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SR 04-25-2023 14A City Council Report City Council Meeting: April 25, 2023 Agenda Item: 14.A 1 of 6 To: Mayor and City Council From: David Martin, Director, Administration Subject: Adoption of Resolution Declaring Surplus Properties Recommended Action Staff recommends that the City Council: 1. Declare the City-owned properties located at 1444 7th Street (“Former Fire Station 1” - APN 4291-020-900), 1654 19th Street ((“City TV” - APN 4290-026- 009) and two remnant parcels associated with the Expo Lot (APNs 4290 -011- 901 and 4290-011-902) as “surplus land” in accordance with the State of California’s Surplus Land Act (“SLA”); 2. Adopt a Resolution declaring the City-owned properties at 1444 7th Street (APN 4291-020-900), 1654 19th Street (APN 4290-026-009) and Expo Lot Parcels (4290-011-901 and 4290-011-902) as surplus lands, and authorize the City Manager or designee to take implementing actions necessary to comply with the SLA; and, 3. 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. Summary California Government Code Sections 54220-54234, known as the Surplus Land Act, (SLA) requires the City to follow certain procedures prior to engaging in negotiations to sell or lease land for a period greater than five years, even in circumstances where the City maintains long-term fee simple ownership of the property. The attached Resolution declares City-owned properties at 1444 7th Street (APN 4291-020-900), 1654 19th Street (APN 4290-026-009) and the two remnant parcels associated with the Expo Lot (APNs 4290-011-901 and 4290-011-902) as “surplus land”, as defined by California Government Code 54221(b). This process is necessary for the City to consider 14.A Packet Pg. 292 2 of 6 proposals that do not meet the definition of Exempt Surplus Land, as defined by California Government Code 54221(f). Discussion The Surplus Land Act governs the sale or lease of land owned by various local agencies, including cities, and prescribes certain procedures that must be followed before disposition can occur. Specifically, the SLA requires that the City first declare the properties in this report to be "surplus lands" and then send a notice of availability to entities designated in the SLA. The entities have a period of 60 days to respond. If the City receives a notice of interest from a designated entity, the City must negotiate in good faith for a period of not less than 90 days. The SLA does not prevent a local agency from obtaining fair market value for the disposition of surplus land. The City may reject proposals from designated entities when the parties cannot agree on sales price or lease terms or when the interested entity is not responsive to the agency's conditions or restrictions in the notice of availability, provided such conditions or restrictions have been reviewed, in advance, pursuant to SLA guidelines by the California Department of Housing and Community Development. The City has a long history of redeveloping and activating its properties for community serving uses and affordable housing. For example, Council at its meeting on March 23, 2021, declared the City-owned property at 1318-1320 4th Street (formerly Parking Structure 3) as “exempt surplus” for affordable housing. On October 11, 2022, Council declared the following properties as “surplus land”: • 1855 Main Street (“Civic Auditorium” - APN 4290-013-901) • 1635 5th Street (“Apple Building” – APN 4290-011-906) • 1636 5th Street (“Parking Lot 29” - APNs 4290-011-903, 4290-011-904, 4290- 011-905) Expo Line Kiss & Ride Lot (APN 4290-011-909) The Notice of Availability for these properties were prioritized and noticed to all the affordable housing developers registered with HCD. On March 14, 2023, consistent 14.A Packet Pg. 293 3 of 6 with the goals of the SLA and the City’s adopted and certified 2021-2029 Housing Element, Council declared the three City-owned properties as “exempt surplus”: • 1217 Euclid Street (APN 4282-004-900) • 1211-1217 14th Street (APN 4282-003-900 and -901) • 1146 16th Street (APN 428-1005-900) These three properties were identified as suitable to accommodate a portion of the City’s share of regional housing need for lower income households and will be developed as 100% affordable housing. As the City continues to evaluate its assets for additional opportunities, City staff has identified the following City-owned properties as no longer needed for municipal purposes and eligible for declaration as surplus lands . 