CITY OF POMONA
COUNCIL REPORT
April 3, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Kirk Pelser, Deputy City Manager
SUBJECT: APPROVAL OF A REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS FOR SALE 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”) RECOMMENDATION:
It is recommended that the City Council adopt the following Resolution No. 2023-55 (Attachment No. 1):
RESOLUTION NO. 2023-55 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING THE EXECUTION OF A PURCHASE AND SALE AGREEMENT WITH PATTI MAHAFFEY TRUST FOR THE SALE OF CERTAIN REAL PROPERTY CONSISTING OF A CITY OWNED PUBLIC PARKING LOT KNOWN AS VEHICLE PARKING DISTRICT LOT 2 (ASSESSOR’S PARCEL NUMBER 8336-021-901) AND FINDING SAID ACTION CATEGORICALLY EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT REVIEW EXECUTIVE SUMMARY:
The City of Pomona owns a Vehicle Parking District (VPD) parking lot (Lot 2) (Attachment No. 4) that is no longer necessary for the City’s/VPD use. It has been under-utilized and mostly vacant for more than ten 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. 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. On March 7, 2022, the City Council passed and approved Resolution No. 2022-28 (Attachment No. 2), declaring the Property as surplus land in accordance with the SLA requirements. The California Department of Housing and Community Development (HCD) has reviewed and approved the City’s submission to sell the property under the SLA (Attachment No. 3).
FISCAL IMPACT:
Sale of the VPD Lot 2 will generate proceeds of $835,000 less normal transaction fees for title and escrow. The net proceeds will be deposited into the VPD’s sale of land account No. 230-9200-40404-00000.
BACKGROUND & 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.
In 2019, Assembly Bill No. 1486 was adopted, which amended certain sections of the Surplus Land Act relating to the sale of surplus property. Such amendments went into effect on January 1, 2020. 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 then has have 30 days to review the package and determine whether the City is in compliance or not.
The City has successfully completed this process outlined above and HCD has issued their decision letter (Attachment No. 3) determining that the City is in compliance with the provisions of the SLA.
ENVIRONMENTAL ANALYSIS:
Approval of the sale is not a project under CEQA pursuant to State CEQA Guidelines section 15004(2)(A), which authorizes agencies to enter into land acquisition agreements prior to the completion of environmental review so long as the future use of the site is conditioned on future CEQA compliance. Specifically, approving the PSA is not a project under CEQA because: (1) it does not authorize any actions which may directly or indirectly impact the environment; (2) the PSA would not commit the City to the approval of any future development; and (3) the City has and will make any future development subject to appropriate review under CEQA, as required by this Resolution.
Furthermore, the City Council finds that approving the sale is exempt from further environmental review pursuant to State CEQA Guidelines, sections 15060(c)(2) and 15061(b)(3), because it can be seen with certainty that approving the sale will merely result in transferring ownership of the Property, and there is no possibility that there will be a significant effect on the environment. None of the exceptions to this categorical exemption applies, and consequently, this action is exempt from further CEQA review.
Prepared by:
_____________________________
Kirk Pelser
Deputy City Manager
ATTACHMENTS:
Attachment No. 1 – Resolution No 2023-55 with Exhibit A Attachment No. 2 – Resolution No 2022-28 (adopted 3/7/22) Attachment No. 3 – HCD Determination Letter
Attachment No. 4 - Subject Site Aerial
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65318.50901\34784169.1
Sale of VPD Lot 2 as Surplus Land