CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
A Resolution of the City Council of the City of Pacifica, California, Declaring Certain Portions of City-Owned Property Located at Montecito Avenue and Beach Boulevard also Known as San Mateo County Assessor’s Parcel Numbers 016-204-020 and 016-294-620 in the City of Pacifica (The Properties) as Surplus Land Pursuant to the Surplus Land Act (Government Code Sections 54220 Et Seq.); Directing the City Manager to Follow the Procedures Set Forth in the Surplus Land Act; and Finding The Action Exempt From The California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15312 (Class 12).
RECOMMENDED ACTION:
Adopt the attached resolution to declare certain portions of the City-owned properties located at Montecito Ave and Beach Boulevard (APN 016-204-020 and 016-294-620) as surplus land and direct the City Manager to follow the procedures set forth in the Surplus Land Act, California Government Code Section 54220 et seq; and finding the action exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15312 (Class12).
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 501-6004
[email protected]
BACKGROUND/DISCUSSION:
The City of Pacifica (“City”) owns real property located at Montecito Ave and Beach Blvd in the City of Pacifica (APN’s:016-204-020 and 016-294-620) (“Properties”). Relevant Characteristics of the subject property include two contiguous non-residential parcels identified as 016-204-020 and 016-294-620. The subject parcels occupy a prominent oceanfront site at the southeast corner of Beach Boulevard and Montecito Avenue with street address at 2212 Beach Boulevard in the City of Pacifica, San Mateo County. The sites have a total land area of approximately
3.00+/- gross acres or 130,680+/- gross square feet (which includes the vacated portion of Pacific Avenue), to be zoned mixed use commercial, allowing for high-density mixed-use development, including residential, retail, hotel, and community uses.
Currently, a portion of Assessor’s Parcel Number (APN) 016-204-020 is being used as the City Council Chambers, and Public Works storage facility, both uses could be relocated if needed to accommodate future development. However, as a condition of sale, the City may retain a portion of this property for its continued use as City Council Chambers. Additionally, a portion of APN 016-294-620 of approximately 17,000 square feet, must be retained for its current and ongoing use as a sewer pump station. A portion of the Properties must allow public parking for access to the Pacifica Pier and surrounding areas.
The Properties are zoned Public Facilities and Coastal Zone, and the land use designations in the 2040 General Plan1 as Mixed Use Neighborhood and Public and Semi-Public. The City 1 The 2040 General Plan will be in effect in Coastal Zones upon certification of the Local Coastal Land Use Plan (LCLUP) by the California Coastal Commission. The land use designations under the 1980 Pacifica City Council 2
April 28, 2025
wishes to pursue the potential sale of the Properties; therefore, it must now comply with the Surplus Land Act and has hired Kosmont Companies to assist in that process.
These Properties were previously identified in the City’s Economic Opportunity Study (available on the City’s website) as a key opportunity site for economic development and revenue generation. Additionally, the future development of this site was incorporated into the City Council’s Strategic Plan as a priority to support the organizational and fiscal stability strategic goal.
On October 9, 2019, Governor Newsom signed Assembly Bill (“AB”) 1486. AB 1486, which amended the Surplus Land Act (“SLA”), effective January 1, 2020, changed the existing, longstanding definition of “surplus land”; providing that land no longer necessary for a local agency’s use shall be declared either “surplus land” or “exempt surplus land” before taking any action to sell or lease land. To that end, AB 1486 also added a new limitation providing that an “agency’s use” “shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development,” or “property disposed of for the sole purpose of investment or generation or revenue.” AB 1486 further prohibits the City from negotiation of any disposition of the Property prior to compliance with the procedural requirements of the SLA.
On October 11, 2023, the Governor signed Assembly Bill 480 (“AB 480”) and Senate Bill 747 (“SB 747”) into law, which further clarify provisions of the Surplus Land Act. AB 480 and SB 747, which became effective on January 1, 2024, generally provide some increased flexibility as it pertains to the lease of public agency land, expands the definition of exempt surplus land, and the methodology for assessment of penalties for non-compliance (e.g. fair market value or sales price, whichever is greater).
California Department of Housing and Community Development (“HCD”) has also published Guidelines relating to the implementation of the SLA, which were most recently updated in 20242.
