HomeMy WebLinkAbout09 CITY COUNCIL CONSIDERATION AND APPROVAL TO RELEASE A COMPETITIVE OFFERING FOR CITY-OWNED REAL PROPERTYDocusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
AGENDA REPORT
�sT
MEETING DATE
TO
FROM
APRIL 1, 2025
ALDO E. SCHINDLER, CITY MANAGER
9
Agenda Item
Reviewed:
Initial
City Manager
Finance Director
N/A
BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY
SUBJECT: CITY COUNCIL CONSIDERATION AND APPROVAL TO RELEASE
A COMPETITIVE OFFERING FOR CITY -OWNED REAL PROPERTY
AT 150 E. FIRST STREET
SUMMARY:
Staff is requesting City Council consideration and approval to release a competitive offering
for 0.4 acres of City -owned real property at 150 E. First Street within Development Area 2
of the Downtown Commercial Core Specific Plan pursuant to the procedures recently
approved by the City Council in Resolution 25-10.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Authorize staff to release a competitive offering for 0.4 acres of City -owned real
property at 150 E. First Street within Development Area 2 of the Downtown
Commercial Core Specific Plan pursuant to the procedures recently approved by the
City Council in Resolution 25-10; and
2. Authorize the City Manager to continue and/or enter into temporary leases and
licenses prior to final disposition.
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There is no fiscal impact associated with this item.
CORRELATION TO THE STRATEGIC PLAN:
The consideration and approval to release a competitive offering for 0.4 acres of City -
owned real property at 150 E. First Street within Development Area 2 of the Downtown
Commercial Core Specific Plan 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: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
City Council Agenda Report
150 E First Street Offering Approval
April 1, 2025
Page 2
BACKGROUND AND DISCUSSION:
The City currently owns an approximately 0.4 acre property (Site) within the greater
approximately 220-acre Downtown Commercial Core Specific Plan (DCCSP). The Site is
currently listed as Assessor's Parcel Number (APN) 401-583-01 as shown on Attachment 1
and has an address of 150 E. First Street. The Site is within Development Area 2 (DA 2) of
the DCCSP and is bounded by Prospect Avenue to the east, First Street to the north,
Wienerschnitzel to the west and Hardrock Management Corporation to the south. The Site
contains an approximately 3,849 SF commercial building that is currently vacant but had
been previously used for a childcare facility from 1987-2018 and, prior to that, meeting space
for military nonprofit groups. The Site was acquired in 2018 with the requirement that the
three (3) plaques on the exterior of the commercial building remain on site or are relocated
to "a more prominent location in the City."
DA 2 is a subcategory of the Downtown Mixed Use Land Use Designation within the DCCSP
which generally allows for retail, service, office, food service, medical, hospitality, auto
service and residential mixed use (subject to the approval of a discretionary entitlement). Any
change in land use or development potential will require a DCCSP amendment. The current
land use plan for DCCSP is included as Attachment 2.
The Site was declared as exempt surplus land under the Surplus Land Act (SLA) by the City
Council on January 21, 2025, and the exempt declaration was approved by the California
Department of Housing and Community Development (HCD) on February 7, 2025. The City
can now proceed to negotiate and dispose of the property as it sees fit with no affordability
requirements if residential is ever constructed.
On February 4, 2025, the City Council adopted Resolution 25-10 which established a policy
requiring City Council consideration and approval prior to the release of any future
competitive offerings for the disposition of City -owned real property. Pursuant to Resolution
25-10, staff is requesting City Council consideration and approval to prepare and release a
competitive offering for the Site that will solicit offers and/or proposals for land uses that are
permitted under the current zoning as well as other alternative land uses that support the
City's broader economic development, community benefit, and/or strategic planning goals.
If a proposal for the Site includes land uses not currently allowed under the DCCSP, it would
be subject to future Council consideration and approval of a specific plan amendment.
Staff would also propose authorizing the City Manager to continue temporary leases and
licenses on the Site before final disposition to generate interim rental revenue as may be
appropriate.
Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
City Council Agenda Report
150 E First Street Offering Approval
April 1, 2025
Page 3
Signed by: Signed by: 1
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Brian Moncrief Ryan Swiontek
Deputy City Manager — Real Property Deputy Director of Real Property
Signed by:
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Kenneth Piguee
Real Property Manager
Attachments:
1. Parcel Map 401-58
2. Existing Downtown Commercial Core Specific Plan land use plan
Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
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PARCEL NUMBERS BOOK 401 PAGE 58
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Docusign Envelope ID: 783D7024-27D3-4446-8EF6-DAE31 E21 DA51
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Downtown Commercial (DC)
Civic/Institutional (CI)
Figure 2.2 Land Use Plan