RESOLUTION NO. 11698
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE, DECLARING CERTAIN REAL
PROPERTIES TO BE SURPLUS LAND PURSUANT
TO THE SURPLUS LAND ACT (GOVERNMENT
CODE SECTION 54221(b)), MAKING FINDINGS IN
SUPPORT THEREOF, DIRECTING STAFF TO
COMPLY WITH THE NOTICE AND
NEGOTIATION REQUIREMENTS OF THE
SURPLUS LAND ACT, AND AUTHORIZING THE
CITY MANAGER TO TAKE ALL ACTIONS
NECESSARY TO EFFECT THE DISPOSITION OF
SUCH PROPERTIES
WHEREAS, the City of Orange (“City”) is a municipal corporation duly organized and existing under the laws of the State of California, and holds in fee simple the real properties identified in Exhibit A attached hereto and incorporated herein by this reference (collectively, the “Subject Properties”); and
WHEREAS, to the extent any Subject Property constitutes an asset of the former Orange Redevelopment Agency addressed in the Long Range Property Management Plan (“LRPMP”) approved by the Oversight Board and the California Department of Finance, the disposition of such property shall be undertaken consistent with the LRPMP and Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code (the “Dissolution Act”); and
WHEREAS, the California Surplus Land Act, Government Code Sections 54220 through 54234 (the “Surplus Land Act” or “SLA”), governs the disposition of land owned in fee simple by a local agency that is no longer necessary for the agency’s use; and
WHEREAS, Government Code Section 54221(b)(1) provides that, before a local agency may take any action to dispose of land owned in fee simple, the agency’s governing body must take formal action in a regular public meeting declaring the land to be either “surplus la nd” or “exempt surplus land,” as supported by written findings; and
WHEREAS, the City Council has determined that the original governmental purpose for which each Subject Property was acquired or held has been fulfilled, completed, or is no longer applicable, that none of the Subject Properties is being used, or is planned to be us ed pursuant to a written plan adopted by the City Council, for any purpose constituting an “agency’s use” as defined in Government Code Section 54221(c), and that the Subject Properties are no longer necessary for the City’s use; and
WHEREAS, the City Council has further determined that the Subject Properties do not satisfy the criteria for any exemption set forth in Government Code Section 54221(f)(1), including without limitation the small-parcel exemption under Section 54221(f)(1)(B), because, among other reasons, certain of the Subject Properties exceed one -half acre in area, certain of the Subject 2 Properties are contiguous to land owned by the City and used for low - and moderate -income housing or open -space purposes, and certain of the Subject Properties are presently or were formerly improved with governmental use facilities or occupied by residential tenants; and
WHEREAS, the Subject Properties therefore constitute “surplus land” within the meaning of Government Code Section 54221(b) and must be disposed of in compliance with the full notice and good-faith negotiation requirements of the Surplus Land Act; and
WHEREAS, the property located at 124 -142 S Grand Street (APN 390 -382-07) is presently occupied by six (6) extremely-low-income residential tenants, and the City intends that any disposition of that property be undertaken in a manner consistent with applicable tenan t protection, notice, and relocation requirements, and in furtherance of the Surplus Land Act’s priority for the development and preservation of affordable housing; and
WHEREAS, pursuant to Government Code Section 54222, before disposing of the Subject Properties or participating in negotiations to dispose of the Subject Properties, the City must send a written notice of availability to all entities entitled to such notice, includ ing any local public entity within whose jurisdiction the Subject Properties are located and any housing sponsor that has notified the California Department of Housing and Community Development (“HCD”) of its interest in surplus land for the purpose of developing low- and moderate-income housing, and, as applicable, to the park and recreation departments of the City and the County of Orange, any regional park authority having jurisdiction in the area, and the California Natural Resources Agency for open-space purposes; and
WHEREAS, following the notice of availability, the Surplus Land Act requires that the Subject Properties remain available for a period of not less than sixty (60) days for entities to express interest, that the City engage in good-faith negotiations for a period of not less than ninety (90) days with any entity that expresses interest, and that, if the City and such entity are unable to agree on price and terms for a housing development that includes at least twenty -five percent (25%) affordable units, the City record a deed restriction requiring that, in the event ten (10) or more residential units are developed on the property, not less than fifteen percent (15%) of those units be made available at affordable housing cost; and
WHEREAS, the City must submit a description of the notices of availability sent, a summary of negotiations conducted, and a copy of any restrictions to be recorded against the Subject Properties to HCD for review through the Surplus Land Portal prior to agreeing to terms for disposition, all in accordance with the SLA and the Updated Surplus Land Act Guidelines published by HCD on August 1, 2024; and
WHEREAS, the City Council finds that the adoption of this Resolution is not a “project” within the meaning of the California Environmental Quality Act (“CEQA”) (Public Resources Code Section 21000 et seq.) and the State CEQA Guidelines (14 Cal. Code Regs. Section 1 5000 et seq.) because the declaration is an administrative action that will not result in any direct or reasonably foreseeable indirect physical change in the environment, and is therefore exempt under State CEQA Guidelines Sections 15060(c)(2), 1 5060(c)(3), and 15378(b); any subsequent disposition or development of an individual Subject Property will be evaluated under CEQA at the appropriate time.