DISCUSSION
The Surplus Land Act, Government Code sections 54220 et seq., requires all local agencies to prioritize affordable housing, as well as parks and open space, when disposing of 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 Properties to 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 Properties 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 Properties to another party.
If there are no responses to the NOA, the land may be disposed of without further regard to the General Plan are Public Facilities (north parcel) and Medium Density Residential and Commercial (south parcel).
2 https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/final-updated-surplus-land-actguidelines-2024.pdf Pacifica City Council 3
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Surplus Land Act subsequent to a compliance letter from HCD.
The requested action to declare certain portions of the Properties as surplus land is a necessary first step to a potential sale and is required to comply with the SLA. 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 City Council goal:
• Organizational and Fiscal Stability” includes investing in economic development to increase revenues and enhance long-term sustainability.
This surplus designation aligns with the City’s Strategic Plan, which identifies this site for future development as a revenue-generating asset and community benefit.
FISCAL IMPACT:
Direct costs for undergoing the sale of the Properties involve an appraisal(s) and traditional real estate broker services, which will be offset by any proceeds received from the sale of the Properties. The exact final costs for these services, as well as revenue proceeds from the sale of the properties are not known at this time given the complexity and unknown factors when negotiating under the SLA process.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
EXHIBIT A (PDF)
Pacifica City Council 4
April 28, 2025
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA, CALIFORNIA,
DECLARING CERTAIN PORTIONS OF CITY-OWNED PROPERTY LOCATED AT
MONTECITO AVENUE AND BEACH BOULEVARD ALSO KNOW AS SAN MATEO COUNTY ASSESSOR’S PARCEL NUMBERS 016-204-020 AND 016-294-620 IN THE
CITY OF PACIFICA (THE PROPERTIES) AS SURPLUS LAND PURSUANT TO THE SURPLUS LAND ACT (GOVERNMENT CODE SECTIONS 54220 ET SEQ.); DIRECTING
THE CITY MANAGER TO FOLLOW THE PROCEDURES SET FORTH IN THE SURPLUS LAND ACT; AND FINDING THE ACTION EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15312 (CLASS 12)
WHEREAS, the City of Pacifica (“City”) owns certain real property consisting of approximately 3.0 acres located at Montecito Ave and Beach Blvd, Pacifica, California (APN’s:016-204-020 and 016-294-620) (“Properties”);
WHEREAS, a portion of Assessor’s Parcel Number 016-204-020 may be retained by the City for its current and possible continued public use as City Council Chambers, and a portion of APN 016-294-620 shall be retained for its current and continued public use as a sewer pump station and for public parking;
WHEREAS, the Surplus Land Act, Government Code sections 54220 et seq., applies when a local agency disposes of “surplus land,” as that term is defined in Government Code section 54221;
WHEREAS, certain portions of the Properties that do not currently contain City facilities or do not directly support any City services would fall within the definition of “surplus land” pursuant to Government Code section 54221; WHEREAS, in order to pursue new uses for the Properties, including the possible disposition through a sale or lease of the property, the City must now comply with the Surplus Land Act.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PACIFICA, CALIFORNIA, AS FOLLOWS,
SECTION 1: The foregoing recitals are hereby incorporated and adopted as the findings of the City Council; and
SECTION 2: Pursuant to Section 15312 of the California Environmental Quality Act (“CEQA”) Guidelines (i.e., California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000-15387), approval of this Resolution is exempt from CEQA because it involves the sale of surplus government property and none of the exceptions in section 15300.2 apply.
Pacifica City Council 5
April 28, 2025
SECTION 3: The City Council of the City of Pacifica does hereby find and declare that certain portions of the Properties, more particularly shown in Exhibit A to this Resolution, are no longer necessary for the City’s use and is therefore surplus land as defined in California Government Code section 54221.
SECTION 4: The City Council hereby authorizes the City Manager to send written notices of availability of the Property, to negotiate the terms of proposed sale of the Property and otherwise follow the procedures of the Surplus Land Act, California Government Code section 54220, et seq., as amended on January 1, 2020.
SECTION 5: Any proposed agreement for the disposition of the Property shall be subject to the approval of the City Council.
SECTION 6: This Resolution shall take effect immediately upon its adoption by the City Council. The City Clerk shall certify as to the adoption of this Resolution. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 28th day of April, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney