HomeMy WebLinkAbout15 - CC-9 - Disposal of City Co-Owned Property Adjac - 5/5/2015CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 5, 2015
ITEM NUMBER: CC -9
SUBJECT: DISPOSAL OF CITY CO -OWNED PROPERTY ADJACENT TO CHARLE STREET,
COUNTY ASSESSOR'S PARCEL NUMBER 422-091-06
DATE: APRIL 23, 2015
FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION
PRESENTATION BY: ERNESTO MUNOZ, PUBLIC SERVICES DIRECTOR
FOR FURTHER INFORMATION CONTACT: FARIBA FAZELI, CITY ENGINEER
(714) 754-5335
RECOMMENDATION
1. Adopt a resolution to proceed with the sale of City co -owned property along Charle Street,
County Assessor's Parcel No.422-091-06.
BACKGROUND
The City co-owns (50-50) a strip of land, 5 feet wide and 150 feet long along Charle Street
(Attachment 1) with Red Mountain Retail Group (RMRG). RMRG has expressed a desire to
acquire the City's interest in this small sliver parcel.
In 1982, the City acquired this parcel of land in fee with the possible intent of a future street
dedication. However, per the Master Plan of Highways, Charle Street is designated as a residential
street with an ultimate width of 60 feet. Currently, Charle Street is 60' wide, hence there is no need
for this additional sliver parcel.
On March 23, 2015, a report was presented to the Planning Commission outlining the proposed
disposal/sale as required by Government Code Section 65402. Subsequently, the Planning
Commission adopted Resolution No. PC -15-15 (Attachment 2) finding that the proposed
disposal/sale is consistent with the City's General Plan.
ANALYSIS
In October of 2014, the entire subject property was appraised with an overall land value of $11,400
(at $9.50 per square foot). Thus, $5,700 of the value is allocated to the City and $5,700 allocated
to RMRG. A purchase offer to the City of $5,700 by RMRG will be formally presented to the City
pending approval of the City Council. RMRG has agreed to pay for all closing costs including
escrow, title report and documentation fees.
This co -owned property has been reviewed by the Engineering and Transportation Services
Divisions and determined to be of no practical City use. This sliver of land is no longer necessary
for the Charle Street right-of-way improvements, and there are no public improvements currently
constructed within the subject property. It has been concluded that it is in the best public interest
to remove the City's ownership liability by the sale of this unusable sliver of property.
Therefore, it is recommended that the City Council approve and adopt a resolution (Attachment
3) to proceed with the sale of the 50% portion of City co -owned property to RMRG for the
appraised value of $5,700.
ALTERNATIVES CONSIDERED
The City could retain this co -owned property and continue to be responsible for the maintenance and
liability of being property co-owners.
FISCAL REVIEW
Once the percentage of ownership is sold it becomes fully taxable square footage, resulting in
additional property taxes to the adjacent property owner to which the land will revert to. This will
result in additional revenue to the City.
LEGAL REVIEW
Legal questions surrounding the City's ability to sell the co -owned property were addressed by the
City Attorney's office in 2007. The City Attorney's office has re -reviewed the original analysis
performed on the possible sale of the property, and has determined that the opinion is still valid today.
In cases where government property has been declared surplus, the normal protocol for sale of
surplus government property is to provide for an open (auction) or closed (sealed envelope) bidding
process. This property has not been declared surplus, and thus may be sold directly if decided by
the City Council.
CONCLUSION
Staff reviewed a request for the sale of City co -owned property adjacent to Charle Street, and
recommends that the City Council approve and adopt a resolution to go forth with the sale of 50% of
City co -owned property, County Assessor's Parcel No. 422-091-06.
ERNESTO MUNOZ FARIBA FAZELI
Public Services Director City Engineer
ATTACHMENTS: 1 — Site Plan
2 — Planning Commission Resolution No. PC -15-15
3 — Resolution for the sale of City co -owned (50%) property
DISTRIBUTION: Chief Executive Officer
Assistant CEO
Economic & Dev. Director/Deputy CEO
City Attorney
City Clerk
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