Surplus PropertyPREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Assistant Town Manager Town Attorney Finance
MEETING DATE: 03/15/16
ITEM NO: 4
COUNCIL AGENDA REPORT
DATE: MARCH 3, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION:
A. DECLARING CERTAIN REAL PROPERTY ON DITTOS LANE, APN 529-29-034
SURPLUS TO THE NEEDS OF THE TOWN;
B. DECLARING CERTAIN REAL PROPERTY ON WINCHESTER AVENUE AT
LARK AVENUE, APN 424-31-055 SURPLUS TO THE NEEDS OF THE TOWN;
AND
C. DIRECTING STAFF TO CONDUCT NOTIFICATION REQUIREMENTS
PURSUANT TO CALIFORNIA GOVERNMENT CODE §54222.
D. DIRECTING STAFF TO EXPLORE OPPORTUNITIES FOR SALE OF THE
PROPERTIES SUBSEQUENT TO COMPLETION OF THE REQUIRED
NOTIFICATIONS.
RECOMMENDATION:
Adopt a resolution (Attachment 1):
1. Declaring certain real property on Dittos Lane, APN 529-29-034 (Exhibit 1 to Attachment 1) surplus
to the needs of the Town;
2. Declaring certain real property on Winchester Avenue at Lark Avenue, APN 424-31-055 (Exhibit 2
to Attachment 1) surplus to the needs of the Town; and
3. Directing staff to conduct notification requirements pursuant to California Government Code §54222
for both properties.
4. Directing staff to explore opportunities for sale of the properties subsequent to completion of the
required notifications.
BACKGROUND:
Dittos Lane
The former Los Gatos Redevelopment Agenc y (RDA) purchased the property at Dittos Lane in
December 2009 for approximately $3.8 million with funds that can only be used for affordable housing.
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MAYOR AND TOWN COUNCIL
SUBJECT: SURPLUS PROPERTIES
MARCH 3, 2016
BACKGROUND (cont’d):
The RDA attempted to develop the property for that use and was ultimately unsuccessful in doing so.
The property is currently restricted for affordable housing use as an RDA property and is scheduled to
revert to the control of the State in 2017. If the property is sold, revenue from the sale of the property
will result in all funds up to the $3.8 million amount paid reverting to the Town’s Successor Agency
Low and Moderate Income Trust, restricting use to low and moderate housing expenses. Any additional
revenue from the sale of the property above the $3.8 million original purchase may be restricted as to its
use. At this time the legal issue of the restriction of any excess funds, should there be any, remains
undetermined. Staff’s position remains that these funds would be diverted to the Town’s General Fund,
however a determination from the Department of Finance has not yet been made.
Winchester Avenue
The property on Winchester Avenue at the corner of Lark Avenue has been owned by the Town for
many years, with Town records going back to the 1950’s and 1960’s. The parcel is currently separated
into two lots with one lot occupied by County Fire in a long term lease that expires in the year 2036.
The other lot has been vacant and is utilized on an ongoing basis by Goodwill for a donation drop-off
station and for a Christmas tree lot and a pumpkin patch during the holidays.
California Government Code Requirements
Prior to offering a property for sale publicly, the California Government Code §54222 requires
government agencies to offer properties for potential sale to specific entities, including:
Housing providers for low or moderate income housing.
Parks, recreation, and open space providers.
School districts.
Infill or transit village interests – not applicable in Los Gatos
Enterprise zone interests – not applicable in Los Gatos
If there is interest by one of these entities, the Town would need to negotiate in good faith to sell the
property. Entities must notify the Town of their interest within 60 days of receipt of notice. The Town
could set the terms of any negotiation (price and other terms the Council may wish to consider) and the
parties must then negotiate in good faith for a period of at least 90 days, at which point the property may
be sold publicly if no deal has been reached.
DISCUSSION:
The Town has no identified municipal need for either the Dittos Lane or the Winchester properties.
Identifying these properties as surplus and beginning the California Government Code §54222 process
allows flexibility for the Town to explore the sale of these properties, without obligating the Town to
sell the properties.
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MAYOR AND TOWN COUNCIL
SUBJECT: SURPLUS PROPERTIES
MARCH 3, 2016
DISCUSSION (cont’d):
With Council approval, staff will begin the notification process per California Government Code
§54222. If interest is expressed by the entities identified, staff will bring that information to the Council
for review. Following the 60 day period, if no interest has been expressed, staff will pursue other
alternatives for sale of the properties, with regular updates for the Council through the appropriate open
session or closed session Council meetings.
Both of the properties have General Plan and Zoning designations that will allow for future
development. Specifically, Dittos Lane has a General Plan designation of Medium Density Residential
(5 to 12 units per acre) and a Zoning designation of RM:12-20, which are the same designations when
the site supported three housing units. Winchester/Lark has a General Plan designation of Public and a
Zoning designation of Office. Subsequent to any sale of these properties, each propert y would be
subject to applicable development standards, including the General Plan, Zoning Code, and other
applicable ordinances and policies.
CONCLUSION:
Staff recommends that the Council adopt a resolution:
1. Declaring certain real property on Dittos Lane, APN 529-29-034 surplus to the needs of the Town;
and
2. Declaring certain real property on Winchester Avenue at Lark Avenue, APN 424-31-055 surplus to
the needs of the Town; and
3. Directing staff to conduct notification requirements pursuant to California Government Code §54222
for both properties.
4. Directing staff to explore opportunities for sale of the properties subsequent to completion of the
required notifications.
FISCAL IMPACT:
There is no fiscal impact from this action.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Resolution
ATTACHMENT 1
RESOLUTION 2016-
RESOLUTION OF THE TOWN OF LOS GATOS DECLARING REAL PROPERTY AT
14650 WINCHESTER BOULEVARD AND AT DITTOS LANE SURPLUS TO THE
NEEDS OF THE TOWN
RESOLVED, by the Town Council of the Town of Los Gatos California, that:
WHEREAS, the Town of Los Gatos owns certain real property on Dittos Lane identified
by assessor’s parcel number (APN) 529-29-034 (Exhibit 1); and
WHEREAS, the Town of Los Gatos owns certain real property at 14650 Winchester
Boulevard identified by APN 424-31-055 (Exhibit 2); and
WHEREAS, the Dittos Lane property and the Winchester Avenue property are no longer
necessary for municipal use.
NOW, THEREFORE, IT IS HEREBY ORDERED:
1. That the Dittos Lane Property be deemed surplus to the needs of the Town; and
2. That the Winchester Avenue property be deemed surplus to the needs of the Town; and
3. That Town staff conduct required notifications per California Government Code §54222;
and
4. Staff undertake opportunities to sell the properties, bringing offers with terms to the Town
Council for review as allowed by code.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos held on the 15th day of March 2016, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Exhibit 1