AGENDA
ITEM
15 AGENDA
ITEM
CALEXICO California
MEXICO MEET
15 CITY COUNCIL
AGENDA STAFF REPORT
DATE: November 1, 2023
TO: City Council
APPROVED BY: Esperanza Colo warren, City Manager Cale Wow PREPARED BY: Francisco Barba, Contract Planner, the Holt Group, Inc.
REVIEWED BY: Jeorge Galvan, AICP, Contract Planner, the Holt Group, Inc.
SUBJECT: Adopt Resolution 23-_ _ Declaring a 2.32-acre Property located at 352 First Street (APN 058-535-001) as Surplus Land and Authorize the Initiation of the Notification Process as Prescribed by the Surplus Land Act Recommendation:
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. Approve Resolution 23- declaring a 2.32-acre Property located at 352 First Street (APN 058-535-001) as surplus land and authorize the initiation of the notification process as prescribed by the Surplus Land Act.
Background:
In 2019, Governor Newsom signed AB 1486 (Ting, 2019) into law, which aims 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. "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.
The City of Calexico owns and wishes to sell or lease a 2.32-acre (101,188.77 sq. ft) property located at 352 First Street (APN 058-535-001). Per the State of California Surplus Land Act (SLA) (Government Code §54220 et seq.), the City is required to make the land available for affordable housing before selling or leasing the land for another purpose.
The purpose of this item is to provide an analysis of the SLA to the City Council where upon reviewing all relevant information and hearing all comments for and against, will vote whether to reject or approve the declaration of the subject property as surplus land, and initiate the notification process as prescribed by SLA.
Discussion and Analysis:
The subject property is a 2.32-acre (101,188.77 sq. ft.) parcel located at 352 First Street (APN 058- 535-001) at the intersection of 1st Street and Heber Avenue (APN 058-535-001). The site is situated within a Commercial Specialty Zone which only allows residential, and apartment uses as mixed- use on the first and second floors of downtown commercial buildings. The subject property is subject to SLA and will need approval from HCD prior to disposing of or leasing, for a period of 5 years or more, the subject property.
Process for Declaring Surplus Property:
Declaring Surplus Land - To begin the SLA process, the City Council of the City of Calexico must first declare the subject property as surplus land via resolution. As previously mentioned, the subject property does not qualify as exempt surplus land as it does not meet any of the exemptions listed on Section 103 of the SLA Guidelines prepared by HCD. Therefore, the subject property must be declared as surplus land.
Notice of Availability (NOA) - After declaring property as surplus land, local agencies must distribute a NOA for 60 days 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). According to the list of interested developers found on HCD's website, there are fourteen (14) developers interested in surplus land located in the Imperial County. The fourteen (14) developers have been listed below.
1. A Community of Friends - Based in the City of Los Angeles California, A Community of Friends develops affordable housing projects to help combat homelessness and provide permanent supportive housing for people with mental illness. The organization has yet to develop a project in the Imperial County but currently operates 50+ affordable housing projects in both Los Angeles County and Orange County.
2. Coachella Valley Housing Coalition - Based in the City of Indio, Coachella Valley Housing Coalition provides multiple housing programs across the Imperial County and Riverside County to help low-income individuals and families.
3. Decro Corporation - Based in Culver City California, Decro Corporation constructs and maintains affordable housing, mixed use developments, and service low and very low income, at risk, and special needs individuals, families, and seniors. Most of their developments are in Florida and Southern California. No projects have been completed in the Imperial County.
4. Infill Development Company - Based in the City El Cajon, Infill Development Company is a homebuilding company focusing on infill development and entry level housing. The company has yet to develop a project in the Imperial County.
5. KPS Investments - Based in the City of El Centro, KPS Investments is a real estate acquisition holding company. The organization currently develops single family homes throughout the Imperial County.
6. New Pointe Communities - Based in the City of San Diego, New Pointe Communities is a real estate development and building firm. The organization focuses its projects in the San Diego area and has yet to develop any properties in the Imperial County.
7. Workforce Homebuilders LLC - Based in the City of Riverside, Workforce Homebuilders LLC mainly develops homes for families and seniors. The organization has yet to develop a project in the Imperial County.
8. Meritage Homes - Based in the City Irvine, Meritage Homes is a nationally recognized leader in the homebuilding industry. The company has delivered more than 170,000 homes in the past 35+ years and has yet to develop a project in the Imperial County.
