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Staff Report PREPARED BY: ARN ANDREWS Assistant Town Manager Reviewed by: Town Manager and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 09/19/2017 ITEM NO: 10 DATE: SEPTEMBER 13, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: UPDATE ON THE DISPOSITION OF SURPLUS TOWN PROPERTIES RECOMMENDATION: It is recommended that the Town Council accept the update on the disposition of surplus Town properties and provide any further direction as deemed necessary. BACKGROUND: On March 15, 2016, the Town Council adopted resolution 2016-010 which resolved that the property at 20 Dittos Lane and the property at 14850 Winchester Boulevard be deemed surplus to the needs of the Town. In addition on September 6, 2016, the Town Council adopted resolution 2016-045 which resolved that the property at 4 New York Avenue also be deemed surplus to the needs of the Town. Per the Council’s direction in the 2017-2019 Strategic Priorities, staff has been working to sell or lease the aforementioned Town properties. DISCUSSION: Dittos Lane: The subject property is located at 20 Dittos Lane and is further identified as Assessor Parcel Number (APN) 529-29-034. This property was purchased by the former Los Gatos Redevelopment Agency (“Agency”) for development of below market rate housing. The Agency was unsuccessful in developing the project in partnership with a private developer. As such, on January 13, 2017, the Town issued a request for proposals (RFP) for Dittos Lane which stipulated that proposals would be evaluated either for their ability to maximize financial return to the Town or be able to meet some of the Town’s below market rate (BMR) residential needs. Due to the original intent and nature of funding for the property , pursuing a BMR alternative is PAGE 2 OF 2 SUBJECT: UPDATE ON DISPOSITION OF SURPLUS TOWN PROPERTIES DATE SEPTEMBER 13, 2017 S:\COUNCIL REPORTS\2017\09-19-17\Town Properties\Staff Report - Town Properties Final.docx 9/14/2017 1:14 PM SLL appropriate. Habitat for Humanity was the only BMR proposer to surface through the RFP process. Recently, a potential BMR concept came forward and staff is exploring this additional option as well. As development proposals, proposers are advised to utilize the Town’s Conceptual Development Advisory Committee prior to application submittal. The land use development process is independent of the surplus property decision. Winchester: The subject property is located at 14850 Winchester Boulevard and is further identified as Assessor Parcel Number (APN) 424-31-055. A portion of the property is currently utilized by the Santa Clara County Fire Department (SCCFD) through a long-term lease extending until 2036. Due to the synergies associated with the existing SCCFD station located on the adjacent property, staff is currently engaged in direct negotiations with SCCFD. New York Avenue: The subject property is located at 4 New York Avenue and is further identified as Assessor Parcel Number (APN) 529-27-024. The site is an irregularly shaped parcel of approximately 74,487 square feet with a vacant 3,720 square foot building. The subject property is adjacent to Los Gatos High School. Due to the synergies associated with the High School being the dominant land use in the area, staff is currently engaged in direct negotiations with the School District. CONCLUSION: Accept staff’s surplus property update report and provide any further direction as deemed necessary. COORDINATION: This memorandum was prepared in coordination with the Town Attorney’s Office. FISCAL IMPACT: No fiscal impact until/if properties are monetized. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required.