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Report regarding a resolution making findings and determining that the acquisition of several properties (APNs 091-022-010, 091-022-020, 091-022-030, 091-025-010, 091-034-080, and 015-031-090) as part of a Chapter 8 Tax Sale is in conformance with the South San Francisco adopted General Plan in accordance with provisions of State Planning Law (Govt. Code Section 65402) (Adena Friedman, Chief Planner).
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RECOMMENDATION
Recommendation
It is recommended that the Planning Commission adopt a resolution making findings determining that the acquisition of several properties (APNs 091-022-010, 091-022-020, 091-022-030, 091-025-010, 091-034-080, and 015-031-090) as part of a Chapter 8 Tax Sale is in conformance with the South San Francisco adopted General Plan in accordance with provisions of State Planning Law (Govt. Code Section 65402)
MOTION FOR THE COMMISSION TO ADOPT STAFF RECOMMENDATION:
1. Move to adopt a resolution making findings that the acquisition of several properties is in conformance with the South San Francisco adopted General Plan.
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BACKGROUND/DISCUSSION
With some exceptions, such as for publicly owned lands, all properties are required to pay property taxes. In San Mateo County, these taxes are collected by the San Mateo County Tax Collector’s Office. Some property owners become delinquent in paying their property taxes and other special assessments and liens that appear on the property tax bill. In these cases, the Tax Collector’s Office follows lengthy procedures to collect such debts, but eventually may sell these properties at tax auctions if the debts remain unpaid.
Typically, properties are sold at what is known as a Chapter 7 public auction, which notices tax defaulted properties to the public and allows anyone to participate in the auction to purchase a property. Once a list of tax defaulted properties is established for a Chapter 7 public auction, the County provides notice of this list to local jurisdictions. Local jurisdictions can object to the public sale of certain properties and request that those properties be held over for a Chapter 8 tax sale. At a Chapter 8 sale, public agencies may purchase tax defaulted properties for public purposes.
In May 2023 the City received notice that the San Mateo County Tax Collector’s office would be conducting a Chapter 7 public auction for tax defaulted properties. Staff discussed the possible acquisition of some of these tax defaulted properties with Council in closed session on July 12, 2023 and October 25, 2023 and received direction to submit a letter to the County objecting to the inclusion of certain properties in the public auction, instead requesting these properties be subject to a Chapter 8 sale. On January 10, 2024, City Council authorized staff to purchase these properties at the Chapter 8 sale, which is anticipated to be held in early 2024. Following is a brief description of the parcels.
Remnant Frontage Parcels on Westborough Boulevard
APNs 091022010, 091022020, 091022030, 091025010, 091034080
These remnant frontage parcels are 10-foot-wide strips along the southern edge of Westborough Boulevard, between Oakmont Drive and Olympic Drive (see Attachment 1 for a map of these parcels and images of recent conditions). These parcels contain numerous trees and unkept ground level vegetation spanning the area between the street and the rear yards of the homes backing up to Westborough Boulevard. The property owners have not maintained these properties for many years and, as a result, many of the trees now warrant significant trimming and/or removal. In recent years, Code Enforcement staff has cited one of the property owners, based out of Florida, to resolve hazardous tree issues and tall weeds, however, the property owner has been unresponsive. Several years ago, the City mitigated some hazardous trees and placed a lien against one of the properties to recoup these expenses.
While the acquisition of these parcels provides short-term stability to these properties - ensuring they are maintained in good order and relieving the City of the time and cost associated with protracted Code Enforcement actions - it also provides longer-term opportunities for adding right-of-way, creating pathways, and adding more attractive landscaping. The need for these improvements and budget to support them have not yet been identified, but owning the properties allows for flexibility should the City wish to make these changes in the future.
Portion of Sylvester Road
APN 015031090
This property is a 17,162 square foot section of Sylvester Road north of Associated Road (see Attachment 2 for a map of this parcel and images of recent conditions). It is vacant right-of-way that is currently privately owned and surrounded by other privately-owned rights-of-way in the middle of a fully entitled life sciences redevelopment project at 120 E. Grand Avenue led by the Trammell Crow Company.
The 120 E. Grand project, approved by the Planning Commission in May 2023, consists of two new office / R&D buildings, an amenity building, and a parking garage. The project requires access via Sylvester Road, either via acquisition of the roadway parcel or via easement, as well as a dedication to the City of a Public Utility Easement. This was included as part of the project’s Conditions of Approval (Engineering Mapping and Agreements Condition #15).
Trammell Crow had intended to acquire the parcel at the public Chapter 7 tax auction, but the County Tax Collector’s Office withheld the property for sale at the Chapter 8 auction because it is a right-of-way parcel. Given complications with the public sale of rights-of-way in San Francisco over the past several years (most notably Presidio Terrace where both former Speaker Pelosi and the late Senator Feinstein lived), the County has instituted the practice of withholding right-of-way parcels for Chapter 8 auctions for public agencies to acquire. The City likewise objected to the sale of the property at the Chapter 7 sale and will have the ability to purchase it at the Chapter 8 sale.
It is the City’s intention to acquire the property at the Chapter 8 sale and then sell it to Trammell Crow to recoup the City’s costs. The City intends to sell it to Trammell Crow with protections put in place to preserve it as right-of-way, rather than maintain public ownership of the land, given the private ownership of the surrounding street network. This will facilitate the efficient and orderly development of the life science development.
GENERAL PLAN CONFORMANCE
In accordance with provisions of State Planning Law (Govt. Code Section 65402), prior to acquisition of real property by the City, the Planning Commission, as the planning agency for the City, is required to find such acquisition is in conformity with the adopted general plan.
The General Plan contains policy direction relevant to the acquisition of the subject parcels, including:
• Land Use Goal 4: High-quality residential neighborhoods.
• Land Use Policy 1.2: Connectivity in complete neighborhoods.
• Sub-Area Policy 36.4: Expand parks and walking trails in Westborough.
• Sub-Area Policy 16.1: Implement public realm improvements near the Caltrain station.
• Mobility Policy 2.1: Incorporate complete streets improvements into all roadway and development projects.
The proposed purchase of these properties will ensure that the City is able to maintain property in a safe and accessible condition, and also will help to create to support cohesive redevelopment of the East of 101 area, with a focus on multi-modal access near the Caltrain station, thus conforming to the City’s General Plan.
ENVIRONMENTAL REVIEW
The proposed purchase of these properties is consistent with the General Plan and previously entitled projects and does not contemplate additional development, therefore, no CEQA action is required by the Planning Commission at this time.
CONCLUSION
It is recommended that the Planning Commission make findings that determines that the purchase of multiple properties at a Chapter 8 sale (APNs 091-022-010, 091-022-020, 091-022-030, 091-025-010, 091-034-080, and 015-031-090) is in conformance with the South San Francisco adopted General Plan in accordance with provisions of State Planning Law (Govt. Code Section 65402).
Attachments:
1. Westborough Parcels Map
2. Sylvester Parcel Map
Associated Resolution
1. General Plan Conformance Resolution (Legistar File #24-58)