CITY OF POMONA
COUNCIL REPORT
March 7, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Kirk Pelser, Deputy City Manager
SUBJECT: DECLARATION OF A CITY OWNED PARKING LOT (VEHICLE PARKING DISTRICT LOT 2), ASSESSOR’S PARCEL NUMBER 8336-021-901, AS “SURPLUS LAND” PURSUANT TO GOVERNMENT CODE SECTION 54220 et. seq. (“SLA”); APPROVING A FORM OF NOTICE OF AVAILABILITY; AND AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS IN COMPLIANCE WITH THE SLA.
RECOMMENDATION:
It is recommended that the City Council adopt the following Resolution No. 2022-28 (Attachment No. 1):
RESOLUTION NO. 2022-28 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, DECLARING THAT A CITY OWNED PUBLIC PARKING LOT KNOWN AS VEHICLE PARKING DISTRICT LOT 2 (ASSESOR’S PARCEL NUMBER 8336-021-901) AS “SURPLUS LAND” PURSUANT TO THE SURPLUS LAND ACT, GOVERNMENT CODE SECTION 54220 ET SEQ.; APPROVING FORM OF NOTICE OF AVAILABILITY; AND AUTHORIZING THE CITY MANAGER AND HIS DESIGNEE(S) TO TAKE ALL ACTIONS NECESSARY TO COMPLY WITH THE SURPLUS LAND ACT EXECUTIVE SUMMARY:
The City of Pomona owns a Vehicle Parking District (VPD) parking lot (Lot 2) that is no longer necessary for the City’s/VPD use. It is, and has been, under-utilized and mostly vacant for more than five years. Since it is seldom used it has become a maintenance and cost liability to the City. Additionally, retaining ownership of the lot precludes the property from being developed to its highest and best use.
FISCAL IMPACT:
There is no fiscal impact in formally declaring VPD Lot 2 as surplus land or to release a Notice of Availability (NOA).
DISCUSSION:
The City currently owns and operates 25 Vehicle Parking District parking lots throughout the Downtown. The District was created between 1951 and 1958, as separate districts and later amended and combined. The District was created to provide equitable and adequate parking to all Downtown businesses, property owners and stakeholders. Since its inception, the character, land uses, boundaries and businesses in the area have changed and/or evolved. Businesses and land uses in certain areas of the Downtown that once required public parking no longer exist, uses have changed, or businesses provide their own private parking. VPD Lot 2 located on Center Street just east of Garey Avenue is one such lot. It has been underutilized and often vacant for several years. Under-utilization, maintenance and operational cost as well as other liability issues makes it cost prohibitive to retain ownership of VPD Lot 2 for public parking.
Effective January 1, 2020, Assembly Bill (AB) No. 1486 amended the California Surplus Land Act (Government Code section 54220 et seq.) (SLA) requiring local agencies to formally declare publicly owned property no longer necessary for the local agency’s use as surplus land before beginning any disposition process. The declaration must be made by the local agency’s legislative body at a public meeting supported by written findings. The intent of the AB 1486 is to address the State’s lack of affordable housing by granting affordable housing developers and certain designated public entities a “right of first refusal” on most local agency real property designated for disposal.
Adoption of the attached resolution will accomplish the first step towards the disposition of VPD Lot 2. Several steps must be taken towards the disposition of the site starting with the preparation and issuance of a statutory “Notice of Availability” (“NOA”) a form of which is attached to the resolution as Exhibit “A.”. The notice declaring availability of the land must be provided to certain specific public and private “Eligible Entities” including housing sponsors on the State’s Department of Housing and Community Development (HCD) list that the property is available for sale. Written responses to the NOA must be provided to the City within 60-days of receiving the NOA. If the City receives timely and qualified notices of interest from any Eligible Entities, the SLA mandates a 90-day negotiation period with the entities. If no notices of interests are received within the 60-day noticing period, or good faith negotiations do not result in disposition terms within the 90-day period, the City must then submit a package showing compliance with the SLA to HCD, including a form of restrictive covenant requiring that if 10 or more residential units are ever built on the property, at least 15% of those units must be affordable (the “Affordability Covenant”). HCD will then have 30 days to review and determine whether the City is in compliance or not. If so, HCD will issue an approval letter, and the City may then begin procedures to allow the property to be sold for purposes other than affordable housing, subject to recording of the Affordability Covenant. The SLA, under sections 54221(a) and 54222, states that whenever a local agency sells or leases its surplus property, the SLA requires that the agency prioritize affordable housing and other vital state purposes. The SLA defines surplus land as “land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is “surplus” and not necessary for the agency’s use”. This declaration is required to be supported by written findings. Additionally, AB 1486 amends the SLA by prohibiting local agencies from negotiating land sales and leases of surplus land prior to sending out “Notices of Availability” to designated entities which must including the following:
California Department of Housing and Community Development (HCD) Local public entities within the jurisdiction where the surplus land is located.
Developers who have notified HCD of their interest in developing affordable housing on surplus land.
The following is a summary of the steps that must be taken to declare public surplus and its disposition:
The Legislative body makes declaration of surplus land based on written findings.
The local agency (City) issues a “Notice of Availability” (NOA) to eligible entities.
Eligible entities must respond to the City within 60 days of receiving the NOA by submitting a “Notice of Interest” (NOI).
If provisions for the disposition of the surplus land cannot be reached within 90 days of the end of the 60-day NOA period, the City and entity may elect to continue negotiations or terminate discussions.
If no qualified NOIs are received after the 60-day NOA period or the City does not come to terms with any NOI submitter after negotiating in good faith for 90 days, the City must submit a package showing compliance with the SLA to HCD, including a form of Affordability Covenant (defined above).
At a minimum, the following documents must be submitted to HCD.
Council resolution declaring land surplus;
NOA that was issued + covering email showing recipients; Receipts of certified mail to NOA recipients the City did not have email addresses for; Description of negotiations (if applicable); and
Form of Affordability Covenant.
HCD will then have 30 days to review the package and determine whether the City is in compliance or not.
Based the current condition of the subject property, staff is recommending declaring VPD Lot 2 as surplus. The purpose of the attached Resolution is to formally declare the subject property to be surplus land in compliance with the State’s Surplus Land Act.
ENVIRONMENTAL ANALYSIS:
The proposed action is not subject to CEQA. Declaring the subject property surplus is in compliance with statutory requirement and is not part of a project that has been identified, negotiated, designed or funded. The recommend City Council action should not be interpreted as an approval or a pre-commitment to approve, now or in the future the disposition of the City’s interest in the subject property to any party on any particular term, or for any particular purpose. Any proposed disposition of the subject property whether made pursuant to the NOA or otherwise will require future discretionary action of the City Council. As such, the recommended action to the City Council will not result in a direct or indirect physical change in the environment and does not in and of itself constitute a project pursuant to CEQA guidelines Section 15378.
Prepared by:
_____________________________
Kirk Pelser
Deputy City Manager
ATTACHMENTS:
Attachment No. 1 – Resolution No 2022-28 with Exhibit A – Notice of Availability Attachment No. 2 – Subject Site Aerial
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65318.50901\34784169.1
65318.50901\34784169.1
65318.50901\34784169.1
Resolution Declaring VPD Lot 2 as Surplus Land