The proposed Resolution concerns twelve (12) vacant portions of APN 017-350-057 within the Stanford Ranch Phase II Subdivision that range in size between 90 and 3,091 square feet and are adjacent to APNs 369-040-013, -014, -015, -016, -017, -018, -019, -020, -021, -022, and APNs 369-050-001 and -003 that are owned in fee by the City of Rocklin but do not collectively exceed 10,838 square feet, as more particularly described in Exhibit A and depicted in Exhibit B that are included within the attached Resolution. The City Land is designated for open space and is subject to: i) a permit issued by the U.S. Army Corps of Engineers (the Corps) (i.e., Corps Permit No. 9988, issued on May 23, 1989); and ii) a General Open Space Management Plan (the GOSMP) prepared cooperatively by the City and the Corps (originally approved by the Corps on May 1, 2015 and the City on June 10, 2015).
Among other matters, during the preparation of the GOSMP the Corps was aware that owners of adjacent property had expanded into open space properties throughout the City and requested that the City rectify the encroachments. During 2015, City staff began communicating with the affected parcel owners regarding the encroachments, including those with encroachments into portions of APN 017-250-057 (Open Space Parcel), which resulted in the majority of the encroachments being rectified by the property owners; the exceptions being the owners of APNs 369-040-013, -014, -015, -016, -017, -018, -019, -020, -021 and -022, and APNs 369-050-001 and -003 (collectively the “Remainder Parcels”). On July 31, 2018, City staff conferred with the Corps to identify remedies related to the Remainder Parcels encroachments that resulted in the Corps supporting a compromise approach that included the owners of the Remainder Parcels entering into an Encroachment Removal Agreement (ERA) allowing the encroachments to remain in place until such time as the Remainder Parcels are sold, which at such time would require the abandonment of the encroachment area and the restoration of the abandoned area to its pre-encroachment condition (consistent with the GOSMP).
Subsequently, the owners of the Remainder Parcels declined to enter into an ERA because they acquired their properties with the encroachments in place and believed that their property should be exempted on that basis. In recent times, owners of Remainder Parcels have recommended an approach to resolve the current dispute by acquiring their encroachment area for a fair market price, which if accepted by City will require concurrence by the Corps. City staff believe that the Owners Recommended Solution (subject to the conditions described herein) is a reasonable method for resolving the current dispute and to avoid unnecessary litigation.
Pursuant to State law (the California Surplus Land Act (SLA), Government Code sections 54220-54333, as amended by AB 1486 (Chapter 664, Statutes of 2019) and SLA Guidelines created by the California Department of Housing and Community Development dated as of April 2021), in order for the City to disposed of real property, it must first comply with the SLA and the SLA Guidelines. The SLA and the SLA Guidelines provide that prior to disposition, such land shall be declared either surplus land or exempt surplus land before the public entity may take action to dispose of it consistent with the public entity’s policies or procedures.
With respect to exempt surplus land, the public entity must first take a formal action at a public meeting of the public entity designating the affected land as exempt surplus land based on findings supporting such designation that are consistent with the definition of exempt surplus land as specified in Government Code Section 54221 (f).
The City Land as a whole (i.e., all 12 portions) qualifies for designation as exempt surplus land pursuant to Government Code Section 54221(f)(1)(G) based on the Open Space Parcel (APN 017-350-057) being subject to Corps Permit No. 9988 and the Corps-approved GOSMP, which requires the Open Space Parcel to be reserved in perpetuity as open space, thus prohibiting development of any kind, in particular housing. The City Land as a whole (i.e., all 12 portions) also qualifies for designation as exempt surplus land pursuant to Government Code Section 54221(f)(1)(B) (i), (ii) and (iii) because each portion of the City Land is: i) less 5,000 square feet in area; ii) is not contiguous to land owned by a state or local agency (not including the City); and iii) proposed to be sold to an adjacent property owner (subject to the concurrence of the Corp).
Pursuant to the Act, land is necessary for a public entity’s use if the land is being used, or is planned to be used pursuant to a written plan adopted by the public entity, for the public entity’s work or operations. With respect to the City Land, it is not necessary for the City’s use because the City Land is not being used or planned to be used pursuant to a written plan adopted by the City for City work or operations. Further, the proposed Resolution concerns an administrative process only and will not cause the transfer of ownership of any real property. If adopted, this Resolution will confirm the City’s declaration that the City Land is exempt surplus land and not necessary for the City’s use.
Pursuant to Section 400 (e) of the SLA Guidelines, a copy of the adopted Resolution declaring the City Land exempt surplus land is required to be provided to the Housing and Community Development Department no later than 30 days prior to the disposition of the City Land to the City. The ultimate sale of the City Land to the owners of the Remainder Parcels will require separate transactions and is subject to: i) HCD’s acceptance of this Resolution; ii) the Corps approving the sale and any necessary amendments to the GOSMP as may be required by the Corps; iii) the sale price is not less than fair market value; iv) the recordation of a deed restriction ensuring that the City Land may only be used for landscaping and appurtenances related thereto; v) that no further encroachments are allowed beyond the current encroachments; and vi) that the owners of the Remainder Parcels will not encroach into the remaining Open Space Parcel.