CITY OF SIMI VALLEY
MEMORANDUM
June 24, 2024
TO: City Council
FROM: Office of the City Manager
SUBJECT: CONSIDERATION OF THE TRANSFER OF CITY OWNED PROPERTY (APN 632-0-140-300) LOCATED ON ERRINGER ROAD NORTH OF THE
ARROYO SIMI TO A DEVELOPER IN EXCHANGE FOR ADDITIONAL
AFFORDABLE HOUSING UNITS WITHIN A 66 -UNIT MULTIFAMILY
PROJECT (PD-S-2022-0015) AND ADOPTION OF A RESOLUTION
STAFF RECOMMENDATION
It is recommended the City Council adopt the attached Resolution No. 2024-3 0 finding the subject property Exempt Surplus Land, and approve the transfer of the property and authorize the City Manager to execute all documents necessary for the transfer.
BACKGROUND AND OVERVIEW
In 2022, Developer Adrian Stern submitted a development application for the construction of a 66 unit multifamily apartment project. Located on Erringer Road immediately north of the Arroyo Simi, the project was proposed to contain 3 affordable housing units. The City owns an 8,537 square foot parcel at the southeast corner of the proposed multifamily project.
Mr. Stern has requested the City consider the transfer of this property in order to facilitate the orderly development of the project. With the City’s property, the project’s vehicular access to the south would be easier as well as providing space for project outdoor amenities. In response, the City proposed that in exchange for the property, that Mr. Stern provide two additional affordable housing units within the development . Mr. Stern has agreed to this exchange and staff recommends the City Council approve the transfer of the property for the additional affordable units.
FINDINGS AND ALTERNATIVES
Subject Property
In the early 1970’s the City undertook a project to widen numerous streets and complete the rights-of-way in Simi Valley as part of the Los Angeles Avenue Widening Project in AGENDA ITEM NO.
9A
2 order to provide safe transit through the community by vehicles, cyclist, and pedestrians.
Several locations on Erringer Road were included in the Los Angeles Avenue Widening Project where rights-o f-way including curb, gutter, sidewalks and street paving, were incomplete. Where necessary, the City was required to acquire private property to complete the improvements.
In May 1975, the City acquired a 0.51 acre (22,215 square feet) parcel on Erringer Road to accomplish infrastructure improvements. As the parcel was larger than necessary, the City transfered13,678 square feet to the County of Ventura, which land became part of the Arroyo Simi. The remaining 8,537 square feet remained with the City, who subsequently completed 74 feet of right-of-way improvements on Erringer Road. The City has held the remaining property, which was later incorporated into the Arroyo Simi Greenway Master Plan for use as a respite stop on the Arroyo Simi bikepath. The subject property is identified below.
Proposed Development
The applicant, Adrian Stern, has submitted a request for a Planned Development in order to construct a new 66 unit apartment building on a 1.46 acre portion of a 4.57 acre vacant lot and a 0.19 acre City-owned property (1.65 acre total lot area) located on the west side of Erringer Road south of Heywood Street (1575 Erringer Road). The project also includes an Affordable Housing Agreement for the provision of 5 affordable units (7%) set aside to very low and low-income qualified renters.
3 As proposed, t he new 66 -unit apartment building will be constructed on a 1.65 acre portion of the vacant property. The project will include amenities such as a spa, outdoor kitchen and barbeque, dog park, bocce ball court, fitness center, community room, media room, workspace, and common areas. The apartment complex will be four stories and will include 59 one-bedroom units ranging in size between 800 and 890 square feet and 7 two-bedroom units ranging in size between 1,018 and 1,255 square feet.
The City-owned property is located within the Arroyo Simi Greenway Specific Plan and is included within the Rancho Simi Community Park Area. The Specifi c Plan identifies the Rancho Simi Community Park as being eligible for expansion and includes the area of the City -owned property within the expansion area. Improvements to the City -owned property would include rest area with benches, trash cans, and low rock walls.
Mr. Stern has requested a Specific Plan Amendment to remove the City-owned property from the Arroyo Simi Greenway Specific Plan. By removing the parcel, the identified improvements will not be constructed and the applicant will instead improve the land with amenities for the residents including a dog park and bocce ball court.
The City consulted with the Rancho Simi Parks District about removing the property and improvements from the Specific Plan. The Parks District shared the identif ied in the Specific Plan are not necessary for the overall function and design of the trail system and they are supportive of the amendment.
Proposed Transfer
The City is proposing the transfer of the City property to the developer in exchange for the provision of 2 additional affordable housing units in the project. In order to ensure the City receives at least equal value for the land, the City commissioned an appraisal of the property. The appraisal of the property, prepared by the firm Hoffman, Vanc e & Worthington and dated April 3, 2023, provided a value of $256,000 for the property. Staff estimates the value of providing one additional affordable housing unit in the project at $350,000. Therefore, the City would be receiving greater overall value than the land being transferred.
