HomeMy WebLinkAboutStaff Report 149-05a non-profit housing organization for development of affordable housing, However, because the
parcel's small size would accommodate only one or two units, staff believes a better use of the
property would be for the City to sell the property and use the proceeds to offset the costs of an
affordable housing project on a larger site, such as the proposed Alma Street substation site.
The parcel is 5,413 square feet in area, with 50-feet of street frontage on High Street. Staff
looked into the possibility of increasing the size of the City parcel by acquiring the two small
adjacent County-owned parcels; however, the County did not want to dispose of its parcels. Due
to its size, rezoning the parcel to RM-15 (Low Density Multiple-Family Residential) or RM-30
(Medium Density Multiple-Family Residential) to conform to the adjacent zoning would allow
development with only one residential unit. Under RMD (Two Unit Multiple Family Residence)
zoning, the parcel would meet the minimum lot size of 5,000 square feet, and either one or two
units would be permitted, provided that in the case of two units, both are under the same
ownership. Therefore, following Council approval declaring the parcel surplus, staff proposes to
process an application to rezone the property to RMD in order to permit two units and to produce
the maximum return for the City.
In accordance with Government Code Section 54222, which requires the City to notify certain
public agencies of its intent to dispose of surplus property, staff has notified the following
agencies about the High Street property: Palo Alto Unified School District; Housing Authority of
Santa Clara County; Santa Clara County Parks and Recreation Department; Mid Peninsula Open
Space District; and the Palo Alto Housing Corporation. No agency has responded that it had any
need for the land.
Based on its underutilization and its potential to produce a return for the City, staff is
recommending that Council declare the High Street parcel surplus and direct staff to proceed
with the necessary steps to sell the parcel. Funds from the sale will be used towards the cost of
the development of the Alma Street Substation site.
RESOURCE IMPACT
. When it returns to Council with the Request for Bid Proposals, staff will recommend a minimum
bid for the High Street parcel based on an appraisal of its market value as a multi-family
residential lot. Staff estimates a minimum bid of approximately $450,000. Oral bidding will
begin at 5 percent above the highest written bid received. If approved by Council, the net sales
proceeds from the sale could be deposited in the Residential Housing Fund to be used to offset
the costs of the proposed development of the Alma Street Substation site for affordable housing.
POLICY IMPLICATIONS
In accordance with the City'S Asset Management policy, staff periodically reviews City-owned
property to assure it is being utilized to its highest return and to identify potential surplus
property no longer needed for City/public use. Once declared surplus, property is disposed of in
accordance with the City policy for sale of real property, the general steps of which are outlined
below. In accordance with Government Code Section 54222, staff has notified the required
agencies of the High Street property.
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