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051623 ADM GMI Right-of-Way Exempt Surplus Property Agenda Report

City Council - Successor Agency - Housing Authority
May 16, 2023

Document
051623 ADM GMI Right-of-Way Exempt Surplus Property Agenda Report
Meeting
May 16, 2023
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City Council - Successor Agency - Housing Authority
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Agenda Report
Fullerton City Council
MEETING DATE: MAY 16, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ERIC LEVITT, CITY MANAGER
PREPARED BY: DAISY PEREZ, DEPUTY CITY MANAGER
SUBJECT: DECLARATION OF CITY-OWNED PROPERTY LOCATED EAST OF 1747 WEST COMMONWEALTH AVENUE AS EXEMPT SURPLUS PROPERTY

SUMMARY
Staff recommends City Council declare the property located east of 1747 West Commonwealth Avenue exempt from the Surplus Land Act process as the City finds the property not suitable for housing because it is right-of-way and the City has initiated the process to convey an adjacent property owner.

RECOMMENDATION
Adopt Resolution No 2023-XXX.

RESOLUTION NO 2023-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA PURSUANT TO GOVERNMENT CODE SECTION 54221, DECLARING REMNANT RIGHT-OF-WAY PROPERTY AS NOT NECESSARY FOR CITY USE AND DETERMINING SUCH PROPERTY AS EXEMPT SURPLUS, FINDING SUCH DECLARATION EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND TAKING RELATED ACTIONS

CITY MANAGER REMARKS
The City Manager recommends City Council adoption of the resolution.

When the property is eventually sold, the City Manager recommends the below conditions as part of the sale.

A covenant that the land remains open space (or a parking lot), and cannot have a structure built.

The City secures necessary utility easements for access.

The City has a condition that any trees recommended for removal would require the City arborist or a contract arborist by the City agree to the removal.

PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:

Infrastructure and City Assets.

FISCAL IMPACT
None.

DISCUSSION
The City of Fullerton completed a grade separation project in the early 1960s at the railroad crossing on West Commonwealth Avenue between Brookhurst Road and South Basque Avenue. Part of the project realigned West Commonwealth Avenue resulting in a remnant parcel of right-of-way, referred to as the “subject property”.

Hunt Foods granted the right-of-way parcel to the City in 1961. No Assessor Parcel Number (APN) identifies the subject area. The grade separation on West Commonwealth Avenue essentially landlocked the subject property. The property located at 1747 West Commonwealth Avenue provides the only viable access to the former right-of-way.

Grace Ministries International (GMI) owns the property at 1747 West Commonwealth Avenue, located on the northwest corner of Brookhurst Street and Commonwealth Avenue. The subject property owned by the City of Fullerton sits immediately east of 1747 Commonwealth Avenue. GMI has interest in acquiring this right-of-way from the City to create a secured parking lot and expand the amount of parking for their adjacent properties. The City must go through the Surplus Land Act (SLA) process to sell the right-of-way parcel to GMI.

The Surplus Land Act, amended by Assembly Bill 1486 (Ting 2019) as well as other subsequent bills, provides a statute that local agencies must follow when disposing of surplus land. These amendments modified the SLA to require local agencies in California to submit notices of availability of surplus land to the California Department of Housing and Community Development (HCD) for listing on the HCD website and to notify interested developers and certain local public entities. The SLA may exempt Land declared exempt surplus from some or all provisions of the SLA that meets certain criteria.

The Surplus Properties Land Act, Government Code Sections 54220-54233 (“Act”), defines surplus land as land owned in fee simple by the City for which City Council takes formal action in a regular public meeting declaring the land surplus and not necessary for the City use. The City must declare the land either surplus land or exempt surplus land under the Act. The Act considers land necessary for City use if the City uses or plans to use land pursuant to a written plan adopted by City Council, for City work or operations and City Council desires to declare that the property exempt surplus land and not necessary for City use.

The Act requires that before City Council disposes of exempt surplus land or engages in negotiations to dispose of exempt surplus land, the City must support such a determination with written findings and shall provide a copy of the written determination to the HCD at least 30 days prior to disposition.

The surplus property meets the definition “Exempt” under Government Code Section 54221 (f)(1)(E): “Surplus land that is a former street, right of way, or easement, and is conveyed to the owner of an adjacent property. The property is exempt surplus if it is conveyed to the owner of an adjacent property.” Staff recommends that City Council adopt a resolution declaring the subject property exempt from the Surplus Land Act process on the basis that the property is not suitable for housing because it is right-of-way and the City is conveying the property to an owner of an adjacent property.

Attachments:

Attachment 1 – Draft Resolution No. 2023-XXX
Attachment 2 – Subject Property Map
Attachment 3 – Historical Aerial Imagery
Attachment 4 – City Engineer Declaration
cc: City Manager Eric J. Levitt
Right-of-Way Exempt Surplus Property Declaration
May 16, 2023 - Page PAGE \* MERGEFORMAT 2

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