HomeMy WebLinkAbout2024-06-11 - AGENDA REPORTS - DECLARING SURPLUS LAND OTN SPO
Agenda Item: 7
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
14)
CITY MANAGER APPROVAL: '
DATE: June 11, 2024
SUBJECT: RESOLUTION DECLARING PROPERTIES OWNED BY THE CITY
OF SANTA CLARITA IN THE OLD TOWN NEWHALL SPECIFIC
PLAN AREA AS SURPLUS LAND
DEPARTMENT: Community Development
PRESENTER: Jason Crawford
RECOMMENDED ACTION
City Council:
Adopt a resolution declaring properties owned by the City of Santa Clarita, Assessor Parcel
Number's (APN) 2831-018-901 thru 906; 2831-018-900; and 2831-019-901 surplus land
under the Surplus Land Act.
2. Authorize City Manager or designee to issue a Notice of Availability in accordance with the
Surplus Land Act.
3. Authorize City Manager or designee to review each Notice of Interest received, if any during
the 60-day Notice of Availability period and then enter into negotiations with responsive
bidder(s) for a period of 90 days, all in accordance with the Surplus Land Act.
4. Authorize the City Manager or designee to execute all documents, subject to City Attorney
approval.
BACKGROUND
The City of Santa Clarita (City) acquired three adjacent individual properties along Main Street
commonly known as the Coffey parking lot property (APN: 2831-018-901 thru 906), the Roger
Dunn property (APN: 2831-018-900) and the Moore's Subs property (APN: 2831-019-901).
These three individual properties consist of eight parcels of land totaling approximately 0.86
acres that together, comprise the property (Property). Existing improvements on the Property
include approximately 85 surface parking spaces available to the public, and one, approximately
4,743 square foot two-story building. The Property is within the Arts & Entertainment Zone of
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the Old Town Newhall Specific Plan.
The Old Town Newhall Specific Plan calls for the development of two public parking structures,
one on the north and one on the south of Main Street. With the property that the City assembled
through the former Redevelopment Agency on the north end of Main Street, the City was able to
develop public parking, negotiate, and then enter into Purchase and Sales Agreements with the
Newhall Crossings and Laemmle projects, which provided an art house movie theatre and a
mixed -use project consisting of ground floor commercial with apartments above.
There is an opportunity to achieve a similar outcome with the Property on the south of Main
Street, increasing the amount of public parking while also facilitating a mixed -use project with
ground floor commercial and apartments above.
The state dissolved Redevelopment in 2012 and then, via AB 1486, the state enhanced the
Surplus Land Act (SLA) in 2020. The SLA, in an effort to incentivize affordable housing,
governs how the City's may dispose of land, limiting the City's ability to use city -owned land for
redevelopment and economic development purposes.
Previously, as was done for the Laemmle and Newhall Crossings project, the City could have
gone through a Request for Proposal (RFP) process to find a development partner, entered into
an Exclusive Negotiating Agreement, and then negotiated with that partner to create a project
that met the City's vision for the property.
Now, however, there are a set of requirements under the SLA, administered by the Department
of Housing and Community Development (HCD), that the City must follow before it can
negotiate any disposition of City -owned land, either for sale or for lease. The City Council must
first declare the property to be `surplus' and issue a Notice of Availability (NOA), by electronic
mail or by certified mail to all of the entities identified in Government Code section 54222,
which include local public entities and housing sponsors that have notified HCD of their interest
in surplus land for the purpose of developing low- and moderate -income housing, so that
affordable housing developers have a chance to determine their interest. The SLA mandates that
the City accept notices of interest for a period of 60 SLA days. Assuming the City is notified in
writing of interest by a developer within the 60-day period, the City must then enter into good
faith negotiations with interested parties for a period of no less than 90 days to determine if an
agreement on price and terms can be made.
Terms the City would intend to meet for this Property include 1) retaining at least the 85 parking
spaces that are currently available to the public on the Property, 2) ensuring that any project
meets the Old Town Newhall Specific Plan regulations including mixed -use with retail on the
ground floor and apartments above, and 3) receiving a fair market value sale of the Property.
The SLA requires that any project agreed to during the 90-day good faith negotiation period, that
includes a minimum of 10 residential units, provides a minimum of 25 percent affordable
housing units. If an agreement on price and terms can be made between the City and a developer
within the 90-day good faith negotiations period, then that agreement would be brought back to
City Council for review.
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If an agreement on price and terms is not met within 90 days, then the City may elect to issue an
RFP to find a development partner that would meet the City's price and terms. Any project that
is agreed to after the 90-day good faith negotiation period, that has a minimum of 10 residential
units, would be required by the SLA to provide a minimum of 15 percent affordable housing
units.
