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21-0615_R&H LAND PARTNERS_F1a_PowerPointResolutions Declaring City-owned Property Non-exempt Surplus Land and Approval of Notices of Availability Item F1a June 15, 2021 Surplus Land Act Background •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,cities must provide notice to affordable housing developers that a property is potentially available for development. •Surplus Land Act defines surplus property as land no longer needed for an agency’s direct use. •New regulations expanded the definition of disposition to include leases of City- owned property. 2 Surplus Land Act Requirements •Adopt a resolution declaring subject property surplus land •Issue Notice of Availability to interested parties registered with the California Department of Housing and Community Development •60-day period to notify City of interest in property •If interest is received,90-day good faith negotiation period •If no agreement is reached,City may enter into negotiations with other interested parties 3 Potential Sale of Calle Arroyo Parcel •Due to restricted access and relatively small size,the site is not well-suited for a stand-alone public use. •The City desires to sell the property to facilitate improved options for long-term use,while mitigating future risk and maintenance obligations associated with City ownership. •As the first step to a potential sale,the City must comply with the Surplus Land Act. 4 5 Calle Arroyo Parcel Development Constraints •Open Space land use designation –Measure X implications •Located within floodway adjacent to San Juan Creek –Federal Emergency Management Agency implications •Landlocked parcel 6 Potential Lease of Riding Park Parcel •City desires to enter into a lease with a future operator interested in making a long-term investment in the site. •Request for Qualifications/Proposals issued April 2020. •Prior to negotiating with a potential operator,the Surplus Land Act requires the property be noticed for availability. 7 8 Riding Park Parcel Development Constraints •Rancho Mission Viejo Company Purchase and Sale Agreement use restrictions •Permanent lighting prohibition and vehicle trips limitation •Annual Rancho Mission Viejo Rodeo •Open Space land use designation –Measure X implications •Sensitive Resource Areas and Conservation Easement •Ephemeral Wash located on the property 9 Next Steps •Pending City Council approval of the Resolutions declaring the properties surplus land and approval of notices of availability,staff would distribute notices of availability to registered interested parties. •Interested parties would have 60 days to notify the City of interest. •If interest is received,City would enter into 90 days of good faith negotiations with the interested party. •If no notification of interest is received or if the parties are unable to agree to agreement terms,the City may enter into negotiations with other interested parties. 10 Recommendations: 1.Approve a Resolution declaring City-owned property located at Calle Arroyo and Rancho Viejo Road (APN:666-232-08)non-exempt surplus land;and, approve the form of the corresponding Notice of Availability for distribution to interested parties. 2.Approve a Resolution declaring City-owned property located at Ortega Highway and Avenida La Pata (APN:125-172-24)non-exempt surplus land; and,approve the form of the corresponding Notice of Availability for distribution to interested parties. 11