TITLE
Recommendation to adopt resolution declaring The Long Beach Community Investment Company owned property located at 225-227 East 15th Street and 1510 Palmer Court (APN 7269-017-035,036,037) as “exempt surplus land” as defined in Government Code Section
54221(f)(1)(F); and
Authorize City Manager, or designee, to take any actions and execute any documents necessary to ensure compliance with the Surplus Land Act and State regulations relating thereto. (District 1)
DISCUSSION
The City of Long Beach’s (City) wholly-owned non-profit public benefit organization, The Long Beach Community Investment Company (LBCIC), is currently fee owner of the property located at 225-227 E. 15th Street and 1510 Palmer Court, APN 7269-017-035,036,037 (Attachment A - Subject Property). The Subject Property is 13,068 square feet in size and consists of three adjacent, vacant parcels. The LBCIC purchased the parcels from the City in 2007 and 2009 for the future development of affordable housing. The City had previously acquired the parcels from the County of Los Angeles (County) through a Chapter 8 agreement for the purchase of tax-defaulted properties. The County provided an opportunity for the City to purchase properties at the cost of the unpaid taxes and administrative and processing costs.
The California Surplus Land Act (SLA), as codified in Government Code Section 54220 et seq., requires all agencies to prioritize affordable housing as well as parks and open space when disposing of surplus land. Surplus land is land owned by a local agency that is determined to be no longer necessary for the agency’s use. Recent changes to the SLA, through Assembly Bill 2135 (AB 2135), (i) revises procedures for disposition by sale or lease of surplus land by local agencies, (ii) extends the good faith negotiation period with potential affordable housing developers to ninety (90) days, (iii) deepens affordability requirements where an affordable housing project is developed on the site, and (iv) adds a requirement that if negotiations with an affordable housing developer are unsuccessful, then any residential development on the surplus land over ten units must make at least 15 percent of the units affordable. Further, AB 2135 no longer allows exceptions and requires local agencies to adopt a Resolution declaring property “surplus” or “exempt surplus” as supported by findings at a regular public meeting of the agency’s governing body.
The LBCIC considers the Subject Property to be exempt surplus land, as defined by the Government Code Section 54221(f)(1). In order to proceed with disposition and development of the Subject Property, the City Council, as the legislative body of the City, makes the following finding:
• The LBCIC shall require the buyer of the Subject Property to provide housing affordable to persons and families of low or moderate income. Development proposals with 100 percent of the residential units being affordable will be solicited pursuant to a competitive process and such proposals and subsequent development will otherwise comply with the requirements of Government Code Section 54221(f)(1)(F).
This matter was reviewed by Deputy City Attorney Richard F. Anthony and Revenue Management Geraldine Alejo on June 8, 2022.
TIMING CONSIDERATIONS
City Council’s adoption of the Resolution is requested on July 12, 2022, to allow the LBCIC to implement actions necessary to comply with the SLA and issue a request for proposals for the disposition and development of affordable housing on the Subject Property.
FISCAL IMPACT
This recommendation has no staffing impact beyond the budgeted scope of duties and is consistent with existing City Council priorities. There is no fiscal or local job impact associated with this recommendation
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
OSCAR W. ORCI
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER