TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP - Development Services Director
PREPARED BY: Jarrett Ramaiya, Deputy Director
SUBJECT: Sale of City Owned Real Property Located Northwest of the
Intersection of Clinton Keith Road and McElwain Road
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RECOMMENDATION
recommendation
1) Adopt Resolution No. 23-4703 entitled: A Resolution of the City Council of the City of
Murrieta, California, Declaring A City-Owned Parcel as Exempt Surplus and Approving the
Sale of City-Owned Real Property Located Northwest of the Intersection of Clinton Keith
Road and McElwain Road, Murrieta, CA (APN: 392-270-005) to Ashdon Development for
$70,200.00;
2) Authorize the City Manager to direct and execute all related escrow, closing, and
similar documents necessary to finalize the sale of the Property upon conclusion of
the 30-day notice period to Housing and Community Development; and
3) Amend the Fiscal Year 2023/24 Operating Budget to Appropriate Budget for the Sale
of Land and Escrow Expenses.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Aggressively pursue economic development.
BACKGROUND
The applicant, Ashdon Development (Developer), received approval from the Planning Commission for a carwash (Conditional Use Permit 2020-2248) and daycare facility (Conditional Use Permit 2020-2179/Development Plan permit 2020-2249) on May 11, 2022, on property located at the northwest corner of Clinton Keith Road and McElwain Road (Project Site).
During the processing of the application, it was discovered that the City owns a small remnant parcel along McElwain Road, east of and immediately adjacent to the Project Site as shown in red in the graphic below. The City of Murrieta (City) parcel is 3,049 square feet.
Upon making this discovery, the Developer asked that the Project be conditioned to purchase the City parcel. The Project was conditionally approved with the requirement that the Developer purchase the City parcel, subject to the requirements of the Surplus Lands Act (SLA). The City Parcel is two segments of the existing right-of-way for McElwain Road and will be developed as part of the Project’s frontage improvements, including the construction of a sidewalk and driveway if acquired by the Developer.
The SLA is a set of statutes that local agencies must follow when disposing of surplus land. Pursuant to Government Code §54222, the first step is for the City Council to declare that the 3,049 square foot piece of land is surplus property not needed for future development by the City. The City Council could then determine that this small City parcel is exempt from the SLA. If the property were not exempt, the City would need to comply with the processes under the SLA, which include issuing a notice of availability of surplus land to other public entities and housing developers, to the satisfaction of the California Department of Housing and Community Development (HCD).
The SLA has several exemptions, one of which is for the sale of property less than 5,000 square feet, less than the minimum legal residential building lot size for the zone in which the property is located, and sold to an owner of contiguous land. As the City parcel is smaller than 5,000 square feet, too small and odd-shaped to build housing on, and proposed to be sold to the contiguous landowner, the City Council may adopt a resolution making the determination that the City parcel is exempt surplus land. Staff does not anticipate that this 3,049 square foot area would ever be needed to expand McElwain Road.
The above shows in the red outline, the two segments that amount to 3,049 square feet of right-of-way.
The SLA further requires that the City Council make findings to support the use of the exemption. Pursuant to Government Code §54221(f)(1)(B), the land is exempt from State law if it complies with the following:
• The surplus land has less than 5,000 square feet in area; or
• The surplus land has less than the minimum legal residential building lot size for the jurisdiction in which the parcel is located, or 5,000 square feet in area, whichever is less; or
• The surplus land is being sold to the owner of continuous land.
As stated in the attached Resolution No. 23-4703, the facts support the City Council making the required findings to declare the property as “Exempt Surplus”.
After a local agency determines that a property is exempt from the standard SLA process as per §54221 of the Government Code, the local agency must provide a copy of the written determination to the HCD at least 30 days prior to disposition.
The Developer has worked with the City to prepare a draft purchase and sale agreement (Attachment 2). The 3,049-square-foot City property was appraised at $70,200.
CEQA DETERMINATION
The proposed action is not a "project" as defined in CEQA Guidelines Section 15378 because it involves the execution of an agreement that, on its own, will not cause a significant environmental impact. As such, this activity is not subject to CEQA pursuant to Section 15060(c)(3).
FISCAL IMPACT
If the City parcel is sold to the Developer, at the close of escrow, the Developer will make a cash payment of $70,200 into escrow. The Fiscal Year 2023/24 Operating Budget would need to be established for the sale of the City-owned property in Account No. 1100000-81025 for $70,200.00 and an expenditure budget for escrow costs and fees in Account No. 1101600-61440 based on the final escrow closing statement.
ATTACHMENTS
1) Resolution No. 23-4703
2) Purchase and Sale Agreement