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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 20, 2016 <br />TITLE: <br />PUBLIC HEARING — RESOLUTION TO <br />AUTHORIZE NEGOTIATION FOR THE <br />SALE OF CITY -OWNED REAL <br />PROPERTY AT 2129 NORTH MAIN <br />STREET <br />(STRATEGIC PLAN NO. 3,5A) <br />CITY MANAGItR <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />_95 0_ <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1 a Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />AID :111 ill�:l <br />1. Adopt a resolution authorizing direct negotiation for the sale of City -owned property at 2129 <br />North Main Street without the need for public auction or competitive bidding, as permitted by <br />Section 2 -709 of the Santa Ana Municipal code upon 2/3 vote of the City Council. <br />2. Authorize the City Manager and Clerk of the Council to execute the attached Exclusive <br />Negotiation Agreement (ENA) with Net Development Co. and accept a "good faith" deposit <br />of $90,000 for the purpose of developing a hotel on the site, subject to non - substantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />As part of the City's Strategic Plan Economic Development goal to "identify and market <br />underutilized properties (city and non -city owned) for new development ", City staff provided a bus <br />tour to over 55 local brokers and developers highlighting potential development opportunity sites <br />in July 2015. One of the sites identified as underutilized was the City -owned parcel at 2129 North <br />Main Street that is currently being used as a parking lot (Exhibit 1). <br />In September 2015, the City was approached by Net Development Co. to construct a new hotel <br />at this site. Under the Santa Ana Municipal Code (SAMC) Section 2 -706, surplus real property <br />may be sold (after authorization by the Council) only to the highest bidder, subject to final <br />confirmation by the Council and with notice of the sale given by newspaper publication. SAMC <br />Section 2 -709, however, provides an exemption to this procedure and permits a sale on direct <br />negotiations without the need for public auction or competitive bidding, upon 2/3 vote of the City <br />Council after a duly noticed public hearing. <br />75A -1 <br />