RESOLUTION 22-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON OVERRULING ALL PROTESTS RECEIVED AND FINDING THAT DISPOSITION OF A PORTION OF THE PROPERTY LOCATED AT 212 E. SANTA FE AVENUE (APN 033-030-18) IS IN THE INTEREST OF AND FOR THE CONVENIENCE OF THE PUBLIC WHEREAS, the City is the owner of approximately 2.05 acres of real property located at the southwest corner of East Santa Fe Avenue and South Pomona Ave, identified as APN 033-030-18 and commonly known as 212 E. Santa Fe Avenue and desires to sell approximately 1.66 acres to Developer, as more specifically described in Attachment 1 attached hereto and incorporated herein by this reference (“Property”); and WHEREAS, on December 4, 2018, the City entered into an Exclusive Negotiation Agreement (ENA), with the Developer, West Park Investments, LLC and Parkwest Contractors to develop a portion of a city owned public parking lot at the southwest corner of East Santa Fe Avenue and South Pomona, into an upscale boutique hotel; and WHEREAS, since the August 2021 ENA Extension, the project has been modified to construct 140 residential units, 124 room hotel, 3,570 square feet of retail, 3,570 square foot restaurant and 412 parking stalls (City, Residential and Hotel parking) (“Project”); and WHEREAS, the purchase price payable by the Developer for the Property pursuant to the DDA is not less than the fair market value of the Property as determined by an appraisal within the preceding six months; and WHEREAS, the proposed project will provide much needed housing and hotel space in the transit corridor and facilitate the City’s efforts to revitalize and stimulate development in the area consistent with the City’s General Plan; and WHEREAS, on November 15, 2022, the City Council adopted Resolution 22-XXX declaring its intent to sell the property, declaring the property exempt surplus land, and setting a public hearing for December 6, 2022, to hear any protests to the proposed transaction and take action on the DDA; and WHEREAS, the Council has conducted public hearing on December 6, 2022 and continued the public hearing to December 20, 2022; and WHEREAS, the Council received numerous public comments and a formal protest to the sale of the land from Unite Here Local 11; and WHEREAS, the protest was based upon the property being used for a mixed use project/not a housing project and assertions regarding compliance with the California Environmental Quality Act; and WHEREAS, a number of questions were raised during the public comment regarding:
Noticing of the public hearing. The Council was advised by City Attorney Jones that they could proceed as the City had achieved substantial compliance with the requirements of the statute and there was no evidence of actual harm by the shortened notice period, particularly in light of the facts that the City Council had set the date for the public hearing at a public meeting, the noticing had been posted for a substantial number of days, and the environmental document for the Project had been noticed properly for the same day and time. Out of an abundance of caution and in the interest of transparency the Council directed staff to renotice the public hearing and return to the Council on December 20, 2022. Staff noticed the sale on December 9, 2022, in the Orange County Register.
Surplus Land Act (“SLA”): Pursuant to Government Code Section 54234(a)(1) a local agency which had property that was subject to an ENA prior to September 30, 2019 could complete that transaction without complying with the new rules provided the disposition of land occurs no later than December 31, 2022. Because the property was under an ENA prior to the enactment of AB 1486, the City is in compliance with the SLA provided the transaction closes by December 31, 2022.
Lease or Sale of the Land. Questions have been raised as to whether the City can lease the land instead of selling of the land. Pursuant to the laws governing the disposition of former RDA assets and the compensation agreements the City entered into with the taxing entities, the City must provide payment to the affected taxing entities in proportion to their shares of the base property tax, as determined pursuant to Health and Safety Code Section 34188, for the value of the property following disposition of the Property. A lease would not result in a lump sum payment from the Developer that would allow the City to distribute those funds as provided for in State law and in accordance with the City’s obligations under the compensation agreements. The sale, not lease, of the Property is appropriate in this instance based upon the laws governing the disposition of former RDA property and the City’s contractual obligations to the affected taxing entities agreed to by the City in the compensation agreements in 2018.
Clarification of Property to be conveyed. As described in the December 6, 2022, staff report the City currently owns approximately 2.05 acres located at 212 East Santa Fe Avenue. It is generally described as S. Pomona Avenue and E. Santa Fe Ave (south side of Santa Fe) and as the parking lot to the north east of the train station. Of this area the City is selling approximately 1.66 acres. The DDA does not apply to any property currently leased by the City to a third party. An additional description and depiction of the site to be conveyed has been made public. 100% Affordable Housing or Mixed Use Project. Based upon the ongoing housing crisis in California a number of speakers asserted that the City should develop this site as a 100% affordable housing project. The sale of the Property for a mixed use project is consistent with the City’s adopted governing documents and use of the site for housing, and specifically a 100% affordable housing project, is not required by current City policy, City governing documents, the SLA, or any other state law. Proceeding with the current disposition of land as described in the DDA will result, if the entitlements for the project are approved, with housing making it to market many years sooner than any other potential affordable housing project. As required by the DDA, Developer shall provide not less than 12% of the base maximum density (60 DU/acre) allowed by the specific plan as housing affordable to households earning between 60% and 120% of area median income. Developer will enter into a Regulatory Agreement with the City concurrent with entitlements to ensure the units are affordable for not less than 55 years.
ADA compliance. ADA Compliance related to the project will be addressed during the entitlement process. The proposal is anticipated to include accessible rooms and residential units, wayfinding signage, and ground level accessible features related to mobility access.
CEQA. The potential environmental impacts of the proposed Project have been fully analyzed in a Mitigated Negative Declaration under CEQA, and the proposed Project’s potential impacts will be mitigated to a level of less than significant with the implementation of the mitigation measures set forth in the Mitigation Monitoring and Reporting Program.
Parking. Developer is required to ensure that not less than 164 parking spaces are made available to the public in perpetuity following the issuance of a certificate of completion for the Project. Not less than 138 of the spaces shall be provided on site with the remaining potentially provided off site with City Manager approval.
Local labor. Developer has committed to using its best efforts utilize union labor for the construction of the project WHEREAS, the City Council has duly considered all public comment and protests received and believes that the sale of the Property is for the convenience of and in the best interest of the City of Fullerton and the health, safety and welfare of its residents and in accord with the public purposes and provisions of applicable state and local laws and requirements.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Fullerton does hereby resolve as follow:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. The City Council hereby finds that each of the issues raised in public comment and protest to the sale have been addressed, that the sale is for the public interest or convenience, and the Council does hereby overrule all protests received:
Section 3. This Resolution shall take effect from and after its date of adoption APPROVED by the City Council of the City Fullerton this 20th day of December 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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Mayor
ATTEST:
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City Clerk
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