The URL can be used to link to this page

Home My WebLink About55D - RESO FOR PROP 625 S CYPRESSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 18, 2020 TITLE: ADOPT A RESOLUTION DECLARING CITY - OWNED PROPERTY AT 625 SOUTH CYPRESS AVENUE AS SURPLUS LAND AND DIRECTING THE CITY MANAGER TO COMPLY WITH THE REQUIREMENTS OF GOVERNMENT CODE 54220 FOR THE SALE OF SURPLUS LAND /s/Kristine CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2" ° Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO I2I1a011,1111,11LTA l:lga RECOMMENDED ACTION Adopt a resolution declaring City -owned property located at 625 South Cypress Avenue as surplus land and direct the City Manager to comply with the requirements of Government Code 54220 et seq. for the sale of surplus land. DISCUSSION The City owns real property located at 625 South Cypress Avenue, commonly known as the Cypress Fire Station. The property, APN # 404-102-06, zoned R2, is 7,188 square feet (0.17 acres) in size and has a 4,350 square foot building that was constructed in 1928. In 1997, the property was listed in the Santa Ana Register of Historic Properties. It has served as a senior center, office and storage space by non-profit groups, and meeting space for neighborhood groups. The Cypress Fire Station has been vacant since June 2014. Staff analyzed the feasibility of utilizing the property for a community use and determined it was not feasible due to lack of parking and the cost associated with the rehabilitation needed to bring the building up to code. Since 2017, the total cost of security and maintenance has been over $70,000, with ongoing costs estimated at approximately $18,649 per year ($9,000 for maintenance and $9,649 for the rental of security windows and doors). In addition to these costs, there were 63 police calls for service between January 2018 and April 2019 within 50 feet of the property, associated with trespassing and other disturbances. Staff recommends that the property be disposed of since it is no longer needed for a City purpose. The sale proceeds and property tax generated may provide funding to enhance City services. Additionally, the future development of the property would eliminate the blight and promote neighborhood livability and sustainability. The Surplus Land Act requires all local agencies to prioritize affordable housing, as well as parks and open space, when disposing of surplus land. New legislation which took effect on January 1, 55D-1 Resolution Declaring 625 South Cypress Avenue Surplus Land February 18, 2020 Page 2 2020 requires that before a local agency take any action to dispose of land, the land must be declared either "surplus land" or "exempt surplus land," as supported by written findings. Furthermore, although the City has its own Disposition Policy, section 54221(b)(1) requires that the land be declared "surplus land" or "exempt surplus land", before a local agency may take any action to dispose of it consistent with an agency's policies or procedures. Adoption of the resolution (Exhibit 1) would declare the property located at 625 S Cypress Avenue (Exhibit 2) as surplus land. Upon the City's determination that the Cypress Fire Station property is surplus land, the procedures set forth in Government Code Section 54220 et seq. must be followed. Those procedures require the City to offer the sale or lease of surplus land to certain public entities for a period of 60 days, as follows: 1. For the purpose of developing low- and moderate -income housing, a written notice of availability of the surplus land shall be sent to any "local public entity" as defined in Health and Safety Code Section 50079 within whose jurisdiction the surplus land is located and to "Housing Sponsors" that have notified the California Department of Housing and Community Development ("HCD") of their interest in surplus land. Local public entities to be notified include the City of Santa Ana Housing Authority. 2. For open -space purposes, a written notice of availability of the surplus land shall be sent to the City of Santa Ana Parks and Recreation Agency, the County of Orange OC Parks, the State Resources Agency or any agency that may succeed to its powers. 3. For the purpose of use by a school district for school facilities construction or open -space purposes, a written notice of availability of the surplus land shall be sent to the Santa Ana Unified School District. If the City receives a letter of interest from any of the above entities, then the City would enter into good faith negotiations concerning the price and terms of the sale with that entity for a period of 90 days. If the price or terms cannot be agreed upon after 90 days (or if no entity gives notice of interest), the City may sell the surplus land without further regard to the surplus land procedures, except that any residential development on the surplus land that contains 10 or more units must restrict 15% of the units for affordable housing. Nothing in the surplus land procedures requires the City to sell the surplus land at less than fair market value. The appraised value of the property is $487, 000. An agreement for the sale of 625 South Cypress Avenue would be brought to the City Council for consideration at a future date. As this property is listed in the Santa Ana Register of Historic Properties, staff will include language in the future sales agreement to ensure exterior preservation and for a plaque memorializing the original use as a fire station, for the sale and any future sale of the property. