PC 09.a. General Plan Conformity Faeh and PearwoodMEMORANDUM
TO: PLANNING COMMISSION
FROM: TERESA MCCLISH, DIRECTOR OF COMMUNITY DEVELOPMENT
BY: ASSISTANT PLANNER
SUBJECT: CONSIDERATION OF GENERAL PLAN CONFORMITY FOR THE
DISPOSITION OF REAL PROPERTY LOCATED ON FAEH AVENUE
AND PEARWOOD AVENUE
DATE: JULY 7,2015
RECOMMENDATION:
It is recommended the Planning Commission adopt a Resolution finding that the
disposition of real property located on Faeh Avenue and real property located on
Pearwood Avenue is consistent with the General Plan.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Revenue from the sale of the Faeh Avenue property will be paid to the property taxing
agencies. As one of the agencies, the City will receive a portion of the revenue, which
has been included in the FY 2014-15 Annual Budget revenue estimates. Revenue
from the Pearwood Avenue property is intended to be used for an affordable housing
project in the City by the Housing Authority of the City of San Luis Obispo. There will
be measurable staff time required by the City Manager and Director of Community
Development in order to execute the sale of the properties.
BACKGROUND:
Faeh Avenue Property
The former Redevelopment Agency acquired a vacant parcel at Faeh Avenue and El
Camino Real in 2006 to facilitate development of a hotel or mixed use project with
affordable housing. With the dissolution of Redevelopment Agencies in 2012, the City
Council became the Successor Agency to the dissolved Redevelopment Agency. On
April 26, 2013, the Successor Agency received a "Finding of Completion" from the State
Department of Finance ("DOF"). On February 7, 2014, the Successor Agency received
approval of the Long-Range Property Management Plan, which outlines the process for
disposal of properties formerly owned by the Redevelopment Agency. The only
property involved is the Faeh Avenue Property.
On September 23, 2014, the Successor Agency approved preliminary steps to begin
selling the property, beginning with adopting a Resolution to transfer the property to a
PLANNING COMMISSION
CONSIDERATION OF GENERAL PLAN CONFORMITY FOR THE DISPOSITION OF
PROPERTY
JULY 7,2015
PAGE 2
Community Redevelopment Property Trust Fund, established pursuant to State
regulations. In addition, an appraisal has been completed and a Request for Proposals
(RFP) has been distributed and responses have been received from real estate agents.
Pearwood Avenue Property
On September 22, 2009 the City Council adopted a General Plan Amendment and
introduced an Ordinance prezoning the Pearwood property. A Resolution was adopted
and Ordinance introduced and adopted for the Pearwood annexation at the October 13
and 27, 2009 hearings. The property was subsequently approved for annexation by the
Local Agency Formation Commission in 2010. The Planning Commission approved a
Tentative Tract Map in June 2010 that subdivided the 7.16-acre parcel into four (4)
residential lots and one (1) open space lot for drainage.
The Pearwood property is deemed a housing asset that is owned by the City and does
not fall under the jurisdiction of the Successor Agency to the Dissolved Redevelopment
Agency. The property is subject to the Surplus Land Act and, as such, will require
offering the property for sale or lease for affordable housing and parMrecreational/open
space purposes in accordance with Government Code 54221. Proceeds from any sale
are intended to be used for an affordable housing project in the City by the Housing
Authority of the City of San Luis Obispo. It is not governed by the Long Range Property
Management Plan and no additional Successor Agency, Oversight Board, or DOF
approvals are necessary for the City to sell or develop the property.
On April 7, 2015, the Planning Commission appointed Commissioner Martin to
participate on a selection committee for the realtor.
ANALYSIS OF ISSUES:
Pursuant to Government Code 5 65402, prior to disposing of surplus property, a local
agency is required to submit the matter to the Planning Commission for a determination
of whether the proposed sale is in conformity with the City's General Plan. For the Faeh
Avenue Property, the next steps for disposal of this property include the selection of an
agent and listing the property for sale. The Successor Agency will need to select an
agent conditioned on both Oversight Board approval and DOF approval. The "net sales
proceeds" will be transferred to the County Auditor-Controller and then distributed to the
taxing agencies. Sale of the Faeh property will allow infill commercial or hotel
development in the Highway Mixed-Use zoning district, which is consistent with the
General Plan Land use and Economic Elements.
