AGENDA REPORT
Meeting Date: January 24, 2023
Item Number: £-6
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Management Analyst
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
DECLARING THAT CERTAIN REAL PROPERTY OWNED BY THE
CITY MEETS THE DEFINITION OF CALIFORNIA GOVERNMENT
CODE 54221(b), AND FINDING THAT SUCH DECLARATION IS
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT
Attachment: 1. Resolution
RECOMMENDATION
Staff recommends City Council approve a Resolution of the Council of the City of Beverly Hills Declaring that Certain Real Property Owned by the City Meets the Definition of California Government Code 54221(b), and Finding that Such Declaration is Exempt from the California Environmental Quality Act ("Resolution").
INTRODUCTION
California Government Code Sections 54220-54234 require the City to follow certain procedures prior to engaging in negotiations to sell land or lease land for a period greater than five years, even in circumstances where the City maintains long-term fee simple ownership of the property. The attached Resolution declares City-owned properties at 330-346 Foothill Rd. are Surplus Land, as defined by California Government Code 54221(b), a step necessary for the City to consider proposals that do not meet the definition of Exempt Surplus Land, as defined by California Government Code 54221(f).
The City's intention is to maintain long-term fee simple ownership of the properties and to obtain full fair market value for use of the properties.
Meeting Date; January 24, 2023
DISCUSSION
California Government Code Sections 54220-54234, known as the Surplus Land Act, (the "SLA") govern the sale or lease of land owned by various local agencies, including cities, and prescribe certain procedures that must be followed before selling, or leasing land.
The City-owned properties located at 330-346 Foothill Rd. are located in what is often referred to as the Entertainment Business District, The properties consist of four separate parcels and contain a combined total of approximately five acres of land. The properties include, in-part, a vacant two-story office building of approximately 62,000 square feet of gross building area with one level of subterranean parking and an adjacent surface parking lot used for storage and as a tow yard. Other uses include the Dog Park, a laydown yard, and vehicle storage. The building and adjacent parking were previously leased to a private entity. The aerial diagram below outlines the subject properties.
Aerial Diagram of the Properties
Alden Dr.
P
I
346 FoothI
1 342 Foothill
338 Foothill
330 Footh
Meeting Date: January 24,2023
The City has a long history of working with partners for the development or redevelopment of City property. Examples include ground leases with The Wallis Annenberg Center for the Performing Arts and The Academy of Motion Picture Arts and Sciences, which operates the Margaret Herrick Library, and joint developments with The Montage (now The Maybourne) and Menorah Housing Foundation.
Before the City may consider proposals that do not meet the definition of Exempt Surplus Land, the SLA requires that the City first declare the property to be "surplus land" and then send a notice of availability to entities designated in the SLA. The entities have a period of 60 days to respond. If the City receives a notice of interest from a designated entity, the City must negotiate in good faith for a period of not less than 90 days. The SLA does not prevent a local agency from obtaining fair market value for the disposition of surplus land.
The City may reject proposals from designated entities when the parties cannot agree on sales price or lease terms or when the interested entity is not responsive to the agency's conditions or restrictions in the notice of availability, provided such conditions or restrictions have been reviewed, in advance, pursuant to SLA guidelines by the California Department of Housing and Community Development. The City's notice of availability, included in the draft resolution, states that the City intends to lease the properties.
Because the City may not negotiate or otherwise consider proposals that do not meet the definition of Exempt Surplus Land and the City has not sent a notice of availability to the designated entities, details as to the scope and extent of a potential transaction are not yet available. Staff will take the necessary steps to comply with processes set forth in the SLA and provide City Council with updates. The terms of any potential transaction will be subject to further review and discussion.
By declaring these properties "surplus", the City is required to record a covenant that will provide that if the properties are ever developed for a residential use, at least 10% of the units must be affordable.
California Environmental Qualitv Act Review
The project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The project appears to qualify for a categorical exemption pursuant to Section 15061(b)(3) oifthe Guidelines (common sense exemption) as it can be "seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment". There are no plans for changes of use of the properties at this time, and therefore it can be seen with certainty that the declaration results in no significant effects on the environment. If in the future there are plans to undertake a project involving the properties, that future project will be subject to CEQA review and will be reviewed as appropriate.
FISCAL IMPACT
There is no fiscal impact associated with the declaration. The fiscal impact of any proposals received for use of the City property will be evaluated and reported.
Ryan Gohlich
Assistant City Manager
Approved By
Attachment 1
1 B0785-0001\2769849v2.doc
RESOLUTION NO. 23-RWHEREAS, the City of Beverly Hills (“City”) is the owner in fee simple of certain real properties described in Exhibit “A,” attached hereto and made a part of hereof (“Properties”); and WHEREAS, California Government Code Sections 54220-54234 require the City to follow certain procedures prior to engaging in negotiations to sell land or lease land for a period greater than five years, even in circumstances where the City were to maintain long-term fee simple ownership of the property. The State law is called the Surplus Land Act and it requires that the land must be declared either surplus land or exempt surplus land and offered to certain entities, such as affordable housing developers, open space agencies, and school districts, before engaging with other entities; and
WHEREAS, in order to fulfill this state law mandate, while maintaining long-term fee simple ownership of all City land and receiving full fair market value for the land, the City must declare the Properties “surplus land.”
NOW, THEREFORE, THE CITY COUNCIL HEREBY RESOLVES AS FOLLOWS:
Section1. The above recitals are true and correct and are a substantive part of this Resolution.
