HomeMy WebLinkAbout031125-03.1
STUDY STUDY SESSION MEMORANDUM 3.1
TO: Mayor and Town Council March 11, 2025
SUBJECT: Discussion of Next Steps for Disposition of 510 La Gonda Way
BACKGROUND
After the relocation of the Town offices to 500 La Gonda Way in 2022, the Town Council
considered the future use of 510 La Gonda Way at a July 2023 study session. At that
meeting, the Council expressed an intent to see the property develop as affordable
housing in an effort to meet the Town’s affordable housing obligations under RHNA.
That effort could include contributing both the land and the balance of the Town’s
remaining Low and Moderate Income Housing Fund (which has a current balance of
approximately $1.96 million). With other relevant issues (such as certification of the
Town’s Housing Element) addressed, it would be appropriate to review next steps
necessary to dispose of the property.
Characteristics of the Property
As currently configured, the property is approximately 2.27 acres in size and still contains
the now empty office building as well as the solar array, which is still in use. The Town
does utilize the site for additional parking to serve 500 La Gonda. Prior to conveying the
property, the Town will process a lot line adjustment to move approximately 26,000
square feet to the 500 La Gonda property in order to complete the necessary parking by
adding 70 parking spaces. This will leave the 510 parcel at approximately 1.66 acres. The
Town will also relocate the solar array to 500 La Gonda.
Current General Plan and zoning for 510 La Gonda
As part of the Town’s adoption of the Housing Element, the General Plan designation
for the property was changed to Residential-Multi-Family Special, with a density range
of 30-35 units per acre and the zoning to M35 (30-35 units per acre). The zoning for the
property allows for an FAR of 120%, 4 stories in height and requires an average maximum
unit size 1500 square feet. The density range would be between 50 and 58 units.
DISCUSSION
Town staff has identified the following steps needed to move the project forward:
510 La Gonda 2 March 11, 2025
• Surplus Lands Act. The state’s Surplus Lands Act establishes a process to dispose
of local agency properties that are deemed surplus. That process requires input
from HCD and contains a number of specific process requirements. Working with
our outside housing counsel, Town staff has identified an exemption to the
Surplus Lands Act. Pursuant to Government Code Section 37364, if the land is to
be used for housing in which at least 40% of the units will be restricted to low and
very-low income households, it is entitled to an exemption. This would allow the
Town more control over the process. In order to utilize this option, the Town
Council would need to adopt a resolution making specified findings to submit to
HCD for their review and approval.
Recommended action: Authorize staff to work with outside counsel to
prepare the necessary resolution for consideration by the Town Council.
• Process to Select a Development Partner. In order to ultimately select a developer for
the site, the Town will need to prepare an RFP/RFQ laying out parameters for
what the Town would like to see from the project. In order to prepare the RFP, it
would be beneficial to retain a consultant familiar with the economics of such a
project.
Recommended action: Authorize staff to retain a consultant to assist in
preparation of an RFP to be sent to potential developers.
• Prepare for relocation of solar array. The Town will need to relocate the existing solar
array at 510 La Gonda onto the 500 La Gonda parking lot. It is possible that the
array could be larger and/or that additional solar panels could be placed on the
roof of the Town offices. In order to study these options and to negotiate with the
owner of the existing array (Tesla, the successor in interest to Solar City), the Town
will use the consultant who assisted with the original lease terms and has provided
preliminary analysis of relocation options.
Recommended action: Town staff will be presenting a consulting contract to
the Council’s Finance Committee on March 18.
RECOMMENDATION
Town staff would like to confirm the previous direction from the Town Council on goals
for the future development of 510 La Gonda and receive direction on the three
recommendations described in this report.
Prepared by:
Robert B. Ewing
City Attorney