Justin Tucker
Assistant City Manager
January 7th, 2025
Pursue a Surplus Land Act
exemption and Approve
the First Amendment
Professional Services
Agreement with SVA
Architects
- ORInitiate the Surplus Land
Act process
3 The City Council:
• Requested additional information related to the proposed design team's qualifications to design this project.
• Requested additional information on the Surplus Land Act as it relates to this redevelopment project.
• Provided clarification on the planned project's residential component, including the maximum number of residential
units and the strong preference for residential units to be ‘for sale’ rather than corporate rentals.
4 • Designed dozens of completed mixed-use
and multi-family projects
• Extensive public sector work
• Proven track record for delivering
projects on time and budget
• Understand Corona's goals with the North
Mall and "Corona Revival" architecture
5 6
7 • Architectural
modules consistent
with original parcel
dimensions for 6th
and Main Street
properties
• 25'-50'-75' modules
8 9
10 11
12 Downtown Revitalization Project Plan
Continue acquiring properties and redevelop the
North Mall into a thriving, vibrant, mixed-use
development with retail, residential, and commercial
components.
Timeline
92%
Completion
Acquisition Design RFP Construction
2024 2025 2026 2027 2028 2029
City
Owned
City Owned
City Owned
City
Owned
City
Owned
City Owned
City
Owned City Owned
City
Owned
City
Owned
In Escrow
14 1. Council declares property ‘Surplus’
2. City files Notice of Availability (NOA) with CA Department of Housing and Community Development (HCD)
3. Good faith negotiations with Affordable Housing and other qualified developers
1. Preference given to largest number of housing units proposed at deepest affordability level (min 25% of units affordable)
2. City cannot demand more than market price for property
4. City provides documentation of process and (no)agreement to HCD
5. HCD makes a determination on compliance with process and outcome 15 Council declares
property
‘surplus’
Notice of
Availability
(NOA)
to HCD
Negotiate with
Qualified
Affordable
Housing
Developers
HCD review
(process &
outcome)
Possible:
RFP for
Developer
Development
Agreement
Council declares
property ‘exempt
surplus’
HCD review
(qualified
exemption)
RFP for
Developer Development
Agreement
‘Surplus’
‘Exempt Surplus’
16 Category # Summary
Deadline 6 Agreement prior to 2020
Mixed use 5 100% affordable, size & units, rural, transportation agency Trust 2 From state to local, into a Community Land Trust for housing Affordable housing Land Transferred for Affordable Housing Government use Agency Use (NOT commercial, retail, entertainment, or office) Small parcel Most < 0.5 acre parcels
Transfer 3 Agency use, other Agency or Tribe, vacated street land School 2 District lands
Misc 4 Airport land, Military base, Housing restricted, Special services 17 Exemption - Mixed Use Development of 300+ units with at least 25% of units as affordable
“A mixed-use development on surplus land that is more than one acre but less than 10 acres in area. The land may be a single parcel or multiple adjacent or non-adjacent parcels. The development must include not less than 300 residential units and restrict at least 25 percent of the residential units to lower-income households as affordable housing pursuant to section 102(a) of these Guidelines. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who 15 violates the covenant or restriction and each successor in interest who continues the violation.”
Surplus Lands Act Guidelines, Section 103(c)7(B)
18 Exemption - Mixed Use Development with 100% Affordability:
“A housing development (including mixed-use developments with ancillary commercial ground floor uses) that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower-income households as affordable housing pursuant to section 102(a) of these Guidelines. In no event shall the maximum affordable sales price or rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located. The requirements of Section 102(a) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation.”
Surplus Lands Act Guidelines, Section 103(c)7(A)
• Proceeding with entitlement without HCD determination could be a waste of money
• Entitled project would be an option for a building, but not required • A project with more housing units or higher offer (at market price) could outcompete the entitled project • Market viability: Cannot negotiate with building partner until determination from HCD
• Can have discussions with builders if pursuing an exemption • Two ‘mixed-use’ exemptions could apply to site:
• 300 units OR 100% affordable housing
• Community land trust for housing, not mixed use
• Non-profit controls site
• HCD will review proposals before a final determination 19 All Retail
(Developer Funded)
Pros
All Retail!
Cons
SLA. Still requires City
to go through SLA!
Risk of All Housing.
SLA means all housing
is potential outcome.
Commercially
Unviable. No one will
is building 100% brick
and mortar retail in
todays market – both
for capital and due to
long term viability.
High Risk. Does it
match the market? 1
All Retail
(City Funded)
Pros
All Retail!
Cons
SLA. Still requires City
to go through SLA (for
any leases longer than
15 years).
Risk of All Housing.
SLA means all housing
is potential outcome.
Commercially
Unviable. Serious
concerns about long-
term viability.
High Risk. Does it
match the market?
Cost-prohibitive. 2
Mixed Use
(SLA Exemption)
(100% affordable)
Pros
Affordable Housing
Cons
Market Reality.
Affordable housing
doesn’t pay for retail
Rentals. Not likely to
yield for sale units
Not Vibrant. All
affordable doesn’t
create vibrant retail
destination
Spending Power. All
affordable housing
yields lower spending
power to support
downtown businesses
SLA Process
Pros
Doesn’t require 300
minimum
Cons
High risk: Potential for
all residential & no
retail
Risk of Losing Control.
Less/no control of site
Rentals. Can’t dictate
sale or lease option
Stuck. Cannot reject a
market value proposal
we don’t like
More Housing. May
end up with more than
300 units
Delays revitalization
Mixed Use
(SLA Exemption)
(300 units)
Pros
Maximizes Retail
Offerings
Outreach: Can work
with builders to
validate concepts
while we design.
No risk of losing
control to housing
only
Council Driven.
Council drives design
and form via DDA
Expedites
revitalization
Cons
300 units (if housing
seen as undesirable) 3
45 21
• Approve the First Amendment Professional Services Agreement with SVA Architects in the amount of$1,482,150 for Architectural Services for the North Mall Development. • Authorize the City Manager, or his designee, to execute the First Amendment Professional Services Agreement with SVA Architects in the amount of $1,482,150 including any nonsubstantive extensions, change order, and amendments to 10% of the agreement amount, as authorized in Corona Municipal Code Section 3.08.070(I). • Authorize the City Manager, or his designee, to issue a change order to the on-call purchase order with SVA Architects, (PO B260001) in the amount of $1,482,150. • Authorize the City Manager, or his designee, to approve the appropriation of funds in order to execute the Agreement between the City of Corona and SVA Architectural Services. • Authorize an appropriation in the amount of $982,150 from the Measure X Fund 120 to the North Corona Mall Acquisition/Improvements, Operating and Maintenance Project No.78390. 22 Option A
Start Entitlement
and Pursue SLA Exemption
Option C
Start Entitlement and
Surplus Land Act Process
Option B
Do Not Entitle and Start
Surplus Land Act Process
Not
Recommended
Recommended High Risk
Pursue a Surplus Land Act
exemption and Approve
the First Amendment
Professional Services
Agreement with SVA
Architects
- ORInitiate the Surplus Land
Act process