To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Resolution Declaring the Property at 100 38th Street, in Richmond, to be Exempt Surplus Land
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a resolution declaring County-owned property located at 100 38th Street, in Richmond, Assessor’s Parcel No. 517-340-004, to be exempt surplus land based on the planned development of affordable housing and ancillary ground-floor commercial uses on the property, in accordance with Government Code Section 54221(f)(1)(F).
FISCAL IMPACT:
Declaring the property to be exempt surplus land has no fiscal impact.
BACKGROUND:
Property and Proposed Development
The County owns an approximately 2.0-acre parcel, located at 100 38th Street, in Richmond, having Assessor’s Parcel No. 517-340-004. The property is the site of the former West County Health Center, which has been relocated to San Pablo. The subject property is improved with a multi-story, 83,884 square-foot building that has been vacant since November 2018. The subject property is no longer needed for County purposes and the County desires to dispose of the property.
Before disposing of surplus land, local agencies are required to satisfy the requirements of the Surplus Land Act, Government Code section 54220, et seq. (the “SLA”). In 2019, following notifications to various housing groups in accordance with the provisions of the SLA then in effect, a partnership between Eden Housing, Inc., a California nonprofit public benefit corporation, and Community Housing Development Corporation of North Richmond, a California nonprofit public benefit corporation, (together, the “Developer”) proposed building affordable housing on the subject property in two phases. In the first phase, the Developer will rehabilitate the existing building to create 59 supportive housing units affordable to very low-income households. In the second phase, the Developer will construct a new building with 76 family housing units affordable to low-income households, and approximately 8,500 square feet of ground floor commercial space, including a YMCA childcare facility. (Together, the two phases are the “Development.”)
In December 2019, the Board of Supervisors authorized an Exclusive Negotiating Rights Agreement (ENRA) between the County and the Developer. The ENRA enabled the Developer to perform due diligence on the property, apply for land use entitlements from the City of Richmond and negotiate the purchase price for the property.
On October 4, 2022, the City Council for the City of Richmond unanimously approved land use entitlements for the Development. On July 18, 2023, the County and the Developer entered into an option agreement, establishing the purchase price of the property. The Developer now plans to seek financing for the construction of the first phase of the Development.
Resolution Declaring the Property to be Exempt Surplus Land
Effective January 1, 2020, the SLA was amended to require local agencies to declare surplus land to be either “exempt surplus land,” or “surplus land,” prior to disposing of the land. Declaring the property to be “exempt surplus land” streamlines the process for disposing of land. The SLA includes various types of “exempt surplus land,” including an exemption for certain affordable housing projects in Government Code section 54221(f)(1)(F). Under that exemption, land that will be developed as affordable housing must meet the following requirements: (i) at least 75% of the residential units must be restricted and affordable to lower-income households, and (ii) the remaining residential units must be restricted to low or moderate-income households. (Gov. Code, § 54221(f)(1)(F)(i).) Ancillary ground-floor commercial space is permitted. As explained above, the Development meets these requirements.
A restrictive covenant must be recorded against the subject property to restrict the use of the property to affordable housing meeting the above requirements for a minimum of 55 years (in the case of affordable rental property). (Gov. Code, § 54221(f)(1)(F)(ii).) In connection with the sale of the property, a restrictive covenant meeting these requirements will be recorded against the subject property at the time it is conveyed to the Developer.
Real Estate Division staff recommend that the Board adopt the attached resolution declaring the subject property to be exempt surplus land under Government Code section 54221(f)(1)(F). The resolution will then be forwarded to the California Department of Housing and Community Development at least 30 days before the transfer of the property to the Developer.
CONSEQUENCE OF NEGATIVE ACTION:
The subject property would not be declared to be “exempt surplus land” under Government Code section 54221(f)(1)(F).