DocuSign Envelope ID: 8EB83933-F9DF-4D77-8F1A-B44A9F2242A4
RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
DECLARING THAT CERTAIN REAL PROPERTY OWNED BY THE CITY
MEETS THE DEFINITION OF CALIFORNIA GOVERNMENT CODE
54221(b), AND FINDING THAT SUCH DECLARATION IS EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
DocuSign Envelope ID: 8EB83933-F9DF-4D77-8F1A-B44A9F2242A4 Section 2. The City Council hereby declares that the Properties are "surplus land" and not necessary for the City uses, within in the meaning of the Act. The properties consist of four separate parcels and contain a combined total of approximately five acres of land. The properties include, in part, a vacant two-story office building of approximately 62,000 square feet of gross building area with one level of subterranean parking and an adjacent surface parking lot used for storage and as a tow yard. Other uses include the Dog Park, a laydown yard, and vehicle storage.
Much of the property was formerly leased to a private entity and has been vacant for many years and the low-intensity development of the adjacent properties, namely green space or storage area, present a unique opportunity for the City to assemble the properties for a project.
Section 3. The City's Real Property Development Manager is hereby directed to send a notice of availability, substantially in the form attached hereto as Exhibit "B" and made a part of hereof, to the entities designated in Government Code Section 54222 ("Designated Entities") by electronic mail or by certified mail.
Section 4. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA").
Section 15061(b)(3) of the CEQA Guidelines (common sense exemption) applies, as it can be "seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment".
Section 5. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines Section 15062.
Section 6. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this B0785-0001\2769849v2.doc
DocuSign Envelope ID: 8EB83933-F9DF-4D77-8F1A-B44A9F2242A4 Resolution, and any such actions previously taken are hereby ratified and confirmed. Such actions include negotiating in good faith in accordance with the requirements of the Act with any of the Designated Entities that submit a written notice of interest to purchase or lease the Properties in compliance with the Act.
Section 7. The City Clerk shall certify to the adoption of this resolution and shall cause this resolution and her certification to be entered in the Book of Resolutions of the City.
Adopted:
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
LILIBOSSE,
Mayor of the City of Beverly Hills
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
ImxA/ux.
LAURENCE S. WffiNER
City Attorney
NANCY HUNT-COFFEY
City Manager
RYANGOHLICH
Assistant City Manager
B0785-0001\2769849v2.doc
DocuSign Envelope ID: 8EB83933-F9DF-4D77-8F1A-B44A9F2242A4 Exhibit «A"
Description of the Properties
Real property in the City of Beverly Hills, County of Los Angeles, State of California, described as 330-346 Foothill Road, Beverly Hills, California 90210, as further identified by the following Los Angeles County Assessor Identification Numbers (AIN's): 4342-009-903, 4342-009-904, 4342-009-902, and 4342-009-906.
B0785-0001\2769849v2.doc
DocuSign Envelope ID: 8EB83933-F9DF-4D77-8F1A-B44A9F2242A4 Exhibit "B"
Form of Notice of Availability
DATE
To All Interested Parties:
RE: Notice of Availability/Offer to Lease Surplus Property As required by Government Code Section 54220 of the State of California, the City of Beverly Hills is providing notification that the City intends to lease the surplus property listed in the accompanying table.
In accordance with Government Code Section 54222, you have sixty (60) days from the date this offer was sent via certified mail or electronic mail to notify the City of your interest in leasing the property. However, this offer shall not obligate the City to lease the property to you. Instead, the City would enter into at least ninety (90) days of negotiations with you pursuant to Government Code Section 54223. If no agreement is reached on lease terms, the City may market the property to the general public.
As required by Government Code Section 54227, if the City receives more than one letter of interest during this 60 day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.
In the event your agency or company is interested in leasing the property, you must notify the City in writing within sixty (60) days of the date this notice was sent via certified mail or electronic mail. Notice of your interest in acquiring the property shall be delivered to Logan Phillippo, Real Property Development Manager, at the following address:
455 N. Rexford Dr.
Beverly Hills, CA 90210
Attn: Logan Phillippo
You may direct questions by email to [email protected] or by phone to (310) 285-1014.
Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Section 54220-54234).
B0785-0001\2769849v2.doc
DocuSign*
Certifiqate Of Completion
Envelope Id: 8EB83933F9DF4D778F1AB44A9F2242A4
Subject: Complete with DocuSign: 2023.01.18 • SLA Declaration Resolution.DOCX Source Envelope:
Document Pages: 5 Signatures: 2
Certificate Pages: 2 Initials: 0
AutoNav: Enabled
Envelopeld Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
Record Tracking
Status: Original
1/19/2023 9:22:13 AM
Signer Events
Laurence S. Wiener
[email protected]
Security Level: Email, Account Authentication
(None)
Holder: Logan Phiilippo
[email protected]
Signature
S. (^UAjtr
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.233.201
Status: Sent
Envelope Originator
Logan Phiilippo
455 N. Rexford Drive
Beverly Hills. OA 90210
[email protected]
IP Address: 76.168.110.145
Location: DocuSign
Timestamp
Sent: 1/19/2023 9:30:09 AM
Resent: 1/19/2023 12:56:09 PM
Viewed: 1/19/2023 1:00:48 PM
Signed: 1/19/2023 1:03:58 PM
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Ryan Gohlich
rgohlich@beverlyhills .org
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Sent: 1/19/2023 1:04:01 PM
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Logan Phiilippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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Nancy Hunt-Coffey
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Lili Bosse
[email protected]
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Sent: 1/19/2023 2:05:23 PM
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Huma Ahmed
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Adrianne Rosas
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Dorina Mohan
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1/19/2023 9:30:09 AM
1/19/2023 12:56:08 PM
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