REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
BY: PHIL SKEI, Assistant Director
Planning and Development Department
SUBJECT
Title
Actions pertaining to City-owned Assessor’s Parcel Number 456-030-34T and 456-030-44 (District 7)
1. *** RESOLUTION - Revoking the Declaration of Accessor’s Parcel Number (APN) 456-030-34T (Subject to Mayor’s Veto)
2. *** RESOLUTION - Declaring Property identified as Assessor’s Parcel Numbers 456-030-34T and 456-030-44 to be exempt surplus land and initiating the open and competitive request for proposals for an extended land lease of the property for permanent affordable and/or mixed income housing development (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends the City Council:
1. Adopt a Resolution revoking Resolution No. 2020-042, adopted March 5, 2020, as it pertains to Assessor’s Parcel Number 456-030-34T, declaring the property to be surplus.
2. Adopt a Resolution Declaring a 9.37-acre parcel of land, identified as Assessor’s Parcel Number (APN) 456-030-34T and 456-030-44, merged on November 17, 2020, to be exempt surplus land and directing staff to comply with the open and competitive request for proposals (RFP) process for the disposition of this property for a permanent affordable and/or mixed income housing development as required by FMC Section 4-204.
EXECUTIVE SUMMARY
On March 5, 2020, Assessor’s Parcel Number (APN) 456-030-34T was one of three City-owned parcels declared surplus, by the adoption of Resolution No. 2020-042. On June 29, 2022, APN 456-030-44, an adjacent parcel to 456-030-34T, was donated to the City for the development of permanent affordable and/or mixed income housing. On November 17, 2022, the City merged APN 456-030-34T and APN 456-030-44, creating one 9.37-acre parcel of vacant land.
APN 456-030-34T has since been identified by staff for the development of permanent affordable and/or mixed income housing, necessitating the City to revoke Resolution No. 2020-042, as it pertains to APN 456-030-34T, attached as “Resolution to Revoke.”
In accordance with the State of California Assembly Bill No. 1486 and 1255, commonly referred to as the Surplus Land Act (SLA), the Council shall take formal action in a public meeting to declare this City-owned property as exempt surplus land. The attached “Resolution - Exempt Surplus” declares APN 456-030-34T and 44, as exempt surplus real property pursuant to Government Code section 37364 and section 54221(f)(1)(A) and shall comply with all development conditions as required under this exemption.
APN 456-030-34T and 44 is a suitable site for the development of permanent affordable and/or mixed income housing. Staff recommends Council to initiate an open and competitive request for proposals (RFP) process for an affordable and/or mixed income housing development as required pursuant to FMC Section 4-204.
BACKGROUND
City staff has concluded that APN 456-030-34T and 44 is exempt surplus real property, as APN 456-030-44 was donated to the City on June 29, 2022, for the exclusive purpose of developing permanent affordable and/or mixed income housing.
The proposed development and affordability restrictions support the findings that the property qualifies as exempt from the California Surplus Land Act as stated in Government Code Section 37364(a): “…whenever the legislative body of a city determines that any real property or interest therein owned or to be purchased by the city can be used to provide housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code or as defined by the United States Department of Housing and Urban Development or its successors, and that this use is in the city's best interests, the city may sell, lease, exchange, quitclaim, convey, or otherwise dispose of the real property or interest therein at less than fair market value, or purchase an interest in the real property, to provide that affordable housing under whatever terms and conditions the city deems best suited to the provision of such housing.”
On May 18, 2023, the State of California Department of Housing and Community Development (HCD) concurred with the Resolution prepared to declare Exempt Surplus. HCD concurred that a development of the type described herein is in compliance with the following requirements of Government Code section 37364:
a) Minimum of 80% of the area of any parcel shall be used for development of housing (remaining 20% could be ancillary commercial or park/open space use)
b) Not less than 40% of the total number of housing units developed on any parcel pursuant to this section shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households (80% of area median income), and at least half of
which (20% of the units) shall be affordable to very low-income households (50% of area median income).(HCD chart to calculate income limits: <https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits/docs/income-limits-2021.pdf>.)
c) Dwelling units shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years and shall be recorded against the property.
The attached Resolution and findings are a requirement of SLA to designate the property as exempt surplus land. The request for proposals process initiated by this Council action will require any developer to comply with the development parameters outlined above. The City Attorney has reviewed and approved both attached Resolutions to form.
ENVIRONMENTAL FINDINGS
This is not a project for the purposes of the California Environmental Quality Act.
LOCAL PREFERENCE
Adoption of this Resolution to Declare real property exempt surplus, is not subject to local preference.
FISCAL IMPACT
There is no fiscal impact to the City at this time.
Attachments:
Resolution to Revoke
Resolution - Exempt Surplus