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HomeMy WebLinkAboutMinutes - January 31, 2017 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, JANUARY 31, 2017 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, January 31, 2017, commencing at 7:34 a.m. Present: Council Member Johnson, Council Member Mounce, and Mayor Kuehne Absent: Council Member Chandler, and Mayor Pro Tempore Nakanishi Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Topic(s) B-1 Discussion of Underutilized City -Owned Real Property (CM) Business Development Manager Adam Brucker provided a PowerPoint presentation regarding underutilized City -owned real property. Specific topics of discussion included 1125/1130 Awani Drive (former landfill), 22 East Locust Street, 705 East Lodi Avenue (former Fire Station No. 2), Century Boulevard Right -of -Way, and 125 North Stockton Street. In response to Council Member Mounce, Mr. Brucker stated that the most recent appraisal of the Awani Drive property was in 2007 and it was valued at $1.2 million, adding that the concept at the time was to develop the parcel into four residential lots and sell for $300,000 each. City Manager Schwabauer stated that the actual value is difficult to determine because potential developers would likely request a deduction for special conditions relating to significant engineering work because the property was formerly a landfill. Staff would not expend dollars toward the effort unless Council gave direction to sell the property. Council Member Mounce questioned the annual cost of mitigating the homeless and trespassers on the property, to which Mr. Schwabauer stated a crew of eight part-time streets workers and three police officers abate the property six times a year, but the City does not have the resources to conduct such operations more frequently because it is an expensive proposition. Council Member Mounce stated she believed it was better to sell the property under market if it was promised to be developed. Mr. Schwabauer stated there is a complicating factor that Edgewood and Mokelumne River Drives were previously identified in the development documents as the public access point, which may be a challenging legal issue to work through. In response to Council Member Johnson, Mr. Schwabauer explained that the area was identified as the legally -required public access point to the river when the homes were built and he was uncertain how to reverse that after the fact. Council Member Johnson expressed his opinion that this property is a wasting asset and it would be irresponsible of the City to pass up potentially $1.2 million, as it was previously valued. He stated that, if the property's value has significantly decreased, the City has an opportunity to turn the asset into a park, regardless of the neighborhood's feeling about public access. In response to Council Member Mounce, Mr. Brucker stated the City paid $105,000 from Community Development Block Grant (CDBG) funds to purchase the property on Locust Street, plus the demolition cost for the packing shed, for a total of $170,000. In further response, Mr. Brucker stated the property has not been appraised. Mayor Kuehne stated that the first step should be to obtain appraisals of each of the properties. Mr. Schwabauer stated that appraisals are expensive and there should be some direction from Council first. 1 Neighborhood Services Manager Joseph Wood further explained that any funds collected for the sale of the Locust Street property would need to be returned to CDBG unless future use of the property meets CDBG guidelines in serving the low-income population in that neighborhood. Council Member Mounce questioned if an affordable housing project, with the City donating the land, would meet the requirements, to which Mr. Wood responded in the affirmative. In response to Council Member Mounce, Mr. Brucker stated there is an interested parties list for the Lodi Avenue, former Fire Station 2, property, and staff has an appraisal, which will be disclosed to Council in a future Closed Session. In response to Mayor Kuehne, Mr. Schwabauer stated it took a significant amount of time to get the appraisal and that regulations for the sale of public property is mandated in the Government Code. He stated this issue will be moving forward very soon. Council Member Johnson questioned if the City must offer the property to another government agency, to which Mr. Schwabauer replied that some sales, such as park property, have that condition, while others do not. He stated that he does not recall this property meeting that specification. Mr. Brucker stated that, if Council opts to move forward with the sale, the item will be brought back to Council for adoption of a resolution. Council Member Johnson requested that, during the subject Closed Session, the list of interested parties also be disclosed, along with the value, to which City Attorney Magdich responded in the affirmative. Council Member Mounce stated that the Century Boulevard property is a poor area for a grade separation because it does not go through. Mr. Schwabauer added that it is highly unlikely the City will realize any program funding for a grade separation project in that area. Mr. Schwabauer reported that, recently, interest has been generated by the Chamber of Commerce Vision 2020 group associated with Bike Lodi to initiate a community -oriented development project for a BMX bike track on the Century Boulevard property. Mayor Kuehne suggested holding onto the Century Boulevard property to give the Chamber time to develop a plan because this was part of the recent Asset Based Community Development informational meeting. Council Member Johnson suggested working with Public Works to map the infrastructure on the Century Boulevard property and potentially rezone the parcel for industrial use, adding that the owner of the storage unit near the property may be interested. He stated that he believed a BMX track was not the best use for that property. Council Member Mounce