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CITY COUNCIL AGENDA REPORT
City of Anaheim
OFFICE OF ECONOMIC DEVELOPMENT
DATE: APRIL 12, 2022
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: DECLARING CERTAIN PROPERTIES LOCATED AT VARIOUS
LOCATIONS AS SURPLUS AND EXEMPT SURPLUS LAND IN
ACCORDANCE WITH THE SURPLUS LAND ACT AS
AMENDED
ATTACHMENT (Y/N): YES ITEM # 19
RECOMMENDATION:
That the City Council:
1. By Resolution, declare certain real properties to be “surplus” properties pursuant to California Government Code Section 54221(b)(1)2;
2. By Resolution, declare certain property to be “exempt surplus” properties pursuant to California Government Code Section 54221(b)(1)2;
3. By Motion, authorize the Director of the Economic Development Department, or his designee, to issue a Notice of Availability (“NOA”) in accordance with the Surplus Land Act (“SLA”); and
4. By Motion, authorize the Director of the Economic Development Department to review each Notice of Interest (“NOI”) received, if any, during the 60-day NOA period and then enter into negotiations with responsive bidder(s) for a period of 90 days, all in accordance with the SLA.
DISCUSSION:
Effective January 1, 2020, Assembly Bill (AB) 1486 amended the State Surplus Land Act (SLA) to require local agencies to formally declare publicly-owned property no longer used for the agency’s expressed purpose as “surplus land” or “exempt surplus land” before beginning the disposition process. Pursuant to AB 1486, properties identified either for sale or for future development listed on the Successor Agency’s Long Range Property Management Plan (the “LRPMP”) resulting from the dissolution of the Anaheim Redevelopment Agency are now determined to be surplus. However, LRPMP properties that were contractually obligated (i.e. Exclusive Right to Negotiate or a Disposition and Development Agreement) prior to December 31, 2020, and with the Surplus Land Act Declaration
April 12, 2022
disposition completed by December 31, 2022, are subject to SLA as it existed prior to the enactment of AB 1486. The City must also make an inventory of its surplus land available as a matter of public record and report this information to the California Department of Housing and Community Development (HCD) on an annual basis beginning April 1, 2021 concurrent with the City’s annual Housing Element report. “Surplus Land” is land that is no longer needed for a local agency’s use. Land is considered “exempt surplus” for a variety of reasons, with the following being most relevant with regard to the proposed list:
a. Land that is less than 5,000 square feet (sf); less than the City’s minimum residential lot size; or less than 10,000 sf with no access of record if sold to a contiguous owner;
b. Land that is transferred to a local, state, or federal agency; or c. Former street right of way or an easement conveyed to an adjacent owner.
Based on the criteria above, few of the properties in the LRPMP are considered surplus as noted on Attachment 1. In those instances, the City is not precluded from marketing the property for sale and development. The State law simply requires a public agency to declare it surplus prior to its disposition and to follow the statutory noticing and negotiation period with certain designated entities, including eligible housing sponsors identified by HCD.
Following the City Council’s declaration of the subject “surplus” properties, the City must issue a 60-day Notice of Availability (“NOA”) to solicit the interest of various public and private entities, including housing sponsors, for the development of affordable housing (and parks and open space, as applicable). The NOA is sent to housing sponsors that have notified HCD of their interest in development of low and moderate-income housing on surplus land. The housing sponsors must submit a complete and responsive Notice of Interest (“NOI”) in writing within the 60 day NOA period. The City will evaluate the NOIs and may negotiate with the entity(ies) that submit proper NOIs, including negotiation about the price and terms for the disposition and scope of development for the respective properties. In the event no agreement is reached between the City and the public or private entity(ies) after a good faith negotiation period of 90 days, the land may be disposed of without further regard to the SLA.
As to the properties declared “exempt surplus,” City staff will reach out to the adjacent property owners to determine their interest in receiving fee title to the City property.
ENVIRONMENTAL DETERMINATION:
The City Council finds and determines that this action results in no binding commitment by the City to authorize or advance the disposition of any of the Surplus Properties or Exempt Surplus Properties; will not result in a direct or indirect physical change in the environment; and does not constitute an “approval” of a “project” pursuant to CEQA Guidelines Sections 15004 and 15352.
Surplus Land Act Declaration
April 12, 2022
IMPACT ON BUDGET:
Sufficient funds for compliance with the Surplus Land Act are available in the Economic Development Department’s FY 2021/22 Long Range Property Management Plan budget.
Respectfully submitted,
Sergio M. Ramirez
Director
Attachments:
1. Resolution Declaring Surplus Properties
2. Resolution Declaring Exempt Surplus Properties
3. Attachment 1: List of Surplus and Exempt Surplus Properties