SR 03-14-2023 5B
City Council
Report
City Council Meeting: March 14, 2023
Agenda Item: 5.B
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To: Mayor and City Council
From: Danielle Noble, Acting Director, Community Services Department, Housing
and Human Services
Subject: Adoption of Resolution Declaring Surplus Properties
Recommended Action
Staff recommends that the City Council:
1. Declare three City-owned properties located at 1217 Euclid Street (APN 4282-
004-900), 1211-1217 Fourteenth Street (APN 4282-003-900 and -901), and 1146
Sixteenth Street (APN 428-1005-900) as “exempt surplus land” as defined in
Government Code Section 54221(f);
2. Adopt a Resolution declaring the City-owned properties at 1217 Euclid Street,
1211-1217 Fourteenth Street, and 1146 Sixteenth Street as exempt surplus land,
and authorize the City Manager or his or her designee to take implementing
actions necessary to comply with the Surplus Land Act (Government Code
sections 54220 et seq.; and
3. Authorize the City Manager or his or her designee to submit the report of declared
exempt surplus land as part of the Annual Report to the California Department of
Housing and Community Development (HCD), in conformance with state law.
4. Adopt a finding of no possibility of significant effect on the environment pursuant
to Section 15061(b)(3) (Common Sense Exemption) of the California
Environmental Quality Act (CEQA) Guidelines and find that the issuance of a
Request for Proposal for affordable housing on the City-owned properties at 1217
Euclid Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street are
consistent with the certified 6th Cycle Housing Element Environmental Impact
Report.
Summary
Staff requests that Council adopt a resolution (Attachment A) declaring the City-owned
properties at 1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth
Street as exempt surplus land because the City has plans to develop 100% affordable
housing on those properties which meets the criteria for exempt surplus land under the
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Surplus Land Act (SLA). These declarations are consistent with Council’s direction
under the City’s adopted and certified 2021-2029 Housing Element, which identifies
these sites as suitable to accommodate a portion of the City’s share of regional housing
need for lower income households pursuant to State law.
On February 14, 2023, the City declared a Local Emergency on homelessness
(Attachment B), which enables staff to expedite the development of affordable housing
on City-owned land to meet the goals of the 2021-2029 Housing Element. Consistent
with the Emergency Order and the Housing Element, the City will issue a request for
proposals (RFP) for the City-owned properties at 1217 Euclid Street, 1211-1217
Fourteenth Street and 1146 Sixteenth Street. The purpose of the RFP is to select a
development team qualified to develop affordable housing at all three sites. After
evaluating proposals, staff will return to Council with a recommendation for the best
development team.
Discussion
California Surplus Land Act
The California Surplus Land Act (Government Code 54220 et seq.) (SLA) governs the
sale of surplus lands and requires local agencies to prioritize opportunities for certain
uses including affordable housing development for any land the entity may sell or lease.
Surplus land may be declared either “surplus” or “exempt surplus” by the legislative
body of the local agency as supported by written findings. Exempt surplus land does not
have to follow the procedural requirements of the Surplus Land Act, and includes
surplus land that is offered for open, competitive bid for a 100% affordable housing
development. The law requires local agencies to report on the list of surplus lands in the
General Plan Annual Progress Report, which is due April 1 of each year.
Effective January 1, 2020, Assembly Bill (AB) No. 1486 and AB No. 1255 amended the
SLA to require local agencies to formally declare publicly-owned property not necessary
for the local agency’s use, as surplus land or exempt surplus land before beginning the
disposition process. Surplus land must follow a statutory noticing and negotiation period
with certain designated entities, including eligible housing sponsors defined by the
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California Department of Housing and Community Development (HCD). Exempt
surplus land does not have to follow the procedural requirements of the Surplus Land
Act. As provided in the SLA, exempt surplus land includes “surplus land that is put out
to open, competitive bid for a housing development, which may have ancillary
commercial ground floor uses, that restricts 100 percent of the residential units to
persons and families of low or moderate income, with at least 75 percent of the
residential units restricted to lower income households, as defined in Section 50079.5 of
the Health and Safety Code, with an affordable sales price or an affordable rent, as
defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of
55 years for rental housing and 45 years for ownership housing, and in no event shall
the maximum affordable sales price or rent level be higher than 20 percent below the
median market rents or sales prices for the neighborhood in which the site is located.”
