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Home My WebLink About75I - PH SALE PROPERTY BRISTOL STREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 CLERK OF COUNCIL USE ONLY: TITLE: APPROVED PUBLIC HEARING — RESOLUTION TO ❑ As Recommended AUTHORIZE NEGOTIATION FOR THE SALE OF ❑ As Amended PORTIONS OF CITY -OWNED REAL PROPERTY El Ordinance on 10Readi AT 827, 829, AND 907 NORTH BRISTOL El Ordinance on 2 Reading Reading ❑ Implementing Resolution STREET ❑ Set Public Hearing For (NONGENERAL FUND) (STRATEGIC PLAN NOS. 6, 1G; 3, 2C} CONTINUED TO VJ FILE NUMBER CI ANAGER Adopt a resolution authorizing direct negotiation for the sale of portions of three City -owned properties at 827, 829, and 907 North Bristol Street, without the need for public auction or competitive bidding, as permitted by Section 2-709 of the Santa Ana Municipal Code upon 2/3 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 827, 829, and 927 North Bristol Street (APN 405-262-21, 22, and 23) were acquired as part of Bristol Street Improvements Phase 3A (Exhibit 1), bound by Civic Center Drive and Washington Avenue. The purchase prices of the three properties acquired by the City were based on appraised values prepared by a state licensed appraiser. The 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. In -N -Out Burgers operates a drive-through restaurant immediately adjacent to the properties. In -N -Out Burgers has approached the Public Works Department to address their drive-through spill-over traffic issues. Due to the restaurant's popularity, spill-over traffic regularly backs up on Bristol Street far enough to block the driveways of adjacent businesses, block pedestrian crosswalks, and interfere with regular traffic. As a result, City staff has received numerous complaints from adjacent businesses, residents, and neighborhoods, including threats of legal action that could result in an involuntary solution. The negotiation of the sale of the properties would be contingent on a redesign of the restaurant's site plan and mitigating the spill-over traffic issue. City staff has been working proactively with In -N -Out Burgers and has reviewed a draft site plan that will triple the drive-through stacking capacity and meet the site vehicular demands. 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. SAMC Section 2-709, however, provides an exemption to this procedure and permits a sale on direct negotiation without the need for public auction or competitive bidding, upon 2/3 vote of the City Council after a duly noticed public hearing. 751-1 Public Hearing — Resolution to Authorize Negotiation for Sale of City -owned Real Property at 827, 829, and 907 N. Bristol Street November 7, 2017 Page 2 Staff recommends direct negotiation with In -N -Out Burgers to ensure that the current traffic issue is mitigated, as well as business and resident complaints are addressed. 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 is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact to the general fund. Revenue from the sale of City -owned real property must be recognized as such by the Select Street Construction Fund and the Measure M2 Street Construction Fund used for its acquisition. Upon completion of negotiations, staff will bring the transaction, including the revenues generated, for City Council authorization to recognize and receive the proceeds. -:! 1 ;ZY2 Fred Mousavipou Executive Director Public Works Agency FM/EWG/JG/KN/ML Exhibits: 1. Location Map 2. Resolution Candida Neal Acting Executive Director Planning & Building Agency 751-2 MATCHLINE SEE BELOW RIGHT 405-282-27 10TH STREET I'_m -T� LEGEND. -WJECT FP.OPEP.TILS SANTA ANA P I CI1Y COUNCL AGENDA DATE NOV. 7, 2017 MELIG VMS FGCCY 405-202-26 405-262-25 405-262-24 405-262-23 405-262-22 405-262-2I a E r a CMC CENTER DR. i L--j- WASHINGTON AVENUE N 40 -27-0-12 r ti N 0 40 -''74'11 g 12TH STREET 405-274-09 405-202-33 405-202-32 405-2662-31 405-262-30 405-2662-29 405-262-29 MATCHLINE SEE TOP LEFT EXHIBIT 1 PUBLIC HEARING - RESOLUTION TO AUTHORIZE NEGOTIATION FOR THE SALE OF PORTIONS OF CITY -OWNED REAL PROPERTY AT 827, 829, AND 907 NORTH BRISTOL STREET (NONGENERAL FUND) ISiralealc Plan No. 6. L G and 3, 2, C) 751-3 PAGE 1 OF 1 751-4 ]mf 10/13/2017 RESOLUTION NO. 2017 -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 827 NORTH BRISTOL STREET, 829 NORTH BRISTOL STREET AND 907 NORTH BRISTOL 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, during the course of the Bristol Street Improvements Project, the City acquired the adjacent real property at 827 North Bristol Street, 829 North Bristol Street, and 907 North Bristol Street, B. The portions of these properties that will remain after the Bristol Project is completed have not been used by the City and are being held for purposes of exchange or sale. C. In -N -Out Burgers operates a drive-through restaurant immediately adjacent to the properties. The City finds that the development of the properties by In -N -Out Burgers to redesign its site plan would serve the public interest by relieving spill over traffic on Bristol Street regularly caused by the restaurant's queueing line, thereby improving access to neighboring properties and relieving congestion on a major street. 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. 2017-xxx Exhibit 2 Page 1 of 3 751-5 W 10/13/2017 F. On November 7, 2017, 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 827 North Bristol Street, 829 North Bristol Street, and 907 North Bristol Street from competitive bidding and authorize direct negotiations for their sale with In -N -Out Burgers, an entity that intends to redesign their existing adjacent site to relieve spill over traffic over Bristol Street, Section 2. The City Council of the City of Santa Ana hereby exempts the sale of portions of the City -owned real property at 827 North Bristol Street, 829 North Bristol Street, and 907 North Bristol 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 In -N -Out Burgers, Inc., 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 7w day of November, 2017. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney 4J�n M. Funk Assistant City Attorney AYES NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers Miguel A. Pulido Mayor 751-6 Resolution No. 2017-xxx Page 2 of 3 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council Resolution No 2017 -XXX to be the original City of Santa Ana on November 7, 2017. Date Jmf 10/13/2017 do hereby attest to and certify the attached resolution adopted by the City Council of the Clerk of the Council City of Santa Ana 751-7 Resolution No. 2017-xxx Page 3 of 3 751-8