In May 2019, the final Downtown Parking Management Strategic Plan (Plan) was presented to the City Council which summarized a variety of recommendations and strategies to mitigate future parking needs in the downtown Civic Center area.  This parking effort was in response to early Reimagine Initiatives in which community feedback expressed the desire to have public art, bike lanes, community events, music festivals, holiday lighting, market food halls, and at the top of the list was the concern to accommodate enough parking for future development.  Incorporated into the Plan was an on-line survey that provided a source of anecdotal information from the community and visitors in the downtown study area to determine parking preferences.  Key takeaways from this survey revealed:

1.       The majority users of the parking were downtown diners/shoppers; and,

2.       The most important factor was “the distance to the destination from their parking space”.

With increased visitors to the City’s Historic Main Street and downtown area growing, the need for public parking is vital to ensure that the local small businesses continue to thrive.  Over the past two years, the success of the Reimagine Initiatives have brought about new retailers and eateries including: ePatisserie, Phin Smith Coffee, Ambrosia Acai, AUM Beer, and the SteelCraft Garden Grove project that is home to nine tenants and the proposed business expansion of Louie’s outdoor dining area and patio.  With the ongoing trends of adaptive reuse and new development, ensuring available resources such as public parking for the downtown Civic Center Street is essential.  To that end, promoting shared parking uses including the properties identified at 10936, 12892, 12942 Acacia Parkway are encouraged.

For consideration is a proposed Exchange, Disposition and Cooperation Agreement that provides for the exchange of properties between the City and HA.  Currently operating on the City-owned property located at 11391 Acacia Parkway is North County Senior Services, LLC, previously, the Acacia Adult Day Services.  In November 1992, the former Redevelopment Agency entered into a ground lease with Acacia Adult Day Services who proceeded to build a facility and has been providing adult day care services for senior citizens.   The proposed Exchange takes into consideration the future needs and services of Garden Grove’s senior population at the current center with the amended lease agreement approved by the City Council with North County Senior Services, LLC on November 26, 2019.  The Exchange also presents an opportunity for the City to consider a future site for quality affordable housing.

The City owns the property located at 11391 Acacia Parkway comprised of approximately 1.6 acres (City Property).  Acquired in 1956, the City Property was part of the former Fitz Intermediate School and subsequently utilized for many years as the original City Hall. The original City Hall was demolished in late 1995.  Shortly thereafter, in 1996, the City and Acacia Adult Day Services entered into a thirty (30) year ground lease agreement and as of today, the services continue to operate the adult day-care facility.

The HA owns the properties located at 10936, 12892, 12942 Acacia Parkway, collectively comprised of five (5) parcels and totals approximately 1.7 acres (together, HA Properties).  The HA Properties are currently utilized as a public parking lot improved with 158 surface parking spaces. 

 To effectuate the exchange of City and HA properties, a Summary Report has been prepared pursuant to Health and Safety Code Section 33431 that authorizes the Housing Authority to sell or lease its real property acquired with tax increment, subject to certain noticing, public hearing, and reporting requirements.  Substantiated by an MAI appraiser, Fair Market Appraisals were conducted for both the City and the HA properties and determined the values in the amounts of $4,855,000 and $5,330,000, respectively.  The exchange of the City and HA properties would result in an amount of $475,000 to be paid by the City to be deposited into the Low and Moderate Income Housing Trust Fund.  The City would pay all related closing costs estimated at twenty thousand dollars ($20,000).

Staff recommends that the City Council find that the effects of the proposed exchange of property is Categorically Exempt from the requirements to prepare additional environmental documentation per California Environmental Quality Act (CEQA) Guidelines, in particular Section 15004(b)(2)(A), which provides that agencies may designate a preferred project site and may enter into land acquisition agreements conditioned on CEQA compliance.  Furthermore, CEQA applies only when a public agency has "approved" a project.  For these purposes, "approval" means the decision by a public agency to a definite course of action (Guidelines Section 15352).  Here, approval of the Exchange Agreement does not commit either agency to any specific construction plan or project.  The Exchange Agreement does not define a particular project well enough to provide meaningful information for envirornmental assessment. In the future, if any of the sites become defined with a proposed project, subsequent CEQA analysis would be performed as required.

The proposed Exchange of properties would help towards ensuring that the Historic Main Street and Civic Center area continue to thrive and prosper by preserving the shared-use parking at parking at 10932, 12892, 12942 Acacia Parkway.  This action presents the City with the opportunity to continue to provide parking, convenient parking for patrons, visitors, and reduce the need to park in the adjacent residential areas.  Therefore, it is recommended that the City Council approve the Exchange, Disposition, and Cooperation Agreement.

The proposed Exchange will result in a need of an additional appropriation of $495,000 from the General Fund, which includes $475,000 to be paid by the City to HA, and $20,000 for estimated closing costs.  Upon approval of the proposed Exchange and close of escrow, $475,000 will be deposited into the Low and Moderate Income Housing Trust Fund. 

It is recommended that the City Council:

• Adopt the Resolution approving the Exchange, Disposition, and Cooperation Agreement between the City of Garden Grove and the Garden Grove Housing Authority;

• Authorize the City Manager and City Clerk to execute the Agreement, Grant Deed, pertinent documents needed to effectuate the Exchange and make minor modifications as needed, on behalf of the City; and,

• Approve an additional appropriation of $495,000 from the General Fund, and authorize the Finance Officer to transfer $475,000 from the General Fund to the Low and Moderate Income Housing Trust Fund, and disburse related closing cost.

It is recommended that the Housing Authority:

• Adopt the Resolution approving the Exchange, Disposition, and Cooperation Agreement between the City of Garden Grove and the Garden Grove Housing Authority;

• Authorize the City Manager and City Clerk to execute the Agreement, Grant Deed, pertinent documents needed to effectuate the Exchange and make minor modifications as needed, on behalf of the City; and,

By:  Paul Guerrero, Sr. Program Specialist/Real Property Agent