1444 7th Street (Former Fire Station 1); APN: 4290-020-900; Size: 0.34 acres This property was built in the 1950’s and formerly operated as the City’s Fire Station 1, the City’s oldest fire station before the new Fire Station 1 on 1337 7 th Street was completed in 2020. The former Fire Station 1 contains 14,994 square feet of land located on the west side of 7th Street between Santa Monica Boulevard and Broa dway. The property currently functions as equipment and vehicle storage for the City’s Promenade Maintenance Division and The People’s Concern. This summer it is also anticipated that the property will provide a small workspace (for up to 3 people) and parking for the LA County Department of Mental Health Team and therapeutic transport van. In the event the City receives offers to purchase or lease this opportunity site, the City would evaluate options to relocate the interim uses within the Downtown Santa Monica district. The zoning for this property is Neighborhood Village which provides a development standard of 4.0 FAR and building height up to 84 feet. Housing developments with 100% affordable units in this zone could receive an additional .5 FAR and 10’ in height. 1654 19th Street (City TV Building); APN 4290-026-009; Size 0.18 acres Located mid-block between Olympic Boulevard and Colorado Avenue, the City TV Building (4,700 square feet) is situated on an 8,011 square foot lot. The facility has been shuttered since 2020 and currently houses equipment that is used for the City’s cable television and video services. The zoning for this property is Industrial 14.A Packet Pg. 294 4 of 6 Conservation which allows a variety of industrial and commercial developments though housing is not currently permitted. Effective June 1, 2023, through the implementation of the Housing Element, as adopted by Council on March 21, 2023, housing will be permitted. Additionally, neighborhood serving land uses such restaurants, retail, personal services, and markets will be permitted in the IC zoning district to support housing development and the creation of new neighborhoods in this area . The development standard for the IC zone is 3.0 FAR and building height up to 65 feet. Housing developments with 100% affordable units in this zone could receive an additional .5 FAR and 10’ in height. Expo Line “Kiss and Ride” Lot; APNs:4290-011-901 and 4290-011-902 The Expo Line Kiss and Ride Lot is comprised of three parcels (APN 4290 -011-909, 4290-011-901 and 4290-011-902). At its meeting on October 11, 2022, Council adopted a resolution declaring APN 4290-011-909 as surplus land but did not include two small remnant parcels (APN 4290-011-901 and 902) that are immediately adjacent. The City’s Notice of Availability (NOA), issued on November 11, 2022, incorporated the three parcels. Declaring the two remnant parcels (APN 4290 -011-901 and 4290-011- 902) would complete the declaration of the entire Expo Line Kiss and Ride lot as surplus lands. The two remnant parcels are included in the attached resolution to ensure consistency with the November 11, 2022 NOA and the City’s intent to declare all three parcels associated with Kiss and Ride Lot as surplus. Future Actions Assuming these properties are designated as surplus lands, staff will proceed with noticing procedures under the SLA prior to commencing disposition negotiations. An example of the City’s draft Notice of Availability (NOA) cover letter is attached. Entities registered as interested affordable housing developers would receive copy of the NOA with 60 days to respond. If the event the City does not receive any interest in the “surplus” properties, the City is required to record a covenant that provides that, in the event 10 or more residential 14.A Packet Pg. 295 5 of 6 units are developed on the land in the future, at least 15% of the units must be set aside as affordable housing. Environmental Review The resolution to declare the properties as surplus lands is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment”. The resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, as no development is authorized by this resolution and any future disposition will require separate environmental analysis, if and when, the details of such disposition are known. Past Council Actions Meeting Date Description 3/23/2021 Adoption of a Resolution of Inventory of City-Owned Properties Subject to the Surplus Lands Act 10/11/2022 Adoption of Resolution Declaring Surplus Properties 3/14/2023 Adoption of a Resolution Declaring Surplus Properties Financial Impacts and Budget Actions There are no immediate financial impacts or budget actions necessary because of the recommended actions. An analysis of the specific financial impacts for each property will be presented when staff returns with interim or long-term disposition proposals for Council consideration. 