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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 7, 2017 <br />CLERK OF COUNCIL USE ONLY: <br />TITLE: APPROVED <br />PUBLIC HEARING — RESOLUTION TO ❑ As Recommended <br />AUTHORIZE NEGOTIATION FOR THE SALE OF ❑ As Amended <br />PORTIONS OF CITY -OWNED REAL PROPERTY El Ordinance on 10Readi <br />AT 827, 829, AND 907 NORTH BRISTOL El Ordinance on 2 Reading <br />Reading <br />❑ Implementing Resolution <br />STREET ❑ Set Public Hearing For <br />(NONGENERAL FUND) <br />(STRATEGIC PLAN NOS. 6, 1G; 3, 2C} <br />CONTINUED TO <br />VJ FILE NUMBER <br />CI ANAGER <br />Adopt a resolution authorizing direct negotiation for the sale of portions of three City -owned properties at <br />827, 829, and 907 North Bristol Street, without the need for public auction or competitive bidding, as <br />permitted by Section 2-709 of the Santa Ana Municipal Code upon 2/3 vote of the City Council. <br />DISCUSSION <br />During the course of the Bristol Street Improvement Project, the Public Works Agency has acquired <br />numerous properties along the corridor. The subject properties at 827, 829, and 927 North Bristol Street <br />(APN 405-262-21, 22, and 23) were acquired as part of Bristol Street Improvements Phase 3A (Exhibit 1), <br />bound by Civic Center Drive and Washington Avenue. The purchase prices of the three properties <br />acquired by the City were based on appraised values prepared by a state licensed appraiser. The <br />portions of these properties that will remain after the Bristol Street Improvement Project is completed will <br />not be used by the City and are being held for purposes of exchange or sale. <br />In -N -Out Burgers operates a drive-through restaurant immediately adjacent to the properties. In -N -Out <br />Burgers has approached the Public Works Department to address their drive-through spill-over traffic <br />issues. Due to the restaurant's popularity, spill-over traffic regularly backs up on Bristol Street far enough <br />to block the driveways of adjacent businesses, block pedestrian crosswalks, and interfere with regular <br />traffic. As a result, City staff has received numerous complaints from adjacent businesses, residents, and <br />neighborhoods, including threats of legal action that could result in an involuntary solution. The negotiation <br />of the sale of the properties would be contingent on a redesign of the restaurant's site plan and mitigating <br />the spill-over traffic issue. City staff has been working proactively with In -N -Out Burgers and has reviewed <br />a draft site plan that will triple the drive-through stacking capacity and meet the site vehicular demands. <br />Under the Santa Ana Municipal Code (SAMC) Section 2-706, surplus real property may be sold (after <br />authorization by the Council) only to the highest bidder, subject to final confirmation by the Council and <br />with notice of the sale given by newspaper publication. SAMC Section 2-709, however, provides an <br />exemption to this procedure and permits a sale on direct negotiation without the need for public auction or <br />competitive bidding, upon 2/3 vote of the City Council after a duly noticed public hearing. <br />751-1 <br />