In transferring the land, the City considered State law (Surplus Land Act) that significantly limits the ability of cities to sell or otherwise encumber property without prior notification to the California Department of Housing and Community Development (HCD) and making the property available to affordable housing developers. However, the Surplus Land Act identifies land that is less than 21,780 square feet and not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes as Exempt Surplus Land (Gov. C ode Section 54221(f)(1)(B)). As the Subject Property is less than 21,780 square feet and not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes as Exempt Surplus Land, the proposed transfer is exempt from the Surplus Land Act. To 4 effectuate the transfer, and to note the exemption from the Surplus Land Act, the City Council would need to adopt a resolution finding that the property is Exempt Surplus Land.
It should be noted that this project, PD -S-2022-0015 is on the City Council agenda for consideration. This proposed transfer of City property will only be considered if the City Council approves PD-S-2022-0015. Additionally, as part of PD-S-2022-0015, and due to the inclusion of affordable housing units, the project approval includes an Affordable Housing Agreement to govern the disposition of the affordable units within the development. The Agreement contains provisions that should the project fail to be completed, the City’s property will revert back to the City.
Staff recommends the City Council adopt the attached resolution finding the subject property Exempt Surplus Land and allowing the City to take any action to dispose of the property. Staff also recommends the City Council approve the transfer of the property and authorize the City Manager to execute all documents necessary for the transfer.
The following alternatives are available to the City Council:
1. Adopt the attached Resolution No. 2024-30 finding the subject property Exempt Surplus Land pursuant to the Surplus Land Act.
2. Approve the transfer of the property and authorize the City Manager to execute all documents necessary for the transfer.
3. Elect not to transfer the City property at this time
4. Provide further direction to staff.
Staff recommends Alternative Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to adopt the attached Resolution No. 2024-30 finding the subject property Exempt Surplus Land, and approve the transfer of the property and authorize the City Manager or his/her designee to execute all documents necessary for the transfer.
SUMMARY
In 2022, Developer Adrian Stern submitted a development application for the construction of a 66 unit multifamily apartment project. Located on Erringer Road immediately north of the Arroyo Simi, the project was proposed to contain 3 affordable housing units.
Adjacent to the project, the City owns an 8,537 square foot parcel at the southeast corner of the proposed multifamily project.
5 Mr. Stern has requested the City consider the transfer of this property in order to facilitate the orderly development of the project. The City has agreed to consider the transfer of the property in exchange for two additional affordable housing units within the development. Mr. Stern has agreed to this exchange and staff recommends the City Council take the necessary actions to approve the transfer of the property for the additional affordable units.
____________________________________
Brian P. Gabler
City Manager
INDEX Page
Resolution No. 2024-30 .................................................................... 6
6 RESOLUTION NO. 2024-30
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY, CALIFORNIA DECLARING CERTAIN CITY
OWNED PROPERTY AS EXEMPT SURPLUS LAND
PURSUANT TO THE SURPLUS LAND ACT
WHEREAS, the City of Simi Valley (“City”) owns certain real property known as Ventura County Assessor’s Parcel Number 632-0-140-300 (“Property”), more specifically identified in Exhibit “A”; and
WHEREAS, the City caused an appraisal of the Property to be completed to establish its fair market value. The Property is approximately 8,537 square feet in size with an appraised value of $256,000.; and
WHEREAS, in May 1975, City purchased the Property through the acquisition of a larger parcel that was 0.51 acres; and
WHEREAS, the original 0.51 acre parcel was larger than necessary to complete certain infrastructure improvements, resulting in the transfer of a 13,678 square feet portion of the parcel to the County of Ventura in May 1975; and
WHEREAS, City kept the remaining 8,537 square feet of the original 0.51 acre parcel under City ownership; and
WHEREAS, the Property is currently incorporated into the Arroyo Simi Greenway Specific Plan for use as a future rest stop on the Arroyo Simi bike path; and
WHEREAS, City has owned the Property since 1975 and has not completed proposed infrastructure improvements pursuant to the Arroyo Simi Greenway Specific Plan; and
WHEREAS, City consulted with the Rancho Simi Recreation and Park District about removing the Property and improvements from the Arroyo Simi Greenway Specific Plan and discovered that the Property is not necessary for the overall function and design of the bike path system; and
WHEREAS, the adjacent property owner has submitted a request for a P lanned Development in order to construct a new 66 unit apartment building north and west of the Property; and
WHEREAS, the adjacent property owner made a request to transfer the Property to him in order to facilitate the orderly development of the new 66 unit apartment building; and
7 WHEREAS, in conjunction with the transfer, the adjacent property owner has requested a Specific Plan Amendment to remove the Property from the Arroyo Simi Greenway Specific Plan and a Zone Change to rezone the Propert y from Commercial Office-Arroyo Simi Greenway Specific Plan [CO (SP)] to Residential Very High Density (RVH); and a Planned Development Permit to develop the Property and adjacent site for the proposed 66-unit apartment building; and