The City’s pending RFP for 100% affordable housing development for the properties at
1217 Euclid Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street meets the
criteria for exempt surplus land. The declaration of these properties as exempt surplus
land will allow for the competitive RFP process to proceed in accordance with the SLA.
Housing Element Implementation and Homelessness State of Emergency
On October 11, 2022, the City Council adopted the 2021-2029 Housing Element
(Attachment C), a State-mandated plan for meeting the City’s share of regional housing
needs. State law requires that the Housing Element include an inventory of land that
demonstrates the City’s capacity to realistically accommodate new housing
development at all income levels. To address the City’s shortfall of sites that are
suitable for the creation of housing affordable to low-income households, the City
committed to developing 100% affordable housing on City-owned parcels identified in
Appendix F, Figure F-7 of the Housing Element (Attachment D). As specified in Housing
Element Program 2.E (Attachment E), the City plans to issue at least three RFPs for the
development of affordable housing on City-owned sites, the first of which would be
issued by June 30, 2023.
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On February 14, 2023, the City declared a Local Emergency on homelessness, which
directs staff to streamline, accelerate, and expedite processes which implement
Council-approved policy in the 2021-2029 Housing Element regarding City-owned land
identified for affordable housing, such as issuing requests for proposals to identify
development teams with demonstrated capacity to design, finance, construct, and
operate affordable housing.
Next Steps
Consistent with the goals established in the Emergency Order and the Housing
Element, the City will issue an RFP for the City-owned public parking lots at 1217 Euclid
Street, 1211-1217 Fourteenth Street and 1146 Sixteenth Street. Staff has prioritized the
three public surface parking lots near Wilshire Boulevard and Fourteenth Street for the
first RFP based upon constraints to redevelopment in the near term of the other City-
owned sites. The Housing Element projects capacity for a total of 130 residences
affordable to low- and very low-income households across the three public surface
parking lots near Wilshire Boulevard and Fourteenth Street. Aerial photos and
descriptions of the three sites near Wilshire Boulevard and Fourteenth Street, their
projected housing capacity, and surrounding uses are provided in Attachment F.
The purpose of the RFP process is to evaluate and select a development team that is
qualified to undertake the development of all three sites. The RFP will invite
development teams to submit information about their qualifications, experience, and
financial capacity to undertake and successfully complete affordable housing
development. The RFP will also ask the teams to submit conceptual designs and
service plans to illustrate the team’s overall approach and thought process toward
achieving the City’s affordable housing objectives. Proposers would also be encouraged
to consider and propose approaches to replacing the public parking among the sites.
After evaluating proposals, staff will return to Council for consideration and selection of
a development team. After Council selection of a development team, the team would
further refine the conceptual development in conjunction with input from community
stakeholders through a public outreach process. Staff would return to Council again for
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consideration and approval of an agreement involving a proposed development and the
financial terms associated with use of the City-owned property.
Environmental Review
The declaration of the City-owned properties as surplus lands would have no possibility
of significant effect on the environment, and therefore, is exempt pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act
(CEQA) Guidelines. Additionally, the issuance of a RFP for development of affordable
housing on City-owned properties located near Wilshire Boulevard and 14th Street was
analyzed as part of the 2021-2029 6th Cycle Housing Element Environmental Impact
Report (EIR) [SCH No. 20212269242021] that was certified by Council on October 12,
2021, with an Addendum to the EIR approved on October 11, 2022. This authorization
of an RFP implements a portion of that 6th Cycle Housing Element project.
An analysis has been performed pursuant to CEQA Guidelines §15162 to determine
whether subsequent environmental review is required for the issuance of the RFP.
