AGENDA
ITEM
26 AGENDA
CALEXICO California ITEM
AND MEXICO MEET
26 CITY COUNCIL
AGENDA STAFF REPORT
DATE: October 4, 2023
PREPARED BY: Francisco Barba, Contract Planner
REVIEWED BY: Jeorge Galvan, AICP, Principal Planner
SUBJECT: Overview of the Requested Vacation of a Portion of West 6th Street ========
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Recommendation:
The purpose of this item is to present potential options for the request to vacate 6th Street, submitted by the Applicant, to the City Council so that Council may provide directions to staff on how to proceed with the request. It is important to reiterate that this staff report is not for approving or denying the requested street vacation and is only to inform the City Council of potential actions and for them to provide further instructions for staff.
Upon reviewing all relevant information and hearing all comments for and against the project, city staff recommends that the City Council consider the following action:
1. Provide directions to city staff for which of the following options to proceed with for the requested vacation of a portion of West 6th Street requested by Marco A.
Madrigal:
a. Option 1 - Street Vacation
i. Option 1A - General Vacation
ii. Option 1B - Summary Vacation
b. Option 2 - Sale or Lease (5 years or more)
c. Option 3 - Lease (4 years or less)
Background:
On July 26, 2022, Marco A. Madrigal, Applicant, submitted a uniform application to the City of Calexico Development Services Department for the requested vacation of an extension of West 6th Street approximately 120 feet west of the intersection at Emerson Avenue and east of the railroad tracks (Refer to Attachment A). A vacation is when a public right-of-way or a public service easement is "abandoned" by the City. Once the subject right-of-way or easement is abandoned, the public use of the land or easement area is relinquished without restrictions to the property owner. The use of the abandoned area usually reverts to the adjacent property owners).
Discussion and Analysis:
In late 2018, the Applicant purchased four properties on the north and south sides of West 6th Street depicted in Attachment A and submitted a letter requesting the requested vacation in early 2019 for the development of a private parking lot for Mr. Madrigals business. Historical aerial photographs show this portion of 6 street as being a dirt road as early as 1985 and as late as 1959. 6th Street does not continue west past the railroad tracks. Through numerous communications with the City, the Applicant was issued an encroachment permit in 2021 and a grading permit in 2022 to install a new fence across the east boundary of the portion 6th Street requested for vacation and to pave the remaining portion of 6th Street up to Emerson Avenue (Refer to Attachment B). This encroachment permit to install a fence and close off West 6th Street should not have been issued as 6th Street is still a public roadway even if it was not paved.
In an effort to move the Applicant's request for abandonment/vacation, the requested street vacation was presented to the Planning Commission during a special meeting held on May 30, 2023, where they found the requested street vacation to be in conformity with the City of Calexico General Plan.
It is important to note that Sections 8322 - 8323 of the California Streets and Highways Code prescribe specific procedures for the abandonment or vacation of a street or right- of-way. State law requires that notices of public hearing must be posted in a local newspaper and on the street requested for vacation for two weeks prior to the scheduled hearing. There are no records to indicate that the proper noticing procedures were carried out, pursuant to Sections 8322 - 8323 of the California Streets and Highways Code, prior to the May 30th meeting.
Potential Actions:
Option 1 - Vacation. According to Part 3 under Division 9 of the California Streets and Highway Code, there are two procedures for vacating a roadway. The first is the general vacation process and the second is a summary vacation which are both summarized below:
Option 1A - General Vacation. Upon receiving a petition or request from an interested party, the following steps must be completed:
a. Per Section 8322 of the California States and Highway Code, a notice of public hearing on the requested vacation shall be published for at least two successive weeks prior to the hearing in a daily, semiweekly, or weekly newspaper.
b. Per Section 8323 of the California Streets and Highway Code, at least two weeks before the day set for the hearing, the legislative body shall post conspicuously notices of vacation along the line of the street. At least 3 notices must be posted and shall not be posted more than 300 feet apart. c. If the City Council finds that the street described in the notice of public hearing is unnecessary for present or prospective public use, the City Council may adopt a resolution vacating the street. The resolution may provide conditions set by the City Council and the recording of the resolution may be withheld until all conditions have been met.
d. Upon addressing all conditions set by the City Council, a certified copy of the resolution of vacation, attested by the city clerk under seal, shall be recorded at the County of Imperial Recorder's Office. Upon such recordation, the vacation is complete.
