DATE: DECEMBER 6, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, DIRECTOR
BY: MICHAEL GOMEZ, ECONOMIC DEVELOPMENT ANALYST
THROUGH: LISA BRINTON, ASSISTANT DIRECTOR
TITLE: RESOLUTION OF INTENTION TO SELL 128 SALINAS SREET RECOMMENDED MOTION:
A motion to approve the attached Resolution declaring the City Council’s intention to sell real property located at 128 Salinas Street, also known as Lot 10.
EXECUTIVE SUMMARY:
The City of Salinas is the owner of 128 Salinas Street, also known as Lot 10 (Assessor’s Parcel Number [APN] 002-248-011-000). The parcel is approximately 6,090 square feet and is currently used as a City Permit Parking lot offering a total of 11 parking stalls (the “Property”). In October 2020, the City Council declared the Property as surplus. Since no Letters of Interest from affordable housing developers were received in response to the City’s Notice of Availability, the City may now dispose of the Property following the process outlined in Chapter 12-11 of the Salinas Municipal Code. This Report and attached Resolution outline the process, terms, and conditions for the City to declare its intent to sell the Property and receive and evaluate responses.
BACKGROUND:
On October 27, 2020, following the requirements of the Surplus Lands Act, the City Council declared the Property surplus and staff sent out a Notice of Availability to all entities as 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.
Chapter 12 of the Salinas Municipal Code (SMC) 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. The first step is for Council adopt a Resolution declaring that the Property is no longer necessary for municipal purposes and declaring the intention to sell it. The Resolution must contain certain information defined by the SMC, 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.
DISCUSSION:
The process, terms, and conditions for the potential sale of the Property are provided below and are included in the attached Resolution.
The Property shall be defined as APN 002-248-011-000.
No minimum cash price is defined; however, any accepted offer must be approved by the Salinas City Council.
Responses shall comply with the following terms and conditions:
Responses shall be provided both electronically and via hard copy.
Responses shall include the following:
The name of the person(s) or organization desiring to acquire the Property.
A bid for the purchase price of the Property.
The proposed use of the Property, including a description of any community benefits from the proposed use; A Capital Improvement Plan detailing construction timeline and budget for work to be performed on the facility; An Operational Plan showing the ability to operate the facility following acquisition; and Financial Documents necessary to demonstrate the ability to purchase, improve, and operate the Property.
The highest priority will be given to responses that propose to develop the Property consistent with the Downtown Vibrancy Plan.
Staff shall have the authority to negotiate modifications to the terms of any responses received.
City staff shall make documentation relevant to the Property, including any title documents, appraisals, inspections, estimates, or other information staff deems pertinent, available to view on the City’s website.
Responses shall be turned in to the City Clerk’s Office no later than 4:00 pm on December 22, 2022. Responses shall be provided in a sealed envelope. Staff shall open and review these responses and may contact respondents to obtain additional information or to negotiate more specific terms. Responses may be modified by respondents subsequent to their submittal, but no additional responses will be considered.
The City Clerk shall cause to be placed a Notice of Adoption of this Resolution in a newspaper of general circulation within the city no later than December 9, 2022.
Staff will review and evaluate proposals received and will work with those submitting proposals to negotiate specific terms for the purchase and sale of the property. Evaluation of submittals will be based on the criteria identified in the City of Salinas Downtown Vibrancy Plan, as well as proposed prices and terms. Staff will return to City Council with a summary of responses received and a recommendation of final price, terms, and conditions for Council consideration.
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:
While the action of declaring the intent to sell the Property does not directly address any of the Council’s Goals, future development of the Property with mixed-uses could support the City Council Goals of Economic Development and Housing/Affordable Housing.
DEPARTMENTAL COORDINATION:
The Economic Development Division has consulted with the Community Development and Legal Departments in the preparation of this item.
FISCAL AND SUSTAINABILITY IMPACT:
The action of declaring the intent to sell the Property does not have any fiscal impact. Future purchase and sale of the Property would result in one-time revenue to the General Fund. Future development of the Property would result in increased property tax revenue and could also bring increased sales tax revenue to the City depending on developed uses.
ATTACHMENTS:
Resolution of Intent to Sell 128 Salinas Street
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