SR-03-12-2013-3E - 407-003-36City Council Meeting: March 12, 2012
Agenda Item:
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Disposition of City -Owned Property at 1122 22nd Street
Recommended Action
Staff recommends the City Council adopt the attached resolution (Attachment A)
declaring that the 1122 22nd Street property is not needed for any public purpose and is
therefore surplus property, and authorize staff to solicit bids for the sale of
112222 rld Street at no less than market value.
Executive Summary
At its December 11 2012 meeting, the City Council directed staff to pursue disposition
of the City -owned property at 1122 22nd Street (Property) to reduce costs associated
with maintaining the vacant property and to use sale proceeds for affordable housing.
Staff recommends placing the Property on the market for sale, pursuant to the process
established in Santa Monica Municipal Code Section 2.24.110.
Background
The Property is a single - family residence located one block north of Wilshire Boulevard,
as shown in Attachment B. The Property was granted to the City in 1994 by the Estate
of Anna Blackburn, with possessory interest to her caretaker, who has since passed
away. The Property was constructed in 1925, is in poor condition and is currently
vacant. The City currently spends approximately $7,500 per year for property
management and maintenance through a third -party property management contract
approved by Council on September 13, 2011.
The Property's lot size is approximately 5,920 square feet and the existing home is
1,107 square feet. The zoning designation is R -2, which allows for a low density
multi - family development and would permit a new development of approximately four
residential units.
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Discussion
Staff has examined various strategies to create affordable rental or ownership
opportunities on the site. All of the scenarios would involve a significant contribution of
City financial resources and staff time but would yield only a small number of affordable
housing units. The small economy of scale achievable at the site would result in a high
per -unit development cost with minimal leveraging potential, requiring a high City
subsidy to achieve affordability and financial feasibility. Therefore, staff recommends
City resources be directed to affordable housing opportunities with potential to yield a
greater number of units than possible at 1122 22 "d Street. Consistent with that
approach, staff proposes the sale of the Property with the proceeds to be deposited into
the Citywide Housing Trust Fund.
To comply with Municipal Code Section 2.24.110 regarding the sale of real property, the
City Council must adopt the resolution provided in Attachment A declaring the Property
is not needed for any public purpose and is therefore surplus property. Additionally,
before inviting bids for the sale of the Property, staff would comply with Government
Code Section 54222, which requires various public agencies (school districts,
county, etc) be allowed the first opportunity to make a purchase offer for the Property.
Staff would commission an independent appraisal that would establish a minimum
qualifying purchase offer price and return to Council for consideration of the bids.
The Council could either award the sale of the Property to the highest and best bidder
or may reject any and all bids submitted and authorize the sale of the Property in the
open market.
Environmental Analysis
Sale of the subject property is categorically exempt from environmental review pursuant
to California Environmental Quality Act (CEQA) Guideline 15312, as it involves the sale
of surplus governmental property for which the use of the property has not changed
since it was bequeathed to the City. Should the successful purchaser of the property
pursue development of the site, such development would be subject to CEQA review.
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Financial Impacts & Budget Actions
There is no immediate financial impact associated with authorizing staff to pursue
disposition of the Property, subject to final City Council approval of any sale.
The amount of sale proceeds would be identified when staff returns to Council for
consideration of entering into a purchase and sale agreement. Sale proceeds would be
deposited into the Citywide Housing Trust Fund.
Prepared by: David S. White, Senior Development Analyst
Approved:
A
e
Andy Agle, DirectorC/
Housing and Economic Development
Forwarded to Council:
Rod Gould
City Manager
Attachments:
A. Resolution Declaring 1122 22 °d Street Surplus Property
B. Location Map of the Property
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Reference Amended
Contract No. 9052 (CCS)