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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 5, 2019 TITLE -.1 AUTHORIZE THE REQUEST FOR PROPOSALS FOR THE SALE OF CITY -OWNED PROPERTIES WITH RESTRICTED USE OF PROCEEDS AND ALLOW FOR DIRECT NEGOTIATION FOR SALE OF EXEMPT REAL PROPERTY PER SANTA ANA MUNICIPAL CODE (STRATEGIC PLAN NOS. 3,2C, 5A & 6, 1G) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the Executive Director of the Public Works Agency to proceed with the release of a Request for Proposals for the sale of City -owned properties purchased with grant funding and with restricted use of proceeds, and allow for direct negotiation for sale of exempt real property, consistent with Santa Ana Municipal Code (SAMC) Article V, Sections 2-706 and 2-709. DISCUSSION The City is the owner of substantial real property assets and interests (Exhibits 1 and 2) that have been acquired for its municipal operations and various improvement projects. Over time, the need for these assets and interests can change, thereby creating an opportunity for their use for other purposes. By allowing remnant, unneeded City -owned real property assets to be employed for other purposes, the City and its residents can benefit from private improvements which provide property tax and sales tax revenue through economic development opportunities. The City's remnant parcels for disposition associated with the recommended action above were all acquired for various public improvement projects with Federal and State grants. These properties are not subject to the Surplus Lands Act (SLA). For purposes of the SLA, surplus land means "land owned by any local agency, that is determined to be no longer necessary for the agency's use, except property being held by the agency for the purpose of exchange." All of the properties that are subject to this Council action, are leftover parcels from right-of-way transactions that have never been put to any municipal or other use and are being held solely for purposes of exchange. The proceeds from the sale of these properties are restricted and must be used to reimburse the granting agencies, and/or to fund improvements within the same or similar project. The recommended action will authorize staff to solicit proposals to dispose twenty-three combined parcels and allow direct negotiations with adjacent property owners for five substandard parcels. 19C-1