For the Pearwood Avenue Property, the 2009 General Plan amendment and
Ordinance approving the annexation and zoning amendment were found to be
consistent with the General Plan in that it the Pearwood property was underutilized land
that as re-designated and rezoned could result in infill housing. Sale of the Pearwood
property will allow single family homes to be constructed immediately adjacent to an
existing residential neighborhood with consistent development standards. Additionally,
PLANNING COMMISSION
CONSIDERATION OF GENERAL PLAN CONFORMITY FOR THE DlSPOSlTlON OF
PROPERTY
JULY 7,2015
PAGE 3
the sale of property is consistent with General Plan Land Use Policy LU2, which states
"Accommodate a broad range of Single Family Residential housing densities within the
City" and sub-policy LU2-4, which states "Accommodate the development of urban
single-family residential units in areas designated as Single-Family Residential -
Medium Density".
ALTERNATIVES:
The following alternatives are presented for the Commission's consideration: - Adopt the proposed Resolution finding that the disposition of real property located
on Faeh and Pearwood Avenues is consistent with the General Plan; - Do not adopt the Resolution finding that the disposition of real property located on
Faeh and Pearwood Avenues is consistent with the General Plan; or - Provide direction to staff.
ADVANTAGES:
The finding of conformity will allow the sale of the City owned property to proceed
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
Staff has reviewed the disposition of properties and determined that the disposition is
categorically exempt per section 15312 of the CEQA Guidelines regarding surplus
government property sales.
PUBLIC NOTICE AND COMMENT:
The agenda was posted in front of City Hall and on the City's website on Thursday, July
2, 2015.
RESOLUTION NO.
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF ARROYO GRANDE FINDING THAT THE
DISPOSITION OF REAL PROPERTY LOCATED ON FAEH
AVENUE AND REAL PROPERTY LOCATED ON
PEARWOOD AVENUE (TRACT 3017) IS CONSISTENT
WITH THE GENERAL PLAN
WHEREAS, on October 13, 2009 the City Council adopted a Resolution and introduced
an Ordinance for the Pearwood annexation that was adopted on October 27,2015; and
WHEREAS, on June 1, 2010, the Planning Commission approved Vesting Tentative Tract
Map 3017 and Planned Unit Development 09-002 for the subdivision and cluster
development of the newly annexed property; and
WHEREAS, the City desires to sell the Pearwood property, the proceeds of which will be
used for an affordable housing project in the City by the Housing Authority of the City of
San Luis Obispo; and
WHEREAS, on July 25, 2006, the City Council approved a financing agreement between
the City and former Redevelopment agency for the purchase of vacant property on Faeh
Avenue and El Camino Real to facilitate a hotel or other project; and
WHEREAS, due to the State's dissolution of Redevelopment Agencies, the Successor
Agency is required to dispose of former Redevelopment Agency property; and
WHEREAS, the Successor Agency desires to sell the Faeh property and distribute the
proceeds to the property taxing entities; and
WHEREAS, the Planning Commission had previously adopted a Mitigated Negative
Declaration and filed a Notice of Determination for the Pearwood subdivision, in
compliance with the California Environmental Quality Act (CEQA) the State CEQA
Guidelines, and the Arroyo Grande Rules and Procedures for Implementation of CEQA;
and
WHEREAS, the Planning Commission has reviewed the disposition of the Faeh Avenue
property in compliance with CEQA, the State CEQA Guidelines, and the Arroyo Grande
Rules and Procedures for lmplementation of CEQA and has determined that the project is
exempt per Section 15312 of the CEQA Guidelines regarding surplus government
property sales.
MOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of
Arroyo Grande hereby finds that the disposition of the real property located on Faeh
Avenue and the real property located on Pearwood Avenue is consistent with the City's
General Plan.
RESOLUTION NO.
PAGE 2
On motion by Commissioner , seconded by Commissioner , and by the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
the foregoing Resolution was adopted this 7'h day of July 2015.
ATTEST:
DEBBIE WEICHINGER,
SECRETARY TO THE COMMISSION
AS TO CONTENT:
TERESA McCLISH,
COMMUNITY DEVELOPMENT DIRECTOR
LAN GEORGE, CHAIR