Recommend the City Council adopt a resolution to declare 6382 Phillip Road as surplus property and find that it is in the best interest of the City to dispose of the property located at 6382 Phillip Road.

The City-owned parcel at 6382 Phillip Road is underutilized and there are no current identified future needs for this property. Accordingly, the property is not necessary for the City's use.  See Attachment 1 for a map of the property. Sale of underutilized properties can generate quality developments that result in new businesses, jobs and amenities and help fulfill the City’s goal of economic sustainability.

The property at 6382 Phillip Road is referred to as the Reason Farms Industrial Site and is an approximately 237.26-acre (with 182 developable acres) greenfield vacant parcel, located north of a planned six-lane arterial (extension of Blue Oaks Boulevard, west of Westbrook Boulevard).  The site is bisected by the planned six-lane regional Placer Parkway.

Site Data and Attributes:

1. APN:  017-101-008-000
2. Zoning:  Public/Quasi-Public.  The P/QP designation is used to establish areas for municipal, governmental or public facilities.
3. Neighboring land uses: To the northwest is the Al Johnson Wildlife Area, part of a 1,700 acre site planned to accommodate the City’s stormwater Regional Retention facility and potential recreation uses.  To the west along the southern portion of the site are agricultural uses; to the east, immediately adjacent is the Creekview Specific Plan area, planned to accommodate about 2,000 residential units; to the south along the southern edge of the Reason Farms Industrial Site is the future extension of Blue Oaks Boulevard, and to the south the West Roseville Specific Plan approved in 2004, which is 65 percent built out, and includes 10,479 residential units, parks, open space and commercial uses.   A portion of the subject site would accommodate the future Placer Parkway transportation project, which will connect Highway 65 in Placer County to Highway 99 in Sutter County, providing an alternate highway to Interstate 80. 
4. Size in acres:  The entire parcel is 237.26 acres, which includes 182 developable acres.  The remaining 55.26 acres comprise the Pleasant Grove Creek Floodplain, a retention basin bypass channel, and the Placer Parkway alignment.
5. Shape of site:  The parcel is rectangular.
6. Potential for development:  The site is currently vacant.  An analysis of the site was done in 2006 by the City of Roseville for a potential job center which assumed multiple buildings totaling 1,080,000 square feet for a total of 18 buildings.  However, the site could potentially accommodate more development if higher density buildings are considered.  

Future development will require approval of Planning Department entitlements including a Rezone and General Plan amendment for industrial use, a major project permit, and environmental review.  These entitlements will require review and approval by the Planning Commission and City Council. The City of Roseville Economic Development Department will provide assistance through the required entitlement processes.

According to Roseville Municipal Code §4.12.110(B), the City may dispose of real property without sealed bids..."pursuant to a finding by the city council that such disposition is in the city’s best interest. Provided, however, that notice of the terms and conditions of such proposed sale or disposition pursuant to this subsection and the date of confirmation thereof shall be published in a newspaper of general circulation in the city at least 10 days prior to final approval and confirmation of the proposed sale or disposition. Such sales and dispositions shall be confirmed and approved upon a four-fifths’ affirmative vote of the city council."

If the City Council declares the parcel surplus, the next step will be to notify other public agencies (schools, parks, and affordable housing providers), as required by California Government Code Section 54222 (Surplus Land Act). Those agencies will have the first option to negotiate the purchase of the property. If none of the notified agencies express interest within 60 days, the property may be sold or otherwise disposed of in the best interest of the City.

The City of Roseville Economic Development Department will provide assistance through the permitting processes and all future sales will be brought back to the City Council for review and approval.

There are no costs or fiscal impacts associated with this request.  The action to deem property surplus does not directly have a fiscal impact on the City's budget. However, the potential development or redevelopment of the subject sites could result in job growth and opportunities for additional revenue including increased sales tax and property tax revenue.

The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and  §15378.  Declaring this property as surplus meets the above criteria and is not subject to CEQA. Therefore, no additional environmental review is required at this time. The sale of surplus property is categorically exempt from CEQA as a Class 12 Exemption (State CEQA Guidelines Section 15312).

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Dominick Casey, City Manager