14.A Packet Pg. 296 6 of 6 Prepared By: Nia Tang, Senior Development Analyst Approved Forwarded to Council Attachments: A. Attachment A - Resolution B. Attachment B - NOA Cover Letter C. March 23, 2021 Staff Report (Web Link) D. October 11, 2022 Staff Report (Web Link) E. March 14, 2023 Staff Report (Web Link) 14.A Packet Pg. 297 1 City Council Meeting: April 25, 2023 Santa Monica, California RESOLUTION NUMBER (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA, CALIFORNIA, DECLARING PURSUANT TO THE SURPLUS LAND ACT THAT CERTAIN REAL PROPERTY OWNED BY THE CITY LOCATED AT 1444 7TH STREET, 1654 19TH STREET AND EXPO KISS & RIDE LOT PARCELS (4290-011- 901 and 4290-011-902) IS SURPLUS LAND NOT NECESSARY FOR THE CITY’S USE; FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND TAKING RELATED ACTIONS WHEREAS, the City of Santa Monica (“City”) is the owner in fee simple of that certain real property located at 1444 7th Street (APN 4291-020-900) (“Former Fire Station 1”), 1654 19th Street (APN 4290-026-009) (“City TV”) and Expo Lot Parcels (4290-011-901 and 4290-011-902) as surplus lands, in the City of Santa Monica, and described in Exhibit “A,” attached hereto and made a part of hereof (collectively, the “City Owned Properties”); and WHEREAS, under the California Surplus Land Act (Government Code Sections 54220-54233) (the “SLA”), surplus land is land owned in fee simple by the City for which the City Council takes formal action in a regular public meeting declaring the land is surplus and not necessary for the City’s use; land must be declared either surplus land or exempt surplus land; and WHEREAS, under the SLA, land is necessary for the City’s use if the land is being used, or is planned to be used pursuant to a written plan adopted by the City Council, for City work or operations; and 14.A.a Packet Pg. 298 Attachment: Attachment A - Resolution [Revision 2] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) 2 WHEREAS, the City Council desires to declare Former Fire Station 1, City TV Building and the two remnant parcels at the Expo Kiss & Ride Lot are surplus lands and not necessary for the City’s use; and WHEREAS, the accompanying staff report provides supporting information upon which the declaration and findings set forth in this Resolution are based; 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 Former Fire Station 1, City TV Building and the two remnant parcels at the Expo Kiss & Ride Lot are surplus lands and not necessary for the 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 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 14.A.a Packet Pg. 299 Attachment: Attachment A - Resolution [Revision 2] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) 3 report of declared surplus land and 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 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. Such actions include negotiating in good faith in accordance with the requirements of the SLA with any of the authorized entities that submit a written notice of interest to purchase or lease the property in compliance with the SLA. 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 14.A.a Packet Pg. 300 Attachment: Attachment A - Resolution [Revision 2] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) 4 EXHIBIT “A” LEGAL DESCRIPTIONS 1444 7th Street (Former Fire Station 1); APN: 4290-020-900; Size: 0.34 acres SANTA MONICA LOTS H AND LOT I BLK 168 1654 19th Street (City TV Building); APN 4290-026-009; Size 0.18 acres LOT 9, BLOCK 12, ERKENBRECHER SYNDICATE SANTA MONICA TRACT Expo Line Parking Lot Remnant Parcels APN:4290-011-901; Size: 0.11 acres 1/2 VAC ALLEY ADJ ON NE AND POR OF LOT 8 M R 22-11 AND POR P. 3-30-31 APN:4290-011-902; Size: 0.12 acres ELLIOTT"S ADDITION TO SANTA MONICA 1/2 VAC ALLEY ADJ ON SW AND LOT 9 14.A.a Packet Pg. 301 Attachment: Attachment A - Resolution [Revision 2] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) Adopted and approved this day of ____ April 2023. Gleam Davis, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the day of______ April 2023, by the following vote: AYES: NOES: ABSENT: ATTEST: Denise Anderson-Warren, City Clerk 14.A.a Packet Pg. 302 Attachment: Attachment A - Resolution [Revision 2] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) Page 1 of 3 Economic Development Division 1685 Main Street, Mail Stop 12 Santa Monica, CA 90405 tel (310) 458-2201 May ___, 2023 To All Interested Parties: RE: Notice of Availability/Offer to Purchase or Lease Surplus Property In 2019, the State took several actions to make public lands available for affordable housing development, including modifications to the Surplus Land Act. The Surplus Land Act requires that prior to the disposition of land, unless an exemption applies, cities must provide notice to affordable housing developers, and in some cases public agencies that operate open space lands, that a property is potentially available for development. The Notice of Availability describes the location, land use and zoning designations, conditions of the property, and any development constraints that impact the property. Within the Act, surplus land is defined as property no longer needed for an agency’s direct use. Additionally, the new Surplus Land Act regulations expanded the definition of disposition to include leases of City-owned property. As required by Government Code Section 54220 of the State of California, the City of Santa Monica is providing notification that the City Council of the City of Santa Monica has determined that the properties located at 1444 7th Street (APN 4291-020-900) (“Former Fire Station 1”), 1654 19th Street (APN 4290-026-009) (“City TV”) and two remnant Expo Lot Parcels (4290-011-901 and 4290-011-902 ), are no longer required for municipal purposes and has declared by resolution that these properties are eligible as surplus. Additional description of the properties are provided below and in the attached exhibit. 