Item 09 - First Amendment to THRIVE DDA & Consent to Assignment of Leases & Rents Authorization

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First Amendment to THRIVE DDA and Consent to Assignment of Leases and Rents Authorization June 7, 2022 Page 4 2 7 2 3 Background THRIVE is a community land trust dedicated to the stewardship of land for the permanent benefit of local residents. THRIVE was established in 2017 by local nonprofit leaders and residents to acquire land in Santa Ana for the purposes of providing community benefits, such as affordable housing, parks, urban microfarms, and marketplaces for small businesses. Since 2016, nonprofit groups such as Santa Ana Building Healthy Communities, who are now part of the THRIVE Board of Directors, have conducted community engagement to educate local residents and inform them about the benefits of community land trusts which include promotion of health and wellness, supporting long-term housing affordability, and building generational wealth. THRIVE conducted community outreach for the site, inclusive of over 20 events and surveys of the surrounding area. Based on the outreach conducted, THRIVE determined that a microfarm would be a community benefit for the area. This project would be the first acquisition and development project by THRIVE. A Community Benefits Report prepared by THRIVE describes the positive impacts of a microfarm to the community. These benefits include the following: 1) making organic produce and other healthy options more available in the local neighborhood; 2) implementing a membership-based model to provide monthly baskets of vegetables, fruit and other garden products to members at a low cost; 3) creating worker cooperative jobs; and 4) encouraging participation from local residents which can contribute to the local neighborhood economy, civic engagement, and prevention of costly health conditions including obesity and mental health illnesses. Surplus Land Government Code Section 54234 regarding surplus land stipulates that if a local agency, as of September 30, 2019, has entered into an exclusive negotiation agreement (ENA) to dispose of property or legally binding agreement, the new provisions effective January 1, 2020 do not apply, provided that the disposition is completed not later than December 31, 2022. As the property is under an ENA since September 17, 2019, the new provisions do not apply and this property is not subject to the Surplus Lands Act so long as the Ground Lease is executed prior to December 31, 2022. To ensure compliance with the requirements, the Ground Lease must be executed by December 15, 2022, to allow the City sufficient time for processing. FISCAL IMPACT Upon completion of milestones in the DDA by THRIVE, the City will execute a ground lease with THRIVE. The City will receive $1 per month from THRIVE for the term of the lease.