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Home My WebLink About75C - PH SALE OF REAL PROPERTYREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 21, 2018 TITLE: PUBLIC HEARING — RESOLUTION TO AUTHORIZE NEGOTIATIONS FOR THE SALE OF PORTIONS OF CITY -OWNED REAL PROPERTY AT 1301 AND 1305 WEST 12TH STREET (NON -GENERAL FUND) (STRATEGIC PLAN NOS. 6, 1G; 3,2C) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1't Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing direct negotiations for the sale of portions of two City -owned properties at 1301 and 1305 West 12th Street, without the need for public auction or competitive bidding, as permitted by Section 2-709 of the Santa Ana Municipal Code upon two-thirds vote of the City Council. DISCUSSION During the course of the Bristol Street Improvement Project, the Public Works Agency has acquired numerous properties along the corridor. The subject properties at 1301 and 1305 West 12th Street (APN 004-113-34 and APN 004-113-19, respectively) were acquired as part of Bristol Street Improvements Phase 3A using Orange County Transportation Authority (OCTA) funding appropriated for this project (Exhibit 1). The purchase price was based on appraised values prepared by a state -licensed appraiser. The remnant portions of these properties that will remain after the Bristol Street Improvement Project is completed will not be used by the City and are being held for purposes of exchange or sale. To accommodate the street improvements and to avoid a full acquisition, the City executed a partial acquisition of 1220 N. Bristol Street (APN 004-113-35), immediately to the north of 1301 and 1305 West 12th Street. The property owners, hereby referred to as "Marshall -Kelly," are interested in acquiring the subject remnant properties, in order to regain their parking lot and upgrade their overall site. Due to the proposed construction of a cul-de-sac located south of the properties on 12th Street, the remnant parcels will be irregular in shape. The total combined area is approximately 8,322 square feet, currently zoned for commercial use, and with no independent utility, presenting a challenge to market and sell. For these reasons, staff recommends direct negotiations with Marshall -Kelly to facilitate a sale of these properties that will be mutually beneficial to all parties. 75C-1 Public Hearing — Resolution to Authorize Negotiations for Sale of City -owned Real Property at 1301 and 1305 West 12th Street August 21, 2018 Page 2 Under the Santa Ana Municipal Code (SAMC) Section 2-706, surplus real property may be sold (after authorization by the Council) only to the highest bidder, subject to final confirmation by the Council and with notice of the sale given by newspaper publication. However, SAMC Section 2- 709, provides an exemption to this procedure and permits a sale on direct negotiations without the need for public auction or competitive bidding, upon two-thirds vote of the City Council after a duly noticed public hearing. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy G (develop and implement the City's Capital Improvement Program in coordination with the Community Investment and Deferred Maintenance Plans). Approval of this item also supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects). ENVIRONMENTAL IMPACT There are no environmental impacts associated with this action. FISCAL IMPACT There is no fiscal impact at this time. Revenue from the sale of these City -owned properties must be recognized in the Select Street Construction and OCTA Measure M2 Street Construction funds used for the acquisition. Upon conclusion of the negotiations, staff will bring the transaction details, including the revenues generated, for City Council authorization to recognize, receive, and di t 'bute the proceeds in accordance with Agreement C-8-1157 between the City and OCTA. I Fuad S.elreiss, PE, ExecutitiveI Director Public Wdrks Agency Exhibits: 1. Location Map 2. Resolution 75C-2 4 CMTS) MATCH I E tM BELOW FXW 9TH STREET 105-262.26 L -E WASHINGTON AVENUE LEGEND: -SUBJECT PROPERTIES - PARTIAL ITION PREVIOUSLY LY