REQUEST FOR CITY COUNCIL ACTION
DATE: 03/15/2023
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
SUBJECT:
Title
RESOLUTION DECLARING THAT THE PROPERTY LOCATED AT 725 SOUTH MAIN STREET AND IDENTIFIED AS ASSESSOR’S PARCEL NUMBER 117-191-011 IS SURPLUS LAND
End
EXECUTIVE SUMMARY:
This staff report asks Council to adopt Resolution 2023-020 declaring 725 South Main Street as surplus land. The property is currently tenanted by 99 Cent Stores Only, LLC and has an existing lease with an end term date of February 24, 2024.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Adopt Resolution 2023-020, declaring that the property located at 725 South Main Street and identified as assessor's parcel number 117-191-011 is surplus land and is no longer necessary for the City’s use.
b. Authorize the City Manager, or his/her designee, to follow the procedures set forth in the Surplus Land Act on the disposition of the property.
Body
BACKGROUND & HISTORY:
The City acquired the property located at 725 South Main street in February 2022 as part of its Downtown revitalization efforts. The site has currently utilized as a 27,000 square-foot (approx.) commercial building that is tenanted by 99 Cent Stores Only LLC.
The Surplus Land Act (SLA) governs the disposition of City-owned property that is no longer needed for the City’s use. Per the SLA, the City is required to inventory City-owned property in excess of the City’s foreseeable needs, and proceed with declaring City property surplus or exempt surplus. Staff is recommending that Council declare the subject property (APN 117-191-011) as surplus land.
ANALYSIS:
Per the SLA, before the City can take any action to retain or dispose of land that is no longer needed for the City’s use, it must first declare the property as surplus land or exempt surplus land. The parcel meets the definition of surplus land pursuant to Government Code Section 54221(f)(1)(E) because the property is land owned in fee simple by the city, is suitable for redevelopment, and is no longer necessary for the city’s use.
The City Council’s adoption of Resolution 2023-020 would constitute formal action declaring 725 South Main Street as surplus land. The City’s determination will be submitted to the California Department of Housing and Community Development. Additionally, per the SLA, any local agency disposing of surplus land is required to first offer to sell or lease the land to certain entities for specified uses including low- and moderate-income housing, parks and recreation, school facilities, etc. by sending a written notice of availability (NOA) to such entities and provide for a period of up to 60 days to allow such parties to submit letters of interest. If the City receives a letter of interest from one or more of the entities, the City must enter into a 90-day good-faith negotiation period. If the City does not agree to price and terms with any entity to which the NOA was sent, or if no entity to which the NOA was sent responds to that notice, then the land may be disposed of outside of the SLA.
FINANCIAL IMPACT:
The declaration of the parcel as surplus property has no financial impact on the City.
ENVIRONMENTAL ANALYSIS:
This action before Council is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15312 of the Guidelines for CEQA, which states that the sale of surplus government property that is not located in an area of statewide, regional or areawide concern pursuant to Section 15206(b)(4) is exempt from CEQA. Resolution No. 2023-020 declares that the property located at 725 South Main Street, which is not located in an area of statewide, regional or areawide concern pursuant to Section 15206(b)(4), is surplus land. This action is the first step in disposing of surplus government property and is therefore exempt from the requirements of CEQA and no environmental analysis is required.
PREPARED BY: JESS GARCIA, ECONOMIC DEVELOPMENT ADMINISTRATOR
REVIEWED BY: JESSICA GONZALES, ECONOMIC DEVELOPMENT DIRECTOR
Attachments:
1. Exhibit 1 - Resolution No. 2023-020
2. Exhibit 2 - Site Map