DATE:
February 7, 2023
TO:
Mayor and City Council Members
Chair and Board Members, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
Victor Knight, Economic Development Manager
SUBJECT:
Adopt Joint Resolution Declaring Property Owned by the City of Hesperia as “Surplus”
RECOMMENDED ACTION
It is recommended that the City Council/Commission/Board adopt Joint Resolution No. 2023-06, Hesperia Housing Authority Resolution No. HHA 2023-01, and Community Development Commission Resolution No. CDC 2023-01, declaring three properties, including (A) two properties owned by the Community Development Commission and (B) one property owned by the Hesperia Housing Authority (HHA) as “Surplus Land”.
BACKGROUND
Assembly Bill (AB) 1486 was approved by the legislature and signed by the Governor in the fall of 2019. AB 1486 made various amendments to Government Code Sections 54220 et seq., concerning the process for disposition of surplus land by cities and other local agencies. These laws went into effect on January 1, 2020.
The new laws require the City to annually report on surplus lands held by the City to facilitate development of affordable housing around the State. AB 1486 states land “not necessary for the agency’s use” be declared “surplus” or “exempt surplus” as supported by written findings before a local agency can take any action to dispose of it consistent with an agencies policies or procedures.
Agency’s use is defined as land being used or is planned to be used pursuant to a written plan adopted by the local agency’s governing board for agency work or operations, including, but not limited to, utility sites, watershed property, conservation purposes, exhibition, or buffer sites. Agency’s use shall not include commercial or industrial uses or activities, including non-governmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agency’s use.
Any land that is declared “surplus” must be noticed for sixty days to other public agencies and prospective affordable housing developers that have registered with the State before the local agency may take any action to dispose of said property. Any eligible entities have 60 days to notify the City in writing of its intent to purchase or lease the land, after the 60-day terms both parties have an additional 90 days to complete good faith negotiations. If terms are not agreed upon within this 90-day period, the property may be disposed of without further regard to the Surplus Lands Act.
ISSUES/ANALYSIS
In compliance with state law, staff recommends that the Chair and Commissioners declare the following two Community Development Commission (CDC) parcels as Surplus Land:
APN
Street name
Acres
Zoning
Action
1. 0407-261-03
9th Ave.
1.3 Neighborhood Commercial
To Sell
2. 0407-261-04
9th Ave.
1.2 Neighborhood Commercial
To Sell
In compliance with state law, staff recommends that the Chair and Board Members of the Hesperia Housing Authority declare the following property as Surplus Land:
APN
Street name
Acres
Zoning
Action
1. 0407-261-20
9th Ave.
1.28 Neighborhood Commercial
To Sell
FISCAL IMPACT
There is no fiscal impact related to the declaration of the surplus properties as surplus or exempt surplus or to the release of the Notice of Availability (NOA). However, depending on the number of responses to the notice of availability, City staff and consultants may spend time on negotiations, property appraisals and purchase and sale agreements.
If the City disposes of land in violation of the Surplus Land Act (SLA) after receiving a Notice of Violation (NOV) and fails to correct the violation within 60 days, an administrative penalty of 30% of the final sale price of the land sold in violation of the SLA, or 50% for each subsequent violation shall be invoiced by the Housing and Community Development to the City. Funding for this property was not included in the budget and if savings are not available, staff will submit as a budget amendment.
ALTERNATIVES
Provide alternative direction to staff.
ATTACHMENT
Joint Resolution No. 2023-06, HHA No. 2023-01, and CDC No. 2023-01 City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the City Council/Commission/Board Members Adopt Joint Resolution Declaring Property Owned by the City of Hesperia as “Surplus” February 7, 2023