Based upon this analysis, the following findings are made to support the determination
that no subsequent environmental review is required:
1) No substantial changes are proposed in the project which will require major
revisions of the previous EIR and Addendum due to the involvement of new
significant environmental effects or a substantial increase in the severity of
previously identified significant effects. In this case, there are no changes to the
project.
2) No substantial changes occur with respect to the circumstances under which the
project is undertaken which will require major revisions of the previous
addendum due to the involvement of new significant environmental effects or a
substantial increase in the severity of previously identified significant effects. In
this case, no substantial changes have occurred.
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3) There is no new information, which was not known and could not have been
known at the time of the previous EIR and Addendum that the project will have
significant effect not discussed in the EIR and Addendum.
Based upon these findings, it has been determined that no further environmental
documentation is required for this project.
Past Council Actions
10/11/2022
(Attachment C)
City Council adopted 2021-2029 Housing Element
2/14/2023
(Attachment B)
City Council declaration of Local Emergency on Homelessness
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. Staff will return to Council if specific budget actions are required
in the future. Staff estimates that the potential parking revenue loss due to the closure
of Parking Lots 7, 8 and 12 would be approximately $0.2 million annually. Following
receipt and review of proposals, staff would return to Council with recommendations for
the selection of an affordable housing development team, terms for disposition of City
land, and a possible Housing Trust Fund loan.
Prepared By: Ayala Scott, Senior Development Analyst
Approved
Forwarded to Council
Attachments:
A. Proposed Resolution
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B. February 14, 2023 Staff Report (Web Link)
C. October 11, 2022 Staff Report (Web Link)
D. Housing Element Appendix F, Figure F-7
E. Housing Element Program 2.E
F. Aerial images and site descriptions for Euclid, 14th St. and 16th St. sites
5.B
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City Council Meeting: March 14, 2023 Santa Monica, California
RESOLUTION NUMBER ____________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA, CALIFORNIA, DECLARING THAT CERTAIN REAL
PROPERTY OWNED BY THE CITY LOCATED AT 1217 EUCLID
STREET, 1211-1217 FOURTEENTH STREET, AND 1146 SIXTEENTH
STREET QUALIFIES AS EXEMPT SURPLUS LAND UNDER THE
SURPLUS LAND ACT BECAUSE PROPOSED FOR 100%
AFFORDABLE HOUSING DEVELOPMENT AND NOT NECESSARY FOR
THE CITY’S USE; AND FINDING THAT SUCH DECLARATION IS
EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS
WHEREAS, the California Surplus Land Act (Government Code 54220 et seq.)
(SLA) governs the sale of surplus lands and requires local agencies to prioritize
opportunities for certain uses including affordable housing development for any land the
entity may sell or lease; and
WHEREAS, surplus land may be declared either “surplus” or “exempt surplus” by
the legislative body of the local agency as supported by written findings; and
WHEREAS, the disposition of exempt surplus land does not have to follow the
procedural requirements of the Surplus Land Act, and includes surplus land that is offered
for open, competitive bid for 100% affordable housing development; and
WHEREAS, the SLA and Housing Element Law require local agencies to report
on the list of surplus lands in the General Plan Annual Progress Report, which is due
April 1 of each year; and
WHEREAS, the City of Santa Monica owns those certain parcels at 1217 Euclid
Street, 1211-1217 Fourteenth Street, and 1146 Sixteenth Street (collectively, “the
5.B.a
Packet Pg. 182 Attachment: Proposed Resolution [Revision 3] (5511 : Resolution Declaring Surplus Properties)
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Properties”), which are more specifically described in Exhibit “A,” which is attached to
this Resolution; and
WHEREAS, the Properties qualify as “exempt surplus land” within the meaning of
the Surplus Land Act because the City has plans to develop these properties for qualifying
affordable housing projects; and
WHEREAS, the development of the Properties for affordable housing is consistent
with the City’s adopted and certified 2021-2029 Housing Element, which identifies these
sites as suitable to accommodate a portion of the City’s share of regional housing need
for lower income households pursuant to State law; and
WHEREAS, the City desires to issue a Request for Proposals for developers to
develop affordable housing on the Properties; and
WHEREAS, the accompanying staff report provides supporting information upon
which the declaration and findings set forth in this Resolution are based; and
WHEREAS, the declaration of the City-owned properties as exempt surplus land
would have no possibility of significant effect on the environment, and therefore, is
exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California
Environmental Quality Act (CEQA) Guidelines; and
WHEREAS, the issuance of an RFP for development of affordable housing on City-
owned properties located near Wilshire Boulevard and 14th Street was analyzed as part
of the 2021-2029 6th Cycle Housing Element Environmental Impact Report (EIR) [SCH
No. 20212269242021] that was certified by Council on October 12, 2021, with an
Addendum to the EIR approved on October 11, 2022. This authorization of an RFP
implements a portion of that 6th Cycle Housing Element project.
