DATE: September 25, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: ADOPTION OF RESOLUTION DECLARING ONE CITY-OWNED PARCEL OF LAND AS SURPLUS PROPERTY
RECOMMENDATION
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Staff recommends that the City Council adopt a resolution declaring as surplus property and no longer needed for public use one City-owned vacant parcel of land consisting of 3.02 acres located on Morro Heights Road identified as Assessor Parcel Number 122-170-42; and issue a notice of availability pursuant to the Surplus Land Act.
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BACKGROUND AND ANALYSIS
The City acquired a 3.02-acre parcel of vacant land on Morro Heights Road, identified as Assessor’s Parcel Number 122-170-42, on January 16, 2018 for $184,000 (“Property”). The Property was originally purchased by the Water Utilities Department in an effort to expand the City’s Recycled Water System. However, after the property was acquired, it was discovered that the Property’s Covenants, Conditions, and Restrictions (CC&Rs) limit the use of the parcel, prohibiting the construction of a reservoir. Staff worked with the area property owners to pursue an exception to the CC&Rs to allow for the City’s intended use; however, these attempts were not successful. The Property is no longer needed for use by the Water Utilities Department for a future reservoir site as originally contemplated; therefore, staff recommends that the Property be declared as surplus property and made available to purchase. A replacement location for the planned reservoir has been identified at 1315 Sleeping Indian Road in the South Morro Hills area and City Council authorization to acquire that site appears as a separate item on this agenda.
The Property is restricted for use for only single-family residential, agricultural, horticultural and viticultural purposes. The Surplus Land Act requires that prior to offering the Property for sale to the public, the Property must be offered to affordable home developers and certain other entities; however, the City is not required to change the zoning to accommodate a particular use proposed by any of these entities. Should no entity express an interest to acquire the Property through this process, then the City will be allowed to offer the Property for sale to the general public. The City will establish the asking price for the Property by hiring an appraiser to prepare an appraisal report to determine the current fair market value.
FISCAL IMPACT
No fiscal impact associated with declaring the Property as Surplus Land.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Vicki Gutierrez, Real Estate Manager
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Resolution