Attachment No. 1
RESOLUTION NO. 23-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK
MAKING FINDINGS UNDER THE SURPLUS LAND ACT AND
APPROVING THE PURCHASE AND SALE OF THE REAL PROPERTY
LOCATED AT 12843 NORWALK BOULEVARD BY AND BETWEEN THE
CITY OF NORWALK AND WILSHIRE GROUP FUNDING, INC.
WHEREAS, the City of Norwalk (“City”) is the Successor Agency to the Norwalk Redevelopment Agency, which acquired real property located at 12843 Norwalk Boulevard, Accessor’s Parcel Number: 8047-005-903 (“Property”), in the City of Norwalk, County of Los Angeles, by eminent domain from the Wilshire Group Funding, Inc. (“WGF”) in 2008; and
WHEREAS, pursuant to California Code of Civil Procedure (“CCP”) §1245.245, if the Property taken by eminent domain is not used for the stated public use within ten years of the adoption of the “Resolution of Necessity”, and a new or reauthorization resolution was not adopted, Property shall be sold to the person or persons from whom the Property was acquired; and
WHEREAS, as of 2019, the City had not developed the Property into a permanent public parking lot as stated in the Resolution of Necessity associated with the acquisition of the Property by eminent domain nor adopted a reauthorized resolution; and WHEREAS, in January of 2019, WGF filed a Writ of Mandate against the City to enforce a right of first refusal against the City pursuant to CCP §1245.245; and WHEREAS, on July 24, 2020, City and WGF entered into a Settlement and Tolling Agreement (“Settlement Agreement”) under which City agreed to sell the Property to WGF pursuant to the provisions of CCP §1245.245; and
WHEREAS, City and WGF have agreed to terms for the sale based on two appraisals with a date of value of April 15, 2018, which have been memorialized in an Agreement of Purchase and Sale and Escrow Instructions; and WHEREAS, in July of 2023, the California Department of Housing and Community Development (“HCD”) issued the City written guidance confirming that the granting of a right of first refusal pursuant to CCP §1245.245(f) is not a disposition of surplus land and therefore not subject to the California Government Code (“Gov. Code”) Sections 54220 et seq. (“Surplus Land Act”); and
WHEREAS, pursuant to Section 54221(f)(1)(G), surplus land that is subject to “valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site” is considered “Exempt Surplus Land.” Resolution No. 23–70 Page 2 of 3
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORWALK HEREBY DETERMINES, FINDS, AND RESOLVES AS FOLLOWS:
Section 1. The facts set forth in the Recitals, above, are true and correct and incorporated into the findings below.
Section 2.Findings. Pursuant to the information included in the above recitals, the associated Agenda Report, and Surplus Land Act, the City Council finds that:
A. The sale of the Property to WGF is not a “disposition of surplus land” and therefore not subject to the Surplus Land Act in concurrence with the HCD Guidance. As the Property was acquired through eminent domain and subject to the right of first refusal provisions in CCP § 1245.245, a sale of the Property to WGF would not be considered a “disposition of surplus land” and would not require the City to issue a notice of availability or make the Property available for acquisition by an affordable housing developer or sponsor or other local public entities.
B. In addition to the finding set forth in Subsection A of Section 2 above, the City Council alternatively finds that the Property constitutes Exempt Surplus Land pursuant to Section 54221(f)(1)(G) of the Surplus Land Act. Because the Property was acquired by the City through eminent domain, the Property is subject to WGF’s right of first refusal pursuant to CCP Section 1245.245. The right of first refusal is not a condition or legal restriction imposed by the City, but rather imposed by operation of law pursuant to CCP §1245.245(f). Therefore, the right of first refusal cannot feasibly be avoided or mitigated.
Therefore, the City finds that WGF’s right of first refusal is a valid legal restriction on the Property that would prohibit the development of housing, and hereby declares the Property “Exempt Surplus Land” pursuant to Section 54221(f)(1)(G) of the Surplus Land Act. The City is therefore not required to issue a notice of availability or make the Property available for acquisition by an affordable housing developer or sponsor or other local public entities.
Section 3. The actions taken by the City Council under this Resolution are exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15312 – Class 12 – Surplus Government Property Sales and also the common sense exemption pursuant to CEQA Guidelines Section 15061(b)(3) and none of the exceptions to the exemptions under CEQA Guidelines Section 15300.2 apply.
Section 4. The City Council also approves the Agreement of Purchase and Sale and Escrow Instructions for the real property located at 12843 Norwalk Boulevard, in the City of Norwalk, California (Accessor’s Parcel Number: 8047-005-903), and hereby authorizes the City Manager to execute the Agreement of Purchase and Sale and Escrow Instructions and any ancillary documents reasonably necessary to effectuate the intent of this Resolution in a form approved by the City Attorney.
Resolution No. 23–70 Page 3 of 3
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Section 5. If any section, subsection, paragraph, sentence, clause, phrase, or portion thereof of this Resolution is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have adopted this Resolution, and each section, subsection, paragraph, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, paragraphs, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. To this end, the provisions of this Resolution are declared to be severable.
Section 6.The Mayor, or presiding officer, is hereby authorized to affix her signature to this Resolution signifying its adoption by the City Council of the City of Norwalk and the City Clerk, or her duly appointed assistant, is directed to attest thereto.
Section 7. This Resolution shall become effective immediately upon its adoption.
APPROVED AND ADOPTED on this 5th day of December 2023.
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ANA VALENCIA
MAYOR
ATTEST:
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THERESA DEVOY, CMC
CITY CLERK