CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
5/22/2023
1 SUBJECT:
Declaration of Surplus Property Regarding a Portion of City-owned Property Located at 540 Crespi Drive (APN 022-162-420). Recommended California Environmental Quality Act (CEQA) Status: Categorical Exemption, CEQA Guidelines Section 15312.
RECOMMENDED ACTION:
Adopt the attached resolution to declare a portion of the City-owned property located at 540 Crespi Drive (APN 022-162-420) as surplus land and directing the City Manager to follow the procedures set forth in the Surplus Land Act, California Government Code Section 54220 et seq.
STAFF CONTACT:
Christian Murdock, AICP, Planning Director
(650) 738-7341
[email protected]
BACKGROUND/DISCUSSION:
The City of Pacifica (“City”) owns real property located at 540 Crespi Drive (APN 022-162-420) .
A portion of 540 Crespi Drive is currently used as the Community Center and skatepark, a driveway for the Community Center and skatepark, a wet-weather equalization basin (“EQ Basin”) and other City purposes. The other portion of 540 Crespi Drive, which is comprised generally of the eastern 55 feet of the site, and is approximately 540 feet long as measured from Crespi Drive southward (the “Property”), is not developed or used for City purposes. The total area of the Property is ±30,195 gross square feet. The Property has a General Plan land use designation of Public and Semi-Public (approximately northern half) and Park (approximately southern half). The zoning classification of the Property is M-1 (Controlled Manufacturing District).
The City acquired the Property in 1986 and, as noted above, it does not currently contain any City facilities or directly support any City services. Staff analyzed the feasibility of utilizing the Property and determined it was not feasible due to the narrow width and location between existing public facilities and private property. In particular, a grade differential is present along the boundary that transitions from the Community Center parking lot and driveway to the Property, making integration of the Property into the Community Center improvements challenging. Further, existing infrastructure, particularly the EQ Basin pipes and other equipment, would present practical difficulties in integrating development of the Property with the existing Community Center driveway and parking lot. In addition, the current configuration of the Community Center driveway and parking lot does not readily lend itself to an expanded use at the site.
Staff recommends that the Property be disposed of in accordance with Surplus Lands Act procedures since it is no longer needed for a City purpose. The proceeds generated may provide funding to enhance City services. Additionally, the development of the Property could Pacifica City Council 2
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provide affordable housing if a responding entity proposes a feasible project, as discussed below.
The Surplus Land Act requires all local agencies to prioritize affordable housing, as well as parks and open space, when disposing of surplus land. Recent legislation, which took effect on January 1, 2020, requires that before a local agency takes any action to dispose of land, the land must be declared “surplus land,” as supported by written findings, unless the disposal falls under any statutory exemptions. This law was part of an effort by the State to make the extensive inventory of local agency property held for future use available for development as affordable housing. The law also declares that holding property for the purpose of future industrial, commercial or retail development is no longer considered a public use.
In this case, no exemptions apply and the Property must be declared “surplus” in order to be transferred to another party. Adoption of the resolution (Attachment 1) would declare the Property as surplus land.
Upon the City’s determination that the Property is surplus land, the procedures set forth in California Government Code section 54220, et seq. must be followed. Those procedures require the City to send a written notice of availability (NOA) offering the sale of the Property to the California Department of Housing and Community Development (HCD), housing agencies, and housing sponsors (entities that have notified HCD of their interest in receiving NOAs). In addition, entities not on HCD’s list of housing sponsors may respond to an NOA. Entities interested in developing the Property for affordable housing have 60 days to respond to the NOA. If the City receives a letter of interest from any entity to develop affordable housing, then the City would enter into good faith negotiations concerning the price and terms of the sale with the interested party for a period of 90 days. An essential factor in the required good faith negotiations will be that the responding entity has proposed a feasible project and can demonstrate the experience and ability to carry out the project. If the price or terms cannot be agreed upon after 90 days (or if no entity gives notice of interest), the City may sell the Property to another party. An agreement for the sale of the Property would be brought to the City Council for consideration at a future date.
The requested action to declare the Property as surplus land is a necessary first step to a potential sale and is required to comply with the Surplus Land Act. It does not, however, obligate the City to sell the land if agreement cannot be reached on terms or price for the sale or any interested entities do not respond to the NOA.
California Environmental Quality Act (CEQA) Status
Sale or lease of surplus government property is exempt from the California Environmental Act (CEQA) pursuant to Section 15312 of the CEQA Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3).
ALTERNATIVE ACTION:
The City Council could determine not to declare the Property as surplus land.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The recommended action would be consistent with the following Fiscal Year 2022-2023 City Council goals:
• “Fiscal Sustainability” includes investing in economic development to increase revenues, funding a reserve/emergency fund, and being well prepared for grant opportunities.
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• “A Healthy and Compassionate Community” includes addressing affordable housing and mental health services, exploring and implementing strategies that relate to homelessness, and supporting community services for all ages.
FISCAL IMPACT:
There is no fiscal impact associated with this action. The City would not be required to accept less than market value for sale of Property.
ORIGINATED BY:
Planning Department
ATTACHMENT LIST:
Attachment 1 - Declaration of Surplus Property (Portion of 540 Crespi Drive) (DOCX)