SR-08-13-2013-3B - 901-020 / 401-028From: Andy Agle, Director of Housing and Economic Development
Subject: Disposition of City -Owned Property at 1731 -1733 20" Street
Recommended Action
Staff recommends the City Council:
1) adopt the attached resolution (Attachment A) declaring that the City -owned
remnant parcel at 1731 -1733 20th Street is not needed for any public purpose
and is therefore surplus property; and
2) authorize the City Manager to negotiate and execute a purchase and sale
agreement with the Crossroads School of Arts and Science for the sale of this
remnant parcel.
Executive Summary
The City -owned remnant parcel at 1731 -1733 20th Street is not needed for any public
purpose and is therefore surplus property. Staff recommends that Council adopt the
attached resolution and authorize staff to negotiate sale of the remnant parcel to
facilitate the highest and best use for this property.
Background
In the process of developing Interstate -10 in the 1960s, a remnant piece of land was
created and deeded to the City. This remnant parcel is approximately 772 square feet
in size and is located within a subdivided lot owned partially by the Crossroads School
for Arts and Sciences (School). The remnant parcel has been used as a turn - around for
the alley terminus, but the property has no functional value to City.
Discussion
Staff commissioned an independent appraisal to determine market value and highest
and best use for the remnant parcel. Based on the parcel in its "as -is" condition, the
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highest and best use is joinder to the surrounding lot owned by the School to create a
unified holding for new construction. The independent appraisal determined the value of
the remnant parcel to be approximately $200 per square foot utilizing the market data
approach for fee simple valuation. On June 25, 2013, Council held first reading of an
ordinance approving the development agreement for the School's construction of a new
science building on their property and the subject remnant parcel. The School's
proposed project relies on the City's sale of the remnant parcel.
Municipal Code Section 2.24.110 authorizes Council, by resolution, to allow the sale of
City -owned real property if the property is no longer needed for the purpose acquired or
if the title to the land is no longer needed for any public purpose. Additionally, with at
least five affirmative votes, Council may adopt a resolution authorizing the sale of
property without advertising for bids in cases where public bids would be to no avail and
would cause unnecessary expense and delay, or would not be in the best interest of the
City. In this case, since the highest and best use is selling the property to the adjacent
property owner, soliciting bids would cause unnecessary expense and delay.
Environmental Analvsis
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 deeded to the City in 1968.
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Financial Impacts & Budget Actions
Proceeds from the sale of the remnant parcel will be deposited into the City's General
Fund at account 01221.404170.
Prepared by: Nia Tang, Senior Development Analyst
Approved: Forwarded to Council:
Andy Agle, Director
Housing and Econo
Attachments:
Development
Attachment A: Resolution
Attachment B: Site Map of Property
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Rod Gould
City Manager
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Reference:
Resolution No. 10760 (ccs)
Agreement No. 9776 (ccs)