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Home My WebLink About75C - PH - RESO - 1232 S BRISTOL ST SALEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 16, 2015 RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing direct negotiation for the sale of City -owned property at 1232 South Bristol Street without the need for public auction or competitive bidding, as permitted by Section 2 -709 of the Santa Ana Municipal Code upon 2/3 vote of the City Council. Y During the course of the Bristol Street Improvement Project, the Public Works Agency has acquired numerous properties along the corridor, The subject properties at 1232 and 1244 South Bristol Street (APN 109. 421 -21 and 22) were acquired in 1996 as part of the St. Andrew Place to McFadden Avenue Phase (Exhibit 1). These two remnant parcels have been vacant for nearly twenty years and are not needed for public use or improvements, To facilitate their sale, the parcels have been merged into one parcel per Lot Merger 2015 -08 to activate its potential development and use. Recently, the City has been approached by Spyglass Investment Group to construct a dialysis center at this site. Under the Santa Ana Municipal Code (SAMC) Section 2 -706, surplus real property may be sold (after authorization by the Council) only to the highest bidder, subject to final confirmation by the Council and with notice of the sale given by newspaper publication. SAMC Section 2 -709, however, provides an exemption to this procedure and permits a sale on direct negotiations without the need for public auction or competitive bidding, upon 2/3 vote of the City Council after a duly noticed public hearing. Staff recommends direct negotiation with Spyglass Investment Group to ensure this state -of- the -art facility is developed in a timely manner and made available to serve the residents of Santa Ana. 75C -1 Public Hearing — Resolution to Authorize Negotiation for the Sale of City -owned Real Property at 1232 S. Bristol Street September 15, 2015 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts 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). Approval of this item also supports the City's efforts 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). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact to the General fund. Revenue from the sale of City -owned real property must be recognized as such by the Community Development Block Grant funds used for its acquisition. Upon completion of negotiations, staff will bring the transaction, including the revenues generated, for City Council authorization to recognize and receive the funds. APPROVED AS TO FUNDS AND ACCOUNTS: IVA .�; NT41"R,� S�_� ��4JLL_2 \��, qred Mousavipour Francisco Gutierrez �B y✓ Executive Director Executive Director "_0 Public Works Agency Finance & Management Services Agency 9 Sonia R. Carvalho City Attorney r� Kelly Reeffders Executive Director Community Development Agency FM /EWG /ML Exhibits: 1. Location Map 2. Resolution 75C -2 R *91:4,I• PARCEL MERGER BOUNDARY INDICATES PROPERTY LINE TO BE REMOVED SANTA ANA P� I AGENDA ,5 PUBLIC WORKS AGENCY EXHIBIT 1 RESOLUTION TO AUTHORIZE NEGOTIATION FOR THE SALE OF CITY -OWNED REAL PROPERTY AT 1232 S. BRISTOL STREET 75C -3 I 6 A PAGE 1 OF 1 PARCEL BOUNDARY 165.00' I I Di I LOT 21 175.00' I I APN:109- 421 -21 o ill I(Di I VACANT LOT LOT 22 ' ° i I ° r - - -- - -- j oj�I W ui N I Ni0i N I LOT 23 PROPERTY LINE TO BE REMOVED J °o I( 0 APN:109 -421 -22 I VACANT LOT I LOT 24 I I Iii I 48.00 117.00' I ° 165.00' -O - — - — - — - — - — - — ----------------------- ° I WILSHIRE AVENUE i i PARCEL MERGER BOUNDARY INDICATES PROPERTY LINE TO BE REMOVED SANTA ANA P� I AGENDA ,5 PUBLIC WORKS AGENCY EXHIBIT 1 RESOLUTION TO AUTHORIZE NEGOTIATION FOR THE SALE OF CITY -OWNED REAL PROPERTY AT 1232 S. BRISTOL STREET 75C -3 I 6 A PAGE 1 OF 1 75C -4 jmf 09/0312015 RESOLUTION NO. 2015 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING DIRECT NEGOTIATIONS FOR THE SALE OF CITY -OWNED REAL PROPERTY AT 1232 SOUTH BRISTOL STREET AND 1244 SOUTH BRISTOL STREET 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. In 1996, during the course of the Bristol Street Improvements Project, the City acquired the adjacent real property at 1232 South Bristol Street and 1244 South Bristol Street. B. These two parcels were vacant upon acquisition and remain vacant. The City has undertaken a lot line adjustment for the purpose of merging the two parcels into one to advance the development and use of the property as a single parcel. C. When the lot line adjustment is completed, the result will be a single parcel identified as 1232 South Bristol Street. D. These properties were never put to use by the City; instead, they were held for purposes of exchange or sale. The properties are not necessary for the City's use. E. The City finds that the development of the property as a state -of- the -art dialysis and kidney care center would serve the public interest by providing a much needed kidney care center for residents of the City of Santa Ana. F. Santa Ana Municipal Code section 2 -706 establishes the procedures for the sale of City -owned surplus real property. Under these procedures, following council authorization for sale, City -owned surplus real property shall be sold by competitive bidding to the highest bidder subject to final authorization of the City Council. Resolution No. 2015 -xxx Page 1 of 3 75C -5 jmf 09/0312015 G. As permitted by Santa Ana Municipal Code section 2 -709, the sale of City - owned real property may be exempted from this manner of sale upon 2/3 vote of the City Council after a duly noticed public hearing, whereby the sale may instead be made upon a basis of direct negotiations without the necessity for public auction or competitive bidding, when the authority to so negotiate has been granted by the City Council. H. On September 15, 2015, the City Council held a duly noticed public hearing after which a 2/3 majority of the City Council voted to exempt the sale of the real property at 1232 South Bristol Street and 1244 South Bristol Street from competitive bidding and authorize direct negotiations for its sale with the Spyglass Investment Group; an entity that intends to develop the site as a state -of -the art kidney care center. Section 2. The City Council of the City of Santa Ana hereby exempts the sale of the City -owned real property at 1232 South Bristol Street and 1244 South Bristol Street from the competitive bidding procedures in Santa Ana Municipal Code section 2- 706 and authorizes the City Manager or his designee to negotiate directly for its sale with the Spyglass Investment Group, in accordance with Santa Ana Municipal Code section 2 -709. Section 3. 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 15" day of September, 2015. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: ✓ _ e n M. Funk ssistant City Attorney Miguel A. Pulido Mayor 75C -6 Resolution No, 2015 -xxx Page 2 of 3 AYES Councilmembers NOES: Councilmembers ABSTAIN NOT PRESENT: Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council do hereb y Resolution No 2015 -XXX to be the original resolution City of Santa Ana on September 15, 2015. Date Imf 09108/2015 attest to and certify the attached adopted by the City Council of the Clerk of the Council City of Santa Ana 75C -7 Resolution No. 2015 -xxx Page 3 of 3 75C -8