WHEREAS, by removing the Property from the Arroyo Simi Greenway Specific Plan, the adjacent property owner will instead improve the Property to accommodate the development of the proposed 66 unit apartment building; and WHEREAS, City has determined that it is in the City’s best interest to transfer the Property to the adjacent property owner for the development of a new 66 unit apartment building with 3 units reserved for affordable housing; and WHEREAS, City desires to transfer the Property to the adjacent property owner in exchange for the incorporation of two (2) additional affordable housing units, totaling five (5) affordable housing units within the new 66 unit apartment building; and WHEREAS, staff estimates the value of providing one additional affordable housing unit in the project at $350,000 and therefore, the City would be receiving greater overall value in transferring the Property rather than constructing infrastructure improvements pursuant to the Arroyo Simi Greenway Specific Plan or continually maintaining the vacant underutilized property; and
WHEREAS, the transfer of the Property to the respective contiguous and adjoining property owner will increase the supply of much -needed affordable housing that will be available to low and very-low income households by five (5) units; and WHEREAS, the Surplus Land Act (“Act”), Government Code sections 54220 et seq., applies when a local agency disposes of “surplus land”, as that term is defined in Government Code section 54221; and
WHEREAS, the Act requires local a gencies to declare land as “surplus land” or “exempt surplus land” prior to disposition; and
WHEREAS, the Act identifies land that is less than 21,780 square feet and not contiguous to land owned by a state or local agency that is used for open -space or low- and moderate-income housing purposes as Exempt Surplus Land (Gov. Code Section 54221(f)(1)(B)); and
WHEREAS, the Property is less than 21,780 square feet and not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate- income housing purposes as Exempt Surplus Land , exempting the transfer of the Property from the Act; and
RES. NO. 2024-30
8 WHEREAS, pursuant to the Surplus Land Act Guidelines issued by the California Department of Housing and Community Development ("HCD"), any determination by a local agency that its surplus lands are exempt from the Surplus Land Act must be provided to HCD for its review at least 30 days prior to disposition.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Recitals
The recitals above are hereby incorporated and adopted as the findings of the City Council.
SECTION 2. California Environmental Quality Act (CEQA)
The proposed action is categorically exempt from CEQA under the "Surplus Government Property Sales" exemption per Title 14, Chapter 3, Article 19, Class 12, Section 15312. Specifically, the City pro poses to convey the Surplus Property; the Surplus Property is not located in an area of concern; the Surplus Property does not have significant value for wildlife habitat or other environmental purpose; and the use of the Surplus Property has not changed since the time the City acquired the Surplus Property.
Accordingly, this project conforms with a Class 12 categorical exemption under CEQA.
SECTION 3. Declaration of Exempt Surplus Land
A. Based on the foregoing recitals, the public interest is for the Property to be offered for conveyance in accordance with applicable law, including but not limited to Government Code Section 54222.
B. The City Council hereby declares that the Property comprised of APN 632-0-140- 300 (i) is surplus land and not necessary for the City’s use, and (ii) is exempt from the Act pursuant to California Government Code section 54221(f)(1)(B).
C. Pursuant to California Government Code section 54222.3, the Act shall not apply to the disposition of the Property.
SECTION 4. Actions; Authorizations
A. The City Manager is authorized to take all steps necessary to offer the Surplus Property for conveyance, as identified herein, and executing all documents required for implementation of the purpose of this Resolution on the City’s behalf.
B. The City Manager is hereby authorized and directed to submit a copy of this Resolution to HCD in accordance with the Surplus Land Act Guidelines.
RES. NO. 2024-30
9 SECTION 5. Electronic Signatures
This Resolution may be executed with electronic signat ures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6. Effective Date
This Resolution will become effective immediately upon adoption.
SECTION 7. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.
PASSED and ADOPTED this
Attest:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney Brian Paul Gabler, City Manager
ATTACHMENT:
Exhibit A – Legal Description for APN 632-0-140-300
RES. NO. 2024-30
10 EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Simi Valley, County of Ventura, State of California, described as follows:
PART OF LOT 33 OF THE CALIFORNIA MUTUAL BENEFIT COLONY OF
CHICAGO'S SUBDIVISION, IN THE CITY OF SIMI VALLEY, AS PER MAP RECORDED IN BOOK 3, PAGE 19 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 33, THENCE, 1ST: SOUTH ALONG THE EAST LINE OF SAID LOT 33, 75.00 FEET TO A STAKE;
THENCE,
2ND: WESTERLY IN A STRAIGHT LINE TO A STA KE ON WEST LINE OF SAID LOT 33, SITUATE 30.00 FEET SOUTH OF THE NORTHWEST CORNER OF SAID LOT 33; THENCE,
3RD: NORTH ALONG THE WEST LINE OF SAID LOT 33, 30.00 FEET TO THE NORTHWEST CORNER OF SAME; THENCE,
4TH: NORTHEASTERLY ALONG A LINE DIVIDING SAID LOT 33 AND LOT 34 TO THE NORTHEAST CORNER OF SAID LOT 33 AND PLACE OF
BEGINNING.
EXCEPTING THEREFROM ALL THAT PORTION OF SAID LAND GRANTED TO SIMI VALLEY RECREATION AND PARK DISTRICT, IN DEED RECORDED MAY 22, 1972, IN BOOK 3959, PAGE 4, OFFICIAL RECORDS.
APN: 632-0-140-300
RES. NO. 2024-30