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File #: 2022-1855   
Type: Joint Agenda Item
Body: City Council
On agenda: 5/3/2022
Title: WITHDRAWN - Adoption of Resolution Declaring That the Property Located at 2350 Fifth Street is Exempt Surplus Land Pursuant to Government Code Section 54221(f)(1)(D); [SACIC] Adoption of Resolution Authorizing the Conveyance of the Property Located at 2350 Fifth Street to the City of Alameda in Accordance with the Terms of a Purchase and Sale Agreement Between the City and the Successor Agency; and Authorizing the Interim City Manager, as Executive Director of the Successor Agency, to Execute the Purchase and Sale Agreement and to Take Other Actions Necessary to Complete Conveyance of the Property; [SACIC] Adoption of Resolution Amending the General Fund Budget to Appropriate an Additional $250,000 for Purchase of 2350 Fifth Street [City Council]; and Introduction of Ordinance Authorizing Acceptance of the Property Located at 2350 Fifth Street from the Successor Agency to the Community Improvement Commission of City of Alameda in Accordance with the Terms of a Purchase and Sale Agree...
Attachments: 1. Exhibit 1 - Property Map, 2. Exhibit 2 - Purchase and Sale Agreement, 3. SACIC Resolution - Exempt Surplus Land, 4. SACIC Resolution - Authorizing Conveyance, 5. City Council Resolution - Budget Amendment, 6. Ordinance

Title

 

WITHDRAWN - Adoption of Resolution Declaring That the Property Located at 2350 Fifth Street is Exempt Surplus Land Pursuant to Government Code Section 54221(f)(1)(D); [SACIC]

Adoption of Resolution Authorizing the Conveyance of the Property Located at 2350 Fifth Street to the City of Alameda in Accordance with the Terms of a Purchase and Sale Agreement Between the City and the Successor Agency; and Authorizing the Interim City Manager, as Executive Director of the Successor Agency, to Execute the Purchase and Sale Agreement and to Take Other Actions Necessary to Complete Conveyance of the Property; [SACIC]

Adoption of Resolution Amending the General Fund Budget to Appropriate an Additional $250,000 for Purchase of 2350 Fifth Street [City Council]; and

Introduction of Ordinance Authorizing Acceptance of the Property Located at 2350 Fifth Street from the Successor Agency to the Community Improvement Commission of City of Alameda in Accordance with the Terms of a Purchase and Sale Agreement Between the City and the Successor Agency; and Authorizing the Interim City Manager to Execute a Purchase and Sale Agreement with the Successor Agency and to Take Such Other Actions Necessary to Complete the Conveyance of the Property. [City Council] (Community Development 10061833) [Will not be heard on May 3, 2022]

 

Body

 

To: Honorable Mayor and Members of the City Council

 

EXECUTIVE SUMMARY

 

Pursuant to the Long Range Property Management Plan (LRPMP), the parcel located at 2350 Fifth Street (Parcel) is the last property owned by the Successor Agency to the Community Improvement Commission (SACIC) to be disposed of pursuant to the LRPMP. The 35,719-square-foot (0.82 acres) Parcel is undeveloped and has no utilities.

 

Prior to disposal of the Parcel, the Parcel must be declared “surplus land” or “exempt surplus land” pursuant to the Surplus Land Act (SLA). Staff recommends that the Parcel be declared “exempt surplus land” as described below.  

 

Thereafter, staff recommends that the SACIC convey the Parcel to the City of Alameda (City), in exchange for a one-time payment of $250,000.00 from the City to SACIC, to be used to develop a project that includes 47 units of interim supportive homeless housing referred to as Dignity Village (Homekey project). Staff recommends that the City Council authorize the Interim City Manager to execute a Purchase and Sale Agreement between the SACIC and the City to effect the conveyance.  The Homekey project will be constructed by a developer known as DignityMoves. Staff will work with the Interim City Manager to execute a short-term license with DignityMoves to allow DignityMoves to access the Parcel and undertake construction of the Homekey project.

 

BACKGROUND

 

In February 2012, redevelopment agencies throughout the State were dissolved and successor agencies were established and charged with unwinding the affairs of their respective redevelopment agencies. The City’s Community Improvement Commission (CIC) was dissolved and succeeded by the SACIC.

 

The SACIC prepared and submitted the LRPMP to the State Department of Finance (DOF).  DOF approved the LRPMP, which now governs the disposition of real property assets of the CIC. The LRPMP requires that the Parcel be disposed of by sale with proceeds distributed among the taxing agencies.

 

Staff marketed the Parcel on multiple occasions.  On two prior occasions, the SACIC negotiated a purchase and sale with prospective buyers. The first prospective buyer was Loisos + Ubbelohde, an architectural firm; those negotiations did not result in a signed purchase and sale agreement.  The second prospective buyer was Branagh Land, Inc., a residential developer, and those negotiations resulted in a signed purchase and sale agreement.  Ultimately, both prospective buyers determined that they could not feasibly develop the Parcel. As a result, the negotiations with was Loisos + Ubbelohde ended, and the purchase and sale agreement with Branagh Land, Inc. was terminated.  One of the main challenges with developing the Parcel was the cost of providing infrastructure to the Parcel.

