Public Works Agency
www.santa-ana.gov/pw
Item # 22
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
August 4, 2026
TOPIC: Appropriation Adjustment and Sale of Remnant Land at 2245 S. Main Street
AGENDA TITLE
Appropriation Adjustment and Agreement for the Sale of Land at 2245 S. Main Street (Project No. 13-6792) (Non-General Fund)
RECOMMENDED ACTION
1. Approve an appropriation adjustment recognizing $136,250 in revenue from the purchase and sale agreement into the Select Street Construction, Sale of Land revenue account (No. 05917002-57071) and appropriate it to the City Street Projects, Improvements Other Than Buildings expenditure account (No. 05917666-66220). (Requires five affirmative votes)
2. Approve an appropriation adjustment recognizing $408,750 in revenue from the purchase and sale agreement into Measure M-Street Construction, Expense Reimbursement-OCTA revenue account (03217002-57004). Receipt of Measure M-Street Construction proceeds will be disbursed to the Orange County Transportation Authority (OCTA) upon project final billing reconciliation. (Requires five affirmative votes)
3. Authorize the City Manager to execute a purchase and sale agreement with South Main Arwad LLC for the sale of City-owned property located at 2245 S.
Main Street (APN No. 403-141-08) in the amount of $545,000 (Agreement No. A- 2026-XXX).
4. Approve amendment to the Fiscal Year 2026-27 Capital Improvement Program to add $136,250 of Select Street Construction funds for the Bristol Street Phase 3A Project (No.13-6792).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Public Works Agency (PWA) maintains City-owned vacant lots that are remnant following capital improvements. During the course of Street Improvement Projects, the Public Works Agency (PWA) has acquired multiple properties for street widening
Appropriation Adjustment and Sale of Remnant Land at 2245 S. Main Street August 4, 2026
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purposes. The subject property at 2245 S. Main Street (APN 403-141-08) was acquired as part of the Warner Street Improvements from Main Street to Oak Street using Orange County Transportation Authority (OCTA) grant funding (Exhibit 1). The City has since completed widening improvements in this area and a remnant parcel remains.
The remnant parcel, measuring 7,490 square feet, remains unused and unneeded following the project’s construction and is ready to be sold in accordance with the requirements of the California Surplus Land Act (Government Code Section 54220).
On October 16, 2025, the City Council adopted Resolution No. 2025-045 declaring various City-owned properties as surplus land and directing the City Manager to comply with the requirements of the California Surplus Land Act. The subject property is among those declared surplus and, as a result, the City has since completed all statutory requirements and is authorized to proceed with direct negotiations for disposition of the property.
Following the completion of the Surplus Land Act process, staff issued a Letter of Availability to the adjacent property owner and potential buyer, Mr. Wansikehian, on February 5, 2026, outlining the terms and process for the potential disposition of the property. In response, Mr. Wansikehian submitted a purchase offer in the amount of $545,000 for the property (Exhibit 2).
The prospective buyer is the same owner that the City originally purchased the land from for the Warner project and currently owns the adjacent property located at 2239 S.
Main Street. He has indicated that the proposed intended use of the site would involve a lot merger with the adjacent parcel to accommodate a potential gasoline station or quick-service restaurant (QSR) development for this site.
Since the property was acquired using OCTA grant funds, in accordance with grant requirements, sale of proceeds of the remnant parcel must be returned to the grant and/or used for the project construction. The City is require to activate and report on the surplus land as part of the project’s final closeout reimbursement with OCTA. OCTA provided 75% of the funds for the acquisition of this parcel, and therefore 75% of the sale price, equal to $408,750, will be distributed back to OCTA per grant guidelines.
The remaining proceeds of $136,250, are proposed to be deposited into the City’s Select Street Construction Fund and distributed to the Bristol Street Improvements:
Civic Center to Washington (Project No. 13-6792) to continue supporting utility undergrounding efforts, including completion of the cabling and splicing scope for Crown Castle, Verizon, and Charter (Exhibit 3).
Staff recommends approval of the recommended actions to transfer ownership of this remnant vacant parcel to the adjacent property owner. Activating citywide vacant lots supports general plan goals by fostering community development and increasing tax revenue, while reducing blight and ongoing maintenance costs and liability, in alignment Appropriation Adjustment and Sale of Remnant Land at 2245 S. Main Street August 4, 2026
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with established municipal codes governing surplus property disposition.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Approval of the recommended Appropriation Adjustments will recognize receipt of $136,250 into the Select Street Construction, Sale of Land revenue account (No. 05917002-57071) and appropriate it to the City Street Projects, Improvements Other Than Buildings expenditure account (No. 05917666-66220), Project No. 13-6792. The remaining proceeds of $408,750 will be received in the Measure M Street Construction, Expense Reimbursement-OCTA revenue account (No. 03217002-57004) for disbursement to OCTA, consistent with grant acquisition funding requirements.
EXHIBIT(S)
1. Location Map
2. Purchase and Sale Agreement
3. CIP Amendment Sheet Project
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director of Public Works Agency Approved By: Alvaro Nuñez, City Manager