9. Presidio West Investments, LLC - Based in the City of Paramount, CA. No further information is known about the company.
10. Community Housing Opportunities Corporation (CHOC) - Based in the City of Joy Silver, CHOC improves and strengthens communities by providing quality housing that includes comprehensive services for individuals, families, and seniors. As a Community Housing Development Organization, CHOC serves primarily very low-, low-, and moderate-income families and individuals. The company has yet to develop a project in the Imperial County.
11. DignityMoves_- Based in the City of San Francisco, DignityMoves works to end unsheltered homelessness in communities by building Interim Supportive Housing as a rapid, cost-effective, and thus, scalable solution. The company has yet to develop a project in the Imperial County.
12. Housing4USAII, LLC - Based in the City of Alhambra, CA. No further information is known about the company.
13. JPI California Construction, LLC - Based in the City of Irving, Texas, JPI California Construction, LLC develops, builds, manages, and invests in select communities throughout the Dallas-Fort Wort metroplex and Southern California. The company has yet to develop a project in the Imperial County.
14. Wevolunteerhere.com - Based in the City of Montebello, CA. No further information is known about the company.
Apart from the previously mentioned fourteen (14) developers, HCD's list also includes 511 developers interested in surplus land located in all counties within the State of California. A NOA must be sent to all 511 interested developers, along with the 14 developers interested in the Imperial County to comply with the SLA.
Negotiation Period - 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 good faith negotiations beginning on the first day after the end of the 60-day period. If any local agency disposing of surplus land receives a notice of interest to purchase or lease that land from more than one of the entities to which a NOA was given, the local agency shall give first priority to the entity or entities that agree to use the site for affordable housing and have no less than 25 percent of the total number of units designated for affordable housing. If a notice of interest from more than one agency complying with the previously mentioned requirement is received, then priority will be given to the entity with the greatest number of affordable units. If more than one entity proposes the same number of affordable units, then priority will be given to the entity that proposes the lowest average level of affordability for affordable units. For purposes of the 90-day good faith negotiation period, residential use of the surplus land by the prospective transferee shall be deemed an acceptable use.
Terms agreed to as part of the 90-day good faith negotiation period must comply with the following:
i. A local agency cannot prohibit residential use of the surplus land as a condition of a sale or lease.
il. A local agency cannot reduce the authorized number of residential units or the maximum lot coverage of the surplus land below what is allowed by zoning or general plan requirements.
ili. A local agency may not require, as a condition of sale or lease, any design standards or architectural requirements that would have a substantial negative effect on the viability or affordability of a housing development for very low-, low- or moderate-income households, other than the minimum standards required by general plan, zoning, and subdivision standards and criteria.
For the purposes of complying with the SLA's requirements regarding NOAs, "participating in negotiations" does not include the commissioning of appraisals, due diligence prior to the sale or lease of the surplus land, discussions with brokers or real estate agents not representing a potential buyer, or other studies to determine value or best use of the surplus land, issuance of a request for qualifications, development of marketing materials, or discussions conducted exclusively among local agency employees and elected officials.
A local agency may reject an offer only if the following applies:
a) A local agency may reject an offer when the local agency and buyer/lessee cannot agree on sales price or lease terms.
b) A local agency may reject an offer when priority is given to a competing offer that includes a greater number of affordable units or, in case of a tie in the number of units, the lowest average level of affordability consistent with Government Code Section 54222.5. c) A local agency may reject an offer when the interested entity is not responsive to a local agency's reasonable conditions or restrictions as described in the NOA, where consistent with these Guidelines and the SLA, and such conditions or restrictions are reviewed by HCD.
If the price or terms cannot be agreed upon after the full 90-day good faith negotiation period, then the local agency may dispose of the surplus land without further regard to the SLA but must still comply with Government Code Section 54233 or 54233.5, as applicable. Government Code Section 54233 states that if the local agency does not agree to price and terms with an entity to which notice of availability of land was given, or if no entity to which a notice of availability was given responds to that notice, and 10 or more residential units are developed on the property, not less than 15 percent of the total number of residential units developed on the parcels shall be sold or rented at affordable housing cost. Rental units shall remain affordable to, and occupied by, lower income households for a period of at least 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement. These requirements shall be contained in a covenant or restriction recorded against the surplus land prior to land use entitlement of the project.
