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Home My WebLink About55A - RESO DECLARING CITY OWNED PROPERTY 203-205 CIVIC CENTER SURPLUSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 3, 2020 TITLE: ADOPT A RESOLUTION DECLARING CITY - OWNED PROPERTY AT 203-205 W. CIVIC CENTER DRIVE (YMCA BUILDING) AS SURPLUS LAND AND DIRECTING THE CITY MANAGER TO COMPLY WITH REQUIREMENTS OF GOVERNMENT CODE 54220 FOR SALE OF SURPLUS LAND /s/Kristine CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 11' Reading ❑ Ordinance on 2" ° Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO I�I��l�1�l:3ga RECOMMENDED ACTION Adopt a resolution declaring City -owned property located at 203-205 W Civic Center Drive as surplus land and direct the City Manager to comply with the requirements of Government Code 54220 et seq. for the sale of surplus land. DISCUSSION The City owns real property located at 203-205 W Civic Center Drive, commonly known as the YMCA building. A map that details its exact location is attached (Exhibit 2)The YMCA building was purchased by the City in 1992. The building has been vacant since that time and has been in serious disrepair due to age and vandalism. Recent efforts have been taken to remediate several outstanding issues, such as asbestos clean-up and the placement of security cameras at the site. Over the years, the City has made several attempts to solicit proposals for the site, but the substantial City subsidy required by developers and end users has been an issue. To bring the building up to current City codes, there would be an anticipated investment of up to $5 million dollars for seismic retrofit, fire suppression, electrical/plumbing to current code, and other structural improvements. SURPLUS LANDS ACT The Surplus Land Act requires all local agencies to prioritize affordable housing, as well as parks and open space, when disposing of surplus land. New legislation, which took effect on January 1, 2020, requires that before a local agency take any action to dispose of land, the land must be declared either "surplus land" or "exempt surplus land," as supported by written findings. Furthermore, although the City has its own Disposition Policy, section 54221(b)(1) of the California Government Code requires that the land be declared "surplus land" or "exempt surplus land", before a local agency may take any action to dispose of it consistent with an agency's policies or procedures. 55A-1 203-205 W Civic Center Drive (YMCA Building) Surplus Land Resolution March 3, 2020 Page 2 Upon the City's determination that the YMCA property is surplus land, the procedures set forth in Government Code Section 54220 et seq. must be followed. Those procedures require the City to offer the sale or lease of surplus land to certain public entities for a period of 60 days, as follows: 1. For the purpose of developing low- and moderate -income housing, a written notice of availability of the surplus land shall be sent to any "local public entity" as defined in Health and Safety Code Section 50079 within whose jurisdiction the surplus land is located and to "Housing Sponsors" that have notified the California Department of Housing and Community Development ("HCD") of their interest in surplus land. Local public entities to be notified include the City of Santa Ana Housing Authority. 2. For open -space purposes, a written notice of availability of the surplus land shall be sent to the City of Santa Ana Parks and Recreation Agency, the County of Orange OC Parks, the State Resources Agency or any agency that may succeed to its powers. 3. For the purpose of use by a school district for school facilities construction or open -space purposes, a written notice of availability of the surplus land shall be sent to the Santa Ana Unified School District. If the City receives a letter of interest from any of the above entities, then the City would enter into good faith negotiations concerning the price and terms of the sale with that entity for a period of 90 days. If the price or 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. Any agreement memorializing the terms of a proposed sale of the YMCA site would be brought to the City Council for future consideration. IMPACTS ON CURRENT PROJECTS In February 2018, the City released a Request for Qualifications and Development Concepts for the renovation and reuse of the former YMCA Building. The RFP was sent directly to over 100 developers, including over 15 affordable housing developers, and was posted on the City's PlanetBids system for all interested parties to bid on. Four proposals were received in April 2018 for this solicitation. At the September 3, 2019 City Council meeting, the City Council authorized the negotiation of a Disposition and Development Agreement (DDA) for the renovation and reuse of the YMCA land. The new Assembly Bill revises Government Code Section 54234, to state "if a local agency, as of September 30, 2019, had entered into an exclusive negotiating agreement or legally binding