CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
Item No. Item No.
Item No.
Item No.
TO: Honorable City Council
FROM: City Manager
SUBJECT: Resolution Rescinding City Council Resolution No. 21-61, Reclassifying Surplus Land in the City of Commerce, California and Making Findings that the Properties are Necessary for the City’s Use Meeting Date: April 12, 2022
RECOMMENDATION:
The City Council will consider adopting a Resolution Rescinding City Council Resolution No. 21-61 adopted on July 20, 2021, Reclassifying certain real property as Surplus Land in the City of Commerce, California, and making the findings that the following Properties are necessary for the City’s Use. 5476 Jillson Street
5530 Jillson Street
5600 Jillson Street
2500 South Eastern Avenue
5571 East Washington Boulevard
5611 East Washington Boulevard
5555 East Washington Boulevard
BACKGROUND:
The Surplus Lands Act (“SLA”) (codified under Government Code section 54221) requires that before a local agency such as the City of Commerce takes any action to dispose of (sell or lease) property, it must declare the property to be either “surplus land” or “exempt surplus land”. Unless the surplus land is exempt, the agency must give written notice of its availability to any local public entity, including schools and park districts, within whose jurisdiction the property is located, as well as to housing sponsors that have notified the State Department of Housing and Community Development (HCD) of their interest in surplus property.
The SLA’s definition of “exempt surplus property” includes: property that is less than 5,000 square feet; property that is transferred to another local, state or federal agency for that agency’s use; property exchanged for another property for that agency’s use; property put out to competitive bid for 100% affordable housing units or for 300 (or more) housing units, at least 25% of which must be affordable to lower income households; property that is subject to a valid legal restriction not imposed by the local agency that would prohibit housing (non-residential zoning is not a valid legal restriction); property that is too small for residential use; or is a former street or easement that is conveyed to an adjacent property owner; and property that is licensed or leased for one year or less.
ANALYSIS:
On June 2, 2020, City Council adopted a resolution declaring the abovementioned Properties as Exempt Surplus Land. However, based on a review of the circumstances and amendments to the California SLA, it was determined that the properties did not meet the requirements for “exempt” surplus land. Therefore, on July 20, 2021, the City Council adopted resolution No. 21-61, reclassifying the Properties as Surplus Land.
In accordance with SLA guidelines, on October 4, 2021, the City issued a Notice of Availability to interested parties to inform them of the City’s intent to sell the abovementioned surplus Properties. In the event an agency was interested in acquiring the Properties, they were required to notify the City of their interest in writing within 60 days.
During the 60 day noticing period, City consultant Stantec Architecture Inc. completed a needs analysis and feasibility study that examined the City’s future Transportation and Public Works’ needs. The Stantec study evaluated the feasibility of a joint Transportation and Public Works facility, analyzing existing City facilities, studying current space deficiencies, future operational needs and service demands, land utilization, costs, and delivery of services to City residents.
The Stantec study found that future Transportation and Public Works needs were significantly greater than previously anticipated by the City. In order to accommodate future Transportation and Public Works needs, a joint facility would require approximately 439,743 square feet (10.10 acres) of land exceeding the 6.51 acre site that the City had previously identified as a potential site located at 5926 Sheila Street in the City of Commerce (aka CREA facility). As a result, the City now needs to find a new site for its future Public Works needs, which may include some or all of the Properties listed in the Notice of Availability. At present, and since April of 2021, Public Works has been headquartered and operating on some or all of the subject Properties listed in the Notice of Availability as are the City’s warehouse and logistics operations.
Due to the aforementioned changed circumstances, the City is now reviewing whether the Properties are necessary for the City’s future use. As such, on February 3, 2022, the City submitted a request to cancel the Notice of Availability to HCD. To formalize the City’s decision, HCD requested that the City provide a resolution rescinding the resolution that was previously adopted declaring the Properties Surplus Land.
In the event any of the Properties are not needed for City use, the City will dispose of said properties in accordance with the SLA guidelines as required by law at that time.
ALTERNATIVES:
Approve staff recommendation
Decline staff recommendation and provide further direction FISCAL IMPACT:
None by adopting the attached resolution.
RELATIONSHIP TO STRATEGIC GOALS:
This report before the Council is not applicable to any specific 2016 Strategic Plan Guiding Principle; however, it is related to the following Strategic Focus Area: Create and pursue opportunities for collaboration and regional partnerships to maximize resources and address regional issues.
Recommended by: Edgar P. Cisneros, City Manager
Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Edgar P. Cisneros, City Manager ATTACHMENTS:
Resolution
Resolution No. 21-61 (For reference only)