City Council
Report
City Council Meeting: April 25, 2023
Agenda Item: 14.A
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Adoption of Resolution Declaring Surplus Properties Recommended Action
Staff recommends that the City Council:
1. Declare the City-owned properties located at 1444 7th Street (“Former Fire Station 1” - APN 4291-020-900), 1654 19th Street ((“City TV” - APN 4290-026- 009) and two remnant parcels associated with the Expo Lot (APNs 4290-011- 901 and 4290-011-902) as “surplus land” in accordance with the State of California’s Surplus Land Act (“SLA”);
2. Adopt a Resolution declaring the City-owned properties at 1444 7th Street (APN 4291-020-900), 1654 19th Street (APN 4290-026-009) and Expo Lot Parcels (4290-011-901 and 4290-011-902) as surplus lands, and authorize the City Manager or designee to take implementing actions necessary to comply with the SLA; and,
3. Adopt a finding of no possibility of significant effect on the environment pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
Summary
California Government Code Sections 54220-54234, known as the Surplus Land Act, (SLA) requires the City to follow certain procedures prior to engaging in negotiations to sell or lease land for a period greater than five years, even in circumstances where the City maintains long-term fee simple ownership of the property. The attached Resolution declares City-owned properties at 1444 7
th Street (APN 4291-020-900), 1654 19th Street
(APN 4290-026-009) and the two remnant parcels associated with the Expo Lot (APNs 4290-011-901 and 4290-011-902) as “surplus land”, as defined by California Government Code 54221(b). This process is necessary for the City to consider 2 of 6
proposals that do not meet the definition of Exempt Surplus Land, as defined by California Government Code 54221(f).
Discussion
The Surplus Land Act governs the sale or lease of land owned by various local agencies, including cities, and prescribes certain procedures that must be followed before disposition can occur. Specifically, the SLA requires that the City first declare the properties in this report to be "surplus lands" and then send a notice of availability to entities designated in the SLA. The entities have a period of 60 days to respond. If the City receives a notice of interest from a designated entity, the City must negotiate in good faith for a period of not less than 90 days. The SLA does not prevent a local agency from obtaining fair market value for the disposition of surplus land. The City may reject proposals from designated entities when the parties cannot agree on sales price or lease terms or when the interested entity is not responsive to the agency's conditions or restrictions in the notice of availability, provided such conditions or restrictions have been reviewed, in advance, pursuant to SLA guidelines by the California Department of Housing and Community Development.
The City has a long history of redeveloping and activating its properties for community serving uses and affordable housing. For example, Council at its meeting on March 23, 2021, declared the City-owned property at 1318-1320 4th Street (formerly Parking Structure 3) as “exempt surplus” for affordable housing. On October 11, 2022, Council declared the following properties as “surplus land”:
• 1855 Main Street (“Civic Auditorium” - APN 4290-013-901) • 1635 5th Street (“Apple Building” – APN 4290-011-906) • 1636 5th Street (“Parking Lot 29” - APNs 4290-011-903, 4290-011-904, 4290- 011-905) Expo Line Kiss & Ride Lot (APN 4290-011-909)
The Notice of Availability for these properties were prioritized and noticed to all the affordable housing developers registered with HCD. On March 14, 2023, consistent 3 of 6
with the goals of the SLA and the City’s adopted and certified 2021-2029 Housing Element, Council declared the three City-owned properties as “exempt surplus”:
• 1217 Euclid Street (APN 4282-004-900)
• 1211-1217 14th Street (APN 4282-003-900 and -901)
• 1146 16th Street (APN 428-1005-900)
These three properties were identified as suitable to accommodate a portion of the City’s share of regional housing need for lower income households and will be developed as 100% affordable housing. As the City continues to evaluate its assets for additional opportunities, City staff has identified the following City-owned properties as no longer needed for municipal purposes and eligible for declaration as surplus lands. 1444 7th Street (Former Fire Station 1); APN: 4290-020-900; Size: 0.34 acres This property was built in the 1950’s and formerly operated as the City’s Fire Station 1, the City’s oldest fire station before the new Fire Station 1 on 1337 7th Street was completed in 2020. The former Fire Station 1 contains 14,994 square feet of land located on the west side of 7th Street between Santa Monica Boulevard and Broadway.
