TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICIP, Development Services Director
PREPARED BY: Jarrett Ramaiya, Deputy Development Director
SUBJECT:
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Sale of City-Owned Real Property Located at the Corner of Walsh Center Drive and Sparkman Drive to GS Parks at Murrieta, LLC for $30,100
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RECOMMENDATIONS
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Adopt Resolution No. 24-4743 entitled: Resolution of the City Council of the City of Murrieta, California, Approving the Sale of A Portion of City-Owned Real Property Located at the Intersection of Walsh Center Drive and Sparkman Drive, Murrieta, CA (APN: 910-031-006) to GS Parks at Murrieta, LLC, For $30,100;
Authorize the City Manager to direct and execute all related escrow, closing, grant deed, and similar documents necessary to finalize the sale of the Property; and
Amend the Fiscal Year 2023/24 Operating Budget to appropriate budget for the sale of land and escrow expenses, unless escrow closes after June 30, 2024, then amend the Fiscal Year 2024/25 Operating Budget.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
The applicant, GS Parks at Murrieta, LLC, received approval for an 899-unit multi-family project (Development Plan permit 2022-2518, Tentative Parcel Map 2022-2525, and Phasing Plan 2022-2614 - Project) on September 29, 2023, on property located at the corner of Walsh Center Drive and Sparkman Drive (Project Site).
During the processing of the Project discretionary applications, it was identified that the City of Murrieta (City) owns a small parcel at the intersection of Walsh Center Drive and Sparkman Drive, immediately adjacent to the Project Site, as shown in the graphic below. The City parcel is 21,741 square feet.
As stated, the location of the City-owned parcel is at the intersection of Walsh Center Drive and Sparkman Drive. The Applicant for the Project, Greystar (GS Parks at Murrieta, LLC), needs a portion of the City-owned property that is part of the primary access to the Project (total of 1,796 square feet), as shown in the above image as “future access.” The Development Plan permit for the Project is conditioned for the Applicant to purchase the 1,796 square foot portion of the City parcel. The remaining portion of the City-owned parcel will be dedicated as future right-of-way (future Monroe Avenue), which is to be 13,330 square feet, and the Applicant will use the remaining portion as a future pocket park that will serve residents and the public (6,642 square feet). See the graphic below for the locations of each portion of the parcel, including the purchase area of the 1,796 square foot portion that is labeled as “subject.”
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).
Recent changes in the SLA statutes expanded the use of exemptions, allowing local agencies to dispose of properties under one-half acre. Assembly Bill 480 (Ting) was written into law on October 11, 2023, and went into effect on January 1, 2024. The bill made changes to when a local jurisdiction would need to present a proposed land sale subject to the SLA to its City Council for the purpose of declaring the property as surplus land. As found in Government Code Section 54221(b)(4), the new law allows for a 30-day notice process supported by findings in lieu of taking forward a request at a public hearing before the City Council. For the subject site, this was accomplished in February (see Attachment 1). Per the written direction of AB 480 and the guidance of the California State Department of Housing and Community Development (HCD), the notice was sent out for a 30-day period beginning February 3, 2024, to seek public comment. No comments were received, and HCD provided a letter of concurrence that the parcel is exempt from the SLA (see Attachment 2).
Although the City received concurrence from HCD that the property is exempt from SLA, the City Council still needs to authorize the sale of the property. As stated in the attached Resolution No. 24-4743, the facts support the City Council making the required findings to allow for the sale of the property (see Attachment 3). The Applicant, GS Parks at Murrieta, LLC, has worked with the City to prepare a draft purchase and sale agreement (see Attachment 4). The 1,796-square-foot City property was appraised at $30,100 (see Attachment 5).
FISCAL IMPACT
The Developer will make a cash payment of $30,100 into escrow, which will be forwarded to the City upon closing of escrow. Staff requests the Fiscal Year 2023/24 Operating Budget be amended to account for the revenue from the sale of the City-owned property in Account No. 1100000-81025 for $30,100.00 and an expenditure budget for escrow costs and fees in Account No. 1101600-61440 based on the final escrow closing statement. If escrow closes after June 30, 2024, staff requests that the Fiscal Year 2024/25 Operating Budget be amended instead.
ENVIRONMENTAL IMPACT
A Mitigated Negative Declaration (MND) was adopted for the Project on September 22, 2023. The Project included the sale of the City-owned property, the establishment of the pocket park, and the eventual use of a portion of the City-owned property for Monroe Avenue. Project Condition of Approval 75 requires the Applicant to obtain the City’s property. The sale of the property to the Applicant is, therefore, consistent with the approved MND.
ATTACHMENTS
1. Public Notice Declaring the Parcel Exempt from Surplus Lands Act
2. Letter of Concurrence from State Department of Housing & Community Development
3. Resolution No. 24-4743
4. Draft Purchase and Sale Agreement
5. Appraisal