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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 21, 2018 <br />TITLE: <br />PUBLIC HEARING — RESOLUTION TO <br />AUTHORIZE NEGOTIATIONS FOR THE <br />SALE OF PORTIONS OF CITY -OWNED <br />REAL PROPERTY AT 1301 AND 1305 WEST <br />12TH STREET <br />(NON -GENERAL FUND) <br />(STRATEGIC PLAN NOS. 6, 1G; 3,2C) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1't Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt a resolution authorizing direct negotiations for the sale of portions of two City -owned <br />properties at 1301 and 1305 West 12th Street, without the need for public auction or competitive <br />bidding, as permitted by Section 2-709 of the Santa Ana Municipal Code upon two-thirds vote of <br />the City Council. <br />DISCUSSION <br />During the course of the Bristol Street Improvement Project, the Public Works Agency has <br />acquired numerous properties along the corridor. The subject properties at 1301 and 1305 West <br />12th Street (APN 004-113-34 and APN 004-113-19, respectively) were acquired as part of Bristol <br />Street Improvements Phase 3A using Orange County Transportation Authority (OCTA) funding <br />appropriated for this project (Exhibit 1). The purchase price was based on appraised values <br />prepared by a state -licensed appraiser. The remnant portions of these properties that will remain <br />after the Bristol Street Improvement Project is completed will not be used by the City and are <br />being held for purposes of exchange or sale. <br />To accommodate the street improvements and to avoid a full acquisition, the City executed a <br />partial acquisition of 1220 N. Bristol Street (APN 004-113-35), immediately to the north of 1301 <br />and 1305 West 12th Street. The property owners, hereby referred to as "Marshall -Kelly," are <br />interested in acquiring the subject remnant properties, in order to regain their parking lot and <br />upgrade their overall site. <br />Due to the proposed construction of a cul-de-sac located south of the properties on 12th Street, <br />the remnant parcels will be irregular in shape. The total combined area is approximately 8,322 <br />square feet, currently zoned for commercial use, and with no independent utility, presenting a <br />challenge to market and sell. For these reasons, staff recommends direct negotiations with <br />Marshall -Kelly to facilitate a sale of these properties that will be mutually beneficial to all parties. <br />75C-1 <br />