City Council Agenda
|
Memo to: |
Manteca City Council |
|
|
|
|
From: |
Toni Lundgren, City Manager |
|
|
|
|
Prepared by: |
Vielka Guarascio, Homeless and Housing Services Manager |
|
|
|
|
Date: |
October 21, 2024 |
|
|
|
|
Subject: |
Sale of Real Property Located at 282 N. Airport Way for the Development of Multi-family Apartment Complex. |
Recommendation:
title
Adopt a resolution approving a Disposition and Development Agreement for the sale of real property located at 282 N. Airport Way for the development of multi-family apartment complex, authorize the Mayor to sign the Development Agreement, and authorize the City Manager to sign all documents necessary to effectuate the Development Agreement.
body
Background:
The City is the owner of Accessor Parcel Number (“APN”) 200-140-020-000, a 3.7-acre undeveloped property located at 282 N. Airport Way in the City of Manteca, California (“Property”). In 2006, the former Manteca Redevelopment Agency (“Former Agency”) awarded a grant to a nonprofit corporation for the purpose of supporting the development of low- and moderate-income housing. The nonprofit corporation did not develop the Property, and in 2010, the Former Agency accepted the conveyance of the Property in lieu of enforcing its rights under the grant agreement.
Pursuant to the Dissolution Act (AB XI 26, as amended), the Former Agency was dissolved as of February 1, 2012, and the Successor Agency to the Manteca Redevelopment Agency (“Successor Agency”) was established to serve as the successor agency to the Former Agency. Initially, the Property was transferred to the Successor Agency by operation of law upon the dissolution of the Former Agency. Subsequently, the Property transferred from the Successor Agency to the City as the housing successor to the Former Agency (“Housing Successor”).
On June 21, 2022, the Manteca City Council declared the subject property surplus per Resolution R2022-106. On May 3, 2023, the City published the required Notice of Availability (“NOA”) and notified the required housing sponsors of the availability of the property in compliance with the Surplus Land Act (“SLA”), Government Code Sections 54220-54233.
The SLA defines “surplus land” as land owned in fee simple by a local agency (including the City), which is not necessary for the local agency’s use. The SLA requires the governing board of the local agency to take formal action in a regular public meeting to declare such land surplus land or exempt surplus land. There are limited situations in which property qualifies as exempt surplus land, which are not applicable to the sale of the Property.
On June 21, 2023, the City received one timely response to the NOA from an interested developer. Staff reviewed the submission and confirmed it aligned with the objectives of the SLA. The authorized purposes include low and moderate income housing, park, recreation, open space, and school purposes. A designated entity that is interested in acquiring surplus land for the development of low- and moderate-income housing must agree to restrict at least 25% of the units for low-income households.
In compliance with SLA regulations, since the late summer of 2023, staff has engaged in good faith negotiations with the developer. The City completed an appraisal on the subject property on September 11, 2023, which resulted in an appraised market value of $550,000 (Attachment 1). Staff has also, to the best of our ability, disclosed any and all information that may be useful to the developer in making a determination on whether to move forward with the development of the property. Negotiations between the parties continued through the summer of 2024.
Staff and developer have completed negotiations and staff is recommending that City Council approve a Disposition and Development Agreement (Attachment 2) to facilitate the development of the property in compliance with the SLA and consistent with the City’s goals and priorities for affordable housing development.
Fiscal Impact:
Revenue from the sale of this property will have a positive impact to the General Fund in the amount of $550,000.
Documents Attached:
Attachment 1 - Resolution
Attachment 2 - Agreement