City Council Staff Report - Resolution of Intent to Sell - 215 Lincoln Ave

DATE: JUNE 14, 2022
DEPARTMENT: OFFICE OF THE CITY MANAGER
FROM: ANDREW MYRICK, SR ECONOMIC DEVELOPMENT MGR
TITLE: RESOLUTION OF INTENT TO SELL 215 LINCOLN AVENUE RECOMMENDED MOTION:

A motion to approve the attached Resolution declaring the intention of the Council to sell the real property located at 215 Lincoln Avenue.

RECOMMENDATION:

Staff recommends that Council approve the attached Resolution.

BACKGROUND:

The City of Salinas is the owner of 215 Lincoln Avenue, also known as the Salinas Women’s Club Building (Assessor’s Parcel Number [APN] 002-244-002-000). The parcel is approximately 4,675 square feet, while the two-story building is approximately 5,854 square feet in size and effectively occupies the entirety of the parcel. The majority of the building is dominated by an auditorium and stage; the building also includes two smaller rooms, a kitchen, and several bathrooms, dressing rooms, and storage areas of various sizes. Construction of the building was originally completed in 1923. The building is in fair to poor condition – in 2013 total repairs were estimated to cost approximately $700,000, a number which is likely significantly higher now. Prior work on the property has identified the presence of asbestos and lead paint. It is unclear how compliant the building is with Americans with Disabilities Act (ADA) requirements. In 2018 the building was re-roofed and the exterior painted.

For many years after it was first constructed, the Salinas Women’s Club operated it as a clubhouse and civic gathering space. The property was later acquired by the Salinas Redevelopment Agency.

Upon dissolution of California’s Redevelopment Agencies in 2011, the Agencies were required to dispose of all properties owned by them. The property was transferred to the City of Salians for “continued governmental use.” However, the California Department of Finance did not concur that the use of the building met the qualifications to be considered as “governmental use,” and therefore required that the property be included in a Long-Range Property Management Plan (LRPMP) and be marked for disposal by the City.

The LRPMP places limitations on what the City may do with the property. As per the LRPMP, the “ultimate use of the property would be to preserve it and restore it, and re-establish it as a community and/or arts center.” The LRPMP further requires the City to either lease or, failing that, sell the building, with “a priority to preserve the building and re-establish its civic value.” A copy of Pages 5-7 of the LRPMP, detailing the required treatment of the property, is attached to this Report.

Chapter 12 of the City Code requires that, unless an exception is met, any sale of property owned by the City must go through the process defined in City Code Section 12-11. This requires that the Council adopt a Resolution declaring that the property is no longer necessary for municipal purposes and declaring the intention of the council to sell it. The Resolution must contain certain information defined by the Code, including the property location, minimum acceptable cash price, terms and conditions, and the time and place such proposals will be received. A notice must also be published in a newspaper of general circulation. The attached proposed Resolution includes terms and conditions for the potential sale of the property so that the City complies with the terms of the LRPMP.

Staff will review and evaluate proposals received and will work with those submitting proposals to identify specific terms for the sale or lease of the property. The evaluation will focus on the criteria identified in the LRPMP, as well as proposed compensation. Prior to the final approval of any sale of the property, the Salinas Oversight Board will need to approve the terms of the sale. The Salinas Oversight Board is made up of representatives from the other “taxing entities” – the County of Monterey, school districts, and other special districts – which are entitled to a share of the proceeds of the sale of this property. While the exact amount that the City would receive has not yet been determined, it is likely to be approximately 12-18% of the total purchase price plus possible cost recovery for past expenditures, with the remainder to be divided among the other taxing entities. Approval of both the City Council and Oversight Board is necessary for any sale of the property.

With regards to the Surplus Lands Act, the City Council previously (October 27, 2020) declared the property Surplus Property and staff sent out a Notice of Availability to all entities required by the Surplus Lands Act. No Letters of Interest to acquire the property for affordable housing were received; therefore, the City is allowed to dispose of the property as it deems appropriate.

CEQA CONSIDERATION:

The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

STRATEGIC PLAN INITIATIVE:

This item does not directly address any of the Council’s Goals – however, the action could result in finding a new owner or tenant for the building that would establish a new use consistent with one or more the Council’s Goals, depending on the particular use proposed.

DEPARTMENTAL COORDINATION:

The Economic Development Division has consulted with the Community Development and Legal Departments in the creation of this item.

FISCAL AND SUSTAINABILITY IMPACT:

Given the condition of the building, it is unlikely that any revenues gained from the lease or sale of the property would be significant. Further, any sale would need to be divided among the taxing authorities. Therefore, although any financial impact from the lease or sale of the property would likely be positive, it is unlikely that it would be significant.

Salinas City CouncilJune 14, 2022

Salinas City Council
June 14, 2022