Item 17 - Public Hearing - Purchase and Sale Agreement for 1901 W. Walnut Street

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Purchase and Sale Agreement for 1901 W. Walnut St. February 17, 2026 Page 3 Pursuant to Government Code Section 65402, the Planning and Building Agency reviewed the proposed Purchase and Sale Agreement for the City -owned property located at 1901 W. Walnut Street (APN 007-332-08). As documented in the General Plan Conformance Memorandum dated January 21, 2026, the Planning Agency determined that the sale of the property is in conformance with the City of Santa Ana's 2022 General Plan (Exhibit 5). Approval of the Purchase and Sale Agreement (Exhibit 6) will finalize the City's partnership with THRIVE Santa Ana, Inc. and enable the successful implementation of a community -led micro -farm project that advances local economic opportunities, public health, and neighborhood engagement. Surplus Land Act Compliance Government Code Section 54221(f)(1)(B) provides that the term "surplus land" does not include: "Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open -space or low- and moderate -income housing purposes." Based on this definition, if the subject property is less than one-half acre in size and is not contiguous to any state or local agency -owned land used for such purposes, it qualifies for the Small Lot Exemption. In December 2025, the City received written confirmation (Exhibit 7) from the State's Department of Housing and Community Development (HCD) that the property located at 1901 W. Walnut Street meets these criteria, being less than one-half acre in area and not adjoining any qualifying state or local agency parcels, and therefore qualifies for the Small Lot Exemption under the Surplus Land Act. As a result, the City's surplus land exemption requirements have been satisfied through this action, and no City Council resolution is required. Economic Development Subsidy Government Code Section 53083 requires that the City Council must hold a noticed public hearing and, prior to the public hearing, provide information to the public through the City's website regarding the proposed economic development subsidy. As part of the approval process, an Economic Development Subsidy Report (Exhibit 4) must be completed and submitted detailing the structure of the public subsidy, projected tax benefits, and estimated number of jobs that would be created by the subsidy. This report shall remain available to the public and posted on the City's website until the end date of the economic development subsidy. FISCAL IMPACT Funds in the amount of $852,000 will be deposited into the Miscellaneous Revenue Sale of Land account (no. 01102002-57071).