Title
Adopt Three Resolutions to: 1) Vacate Approximately 996 Linear Feet of Eden Road Between Doolittle Drive and the Western Terminus; 2) Declare Eden Road Exempt Surplus Land; and 3) Authorize the City Manager to Execute the Purchase and Sale Agreement and Joint Escrow Instructions
Staffreport
COUNCIL PRIORITY
1. Infrastructure
SUMMARY AND RECOMMENDATIONS
On March 18, 2024, the City Council authorized the execution of the Eden Road Public Improvement Agreement Memorandum of Understanding (MOU) for the sale and transfer of Eden Road to the adjacent landowner, KK Eden Properties LLC.
Before the ownership of Eden Road can be transferred, several steps must be completed. On December 5, 2024, the vacation process was initiated by Planning Commission adopting a resolution finding that the proposed Street Vacation is in conformity with the General Plan. To continue facilitating the sale and transfer of Eden Road, staff recommends that the City Council take the following next steps and adopt the resolutions to effectuate the actions:
1. Declare that the 49,806 square feet of City-owned Eden Road is “exempt surplus land” pursuant to California Government Code § 54221(f)(1)(E)
2. Adopt a Resolution of Intention to vacate Eden Road and publish notices in accordance with the provisions of Title 5, Chapter 5-4, Street and Easement Abandonment of the San Leandro Municipal Code
3. Set a public hearing date on July 7, 2025 at 7pm in the City Council Chambers for hearing all persons interested in the proposed vacation
4. Authorize the City Manager to execute the Purchase and Sale Agreement and Joint Escrow Instructions, deed, easements, and all related documents necessary to complete the sale and transfer of Eden Road, in a form approved by the City Attorney
5. Authorize the City Manager to accept and deposit the proceeds of the sale of the property as revenue and deposit the sale proceeds as revenue in the General Fund
6. Declare that the sale of the property is categorically exempt under CEQA §15312 (Surplus Government Property Sales).
BACKGROUND
In 2004 by Resolution No. 2004-016RDA and Resolution No. 2004-121, the City of San Leandro Redevelopment Agency acquired title to Eden Road from Alameda County with the intent of incorporating Eden Road into the City’s road network. The acquisition of Eden Road, once improved, would provide a direct benefit to the businesses and residents in the area.
In 2007, the City Council by Ordinance No. 2007-002, established right-of-way lines for Eden Road from Doolittle Drive to Davis Street. The establishment of the right-of-way lines for Eden Road would provide an alignment for a new outlet on Davis Street at Business Center Drive.
In 2012, the City of San Leandro Redevelopment Agency (RDA) was dissolved along with other statewide redevelopment agencies. The dissolution of the San Leandro RDA eliminated funding that would offset costs associated with the paving of Eden Road. In an effort to facilitate the construction of Eden Road, as codified in the City of San Leandro 2035 General Plan and to deem the road in compliance with relevant statutory and regulatory public road and street standards, the City started negotiations with the adjacent property owner, KK Eden Properties LLC, and their tenant, Alco Iron & Metal, to construct the improvements.
In 2024 by Resolution No. 2024-022, the City, KK Eden Properties LLC, and Alco Iron & Metal entered into a Memorandum of Understanding titled “Eden Road Public Improvement Agreement (MOU).” The project, as defined in the MOU, is for the design, permitting, and construction of Eden Road improvements between Doolittle Drive and the western terminus. In exchange for Alco Iron & Metal constructing the roadway improvements, the City will vacate and sell Eden Road to KK Eden Properties LLC at a negotiated price of $1.00. In turn, KK Eden Properties LLC will sell and convey to the City a public utility easement, ingress-egress easement, and emergency vehicle access easement in perpetuity across the entire length of Eden Road to be vacated. While the MOU is a consensus of the negotiations between the City, KK Eden Properties LLC, and Alco Iron & Metal to facilitate the project improvements, the Purchase and Sale Agreement and Joint Escrow Instructions outlines in detail the terms and conditions of the sale and transfer of Eden Road.
Analysis
The Surplus Land Act, Government Code §§54220-54233, requires the City to take formal action to declare the land either as surplus land or exempt surplus land. The portion of Eden Road to be vacated is owned in fee by the City and not necessary for the City’s use. Therefore, the street vacation of Eden Road can be declared exempt surplus land per Government Code §54221(f)(1)(E) and can be conveyed to the adjacent property owner.
The City of San Leandro Municipal Code Title 5, Chapter 5-4, Street and Easement Abandonment, outlines the procedures for vacation of streets and easements. To proceed under the provisions of this Chapter of the Municipal Code, a Resolution of Intention must be adopted to order any vacation, and a public hearing must be set to hear evidence offered by any person interested.
Previous Actions
• On March 18, 2024, by Resolution No. 2024-022, City Council authorized the Eden Road Public Improvement Agreement MOU
• On December 5, 2024, by Resolution No. 2024-011, the vacation process was initiated by the City of San Leandro Planning Commission adopting a resolution finding that the proposed Street Vacation is in conformity with the General Plan
Environmental Review
The sale of exempt surplus land is categorically exempt under the California Environmental Quality Act (CEQA) §15312 (Surplus Government Property Sales).
Financial Impacts
The disposition of the 49,806 square feet of City-owned Eden Road would generate a property sale revenue of $1.00 to the General Fund.
Other Financial Impacts related to the MOU, previously approved by City Council on March 18, 2024, include two payments from the City to KK Eden Properties LLC: 1) $1 million in previously appropriated funds from the Eden Road capital project account in exchange for an easement to ensure public and emergency access rights across the entire length of Eden Road being vacated, and 2) $2 million derived from the Water Pollution Control Plant (WPCP) Enterprise fund in exchange for WPCP access and utilization rights for 2512 Davis Street.
This Council action will not impact fund balance because there are existing previously appropriated funds available in the FY2024-2025 adopted budget for the project. Furthermore, completion of the project will result in the complete reconstruction of Eden Road without any costs to the City’s General Fund and will relieve the City of the long-term financial obligations associated with ownership of a road with a limited user base. As a result, finite Capital Improvement Program funds may be directed towards other important community-serving capital projects.
ATTACHMENTS
Attachment A: Resolution (Exempt Surplus Land)
o Exhibit A1: Legal Description and Plat of Exempt Surplus Land
Attachment B: Resolution (Intention to Vacate Eden Road)
o Exhibit B1: Legal Description and Plat of Right-of-Way to be Vacated
Attachment C: Resolution (Approve Purchase Sale Agreement)
o Exhibit C1: Purchase Sale Agreement
PREPARED BY:
• Dane Rodgers, Senior Engineer, Public Works Department
• Javier Perez, Assistant Engineer, Public Works Department
• Eric Engelbart, Deputy City Manager