Community Development Agency
www.santa-ana.org/community-development
Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
February 17, 2026
TOPIC: Public Hearing - Purchase and Sale Agreement for 1901 W. Walnut St.
AGENDA TITLE
Public Hearing - Purchase and Sale Agreement for 1901 W. Walnut Street Legal notice published in the OC Reporter on February 2, 2026.
RECOMMENDED ACTION
1. Conduct a Public Hearing required pursuant to California Government Code 53083.
2. Authorize the City Manager to execute a Purchase and Sale Agreement with THRIVE Santa Ana, Inc. for the sale of City-owned Real property at 1901 W. Walnut Street (APN 007-332-08), in the amount of $852,000 (Agreement No. A-2026-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The City-owned property located at 1901 W. Walnut Street (APN 007-332-08) is a
0.38-acre parcel that was acquired in 2007. Previously occupied by the Orange County Rescue Mission, the existing structure was demolished in 2011, and the site remained vacant for more than a decade.
On March 3, 2020, the City Council approved a Disposition and Development Agreement (DDA) and a ninety-nine (99) year ground lease with THRIVE Santa Ana, Inc. for the development and operation of a community microfarm located at 1901 W.
Walnut Street. Established in 2017, THRIVE Santa Ana is a Community Land Trust (CLT) founded by nonprofit leaders and local residents with the purpose of acquiring and stewarding vacant city-owned properties to provide long-term community benefits.
The CLT model supports the development of affordable housing, parks, urban micro farms, and marketplaces for small businesses. Properties acquired by the CLT are managed in partnership with local residents to identify and address community needs while ensuring sustained public benefit.
A Community Benefits Report developed by THRIVE outlined the anticipated positive impacts of the project, which included:
Purchase and Sale Agreement for 1901 W. Walnut St.
February 17, 2026
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Establishment of a micro-farm as an economic development initiative. Creation of employment opportunities and organic produce production. Promotion of a worker cooperative model encouraging resident participation in the local neighborhood economy.
Enhancement of civic engagement and healthy living.
Since execution of the DDA, THRIVE Santa Ana, Inc. has completed the development of a community microform called La Colmena. La Colmena features a regenerative farm, a café, artisan retail space, and gathering areas for markets and events. Operated under the principles of a Community Land Trust, La Colmena promotes local food access, small business development, and community engagement, serving as a model for sustainable, resident-driven land stewardship in Santa Ana.
The operation of a community micro-farm is consistent with the definition of a “Plant Nursery,” which is an allowed use in the Community Commercial (C-1) zoning district.
The subject property is located within the Community Commercial (C-2) zoning district, which allows additional uses permitted in the C-1 district pursuant to Section 41-377(a) of the Santa Ana Municipal Code. Accordingly, the micro-farm use is consistent with the applicable zoning regulations (Exhibit 5).
The ground lease with THRIVE Santa Ana, Inc. granted the organization the exclusive option to purchase the property at a gross sales price equivalent to the negotiated fair market value, as determined through an appraisal. To initiate the option, THRIVE was required to submit a Letter of Intent (Exhibit 1) and a deposit of $5,000, which would be applied toward the cost of the appraisal. After being informed of this valuation, THRIVE noted that its State grant allows for a maximum acquisition amount of $852,000 and requested that the City consider providing a donation or subsidy for the difference (Exhibit 3). Staff informed THRIVE that any sale below fair market value would require preparation of an economic subsidy report for City Council approval.
On July 16, 2019, the City Council approved a zoning map amendment for the subject site and properties, rezoning the subject site as General Commercial (C2). Concurrent with this rezoning and in accordance with the California Environmental Quality Act (CEQA), a Mitigated Negative Declaration (MND) (Environmental Review No. 2017-140) with technical studies was prepared for the rezoning. No areas of unavoidable impacts were identified as resulting from the construction or operation of the proposed project.
Purchase and Sale Agreement
On October 17, 2025, THRIVE submitted a Letter of Intent to the City requesting consideration for the purchase of the property. The Community Development Agency (CDA) received an independent appraisal report (Exhibit 2) dated November 11, 2025 that established the fair market value of the property at $1,030,000. On December 3, THRIVE submitted a revised letter (Exhibit 3) requesting an economic subsidy of $178,000, representing the difference between the property’s appraised fair market value and the state grant funds available for its purchase.
Purchase and Sale Agreement for 1901 W. Walnut St.
February 17, 2026
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Pursuant to Government Code Section 65402, the Planning and Building Agency reviewed the proposed Purchase and Sale Agreement for the City-owned property located at 1901 W. Walnut Street (APN 007-332-08). As documented in the General Plan Conformance Memorandum dated January 21, 2026, the Planning Agency determined that the sale of the property is in conformance with the City of Santa Ana’s 2022 General Plan (Exhibit 5).
Approval of the Purchase and Sale Agreement (Exhibit 6) will finalize the City’s partnership with THRIVE Santa Ana, Inc. and enable the successful implementation of a community-led micro-farm project that advances local economic opportunities, public health, and neighborhood engagement.
Surplus Land Act Compliance
Government Code Section 54221(f)(1)(B) provides that the term “surplus land” does not include: “Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.”
Based on this definition, if the subject property is less than one-half acre in size and is not contiguous to any state or local agency-owned land used for such purposes, it qualifies for the Small Lot Exemption.
In December 2025, the City received written confirmation (Exhibit 7) from the State’s Department of Housing and Community Development (HCD) that the property located at 1901 W. Walnut Street meets these criteria, being less than one-half acre in area and not adjoining any qualifying state or local agency parcels, and therefore qualifies for the Small Lot Exemption under the Surplus Land Act. As a result, the City’s surplus land exemption requirements have been satisfied through this action, and no City Council resolution is required.
Economic Development Subsidy
Government Code Section 53083 requires that the City Council must hold a noticed public hearing and, prior to the public hearing, provide information to the public through the City’s website regarding the proposed economic development subsidy. As part of the approval process, an Economic Development Subsidy Report (Exhibit 4) must be completed and submitted detailing the structure of the public subsidy, projected tax benefits, and estimated number of jobs that would be created by the subsidy. This report shall remain available to the public and posted on the City’s website until the end date of the economic development subsidy.
FISCAL IMPACT
Funds in the amount of $852,000 will be deposited into the Miscellaneous Revenue Sale of Land account (no. 01102002-57071).
Purchase and Sale Agreement for 1901 W. Walnut St.
February 17, 2026
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Fiscal
Year
Accounting Unit
– Account #
Fund
Description
Accounting Unit,
Account Description
Amount
FY 25-26 01102002-57071 General Fund Miscellaneous
Revenue, Sale of Land
$852,000
Total $852,000
EXHIBIT(S)
1. Letter of Intent
2. Appraisal Report
3. Request Letter from Thrive for Purchase Price Subsidy
4. Economic Development Subsidy Report
5. General Plan Conformance
6. Purchase and Sale Agreement
7. HCD Exemption Letter
8. Proof of Publication
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager