To: HONORABLE MAYOR AND From: Jose Obregon

CITY COUNCIL

Subject: SEE BELOW Date: October 6, 2003

COUNCIL DISTRICT: 6

SNI AREA: N/A

SUBJECT: SALE OF CITY-OWNED PROPERTY LOCATED SOUTHEASTERLY OF ROUTE 87 AND ALMADEN EXPRESSWAY

RECOMMENDATION

1) Direct the City Clerk to accept a Quitclaim Deed from the County of Santa Clara to the City of San Jose for a 17,468 square foot parcel of land located Southeasterly of Route 87 and Almaden Expressway, adjacent to APN 455-20-060; and

2) Adopt a resolution declaring said 17,468 square foot portion of now City-owned land, located Southeasterly of Route 87 and Almaden Expressway, surplus to the needs of the City, and authorize its sale to Evans Lane Apartments, L.P. (the adjoining property owner) for Two Hundred Twenty Thousand Dollars ($220,000).

BACKGROUND

Municipal Code Section 4.20.20 permits the City Council to declare City-owned property surplus to the needs of the City and to authorize its direct sale to the adjoining property owner when it finds: 1) that a property is neither needed for, nor adaptable to, municipal purposes; and 2) the public interest would be served thereby. In this instance, the property belonged jointly to the County of Santa Clara and the City of San Jose as a “uneconomic remainder” left over from land acquired when Route 87 was constructed. It dead-ends at the gore corner formed by the two highways.

The County of Santa Clara wanted the City to take responsibility for this remainder’s maintenance and liability, which led to their sending a Quitclaim Deed for the property to the City. The Housing Department requested that the City deed the property to the adjoining owner to enable the developer to utilize this property for off-site parking.

ANALYSIS

This parcel is roughly rectangular in shape and is located adjacent to APN 455-20-060, which is being developed as a housing development sponsored by the Housing Department. The parcel is not developable as the entire property is encumbered with public utility easements and may only be used for off-site parking. City staff has determined through an Estimate of Value based on the Residential Land Value Study, 2002 Update, that the fair market value of the subject parcel is Two Hundred Twenty Thousand Dollars ($220,000).

Maps illustrating the subject property’s general and specific location are attached as Exhibits A and B.

PUBLIC OUTREACH

Not applicable.

COORDINATION

This memorandum has been coordinated with the City Attorney’s Office, the Housing Department and the City Manager’s Budget Office.

COST IMPLICATION

This sale of City-owned property is in alignment with the Mayor’s Budget Strategy Expenditure Control Strategy Section by eliminating a City Maintenance obligation and liability. Also, the sale of this City-owned property will increase revenue to the City on a one-time basis. The City’s cost for the sale of the property will consist of staff time to complete the transaction. The Buyer has deposited the entire Two Hundred Twenty Thousand Dollars ($220,000) with the City as compensation for the above referenced property.

BUDGET REFERENCE

Fund #	Appn. #	Appn. Name	RC #	Total Appn.	Amt. for Contract	2003-04 Proposed Operating Budget Page	Last Budget Action (Date, Ord. No.)
001	8130	Sale of Real Property	000000	$220,000	N/A	N/A	N/A

CEQA

Negative Declaration, PDC98-10-078

JOSE OBREGON

Director of General Services

Attachments