C
ity Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01096 June 28, 2022
Title: 490 and 492 Arden Way Exempt Surplus Property for Bridge Housing Affordable Housing Project
Location: 490 and 492 Arden Way, District 2
Recommendation: Adopt a Resolution: 1) declaring that the City-owned property located at 490 and 492 Arden Way as “exempt surplus land” pursuant to the California Surplus Land Act (Government Code Section 54220 et seq.) and 2) transferring the property to the State of California at no cost for public purposes, including the provision of affordable housing and community-services, pursuant to California Government Code section 54221(f)(1)(D).
Contact: Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected]; Michael Jasso, Assistant City Manager, (916) 808-5704, [email protected]
Presenter: Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected]; Michael Jasso, Assistant City Manager, (916) 808-5704, [email protected]
A
ttachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: The City of Sacramento owns two adjoining parcels totaling 0.14 acre of irregular shape that is developed with a 2,050 square foot single-story vacant commercial building, which was the former North Sacramento Chamber building. While at times this building was used by the community, the property has gone unused by the City for decades due to the age of the building, deferred maintenance, and required accessibility modifications. A recent physical needs assessment of the building in 2018 documented retrofit needs totaling at least $250,000 for office space and approximately $1,000,000 for community space. And so, the building and properties continue to be ignored and attract campers and nuisance activities to the site. Currently, the City pays for the bi-annual weed abatement of these properties and minor upkeep and security costs. According to a recent broker’s opinion of value, these parcels are valued at approximately $55,000 to $95,000 for the land, less the cost of demolition for the building, estimated at $25,000 to $65,000 to complete, which would result in a potential loss of $10,000 up to a $70,000 profit on the positive side. Annual cost estimates to the City for maintenance and weed abatement total approximately $5,000-$10,000 per year. The properties are highly underutilized, although challenging to use effectively on their own.
Historical preservation staff confirmed that the building is not historic and does not need to be retained but did note a desire for a plaque on the property to commemorate its previous use by the North Sacramento Chamber.
With the State’s identification of the Arden Armory site next door to these parcels as an excess site ripe for redevelopment as affordable housing, there is an opportunity to better utilize the City’s parcels and create public benefit in affordable housing and childcare services, both greatly needed community resources. Since the State would continue to hold ownership of the Arden Armory parcel with a long-term lease to the project, it makes most sense for the City to transfer its properties to the State if it elects to contribute these parcels to the project. Single ownership of the parcels being developed allows for construction across property lines.
Separate ownership would not allow for full utilization in this way.
While there has been some recent community interest in the City’s parcels for a non-residential use, entertaining that interest would require a full surplus land act process under state law, prioritizing affordable housing and residential proposals in accordance with state surplus act requirements. The recommended transfer in this report is exempt under state law as a transfer between public agencies.
Project Description
BRIDGE Housing Corporation is proposing to transform the vacant land and unoccupied buildings at 440 Arden Way into a vibrant new affordable family housing development. Current designs include 124 units, serving households who earn between 25% and 60% Area Median Income (AMI), with 25% of units designated as permanent supportive housing. The unit sizes will include a mix of one-, two-, and three-bedrooms. The ground floor of the building is planned to include a childcare center, retail space, and community room.
BRIDGE Housing Corporation is partnering with: Lutheran Social Services of Northern California (LSS) to provide a variety of services to support residents, Child Action Inc to find a local childcare provider for the childcare center, and the Del Paso Boulevard Business Partnership to help find a local business for the retail space. The building is being designed by LPAS Architecture + Design in collaboration with Holmes structural engineering and TriCorp Group general contracting. Building design, parking, and landscaping plans have been modified in response to neighborhood feedback in an effort to further compliment the surrounding area and reduce potential impacts.
BRIDGE introduced themselves to the Councilmember’s office in spring 2021 and has been meeting with the Councilmember’s office since January 2022 to discuss more project specifics.
