Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: FEBRUARY 7, 2023
AGENDA REPORT
SUBJECT: RESOLUTION DECLARING CERTAIN PROPERTIES LOCATED AT 323, 307, 312 and 314 BAKER STREET IN THE CITY OF PLACENTIA, EXEMPT SURPLUS
LAND FOR PURPOSES OF THE SURPLUS LAND ACT
FISCAL
IMPACT: NONE
SUMMARY:
The Surplus Land Act (SLA) of California (Government Code Section 54221) requires that a City must declare property to be "surplus land" before the City can take any action (sale or lease) to dispose of the property. Surplus land is land deemed not necessary for a local agency's use, including, but not limited to, utility sites or land used for conservation purposes.
In the Fall of 2019, Assembly Bill 1486 amended the SLA to address the current housing crisis by promoting the construction of affordable housing on surplus land. The amendments require that a local agency sell property through a Notice of Availability followed by a negotiation process that favors affordable housing. However, the SLA and Section 103 of the Guidelines allow for exceptions to this standard SLA process. Specifically, SLA Section 54221(f)(1)(F)(i) of the Guidelines allow for a property to be declared "Exempt Surplus" land if 100% of the units are restricted to low- and moderate -income households, of which at least 75% of the proposed residential units are restricted to lower income households and the minimum income and affordability covenants terms are 55 years for rental units and 45 years for ownership units. Based on these Guidelines, the proposed affordable housing development at Baker Street is in alignment with the "Exempt Surplus Land" status designation under Section 54221(f)(1)(F)(i) of the SLA.
This action authorizes the City Administrator, and/or his designee, to initiate the "Exempt Surplus Land" status designation with the California Department of Housing and Community Development (HCD). If approved by the City Council, the Resolution must be provided to HCD for review and approval at least 30 days prior to disposition of the City -owned parcels. HCD will have thirty (30) days from receipt of the Resolution to determine whether the proposed parcels are exempt from further requirements of the SLA.
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Feb 07, 2023
City Council/Successor Agency/ICDA Agenda
February 7, 2023
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution No. R-2023-05, A Resolution of the City Council of the City of Placentia, California declaring pursuant to the Surplus Land Act that certain real property owned by the City located at 323, 307, 312, and 314 Baker Street are exempt surplus land not necessary for the City's use and proposed for a 100% affordable housing development finding that such declaration is exempt from environmental review pursuant to Section 15194 of the California Environmental Quality Act and taking related actions; and
2. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Promote Community and Economic Development under Objective #3.9, which is Facilitate Affordable Housing along Baker Street.
DISCUSSION:
On July 18, 2017, the City Council successfully adopted the Old Town Revitalization Plan. This zone change plan will improve and position the City's historic center to better connect with other areas of the City. Old Town Placentia is an asset to the City and is poised to be one of the City's key destinations. The plan will enhance the historic importance of the area and create public spaces and pathways making a cohesive small scale walkable urban village feel with retail, restaurants, offices, and residential areas. The Baker Street properties are within this zone change and are designated for high-density residential development at 65 max density units per acre. This area is zoned for a maximum building height of four stories (55 feet) located along Baker Street and Walnut Avenue at the southwest corner of the Plan area, just north of the railroad tracks.
On October 18, 2022, the City Council approved a Professional Services Agreement with Keyser Marston Associates for Real Estate Advisory Services for Affordable Housing Development on Baker Street. Based on Keyser Marston's Analysis, it is determined that the City -owned properties at 323, 307, 312, and 314 Baker Street, proposed for an affordable housing development, are in alignment with the "Exempt Surplus Land" status designation under Section 54221(f)(1)(F)(i) of the SLA.
PROVISIONS OF THE SURPLUS LAND ACT
Surplus Land Act (Gov't Code § 54220, et seq.) reaffirmed the State's commitment to further the availability of affordable housing by requiring that surplus government land be first made available for housing projects. As a result, the California Department of Housing and Community Development (HCD) adopted guidelines to increase compliance with the Surplus Land Act that
City Council/Successor Agency/ICDA Agenda
February 7, 2023
clarify and strengthen reporting and enforcement provisions of the Act. In general, prior to the disposition of surplus land, agencies must first hold a public meeting to declare the property as surplus land. After the meeting, agencies must send a written notice of availability to local public entities and certain housing sponsors of the availability of surplus land. Entities have sixty (60) days to respond. If a notice of interest is received by a proper entity, the agency and the entity will enter a 90 -day negotiation period. Once the negotiation period has ended, the agency may dispose of the surplus land. Should an agency dispose of the surplus land in violation of the Act, the agency shall be subject to penalties set forth in Government Code Section 54230.5.
An agency may be exempt from the provisions noted above if the property is determined to be "Exempt Surplus Land". To do so, the agency shall do the following:
1. Adopt a resolution declaring the property as exempt surplus land during a regularly held public meeting.
2. Prior to adoption, notify HCD to clarify whether land should be declared "surplus land" or "exempt surplus land."
3. If concurrence is received, proceed with the resolution process.
4. Once adopted, a copy of the resolution shall be provided to HCD a minimum of thirty (30) days prior to the disposition of the land.
Staff has notified HCD to determine if the properties along Baker Street qualifies as "Exempt Surplus Land" under the category: Land for Affordable housing.
Based on their initial review, HCD staff has indicated that as long the property is not located within the areas listed in Gov. Code section 54221(f)(2), such as adjacent to a historical unit of the State Parks System or determined by the State Office of Historic Preservation to be eligible for the National Register of Historic Places, then it appears the properties at 323, 307, 312 and 314 Baker Street would indeed qualify for the affordable housing exemption (Gov. Code Section 54221(f)(1)(F)(i)) if developed under the criteria listed in the statute. If that is the case, HCD does not see any need for changes to the resolution.
ENVIRONMENTAL (CEQA) REVIEW
Staff has determined that the proposed project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15194, Affordable Housing Exemption, which applies to projects that provide housing for low-income households, on a site that is Tess than five acres and located in an urbanized area. Therefore, no further environmental review is required.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
City Council/Successor Agency/ICDA Agenda
February 7, 2023
Prepared by: Reviewed and approved:
knn• • ega
As istant to the City Administrator/
Economic Development Manager
Reviewed and appro
Damien R. Arrula
City Administrator
Attachment:
Resolution R-2023-05
Joph M. 'Lambert
Director of Development Services