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HomeMy WebLinkAboutItem No. 13 - Declare Certain SA Owned Land Surplus Sumner/Ellis Minthorn Site City of Lake Elsinore 130 South Main Street Lake Elsinore,CA 92530 CITY OF OF www.lake-elsinore.org LAKE LSINOR-E DREAM City Council Agenda Report File Number: ID# 22-084 Agenda Date: 2/22/2022 Version: 1 Status:Approval Final In Control: City Council/Successor Agency File Type: Successor Consent Calendar Agenda Number: 13) Declare Certain Successor Agency-Owned Land Surplus (Sumner/Ellis Minthorn Site, APN 377-292-017) and Authorize the Executive Director to Send A Notice of Availability as to the Surplus Land Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DECLARING CERTAIN SUCCESSOR-AGENCY OWNED REAL PROPERTY TO BE SURPLUS PURSUANT TO THE SURPLUS LAND ACT (GOV CODE § 54220 ET SEQ.). City of Lake Elsinore Page 1 Printed on 211712022 CITY OF LADE L� LSINOP E DREAM EXTREME- REPORT TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE To: Honorable Chair and Members Of The Successor Agency From: Jason Simpson, Executive Director Date: February 22, 2022 Subject: Declare Certain Successor Agency-Owned Land Surplus (284 Ellis Street, APN 377-292-017) and Authorize the Executive Director to Send Notices of Availability as to the Surplus Lands Recommendation Adopt a Resolution of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Declaring that Certain Successor Agency-Owned Real Property to be Surplus Pursuant to the Surplus Land Act (Gov. Code § 54220 et seq.) Background 1. Ellis Site: In 1994, the former Redevelopment Agency of the City of Lake Elsinore acquired a 0.21 acre parcel with a common address of 284 Ellis Street and otherwise identified as APN 377-292-017 (the "Ellis Site"). In 2011, the California Legislature enacted Assembly Bill 1x26 to eliminate redevelopment agencies. In January 2012, the City of Lake Elsinore elected to serve as the Successor Agency to the former Redevelopment Agency. As part of that dissolution process, the Successor Agency became successor in interest to certain properties formerly owned by the Redevelopment Agency, including the Ellis Site. 2. Surplus Land Act: The Ellis Site is the last remaining property owned by the Successor Agency that will be offered for sale and the Successor Agency is ready to engage in discussions regarding proposed uses and disposition. However, for those discussions to progress, the Successor Agency must also satisfy additional State law requirements. Beginning in January 2021, properties like the Ellis Site became subject to the California Surplus Land Act. The Surplus Land Act defines surplus land broadly as "land owned in fee simple by any local agency for which the local agency's governing body takes formal action in a regular public meeting declaring that the land is surplus and not necessary for the agency's use." (Gov. Code § 54221(b)(1).) In addition to requiring a formal declaration of surplus for nearly any disposition of a local agency's land, Assembly Bill 1486 made various amendments to the Surplus Land Act concerning the process for disposition of surplus land by cities and other local agencies. These new laws became effective January 1, 2020 with a primary intent to prioritize and facilitate development of affordable housing around the State. The California Department of Declaration of Surplus Property February 22, 2022 Page 2 Housing and Community Development (HCD) Is charged with the oversight and enforcement of the surplus property inventory and notification process. The new law requires that any land "not necessary for the agency's use" be declared surplus prior to disposition of the land. Any land that is declared as surplus must be noticed to other public agencies and prospective affordable housing developers that have registered with HCD prior to any solicitation or negotiation with other developers or interested parties. Noticed agencies and registered housing developers have 60 days from the date of notice to express interest in the property and 90 days to complete good-faith negotiations. If terms are not agreed upon between the interested party and the Successor Agency within this 90-day period of good faith negotiations, the Successor Agency may negotiate with any other developers or interested parties for the disposition of the surplus land. Discussion This section further describes the property the Successor Agency owns that staff recommends be designated as surplus land. The property is listed in Table 1, illustrated in Figure 1, and are discussed in more detail below. Table 1: Potential Surplus Land Site Name Assessor Parcel Address/Location Number(s) • Ellis Site 377-292-017 284 Ellis Street 0.21 Declare Surplus Figure 1: Proposed