HomeMy WebLinkAboutE-11 Staff Report - Declaration Surplus Property 725 N. Azusa Ave.CONSENT ITEM
E-11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: JOSE D. JIMENEZ, DIRECTOR OF ECONOMIC & COMMUNITY
DEVELOPMENT
DATE: OCTOBER 7, 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:
The Surplus Land Act (“SLA”) requires the City Council to take formal action via a public City
Council meeting to declare City-owned land that is not necessary for the City's use to be surplus
land prior to disposition. Prior to engaging a development team, the City is required to abide with
the California Surplus Land Act (Government Code § 54220 et seq.) 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) Adopt the attached 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, and finding that such declaration is not a project subject to environmental
review under the California Environmental Quality Act.
Approved
City Council
October 7, 2024
Declaration of Surplus Property – 725 North Azusa Avenue
October 7, 2024
Page 2
ANALYSIS:
The Surplus Land Act, as codified in Government Code Sections 54220-54233 requires public
agencies to declare its property as surplus land or exempt surplus land via, a Resolution prior to
disposing of its property. “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 owns land it no longer needs adjacent to its Light Rail Station. Specifically,
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 entities after transmitting a
written notice of availability, the City is required to enter into good faith negotiations 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 final consultation with the California Department of Housing and
Community Development and 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.
Declaration of Surplus Property – 725 North Azusa Avenue
October 7, 2024
Page 3
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)Aerial Depiction of Site – 725 North Azusa Avenue
2) Resolution No. 2024-C57 – 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
Declaration of Surplus Property – 725 North Azusa Avenue
October 7, 2024
Page 4
Attachment 1
RESOLUTION NO. 2024-C57
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, AND FINDING THAT SUCH
DECLARATION IS NOT A PROJECT SUBJECT TO ENVIRONMENTAL
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
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 Property is utilized as Light and Water Building for the City of Azusa, and is
developed with a two-story building measuring 25,860 square feet on a site measuring 74,985 square
feet;
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
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
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 draft,
Attachment 2
modify, and 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 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. 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 mere designation of the Property as exempt surplus and authorization for
the City Manager to comply with the Act do not qualify as a “project” as defined in State CEQA
Guidelines section 15378. First, Section 15378 defines a project as an activity that “has a potential for
resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect
physical change in the environment.” (State CEQA Guidelines, § 15378(a).) Here, the action is to
declare the Property as exempt surplus, which will not result in either a direct physical change in the
environment or a reasonably foreseeable indirect physical change in the environment. Accordingly, the
action is not a “project” subject to CEQA. (State CEQA Guidelines, § 15060(c).) Second, Section
15378 explicitly excludes from its definition of “project” the following: “organizational or
administrative activities of governments that will not result in direct or indirect physical changes in the
environment.” (State CEQA Guidelines, § 15378(b)(5).) The action to designate the Property as
exempt surplus land constitutes an organizational or administrative activity that will not result in a
physical change in the environment, and it therefore is not subject to CEQA. This Resolution does not
constitute a binding commitment to any particular use of the Property.
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 7th day of October, 2024.
____________________________________
Robert Gonzales
Mayor
ATTEST:
____________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
HEREBY CERTIFY that the foregoing Resolution No. 2024-XXX was duly adopted by the
City Council, at a regular meeting of said Agency held on the 7th day of October 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
45635.01000\42741520.1 CITY OF AZUSA | ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT | (626) 812-5200
www.azusaca.gov
[DATE]
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 the surplus property listed in the accompanying
table.
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. Prospective purchasers should note that approximately, 4,400 square feet of said
space (17%) is partially leased to Main San Gabriel Basin Watermaster and purchase would the
addressing of this lease. Additionally, the property shares a common driveway with a contiguous
parcel that is not under the ownership of the City. The site contains a vehicle storage yard that
houses vehicles for Light and Water Department duties and responsibilities.
The City is interested in working with a team that can assess the current condition of this City
owned asset. Prospective purchasers should review existing building and property conditions,
and where feasible, remediate Asbestos and soil conditions from prior and current uses. Any and
all city infrastructure will still be needed by City, including but not limited to all communication fiber
and backbone infrastructure that will need to be relocated. Affordable housing covenants required
by statute will apply and will be imposed. (See Government Code Section 54220 et seq.)
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 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
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
Attachment 3
2
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