City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 21-2534 Agenda Date: 10/24/2023
Agenda #: I. Category: Consent Calendar
FROM:
Development Services
SUBJECT:
Resolution of Public Interest and Convenience No. 2023-102 declaring the intent to sell 1.94 acres of City owned property and declaring the property exempt surplus land and setting a public hearing to consider protest for conveyance of the property.
RECOMMENDATION:
Adopt the Resolution of Public Interest and Convenience No. 2023-102, declaring the City’s intent to sell 1.94 acres of unimproved land located on Sierra Avenue, between Santa Ana Avenue to the north and Jurupa Avenue to the south (a portion of assessor parcel numbers 0255-101-22-0-000 and 0255- 101-23-0-000) (“Property”) in order to facilitate the construction of a 50 unit affordable family- apartment housing project (“Project”), declaring the Property exempt surplus land pursuant to Government Code Section 54221(f)(1)(A) as it is surplus land that is being transferred pursuant to Government Code Section 37364, setting a public hearing to consider protests for conveyance of the Property; adopt California Environmental Quality Act findings concerning the adequacy of the previously adopted Mitigated Negative Declaration, and Mitigation, Monitoring and direct staff to file a Notice of Determination
COUNCIL GOALS:
To promote affordable housing by construction of high-quality multi-family housing which also serves to address the affordability needs of this community.
BACKGROUND/PROJECT DESCRIPTION:
City has been in negotiations with Fontana Courtplace I Housing Partners, L.P., a California limited partnership (the “Developer”) regarding the sale and purchase of that certain property 1.94 acres of unimproved land located on Sierra Avenue, between Santa Ana Avenue to the north and Jurupa Avenue to the south (assessor parcel numbers 0255-101-22-0-000 and 0255-101-23-0-000). The Property will be sold by the City by entering into a Disposition and Development Agreement (DDA) with the Developer whereby Developer will develop the property into a 50 unit affordable family- apartment rental housing project.
The City declares its intent to convey the Property pursuant to the terms of the DDA (subject to a finding by the Planning Commission that the sale is in conformance with the City’s General Plan), fixes a time for the hearing of any protests to the disposition, provides for publication of the notice of said hearing, and fixes the time for final action on the disposition of the Property and approval of the PSA.
Surplus Land Act
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1 File #: 21-2534 Agenda Date: 10/24/2023
Agenda #: I. Category: Consent Calendar
California Government Code Section 54220 et seq. (the “Surplus Land Act”) was amended in 2019 by Assembly Bill 1486 (“AB 1486”) and requires, among other things, that prior to the disposal of any surplus land, unless an exemption applies, a local agency must provide notice to, among others, affordable housing developers, and thereafter negotiate in good faith for ninety (90) days with any parties who submit a notice of interest. However, under the Surplus Land Act, as amended by AB 1486, the Property is exempt surplus land because, pursuant to Government Code Section 54221(f) (1)(A) as this is surplus land that is being transferred pursuant to Government Code Section 37364.
Government Code Section 37364 authorizes cities to convey land to a developer for developing housing where at least 40% of the total developed units are to be affordable to households whose incomes are less than or equal to 75% of the maximum income for lower income households (80% of AMI), and at least half of the affordable units are set aside for very low income households (50% of Area Median Income “AMI”).
The DDA provides that of the 50-unit affordable family-apartment units, all but the manager unit, will be low, very low or extremely low income units. The affordability level of the units as required by the DDA is as follows: 5 of the units will be leased to extremely low income households (i.e., 30% of the AMI), 25 of the units shall be leased to households that are very low income (i.e., 40%-50% AMI), and 19 units shall be leased to lower income households (i.e., 60% AMI); and there is one manager unit.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Pursuant to the California Environmental Quality Act (Pub. Res. Code §§ 21000 et seq.) (“CEQA”), and the State CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et seq.) the City determined that a Mitigated Negative Declaration (MND) be prepared in order to analyze all potential adverse environmental impacts of a proposed multi-level residential affordable apartment buildings with associated green space, community gathering areas, vehicle parking, landscaping, and security fencing on the approximately 4.8-acres of land (“Courtplace Project”). The City prepared and adopted the Courtplace Project MND on November 1, 2022 for the Courtplace Project.
Pursuant to CEQA, when taking subsequent discretionary actions in furtherance of a project for which an MND has been adopted, the lead agency is required to review any changed circumstances to determine whether any of the circumstances under Public Resources Code section 21166 and State CEQA Guidelines Section 15162 require additional environmental review. Staff evaluated the proposed Resolution declaring the intent to sell the property, finding the property to be exempt surplus land, and setting the public hearing in light of the standards for subsequent environmental review outlined in Public Resources Code section 21166, State CEQA Guidelines section 15162 and City of Fontana’s 2019 Local Guidelines for Implementing CEQA; and, In connection with the Resolution declaring the intent to sell the property, finding the property to be exempt surplus land, setting the public hearing and the City Council’s review of the Courtplace Project MND, staff recommends that the City Council independently review all the prior environmental documentation prepared for the Courtplace Project, and exercise its independent judgment in making the determination that the Courtplace Project MND fully analyzed and mitigated, all potentially significant environmental impacts, if any, that would result from adoption of Resolution declaring the intent to sell the property, finding the property to be exempt surplus land, and setting the public hearing, and therefore, no subsequent EIR or mitigated negative declaration is required.
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2 File #: 21-2534 Agenda Date: 10/24/2023
Agenda #: I. Category: Consent Calendar
FISCAL IMPACT:
There is no fiscal impact associated with the approval of this item. Once the sale of the property is approved, staff will report the sale price to City Council.
MOTION:
Adopt the Resolution of Public Interest and Convenience No. 23-_____, declaring the City’s intent to sell 1.94 acres of unimproved land located on Sierra Avenue, between Santa Ana Avenue to the north and Jurupa Avenue to the south (a portion of assessor parcel numbers 0255-101-22-0-000 and 0255- 101-23-0-000 )(“Property”); in order to facilitate the construction of a 50 unit affordable family- apartment housing project (“Project”), declaring the Property exempt surplus land pursuant to Government Code Section 54221(f)(1)(A) as it is surplus land that is being transferred pursuant to Government Code Section 37364; setting a public hearing to consider protests for conveyance of the Property; directing City Staff to publish the resolution; and adopting California Environmental Quality Act findings concerning the adequacy of the previously adopted Mitigated Negative Declaration, and Mitigation, Monitoring, and Reporting Program.
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