BRIDGE has reached out to the community in four different meetings, starting with the Del Paso Partnership in January, the Woodlake Neighborhood Association in March, a community meeting in May and another in June. The state-approved project is consistent with city General Plan and zoning standards, while subject to the state entitlement process. While there are neighboring residents and businesses who are supportive of the project, there are some neighborhood concerns with the project as well. The majority of neighborhood concerns can be summarized in the following areas:
1) Parking- Based on concerns that residents of 440 Arden Way will overly rely on street parking along Woodlake Parks and within the neighborhood, BRIDGE is looking into all opportunities to increase the project’s parking ratio and better manage car and parking usage. BRIDGE is committed to adding at least 33 additional parking spaces for resident use, bringing the total to 100 spaces. To get to this commitment and respond to neighborhood concerns, BRIDGE’s steps include:
a. Working with Sacramento Regional Transit on overflow parking options for residents in nearby SacRT parking lots.
b. Changes to the first-floor design to reduce commercial space and accommodate additional parking.
c. Adding shared electric vehicle program and spaces within the project. d. Working with City Parking Management and Enforcement staff, who is also working with SacRT, to ensure proper and best use of the parking resources in the area, as well as City resources that could be used as well. City staff is committed to managing the parking in the area to minimize impacts amongst all parties.
2) Traffic- Based on community concerns regarding potential traffic and congestion at the intersection of Arden and Oxford, BRIDGE is committed to:
a. Performing a traffic study to better understand the traffic patterns and potential impacts of new residents.
b. Working with Sacramento Regional Transit and City to identify measures that could improve conditions for circulation and pedestrians, particularly for potential project funding applications.
3) Building Massing- Based on resident concerns regarding the visual impact of the proposed building, BRIDGE is investigating design options that could lessen the potential impacts. There are existing mature trees that limit impacts on the surrounding neighborhood. that BRIDGE is committed to maintaining all of these trees within the project.
4) Community Space- Based on resident requests for community space, BRIDGE is committing to ensure that the Woodland Neighborhood Association have access to the 440 Arden Way community room for its regular monthly association meetings.
Inclusion of the city parcels into this project allows for 20 affordable units and childcare space.
Policy Considerations: Given that the City of Sacramento has encountered feasibility challenges and costs with the use of this property and given that the State of California, with BRIDGE Housing, could develop 20 additional affordable housing units for families and childcare services space at this site in conjunction with the adjoining properties, staff is supportive of the exempt surplus and transfer to the state for this purpose at no cost.
Development of the BRIDGE Affordable Housing Project at the Arden Armory site and these adjoining parcels best utilizes these properties for transit-oriented development, provides for a more integrated community along and south of Arden Way, and also provides a community room and childcare services space for use by the surrounding neighborhood. Recent data shows that District 2 has approximately 10,000 children ages 0-4 and less than 2,500 licensed childcare slots in the district to meet this need. This service gap is requiring residents to find other options out of the area, use unlicensed care, or stay unemployed.
Development of affordable housing is a critical need in the City of Sacramento, particularly with recent increased demands on the housing stock and a 12 percent jump in the local Area Median Income due to Bay Area household relocations during the COVID pandemic. Many families are facing homelessness without affordable housing options like this one. A recent gaps analysis shows that at least 5,000 units of permanent supportive housing are currently needed countywide and the City’s Housing Element shows its Regional Housing Needs Allocation of over 16,700 affordable housing units needed to meet the needs of low, very low and extremely low income households through 2029.
Economic Impacts: Developing additional housing along the commercial corridors of Del Paso Boulevard and Arden Way is critical to the redevelopment and economic reinvestment of these areas. Having additional customers in close proximity to the Boulevard with expendable income, due to affordability of housing costs, will help provide additional revenue to surrounding businesses and will inspire private reinvestment along these corridors with additional housing and physical improvements.
Environmental Considerations:
California Environmental Quality Act: The declaration of surplus property is exempt from environmental review under CEQA Guidelines Section 15312, Surplus Government Property Sales, because the Property is not located in an area of statewide, regional or areawide concern; it does not have significant values for wildlife habitat; the use of the Property and adjacent property has not changed since the time of purchase; and the City does not approve development of the Property once it is State- owned.
Sustainability: Providing this property to the BRIDGE Affordable Housing project further utilizes city infill housing sites rather than expanding in greenfield areas and this project is transit-oriented development adjacent to a lightrail station and bus routes.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The City properties at 490 and 492 Arden Way have been languishing with little viable use by the City and more costs for keeping it and utilizing it.
