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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: AUGUST 15, 2023
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: ADOPT A RESOLUTION DECLARING CERTAIN PROPERTY
LOCATED AT THE SOUTHEAST CORNER OF ANAHEIM AND
BALL ROAD (082-46-23, -24, -25, -31, -34, AND -35) EXEMPT
SURPLUS LAND IN ACCORDANCE WITH THE SURPLUS
LAND ACT AS AMENDED BY ASSEMBLY BILL 1486
ATTACHMENT (Y/N): YES ITEM # 21
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council:
1. By Resolution, declare the real property located at the southeast corner of Anaheim Boulevard and Ball Road (082-46-23, -24, -25, -31, -34, AND -35) as exempt surplus land pursuant to the Surplus Land Act, Government Code Section 54220, et seq., as amended by Assembly Bill 1486 (SLA);
2. By Motion, authorize the Director of Economic Development to issue a Request for Proposals (RFP) and review responses for a mixed-use development project, with a minimum 25% affordable housing component.
BACKGROUND:
The Successor Agency owns approximately 8.3 acres at the southeast corner of Anaheim Boulevard and Ball Road. The former Anaheim Redevelopment Agency commenced the acquisition and assemblage of the subject site in 2001. Between 2001 and 2008, six separate parcels were acquired for assemblage of a larger site for redevelopment. The parcels are contiguous and together provide frontage along Anaheim Boulevard, Ball Road, and Claudina Street.
Upon the dissolution of the Anaheim Redevelopment Agency in 2012, efforts for continued site acquisition ceased and the site was identified in the Long-Range Property Management Plan as property retained by the City for development consistent with the former “Commercial Industrial Redevelopment Plan”. The objective of the Successor Agency of the former Redevelopment Agency for the Agency Property, was to maximize the City’s Property Tax, Sales Tax or Transient Occupancy Tax with the redevelopment of the property.
Adopt a Resolution Declaring Certain Property Located at the Southeast Corner of Anaheim and Ball Road Exempt Surplus Land in Accordance with the Surplus Land Act as Amended by Assembly Bill 1486 August 15, 2023
On August 27, 2019, the City Council approved an Exclusive Negotiation Agreement with Greenlaw Development LLC (Greenlaw) to negotiate the development of a mixed- use project. On November 10th, 2020, the City Council approved an Amended and Restated Exclusive Negotiation Agreement with the Developer. Negotiations continued between the City and Greenlaw. On December 7, 2021, the City Council approved a Second Amended and Restated Exclusive Negotiation Agreement with Developer, due to delays that resulted from the COVID-19 pandemic.
On November 1, 2022, the City Council approved a Disposition and Development Agreement (DDA) with Greenlaw. The DDA required a closing date of December 30, 2022. Greenlaw was not able to close escrow due to site environmental considerations.
Since a property disposition was not effectuated prior to December 31, 2022, disposition of the property is now subject to the Surplus Land Act (SLA).
DISCUSSION:
On October 9, 2019, Governor Newsom signed Assembly Bill 1486 (AB 1486), which significantly amended the SLA and became effective on January 1, 2020. Among material changes to the SLA, AB 1486: (a) expanded definition of “local agency”, (b) amended and/or added definition, including “surplus land” and “exempt surplus land”, (c) requires property owned by a local agency to be declared either “surplus land” or “exempt surplus land” before the local agency may take any action to sell or lease the property, (d) requires an annual inventory of surplus land submitted to the State of California, Department of Housing and Community Development (“State HCD”), and (e) adds new limitations to the to the term “agency’s use” to exclude “commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development,” or “property disposed of for the sole purpose of investment or generation or revenue.”
Government Code Section 54221(f)(1)(F)(ii) allows a local agency to declare a property “exempt surplus land” if (a) the property is put out to an open competitive bid process in which all entities identified in subdivision (a) of Section 54222 are invited to participate; and (b) the will be invited to participate in the competitive bid process, for the following purpose: a mixed-use development on a site that is more than one acre in size, that will include at least 300 housing units, that restricts at least 25% of the units to lower income households as defined in California Health and Safety Code (H&SC) Section 50079.5, with an affordable sales price or an affordable rent, as defined in H&SC Sections 50052.5 and 50053, for a minimum of 45 years for ownership housing and 55 years for rental housing.
