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2023-12-05 Staff Report - Exempt Surplus Land Declarations APN 770-125-003CONSENT CALENDAR ITEM NO. 5 City of La Quinta CITY COUNCIL MEETING: December 5, 2023 STAFF REPORT AGENDA TITLE: ADOPT RESOLUTIONS TO: 1) DECLARE ASSESSOR PARCEL NUMBERS 770-123-011, 770-124-010, AND 770-124-012 LOCATED IN THE CITY OF LA QUINTA, CALIFORNIA AS SURPLUS LAND, AND 2) DECLARE ASSESSOR PARCEL NUMBER 770-125-003, LOCATED IN THE CITY OF LA QUINTA, CALIFORNIA AS EXEMPT SURPLUS LAND; EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO SECTION 15312 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT KEUUMIviiNDATION • Adopt a Resolution to declare Assessor Parcel Numbers 770-123-011, 770-124- 010, and 770-124-012, located in the City of La Quinta, California, as surplus land; and • Adopt a Resolution to declare Assessor Parcel Number 770-125-003, located in the City of La Quinta, California, as exempt surplus land; and • Authorize the City Manager to execute and administer the necessary notices related to the declarations made in the resolutions. • Find that that the declarations are exempt from environmental review pursuant to Section 15312 of the California Environmental Quality Act (CEQA). EXECUTIVE SUMMARY • The Surplus Land Act (SLA) governs the disposition of City -owned property that is no longer needed for the City's use and requires cities to declare property as "surplus land" or "exempt surplus land" prior to disposing of it, including sales and certain leases. • Assessor Parcel Numbers (APNs) 770-123-011, 770-124-010, and 770-124-012 meet the definition of "surplus land" pursuant to Government Code Section 54221(b)(1) as the property is land owned in fee simple by the City, which is no longer necessary for the City's use, and does fall into any category of "exempt surplus land." • APN 770-125-003 meets the definition for "exempt surplus land" provided in Government Code Section 54221 (f)(1)(C), because the City intends to exchange it for other property necessary for the agency's use. 59 • Staff is recommending that Council adopt resolutions to declare APNs 770-123- 011; 770-124-010; and 770-124-012 as "surplus land" and declare APN 770-125- 003 as "exempt surplus land." and authorize the City Manager or Designee to execute and administer the necessary notices and negotiations required by the SLA. • The proposed declarations that the parcels are surplus land or exempt surplus land does not authorize the lease or sale of the parcels. Once the process is complete, any proposed lease, sale, or disposition would be subject to separate review and approval. FISCAL IMPACT — None. BACKGROUND/ANALYSIS The SLA governs the disposition of City -owned property that is no longer needed for the City's use, and requires cities to declare property as "surplus land" or "exempt surplus land" prior to disposing of it, including sales and certain leases. If surplus land does not fall into a category of "exempt surplus land," then it qualifies as "surplus land." Government Code Section 54221 (f)(1)(C) provides that one category of "exempt surplus land" is surplus land that a local agency is exchanging for another property necessary for the agency's use. APNs 770-123-011; 770-124-010; and 770-124-012 The City owns three vacant parcels located between the Library and Old Town La Quinta (APNs 770-123-011; 770-124-010; and 770-124-012) (Exhibit A to the first resolution) Staff has identified these parcels as undeveloped land not to be utilized for development projects, implemented, owned, and/or operated by the City. These parcels meet the definition of "surplus land" pursuant to Government Code Section 54221(b)(1) as the property is land owned in fee simple by the City, which is no longer necessary for the City's use, and does fall into any category of "exempt surplus land." The first resolution proposed, if adopted, would declare these parcels surplus land as required by the SLA, which would allow the City to sell the parcels. A Notice of Availability will be sent to specified entities, who have 60 days to notify the City of their interest in the parcels. If any interest is provided, the City is required to engage in good faith negotiations for a period of 90 days. Following these steps, the City must provide the California Department of Housing and Community Development (HCD) with a notification detailing the Notice of Availability process. APN 770-125-003 Staff has identified APN 770-125-003 as meeting the definition of "exempt surplus land" under the SLA, specifically pursuant to Government Code Section 54221 (f)(1)(C), which 60 provides that one category of "exempt surplus land" is surplus land that a local agency is exchanging for another property necessary for the agency's use. The second resolution proposed, if adopted, would declare this parcel exempt surplus land as required by the SLA, which would allow the City to exchange the parcel. On June 20, 2023, Council adopted Resolution No. 2023-022 approving the exchange of APN 770-125-003 for APN 770-155-001, which exchanged parcel would be used for the benefit of the public and in furtherance of the public purposes of the City. The exchange of the parcel qualifies APN 770-125-003 as "exempt surplus land" under the SLA. A SLA Exemption Notice will be sent to HCD, who have 30 days to review and approve the exemption. At the end of the 30 -day period, the City may pursue its intended exchange for APN 770-155-001. ALTERNATIVES Council may elect not to declare these parcels surplus land or exempt surplus land; or, declare only one or some of the parcels as surplus land or exempt surplus land. As this process is required by HCD to ensure compliance with SLA staff does not recommend these alternatives. Prepared by: Approved by: Gil Villalpando, Director Jon McMillen, City Manager 61