WHEREAS, an analysis has been performed pursuant to CEQA Guidelines 15162
to determine whether subsequent environmental review is required for the issuance of
the RFP. Based upon this analysis, the following findings are made to support the
determination that no subsequent environmental review is required:
5.B.a
Packet Pg. 183 Attachment: Proposed Resolution [Revision 3] (5511 : Resolution Declaring Surplus Properties)
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1) No substantial changes are proposed in the project which will require major
revisions of the previous EIR and Addendum due to the involvement of new
significant environmental effects or a substantial increase in the severity of
previously identified significant effects. In this case, there are no changes to the
project.
2) No substantial changes occur with respect to the circumstances under which the
project is undertaken which will require major revisions of the previous addendum
due to the involvement of new significant environmental effects or a substantial
increase in the severity of previously identified significant effects. In this case, no
substantial changes have occurred.
3) There is no new information, which was not known and could not have been known
at the time of the previous EIR and Addendum that the project will have significant
effect not discussed in the EIR and Addendum.
NOW, THEREFORE, the City Council hereby resolves as follows:
SECTION 1. The above recitals are true and correct and are a substantive part of
this Resolution.
SECTION 2. The City Council hereby declares that the Properties qualify as
exempt surplus land because proposed for 100% affordable housing development that
meet the criteria of exempt surplus land under the SLA, and the Properties are not
necessary for City’s use.
SECTION 3. This Resolution has been reviewed with respect to the applicability of
the California Environmental Quality Act (Public Resources Code Section 21000 et seq.)
(“CEQA”). City staff has determined that the designation of this property as surplus does
not have the potential for creating a significant effect on the environment and is therefore
exempt from further review under CEQA pursuant to State CEQA Guidelines Section
15060(c)(3) because it is not a project as defined by the CEQA Guidelines Section 15378.
Adoption of the Resolution does not have the potential for resulting in either a direct
5.B.a
Packet Pg. 184 Attachment: Proposed Resolution [Revision 3] (5511 : Resolution Declaring Surplus Properties)
4
physical change in the environment or a reasonably foreseeable indirect physical change
in the environment. If and when the property is sold or leased to a purchaser and that
purchaser proposes a use for the property that requires a discretionary permit and CEQA
review, that future use and project will be analyzed at the appropriate time in accordance
with CEQA.
SECTION 4. The City Manager or his or her designee is authorized to submit the
report of declared exempt surplus land as part of the Annual Report to the California
Department of Housing and Community Development (HCD), in conformance with state
law, and file a Notice of Exemption pursuant to CEQA Guidelines Section 15062.
SECTION 5. The City Manager or his or her designee is hereby authorized to do
all things which are deemed necessary or proper to effectuate the purposes of this
Resolution, and any such actions previously taken are hereby ratified and confirmed.