Surplus Land 71 - , r 4.: 1. L• tl ■ Declaration of Surplus Property February 22, 2022 Page 3 • Ellis Site — This site was originally acquired by the former Redevelopment Agency as part of a structure abatement proceeding for eliminating blight in the redevelopment project area. The current zoning designation is for high density residential. Staff recommends declaring this site surplus. As part of the proposed action, staff also seeks authorization for the Executive Director to send out written notices of availability to appropriate public agencies and prospective affordable housing developers, as designated by the new law. As noted above, recipients of the notice would then have 60 days to indicate their interest in the purchase of the surplus land. If a recipient timely express interest in the purchase, the Successor Agency must enter into good faith negotiations for a period of not less than 90 days. The Successor Agency would not be required to convey the land to the interested party. If terms of sale are not agreed upon following the good faith negotiation, the land may be otherwise disposed of or sold by the Successor Agency. In addition, prior to any conveyance of the Ellis Site, the Successor Agency will seek approval from the Oversight Board and California Department of Finance. California Environmental Quality Act (CEQA) The Successor Agency declaration that a parcel is surplus property is in compliance with a statutory requirement and is not part of a project that has been identified, designed or funded. No physical change in the environment would occur. The action is an administrative action that would not result in direct or indirect physical changes in the environment and is not a project as defined in CEQA. (CEQA Guidelines § 15378(b)(4); 15060(c)(3)). Fiscal Impact Proceeds from the sale of the Ellis Site may be used to meet the Successor Agency enforceable obligations as "Other Revenues" through the ROPS process or may be allocated to the taxing entities as determined by the County Auditor-Controller pursuant to Health and Safety Code Section 34188. Attachments A— Resolution RESOLUTION NO. SA-2022- A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DECLARING CERTAIN SUCCESSOR AGENCY-OWNED REAL PROPERTY TO BE SURPLUS PURSUANT TO THE SURPLUS LAND ACT (GOV. CODE § 54220 ET SEQ.) Whereas, the Surplus Land Act, Government Code Section 54220, et seq., defines surplus property as land owned by any local agency that is not necessary for the agency's use; and, Whereas, staff has identified a certain site that may not be necessary for the Successor Agency's use as defined in State law. NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1: The foregoing recitals are true and correct and are hereby incorporated into these findings by this reference. Section 2: The certain Successor Agency-owned property, and any rights, title, and interest therein, listed in the table below is declared surplus pursuant to Government Code Section 54220 et seq.: Address/LocationSite Name Assessor Parcel • •- Number(s) Ellis Site 377-292-017 284 Ellis Street 0.21 Surplus Section 3: The aforementioned land is not necessary for the Successor Agency's use. Section 4: The Executive Director or authorized designee is authorized to prepare and send all notices required by State law related to the declaration of the above-identified surplus property including, without limitation, notices of availability of the surplus property as provided for by State law. Section 5: The Successor Agency declaration that the aforementioned property is surplus property is in compliance with a statutory requirement and is not part of a project that has been identified, designed or funded. No physical change in the environment would occur. Accordingly, the action herein is an administrative action that will not result in direct or indirect physical changes in the environment and is not a project as defined in CEQA. (CEQA Guidelines § 15378(b)(4); 15060(c)(3)). Section 6: This Resolution shall take effect immediately upon its adoption. Reso. No. SA-2022- Page 2 of 2 PASSED, APPROVED AND ADOPTED at a regular meeting of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 22nd day of February, 2022. Timothy J. Sheridan, Chair Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Attest: Candice Alvarez, MMC Agency Secretary STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Candice Alvarez, MMC, Agency Secretary of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, do hereby certify that Resolution No. SA-2022- was adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, at the regular meeting of February 22, 2022, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Candice Alvarez, MMC Agency Secretary