Item No. 1.
| MEETING DATE: 06/05/2023 |
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| TO: | HONORABLE CHAIR AND DIRECTORS |
| FROM: | JIM SADRO, EXECUTIVE DIRECTOR By: Miranda Cole-Corona, Housing and Economic Dev Manager |
| SUBJECT: | APPROVE A RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LA HABRA, CALIFORNIA, DECLARING PROPERTY COMMONLY KNOWN AS A PORTION OF THE LA HABRA MARKET PLACE SHOPPING CENTER PARKING LOT, APN 018-381-64, AS EXEMPT SURPLUS LAND
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RECOMMENDATION:
That the Successor Agency:
A. APPROVE AND ADOPT RESOLUTION NO. ___ ENTITLED: A RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LA HABRA, CALIFORNIA, DECLARING PROPERTY COMMONLY KNOWN AS A PORTION OF THE LA HABRA MARKET PLACE PARKING LOT, APN 018-381-64 AS EXEMPT SURPLUS LAND;
B. Authorize staff to submit a copy of the Resolution to the California Department of Housing and Community Development for review; and,
C. Authorize staff to prepare and release advertisements and associated public notices soliciting proposals from interested parties for the disposition of the property.
DISCUSSION:
The Surplus Land Act (SLA) requires public agencies to coordinate land development activities with the California Department of Housing and Community Development (HCD). The SLA requires public agencies to declare publicly owned land as either surplus land or exempt surplus land at a public meeting, prior to issuing a Request for Proposals or Notice of Availability to interested parties.
If land owned by the public agency is deemed to be surplus land, it is subject to specific rules and requirements specified in the Surplus Land Act Guidelines, published by HCD in April 2021. If land owned by a public agency is deemed to be exempt surplus land, after declaring the land exempt, the SLA requires the public agency to provide written notice to HCD to confirm the exemption complies with the SLA. Upon confirmation, but no less than 30 days from the date the agency provides written notice to HCD, the disposition of the land may proceed without continued coordination with HCD.
Pursuant to HCD's Surplus Land Act Guidelines, property may be declared exempt surplus land for various reasons. Government Code Section 54221, subdivision (f)(1)(G) states "exempt surplus land" includes: "Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited..."
On June 27, 1990, the Redevelopment Agency of the City of La Habra, California (“Former Agency”) acquired title to the subject property by Grant Deed, which was recorded for the property commonly known as a portion of the La Habra Market Place Shopping Center Parking Lot, APN 018-381-64 (Property). The Grant Deed included the following restrictions: "The Grantee hereby covenants and agrees, for itself and its successors and assigns, that Grantee shall use, improve and operate the Property solely for a surface level public parking lot and no other use shall be allowed thereon."
Staff provided written correspondence to HCD on October 10, 2022, providing documentation as to why the Property should be considered as Exempt Surplus Land. On April 6, 2023, HCD concurred with staff's findings. In their concurrence, HCD noted "because the restrictions require that the Property be used for surface level parking and no other use is allowed, housing is prohibited on the Property and there isn't a feasible method to mitigate the restriction on the property."
With HCD's concurrence, staff has determined that the Property qualifies as exempt surplus land; and therefore, recommends that the Successor Agency, acting on behalf of the Former Agency, adopt the attached resolution with the findings for the exemption. Pursuant to the SLA, staff will provide written notice of these findings to HCD at least 30 days prior to the disposition of the Property.
Staff further recommends that the Successor Agency authorize staff, upon adoption of the resolution and the expiration of the 30-day notice period to HCD, to take all necessary and reasonable steps to (1) prepare and release advertisements and associated public notices to solicit proposals from interested parties for the disposition of the Property in compliance with the Orange Countywide Oversight Board's Resolution No 22-026, and (2) upon identification of a potential buyer, negotiate a purchase and sale agreement. Staff shall proceed with the foregoing in coordination with the legal counsel and subject to final approval of any disposition by the Successor Agency’s governing board.