1444 7th Street (Former Fire Station 1); APN: 4290-020-900; Size: 0.34 acres This property contains 14,994 square feet of land located on the west side of 7th Street between Santa Monica Boulevard and Broadway. The existing building, which was built in 1955, was formerly used as the City’s Fire Station 1. A City-commissioned structural evaluation in 2008, determined seismic retrofitting, facility upgrades and building improvements to comply with the Americans with Disabilities Act is required. The underlying zoning is NV – Neighborhood Village which allows for a variety of commercial, mixed-use and residential structures. The building is vacant and currently functions as storage for Downtown Santa Monica Inc and The People’s Concern. 14.A.b Packet Pg. 303 Attachment: Attachment B - NOA Cover Letter [Revision 1] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) Page 2 of 3 1654 19th Street (City TV Building); APN 4290-026-009; Size 0.18 acres The property located on the west side of 19th Street between Olympic Boulevard and Colorado Avenue, contains 8,011 square feet of land and is improved with a one-story concrete block building which has a ground floor area of 4,750 sf and an additional 790sf mezzanine. The underlying zoning is IC – Industrial Conservation which allows for a variety of industrial and commercial uses. Under this zoning, a variety of industrial and commercial developments are allowed but residential developments are not currently permitted. Effective in May 2023, however, through the implementation of the Housing Element, the multiple-unit dwelling land use will be a permitted use in that zone. The proposed development standard for the IC zone will be 3.0 FAR and building height up to 65 feet. Expo Line Kiss and Ride Lot; APN:4290-011-901 and 4290-011-902 The Expo Line Kiss and Ride Lot is comprised of three parcels (APN 4290-011-909, 4290-011-901 and 4290-011-902). At its meeting on October 11, 2023, Council adopted a resolution declaring APN 4290-011-909 as surplus land but did not include two small remnant parcels (APN 4290-011-901 and 902) that are immediately adjacent. The City’s Notice of Availability (NOA), issued on November 11, 2022, incorporated the three parcels. Declaring the two parcels (APN 4290-011-901 and 4290-011-902) would complete the declaration of the entire Expo Line Kiss and Ride lot as surplus lands. The City received interest and proposals for the three parcels from the Notice of Availability (NOA) issued on November 11, 2022 and is currently in the process of completing its 90- day good faith negotiations phase. In accordance with Government Code Section 54222, you have sixty (60) days from the date this offer was sent via certified mail or electronic mail to notify the City your interest in leasing any of the properties, subject to the existing site conditions and development constraints referenced above. However, this offer shall not obligate the City to lease any of these property to you. Instead, the City would enter into at least ninety (90) days of negotiations with you pursuant to Government Code Section 54223. If no agreement is reached on lease terms, the City may market the property to the general public. As required by Government Code Section 54227, if the City receives more than one letter of interest during this 60-day period, it will give first priority to entities proposing to develop housing where at least 25 percent of the units will be affordable to lower income households. If more than one such proposal is received, priority will be given to the proposal with the greatest number of affordable units. If more than one proposal specifies the same number of affordable units, priority will be given to the proposal that has the lowest average affordability level. Entities proposing to submit a letter of interest are advised to review the requirements set forth in the Surplus Land Act (Government Code Section 54220-54234). In the event your agency or company is interested in purchasing or leasing the City-owned properties for an authorized purpose under the Act, you must notify the City of your interest within sixty (60) days of the date this Notice of Availability has been sent. Written notice must 14.A.b Packet Pg. 304 Attachment: Attachment B - NOA Cover Letter [Revision 1] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) Page 3 of 3 be sent, if at all, to, and must be received by Ms. Nia Tang within said 60-day period at the following address: Ms. Nia Tang, Senior Development Analyst Community Development Department, Economic Development Division 1685 Main Steet, Mail Stop 12 Santa Monica, CA 90401 nia.tang@santamonica.gov 310.458.8906 The receipt of an email or notice by regular mail by way of the United States Postal Service is acceptable. If by regular mail, we suggest that you sent it via certified mail with return receipt requested. If you have any questions regarding the development sites, you may contact Ms. Tang at the email or telephone referenced above. 