Further consideration for Government Code Section 54233.5 is not required since the section only applies to districts. A copy of any restrictions recorded against the surplus land must be sent to HCD.
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 review using HCD forms. Upon receiving a response from HCD and addressing all comments, local entities may proceed with disposing of the property.
Please refer to Exhibit A below for more information.
Figure A - Surplus Land Act Standard Process
Declare surplus land Address any HCD Dispose of land
findings as needed
Notify all interested Send proposed
disposition to HCD
parties (60 days) for review
Review responses
and determine Negotiate in good
affordability faith (90 days)
minimums
NEXT STEPS
November 1 November 6 January 4 January April May June
• Declare • Send Notice • Review all • Enter 90 Day • Send • Address any • Disposal or surplus land. to all responses and good faith Proposed HCD findings Lease of land. interested determine negotiations Disposition to as needed.
Parties for 60 affordability to determine HCD for
days. minimums. sales price Review.
and terms or
lease terms.
*The timeline above is an estimate and may be subject to change. *The good faith negotiation period may be skipped if no interested parties contact the City during the 60-day notice period.
Fiscal Impack:
The existing structure was formerly utilized as an orthopedic clinic, but currently sits unused. By declaring the subject property as surplus land, developers will be notified of the availability of said land which may lead to a possible residential or commercial development providing economic growth. Furthermore, the proceeds gained from the sale or lease of the property will go to the owner which is the City of Calexico.
Coordinated With:
City Manager's Office.
Attachments:
Attachment A - Property Location Map
Attachment B - City Council Resolution
Exhibit A - Property Description
Exhibit B - Notice of Availability
Attachment A - Property Location Map
3rd Street
2nd Street
Avenue
Heffernan Heber Avenue Mary Avenue Blaire Avenue
1st Street
United States
-Mexico
LEGEND:
PROJECT AREA
The Holt Group, Inc. APN 058-535-001 VICINITY MAP
ENGINEERING - PLANNING • SURVEYING CITY OF CALEXICO
PROJECT No. 176.046
1601 N. Imperial Ave. El Centro, California 92243 (760)337-3883
NOT TO SCALE
DATE: 10/27/2023
Attachment B - City Council Resolution
Exhibit A - Property Description
Exhibit B - Notice of Availability
CITY COUNCIL RESOLUTION NO. 23-—
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALEXICO DECLARING PROPERTY LOCATED AT 352 FIRST STREET (APN: 058- 535-001) AS NON-EXEMPT SURPLUS LAND; APPROVING THE FORM OF NOTICE OF AVAILABILITY; DIRECTING THE CITY MANAGER
TO COMPLY WITH THE REQUIREMENTS OF THE SURPLUS LAND
ACT, GOVERNMENT CODE, SECTION 54220 ET SEQ.; AND FINDING
THE ACTION EXEMPT FROM CEQA
WHEREAS, the City of Calexico (the "City") owns that certain 2.32-acre property, located at 352 First Street which is more particularly depicted at Exhibit A (the "Property"); and WHEREAS, the Property is in the Commercial Specialty Zone and is currently occupied by three structures; and
WHEREAS, the Property is "surplus land" because it is not necessary for the City's use and none of the statutory exemptions set forth under Government Code Section 54221(f)(1) are applicable, and therefore the Property and disposition thereof are subject to the Surplus Land Act (Government Code Section 54220 et seq.) (the "Act").
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALEXICO HEREBY RESOLVES AS FOLLOWS:
Section 1. The above recitals are true and correct and are incorporated herein by this reference.
Section 2. The City Council finds that the Property is "surplus land" because it is not necessary for the City's use, as defined under the Act, Section 54221(c), and does not qualify as "exempt surplus land" under the Act, Section 54221(f).
Section 3. The City Council approves the form of Notice of Availability, attached hereto as Exhibit B (the "Notice"), and authorizes the City Manager or designee to comply with the requirements of the Act, to issue the Notice to those statutorily entitled to receive it (Section 54222), and to negotiate in good faith with those entities, if any, who submit qualified Notices of Interest (Sections 54222.5 and 54223).
