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APPROVE SALE OF EXEMPT SURPLUS REAL PROPERTY LOCATED AT 435 DON CARLOS AVENUE
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Authorizing the filing of Notice of Exemption No. 37-23 under the California Environmental Quality Act (CEQA) for the disposition of exempt surplus real property located at 435 Don Carlos Avenue, APN 079-053-16.
2. Authorizing the disposition of the City-owned parcel located at 435 Don Carlos Avenue to Maurilio, Flora, and Luis Arroyo in the amount of $5,000.
3. Authorizing the City Manager, or designee, to execute the Purchase and Sale Agreement with Maurilio, Flora, and Luis Arroyo.
4. Authorizing the City Manager, or designee, to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The property located at 435 Don Carlos Avenue was acquired by the City of Stockton in 1966 for use as a water well and pressure tank that has since been removed and is no longer in use. An offer of $5,000 has been received from Maurilio, Flora, and Luis Arroyo, joint owners of the adjoining property. All City Departments were surveyed to determine the property as surplus, and City Council authorized the surplus designation on August 22, 2023 (Attachment A - Resolution 2023-08-22-1208).
Disposition of this parcel will allow the property to serve a useful purpose and provide revenue to the City. This action will allow for City-owned real property, which is unnecessary for present or prospective public use, to be eliminated from the maintenance program, thereby reducing future City costs. Staff recommends that the City Council adopt the proposed resolution for the disposition of real property located at 435 Don Carlos Avenue, APN 079-053-16, in the amount of $5,000 (Attachment B - Vicinity Map and Attachment C - Aerial Map).
DISCUSSION
Background
Administrative Directive HRD-02 (Attachment D - HDR-02) establishes standard procedures for the sale of real property belonging to the City. Specifically, the procedures allow all real property that is surplus to the City’s present and anticipated future needs to be sold and serve a useful purpose, be returned to the active tax rolls, and provide revenue to the City’s General Fund. HRD-02 requires that any department that becomes aware that a City property is no longer necessary for use notify the Economic Development Department (EDD), which will explore the possibility of disposing of the property. EDD will initiate the process by circulating details about the property to all City Departments to determine if the property is excess property. Once the property is deemed excess, EDD submits the property to the City Manager, together with a recommendation that the property be declared excess and sold. The Council must approve the disposition of City real property.
The State of California’s Surplus Land Act (AB 1486) requires that the City send notices offering the property first to public agencies and any developers who have notified the California Department of Housing and Community Development (HCD) of their interest in developing affordable housing on surplus land. Public agencies and developers will have sixty (60) days to notify the City in writing of interest in purchasing or leasing any properties. Should the City receive notification from a party interested in acquiring or leasing the subject property, a 90-day good faith negotiation period begins to determine if a mutually satisfactory sales price and terms can be agreed upon. If the price or terms cannot be agreed upon after the good faith negotiation period, the land may be disposed of. If the City receives no inquiries, it may then list the subject property for sale or solicit proposals for development. Ordinarily, this process must be followed before the City can dispose of any City-owned real property assets. However, because the subject property was deemed exempt surplus by Resolution 2023-08-22-1208, the City did not have to adhere to all noticing provisions of the Surplus Land Act.
The 435 Don Carlos Avenue property consists of approximately 0.04-acres of vacant land, is zoned RL (Low-Density Residential) and is a former well site.
Present Situation
In February 2021, City staff and Buyer agreed to a purchase price of $5,000 for the parcel. Given that the subject parcel is small in size and is not capable of independent development, staff believes $5,000 is a fair market valuation. The Buyer intends to incorporate the parcel into their adjoining residential property and pursue the potential construction of an Accessory Dwelling Unit (ADU).
NOTIFICATION
As required for the lease or sale of real property, a notice in accordance with the provisions of Article V, Section 510, of the Charter of the City of Stockton was published in the official newspaper of the City at least ten (10) days before such action is taken. A public notice was published in the legal notice section of The Record on June 7, 2024.
ENVIRONMENTAL CLEARANCE
It has been determined by the Community Development Department that this activity/project regarding the sale of the property located at 435 Don Carlos Avenue, APN 079-053-16, is Categorically Exempt under CEQA Guidelines and is granted a “general rule exemption” under Section 15061(B)(3). In accordance with Section 65402 of the Government Code, it has been determined that this project or action conforms to the City’s General Plan designation for the site and with the General Plan Policy Document, as amended.
FINANCIAL SUMMARY
If approved by Council, and upon close of escrow of the property, the gross amount of $5,000, less closing costs, advertising, filing, and miscellaneous fees, will be deposited into 0000-000-520001-100-000-00-00-000-000-, the Disposition/Fixed Assets/Sale of Fixed Assets Fund.
Attachment A - Resolution 2023-08-22-1208
Attachment B - Vicinity Map
Attachment C - Aerial Map
Attachment D - Administrative Directive HRD-02