Staff has been working closely with Kosmont Companies to consult on the SLA process, as they
have experience guiding many cities through this process. In advance of this agenda item, HCD
reviewed the draft NOA and staff has incorporated their feedback.
Staff recommends the City Council adopt a resolution to declare the Property as "surplus land"
and complete the surplus property disposition process in accordance with the SLA.
If, at any time, the City Council decides to, it can rescind the declaration of surplus land and the
City would continue to own the Property.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
Resolution
Draft Santa Clarita Notice of Availability
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7.a
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
DECLARING CITY OWNED PROPERTIES ASSESSOR PARCEL NUMBERS 2831-018-901
THRU 906; 2831-018-900; AND 2831-019-901 SURPLUS LAND PURSUANT TO THE
SURPLUS LAND ACT (GOVERNMENT CODE SECTIONS 54220 ET SEQ.)
WHEREAS, the City of Santa Clarita owns certain real Properties, Assessor Parcel
Numbers (APNs) 2831-018-901 thru 906; 2831-018-900; and 2831-019-901 (the Properties),
and;
WHEREAS, the Surplus Land Act, Government Code sections 54220 et seq., applies
when a local agency disposes of "surplus land," as that term is defined in Government Code
section 54221; and
WHEREAS, on October 9, 2019, Governor Newsom signed Assembly Bill (AB) 1486.
AB 1486 significantly amended the Surplus Land Act effective January 1, 2020. These
amendments included, among others, changing the previous, long-standing definitions of
"surplus land" and "exempt surplus land"; providing that property shall be declared either
"surplus land" or "exempt surplus land" before a local agency may take any action to dispose
of it; and adding a new limitation providing that an "agency's use" "shall not include
commercial or industrial uses or activities, including nongovernmental retail, entertainment, or
office development" or "property disposed of for the sole purpose of investment or generation
or revenue"; and
WHEREAS, the Properties would fall within the definition of "surplus land" pursuant
to Government Code section 54221, as amended by AB 1486; and
WHEREAS, in order to pursue new uses for the Properties, including the possible
disposition through a sale or lease of the property, the City must now comply with the Surplus
Land Act as amended by AB 1486 (SLA); and
WHEREAS, pursuant to the SLA, City staff will send a written notice of availability
of the properties by electronic mail or by certified mail to all of the entities identified in
Government Code section 54222; and
WHEREAS, subject to Government Code section 54227, if one of the entities/agencies
desires to purchase or lease the properties after having received notice, it must indicate its
interest to do so in writing within 60 days of the date of the City's notice, and the City and the
entity/agency so responding to the notice may negotiate price andterms forthe disposition of
the Properties; and
WHEREAS, pursuant to Government Code 54223, in the event no agreement is
reached between the City and any interested entity/agency after a good faith negotiation period
of 90 days, the City may elect to issue a Request for Proposal (RFP) to locate a development
partner that would meet the City's price and terms. Any project that is agreed to through the
RFP process, that has a minimum of 10 residential units, would be required by the SLA to
provide a minimum of 15 percent affordable housing units.
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7.a
NOW THEREFORE, the City Council of the City of Santa Clarita, California, does
hereby resolve as follows:
SECTION 1. For the purposes of compliance with the SLA, APNs 2831-018-901 thru
906; 2831-018-900; and 2831-019-901 in the City of Santa Clarita, are hereby declared surplus
land.
SECTION 2. The City Manager, or his designee, is directed to proceed with the
notification and negotiation requirements of the SLA, as amended, to facilitate the possible
disposition and reuse of the Properties.
SECTION 3. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, AND ADOPTED this day of , 2024.
MAYOR
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution No. 24- was duly adopted by the City Council of the City of Santa Clarita
at a regular meeting thereof, held on the day of 2024, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
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7.b
NOTICE OF AVAILABILITY OF SURPLUS LAND
Date: [MONTH] [DAY], [YEAR]
To: Interested Parties
From: City of Santa Clarita
RE: Notice of Availability of Surplus Land — Multiple Parcels in Santa Clarita, CA
As required by the California Surplus Land Act, Government Code ("GOV") § 54220, et seq. (the
"Act"), the City of Santa Clarita ("City") notifies those entities identified in GOV § 54222 of the
availability for lease or purchase of surplus land owned by the City as listed in Exhibit "A" (the
"Property"), and incorporated by reference, for the purposes authorized in the Act.
In accordance with GOV § 54222, please notify the designated contact identified below in writing
of your interest in purchasing the land within 60 days from the date that this Notice of Availability
was sent via electronic mail, which is [MONTH] [DAY], [YEAR]. Should your agency or company
be interested in leasing or purchasing the Property, you must notify the City in writing within 60
days of the date this notice was sent via certified mail or electronic mail.
