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HomeMy WebLinkAboutItem 6c. Abandonment of a Portion of Church Street Right-of-Way at 1804 Osos Street Item 6c Department: Community Development Cost Center: 4003 For Agenda of: 12/2/2025 Placement: Public Hearing Estimated Time: 15 Minutes FROM: Timmi Tway, Community Development Director Prepared By: Gabriel Munoz-Morris, Supervising Civil Engineer SUBJECT: ABANDONMENT OF A PORTION OF CHURCH STREET RIGHT-OF-WAY AT 1804 OSOS STREET RECOMMENDATION 1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, abandoning a 6 -foot-wide portion of Church Street public right-of-way adjacent to 1804 Osos Street” and authorize recordation once conditions of abandonment have been met. 2. Conduct a public hearing pursuant to California Streets and Highways Code (CSHC) § 8320 et seq. 3. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, abandoning a 6 -foot-wide portion of Church Street public right-of-way adjacent to 1804 Osos Street” and authorize recordation once conditions of abandonment have been met. POLICY CONTEXT The abandonment of public right-of-way is required to be considered and approved by the City Council following a public hearing pursuant to California Streets and Highways Code (CSHC) § 8320 et seq.1 DISCUSSION Background On April 21, 2009, the City Council approved a vesting tentative map for Parcel Map SLO 07 0094 (TR 45-07) located at 1804 Osos Street and adopted Resolution No. 10074 (2009 Series) stating the City’s intent to abandon a portion of Church Street right -of-way to facilitate infill development of the site (Attachment C – Vicinity Map). The approved tentative map and the project’s Architectural Review Commission Approval ARC 45 -07 dated January 26, 2009, both show the abandoned right -of-way being incorporated into the proposed development to allow for an enlarged sidewalk to allow for sidewalk dining and expanded building footprints. 1 This abandonment is not eligible for summary vacation under the procedures of Streets & Highways Code §8330-8336, so a public hearing is required. