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Attachment B - SLA Notice of Availability_Cover Letter (DRAFT)

Santa Monica City Council
October 11, 2022

Document
Attachment B - SLA Notice of Availability_Cover Letter (DRAFT)
Meeting
October 11, 2022
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Santa Monica City Council
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3
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116 KB
Text extracted from the city's file for reading and search. Open the original on santamonicacityca.iqm2.com. That file is the official record.
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Economic Development Division
1685 Main Street, Mail Stop 12
Santa Monica, CA 90405
tel (310) 458-2201
Date --- 2022
To All Interested Parties:

RE: Notice of Availability/Offer to Lease Surplus Property In 2019, the State took several actions to make public lands available for affordable housing development, including modifications to the Surplus Land Act. The Surplus Land Act requires that prior to the disposition of land, unless an exemption applies, cities must provide notice to affordable housing developers, and in some cases public agencies that operate open space lands, that a property is potentially available for development. The Notice of Availability describes the location, land use and zoning designations, conditions of the property, and any development constraints that impact the property.

Within the Act, surplus land is defined as property no longer needed for an agency’s direct use. Additionally, the new Surplus Land Act regulations expanded the definition of disposition to include leases of City-owned property.

As required by Government Code Section 54220 of the State of California, the City of Santa Monica is providing notification that the City Council of the City of Santa Monica has determined that properties located at 1855 Main Street (APN 4290-013-901) and 1636 5th Street (APN 4290-011-906, 4290-011-905, 4290-011-904, 4290-011-903 and 4290-011-909), are no longer required for municipal purposes and has declared by resolution that these properties are eligible as surplus. The subject property at 1855 Main Street has a current land use designation of Institutional/Public Lands/Open Space, and a Zoning classification of Civic and Recreational. Allowed uses include the following:
those that are recreational in nature including cultural, sports and community/civic uses.

The subject properties at 1636 5th Street have a current land use designation of Downtown Core Commercial, and Zoning classification of Transit Adjacent. Allowed uses include the following: transit-oriented developments with office and residential. 1855 Main Street (Civic Auditorium Building); APN: 4290-013-901; Size: 3.7 acres The Civic Auditorium is largely in its original condition as constructed in 1958. Zoned as a recreational use under the City’s Civic Center Specific Plan, the Civic Auditorium is comprised of 27,000 square feet on the main floor with a capacity for up to 3,000 seated and 3,500 standing. The East Wing of the Civic Auditorium also provides 4,189 square feet and seating capacity of 500. In 2002, the City designated the Civic Auditorium as a City landmark to preserve key historic features such as the exterior façade and certain interior design elements such as the configuration of the lobby, the two original

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staircases, the volume of the Main Hall space and several other elements noted in the landmark designation.

The Civic Auditorium needs significant seismic improvements and ADA upgrades. Due to lack of funding to make these improvements, the Civic Auditorium formally closed on June 30, 2013. Until 2020, the East Wing was used periodically to host community meetings, filming and staging but fully shuttered prior to COVID due to lack of budget and staffing. This is interested in long-term leasing of the existing Civic Auditorium and East Wing with a tenant who is able to finance the seismic and ADA upgrades for these buildings along with interior tenant improvement upgrades. 1635 5th Street; APNs: 4290-011-903, 4290-011-904, 4290-011-905; 4290-011-905; Size: 0.52 acres
The parcels associated with 1635 5th Street are located within the City’s Transit Adjacent Zone, which roughly covers the area within a two-and-a-half-block radius from the Light Rail Station at the intersection of 4th Street and Colorado Avenue.

At its meeting on March 23, 2021, Council adopted a resolution to declare the City-owned property at 1635 5th Street (Apple Building) as surplus land. The 4-story office building is comprised of 17,000 square feet of space over three floors, including two levels of gated parking (43 spaces) on ground level and subterranean. It is currently vacant and requires ADA and Building Code upgrades. Parking Lot 29, which is adjacent to the Apple Building, is a City-operated surface parking lot and has an existing license agreement with EVgo Services, LLC (“EVgo”) for 12 electrical vehicle charging stations. The Agreement is for a 10-year term that will expire on July 13, 2031. There are currently no immediate plans for a longstanding redevelopment project at the Apple Building and Parking Lot 29 due to lack of funding, however, the City may pursue short-term interim uses until a viable longterm redevelopment opportunity is available.

Expo Line Parking Lot; APN:4290-011-909; Size: 1.09 acres This property was acquired along with the purchase of the Apple Building and Parking Lot 29 parcels as part of a land assemblage to facilitate the construction of Expo Terminus Station. This parcel is located behind the Apple Building and fronts on 4th Street. Several of the parcels acquired by the City’s former Redevelopment Agency were sold to Metropolitan Transportation Authority (MTA). The City retained the Expo Line Parking lot parcel to facilitate future transit-oriented development opportunities prioritizing affordable housing. As stated for the Apple Building and Parking Lot 29 there are currently no immediate plans to redevelop this property. The site currently operates as a “Kiss + Ride” drop-off and pick-up location for transit riders. The site is currently underutilized as a transit amenity due to location and redevelopment plans are on hold due to lack of funding. The City may pursue short-term interim uses until a viable long-term redevelopment opportunity is available.

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In accordance with Government Code Section 54222, you have sixty (60) days from the date this offer was sent via certified mail or electronic mail to notify the City your interest in leasing the property. However, this offer shall not obligate the City to lease the property to you. Instead, the City would enter into at least ninety (90) days of negotiations with you pursuant to Government Code Section 54223. If no agreement is reached on lease terms, the City may market the property to the general public.

As required by Government Code Section 54227, if the City receives more than one letter of interest during this 60-day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level.

Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Section 54220-54234). In the event your agency or company is interested in purchasing or leasing the City-owned properties for an authorized purpose under the Act, you must notify the City of your interest within sixty (60) days of the date this Notice of Availability has been sent. Written notice must be sent, if at all, to, and must be received by Ms. Nia Tang within said 60-day period at the following address:

Ms. Nia Tang, Senior Development Analyst
Community Development Department, Economic Development Division 1685 Main Steet, Mail Stop 12
Santa Monica, CA 90401
[email protected]
310.458.2201
The receipt of an email or notice by regular mail by way of the United States Postal Service is acceptable. If by regular mail, we suggest that you sent it via certified mail with return receipt requested.

If you have any questions regarding the development sites, you may contact Ms. Nia Tang at the email or telephone referenced above.

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