Local agencies are prohibited from entering into negotiations for the disposition of land prior to compliance with certain procedural requirements, including: (i) declaration of land exempt surplus, (ii) undertaking a competitive bidding process, such as a Request for Proposals (“RFP”), to solicit interest of housing sponsors for the development of affordable housing and various public and private entities.
Adopt a Resolution Declaring Certain Property Located at the Southeast Corner of Anaheim and Ball Road Exempt Surplus Land in Accordance with the Surplus Land Act as Amended by Assembly Bill 1486 August 15, 2023
Since the Site is intended to be used for a development that complies with the requirements imposed by Government Code Section 54221(f)(1)(F)(ii), that is, inclusive of an affordable housing development component, staff is recommending that the City declare the Site exempt surplus land. If approved, staff would proceed with releasing an RFP in September 2023 to housing sponsors that have notified State HCD on their interest in development of low- and moderate-income housing and local public and private entities.
Based on the site’s Mixed-Use Medium zoning, the density of 27 units per acre will result in a unit count of 224 units. Under the requirements of the state density bonus (Govt. Code Section 65915 (q)), all calculations must be rounded up to the next whole number, resulting in 225 allowable units. Using base zoning of 225 units, it will be necessary to provide 54 low income units to achieve a 50% density bonus. The allowable number of units with a 50% density bonus is 337.5, which must be rounded up to 338 units. To fulfill the SLA Exemption (Govt. Code Section 54221 (f) (1) (F) (iii)), at least 25% of the total number of units in the project must be allocated to low-income households. A 338-unit project would result in a requirement for 84.5 units, which is rounded to 85 low-income rental units. The balance of the units, 253 units will be market rate for sale units.
The RFP will clearly outline the requirements of a mixed-use development as well as other development standards essential to the delivery of a quality finished product.
Since the site will also include an affordable development, the Housing Authority is providing guidance on potential assistance they can provide to ensure that component of the development is financially viable.
Following a standard 60-day submittal period for the RFP, City staff will comprise a multidisciplinary team comprised of staff and consultants to evaluate the proposals and make a selection for a recommendation to City Council for an Exclusive Negotiation Agreement (ENA).
The RFP process has historically allowed for a robust, competitive process that produces high-quality developments. Evaluation factors will include sales price, financial capacity, experience, architectural and site design, feasibility, and caliber of the overall proposed project. The RFP will be commissioned in collaboration with the City’s Housing and Community Development Department, as the RFP scope will require at least 25% of the units to be affordable. The RFP will require that the units be a mixture of for-sale and rental units, with the affordable units to be provided in the rental component of the project.
The potential mixed-use development for the site is anticipated to be consistent with other infill developments on Anaheim Boulevard. Notable projects include The Boulevard by John Laing Homes, The Domain by Brookfield Residential, the Alexan at CTR City by Trammell Crow Residential, the Promenade by CIM Group, 100 West by Toll Brothers, and Miraflores Community under construction by National CORE. The residential component of the proposed mixed-use development will support area business and meet the demand for housing. The affordable component of the Adopt a Resolution Declaring Certain Property Located at the Southeast Corner of Anaheim and Ball Road Exempt Surplus Land in Accordance with the Surplus Land Act as Amended by Assembly Bill 1486 August 15, 2023
development, will meet the much-needed demand for affordable housing in a strategic area of the City near several business districts including the Platinum Triangle, Center City, and the Anaheim Resort
IMPACT ON BUDGET:
There is no impact to the Department’s Budget
Respectfully Submitted, Concurred by,
Sergio M. Ramirez Grace Ruiz-Stepter
Director of Economic Development Director of Housing & Community Development
Attachments:
1. Resolution
2. Site Map