07-19-2013 BPU RPT 14 - Laserfiche WebLink

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W A T E R I E N E R G Y I L I F E RIVERSIDE PUBLIC UTILITIES 191& Board Memorandum P U B L I C U T I L I i 1 L S BOARD OF PUBLIC UTILITIES DATE: July 19, 2013 ITEM NO: 14 SUBJECT: SURPLUS PROPERTY DECLARTION OF 10 -ACRES OF UTILITY OWNED PROPERTY, LOCATED ON THE NORTHEASTERLY CORNER OF COLUMBIA AVENUE AND MAIN STREET, RIVERSIDE ISSUE: The item for Board of Public Utilities consideration is approval to declare as surplus a 10 -acre portion of Utility -owned property known as the former Riverside Golf Course, identified as a portion of Assessor Parcel Number 206 - 070 -002 and 003 (the "Property "), located at the northeasterly corner of Columbia Avenue and Main Street, in the Riverside (Exhibit A). RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Declare the Property as surplus to the current and anticipated needs of the Utility; 2. Authorize the City Manager, or his designee, to market the property for fair market value in compliance with the City's disposition of surplus property requirements set forth in Government Code section 54220 et. seq.; and 3. Authorize the City Manager, or his designee, to market the property for fair market value for a retail development should there be no public agency interest in the Property BACKGROUND: The City, through Riverside Public Utilities (RPU), acquired the Property in April 1935 as part of a large acquisition (Exhibit B), to acquire water rights and wells to serve the City. In 1959, the land was leased for the development and operation of a public golf course. In September 2009, the then current operator defaulted on the lease and filed for bankruptcy. Operation of the Property as a public golf course ceased; however, RPU assumed maintenance and all related costs for the continued upkeep of the Property. RPU wishes to declare 10 acres of Property, which is a portion of a larger assemblage of two parcels of vacant land totaling 63.98 acres, as surplus to the current and future needs of the Utility. The surplus declaration of this Property is contingent upon the City's compliance with the disposition of surplus property requirements set forth in Government Code section 54220 et. seq. This law requires the City, prior to disposing of surplus property, to notify other governmental agencies and offer, for a sixty -day period, to sell the property. Further, the City will retain all water rights on the property, including the right to install wells and related facilities. Exhibit A depicts the boundary of the proposed surplus parcel. However, the final configuration of the 10 -acres to be sold may be modified based on marketability and development potential to maximize the sales price.