Developing these parcels with the neighboring site is the best way to fully utilize the potential of these properties and its proximity to lightrail. Staff recommends declaring these parcels exempt surplus and initiating the process to transfer these parcels to the State for future development with the BRIDGE Affordable Housing Project.
Financial Considerations: Staff recommends declaring 490 and 492 Arden exempt surplus property. According to a recent broker’s opinion of value, these parcels are valued at approximately $55,000 to $95,000 for the land, less the cost of demolition for the building, which is $25,000 to $65,000 to complete. Annual cost to the City for maintenance and weed abatement total approximately $5,000 to $10,000 per year. Due to the age of the building and the small size of the parcels, use of this building would take notable investment, ranging from $250,000 to $1,000,000, depending upon use. With the neighboring community room and no pressing need for this property, the City can relieve the financial burdens of these properties while also providing community benefit. There will be no costs associated with the exempt surplus declaration and transfer. Provision of this asset to the affordable housing project will assist BRIDGE in leveraging additional state and federal resources to achieve development.
Local Business Enterprise (LBE): Not applicable.
Resolution No. 2022-
Adopted by the Sacramento City Council on June __, 2022
Declaring that the City-owned Property Located at 490 and 492 Arden Way in Sacramento, California is Exempt Surplus Land Being Transferred to the State of California for Purposes of
Affordable Housing and Related Services
BACKGROUND:
A. The City of Sacramento (“City”) owns the real property in fee simple located at 490 and 492 Arden Way in Sacramento, California, which is more specifically identified as Assessor’s Parcel Number s 275-0134-004 and 275-0134-005 (collectively, the “Property”). The Property has gone unused by the City for some time because of the age of the building, deferred maintenance, and required accessibility modifications. The Property is not historic and does not need to be retained by the City.
B. The Surplus Land Act (California Government Code sections 54220 through 54234) is generally intended to make a local agency's surplus land ( i.e., land not needed for the local agency's use) available for potential acquisition by affordable housing sponsors or other local public entities.
C. Before the City can dispose of the Property, the Property must be declared ‘surplus land’ or ‘exempt surplus land ,’ as supported by written findings, by formal action of the City Council at a regular public meeting ( Government Code section 54221(b)(1)).
D. Written findings supporting an exempt surplus land declaration must be provided to the California Department of Housing and Community Development (HCD) for review at least thirty (30) days before the C ity's disposition of the land pursuant to Section 400(e) of the HCD's Surplus Land Act Guidelines (SLA Guidelines) .
E. The State of California Department of Housing and Community Development (HCD), which is a "State agency" as defined in California Government Code section 54221(a)(1), seeks to acquire the Property to facilitate the construction and operation of public facilities that will create affordable housing.
F. If the City conveys the Property to the State of California for this public purpose, the Property will be exempt surplus land pursuant to California Government Code section 5422 1(f)(1)(D) because the C ity will be disposing of the Property by transferring it to the State of California Department of Housing and Community Development for the stated use.
G. Declaring the Property exempt surplus land, contingent upon the C ity's transfer of the Property to the S tate of California, does not require that the C ity convey the
Property to the State of California, nor does it require that such a transfer contain any specific term or condition.
H. A declaration that the Property is exempt surplus land is contingent upon the City's transfer of the Property to the State of California, and if for any reason the City does not convey the Property to the State of California, the City Council does not intend for this declaration to have any force or effect.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The above recitals are true, correct and are specifically inforporated in and made a substantive part of this Resolution.
Section 2. The City Council, with this action, declares that the Property is not necessary for the City’s use and is exempt surplus land pursuant to California Government Code section 54221(f)(1)(D).
Section 3. The City Council authorizes the City Manager, or the City Manager’s designee, to complete the necessary steps and accompanying documents to transfer the Property to the State of California at no cost and for the purposes of affordable housing and related services.
Section 4. Transfer of the 0.14-acre parcels at 490 and 492 Arden Way is in the best interest of the City under City Code section 3.88.090(A)(2).