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HomeMy WebLinkAboutCC 11-18-2025 Item No. 16 Mary Avenue potential sale and negotiator appointment_Supplemental ReportCC 11-18-2025 Item No. 16 Potential sale and appointment of negotiator for Mary Ave property Supplemental Report Supplemental Report for TO: Public Memorandum CC: Cupertino City Council FROM: Floy Elizabeth Andrews Anne Nelson Lanphar Michelle Hernandez DATE: November 17, 2025 RE: Mary Avenue Project Various questions have been raised with respect to the vacation of Mary Avenue and the City’s compliance with the Surplus Land Act with respect to the Mary Avenue Project (“Project”), as well as the demand that the agenda item appointing negotiators for the Project Land be removed from the consent calendar at the November 18, 2025 City Council meeting. For purposes of this Memo, the land for the Project is hereinafter referred to as the “Project Land”. 1.Vacation of Mary Avenue with respect to Project Land. a. Subdivision Map Act. The City owns the fee interest of the applicable portion of Mary Avenue. In May 2023 the City filed parcel map in Book 953 of Maps, at Pages 53 & 54, creating one (1) legal parcel identified as APN 326-27-053, which is the Project Land. It appears the City has not yet completed the vacation process for the ROW with respect to the Parcel. The assertion that the Parcel has not been legally created due to this fact is irrelevant as the City is exempt from the Subdivision Map Act and can convey the Project Land by a metes and bound description. Govt Code 66428(a). b. Vacation Process. Prior to transfer of the Project Land the City will need to comply with the vacation process. The Streets and Highways Code (§ 8300 et seq.) does not establish any specific timing requirements regarding when a non-summary vacation must occur within the broader project or transactional timeline. Accordingly, the City remains within the permissible timeframe to undertake the vacation process and will do so at the appropriate stage. The appointment of real estate negotiators for the Project is consistent with, and does not conflict with, the requirements of applicable law. 2.Surplus Land Act (Gov. Code §§54220–54234). a. Surplus Land. The Surplus Land Act applies to all governmental land that an entity determines to be no longer required and which it intends to dispose. Mary Avenue Project November 17, 2025 Page 2 General disposition of such surplus land requires compliance with specific requirements as set forth in the Regulations and further detailed in Article II, which includes certain findings by the City and the issuance of a Notice of Availability to be provided to all persons/entities who have filed a statement of interest with HCD, specifies negotiation restrictions, sets a methodology for prioritizing proposals received, and well as good faith negotiations process, among others (“General SLA Requirements”). b. Exemptions. Importantly, Regulation 103 of the Surplus Land Act provides a list of exemptions from compliance with the General SLA Requirements. With respect to the Project Land, the City is proceeding under exemption (c) stated in Regulation 103, which applies to city-owned surplus land to be transferred for the development of affordable housing. This exemption applies to the Project Land. Regulation 103(a) specifically states: “These Guidelines apply to the disposal of all surplus land and exempt surplus land, as defined in Government Code section 54221. However, exempt surplus land is not subject to Articles II and III of these Guidelines.” (emphasis added.) The City is in compliance with the SLA with respect to the Project Land. Once a disposition and development agreement is negotiated with the affordable housing developer and IF approved by the City Council, the resolution of exempt surplus land and the DDA will be provided to HCD.