Item 14 - Resolution Declaring City-Owned Properties as Surplus Land and Exempt Surplus Land

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Adopt a Resolution Declaring City-Owned Properties as Surplus Land and Exempt Surplus Land October 3, 2023 Page 4 3 7 5 3 If the City receives a letter of interest from any of the above entities, the City would enter into good faith negotiations concerning the price and terms of the sale with that entity for a 90 day period. If the terms cannot be agreed upon after 90 days or if no entity gives notice of interest, the City may sell the surplus land without further regard to the surplus land procedures, except that any residential development on the surplus land that contains 10 or more units must restrict 15% of the units for affordable housing. Nothing in the surplus land procedures requires the City to sell the surplus land at less than fair market value. If the end of the 90-day negotiation period does not result in successful negotiations, the Public Works Agency will proceed with disposition via the Request for Proposal (RFP) process, consistent with previous methodology approved and utilized for disposition of properties with restricted sale of proceeds, such as using grant funds for the acquisition of land. Purchase and Sale Agreements (PSA) for the sale of referenced properties would be brought to the City Council for consideration at a future date, following all necessary evaluation periods. In addition to designating land surplus, Staff is also categorizing exempt surplus land for all eligible substandard parcels not fit for independent development per existing use. Notice of Exemption Determination The land proposed to be declared as exempt is supported by the small surplus land parcels category, in which the land is less than 5,000 square feet in area; less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located; and/or has no record access, is less than 10,000 square feet in area, and is not contiguous to land owned by a local agency that is used for open-space or low and moderate income housing purposes. In alignment with Government Code 54221 subd. (f)(1)(b), Notice of Exemption determination shall be provided to the State’s Department of Housing and Community Development at least 30 days prior to disposition. Once SLA requirements are met, Staff will present a new item for consideration of disposition via Santa Ana Municipal Code Section 2-706 Sale to Owners of Adjoining Property and Section 2-709 Exceptions to transfer ownership of substandard vacant land. FISCAL IMPACT Costs for maintaining vacant lots are escalating, with charges for installation, rental fees, damaged material replacement fees, and emergency fencing requests. Selling remnant land will help to generate necessary project funding that will support right-of-way maintenance and security citywide.