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Economic Development, Objective #3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy A (continue to explore options citywide regarding the re- 55D-2 Resolution Declaring 625 South Cypress Avenue Surplus Land February 18, 2020 Page 3 use of commercial or industrial buildings that are currently underutilized or vacant for mixed -use residential projects). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Resolution 2. Map of property Lisa Rudloff Executive Director Parks, Recreation and Community Services Agency 55D-3 RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING CITY -OWNED PROPERTY LOCATED AT 625 SOUTH CYPRESS AVENUE, APN# 404- 102-06, AS SURPLUS LAND AND DIRECTING THE CITY MANAGER TO FOLLOW THE PROCEDURES SET FORTH IN THE SURPLUS LAND ACT, CALIFORNIA GOVERNMENT CODE SECTION 54220, ET SEQ., AS AMENDED ON JANUARY 1, 2020, FOR THE SALE OF SURPLUS LAND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby, finds, determines and declares as follows: A. City of Santa Ana (the "City") owns the real property commonly known as the Cypress Fire Station (the "Property") located at 625 South Cypress Avenue, consisting of 7,188 square feet (0.17 acres), including a 4,350 square foot building that was constructed in 1928, APN# 404-102-06, zoned R2, and listed in 1997 on the Santa Ana Registry of Historic Places; and B. The Property was acquired and constructed in 1928 and initially utilized as a fire station, then served as senior center, office and storage space by nonprofit groups, meeting space for neighborhood groups, and was vacated in June 2014; and C. Staff analyzed the feasibility of utilizing the Property for a potential community center and determined it infeasible due to lack of parking and the cost associated with the rehabilitation needed to bring it up to code; and D. Since 2017, the City's Parks Recreation and Community Services Agency has spent over $70,000 for security and maintenance of the Property, with ongoing costs estimated at approximately $18,649 per year ($9,000 for maintenance and $9,649 for the rental of security windows and doors); and E. There were 63 police calls for service between January 2018 and April 2019, within 50 feet of the Property, for trespassing and other disturbances; and Resolution No. 2020-XXX Page 1 of 3 55D-4 F. The sale proceeds and property tax generated may provide funding to enhance City services, and the future development of the Property would eliminate blight and promote neighborhood livability and sustainability. Section 2. The City Council hereby finds and declares that the Property is no longer necessary for the City's use and is therefore surplus land as defined in California Government Code section 54221, based on the true and correct written findings found in Section 1, incorporated herein by this reference. Section 3. The City Council hereby authorizes the City Manager to send written notices of availability the Property for sale, to negotiate the terms of a proposed sale of the Property with an interested public entity or, if none, another interested party, and to otherwise follow the procedures of the Surplus Land Act, California Government Code section 54220, et seq., as amended on January 1, 2020, as applicable to a proposed sale of the Property. Section 4. Any proposed agreement for the sale of the Property shall be subject to the approval of the City Council. Section 5. The sale of the Property as surplus is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15312 (Surplus Government Property Sales). However, if development was proposed on the Property by a subsequent buyer, then that development would be reviewed under CEQA. Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 2020. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: kL Ryan .Hodge Assistant City Attorney Resolution No. 2020-XXX Page 2 of 3 Miguel A. Pulido Mayor 55D-5 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers 1►[��:7X.y�►��Z.1iR.71I 11 Ri1T-m CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2020-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2020-XXX Page 3 of 3 55D-6 Location Map 625 South Cypress Avenue MINE INENI �..� ■ ��• ��.ANNE � .NE! � NEW ANNE ..I ON, EXHIBIT 2 55D-7