The property currently functions as equipment and vehicle storage for the City’s Promenade Maintenance Division and The People’s Concern. This summer it is also anticipated that the property will provide a small workspace (for up to 3 people) and parking for the LA County Department of Mental Health Team and therapeutic transport van. In the event the City receives offers to purchase or lease this opportunity site, the City would evaluate options to relocate the interim uses within the Downtown Santa Monica district. The zoning for this property is Neighborhood Village which provides a development standard of 4.0 FAR and building height up to 84 feet. Housing developments with 100% affordable units in this zone could receive an additional .5 FAR and 10’ in height.
1654 19th Street (City TV Building); APN 4290-026-009; Size 0.18 acres Located mid-block between Olympic Boulevard and Colorado Avenue, the City TV Building (4,700 square feet) is situated on an 8,011 square foot lot. The facility has been shuttered since 2020 and currently houses equipment that is used for the City’s cable television and video services. The zoning for this property is Industrial 4 of 6
Conservation which allows a variety of industrial and commercial developments though housing is not currently permitted. Effective June 1, 2023, through the implementation of the Housing Element, as adopted by Council on March 21, 2023, housing will be permitted. Additionally, neighborhood serving land uses such restaurants, retail, personal services, and markets will be permitted in the IC zoning district to support housing development and the creation of new neighborhoods in this area. The development standard for the IC zone is 3.0 FAR and building height up to 65 feet.
Housing developments with 100% affordable units in this zone could receive an additional .5 FAR and 10’ in height.
Expo Line “Kiss and Ride” Lot; APNs:4290-011-901 and 4290-011-902 The Expo Line Kiss and Ride Lot is comprised of three parcels (APN 4290-011-909, 4290-011-901 and 4290-011-902). At its meeting on October 11, 2022, Council adopted a resolution declaring APN 4290-011-909 as surplus land but did not include two small remnant parcels (APN 4290-011-901 and 902) that are immediately adjacent. The City’s Notice of Availability (NOA), issued on November 11, 2022, incorporated the three parcels. Declaring the two remnant parcels (APN 4290-011-901 and 4290-011- 902) would complete the declaration of the entire Expo Line Kiss and Ride lot as surplus lands. The two remnant parcels are included in the attached resolution to ensure consistency with the November 11, 2022 NOA and the City’s intent to declare all three parcels associated with Kiss and Ride Lot as surplus.
Future Actions
Assuming these properties are designated as surplus lands, staff will proceed with noticing procedures under the SLA prior to commencing disposition negotiations. An example of the City’s draft Notice of Availability (NOA) cover letter is attached. Entities registered as interested affordable housing developers would receive copy of the NOA with 60 days to respond.
If the event the City does not receive any interest in the “surplus” properties, the City is required to record a covenant that provides that, in the event 10 or more residential 5 of 6
units are developed on the land in the future, at least 15% of the units must be set aside as affordable housing.
Environmental Review
The resolution to declare the properties as surplus lands is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “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 resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, as no development is authorized by this resolution and any future disposition will require separate environmental analysis, if and when, the details of such disposition are known.
Past Council Actions
Meeting Date Description
3/23/2021 Adoption of a Resolution of Inventory of City-Owned Properties Subject to the Surplus Lands Act
10/11/2022 Adoption of Resolution Declaring Surplus Properties 3/14/2023 Adoption of a Resolution Declaring Surplus Properties Financial Impacts and Budget Actions
There are no immediate financial impacts or budget actions necessary because of the recommended actions. An analysis of the specific financial impacts for each property will be presented when staff returns with interim or long-term disposition proposals for Council consideration.
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Prepared By: Nia Tang, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. Attachment A - Resolution
B. Attachment B - NOA Cover Letter
C. March 23, 2021 Staff Report (Web Link)
D. October 11, 2022 Staff Report (Web Link)
E. March 14, 2023 Staff Report (Web Link)