MEETING DATE:
March 23, 2021
SUBJECT:
Title
RESOLUTION NO. 2021-8869 - DECLARING CERTAIN REAL PROPERTY IDENTIFIED AS ASSESSOR’S PARCEL NUMBER 219-180-38-00 AS SURPLUS PROPERTY, AUTHORIZING THE ISSUANCE OF ANY APPLICABLE NOTICES OF AVAILABILITY PURSUANT TO THE SURPLUS LANDS ACT PRIOR TO INITIATION OF DISPOSITION EFFORTS WITH RESPECT TO THE SAME, AUTHORIZING THE SUBSEQUENT INITIATION OF NEGOTIATIONS FOR THE SALE OF SUCH PROPERTY, AND FURTHER AUTHORIZING THE CITY MANAGER TO SELL SUCH PROPERTY
Body
Recommendation
Recommendation
ADOPT the proposed Resolution declaring certain real property, identified as Assessor’s Parcel Number 219-180-38-00, as surplus property no longer necessary for the City’s use, authorizing the issuance of any applicable notices of availability of such property pursuant to the Surplus Lands Act prior to initiation of disposition efforts with respect to the same, authorizing the subsequent initiation of negotiations for the sale of such property consistent with the Surplus Lands Act, and further authorizing the City Manager to sell such property.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Not Applicable
Executive Summary
The City of San Marcos (“City”) owns unimproved real property identified as Assessor’s Parcel Number 219-180-38-00, located at the southeast corner of Bent Avenue and Grand Avenue in the City (“Property”).
An adjacent property owner expressed interest in acquiring the Property, which led to an evaluation by the City’s Real Property Services and Engineering Divisions as to whether retention of the real property is necessary to serve a governmental purpose of the City. Staff’s conclusion is that the Property is not needed for the City’s use. To be able to offer the Property for sale, the City must first comply with the Surplus Lands Act, which requires that after it is declared surplus by the City Council it be offered for affordable housing, park, and open space purposes.
The proposed Resolution recommends that the City Council deem the Property surplus, authorize the issuance of any applicable notices of availability of such property prior to initiation of disposition efforts with respect to the same pursuant to the Surplus Lands Act prior to initiation of disposition efforts with respect to the same, authorizing the subsequent initiation of negotiations for the sale of such property consistent with the Surplus Lands Act, and further delegating to and authorizing the City Manager to sell such property, provided the sales price is at or above its appraised value.
Discussion
The California Legislature approved and the Governor signed AB 1486, effective January 1, 2020, which requires that property in excess of an agency’s requirements be deemed surplus, and that prior to disposing of such property or participating in negotiations for the disposition of the property with a prospective transferee, a written notice of the availability of that property be provided to certain entities as specified in Government Code section 54222, and that any interested entities in receipt of such notice contact the City within 60 days after the notice is provided. If any such entities timely respond to the notice, the City is obligated to engage in good faith negotiations in an effort to agree on price and terms for a period of not less than 90 days.
There are exceptions to the definition of “surplus land” which is subject to the requirements of AB 1486, but none of the exceptions now set forth in Government Code section 54221 appear to be applicable to the Property.
The Property is currently vacant, and an adjacent property owner expressed a desire to acquire it. It has been the City’s usual practice to hold real property for investment and income purposes, given its low property tax rate. However, the Property is currently unimproved and does not generate income.
Applicable City Divisions and Departments have evaluated whether the Property is needed for a City purpose, and they have concluded that it is not needed for traffic improvements or other public purpose. Staff therefore recommends that this parcel be deemed to be in excess of the City’s requirements, and that the appropriate and necessary actions be undertaken to allow the sale of the Property.
It is recommended that the City Council, adopt the proposed Resolution to determine that the Property is not necessary for the City’s use, and authorize the City Manager and City Attorney to issue the applicable notices of availability of the property consistent with the Surplus Lands Act., to engage in negotiations with potential purchasers, and to execute and finalize documents for the sale of the Property for at least its appraised value, if not more.
Environmental Review
Adoption of the proposed Resolution does not have the potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and thus does not constitute a “project” as defined by Public Resources Section 21065, and is exempt from CEQA or other environmental review pursuant to CEQA Guidelines section 15061(b)(3).
Fiscal Impact
The proposed action would not result in an immediate fiscal impact to the City other than the out-of-pocket costs for appraisal and related services. The proceeds of any eventual sale of the Property would benefit the City’s General Fund (Fund 100), in an amount representing at least the appraised value of the Property, less any City expenses incurred with respect to the sale. This amount will be budgeted in the Fiscal Year 2021-22 Operating Budget.
Attachment(s)
A. Vicinity Map, Plat, and Overhead View
B. RESOLUTION 2021 - 8869 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY IDENTIFIED AS ASSESSOR’S PARCEL NUMBER 219-180-38-00 AS SURPLUS PROPERTY NO LONGER NECESSARY FOR THE CITY’S USE, AUTHORIZING THE ISSUANCE OF ANY APPLICABLE NOTICES OF AVAILABILITY OF SUCH PROPERTY PURSUANT TO THE SURPLUS LANDS ACT PRIOR TO INITIATION OF DISPOSITION EFFORTS WITH RESPECT TO THE SAME, AUTHORIZING THE SUBSEQUENT INITIATION OF NEGOTIATIONS FOR THE SALE OF SUCH PROPERTY CONSISTENT WITH THE SURPLUS LANDS ACT, AND FURTHER AUTHORIZING THE CITY MANAGER TO SELL SUCH PROPERTY
Prepared by: Helen Holmes Peak, City Attorney
Reviewed by: Michelle Bender, Deputy City Manager
Reviewed by: Jack Griffin, City Manager