HomeMy WebLinkAboutStaff Report 317-05
CMR: 31 7:05 Page 1 of 2
TO: HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: JULY 19, 2005 CMR: 317:05
SUBJECT: RESULTS OF DIRECTION TO STAFF TO EXPLORE
ALTERNATE PROPOSALS TO THE RECOMMENDATION TO
DECLARE AS SURPLUS PROPERTY A PARCEL ON HIGH
STREET NEAR OREGON EXPRESSWAY
RECOMMENDATION:
Staff recommends that the Finance Committee recommend to the City Council that it:
1) Declare a portion of a City-owned parcel located on High Street near Oregon Expressway
to be surplus property;
2) Direct staff to process an application to change the zoning from Public Facility (PF) to
Two Unit Multiple Family District (RMD); and,
3) Return to Council for approval of the Request for Bid Proposal (RFBP) to dispose of the
property using an open bid procedure in accordance with the City policy for sale of
surplus property. Funds from the sale of the High Street property will be used to fund the
proposed redevelopment of the Alma Substation property for affordable housing.
BACKGROUND
On February 15, 2005, the Finance Committee considered the staff recommendation that Council
declare as surplus property a parcel on High Street near Oregon Expressway (see attached
CMR:149:05). Committee discussion focused on alternatives which might increase opportunities
for housing, such as the purchase of adjacent properties for the purpose of combining them with
the City-owned parcel. The Committee voted unanimously to direct staff to have discussions
with the Santa Clara County Housing Aut hority and/or other local housing groups to explore the
merit of pursuing this type of alternative to the recommended proposal, and to return to the
Finance Committee with the results of the discussions.
DISCUSSION
In accordance with the Committee’s direction, staff asked the Palo Alto Housing Corporation
(PAHC) to explore the feasibility of purchasing adjacent properties for the purpose of combining
them with the City-owned parcel to create a larger parcel accommodating more housing. As
detailed in the attached e-mail from the Executive Director, PAHC has determined that the cost
of purchasing the properties at current market rate would be very expensive for properties that
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would eventually be demolished to have land for new construction. In addition, the location is
not desirable and the neighborhood amenities, which are required to win financing competitions,
are not present. PAHC is of the opinion that there are other opportunities that would be more
productive to pursue.
Staff also explored with the Housing Authority of Santa Clara County (HACSC) the feasibility
of combining the City and County parcels to develop an affordable housing project. HACSC has
concluded the proposal is not feasible for several reasons, including the size of the lot being too
small for an affordable housing project with enough units to permit economies of scale in
development, the shape of the lot being too narrow and fragmented for efficient design and site
planning, and the lack of amenities within convenient walking distanc e (see attached HACSC e-
mail).
PREPARED BY:
WILLIAM W. FELLMAN
Manager, Real Property
DEPARTMENT HEAD APPROVAL:
CARL YEATS
Director, Administrative Services
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
ATTACHMENTS
Attachment 1: CMR 149:05
Attachment 2: June 7, 2005 e-mail message from Palo Alto Housing Corporation
Attachment 3: June 30, 2005 e-mail message from SCC Housing Authority