3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:
1. That the foregoing Recitals are true and correct and are incorporated herein by this reference as the findings of the City Council in support of this Resolution.
2. That the City Council hereby finds and determines that the original governmental use for which each Subject Property identified in Exhibit A was acquired or held has been fulfilled, completed, or is no longer applicable; that none of the Subject Properties is be ing used, or is planned to be used pursuant to a written plan adopted by the City Council, for any purpose constituting an “agency’s use” as defined in Government Code Section 54221(c); that none of the Subject Properties is being retained for the sole purpose of investment or generation of revenue; and that each Subject Property is no longer necessary for the City’s use.
3. That the City Council hereby further finds and determines that none of the Subject Properties qualifies as “exempt surplus land” under Government Code Section 54221(f)(1), and each Subject Property identified in Exhibit A is hereby declared to be “surplus land” pursuant to Government Code Section 54221(b), subject to the full notice and good -faith negotiation requirements of the Surplus Land Act.
4. Staff is hereby directed to comply with all applicable requirements of the Surplus Land Act prior to the disposition of any Subject Property, including without limitation: (a) sending a written notice of availability to all entities entitled to notice unde r Government Code Section 54222, including local public entities and housing sponsors registered with HCD, and, as applicable, to the park and recreation departments of the City and the County of Orange, any regional park authority having jurisdiction i n the area, and the California Natural Resources Agency; (b) holding each Subject Property available for not less than sixty (60) days following the notice of availability; (c) engaging in good -faith negotiations for not less than ninety (90) days with any entity that expresses interest; (d) recording the affordable -housing deed restriction described in the Recitals if and as required where the City and an interested entity are unable to agree on price and terms; and (e) submitting a description of the notices of availability, a summary of negotiations, and any restrictions to be recorded to HCD for review through the Surplus Land Portal prior to agreeing to terms for disposition.
5. With respect to the property located at 124 -142 S Grand Street (APN 390 -382-07), staff is further directed to undertake any disposition in compliance with all applicable federal, state, and local tenant protection, notice, and relocation requirements, to c oordinate with the existing residential tenants to minimize displacement to the extent feasible, and to prioritize the preservation and development of affordable housing consistent with the purposes of the Surplus Land Act.
6. The City Manager, or the City Manager’s designee, is hereby authorized and directed to take any and all actions necessary or appropriate to effectuate the purpose and intent of this Resolution, including without limitation: (a) issuing the notices of availability and transmitting all required documentation to HCD in accordance with the Surplus Land Act and the Surplus Land Act Guidelines; (b) commissioning appraisals of the Subject Properties; (c) initiating and 4 conducting disposition and negotiation activities consistent with the Surplus Land Act, the LRPMP and Dissolution Act (to the extent applicable), and other applicable law; and (d) executing such documents and instruments as may be necessary or convenient to carry out this Resolution, subject to such approvals of the City Council as may be required by law.
7. To the extent any Subject Property is a former Orange Redevelopment Agency site, net unrestricted proceeds from the disposition of such property shall be remitted to the Orange County Auditor-Controller for distribution to the affected taxing entities in a ccordance with the LRPMP and Health and Safety Code Section 34191.5(c)(2)(B), based on chain of title findings from a formal title report, provided that the City’s allocable share of such proceeds shall be deposited in the General Fund (100).
8. This Resolution shall take effect immediately upon its adoption.
ADOPTED this day of , 2026
Daniel R. Slater, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:
Nathalie Adourian, City Attorney, City of Orange
5 STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the day of , 202 6 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Pamela Coleman, City Clerk, City of Orange
6 EXHIBIT A
SUBJECT PROPERTIES
All Subject Properties listed below are declared “surplus land” under Government Code Section 54221(b) and are subject to full compliance with the Surplus Land Act.
Property Address /
Description Assessor Parcel No. Approx. Size (sq. ft.) Constraints 124-142 S Grand St. 390-382-07 7,841 SF 6 Existing Extremely Low-Income Tenants
(LRPMP Govt. Use)
148 S Grand St. 390-382-08 7,841.32 SF Existing Surface Parking Lot (Non
LRPMP Site)
154 S Grand St. 390-382-09 7,841.31 SF Existing Surface Parking Lot (Non
LRPMP Site)
230 E Chapman 390-382-05 16,123.72 SF Existing
Governmental Use
Facility (Non LRPMP
Site)
S. Grand St. 390-382-14 15,013.97 SF Existing Surface
Parking Lot (Non
LRPMP Site)
176 S Grand St. 390-382-11 33,668.32 SF Existing Former Govt.
Use Facility (Non
LRPMP Site)