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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Declaration of City-owned property adjacent to 1015 N. Central Avenue as exempt from the Surplus Land Act, from the City’s competitive bidding requirement, and from the California Environmental Quality Act
1. Resolution finding and declaring certain city-owned property (APN 5636-007-903) located adjacent to 1015 N. Central Avenue is exempt from the Surplus Land Act; is exempt from the Glendale Municipal Code section 4.52.010 requiring competitive bidding; and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3).
2. Motion authorizing staff to finalize negotiation and disposition of certain city-owned real property (APN 5636-007-903) to the Western Diocese of the Armenian Church of North America, contingent on the state Housing and Community Development Department's approval of the exemption resolution.
COUNCIL ACTION
Item Type: Action Item
Approved for April 30, 2024 calendar
EXECUTIVE SUMMARY
Last October the owners of 1015 N. Central Avenue inquired about purchasing a 3,720 square foot remnant piece of public right of way located adjacent to their property. The City originally acquired the parcel to be part of the Glenoaks Avenue right of way, but it never became necessary for that purpose. In order to dispose of City property through lease or sale the City must comply with the state Surplus Land Act (SLA). The SLA allows small parcels to be sold to an adjacent owner of contiguous land where the parcel is: (i) less than 5,000 square feet in area; (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less; or (iii) has no record access, is less than 10,000 square feet in area, and is not contiguous to land owned by a state or local agency that is used for open- space or low and moderate income housing purposes. Here, the remnant parcel qualifies as exempt surplus property under the SLA, however, prior to disposition the Council must adopt a resolution finding and declaring the land qualifies as exempt surplus, and then the City must submit the adopted resolution, along with parcel data, to HCD for a thirty- day review. Once HCD approves the exemption resolution, the City is authorized to dispose of the exempt surplus land through sale or lease. 2{{section.number}}{{item.number}}
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Further, GMC section 4.52.010 specifies that City-owned property only be sold after competitive bidding except under certain circumstances, including a land value less than $25,000 and a property size or configuration that renders the property incapable of development by itself. Here, an independent appraisal valued the property at less than $25,000, and as an irregularly shaped 3,720 square foot parcel the Property is incapable of development by itself.
RECOMMENDATION
Adopt the resolution making findings and declaring the remnant parcel as exempt surplus land and exempt from the City’s competitive bidding process, and authorizing its disposition to the Western Diocese of the Armenian Church of North America ("Church") contingent on HCD approval of the resolution. Adopt the motion authorizing the final negotiation of a purchase and sale agreement to sell the remnant parcel to the Church subject to HCD approval.
ANALYSIS
The City of Glendale owns a small, irregularly-shaped, remnant parcel of land (“Property”) (APN 5636-007-903) that totals 3,720 square feet and is located between 1015 N. Central - private property owned by the Western Diocese Of The Armenian Church Of North America ("Church") - and City right-of-way, as further depicted on Exhibits “A” and “A-1” (Site Maps) attached hereto.
On or about October 26, 2023, the Church expressed a desire to purchase the Property, which consists of a landscaped area historically maintained by the adjacent property owner. (Letter attached as Exhibit 2). Following the Church's request, staff ascertained there is no specific use or purpose for the Property which the City acquired in 1936 to widen and straighten Glenoaks Boulevard. Based on this investigation the City obtained a property appraisal which reflects a nominal fair market value of $22,300. Staff also prepared a draft purchase and sale agreement, which staff will finalize following Council's direction and HCD approval of the Exemption Resolution.
The Department of Housing and Community Development (“HCD”) Guidelines and the Surplus Land Act (“SLA”) control the future sale of certain government owned property and allows for exemption status if such property is sold to an owner of contiguous land and the property is: (i) less than 5,000 square feet in area; (ii) less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less; or (iii) has no record access, is less than 10,000 square feet in area, and is not contiguous to land owned by a state or local agency that is used for open-space or low and moderate income housing purposes. Government Code section 54221(f)(1)(B) and SLA Guidelines, section 103(b)(3)(B). The Property qualifies for the SLA exemption because of its size and location.
Glendale Municipal Code section 4.52.010 provides that “Any real property, or interest therein owned by the city, may be sold only after competitive bidding to the highest bidder, except as provided in Section 4.52.040. Section 4.52.040 entitled “Sales not subject to 3{{section.number}}{{item.number}}
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chapter” excepts certain sales, conveyances and other dispositions of real property, including, a sale of real property or interest therein having a reasonable market value of less than $25,000 as estimated by the city manager (GMC §4.52.040.A.2), and a sale of real property or interest therein which is incapable of development by itself and can only be developed if sold to an adjacent property owner. After such sale, said property or interest therein shall be subject to current city zoning and development requirements (GMC §4.52.040.A.5).
The proposed disposition for the Property qualifies for an exemption from the City’s competitive bidding requirement because the property has been appraised at a value less that $25,000 and because the remnant parcel cannot be developed by itself.
STAKEHOLDERS/OUTREACH
Not applicable.
FISCAL IMPACT
City would add revenue to its General Fund from this sale.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The proposed resolution declaring the Property exempt surplus property is exempt from the California Environmental Quality Act (CEQA) because it can be seen with certainty that there is no possibility that this activity may have a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3). The future sale of the Property, if approved by the City Council, would be exempt from CEQA pursuant to CEQA Guidelines Section 15312 (Surplus Government Property Sales) because the Property would be declared exempt surplus property pursuant to the Surplus Land Act and is not located in an area of statewide, regional, or areawide concern identified in CEQA Guidelines Section 15206(b)(4).
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Not adopt the resolution and motion as recommended.
2. Other options selected by the City Council.
ADMINISTRATIVE ACTION
Submitted by:
Michael J. Garcia, City Attorney
Prepared by:
Gillian van Muyden, Chief Assistant City Attorney
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Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
1. Site Maps A and A-1.
2. Letter of interest from adjacent property owner.
3. Draft Purchase and Sale Agreement.