agreement to dispose of land, the new provisions of the Act imposed by AB 1486 will not apply to the transaction provided the land is sold by December 31, 2022." Because the City is still in negotiations and has not entered into a formal agreement for the YMCA land, it must comply with the new provisions in the Surplus Lands Act by adopting a resolution (Exhibit 1) declaring the land surplus and again making it available to the entities listed above. If the price or terms cannot be agreed upon in a good faith negotiation period, the land may be 55A-2 203-205 W Civic Center Drive (YMCA Building) Surplus Land Resolution March 3, 2020 Page 3 disposed of without further regard to surplus land procedures. This would enable the City to continue its negotiations with Caribou Industries. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #3 - Economic Development, Objective #5 (leverage private investment that results in tax base expansion and job creation citywide), Strategy A (identify and market underutilized properties for new development that will create new jobs and expand the City's tax base). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Executive Director Community Development Agency Exhibit: 1. Resolution 2. Map of property 55A-3 RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING CITY -OWNED PROPERTY LOCATED AT 203-205 W. CIVIC CENTER DRIVE, AS SURPLUS LAND AND DIRECTING THE CITY MANAGER TO FOLLOW THE PROCEDURES SET FORTH IN THE SURPLUS LAND ACT, CALIFORNIA GOVERNMENT CODE SECTION 54220, ET SEQ., AS AMENDED ON JANUARY 1, 2020, FOR THE SALE OF SURPLUS LAND 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. City of Santa Ana (the "City") owns the real property commonly known as the YMCA (the 'Property") located at 203-205 W. Civic Center Drive, consisting of 27,331 square feet (0.63 acres), including a vacant 44,468 square foot building that was constructed in 1921, APN# 005- 184-25, zoned SP3, and listed on the National Register of Historic Places in 1993 and to the Santa Ana Register of Historic Properties in 2001 (Landmark designation); and B. The Property was constructed in 1921 and was operated as a YMCA until its closing in 1989; and C. The Property was acquired by the City of Santa Ana in 1992. D. The Property has remained vacant since the closure of the YMCA and has been in serious disrepair due to age and vandalism over time; and E. Over the years, the City has made several attempts to market/entertain proposals for the site, but the substantial City subsidy required by developers and end users has been an issue. To bring the building up to current City codes, there would be an anticipated investment of up to $5 million dollars for seismic retrofit, fire suppression, electrical/plumbing to current code, and other structural improvements; and F. The sale proceeds and property tax generated may provide funding to enhance City services, and the future development of the Property Resolution No. 2020-XXX Page 1 of 3 55A-4 would eliminate blight and promote neighborhood livability and sustainability. Section 2. The City Council hereby finds and declares that the Property is no longer necessary for the City's use and is therefore surplus land as defined in California Government Code section 54221, based on the true and correct written findings found in Section 1, incorporated herein by this reference. Section 3. The City Council hereby authorizes the City Manager to send written notices of availability of the Property for sale, to negotiate the terms of a proposed sale of the Property with an interested public entity or, if none, another interested party, and to otherwise follow the procedures of the Surplus Land Act, California Government Code section 54220, et seq., as amended on January 1, 2020, as applicable to a proposed sale of the Property. Section 4. Any proposed agreement for the sale of the Property shall be subject to the approval of the City Council. Section 5. The sale of the Property as surplus is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15312 (Surplus Government Property Sales). However, if development was proposed on the Property by a subsequent buyer, then that development would be reviewed under CEQA. Section 6. 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 day of , 2020. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Ryan . id-g�ie Assistant City Attorney Resolution No. 2020-XXX Page 2 of 3 Miguel A. Pulido Mayor 55A-5 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2020-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2020-XXX Page 3 of 3 y EXHIBIT 2 ATTACHMENT 2 MAP OF PROPERTY YMCA-203-205 West Civic Center Drive The site is a 27,331 square foot (approximately 0.63 acres) rectangular parcel on the North side of Civic Center Drive between Broadway and Sycamore Street (Assessor's map below). 0.866 AC. a s y p c n A IM 46 is° O O R 7 — E i II7' S JACOB ROSS e At C 04ENT SPI G '$ w 1 !� A y I 0.637 AC. A [ ? I4 v E r, s59.u" LCIVIC CENTER DRIVE CftfIIR+CJf S TREE T 55A-7