0' a PROSPECT 50' I 50' I 59 BLK. A 581 0 2.86 AC. n 50' 100' 1 1183- 66' BLK91 .1 ao• 1 so, so- I ,o. 21 4 16 8 10 112 14 16 18 0 1 3 133' 5 7 uz.sa' 15 50' 17 i19 ' I so' I So, P. m. PAR. i 13 00" A N I 15 I - 14 0 ,7 �0 1 0.516 AC. 9 1 1 315-11 R. 1104-26 tiQ I 1 CI TY 108.50" 50" 152.51, 100' 50' EL CAMINO 1981 TUSTIN CITY L.A. 1-128 TRACT NO. 3 M. M. 9-4 TRACT NO. 555 M. M. 26-15 TRACT NO. 16481 M.M.879-36 to 38 inc. PARCEL MAP P.M. 23-31, 315-11 401-58 PAGE 1 OF 2 7' = 100' J 60' 150' 150' F IABAND. ST. 1 STREET 6 6' — — — — — — — — — — B 0 " TUS TIN 6 12 W m 0a640 BLK. 46 f.oOG. — In 150" 4 10 582---- 95' 95' O_3 9 „0.158 —O o — — — — -- 2 8 CI TY NO. 555 -- ----------- „1 7 55' � 95' I50' A VENUE o N cfl 100" 50' - 10' TRA�T O lO 4 Q 25 584 I 718125• I' 9 �25' 10 if 12 1 2 3 4 5 6 BLK. A 11 50' 9 1 " 9O $O O ., O - 50' 66' TRACT NO.16481j SEE PG. _1__r—J^ Z 40' I 40' ID ST. , REAL — J 57 NOTE — ASSESSOR'S BLOCK & ASSESSOR'S MAP PARCEL NUMBERS BOOK 401 PAGE 58 SHOWN IN CIRCLES COUNTY OF ORANGE 33" 33' Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7 RESOLUTION NO. 24-70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY COMPRISED OF ASSESSOR'S PARCEL NUMBER 401-583-01 AS SURPLUS LAND PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54221 WHEREAS, the City of Tustin (City) owns certain real property consisting of approximately 0.4 acres comprised of Assessor's Parcel Number (APN) 401-583-01 (the "Site"); and WHEREAS, the Site is located within the Downtown Commercial Core Specific Plan boundary; and WHEREAS, the Site was donated to the City by Tustin War Memorial Inc. on June 7, 2018, via a quitclaim deed; and WHEREAS, the Site is located within Development Area 2 of the Downtown Commercial Core Specific Plan (DCCSP). DCCSP Development Area 2 allows for mixed use residential uses and is generally categorized as "Downtown Mixed Use." DCCSP Development Area 2 currently allows a limited amount of residential units; and WHEREAS, the California Legislature established the Surplus Land Act (SLA) for local agencies to follow when disposing of surplus properties no longer needed for government use; 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 City will send a written Notice of Availability (NOA) for the Site to all of the entities required by Government Code section 54222; and WHEREAS, as contemplated by Government Code Sections 54222 and 54227, if an entity or agency desires to purchase or lease the Site after having received the NOA, it must indicate its interest to do so in writing within sixty (60) days of receiving the City's NOA, and the City and the entities/agencies 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: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7 WHEREAS, the City Council is hereby declaring the Site to be "surplus land" for purposes of California Government Code section 54221(b)(1) and will participate in good faith in the process required by the Surplus Land Act, including but not limited to issuing a written NOA in accordance with Government Code Section 54222; and WHEREAS, as contemplated by Government Code Sections 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 ninety (90) days, the Site may be disposed of without further regard to the SLA, except that the City will record a covenant indicating that if ten (10) or more residential units are ever constructed on the Site, fifteen (15) percent of the total number of units shall be provided as affordable to lower income households. 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 401-583-01 is hereby declared "surplus land;" and 4. The City Manager or designee is authorized and directed to circulate an NOA and submit any required documentation to HCD in connection with this Resolution, and to take such other actions as are required or appropriate to implement such direction. PASSED and ADOPTED by the City Council of the City of Tustin at a regular meeting on the 1st day of October, 2024. AUSTIN LUMBARD, Mayor ERICA N. YASUDA, City Clerk Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7 APPROVED AS TO FORM: Signed by: ' gne""d, — o-a�s�-�a2aeo-a�F DAVID E. KENDIG, City Attorney 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. 24-70 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 1st day of October, 2024 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk