DATE: 12/03/2025
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
2025-460
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION DECLARING THE PROPERTIES AT 106, 114, 122, AND 138 EAST SIXTH STREET, IDENTIFIED AS ASSESSOR’S PARCEL NUMBERS 117-191-001,117- 191-002, 117-191-003, AND 117-191-004 ARE EXEMPT SURPLUS LAND EXECUTIVE SUMMARY:
This report asks Council to adopt Resolution 2025-112, declaring that the parcels located at 106, 114, 122, and 138 East Sixth Street, are exempt surplus land. All properties are currently vacant.
RECOMMENDED ACTION:
That the City Council:
a. Adopt Resolution 2025-112, declaring that the properties at 106, 114, 122, and 138 East Sixth Street and identified, respectively, as assessor’s parcel numbers 117-191-001, 117-191-002, 117-191-003, and 117-191-004, are no longer necessary for the City’s use and are exempt surplus land, under the Surplus Land Act .
b. Authorize the City Manager, or his designee, to follow applicable procedures related to the disposition of exempt surplus properties pursuant to the Surplus Land Act.
BACKGROUND & HISTORY:
The City acquired the properties at 106 East Sixth Street (1,750 sq. ft./0.04 acres) 114 East Sixth Street (1,750 sq. ft./0.04 acres), 122 East Sixth Street (1,750 sq. ft./0.04 acres), and 138 East Sixth Street (2,100 sq. ft./0.05 acres) on December 24, 2024, as part of its Downtown Revitalization Plan efforts. The sites, which consist of four vacant commercial parcels, are intended for sale or long-term leasing to incoming businesses consistent with the Downtown Revitalization Plan’s business attraction goals and are not needed by the City for its own government or public uses. These commercial suites are part of a larger commercial center, The Hub., and are not capable of supporting residential development.
Declaring these parcels surplus will facilitate their leasing to commercial businesses and aid in the City’s efforts to create a vibrant downtown activity center.
The Surplus Land Act (Government Code § 54220 et seq.) (SLA) governs the disposition of City-owned real property that is no longer needed for the City's use. The SLA requires each local agency to inventory properties that exceed foreseeable needs and to classify them as either surplus land or exempt surplus land.
Staff recommends that City Council declare the subject properties exempt surplus land pursuant to the criteria outlined in Government Code Section 54221.
ANALYSIS:
The SLA requires that a local agency must declare property to be “surplus land” before taking any action (sale or long-term lease) to dispose of the property. Surplus land is land deemed not necessary for a local agency‘s use.
Notice of Availability (NOA) Process: Under the SLA, when disposing of surplus land, a local agency is required to issue a NOA to certain entities for affordable housing, parks and recreation, school facilities, and other public uses, allowing 60 days for responses and subsequent good faith negotiations.
Exemptions: However, the SLA allows for exceptions to this standard SLA process for parcels that qualify as and are declared by the local agency to be “exempt surplus land”.
Property declared to be “exempt surplus land” may be disposed of outside of the SLA’s NOA process.
There are various types of exemptions which may be applicable. The four of above referenced parcels can be declared exempt pursuant to Government Code Section 54221(f)(1)(B), with one also pursuant to Government Code Section 54221(f)(1)(C).
GC 54221(f)(1)(B) Exemption: The above referenced parcels meet the definition of exempt surplus land pursuant to Government Code Section 54221(f)(1)(B) because:
Each parcel individually is less than one-half acre and all 4 parcels together are less than one-half acre and
None of the parcels are contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.
GC 54221(f)(1)(C) Exemption: In addition, the parcel located at 114 East Sixth Street meets the definition of exempt surplus land pursuant to Government Code Section 54221(f)(1)(C), which provides that:
Surplus land that a local agency is exchanging for another property necessary for the agency’s use qualifies as exempt surplus land.
Exchange with the Cortez Family
The Cortez family owns a parcel of property located in the North Mall at 496 Corona Mall (APN 117-143-036) where they have continuously operated Cortez Jewelers for more than 60 years. The City and the Cortez Family will be entering into mutually satisfactory agreements which will allow the Cortez family to continue their commitment to Corona’s downtown and keep Cortez Jewelers in the downtown for many years to come. Through these agreements the City will be acquiring 496 in the North Mall and the Cortez family will be acquiring 114 in the South Mall.
Adoption of Resolution No. 2025-112 would formally declare the properties exempt surplus land. The City’s determination will be submitted to the California Department of Housing and Community Development (HCD) as required.
FINANCIAL IMPACT:
There is no financial impact associated with the declaration of the parcels as exempt surplus property.
ENVIRONMENTAL ANALYSIS:
This action before Council is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the Guidelines for CEQA, which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that 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. Resolution No. 2025-112 declares that the properties at 106, 114, 122, and 138 East Sixth Street are exempt surplus land and there is no possibility that this action will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: AMINAH MEARS, DPA, ASSISTANT TO THE CITY MANAGER REVIEWED BY: JOEL BELDING, ECONOMIC DEVELOPMENT DIRECTOR ATTACHMENTS:
1. Exhibit 1 – Resolution 2025-112
2. Exhibit A – 114 E. Sixth Street Site Map
3. Exhibit B – 122 E. Sixth Street Site Map
4. Exhibit C – 138 E. Sixth Street Site Map
5. Exhibit D – 106 E. Sixth Street Site Map