 

DISCUSSION

 

The Parcel is the final SACIC parcel to be disposed of under the LRPMP.  If authorized by the City Council, the Interim City Manager will execute a short-term license with DignityMoves to allow DignityMoves to access the Parcel and undertake construction of the Homekey project.

 

Surplus Land Act

Before the SACIC may take any action to dispose of the Parcel, the SACIC must comply with the SLA. Under the SLA, land owned by a local government agency that is not necessary for the agency’s use must, prior to any disposition of the land, be declared either “surplus land” or “exempt surplus land” by the agency’s governing body as supported by written findings. “Exempt surplus land” is exempt from most SLA provisions, including the requirement that the local agency notify interested parties of the land’s availability for the purpose of developing affordable housing.

 

Government Code Section 54221(f)(1)(D) defines “exempt surplus land” to include surplus land “that a local agency is transferring to another local … agency for the agency’s use.” The SACIC is transferring the Parcel to the City for the City to develop interim supportive homeless housing on the Parcel pursuant to a grant from the State Housing and Community Development Department’s (“HCD”) Project Homekey Round 2 fund (“Homekey”). Therefore, staff recommends that the SACIC determine that the Parcel qualifies as “exempt surplus land” under the SLA.

 

Dissolution Law

Under the Dissolution Act (Health & Safety Code Section 34181(a)(1), 34191.5), the SACIC is required to dispose of all its assets and properties pursuant to the LPRMP. The LPRMP estimates the fair market value of the Parcel at $250,000.00. Accordingly, staff recommends that 1) the SACIC authorize conveyance of the parcel to the City in exchange for a one-time payment of $250,000.00 from the City to SACIC, and 2) the City authorize said payment to and acceptance of the Parcel from the SACIC. To memorialize the terms and conditions of the purchase and sale, staff also recommends that the City Council authorize the Interim City Manager to execute a Purchase and Sale Agreement for the Parcel between the SACIC and the City.

 

ALTERNATIVES

 

                     Authorize the Interim City Manager to execute the Purchase and Sale Agreement transferring the Parcel from the SACIC to the City in exchange for a one-time payment of $250,000.00 from the City to SACIC.

                     Direct staff to provide additional information regarding alternatives to conveyance of the Parcel from the SACIC to the City.

                     Direct staff not to proceed with the Homekey project and instead to market the Parcel to a third-party buyer.

 

FINANCIAL IMPACT

 

Based on the Long Range Property Management Plan for SACIC, the purchase price of the Parcel is $250,000. Staff propose to appropriate $250,000 in American Rescue Plan Act of 2021 (ARPA) funds (C99300). Development of affordable housing, such as the Dignity Village project, is an eligible use of the City’s $28.68 million ARPA allocation from U.S. Treasury.

 

MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE

 

Sale of the Parcel is consistent with State law and the approved LRPMP.

 

ENVIRONMENTAL REVIEW

 

Declaration of the Parcel as “exempt surplus land” under the SLA, is not a “project” pursuant to Public Resources Code Section 21065 and California Environmental Quality Act (CEQA) Guidelines Section 15378. Additionally, sale of surplus government property is exempt from CEQA review pursuant to CEQA Guidelines Section 15312 (Surplus Government Property Sales). Therefore, no further CEQA review is required.

 

CLIMATE IMPACTS

 

There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.

 

RECOMMENDATION

 

Recommendation to the SACIC:

Adopt a Resolution declaring that the property located at 2350 Fifth Street is exempt Surplus Land Pursuant to Government Code Section 54221(f)(1)(D).

 

Adopt a Resolution authorizing the conveyance of the property located at 2350 Fifth Street to the City of Alameda in accordance with the terms of a purchase and sale agreement between the City and the Successor Agency; and Authorizing the Interim City Manager, as Executive Director of the Successor Agency, to Execute the Purchase and Sale Agreement and to Take Other Actions Necessary to Complete Conveyance of the Property and authorizing the Interim City Manager, as Executive Director of the SACIC, to execute the purchase and sale agreement and take other actions necessary to complete conveyance of the Parcel.

 

Recommendation to the City Council:

Adopt a resolution to appropriate $250,000 of American Rescue Plan Act of 2021 Funds for purchase of 2350 Fifth Street for development of interim supportive housing.

 

Introduce an Ordinance authorizing acceptance of the property located at 2350 Fifth Street from the Successor Agency to the Community Improvement Commission of City of Alameda in accordance with the terms of a purchase and sale agreement between the City and the Successor Agency and authorizing the Interim City Manager to execute the purchase and sale agreement with the SACIC and take other actions necessary to complete conveyance of the Parcel.

 

Respectfully submitted,

Lisa Maxwell, Community Development Director

 

By,

Lois Butler, Economic Development and Community Services Manager

 

Financial Impact section reviewed,

Margaret O’Brien, Finance Director

 

Exhibits:

1.                     Property Map

2.                     Purchase and Sale Agreement

 

cc:                     Gerry Beaudin, Interim City Manager