HomeMy WebLinkAboutD-3 Staff Report - SLA_725 N. Azusa Ave.SCHEDULED ITEM
D-3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: JOSE D. JIMENEZ, DIRECTOR OF ECONOMIC & COMMUNITY
DEVELOPMENT
DATE: SEPTEMBER 16, 2024
SUBJECT: DECLARATION OF SURPLUS PROPERTY PURSUANT TO AB 1486 – 725
NORTH AZUSA AVENUE IN THE CITY OF AZUSA, CALIFORNIA, COUNTY
OF LOS ANGELES, (APN: 8608-023-927)
BACKGROUND:
A recent Times article highlights the efforts of the Los Angeles 2028 Olympic Committee to
encourage a Car-Free 2028 Olympics. Due to its proximity to a transit-rich hub in that of both a
light-rail and bus stops, the City of Azusa is exploring the possibility of offering the City’s Light
and Water Building for a possible hotel opportunity ahead of the 2028 Los Angeles Olympics.
Prior to engaging a development team, the City is required to abide with the California Surplus
Land Act (Government Code § 54220 et seq.) (the “Surplus Land Act”) which requires all local
agencies to prioritize affordable housing, as well as parks and open space when disposing of
surplus land.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1) Authorize and adopt Resolution No. 2024-C50 that finds that the declaration of surplus
property is exempt from environmental review pursuant to the California Environmental
Quality Act; and declaring that the property located at 725 North Azusa Avenue (APN:
8608-023-927) is surplus land and is not necessary for the City’s use and directing the City
Manager to follow the procedures set forth in the Surplus Land Act, California Government
Code Section 54220, et seq., as amended by AB 1486, for the sale of surplus land.
ANALYSIS:
The City of Azusa is exploring the possibility to re-envision and redevelop the City’s Light and
Item Pulled - Continue at Next Meeting
Declaration of Surplus Property – 725 North Azusa Avenue
September 16, 2024
Page 2
Water Building in order to allow for a new transformative project that is to include a new hotel,
housing, and commercial development. Specifically, the City is highly interested in providing for
a new hotel in the Downtown. This idea was originally envisioned in the City’s Transit Oriented
Development Specific Plan. Secondarily, a hotel at this location will serve as a vital lodging option
adjacent to a transit-rich hub for the forthcoming 2028 Los Angeles Olympics, which organizers
are touting as a “Car-Free” event. Prior to any consideration, the City is first required to abide by
the Surplus Land Act.
The Surplus Land Act requires that before a local agency takes any action to dispose of land, the
land must be declared either “surplus land” or “exempt surplus land,” as supported by written
findings. “Surplus land” means the land owned by a local agency for which the local agency’s
governing body takes formal action in a regular public meeting declaring that the land is surplus
and is not necessary for the agency’s use. The City must take formal action declaring the subject
City-owned property is surplus property. Adoption of the attached Resolution would declare the
subject property as surplus land.
The City of Azusa (“City”) owns and controls the real property located at 725 North Azusa Avenue
(“Site”). The Site measures approximately 1.72 acres and is currently developed with a 25,860
square foot building which serves as the location for the City’s Light and Water Building
(Attachment 1.) Approximately, 4,400 square feet, or 17 percent of the subject building is partially
leased to Main San Gabriel Basin Watermaster. The zoning designation for the subject property
is – GLD (Gold Line District.)
Upon the City’s determination that the subject property is surplus land, the procedures set forth in
Government Code Section 54220 et seq. must be followed. Those procedures require the City to
offer the surplus land to certain public entities for a period of 60 days by transmitting a written
notice of availability to those entities, including:
1.For the purpose of developing low and moderate income housing, a written notice of
availability of the surplus land shall be sent to any “local public entity” as defined in Health
and Safety Code 50079 within whose jurisdiction the surplus land is located and to “Housing
Sponsors” that have notified the California Department of Housing and Community
Development (HCD) of their interest in surplus land.
2.For open space purposes, a written notice of availability of the surplus land shall be sent to
local park districts.
3.For the purpose of use by a school district for school facilities construction or open space
purposes, a written notice of availability of surplus land shall be sent to the Azusa Unified
School District.
4.To any other public entities with jurisdiction over the parcels of surplus land a written notice
of availability.
