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SR - RES-10981 - SALE OF CITY-OWNED PROPERTY LOCATED AT 2935 E WALNUT AVENUE1. SUBJECT Resolution No. 10981 — A Resolution of the City Council of the City of Orange finding that certain City -owned real property located at 2935 E. Walnut Avenue in the City of Orange is surplus to the City's needs and authorizing the sale of said property. 2. SUMMARY The City purchased the vacant parcel at 2935 E. Walnut Avenue in 1975 for the future construction of Walnut Avenue Bridge over Santiago Creek. Since that time it has been determined that this parcel is not needed for the future bridge. 3. RECOMMENDED ACTION Adopt Resolution No. 10981. 4. FISCAL IMPACT There will be no financial impact to the City. 5. STRATEGIC PLAN GOAL(S) Id. Provide for a safe community — Assure the development of the City occurs in a fashion that maximizes public safety. 2d. Be a fiscally healthy community — Effectively manage and develop City assets. 6. GENERAL PLAN IMPLEMENTATION Infrastructure Element Goal 3.0: Ensure adequate maintenance of public rights -of -way to enhance public safety and improve circulation. Policy 3.1: Continue to maintain and repair sidewalks and pavement surfaces on public rights - of -way. 7. DISCUSSION and BACKGROUND The subject parcel was developed in 1963 with a single family house as part of Tract 4626. After construction by the builder, it was sold and occupied. The house was severely damaged in the 1969 flood of the adjacent Santiago Creek. After the flood, the remaining house was abandoned. The County, City, and Army Corp of Engineers redesigned the Santiago Creek and concrete lined it to its present day configuration. In 1975, because of delinquent property taxes, the County Tax Collector offered the parcel for sale. The City purchased the parcel for $100 because the design of the proposed Walnut Avenue bridge crossing Santiago Creek had not been completed yet and it was unknown if this parcel would be required for it. Since then, the location of the bridge has been defined and will be south of this parcel. Since the City took ownership of this parcel in 1975, there has been a continual problem with trespassing, abandoned vehicles, illegal dumping, discarded furniture, etc. The property is zoned for a single family residence. The parcel is approximately 7,596 square feet, and encumbered with an access easement in favor of the Orange County Flood Control District. This easement is approximately 365 square feet, leaving the net useable parcel 7,231 square feet (say 7,230 square feet). Professionals in the real estate and investment field have indicated to staff the real estate market is excellent right now and it is a "seller's market ". Upon the adoption of Resolution No. 10981, staff will initiate the process of offering the property to other agencies and non - profit groups as required by law. Upon their decline or interest to purchase the property or expiration of the offer to purchase the property (60 days minimum), staff will engage the services of a local real estate realtor to advertise and market the property. Any sale of the property negotiated by the realtor and City real property agent will be subject to City Council approval prior to entering escrow. In order to accommodate two way traffic and keep existing on- street parking, about $30,000 will be needed from the sales proceed to widen Walnut Street by 12 ft. The street widening will also provide necessary emergency vehicle access to the Santiago Creek bike trail. 8. ATTACHMENTS • Resolution 10981 • Assessor's map (showing A.P.N. 383 - 193 -60) RESOLUTION NO. 10981 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE FINDING THAT CERTAIN CITY -OWNED REAL PROPERTY LOCATED AT 2935 E. WALNUT AVE. IN THE CITY OF ORANGE IS SURPLUS TO THE CITY'S NEEDS AND AUTHORIZING THE SALE OF SAID PROPERTY. WHEREAS, the City of Orange (the "City") is a municipal corporation exercising governmental functions and powers, organized and existing under the laws of the State of California; and WHEREAS, the City owns property, which consists of approximately 7,546 square feet and commonly known as 2935 E. Walnut Ave. (Assessor's Parcel No. 383 - 193 -60) (the "Property"); and WHEREAS, as authorized by California Government Code Section 37350, the City Council finds and determines that the Property is not needed for the purpose for which it was acquired or for any other public purpose and is, therefore, surplus real property; and WHEREAS, in accordance with California Government Code Sections 54220 et seq., the City has extended written offers to sell the Property to certain public and private entities described therein; and prior to disposing of the Property will consider and negotiate any offers received from such entities for at least the time period required in said Sections 54220 et seq.; and WHEREAS, pursuant Section 65402 of the California Government Code, the City Council finds and determines that the location, purpose and extent of the proposed disposition of the Property, have been considered and reported on by the Director of the Community Development Department of the City and that said proposed disposition to the Buyer in accordance with the terms and provisions of the Purchase Agreement conforms to the City's adopted general plan; and WHEREAS, this City Council, as the "lead agency" under the California Environmental Quality Act ( "CEQA "), finds and determines that the sale of the Property is categorically exempt from the provisions of CEQA under Section 15312 of the State CEQA Guidelines relating to the sale of surplus government property; and WHEREAS, the City Council believes that the sale of the Property is to the common benefit of the City and its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. CITY COUNCIL MINUTES OCTOBER 11, 2016 3. CONSENT CALENDAR (Continued) 3.23 RESOLUTION NO. 10980 (P2500.0.1) A Resolution of the City Council of the City of Orange finding that certain City -owned real property located in the City of Orange bounded to the west by the northbound I -5 Access Ramp from Chapman Avenue to the north by 299 N. State College Blvd., to the east by 300 N. Rampart St. and to the south by 3101 W. Chapman Ave. is surplus to the City's needs and authorizing the sale of said property. ACTION: Approved. 3.24 RESOLUTION NO. 10981 (P2500.0.1) A Resolution of the City Council of the City of Orange finding that certain City -owned real property located at 2935 E. Walnut Avenue in the City of Orange is surplus to the City's needs and authorizing the sale of said property. ACTION: Approved. Mayor pro tem Murphy recorded an abstention on Item 3.4. Item 3.8 was removed from the Consent Calendar and heard separately. All other items on the Consent Calendar were approved as recommended. MOTION — Murphy SECOND — Nichols AYES — Alvarez, Whitaker, Smith, Murphy, Nichols END OF CONSENT CALENDAR * * * * * * ** 4. REPORTS FROM MAYOR SMITH — None 5. REPORTS FROM COUNCILMEMBERS — None 6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS — None PAGE 10