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.
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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
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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.
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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
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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.
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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
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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.
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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.
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