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HomeMy WebLinkAboutItem 3b: Sale of Surplus Former Well Site on Corto Road 4°Fa R0 4, P1141":: ,In9uPn3d ,, AuYul 3,1903 4141111ty ofN W STAFF REPORT Development Services Department DATE: May 1, 2012 TO: Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director-5t4- By: Jerry Schwartz, Economic Development Manager 1:4i SUBJECT: AUTHORIZE STAFF TO PROCEED WITH THE SALE OF THE SURPLUS FORMER WELL SITE ON CORTO ROAD Recommendation: Approve SUMMARY The City of Arcadia owns a property on the north side of Corto Road, between Altura Road and Hugo Reid Drive. The parcel is assessor parcel number 5777-002-900, is approximately 13,000 sq. ft. in size, and is in the Lower Rancho Homeowners Association area. The dimensions of the property are 100 feet wide on the north, 70 feet wide on the south, 150.32 feet on the west and 166.17 feet on the east. The property is highlighted on the attached map. The properties on the remainder of the block are single family residential homes on parcels of between 11,700 sq. ft. and 16,400 sq. ft. The City property was originally used as a well site, but is no longer used for that purpose. One of the two wells on site has already been removed, and the other is being used as a monitoring well for the Raymond Basin Management Board. Once the second well is decommissioned, this property would be a surplus site that could be sold for development of a single family home, consistent with the zoning and the neighborhood around it. DISCUSSION Staff from the Development Services Department and Public Works Services reviewed the status of this site on Corto Road based on an inquiry from a local broker. It was determined that the property is not being used by the Public Works Services Department for water storage. The site is being used as a monitoring well for the Raymond Basin Management Board. Public Works Services and the Raymond Basin Management Board have indicated that there are sufficient monitoring wells in the area and they don't need the well at this site. The original deed for the property restricted its use for a reservoir or water wells, "together with any use or uses which are now or shall hereafter be permitted in the adjoining land by ordinance of the City of Arcadia." Essentially, if it is not being used for those water related purposes, it can be used as the adjoining land is used. As mentioned above, the adjoining uses are single family Sale of Former Well Site on Corto Road May 1, 2012 Page 2 of 3 residences. This site, and the adjoining properties, are zoned R-O, single family residential, on fairly large lots. The General Plan designation is Single Family Residential. This property is owned by the City and if it is sold for single family development, the proceeds would accrue to the General Fund. An experienced residential real estate broker has indicated that this property could sell for approximately $650,000 based on other vacant residential land sales in Arcadia. The property is in the Lower Rancho Homeowners Association (HOA). With the current zoning, a buyer could potentially build a two-story house following design review and analysis by the HOA. The site currently has several trees and the monitoring well. The cost to abandon the well will be approximately $25,000. The process to decommission the well will leave the site in a developable condition for a prospective purchaser. A buyer would have to meet all zoning requirements and be subject to the approval of the Lower Rancho HOA. Government Code Section 54222 requires that before the City disposes of surplus land, it must send a written offer to sell or lease to: a local entity that assists in developing low and moderate income housing, the County Park and Recreation Department, and the local school district for school facilities or open space. Other organizations, including housing sponsors who request a written offer and a program agent established by the Economic Employment and Incentive Act, are not applicable in Arcadia. Each group has to be willing to use the property in a way that is consistent with the zoning of the site, which, as mentioned above, is R-O, single family. The three organizations have been contacted about the site, and have to respond before May 23` . If one of these entities is interested in the property, the City can negotiate with that organization. However, the City is not required to sell the property to one of these organizations. If there is no interest, then the City will have met its obligation and can proceed to sell this property for single family development. If the direction is to market the site for sale, it would be with the intent to generate revenue for the General Fund. One option to accomplish that would be to engage an experienced local broker to market the site on behalf of the City. While there would be a cost involved with utilizing a broker, the professional experience and understanding of the market and potential to maximize the value should more than offset the brokerage fee. Another option would be for staff to market the site through advertising and a Request for Proposals (RFP) package. The RFP would specify what the City is looking for at the site, the minimum price it would accept, and the qualifications of the respondent to build a single family home at this location. Staff believes that the best choice is to utilize an experienced residential broker who can target the appropriate potential buyers and get the highest price possible. Sale of Former Well Site on Corto Road May 1, 2012 Page 3 of 3 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The sale of this property is not considered to be a project under the California Environmental Quality Act. When the site is developed, it will be subject to the appropriate CEQA guidelines. FISCAL IMPACT If this property is sold, the proceeds could be deposited in the General Fund. Based on a review of comparative market value for vacant residential property in Arcadia, it is estimated that the General Fund would receive in excess of $600,000 from the sale of this site, depending on brokerage fees and site preparation costs. RECOMMENDATION Authorize staff to proceed with the sale of the surplus former well site on Corto Road. 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