If land owned by the public agency is deemed to be surplus land, it is subject to specific rules and requirements specified in the Surplus Land Act Guidelines, published by HCD in April 2021. If land owned by a public agency is deemed to be exempt surplus land, after declaring the land exempt, the SLA requires the public agency to provide written notice to HCD to confirm the exemption complies with the SLA. Upon confirmation, but no less than 30 days from the date the agency provides written notice to HCD, the disposition of the land may proceed without continued coordination with HCD.
Pursuant to HCD's Surplus Land Act Guidelines, property may be declared exempt surplus land for various reasons. Government Code Section 54221, subdivision (f)(1)(G) states "exempt surplus land" includes: "Surplus land that is subject to valid legal restrictions that are not imposed by the local agency and that would make housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. An existing nonresidential land use designation on the surplus land is not a legal restriction that would make housing prohibited..."
On June 27, 1990, the Redevelopment Agency of the City of La Habra, California (“Former Agency”) acquired title to the subject property by Grant Deed, which was recorded for the property commonly known as a portion of the La Habra Market Place Shopping Center Parking Lot, APN 018-381-64 (Property). The Grant Deed included the following restrictions: "The Grantee hereby covenants and agrees, for itself and its successors and assigns, that Grantee shall use, improve and operate the Property solely for a surface level public parking lot and no other use shall be allowed thereon."
Staff provided written correspondence to HCD on October 10, 2022, providing documentation as to why the Property should be considered as Exempt Surplus Land. On April 6, 2023, HCD concurred with staff's findings. In their concurrence, HCD noted "because the restrictions require that the Property be used for surface level parking and no other use is allowed, housing is prohibited on the Property and there isn't a feasible method to mitigate the restriction on the property."
With HCD's concurrence, staff has determined that the Property qualifies as exempt surplus land; and therefore, recommends that the Successor Agency, acting on behalf of the Former Agency, adopt the attached resolution with the findings for the exemption. Pursuant to the SLA, staff will provide written notice of these findings to HCD at least 30 days prior to the disposition of the Property.
Staff further recommends that the Successor Agency authorize staff, upon adoption of the resolution and the expiration of the 30-day notice period to HCD, to take all necessary and reasonable steps to (1) prepare and release advertisements and associated public notices to solicit proposals from interested parties for the disposition of the Property in compliance with the Orange Countywide Oversight Board's Resolution No 22-026, and (2) upon identification of a potential buyer, negotiate a purchase and sale agreement. Staff shall proceed with the foregoing in coordination with the legal counsel and subject to final approval of any disposition by the Successor Agency’s governing board.
FISCAL IMPACT/SOURCE OF FUNDING:
The costs associated with the processing of this Resolution and its submittal to HCD, as well as the disposition of the subject property, are part of the normal operating costs associated with the General Fund budget for the Community and Economic Development Department.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
General Plan Relevance
Goal LU 2 Land Use Diversity and Choices for Residents
LU 2.2 Places to Shop. Provide for, and encourage, the development of a broad range of uses in La Habra's commercial centers and corridors that reduce the need to travel to adjoining communities, and which subsequently capture a greater share of local spending.
City Council Goals and Objectives
Goal 5 - Development Activity and Business Assistance
Objective B - Identify underutilized commercial properties that have sales tax generating potential and work with property owners and the brokerage community to develop land to its highest and best use
Objective D - Continue to improve the City's business retention and expansion program
Goal LU 2 Land Use Diversity and Choices for Residents
LU 2.2 Places to Shop. Provide for, and encourage, the development of a broad range of uses in La Habra's commercial centers and corridors that reduce the need to travel to adjoining communities, and which subsequently capture a greater share of local spending.
City Council Goals and Objectives
Goal 5 - Development Activity and Business Assistance
Objective B - Identify underutilized commercial properties that have sales tax generating potential and work with property owners and the brokerage community to develop land to its highest and best use
Objective D - Continue to improve the City's business retention and expansion program