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Home My WebLink About75B - PH NEGOTIATIONS SALE OF CITY-OWNED PROPRETYREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 16, 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) CITYLMANA RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� 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. Through consolidation, the majority of the remnant properties on Bristol Street are of sufficient size to develop pursuant to the Bristol Specific Plan. However, in three circumstances the remnants do not meet the Bristol Specific Plan's zoning requirements for lot size and cannot be consolidated. The locations are detailed below: Address APN Zoning Remnant Size s Authorization 1301, 1305 W. 12th St. 004-131-34,19 C 7,780 Today 1247 W. Santa Ana Blvd. 008-082-29 C 5,408 Future 515, 517 N. Bristol St. 008-081-26, 28 C 8,887 Future 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 from Civic Center to Washington (Exhibit 1). The Bristol Improvements include constructing a cul-de-sac located on Bristol and 12th Street. Those improvements will result in the subject remnant parcels being too small and irregularly shaped to independently develop (Exhibit 2). Moreover, the subject parcels, zoned Commercial, are considered "landlocked" due to their small size for its zoning (7,780 square feet) and no independent utility access. 7513-1 Public Hearing — Resolution to Authorize Negotiations Sale of City -owned Real Property at 1301 and 1305 West 12th Street October 16, 2018 Page 2 Immediately to the north of the two subject properties, the City obtained a partial acquisition from a portion of the parking lot at 1220 North Bristol Street. The property owners of 1220 North Bristol, hereby referred to as "Marshall -Kelley," approached the City and are interested in acquiring the subject "landlocked" properties, in order to regain the parking spaces lost and upgrade their overall site. For these reasons, staff recommends direct negotiations with Marshall -Kelley to facilitate a sale of these properties that will be mutually beneficial to all parties. The sale of these properties would return them to the property tax rolls as part of the larger commercial property. The subject parcels have a total combined area of approximately 7,780 square feet and would otherwise present a challenge to the City to market and sell to parties other than the adjacent property owner. The other remaining remnant property cases designated as "future" will be addressed if any of the adjacent property owners approach the City with similar proposals to acquire and develop, or will be included for disposition with all the other properties owned by the City at a future date. The properties were acquired using Measure M and Gas Tax funds appropriated for this project from the Orange County Transportation Authority (OCTA). The purchase prices were 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. Due to the funding sources used for their acquisition, the City is obligated dispose of the remnant parcels, with the proceeds to be used for the continuation of the Bristol Street Improvements. 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). 75B-2 Public Hearing — Resolution to Authorize Negotiations Sale of City -owned Real Property at 1301 and 1305 West 12th Street October 16, 2018 Page 3 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 distribute the proceeds in accordance with Agreement C-8-1157 between the City and Minh Thai Executive Director Planning and Building Agency Exhibits: 1. Location Map 2. Detailed Map of Subject Properties 3. Resolution 75B-3 75B-4 4 (NTS) MATCFLIIE SEE BELOW RIM9 10TH STREET 405-262.27 405.262.26 405-262.25 405.262.24 405.262-23 405.262.22 405.262-21 u g u g I� J L__j- WASHINGTON AVENUE n � 40 •274.12 MARSHALL- - N KELLEY m 40 •274•Il 12TH STREET L05-274-10 n 405-27/•09 405.262.33 405.262.32 ' ST•REETW 405.262.31 m N 405.262.30 ,•J a a 0O o mm ` m 405.262.29 /05.262-26 � q MAT*LM SEE TOP LEFT LEGEND: -SUBJECT PROPERTIES - PARTIAL ACOLISITION PREVIOUSLY ACOUIIIREDIFEO SANTA ANA PUBLIC HEARING - RESOLUTION TO AUTHOR NEGOTIATION FOR THE SALE OF PORTIONS OF P W A CITY-OWNED1305REAL PROPERTY AT WEST LOTH STREET 1301 AND (NON -GENERAL FUND)__, 75B-5 PAGE 1 OF 1 75B-6 14 (NTS) WA13fiNC9M AVENUE - SUBJECT PROPERTIES SANTA ANA PWA Mi " EXHIBIT 2 75B-7 PACE I OF I 75B-8 jmf 10/16/2018 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 121' 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 Page 1 of 3 imf 10/16/2018 F. On October 16, 2018, the City Council held a duly noticed public hearing after which a 213 majority of the City Council voted to exempt the sale of portions of the real property at 1301 West 12th Street and 1305 West 12th 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 12th 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 161" day October, 2018. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: V&rA - l Yom. J&n M. Funk Assistant City Attorney AYES Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 75B-10 Resolution No. 2018-xxx Page 2 of 3 jmf 10/16/2018 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 October 16, 2018. Date Clerk of the Council City of Santa Ana 75B-11 Resolution No. 2018-xxx Page 3 of 3 75B-12