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01-17-2006 - Authorization to Send Written Offer Letters to Public Entities for Purchase of a Portion of Shadow Oak ParkTO: Andrew G. Pasmant, City Manager and City Council FROM: Christopher J. Chung, Cormntuzity Development Commission Director City of West Covina Memorandum AGENDA ITEM NO. D — 6c DATE: January 17 2006 SUBJECT: AUTHORIZATION TO SEND WRITTEN OFFER LETTERS TO PUBLIC ENTITIES FOR THE PURCHASE OF A PORTION OF SHADOW OAK PARK RECOMMENDATION: It is recommended that the City Council instruct staff to send written offer letters for the purchase of the lower portion of Shadow Oak Park to the public entities required by Government Code § 54222. DISCUSSION: At the March 1, 2005 City Council meeting the City Council directed staff to prepare an Request For Proposals (RFP) to possibly sell and develop approximately 10-acres of undeveloped land that had been previously been identified by the City to be an extension of the Shadow Oak Park. The City Council was informed that the City would be required to comply with the Government Code regarding the abandonment of park property and the surplus property disposition requirements should the City Council sell the site for development. At that time, the City Council was not prepared to take action to abandon the property as public use, but instead instructed staff to release an RFP to assess whether there was any interest from the development community to develop this site. City staff released the RFP out to perspective residential developers and advertised in local newspapers. As a result of the RFP, the City received several proposals to develop the park based on the criteria established by the City Council. The proposals received cover a variety of housing options ranging from 22 single-family homes to 205 condominiums. Some of the proposals include senior housing in their developments. In addition, the proposals include walking trails, picnic areas, swimming pools, and significant improvements to Shadow Oak Park and Community Center. Should the City Council wish to consider the sale of the site for any development, including those already received, the City Council would need to first dispose of the undeveloped land under the disposition of public surplus land (Government Code § 54222) and the Municipal Park Abandonment Law of 1939 (Government Code § 35801). Process of Disposing of Public Land The City must meet the surplus property disposition requirements by sending written offer letters to various public entities as follows: 1. A written offer to sell for the purpose of developing low- and moderate -income housing shall be sent to any local public entity as defined in Section 50079 of the Health and Safety Code, within whose jurisdiction the surplus land is located. Housing sponsors, as defined by Section 50074 of the Health and Safety Code, shall, upon written request, be sent a written offer to sell or lease surplus land for the purpose of developing low- and moderate -income housing. All notices shall be sent by first-class mail and shall include the location and a description of the property. With respect to any offer to purchase or lease pursuant to this subdivision, priority shall be given to development of the land to provide affordable housing for lower income elderly or disabled persons or households, and other lower income households. 2. A written offer to sell for park and recreational purposes or open -space purposes shall be sent: sop IIOef a. To any park or recreation department of any city within which the land may be situated. b. To any park or recreation department of the county within which the land is situated. c. To any regional park authority having jurisdiction within the area in which the land is situated. d. To the State Resources Agency or any agency which may succeed to its powers. 3. A written offer to sell the land suitable for school facilities construction or use by a school district for open -space purposes shall be sent to any school district in whose jurisdiction the land is located. 4. A written offer to sell for enterprise zone purposes any surplus property in any area designated as an enterprise zone pursuant to Section 7073 shall be sent to the nonprofit neighborhood enterprise association corporation in that zone. 5. A written offer to sell for the purpose of developing property located within an infill opportunity zone designated pursuant to Section 65088.4 or within an area covered by a transit village plan adopted pursuant to the Transit Village Development Planning Act of 1994, Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7 shall be sent to any county, city, city and county, community redevelopment agency, public transportation agency, or housing authority within whose jurisdiction the surplus land is located. Public entities have sixty (60) days to notify the City in writing of their interest in purchasing the land. In response to an agency's written notification to purchase the land, the City must enter into good faith negotiations to determine a mutually agreeable price or lease terms. In the case of multiple responses to purchase the site, because, this property has been dedicated for park purposes, first priority must be given to an entity that agrees to use the site for park and recreational purposes. Next priority must. be given to entities that agree to use the site for housing for persons of low and moderate income. While the City must offer the site to various public entities, and enter into good faith negotiations with responding entities, there is no requirement that the must City sell the site to any of the entities with which it enters into good faith negotiations. Once the sixty (60) day period expires, City staff will present to the City Council all proposals, public and private, for their consideration. Should the City Council wish to proceed with the sale of the park for a housing development, it will be necessary for the City Council to complete the process to abandon the parkland outlined below Process of Abandoning Parkland Once the City Council determines that they wish to sale the undeveloped property the City Council must abandon undeveloped parkland: 1. The City must first adopt a resolution of intention calling for a hearing to be conducted, at least thirty (30) days after the adoption of the resolution of intention, to discuss the abandonment of the undeveloped land at Shadow Oak Park. 2. The City must then conduct a public hearing, at least thirty (30) days after the resolution of intention was adopted, in which testimony is received on the potential abandonment of the park. In addition, since the sale of the site is a "project," the City would need to complete the necessary requirements under the California Environmental Quality Act (CEQA) and the Planning Commission must also report to the City Council that the disposition of the property is consistent with the General Plan. sop 11Od OPTIONS: The City Council has the following options: 1. Instruct staff to send written offer letters for the purchase of the lower portion of Shadow Oak Park to the public entities required by Government Code § 54222; 2. Instruct staff to not send written offer letters for the purchase of the lower portion of Shadow Oak Park to the public entities required by Government Code § 54222; or 3. Provide City staff with an alternative direction. FISCAL IMPACT: None. Prepared by: Chris Freeland Assistant to the City Manager Reviewed/Approved by: Reviewed by: M' e Lee Assistant Community Development Commission Director Approved Via Telephone Christoph J. Ch g Arnold M. Alvarez-Glasman Community Developmen ommission Director City Attorney sop 110cf