As required by Government Code Section 54227, if the City receives more than one letter of
interest during this 60-day period, it will give first priority to entities proposing to develop housing
where at least 25 percent of the units will be affordable to lower income households. If more than
one such proposal is received, priority will be given to the proposal with the greatest number of
affordable units. If more than one proposal specifies the same number of affordable units, priority
will be given to the proposal that has the lowest average affordability level.
This Notice of Availability does not obligate the City to sell the Property to any interested party or
to pay any amount incurred in the preparation of the proposal. However, the City must enter into
good faith negotiations with interested parties that provide written notice of interest to the City
pursuant to GOV § 54223. If no agreement is reached on price or terms within a 90-day period in
accordance with GOV § 54223, then the City may elect to market the Property to the general
public. The City may rescind the City's declaration of Surplus Property in its sole discretion.
Notices of Interest
Notice of your intention to lease and/or purchase the Property must be delivered via certified
mail or e-mail to:
SLA Notice of Interest c/o
Jason Crawford
Director of Community Development
City of Santa Clarita
23920 Valencia Boulevard
Santa Clarita, CA 91355
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7.b
E-mail: jcrawford@santa-clarita.com
The e-mail subject should read: "SLA Notice of Interest, [Company Name]"
The City will confirm receipt of any notices of interest received via e-mail with a confirmation e-
mail. If you do not receive confirmation of receipt of an e-mail submittal, please contact Jason
Crawford via telephone at (661) 255-4969.
The 60-day period within which notices must be submitted will close at 5 p.m. in the City on [DAY
OF WEEK] [MONTH] [DAY], [YEAR].
All notices of interest to purchase the Property must include:
1. Date of response
2. Contact name, agency / organization, address, phone number and e-mail of the
responding party
3. A brief description of your agency / organization
4. A description of your plans to develop the Property
Interested parties are also encouraged to provide:
5. Proposed price, terms and conditions for lease and/or purchase of the Property
6. Proposed financing structure / capital stack
Entities proposing to submit a notice of interest are advised to review the requirements set forth
in the Act.
Questions may be directed to Wil Soholt (SVP Kosmont Companies, advisor to City) at (310) 740-
5681 or by e-mail at wsoholt@kosmont.com, or Jason Crawford at (661) 255-4969 or by e-mail
at jcrawford@santa-clarita.com.
The information provided in this notice is believed to be correct, however, the City assumes no
responsibility or liability for its completeness or accuracy. Any entity or individual considering
making an offer on the Property is solely responsible for making its own determination as to the
suitability of the Property for any specific purpose. The Property will be leased or sold "as is" with
no warranties written, implied or expressed by the City and its agents or employees.
The City is not required to lease or sell the Property for less than fair market value.
Any future developer of the Property is solely responsible for obtaining all permits, land use
approvals, and environmental clearances necessary to complete a proposed project.
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7.b
Exhibit "A"
Property
The Property is comprised of eight parcels of land totaling approximately 0.86 acres. Existing
improvements on the Property include surface parking lots and one, approximately 4,743 square
foot two-story building.
In addition to the eight parcels comprising the Property, the City may consider proposals that
include portions or all of the 5t" Street cul-de-sac and/or the eastern half of Main Street fronting
portions of the Property (the "Public Easements") as illustrated in the aerial image below.
The City will only consider responses for the entire Property.
The entire Property is within the Arts & Entertainment Zone of the Old Town Newhall Specific
Plan. Information on the Old Town Newhall Specific Plan can be found on the City's website. The
City desires that any proposed project complies with the existing zoning.
The Property currently provides approximately 85 publicly accessible parking spaces, and the
City desires that any proposed project will continue to provide at least 85 publicly accessible
parking spaces.'
The Property is comprised of Los Angeles County Assessor Parcel Numbers 2831-018-900
through 2831-018-906, and 2831-019-901.
' Parcel 2831-019-901 was retained by the City for public parking purposes as part of the dissolution of
the local redevelopment agency.
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7.b
Jurisdiction Name
City of Santa Clarita
Jurisdiction Type
City / Municipality
South East Corner of the
Site Address/Intersection
intersection of 6t" Street and
Main Street
City
Santa Clarita
Five Digit ZIP Code
91321
County
Los Angeles County
2831-018-900
2831-018-901
2831-018-902
Assessor Parcel Numbers
2831-018-903
2831-018-904
2831-018-905
2831-018-906
2831-019-901
Consolidated Sites
Yes
General Plan Designation
Downtown Newhall Specific
Current
Plan
Arts & Entertainment Zone of
Zoning Designation (Current)
the Old Town Newhall
Specific Plan
Minimum Density Allowed
-0 _
(Units / Acre)
Maximum Density Allowed
Subject to constraints of
(Units / Acre)
building envelope
Parcel Size (Gross Acres)
+/- 0.86
Existing Use/Vacancy
Surface Parking Lots &
Vacant Building
J
_
a
Q
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