ACOACOOIREO SANTA ANA PUBLIC HEARING - RESOLUTION TO NEGOTIATION FOR THE SALE OF P( PWA CtTlf 1305 WEED ST PROPERTY ST�REETT (NON -GENERAL FUND) IStratedc Plan No. 6,10 3, 75C-3 1 CHLM SEE TOP LEFT ei�J PAGE 1 OF 1 105-262-25 MARSHALL- 10271.12 KELLY N 105-262-21 IB 271-1 105-262-23 An � 405 -262-22 105.262-22 - 105.262.21 12TH STREET 05-271.10 r � g J n 165.271.09 y— 105.262-33 m ffm STREETW 105-262-32 i m 105.262.31 n CMC CENTER DR. = J 105.262.30 m mm YJ YYYYJJJJm 105.262.29 105.262.20 A LEGEND: -SUBJECT PROPERTIES - PARTIAL ITION PREVIOUSLY LY ACOACOOIREO SANTA ANA PUBLIC HEARING - RESOLUTION TO NEGOTIATION FOR THE SALE OF P( PWA CtTlf 1305 WEED ST PROPERTY ST�REETT (NON -GENERAL FUND) IStratedc Plan No. 6,10 3, 75C-3 1 CHLM SEE TOP LEFT ei�J PAGE 1 OF 1 75C-4 jmf 712312018 RESOLUTION NO. 2018 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING DIRECT NEGOTIATIONS FOR THE SALE OF PORTIONS OF CITY -OWNED REAL PROPERTY AT 1301 WEST 12TH STREET AND 1305 WEST 12TH STREET BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In 2016 and 2017, during the course of the Bristol Street Improvements Project, the City acquired the adjacent real property at 1301 West 12th Street and 1305 West 12th Street. B. The portions of these properties that will remain after the Bristol Project is completed have not been, and will not be, used by the City and are being held for purposes of exchange or sale. C. The owner of the property immediately north of 1301 West 12th Street and 1305 West 12th Street, known as Marshall -Kelley, LLC, operates that property on a commercial basis. Marshall -Kelley, LLC has expressed interest to acquire portions of the real property at 1301 West 12th Street and 1305 West 12th Street to upgrade its overall site and expand parking that was adversely impacted by the Bristol Project. These properties are of irregular size and shape, are zoned commercially, and have little or no independent utility. D. Santa Ana Municipal Code section 2-706 establishes the procedures for the sale of City -owned surplus real property. Under these procedures, following council authorization for sale, City -owned surplus real property shall be sold by competitive bidding to the highest bidder subject to final authorization of the City Council. E. As permitted by Santa Ana Municipal Code section 2-709, the sale of City - owned real property may be exempted from this manner of sale upon 2/3 vote of the City Council after a duly noticed public hearing, whereby the sale may instead be made upon a basis of direct negotiations without the necessity for public auction or competitive bidding, when the authority to so negotiate has been granted by the City Council. Resolution No. 2018-xxx Exhibit 2 Page 1 of 3 75C-5 imf 7/23/2018 F. On August 21, 2018, the City Council held a duly noticed public hearing after which a 2/3 majority of the City Council _voted to exempt the sale of portions of the real property at 1301 West 121i Street and 1305 West 121" Street from competitive bidding and authorize direct negotiations for their sale with Marshall -Kelley, LLC. Section 2. The City Council of the City of Santa Ana hereby exempts the sale of portions of the City -owned real property at 1301 West 12th Street and 1305 West 121h Street from the competitive bidding procedures in Santa Ana Municipal Code section 2- 706 and authorizes the City Manager or his or her designee to negotiate directly for their sale with Marshall -Kelley, LLC, in accordance with Santa Ana Municipal Code section 2- 709. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 218t day August, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: /YV.Z. *fin M. Funk Assistant City Attorney AYES NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers Miguel A. Pulido Mayor 75C-6 Resolution No. 2018-xxx Page 2 of 3 jmf 712312018 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council do hereby attest to and certify the attached Resolution No 2018 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on August 21, 2018. Date Clerk of the Council City of Santa Ana Resolution No. 2018-xxx Page 3 of 3 75C-7 75C-8