concurred with Council Member Johnson's suggestion. Mr. Schwabauer stated that the owner of the mini -storage unit has previously expressed interest in the property. Mr. Brucker stated that the National Guard has expressed interest in acquiring the property on Stockton Street but has opted to wait until an appraisal is done. In response to Council Member Mounce, Mr. Brucker stated that he believed the Armory's interest is for the land and the Quonset hut on the property. Council Member Johnson stated it makes sense to discuss the property options with the Armory. Council Member Mounce requested advance notification if the Quonset hut is demolished. Council Member Johnson suggested staff research available options relative to the former jail on Main Street because it is rapidly degrading. Council Member Mounce stated that the property may be deemed a historical landmark and, if 2 the recommendation is unfavorable, she suggested outreach to the Lodi Historical Society to ascertain its interest in saving the building. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:59 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 3 TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Discussion of Underutilized City -Owned Real Property MEETING DATE: January 31, 2017 PREPARED BY: Business Development Manager Q-� RECOMMENDED ACTION: Discussion of underutilized City -owned real property. BACKGROUND INFORMATION: At the request of Council, staff reviewed its inventory of City -owned real property and identified six parcels which are currently underutilized and which may be candidates for disposition. Each parcel and its approximate acreage are identified in the table below. Four of the parcels are currently undeveloped, while a fifth parcel used for storage also includes former Fire Station No. 2 improvements. In some cases, the location and physical constraints of the parcel may affect the ease of use and the actual market value remains unclear. In the case of the former Fire Station No. 2 property, staff has been approached by several parties interested purchasing the property, most often citing the building and location as the primary attractors. The property has recently been appraised and staff will inform the Council of its expected market value in closed session. The sixth parcel is the site of a quonset hut which has used for storage and the site also provides access between the National Guard Armory structures and the adjacent park. The State of California expressed exploratory interest in the property. Location Acres Description 1125/1130 Awani Drive 3.00 former Lodi Landfill, previously sold and returned to City due to prior use. 1125/1130 Awani Drive 0.70 former Lodi Landfill, previously sold and returned to City due to prior use. 22 East Locust Street 0.80 vacant, undeveloped land 705 East Lodi Avenue 1.00 former Fire Station No. 2; used for storage North of Salas Park 3.00 right-of-way for Century Blvd grade separation 125 North Stockton Street 0.30 quonset hut, primarily used for storage For the Council's information, the following table identifies city -owned properties leased to various nonprofit organizations for minimal rent, as well as a summary of respective terms. If Council would like to review the particulars of one or more these relationships, staff recommends bringing the item back at a future meeting and inviting the tenant(s) to attend. Location Description former Maple Square Firehouse; leased to Alcoholics Anonymous Summary of Terms $100 month (no agreement) 2 E. Lodi Avenue 217 W. Elm Street San Joaquin County District Attorney's Office 3 yr. agreement expires 1/6/2018; 2 yr. extension $1 annual rent plus $200 month for utilities/cleaning_ 125 S. Hutchins Street Lodi Health Adult Day Care $1 annual rent plus $538 month/utilities ending 2/28/2017; 1 yr. extension 100 E. Pine Street Lodi Adopt -A -Child $1 annual rent; term ending 5/28/2020 275 Poplar Street Boys and Girls Club $1 annual rent; term ending 12/31/2049 2 N. Sacramento Street World of Wonders Museum $1,030/month; lease waiver through 2/1/2018 r St -• hen Schwaaur, City Manager Should the Council provide direction to staff that it would like to sell any underutilized property, staff will need return to a regularly -scheduled Council meeting and propose that Council adopt a resolution of its finding and intention to sell the property and to identify a date for a public hearing to allow protests to the sale (California Government Code Section 37420-37430). FISCAL IMPACT: The sale of one or more underutilized City -owned properties would generate new one-time revenues that could be used to augment existing revenue sources. The opportunity cost is unknown and is largely dependent upon the City's need for similar property in the future. FUNDING AVAILABLE: Not applicable. Adam Brun -r Business Development Manager Discussion of Underutilized Cit -owned Real Property Shirtsleeve Session January 31, 2017 1125/1130 Awani Drive (Former Landfill) Mokelu nine River -rumor Rd. State Highway Route 99 1125/1130 Awani Drive (Former Landfill) tate Hi: wa Route 9 • 1125/1130 Awani Drive (Former Landfill) Inim.W_ East Locust Street Ail 01 X 118 124 12 a� 12,E TTS] 69 2 • Ty 124 t'2 T?$ 116 108 105 40 1! 16 so 114 a, 125 P s&Roc 111 • 2:4C_. _247711 20 5 J 1 J 2 to 22 East Locust Street 22 East Locust Street i i ,._ 7051Lodi Ave (FormeLFire Station 2) •• i1 2 al 71 ICS i 1 1 Cherokee Ln izi 32) 12 1 1 3.1 Lodi Ave Hinson Dr 7.1 11. F 5. R 1 705 E Lodi Ave (Former Fire Station 2) 705 E Lodi Ave (Former Fire Station 2) Century Blvd Right -of -Way I _ qif Fna Elbe ipk 191 Swain DT • • MEI Ay 517 2J' 2111 2112 • a M • 2112 2117 2127 V 3 4%itcentury Park h p $ I� ONOCir DrM. Sb21/ SI k 402 • 1 :i, W•!t4 Ridge Dr. T# RE WWI u) 2 a Salas Park Century Blvd Right -of -Way Century Blvd Right -of -Way j .i i 125 North Stockton Street �awrencI Av, In CO Av. 1 iu --g Juo c zah1 _ rn Lipa Field Lawrence Park Lockeford St 147 #4r 125 North Stockton Street i 125 North Stockton Street i