Option 1B - Summary Vacation. While a shorter process than the general vacation, the following steps must still be taken:
e. Per Sections 8330 - 8334.6 of the California Streets and Highway Code, a summary vacation is only possible under any of the following conditions:
1. If the street has been superseded by relocation.
2. If the street has excess right-of-way not required for street purposes.
3. If the street has been impassable for vehicular travel for a period of five consecutive years and no public money was expended for maintenance of the street during that time.
4. A summary vacation cannot take place if it would cut off all access of a property to the street or if it terminates a "public service easement" as defined in Streets and Highways Code Section 8306 (unless the requirements of Streets and Highways Code Section 8333 are met).
5. If a portion of a street lies within property under one ownership and does not continue through that property or touch other property.
It is important to reiterate that only one of the following items needs to be determined in order to proceed with a summary vacation. The subject roadway is compliant with condition number 5 above as the Applicant is the owner of all four surrounding properties. Furthermore, an argument can be made that the four parcels will be merged into one after the vacations to meet condition number 4 above.
Per condition number 3 above, the subject roadway has been an undeveloped dirt road as early as 1985 and as late as 1959. While this shows that no public money was spent on the roadway within the last five years, the roadway was not impassable to vehicular traffic given that there was access to the surrounding properties. Conditions number 1 and 2 are not compatible with the project.
f. Per Section 8335 of the California Streets and Highway Code, the City Council may vacate a street by adopting a resolution which states all of the following:
1. That a vacation is made under Chapter 4 in Part 3, Division 9 of the California Streets and Highway Code.
2. The name or other designation of the street and a precise description of the portion vacated. The description of the portion vacated may be by a precise map which is recorded or to which reference is made in the resolution on which is permanently maintained by the public entity.
3. The facts under which the summary vacation is made. If the vacation is made pursuant to Section 8332, the statement shall include the date of the agreement. The resolution is prima facie evidence of the facts stated.
4. That from and after the date the resolution is recorded, the street vacated no longer constitutes a street.
5. If the resolution of vacation applies to a public service easement vacated by a public officer or employee delegated authority pursuant to subdivision (a), a certification that all entities having any right, title, or interest in the public service easement being vacated have been notified of this action.
g. Upon adoption by City Council, a certified copy of the resolution of vacation, attested by the city clerk under seal, shall be recorded at the County of Imperial Recorders Office. Upon such recordation, the vacation is complete.
Option 2 - Sale or Lease (5 Years or More). Surface and sub-surface rights for road rights-of-way belong to the City which allow the City the option to sell or lease this portion of 6th Street as a means of generating revenue to the City. In order to do so, the City is required to declare the property as being surplus. As such, the sale or lease would be subject to the Surplus Land Act (SLA) which was signed into law by Governor Newsom via Assembly Bill 1486 (AB 1486). The aim of AB 1486 is to increase the availability of real property in California for affordable housing development by requiring the prioritization of affordable housing when selling or leasing public lands no longer necessary for agency use. Beginning January 1, 2021, local agencies are required to send, and the State Department of Housing and Community Development (HCD) is required to review negotiation summaries for each surplus land and exempt surplus land transaction in the state.
While the sale or lease of the subject property will provide monetary funds to the City of Calexico, any sale or lease for a period of five years or more will trigger SLA. Per Assembly Bill 1486, as of January 1, 2021, local agencies are required to send, and the State Department of Housing and Community Development (HCD) is required to review, negotiation summaries for each surplus land and exempt surplus land transaction in the state.
"Surplus Land" is defined as land owned by any local agency that is determined to be no longer necessary for the agency's use, except property being held by the agency for the purpose of exchange. "Exempt Surplus Land" is defined as land that is less than 5,000 square feet in area, less than the applicable minimum legal residential building lot size or has no record access and is less than 10,000 square feet in area, and that is not contiguous to land owned by a state or local agency and used for park, recreational, open- space, or affordable housing. It is important to note that land that is a former street is classified as exempt surplus land only if the land is conveyed to an owner of an adjacent property. Per SLA, exempt surplus land only requires a declaration via resolution and a determination with written findings sent to HCD at least 30 days prior to disposition.
