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AUTHORIZING ACTIONS RELATED TO THE DISPOSITION OF REAL PROPERTY OWNED BY THE CITY OF STOCKTON
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Deeming fourteen (14) City-owned properties, included as Exhibit 1 to the Resolution, as surplus, not necessary for the City’s use, and authorizing the sale or development agreement of the subject properties.
2. Authorizing the City Manager, or designee, to take all the necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
Economic Development Department staff have continued to evaluate the City’s excess real estate assets for potential sale or development and have identified fourteen (14) City-owned marketable properties. As part of the State of California Surplus Land Act, all City excess properties need to be declared surplus and not necessary for the agency’s use by the City Council.
DISCUSSION
Background
Administrative Directive HRD-02 (HRD-02) (Attachment A) 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 investigate 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. Once the property is deemed excess, EDD submits the property(ies) to the City Manager, together with a recommendation that the property be declared excess and sold. The City Manager then advises City Council that the property is excess, and a sale will be attempted.
The Directive also allows the City Council to pass a resolution allowing the sale of City-owned real estate without using the formal bid process. In order to utilize this alternative, either the bid procedure must have been used and no bids received, or the Council must find that such action will be in the best interest of the City, such as issuing an RFI to ensure that the property is developed, taking into consideration the needs of the City and surrounding neighborhood.
Further, the State of California’s Surplus Land Act (AB 1486) that was recently adopted in 2020 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 or lease 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 inquires, we may then list the subject property for sale or solicit proposals for development. This process must be followed before the City can dispose of any City-owned real property assets.
Present Situation
The properties owned by the City that are recommended for sale at this time are included in Exhibit 1 to the respective Resolution and are further described below (Attachment B).
530, 534, 536 East Lafayette Street & 411 South Stanislaus (APN 149-095-02, 03 & 04; 149-261-20):
Property was acquired for purpose of developing affordable housing. The largest parcel is approximately 1.66 acres, the three smaller contiguous parcels are approximately 0.34 acres.
7823 Amber Way (APN 077-300-02):
This parcel was originally acquired for the Hammer Lane widening project which is now complete in this area. The remaining portion, which is approximately 5,009 s.f., is large enough for the development of a single-family home.
7826 Amber Way (APN 077-300-01):
This parcel was originally acquired for the Hammer Lane widening project which is now complete in this area. The remaining portion, which is approximately 4,614 s.f., is large enough for the development of a single-family home.
1450 West Hammer Lane (APN 077-490-01):
This parcel was originally acquired for the Hammer Lane widening project which is now complete in this area. The remaining portion, which is approximately 8,885 s.f., is large enough for the development of a single-family home.
South Pointe - West Weber Avenue (APN 145-270-06, 09 &10; 145-190-03):
This site contains four vacant contiguous parcels located on Weber Avenue and the Deepwater Channel, east of Interstate 5, consisting of approximately nine (9) acres of vacant land. The City currently is in an Exclusive Negotiating Rights Agreement for the development of the site; however, the State is requiring that the City comply with the California Surplus Land Act.
25 North Grant (APN 149-180-17):
The property consists of a cinder block building and parking lot consisting of approximately 9,752 s.f. and is zoned commercial.
725 East Main Street (APN 149-180-21):
This parcel is the former site of the Earle Hotel, which was destroyed by a fire several years ago. The parcel contains approximately 0.34 acres and is zoned commercial.
Miner’s Levee (APN 137-410-09):
This vacant parcel consists of 2.00 acres and is zoned industrial.
City staff is recommending that the City Council deem the above properties as excess and authorize the individual sale or solicit proposals for development of those properties subject to any applicable limitations detailed above. This will be done after the City complies with the State’s Surplus Land Act requirements.
ENVIRONMENTAL CLEARANCE
It has been determined by the Community Development Department that the action/project of the City is exempt from the requirements of the California Environmental Quality Act (CEQA) as the project has been granted a “Statutory Exemption” under article 19 and, specifically by Section 15312, Class 12 of the State CEQA Guidelines. In accordance with Section 65402 of the Government Code, the Community Development Department further determined that the project or actions of the City conforms to the City’s General Plan designation for the site and with the General Plan Policy Document, as amended.
FINANCIAL SUMMARY
There is no financial impact with this action. Sale of surplus property revenues are subject to the City’s Contingent Payment in the settlement agreement with Assured Guaranty. All future dispositions and/or development agreements will be brought back to City Council for consideration.
Attachment A - Administrative Directive HRD-02
Attachment B - Vicinity Maps and Photos of City-owned Properties