COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

December 29, 2003

BOARD MEETING DATE:

January 13, 2004

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Resolution declaring certain County-owned real property in the City of South San Francisco as surplus to the needs of the County in order to facilitate use of that property for an affordable housing project.

(COP 879)

Recommendation

Adopt a resolution declaring certain County-owned real property in the City of South San Francisco (SSF) surplus to County needs, and authorizing the County Manager to negotiate a long-term, nominal rate lease of the site to SSF, or its designated developer, in support of the shared goal of the County and the city to increase the supply of affordable rental housing for San Mateo County families.

Background

At its February 25, 2003 meeting, Supervisor Mark Church asked the Board of Supervisors to consider a resolution declaring certain County-owned property in SSF as surplus to the needs of the County. The property is comprised of approximately 1.15 acres located adjacent to the North County Courts complex. The site is within the El Camino Real Redevelopment Area of SSF, and is designated in the city's 1999 General Plan for high-density residential use.

The matter has been delayed until this time to allow SSF an opportunity to issue a Request For Proposal and to study a variety of options for the site proposed by the respondents. In September of this year, the City Council reviewed responses from three non-profit developers, and requested that the Housing Committee, Councilmembers Matsumoto and Fernekes, move forward with developing a housing project at the site, and report back to the Council. The Housing Committee, subject to the approval of the city's Redevelopment Agency, has selected BRIDGE Housing as the project developer. City staff have indicated the Redevelopment Agency will be asked, on January 28, 2004, to confirm the selection of BRIDGE and to authorize a pre-development loan to BRIDGE of approximately $400,000.

Honorable Board of Supervisors

December 29, 2003

Page Two

Discussion

Government Code Sections 54220 - 54232 provide for lease or sale of surplus government real property to make land available for housing for persons and families of low and moderate income. The County may sell or lease the property to SSF, or the non-profit developer selected by the city, for fair market or for less than fair market value, and without offering the property for sale at public auction.

In order to facilitate use of the site for affordable housing, the Board of Supervisors must declare the property surplus to the needs of the County. Since the site includes one small Assessor's Parcel (APN 011-311-070) and a portion of a larger parcel (APN 011-311-110), a lot line adjustment to establish a single legal parcel will be necessary.

The resolution authorizes the County Manager, or designee, to negotiate a long-term lease for less than fair market value. The lease would effectively donate the land to the project in order to subsidize the affordability of the proposed rental housing, but the County would continue to hold title to the land.

The specific terms and conditions of the lease of the site to the city, or to the non-profit developer selected by the city, will be submitted for Board consideration at a future date. The timing of the matter will depend on the design and approval schedule of the developer.

Vision Alignment

This project would meet the County's commitment to offer a full range of housing choices, and address Goal 9, to assure that housing exists for people at all income levels and for all generations of families. Further, it is responsive to the County's commitment to responsive, effective and collaborative government by addressing Goal 22, that County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

Fiscal Impact

Declaring the property surplus will have no fiscal impact. Future termination of the current agricultural lease agreement would result in a loss of revenue of $1,262 per year.