SECTION 6. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
5.B.a
Packet Pg. 185 Attachment: Proposed Resolution [Revision 3] (5511 : Resolution Declaring Surplus Properties)
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EXHIBIT “A”
1217 Euclid Street; APN 4282-004-900
1211-1217 Fourteenth Street; APN 4282-003-900 and APN 4282-003-901
1146 Sixteenth Street; APN 4281-005-900
5.B.a
Packet Pg. 186 Attachment: Proposed Resolution [Revision 3] (5511 : Resolution Declaring Surplus Properties)
City of Santa Monica 2021-2029 Housing Element F-19
Figure F-7 City-Owned SSI Sites
Address Parcel Nos. GP Designation Zoning Existing Use
Existing Base
Allowable
Density or FAR
Proposed
Density
with
Program 2.E
Land Area
(sf)
Unit
Capacity
with
Program 2.E
Other Info
1146 16th St 4281005900 Low Density
Residential R2
Public parking
lot 8 behind
Café Zella
1 unit/2000 sf
or 4 units
(whichever
less)
150
units/acre 7,500 26 No leases – parking is
City operated
1217 Euclid St 4282004900
Medium
Density
Residential
R3 Public parking
lot 7
1 unit/1500 sf
or 5 units
(whichever
less)
150
units/acre 15,000 52 No leases– parking is
City operated
1217 14th St
4282003900 Medium
Density
Residential
R3
Public parking
lot 12 behind
Petco
1 unit/1500 sf
or 5 units
(whichever less)
150
units/acre
15,000
52 No leases– parking is
City operated 4282003901
Main St between
Ocean Park Blvd
and Kinney St
4288009900
High Density
Residential R3/R4
Public parking
lots 9, 10, and 11
on Main St (excludes
alleys)
1 unit/1500 sf
or 5 units
(whichever
less)
150
units/acre 167,388 577
No leases– parking is
City operated; but
replacement parking will be necessary
(Coastal Zone)
4288010900
4288014901
4288011900
4288012902
4288013905
4288015901
1333 4th St
4291011909
Bayside
Conservation BC
Bank of
America; Chase bank 2.25 FAR 150
units/acre 52,489 181
Bank of America’s
lease ends in 2026 and
Chase Bank has
requested to extend
their lease to 2026 and
terminate alongside
the BofA lease.
4291011910
1324 5th St
4291011900 Neighborhood
Village NV Public parking
lot 27 2.25 FAR 150
units/acre 52,470 181 No leases– parking is
City operated 4291011901
4291011902
5.B.d
Packet Pg. 187 Attachment: Housing Element Appendix F, Figure F-7 [Revision 1] (5511 : Resolution Declaring Surplus
Address Parcel Nos. GP Designation Zoning Existing Use
Existing Base
Allowable
Density or FAR
Proposed
Density
with
Program
2.E
Land Area
(sf)
Unit
Capacity
with
Program
2.E
Other Info
4291011903
4291011904
4291011905
4291011908
1318 4th St
4291012900
Bayside
Conservation
BC
Parking
Structure 3 2.25 FAR 150
units/acre 30,000 104
City Council
authorized exclusive
negotiation
agreement on
1/22/2022 with EAH for
development of
affordable housing;
Demolition began March 2022
4291012901
2500 Olympic
4268013919
Conservation
Arts Center
CAC
Bergamot Arts
Center1
1.0 FAR 150
units/acre 205,000 707
Property Management
Agreement until April
2027. City has annual
leases with 30
businesses (expiring
12/31) that will be
renewed each year
until redevelopment
4268014900
Total Estimated Capacity
1,880
1 The 205,000 sf land area accounts for half of the Bergamot Arts Center parcel being occupied by an existing leased R&D building which precludes housing
development on this portion of the site
5.B.d
Packet Pg. 188 Attachment: Housing Element Appendix F, Figure F-7 [Revision 1] (5511 : Resolution Declaring Surplus
27 City of Santa Monica | 2021 - 2029 Housing Element
Program
No Program Objective Timing
2.E Commit To The Production Of Affordable Housing On City-Owned/Publicly- Owned Land
The City shall commit City-owned sites for the production of 100% affordable housing, with consideration
of other community-serving purposes, including, but not limited, to green space, place making, and/or
community-serving commercial and revenue generating uses.
The City shall plan for a minimum of 1,880 affordable housing units across available City-owned sites,
which are located throughout the City, as shown in Figure F-6, Appendix F, which may include, but shall
not be limited to, rezoning actions in the LUCE, Specific Plans, and/or Zoning Ordinance amendments.