14.A.b Packet Pg. 305 Attachment: Attachment B - NOA Cover Letter [Revision 1] (5576 : Adoption of Resolution Declaring Surplus Properties (45 mins)) Notice of Availability - Surplus Land Property Descriptions Enter the name of the local public entity disposing of surplus land. From the dropdown menu, select the type of local public entity that best describes your jurisdiction. Enter the street address, if available. Enter an intersection, if, and only if, a site address is not available. This information is necessary to locate some sites. Enter the city in which the site is located. Enter the ZIP code. This information is necessary to locate some sites. Enter the county in which the site is located. Enter the current available assessor parcel number (APN). If the site is being consolidated from multiple parcels, list each parcel as a separate row and select the same letter for parcels that will be consolidated into larger parcels. Enter the current general plan designation. Enter the current zoning designation. Enter the minimum density currently allowed on each parcel expressed as units per acre. This is the density allowed after all relevant zoning amendments, incentive programs, density bonuses, etc are applied. Enter the maximum density allowed on each parcel expressed as units per acre. This is the density allowed after all relevant zoning amendments, incentive programs, density bonuses, etc are applied. Enter the size of the parcel in acres. If the parcel is vacant, enter “Vacant”. If the parcel is nonvacant, then include a description of the existing use(s). If the existing use includes residential units, enter the number of existing residential units after the existing use (e.g., "residential, 12" or "mixed- use, 6") Enter your minimum asking price for the parcel, if any. Enter the value of the property as of the most recent appraisal. Enter the date of the most recent appraisal. Please enter any information you wish to convey about this parcel not covered by other fields in the form. See the instructions for examples of the information that can be reflected here. Please enter any information you wish to convey about this parcel not covered by other fields in the form. See the instructions for examples of the information that can be reflected here. Jurisdiction Name Jurisdiction Type Site Address/Intersection City Five Digit ZIP Code County Assessor Parcel Number Consolidated Sites General Plan Designation (Current) Zoning Designation (Current) Minimum Density Allowed (units/acre) Maximum Density Allowed (units/acre) Parcel Size (Gross Acres)Existing Use/Vacancy Minimum Sales Price Last Appraised Value Last Appraised Date Optional Information1 Optional Information2 Santa Monica City 1444 7th Street Santa Monica 90401 Los Angeles 4290-020-900 Downtown Core NV – Neighborhood Village There is no minimum FAR requirement, just the maximum per parcel. 4.0 FAR; 84’ *.34 acres 14,994 square feet of land with an existing vacant building that currently functions as storage for Downtown Santa Monica, Inc. and The People’s Concern. The underlying zoning is NV – Neighborhood Village which allows for a variety of commercial, mixed-use and residential structures. 100% affordable housing projects receive an additional .5 FAR and 10’ in height. *Based on Housing Element upzoning that will become in effect on June 1, 2023. The existing building, which was built in 1955, was formerly used as the City’s Fire Station 1. A City-commissioned structural evaluation in 2008, determined seismic retrofitting, facility upgrades and building improvements to comply with the Americans with Disabilities Act is required. Santa Monica City 1654 19th Street Santa Monica 90404 Los Angeles 4290-026-009 Industrial Conservation Industrial Conservation There is no minimum FAR requirement, just the maximum per parcel. 3.0 FAR; 65’ *0.20 acres 8,011 square feet of land improved with an existing one- story concrete block building which has a ground floor area of 4,750 sf and an additional 790 sf mezzanine. The underlying zoning is Industrial Conservation. 100% affordable housing projects receive an additional .5 FAR and 10’ in height. *Based on Housing Element upzoning that will become in effect on June 1, 2023. As housing has not traditionally been a land use permitted in the IC zoning district, to support housing development and the creation of new neighborhoods in this area, the City is also introducing other neighborhood serving land uses such a restaurants, retail, personal services, and markets. 14.A.b Packet Pg. 306 Attachment: Attachment B - NOA Cover Letter [Revision 1] (5576 : Adoption of Resolution Declaring