If the City receives a correspondence expressing interest from any housing entities after
transmitting a written notice of availability, the City is required to enter into good faith negotiations
Declaration of Surplus Property – 725 North Azusa Avenue
September 16, 2024
Page 3
concerning the price and terms of disposition with that entity for a period of 90 days. If the price
and terms cannot be agreed upon after 90 days (or if no entity gives notice of interest), the City
may dispose of the surplus land without further regard to the surplus land procedures, subject to
provisions in the Surplus Land Act requiring the recording on title of an affordability covenant in
the event more than ten (10) units of residential housing are ever developed on the subject property.
FISCAL IMPACT:
The request to Adopt a Resolution declaring that the property located at 725 North Azusa Avenue
(APN: 8608-023-927) is surplus land and is not necessary for the City’s use and directing the City
Manager to follow the procedures set forth in the Surplus Land Act, California Government Code
Section 54220, et seq., as amended by AB 1486, for the sale of surplus land can be done within
the existing operating budget.
In the event that the City sells said land, the process will be subject to its own Fiscal Analysis
Impact at said time.
Prepared and Approved by:
Jose D. Jimenez
Director of Economic & Community Development
Fiscal Review by: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1)Site Plan – 725 North Azusa Avenue
2) Resolution – A RESOLUTION OF THE CITY OF AZUSA DECLARING THAT THE
PROPERTY LOCATED AT 725 NORTH AZUSA AVENUE (APN: 8608-023-927) IS
SURPLUS LAND AND IS NO LONGER NECESSARY FOR THE CITY’S USE AND
DIRECTING THE CITY MANAGER TO FOLLOW THE PROCEDURES SET FORTH
IN THE SURPLUS LAND ACT, CALIFORNIA GOVERNMENT CODE SECTION
54220, ET SEQ., AS AMENDED BY AB 1486, FOR THE SALE OF SURPLUS LAND
3)Draft Notice of Availability
Attachment 1
Declaration of Surplus Property – 725 North Azusa Avenue
September 16, 2024
Page 4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
DECLARING THAT THE PROPERTY LOCATED AT 725 NORTH AZUSA
AVENUE (APN: 8608-023-927) IS SURPLUS LAND AND IS NO LONGER
RESOLUTION NO. 2024-C50
NECESSARY FOR THE CITY’S USE AND DIRECTING THE CITY MANAGER
TO FOLLOW THE PROCEDURES SET FORTH IN THE SURPLUS LAND
ACT, CALIFORNIA GOVERNMENT CODE SECTION 54220, ET SEQ., AS
AMENDED BY AB 1486, FOR THE SALE OF SURPLUS LAND
WHEREAS, the City of Azusa (“City”) hereby finds, determines and declares as follows:
WHEREAS, the City of Azusa owns and controls property located at 725 North Azusa Avenue
(consisting of APN: 8608-023-927) which consists of approximately 1.72 acres of land (the “Property”);
WHEREAS, the City of Azusa is interested in providing for a new Hotel Development which
is one of the visions for the Transit Oriented District;
WHEREAS, there is need for quality lodging opportunities within transit-rich areas to
encourage a car-free 2028 Los Angeles Olympics;
WHEREAS, the Property is utilized as Light and Water Building for the City of Azusa;
WHEREAS, the Property’s zoning designation is GLD – Gold Line District and its General
Plan Land Use Designation is TOD Specific Plan;
WHEREAS, Assembly Bill 1486 went into effect on January 1, 2020 (“AB 1486”), and
expanded the Surplus Land Act requirements for local agencies prior to the disposition and disposal of
any “surplus land”; and
WHEREAS, the Property meets the definition of “surplus land”, is no longer necessary for the
City’s use, and does not meet any of the applicable exemptions from the Surplus Land Act as emended
by AB 1486; and
WHEREAS, City staff has an appraisal of the property performed to establish its market value;
and
WHEREAS, the City portion of the sale proceeds and property tax generated may provide
funding to enhance City services, and the future development of the Property would eliminate blight
and promote neighborhood livability and sustainability.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA,
AS FOLLOWS:
SECTION 1. The recitals set forth above are true and correct and are incorporated into this
Resolution by reference.
SECTION 2. The City of Azusa hereby finds and declares that the Property is no longer
necessary for the City’s use and is surplus land, as defined in California Government Code section
Attachment 2
54221, based on the true and correct written findings found in this Resolution and incorporated herein
by reference.
SECTION 3. The City of Azusa hereby authorizes the City Manager or designee to send
written notices of availability of the Property for sale, to negotiate the terms of a proposed sale of the
Property, to any beneficially interested person or entity and to otherwise follow the procedures of the
Surplus Land Act, California Government Code section 54220., et seq., as amended on January 1, 2020,
as applicable to a proposed sale of the Property.
