Ordinance 3337CITY OF ALAMEDA ORDINANCE NO. 3337
NEW SERIES
AUTHORIZING ACCEPTANCE OF THE PROPERTY LOCATED AT
2350 FIFTH STREET FROM THE SUCCESSOR AGENCY TO THE
COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF
ALAMEDA IN ACCORDANCE WITH THE TERMS OF A PURCHASE
AND SALE AGREEMENT BETWEEN THE CITY AND THE
SUCCESSOR AGENCY TO THE COMMUNITY IMPROVEMENT
COMMISSION OF THE CITY OF ALAMEDA; AND AUTHORIZING THE
CITY MANAGER, OR DESIGNEE, TO EXECUTE THE PURCHASE
AND SALE AGREEMENT FOR AN AMOUNT NOT TO EXCEED
$430,000 WITH THE SUCCESSOR AGENCY AND TO TAKE OTHER
ACTIONS NECESSARY TO COMPLETE CONVEYANCE OF THE
PROPERTY
WHEREAS, pursuant to AB1x26 (as amended by AB 1484 and SB 107,
collectively referred to as the "Dissolution Act"), the separate legal entity known as the
Successor Agency of the Community Improvement Commission of the City of Alameda
("SACIC") is responsible for disposing of the properties of the former Community
Improvement Commission of the City of Alameda ("CIC"); and
WHEREAS, pursuant to the Dissolution Act (Health & Safety Code Section
34191.5), the SACIC prepared a Long -Range Property Management Plan ("LRPMP")
which addressed the disposition and use of the real properties of the CIC; and
WHEREAS, the LRPMP was approved by the Oversight Board for the SACIC on
February 24, 2015 and approved by the State of California Department of Finance
("DOF") by letter dated March 12, 2015; and
WHEREAS, pursuant to the Dissolution Act (Health & Safety Code Section
34191.3), the approved LRPMP shall govern, and supersede all other statutory provisions
relating to the disposition and use of all the real property assets of the Former CIC; and
WHEREAS, the approved LRPMP provides that the real property commonly
referred to as the "Bottle Parcel" due to its shape, located at 2350 Fifth Street, Alameda,
California (APN 074-1356-023), consisting of approximately 0.82 acres, shall be
marketed for sale at fair market value, with the net proceeds to be distributed among the
local taxing entities; and
WHEREAS, the LRPMP estimates the value of the Bottle Parcel at $250,000; and
WHEREAS, an appraisal dated October 18, 2022, appraises the estimated market
value of the fee simple interest in the subject property, in its as -is condition, as of July 23,
2022, to be four hundred thirty thousand dollars ($430,000); and
WHEREAS, after diligent and good faith efforts to market the Bottle Parcel,
including two separate negotiations for sale with potential buyers in 2018 and 2020 that
were ultimately not consummated, the SACIC has been unable to sell the Bottle Parcel
to a private developer at fair market value, in part because the Bottle Parcel currently
lacks access to municipal utility services required for further development; and
WHEREAS, on October 2, 2018, pursuant to SB 850, Chapter 48, Statutes of 2018
and Government Code Section 8698.2, the City of Alameda ("City") declared a shelter
crisis within the City; and
WHEREAS, on January 8, 2020, Governor Gavin Newsom issued Executive Order
N-23-20 "to reduce street homelessness, break down barriers to homeless individuals
accessing health care and other critical services, and to increase housing options for
those experiencing homelessness," and requesting government and non-profit agencies
"to examine their own ability to provide shelter and house homeless individuals on a short-
term emergency basis and coordinate with local authorities to provide shelter and house
individuals"; and
WHEREAS, on or about November 16, 2021, the City, the SACIC, Five Keys
Schools and Programs ("Five Keys"), a California nonprofit public benefit corporation, and
DignityMoves, a California nonprofit public benefit corporation, (collectively, "Grant
Applicants") entered into a Memorandum of Understanding to apply for a grant from the
State Housing and Community Development Department's ("HCD") Project Homekey
Round 2 fund ("Homekey") to develop interim supportive housing on the Bottle Parcel;
and
WHEREAS, the 2021 Memorandum of Understanding between the Grant
Applicants set forth the general terms, scope, and purpose of the Homekey project on the
Bottle Parcel, and the Applicants' responsibilities thereto; and
WHEREAS, on or about March 1, 2022, HCD approved the Grant Applicants'
Homekey application and awarded them a $12.3 million grant to develop interim
supportive homeless housing on the Bottle Parcel; and
WHEREAS, as required to effect HCD's Homekey grant, and as previously
approved by the City Council, the City, SACIC, DignityMoves and Five Keys will enter into
a Standard Agreement with HCD setting forth the terms and allowable expenditures and
activities for development of the Bottle Parcel pursuant to the Homekey grant; and
WHEREAS, as required to comply with the Dissolution Act and the approved
LPRMP, and to allow construction and eventual operation of the interim supportive
homeless housing development pursuant to the Homekey grant, the SACIC must transfer
title to the Bottle Parcel to the City; and
WHEREAS, to transfer title to the Bottle Parcel to the City, the SACIC and the City
must execute a purchase and sale agreement; and
WHEREAS, the City Manager requires authorization from the City Council to
execute a purchase and sale agreement reflecting a purchase price of $430,000 and to
take other actions necessary to transfer of the Bottle Parcel to the City.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda
that:
SECTION 1. The foregoing recitals are true and correct, and, together with
information provided by City staff and the public, if any, form the basis for the approvals,
findings, resolutions, and determinations set forth below.
SECTION 2. The City Council approves, authorizes, and directs acceptance of
title to the Bottle Parcel from the SACIC to the City in accordance with the terms and
conditions of a purchase and sale agreement to be executed by the City Manager.
SECTION 3. The City Council approves, authorizes, and directs the City Manager
to execute a conveyance agreement to transfer title to the Bottle Parcel from the SACIC
to the City, and to take all actions necessary to successfully implement the purchase and
sale agreement and complete disposition of the Bottle Parcel to the City.
SECTION 4. The City approves, authorizes, and directs the City Manager to take
all actions necessary and appropriate under the Dissolution Act to effectuate the purposes
of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause or phrase of this
Ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this Ordinance. The
City Council of the City of Alameda hereby declares that it would have passed this
Ordinance, and each section, subsection, clause, or phrase hereof, irrespective of the
fact that any one or more sections, subsections, sentences, clauses, or phrases are
declared to be invalid and unconstitutional.
SECTION 6. This Ordinance shall be in full force and effect from and after the
expiration of thirty (30) days from the date of its final passage.
Attest:
Lara Weisiger, City Clerk
U
Presiding Officer of #1E) City Counc
I, the undersigned, hereby certify that the foregoing Ordinance was duly and
regularly adopted and passed by the Council of the City of Alameda in a regular meeting
assembled on the 20th day of December, by the following vote to wit:
AYES: Councilmembers Daysog, Knox White, Vella and Mayor Ezzy
Ashcraft — 4.
NOES: Councilmember Herrera Spencer —1
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of
said City this 21st day of December.
Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
Yibin Shen, City Attorney
City of Alameda