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:
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Ryan Swiontek
Deputy Director of Real Property
Attachments:
1. Parcel Map 401-58
2. Resolution 24-70
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Signed by:Signed
by: �i9LLCP
Kenneth iguee
Real Property Manager
Docusign Envelope ID: 7ABO5F87-574B-4CBB-8B1 1 -B9D77ED61 BD7
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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