CITY OF
LONG
July 12, 2022
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Development Services Department
411 West Ocean Boulevard, 3"' Floor Long Beach, CA 90802 (562) 570-5237
R-16
Adopt a Resolution declaring The Long Beach Community Investment Company owned property located at 225-227 E. 15th Street and 1510 Palmer Court (APN 7269-017- 035,036,037) as "exempt surplus land" as defined in Government Code Section 54221 (f)(1 )(F) and
Authorize the City Manager, or designee, to take any actions and execute any documents necessary to ensure compliance with the Surplus Land Act and State regulations relating thereto. (District 1)
DISCUSSION
The City of Long Beach's (City) wholly-owned non-profit public benefit organization, The Long Beach Community Investment Company (LBCIC), is currently fee owner of the property located at 225-227 E. 15th Street and 1510 Palmer Court, APN 7269-017-035,036,037 (Attachment A - Subject Property). The Subject Property is 13,068 square feet in size and consists of three adjacent, vacant parcels. The LBCIC purchased the parcels from the City in 2007 and 2009 for the future development of affordable housing. The City had previously acquired the parcels from the County of Los Angeles (County) through a Chapter 8 agreement for the purchase of tax-defaulted properties. The County provided an opportunity for the City to purchase properties at the cost of the unpaid taxes and administrative and processing costs.
The California Surplus Land Act (SLA), as codified in Government Code Section 54220 et seq., requires all agencies to prioritize affordable housing as well as parks and open space when disposing of surplus land. Surplus land is land owned by a local agency that is determined to be no longer necessary for the agency's use. Recent changes to the SLA, through Assembly Bill 2135 (AB 2135), (i) revises procedures for disposition by sale or lease of surplus land by local agencies, (ii) extends the good faith negotiation period with potential affordable housing developers to ninety (90) days, (iii) deepens affordability requirements where an affordable housing project is developed on the site, and (iv) adds a requirement that if negotiations with an affordable housing developer are unsuccessful, then any residential development on the surplus land over ten units must make at least 15 percent of the units affordable. Further, AB 2135 no longer allows exceptions and requires local agencies to adopt a Resolution declaring property "surplus" or "exempt surplus" as supported by findings at a regular public meeting of the agency's governing body.
HONORABLE MAYOR AND CITY COUNCIL
July 12, 2022
The LBCIC considers the Subject Property to be exempt surplus land, as defined by the Government Code Section 54221 (f)( 1 ). In order to proceed with disposition and development of the Subject Property, the City Council, as the legislative body of the City, makes the following finding:
• The LBCIC shall require the buyer of the Subject Property to provide housing affordable to persons and families of low or moderate income. Development proposals with 100 percent of the residential units being affordable will be solicited pursuant to a competitive process and such proposals and subsequent development will otherwise comply with the requirements of Government Code Section 54221 (f)(1 )(F).
This matter was reviewed by Deputy City Attorney Richard F. Anthony and Revenue Management Geraldine Alejo on June 8, 2022.
TIMING CONSIDERATIONS
City Council's adoption of the Resolution is requested on July 12, 2022, to allow the LBCIC to implement actions necessary to comply with the SLA and issue a request for proposals for the disposition and development of affordable housing on the Subject Property.
FISCAL IMPACT
This recommendation has no staffing impact beyond the budgeted scope of duties and is consistent with existing City Council priorities. There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
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OSCAR W. ORCI
DIRECTOR OF DEVELOPMENT SERVICES
ATTACHMENTS: RESOLUTION
ATTACHMENT A- SUBJECT PROPERTY
APPROVED:
THOMAS B. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH DECLARING THE PROPERTY
LOCATED AT 225 E. 15TH STREET / 1510 PALMER
COURT (APN 7269 -017-035, -036, -037), AS “EXEMPT
SURPLUS LAND ” AS DEFINED IN GOVERNMENT CODE
SECTION 54220 ET SEQ.; AND AUTHORIZE THE CITY
MANAGER, OR DESIGNEE, TO TAKE ANY ACTIONS AND
EXECUTE ANY DOCUMENTS NECESSARY TO ENSURE
COMPLIANCE WITH THE SURPLUS LAND ACT AND
STATE REGULATIONS RELATING THERETO
WHEREAS, the City’s wholly-owned non-profit public benefit organization, the Long Beach Community Investment Company (“LBCIC”), is currently fee owner of the property, located at 225 E. 15th Street / 1510 Palmer Court (“Subject Property”); and WHEREAS, the Subject Property is 13,068 square feet and is unimproved; and
WHEREAS, the LBCIC purchased the Subject Property from the City in 2009 for future development of affordable housing; and
WHEREAS, to reactivate the Subject Property, generate sales proceeds, and generate property tax by returning the Subject Property to the tax rolls, staff recommends proceeding with the disposition of the Subject Property in compliance with the Surplus Land Act (“SLA”); and
WHEREAS, the Subject Property shall be disposed of and developed in such a manner that it will qualify as exempt surplus land, as defined by Government Code Section 54221(f)(1)(F)(i);
NOW, THEREFORE, the City Council of the City of Long Beach resolves as
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
follows:
Section 1. The City Manager is hereby authorized to declare the property located at 225 E. 15th Street / 1510 Palmer Court (APN 7269 -017-035, -036, -037) as exempt surplus land and authorize the City Manager, or designee, to take any actions and execute any documents necessary to ensure compliance with the Surplus Land Act and State regulations relating thereto.
Section 2. The LBCIC shall put the Subject Property out to open competitive bid, which such bid process shall include all entities identified in subdivision (a) of Section 54222 of the Government Code , for development of affordable housing in accordance with Section 54221(f)(1)(F)(i).
Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of ________________________________, 2022 by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk
ATTACHMENT A
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