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HomeMy WebLinkAboutAgenda Report - June 15, 2022 C-20CITY OF ab� zl."o CALIFORNIA COUNCIL COMMUNICATION AGENDA ITEM Co20 AGENDA TITLE: Receive Report Regarding Communication Opposing Assembly Bill 2357 MEETING DATE: June 15, 2022 PREPARED BY: City Clerk RECOMMENDED ACTION: Receive report regarding communication opposing Assembly Bill 2357. BACKGROUND INFORMATION: The City received a request for communication from the California Economic Development Association requesting members send a letter of opposition for AB 2357, immediately, in light of this bill having passed through the House of Representative to the Senate. This amendment to the Surplus Lands Act, AB 2357, expands the authority of the Department of Housing and Community Development (DCH) over surplus land decision-making at the local level. Historically, under the control of local governments, the ability of municipal districts, cities and counties to sell or lease properties they no longer need for economic development is eroding. AB 2357 removes language that preserves surplus land decision-making by local governments and gives the authority to HCD to review any action to dispose of land. Reviewing any action to dispose of land produces even longer delays than caused by AB 1486 in 2019. The City of Lodi supports the development of affordable housing on surplus land and agrees that DCH is an appropriate agency to administer provisions of the Act. However, this administration should not cause unnecessary and impractical pathways to economic development by restricting the disposal of surplus land that is unsuitable for affordable housing. This said, the City of Lodi supports suspending any further legislative actions relative to expanding the authority of DCH until more input can be obtained by holding special hearings on difficulties at the local level to accomplish economic development. The attached letter, signed by Mayor Pro Tempore, was sent out on June 7, 2022. FISCAL IMPACT: FUNDING AVAILABLE: Not applicable. Not applicable. Olivia Nashed Olivia Nashed City Clerk APPROVED, Steve Sc h W a b a U e r Stephen Schwabauer, City Manager CITY COUNCIL MARK CHANDLER, Mayor MIKEY HOTHI, Mayor Pro Tempore SHAK KHAN DOUG KUEHNE ALAN NAKANISHI June 6, 2022 The Honorable Philip Ting State Capitol, Ste. 8230 Sacramento, CA 95814 Dear Assembly Member Ting: CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 / FAX (209) 333-6807 www.lodi.aov citycierk0i)1odi.g-ov STEPHEN SCHWABAUER City Manager OLIVIA NASHED City Clerk JANICE D. MAGDICH City Attorney The City of Lodi regrets that it must Oppose AB 2357, which undermines the ability of local agencies to conduct effective and efficient economic development activities on properties they acquire or otherwise own. By removing language that preserves surplus land decision-making by local agencies, the bill expands the scope of authority for the Department of Housing and Community Development (HCD) to review "any action to dispose of /and. "This amendment includes properties retained for agency use, properties declared "exempt surplus," and properties that local agencies are authorized by other laws to acquire and dispose of for economic development purposes. The implementation of the Surplus Lands Act (SLA), including HCD's recent guidelines, have created unproductive and unnecessary delays for local government agencies seeking to dispose of land that is both suitable and unsuitable for affordable housing. Assembly Bill 2357 would compound those difficulties by expanding state reviews and delays affecting properties retained for agency use and for those properties declared exempt surplus. The City of Lodi has been delayed in disposing of land which has already completed the NOFA process with no expressions of interest. Rather than expanding the scope of the SLA in this form, the Legislature should hold special hearings to more thoroughly evaluate the difficulties, bureaucratic delays and unintended consequences caused by implementation of the existing law on local agency activities. For these reasons, the City of Lodi regrets that it must respectfully Oppose AB 2357. Please feel free to contact me at mhothi@Iodi.gov. Sincerely, / 0,*;: Mikey Hothi Mayor Pro Tempore Cc: Senator Anna Caballero, Chair, Senate Committee on Governance and Finance Senator Scott Wiener, Chair, Senate Committee on Housing Members, Senate Committee on Governance and Finance Members, Senate Committee on Housing Gurbax Sahota, Chief Executive Officer, California Association for Local Economic Development