Amendments to maximize affordable housing development potential on City-owned sites, and any
subsequent development of those sites will be guided through a public process, including engagement
of community stakeholders. At least three RFPs shall be issued for city-owned sites identified on the
Suitable Sites Inventory to accommodate at least 1,880 affordable units. The first RFP for a city-owned
site shall be issued by June 30, 2023. Subsequently, the City shall issue an RFP by June 30, 2025, and June
30, 2027 accounting for existing constraints on city-owned sites such as existing leases as shown in Figure
F-6, Appendix F. Following the regular process for production of affordable housing on city-owned
land, at the conclusion of the RFP process, the City will select a developer partner for each city-owned
site with the intent to develop each site for 100% affordable housing. The developer would negotiate
a ground lease with the City, process any necessary loans through the City’s local Housing Trust Fund,
and concurrently process the Planning entitlements for the project through a ministerial process. The
timeframe from selection of a developer to issuance of building permits typically takes approximately
24-30 months. As has been done in the past, the City will use a variety of tools to facilitate 100% affordable
housing development, including but not limited to:
• Facilitate appropriate zoning and process to support 100% affordable housing
• Substantially reduced or free ground rent, the City will
• Providing funding through local housing trust fund
• Support applications for other funding sources for affordable housing (e.g. low-income-
housing tax credits, grants, State funding, Federal funding)
• Support measures that are not housing constraints to generate and allocate tax revenue
for the acquisition and development of deed-restricted affordable housing
Further, the City will continue to assess appropriate City-owned properties for the development of
affordable housing, or in some cases may consider the most appropriate disposition of City properties
to nonprofit developers for the development of affordable housing.
Prioritize affordable
housing production on
city-owned land.
June 30, 2023
and Annual
Ongoing
5.B.e
Packet Pg. 189 Attachment: Housing Element Program 2.E [Revision 1] (5511 : Resolution Declaring Surplus Properties)
1217 Euclid Street (Parking Lot 7)
Parcel size: approximately 15,000 square feet
Housing Element projected capacity: 52 residences
Existing parking spaces: 49
Adjacent uses: Retail, restaurant, other commercial, multifamily. The site
is bordered to the north by a 10-space surface lot serving businesses
fronting Wilshire, as well as by a partially vacant commercial building that
formerly housed Performance Bicycle and its parking garage. It is
bordered to the south by a 10-unit apartment building.
5.B.f
Packet Pg. 190 Attachment: Aerial images and site descriptions for Euclid, 14th St. and 16th St. sites [Revision 1] (5511 : Resolution Declaring
1211-1217 14th St. (Public Parking Lot 12)
Parcel size: approximately 15,000 square feet
Housing Element projected capacity: 52 residences
Existing parking spaces: 49
Adjacent uses: Banks, retail, restaurant, other commercial, commercial
parking, multifamily. The site is bordered to the north by a four-space
surface parking lot serving businesses fronting Wilshire, as well as by a
commercial building that houses Unleashed by Petco. It is bordered to
the south by a four-unit multifamily property. A 52-space paid surface lot
for Bank of America and Video and Audio Center customers lies across
the alley to the east.
Not a City
lot
5.B.f
Packet Pg. 191 Attachment: Aerial images and site descriptions for Euclid, 14th St. and 16th St. sites [Revision 1] (5511 : Resolution Declaring
1146 16th Street (Public Parking Lot 8)
Parcel size: approximately 7,500 square feet
Housing Element projected capacity: 26 residences
Existing parking spaces: 21
Adjacent uses: Restaurant, commercial, multifamily. The site is bordered
to the north by a duplex and to the south by a restaurant and a partially
vacant strip mall with a 9-space surface parking lot. The parking lot for
the former MacMall and mattress store lies across the alley to the west.
Not a City
lot
5.B.f
Packet Pg. 192 Attachment: Aerial images and site descriptions for Euclid, 14th St. and 16th St. sites [Revision 1] (5511 : Resolution Declaring