HomeMy WebLinkAbout19C - RFP FOR SALE OF PROPERTIESREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MARCH 5, 2019
TITLE -.1
AUTHORIZE THE REQUEST FOR PROPOSALS
FOR THE SALE OF CITY -OWNED PROPERTIES
WITH RESTRICTED USE OF PROCEEDS AND
ALLOW FOR DIRECT NEGOTIATION FOR SALE
OF EXEMPT REAL PROPERTY PER SANTA ANA
MUNICIPAL CODE
(STRATEGIC PLAN NOS. 3,2C, 5A & 6, 1G)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1a Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the Executive Director of the Public Works Agency to proceed with the release of a
Request for Proposals for the sale of City -owned properties purchased with grant funding and with
restricted use of proceeds, and allow for direct negotiation for sale of exempt real property,
consistent with Santa Ana Municipal Code (SAMC) Article V, Sections 2-706 and 2-709.
DISCUSSION
The City is the owner of substantial real property assets and interests (Exhibits 1 and 2) that have
been acquired for its municipal operations and various improvement projects. Over time, the need
for these assets and interests can change, thereby creating an opportunity for their use for other
purposes. By allowing remnant, unneeded City -owned real property assets to be employed for
other purposes, the City and its residents can benefit from private improvements which provide
property tax and sales tax revenue through economic development opportunities.
The City's remnant parcels for disposition associated with the recommended action above were all
acquired for various public improvement projects with Federal and State grants. These properties
are not subject to the Surplus Lands Act (SLA). For purposes of the SLA, surplus land means
"land owned by any local agency, that is determined to be no longer necessary for the agency's
use, except property being held by the agency for the purpose of exchange." All of the properties
that are subject to this Council action, are leftover parcels from right-of-way transactions that have
never been put to any municipal or other use and are being held solely for purposes of exchange.
The proceeds from the sale of these properties are restricted and must be used to reimburse the
granting agencies, and/or to fund improvements within the same or similar project.
The recommended action will authorize staff to solicit proposals to dispose twenty-three combined
parcels and allow direct negotiations with adjacent property owners for five substandard parcels.
19C-1
Approve Process for Sale of Exempt Remnant Properties
March 5, 2019
Page 2
Legal Authority to Dispose of City -Owned Parcels
Article V, Section 2-706 of the SAMC governs the sale of real property by the City, and contains
provisions for sale to the highest bidder. For substandard parcels that do not meet the minimum
zoning requirements for development, Article V, Sections 2-706.1 and 2-709 allow for the sale of
any parcel of City -owned real property by direct negotiation with adjacent property owner. If direct
negotiations for sale of property to adjacent property owners are not successful, staff will include
these substandard property slivers in a subsequent disposition RFP.
Activation of Exempt Properties for Disposition
Staff from the Community Development, Planning and Building, and Public Works Agencies
evaluated the various methods for disposition and is recommending the issuance of an RFP. The
RFP process, versus alternative methods, is preferred because it ensures that the City receives
maximum value, in terms of public and economic benefits to the community. The RFP process
provides the opportunity for a greater response incorporating meaningful land use and
development, while requiring proposers to address all City requirements in a clear and realistic way
when presenting an offer.
Proposed RFP submittal requirements and criteria for evaluation are comprised of the following:
• Project Narrative & Preliminary Site Plan for Proposed Development
• Bid Amount and Bond Verification
• Fiscal and Economic Benefit Analysis
• Project Specific Timeline(s)
If approved, the RFP will be released at the end of February 2019 with a five-week deadline for
submittals. The anticipated award date for this RFP is May 2019 following proposal evaluations
and negotiations with selected parties.
The estimated economic development benefits that will occur as a result of activation of these
vacant lots will promote revenue generating development and increase local workforce base.
Additionally, disposing of these exempt properties will generate sustainable City general fund
sources with increased property tax rolls and additional utility user taxes collected on an annual
basis.
Real Property Disposition Policy Exemption
The Real Property Disposition Policy, received and filed at the City Council meeting of October 16,
2018, established procedures whereby remnant, City -owned real property assets and interests are
identified and recommended for disposition through sale, lease, easement, license, or agreement.
However, all of the properties associated with this recommended action were acquired with
restricted grant funding and are, thus, exempt from the previously approved Policy.
Estimated Financial and Economic Benefits
The sale of Real Property is estimated to generate about $10 Million which will be used to
reimburse project expenditures and replenish grants used on their acquisition as well as funding
more public improvements along Bristol Street. More importantly, the sale of these properties
would lead to other significant economic activity spurred from the development of various projects
on each parcel including creating local jobs, sales tax, and increased property tax that will be
19C-2
Approve Process for Sale of Exempt Remnant Properties
March 5, 2019
Page 3
realized by the city in perpetuity. In addition, the City will be relieved from the continuing
maintenance, clean up, and liability from owning these vacant parcels.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #3 — Economic Development, Objective #2
(Create new opportunities for business/job growth and encourage private development through
new General Plan and Zoning Ordinance policies), Strategy C (Support business development and
job growth along transit corridors through the completion of critical transit plans/projects).
Approval of this item allows the City to meet Goal #3— Economic Development, Objective #5
(Leverage private investment that results in tax base expansion and job creation citywide), Strategy
A (Identify and market underutilized properties {city and non -city owned} for new development that
will creative new jobs and expand the City's tax base).
Approval of this item allows the City to meet Goal #6 — Community Facilities & Infrastructure,
Objective #1 (Establish and maintain a Community Investment Plan for all City assets), Strategy G
(Develop and implement the City's Capital Improvement Program in coordination with the
Community Investment and Deferred Maintenance Plans).
FISCAL IMPACT
TheqaVi no fiscal impact associated with this action at this time. Accounting details will be provided
att e ti a that each sale agreement is presented to Council for approval.
Executi a Director
Public Vqorks Agency
i \v
Steven A. Mendoza
Executive Director
Community Development Agency
FSS/EW G/JG/HG
Exhibits: 1. Property List
2. Property Location Maps
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