TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
title
Declare the properties located at 171 Cypress Street and 174 Cypress Street as surplus to the City’s needs; and authorize the disposal of the properties. Resolution No. 11554.
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2. Summary
Resolution No. 11554 declares that certain City-owned real properties located at 171 Cypress Street and 174 Cypress Street as exempt surplus land under Government Code Section 54221.
3. Recommended Action
recommendation
Adopt Resolution No. 11554. A Resolution of the City Council of the City of Orange finding that certain City-owned real property located at 171 N. Cypress and 177 N. Cypress in the City of Orange is exempt surplus land pursuant to Government Code Section 54221.
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. Discussion and Background
The City of Orange is addressing the status of two City-owned real properties located at 171 Cypress Street and 174 Cypress Street respectively. The subject properties are located on Cypress Street, backing to the west side of the City’s Old Towne West Parking Structure. Both properties are listed on the National Register of Historical Places and were built in 1900. 171 Cypress Street features a 938 square-foot, one-story, single-family residence on a 7,260 square-foot land parcel and 174 Cypress Street has an 802 square-foot, one-story, single-family residence on a 4,646 square-foot land parcel.
Both properties were acquired by the City of Orange in 2017 as part of the construction of the adjacent parking structure. Initial assessments did not anticipate the need for a temporary construction easement from these properties. However, as the project progressed, the need for such easements became clear. To simplify the process, the City chose to purchase the properties outright-171 Cypress Street for $575,000 and 174 Cypress Street for $525,000. Since the acquisition, the City has been renting out both properties.
Recognizing the properties are not necessary for the City’s use, and that the properties are respectively less than one-half acre and are not contiguous to land owned by a state or local agency that is used for open-space or low-and moderate-income housing purposes, the City wishes to classify this land as "exempt surplus land" pursuant to Section 54221(f)(1)(B) of the Surplus Land Act (Government Code sections 54220, et seq., as amended by AB 1486). While a pre-adoption review of proposed Resolution No.11554 was not required, a copy of this Resolution was submitted to the Public Lands Team at the Department of Housing and Community Development (HCD). The City was thereafter advised that the proposed Resolution No. 11554 meets the requirements for an exemption. Therefore, staff recommends approval of Resolution No. 11554, officially declaring the properties as “exempt surplus land.”
The City will be required to send Resolution No. 11554 to HCD 30 days before disposition of the property. HCD will thereafter issue a letter finding that the property may be disposed of without any further action under the Surplus Land Act. The City intends to employ the services of Paul Kott Realtors, Inc, as we have for other City owned properties, to manage the sale of these properties upon HCD clearance. The proceeds from the eventual sales are required to be directed back to Orange Redevelopment Successor Agency funds, which originally financed the purchases.
7. ATTACHMENTS
• Resolution No. 11554