75C - PH SALE OF CITY REAL PROPERTY

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Public Hearing — Resolution to Authorize Negotiations Sale of City -owned Real Property at 1301 and 1305 West 12th Street September 18, 2018 Page 2 the City with similar proposals to acquire and develop, or will be included for disposition with all the other properties owned by the City at a future date. 1301 and 1305 West 12th Street The subject properties at 1301 and 1305 West 12th Street (APN 004-113-34 and APN 004-113- 19, respectively) were acquired as part of Bristol Street Improvements Phase 3A from Civic Center to Washington (Exhibit 1). The Bristol Improvements include constructing a cul-de-sac located on Bristol and 12th Street, and those improvements result in the subject remnant parcels too small and irregularly shaped to independently develop (Exhibit 2). Moreover, the subject parcels, zoned Commercial, are considered "landlocked" due to their small size for its zoning (7,780 square feet) and with no independent utility access. Immediately to the north of the two subject properties, the City obtained a partial acquisition from a portion of the parking lot at 1220 North Bristol Street. The property owners of 1220 North Bristol, hereby referred to as "Marshall -Kelley," approached the City and are interested in acquiring the subject properties, in order to regain the parking spaces lost and upgrade their overall site. For these reasons, staff recommends direct negotiations with Marshall -Kelley to facilitate a sale of these properties that will be mutually beneficial to all parties. The sale of these properties would return them to the tax rolls as part of the larger commercial property. The subject parcels have a total combined area of approximately 7,780 square feet and would otherwise present a challenge to the City to market and sell to parties other than the adjacent property owner. The properties were acquired using Measure M and Gas Tax funds appropriated for this project from the Orange County Transportation Authority (OCTA). The purchase prices were based on appraised values prepared by a state -licensed appraiser. The remnant portions of these properties that will remain after the Bristol Street Improvement Project is completed will not be used by the City, and are being held for purposes of exchange or sale. Due to the funding sources used for their acquisition, the City is obligated to sell the remnants, with the proceeds used for continuation of the Bristol Street Improvements. Under the Santa Ana Municipal Code (SAMC) Section 2-706, surplus real property may be sold (after authorization by the Council) only to the highest bidder, subject to final confirmation by the Council and with notice of the sale given by newspaper publication. However, SAMC Section 2- 709, provides an exemption to this procedure and permits a sale on direct negotiations without the need for public auction or competitive bidding, upon two-thirds vote of the City Council after a duly noticed public hearing. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private 75C-2