The subject street is approximately 21,712 square feet which disqualifies it from being classified as exempt surplus land should the City choose to proceed with a sale or lease of 5 years or more. It is also important to note that the SLA process may take as little as 3 to 4 months or as long as 6 or more months, and must go through the following process:
1. City Council declares subject property as surplus land via resolution.
2. A Notice of Availability (NOA) is sent out to developers who have notified HCD of their interest in developing affordable housing on surplus local public land, any local public entity within the jurisdiction where the surplus land is located, and the Department of Housing and Community Development (HCD) for a period of 60 days.
3. If a local agency receives a notice of interest from an interested party within the first 60 days, the disposing agency and the interested party shall enter a 90-day good faith negotiation beginning on the first day after the end of the 60-day period.
If no notice of interest is received, then the 90-day negotiation period may be skipped
4. Prior to agreeing to terms to dispose of surplus property, local agencies must send a description of notices of availability sent, and negotiations conducted, in addition to a copy of any restrictions to be recorded against the property, to HCD for a final review.
5. Upon receiving a response from HCD and addressing all comments, local entities may proceed with disposing of the property.
An on-site appraisal was not conducted for the subject property, but a cursory review of the current price for industrial land in Calexico was done and estimated that the cost per acre for the sale of industrial land in the City is estimated to be around $250,000 per acre.
Since the subject roadway is approximately half an acre, the potential cost would be $125,000. It is important to note that the estimate is from a cursory review and the actual cost is unknown until an on-site appraisal is conducted. The estimate is subject to change upon an on-site appraisal.
Option 3 - Lease (4 Years or Less). Per Section 102(h)(1) of the SLA Guidelines prepared by HCD, a lease of land on which no development or demolition will occur, or which has a term of less than 5 years (including any extensions, amendments, or options) is not subject to SLA. Any lease that does not meet the previously mentioned requirements is subject to the SLA process.
While an on-site appraisal was not conducted for the subject property, a cursory review of the current lease price for industrial developments was conducted. Upon researching the leasing prices of eight (8) different industrial properties within the City, it was estimated that the average annual lease for industrial land in Calexico is approximately $11.24 per square foot. Note that the properties researched have immediate access to a major roadway and are for existing warehouse developments. There were no vacant industrial parcels available for lease during the cursory review. Given that the roadway requested for abandonment/vacation does not have any of the previously mentioned factors, the potential lease cost may be significantly less than the estimated yearly lease of $11.24 per square foot. The previously stated cost is from a cursory review and the actual lease cost is unknown until an on-site appraisal is conducted. The estimate is subject to change upon an on-site appraisal.
Environmental
CEQA (California Environmental Quality Act) is a statute that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. A public agency must comply with CEQA when a project "receives some discretionary approval from a government agency which may cause either a direct physical change in the environment or a reasonably foreseeable indirect change in the environment." Compliance can be met by determining whether a project is exempt from CEQA or preparing an environmental analysis, typically a negative declaration (ND), mitigated negative declaration (MND) or environmental impact report (EIR).
The requested street abandonment/vacation is exempt from CEQA review via Section 15061(b) (3) of the CEQA Guidelines for Implementation which states the following:
"The activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." (California Code of Regulations).
As a street vacation, it can be seen with certainty that there is no possibility that the requested text amendment may result in a significant effect on the environment. The Applicant's proposal to develop the area as a private parking lot is also exempt on the same basis.
Fiscal Impact:
If the subject portion of West 6th Street were to be abandoned, the costs for staff time, public hearings, and public noticing shall be borne by the Applicant. Upon abandoning the subject roadway, the City of Calexico will no longer be responsible for the maintenance cost of said portion to be abandoned/vacated.
Coordinated With:
City Manager's Office.
Attachments)
Attachment A - Project Location Map
Attachment B - Site Photos
Attachment A - Project Location Map
(CT
7TH STREET
058-411-0097
CESAR CHAVEZ BLVD.
6TH STREET
EMERSON AVENUE
058-431-001
058-431-002
Southern California Railroad
5TH STREET
LEGEND
APPLICANTS PROPERTY ZZZ PORTION PROPOSED FOR VACATION
The Holt Group, Inc. - + CITY OF CALEXICO VICINITY MAP
ENGINEERING - PLANNING • SURVEYING
PROJECT No. 176.037
1601 N. Imperial Ave. El Centro, California 92243 (760)337-3883
NOT TO SCALE
DATE: 9/20/2023
Attachment B - Site Photos
PHOTO 1: WEST SIXTH ST LOOKING TOWARD MARCO PARKING
PHOTO 2: WEST SIXTH ST AND EMERSON AVE INTERSECTION