For City Council Meeting and Successor Agency to the Redevelopment Agency of the City of Rialto Meeting [November 15, 2022]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager/Executive Director
FROM: Kathy Brann, Economic Development Manager
Title
Request Successor Agency to the Redevelopment Agency of the City of Rialto to Adopt Resolution No. 7999 Approving Amendment #5 to the Long Range Property Management Plan for the Disposition of Real Estate Assets Owned by the Successor Agency.
Body
BACKGROUND
On March 10, 2015, the California Department of Finance (DOF) approved Rialto’s Long Range Property Management Plan (LRPMP) to manage the disposition of the Successor Agency to the Redevelopment Agency of the City of Rialto’s 69 properties pursuant to AB 26 (the “Redevelopment Dissolution Act”).
The Redevelopment Dissolution Act defined four potential disposition categories for properties held by successor agencies, as follows:
• Retention by the City for Governmental Use.
• Retention by the City for Future Development.
• Retention by the City to satisfy Enforceable Obligation.
• Liquidated for the benefit of taxing entities.
Project #165 in Rialto’s LRPMP designates one parcel located at 119 N. Riverside Avenue (the “Property”) to be liquidated for the benefit of taxing entities. The parcel is 20,240 square feet in size and is improved with a building of 4,390 square feet. Since 2000, the building has been occupied by Cuca’s Mexican Restaurant and is now subject to a month-to-month lease agreement, terminable upon thirty (30) days’ notice.
Pursuant to the approved LRPMP, on November 9, 2021, the City Council adopted Successor Agency Resolution 03-21 declaring the Property surplus land allowing the City to pursue disposition and sale of the Property in accordance with the Surplus Land Act (“SLA”).
ANALYSIS/DISCUSSION
Staff subsequently completed the notification process set forth in the SLA, and is now in position to dispose of the Property on the open market.
However, certain circumstances have changed warranting reconsideration of the City’s sale of the Property at this time.
In 2021, operations at Orange County Lumber located at 436 W. Rialto Avenue closed and the property has been sold for redevelopment. Orange County Lumber was the sole user of the Pacific Electric Trail right-of-way, and as an active rail the City has up until then been unable to pursue extension of the Pacific Electric Trail multi-purpose path easterly from its current terminus at Cactus Avenue.
On April 12, 2022, the City Council adopted the Rialto Pacific Electric Trail Expansion Feasibility Study evaluating the feasibility of extending the existing 20-mile pedestrian and Class I bicycle path located on the right-of-way previously used by the Pacific Electric Railway from its current terminus at Cactus Avenue to the eastern boundary of the City at Pepper Avenue.
On May 10, 2022, the City Council authorized Staff to submit an application to the California Transportation Commission for an Active Transportation Program (“ATP”) grant in the amount of $7.5 million to complete the extension of the Pacific Electric Trail from Cactus Avenue to Pepper Avenue. The City has recently been advised by San Bernardino County Transportation Agency (“SBCTA”) that the City’s grant will be recommended for award, allowing for the City to complete the extension of the Pacific Electric Trail.
The Property is adjacent to a portion of the former Pacific Electric railway right-of-way being considered for the extension of the Pacific Electric Trail. The Property served as the Rialto Station of the Riverside-Rialto interurban train service operated by the Pacific Electric Railway from 1914 to 1940. The station building was designed by Thornton Fitzhugh, the architect who also designed the railroad's main terminal known as the Pacific Electric Building located at 610 S. Main Street in downtown Los Angeles (shown in Figure 1, below).
Figure 1
Accordingly, in lieu of selling the Property for use as a privately owned commercial restaurant, it is possible in the alternative to modify the LRPMP designation from “liquidate for the benefit of taxing entities” to “retention by the City for governmental use” as an historical site, museum, and/or other uses that acknowledge the Property’s historical significance in the City and are compatible with the City’s Rialto Pacific Electric Trail Expansion project.
The intent would be to pursue state and federal grant funds to restore the Property to its original historical significance, and to remodel the interior to convert it to a museum use and as a recreational facility compatible with and to be used by the public enjoying the future extension of the Pacific Electric Trail.
The adoption of the attached resolution and re-designation of the property will be subject to Countywide Oversight Board and State Department of Finance approval.
ENVIRONMENTAL IMPACT
The request is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b)(5), a Project does not include: Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. The amendment of the Long-Range Property Management Plan is an administrative activity of the government with no proposed development.
GENERAL PLAN CONSISTENCY
This action is consistent with two General Plan goals:
Goal 3-2: Improve historic commercial areas, including Downtown and major commercial corridors; and
Goal 3-4: Revitalize aging and underperforming commercial and industrial areas.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report
FINANCIAL IMPACT
Operating Budget Impact
The proposed action will not currently affect the City’s Operating Budget. However, future operational costs will be incurred by the City in the operation and maintenance of the Property as a museum and other public space.
Capital Improvement Budget Impact
The proposed action does not currently impact any capital project budget; however, as noted the City will pursue grant funds for rehabilitation of the Property to restore it to its historical significance, and to remodel the interior to support the new intended use.
RECOMMENDATION
Staff recommends that the City Council, acting as the Successor Agency to the Redevelopment Agency of the City of Rialto, adopt the Resolution approving Amendment #5 to the Long-Range Property Management Plan.