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Report regarding a resolution making findings and declaring the property located at 367 Marina Boulevard (APN 015-011-350) as surplus land and authorizing transmittal of a Notice of Availability. (Ernesto Lucero, Acting Deputy Director, Economic and Community Development Department)
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RECOMMENDATION
Recommendation
Staff recommends adopting a resolution making findings and declaring the property located at 367 Marina Boulevard as surplus land and authorizing transmittal of a Notice of Availability.
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BACKGROUND
The City owns an approximately 4.7 acre site in Oyster Point within the Oyster Point Specific Plan which has California Environmental Quality Act (“CEQA”) clearance for up to 350 rooms for a hotel development on the site. The City Council approved the First Amendment to a Purchase and Sale Agreement (“PSA”) with hotel developer, Ensemble Investments (“Ensemble”), on December 19, 2022 for the disposition of the site for a full service hotel development. As the deliverables within the PSA are still underway, the First Amendment provides an extension of the closing date of an additional six months after the City has completed a required statutory disposition process under the California Land Surplus Act.
On November 17, 2022, the Planning Commission approved the design, Use Permit, draft Development Agreement, and Transportation Demand Management Plan for the project, consisting of the new construction of a 12-story, 165 foot tall, 350 room, 261,000 square foot building, with 232 surface parking space and site improvements, as well as the determination that the project is within the scope of the previously adopted Programmatic EIR under CEQA Guidelines.
DISCUSSION
The Surplus Land Act (“SLA”), Government Code Section 54220, et seq., as amended by Assembly Bill 1486 effective January 1, 2020, provides that local public agencies must determine whether land owned by the public agency is “surplus land” or “exempt surplus land,” and must send notices of the availability of surplus land to specified parties prior to the disposition of such land. The City is the owner of a property located at 367 Marina Boulevard, which as discussed above, is the site of a former municipal landfill. The City has long-intended to convey the property to a third-party for development.
In accordance with the SLA, the City is required to follow a detailed statutory process prior to any disposition of the property. The first step of the process is to declare the property “surplus land” and send notices of availability (“NOA”) to certain specified parties, including the California Department of Housing and Community Development (“HCD”). Adoption of the associated resolution will declare the property as “surplus land” and will authorize staff to transmit the required NOAs in accordance with the procedures outlined in the SLA. Interested parties have 60 days after the City transmits NOAs to notify the City of their desire to purchase the property. If the City receives a notice of interest in the property, then the City is required to enter into a 90-day good faith negotiation period beginning on the first day after the 60-day notice period ends. If the City and an interested party cannot agree on price and terms after the conclusion of the full 90-day good faith negotiation period, then the City may dispose of the surplus land without further regard to the SLA. The City must send a summary of the City’s actions in compliance with the SLA process to HCD prior to any such disposition.
FISCAL IMPACT
There is no fiscal impact associated with the proposed resolution.
RELATIONSHIP TO STRATEGIC PLAN
This item supports the City Council Strategic Goal of improving quality of life for the local economy and residents.
CONCLUSION
The approval of the resolution will allow the City to meet its statutory requires under the SLA. The First Amendment to the PSA with Ensemble will remain effective during the SLA process. The City will remain committed to the disposition processes of the site.