Section 4. The action authorized by this Resolution does not authorize or approve the actual disposition or sale of the Property. Thus, this action does not commit the City to any future action, nor does this action approve a particular project, or grant any specific approval that would have a direct or reasonably foreseeable indirect environmental impact pursuant to the California Environmental Quality Act ("CEQA"). (See 14 California Code of Regulations Sections15060(c); 15378(b).) As such, the mere declaration of surplus land and authorization to proceed under the Act do not constitute the approval of a "project" under CEQA, and no further action under CEQA is required.
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Section 5. Severability. If any provision of this Resolution or the application thereofto any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.
Section 6. Effective Date. This Resolution shall become effective immediately.
The City Clerk of the City of Calexico shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 1s' day of November 2023.
Raul Ureña, Mayor
ATTEST:
Veronica Alvarado, Interim City Clerk
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF CALEXICO
I, Veronica Alvarado, Interim City Clerk of the City of CALEXICO, DO HEREBY CERTIFY that foregoing Resolution No. 23- was duly passed and adopted by the City Council of the City of Calexico at their regular meeting held November 1, 2023, by the following roll call vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Veronica Alvarado, Interim City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
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Exhibit A - Property Description
lotice of Availability of Surplus Land Property Description inter the stroot address, if code. This consolidated from multiple currently allowed on each Howed on each parcel Vacant". If the parcol is -mom the drondown monu. i voilable. Entor an intercoction. it sarcola at each parcel as al parcel exprescod as unite xorossod as unite por acro Entor the inter the nomo of the local olect the type of local public and only if, a site address is not ocessary to Enter the county in Enfarthe current avalaho mr sem Tale the densit This is the density allowed rizo of the fescription of the existing ublic entity disposing of oly that best describes Enter the city in which locate some which the site is some lotter for parcels that Enter the curront conora Enter the current after all relevant zoning our junsdiction. socossary to locoto somo cites no silo is locatod vill Do consolidated into oning amendments mondments incontive includos rosidential unite Sive Disit ZiP Minimum Density Allowed Maximum Density Allowed Parcel Sire lursdiction Name urisdiction Tyne ite Address/intersection Assessor Parcel Number Consolidated Sites (Current) (units/acre) (units/acre Gross Acres Existing Use /Vacancy Parcel has multiole existing
structres on the premists along
352 First Street alexico 92231 Imperial 19.536.-001 commerelal Core Mired ke commercial Specialty N/A NIA 2.32 with a parking lot city
Ity
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Ity
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City
Exhibit B - Notice of Availability
City of Calexico
City Manager's Office
FAR Phone: 760.768.2118 Fax 760.357.7862 Email: [email protected] CALEXICO Via Email Only
www.calexico.ca.gov
November 6, 2023
Draft - NOTICE OF AVAILABILITY OF SURPLUS LAND
TO: Whom It May Concern,
RE: Notice of Availability of Surplus Land in the City of Calexico Pursuant to California Government Code Section 54220 et seq. (the "Surplus Land Act") Pursuant to the provisions of the Surplus Land Act (California Government Code Section 54220 et seq.) (the "Act"), the City of Calexico ("City") hereby notifies those entities designated in Section 54222 of the Act of the availability for lease or purchase of the City-owned land identified in Exhibit 1 attached hereto and incorporated herein by reference (the "Development Site"), for the purposes authorized in the Act, which land the City has declared surplus by Resolution No. 2023-_, dated November 1, 2023, and prior to the disposition of the Development Site by the City, consistent with the Act and the City's policies or procedures.
The Development Site is located at 352 First Street and consists of one contiguous parcel totaling 101,188.77 square feet. The parcel is currently occupied by multiple existing structures. Ideally, the City desires to establish a long-term, fair market value ground lease or sale (as determined by an appraisal) of the Development Site. However, the City is willing to consider alternatives.
If you have any questions regarding the Development Site, you may contact the City's representative, Esperanza Colio, at the telephone number or email address listed below or by responding to the cover email accompanying this transmittal.
If interested in purchasing or leasing the City-owned land for an authorized purpose under the Act, you must notify the City in writing of your interest in purchasing or leasing the land within 60 days of the date of this Notice of Availability. Written notices of interest must be sent, if at all, to, and must be received by, January 4, 2023, within said 60-day period at the following address. The receipt of an email or notice by regular mail by way of the United States Postal Service is acceptable. If by regular mail, we suggest that you send it via certified mail with return receipt requested.
Please send written notices of interest to:
Esperanza Colio
City Manager
City of Calexico
(760) 768-2177
[email protected]
www.calexico.ca.gov