SECTION 4. Any proposed agreement for the sale of the Property shall be subject to the
approval of the City Council.
SECTION 5. The sale of the Property as surplus is exempt from environmental review under
the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15312
(Surplus Government Property Sales.) However, if development was proposed on the Property by a
subsequent buyer, then that development would be reviewed under a separate CEQA action.
SECTION 6. This Resolution shall take effect immediately upon its adoption by the City
Council, and the Clerk of the Agency shall attest to and certify the vote adopting this Resolution.
PASSED, APPROVED AND ADOPTED this 16th day of September, 2024.
____________________________________
Robert Gonzales
Mayor
ATTEST:
____________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2024-C50 was duly adopted by the
City Council, at a regular meeting of said Agency held on the 16th day of September 2024, by the
following vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
___________________________________
Marco Martinez
City Attorney
CITY OF AZUSA | ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT | (626) 812-5200
www.azusaca.gov
September 9, 2024
To All Interested Parties:
RE: Notice of Availability/Offer to Sell Surplus Property – APN: 8608-023-927 (City of
Azusa)
As required by Government Code Section 54220 of the State of California, The City of Azusa is
providing notification that the City intends to sell/lease the surplus property listed in the
accompanying table.
Ideally, the City desires to establish a long-term, fair market value ground lease or sale of the
development site. However, the City is willing to consider alternatives that result in an overall
superior project. The offering is a 25,860 square foot office building on a site totaling 74,985 SF,
or 1.72 acres. The subject property is majority owner-occupied by the City of Azusa's Azusa Light
& Water Department. Approximately, 4,400 square feet of said space is partially leased to Main
San Gabriel Basin Watermaster. Additionally, the property shares a common driveway with a
contiguous parcel that is not under the ownership of the City.
Azusa is interested in working with a development team that can assess the current condition of
a City owned asset and to allow for its rehabilitation, or possible demolition, to make way for a
new Development that is to include a new Hotel with a minimum of 100+ rooms, require Street
Level Retail/Commercial Use, and a possible residential component. Working with the adjacent
private property owner for a more comprehensive development is encouraged. Rehabilitation, or
replacement of the current City Asset must include the review of existing building and property
conditions, and where feasible, all efforts to remediate Asbestos, soil, and relocation of any and
all city infrastructure, including but not limited to all communication fiber and backbone
infrastructure that is currently supporting the building must be undertaken.
For housing, the City will covenant that the Buyer include a residential component within its project
and that the residential component must provide a minimum 25 percent of the residential units to
lower income households at affordable rent or for sale for a period of not less than 55 years.
As a condition of the sale, upon acquisition of the site Buyer will be required to submit plans an
diligently pursue permit approval within 120 days of closing.
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 of Azusa of your interest in
acquiring the property. However, this offer shall not obligate the City of Azusa to sell the property
to you. Instead, the City of Azusa would enter into at least ninety (90) days of negotiations with
you pursuant to Government Code Section 54223. If no agreement is reached on sales price and
terms, or lease terms, the City of Azusa may market the property to the general public.
As required by Government Code Section 54227, if the City of Azusa 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
ECONOMIC & COMMUNITY
DEVELOPMENT DEPARTMENT
Attachment 3
2
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.
In the event your agency or company is interested in purchasing the property, you must notify the
City of Azusa in writing within sixty (60) days of the date this notice was sent via certified mail or
electronic mail.
Notice of your interest in acquiring the property shall be delivered to:
Jose Daniel Jimenez
Economic and Community Development Director
213 East Foothill Boulevard
Azusa, California 91702
You may also direct your questions to jose.jimenez@azusaca.gov or by calling (626) 812-5236.
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).
Attachments (1):
1.Property Description Table
CATEGORY RESPONSE
Jurisdiction Name Azusa
Jurisdiction Type City
Site Address/Intersection 729 North Azusa Avenue (Azusa Ave./Foothill Blvd.)
City Azusa
5 Digit Zip Code 91702
County Los Angeles
APN 8608-023-927
Consolidated Sites N/A
General Plan Designation Specific Plan
Zoning Designation GLD
Minimum Density Allowed
(units/acre) 0
Maximum Density Allowed
(units/acre) 0
Parcel Size (Gross Acres) 1.72 acres
Existing Use/Vacancy Government Use
Minimum Sales Price Market Value
Last Appraised Value $6,210,000
Last Appraised Date 1/2/2024
Optional Information None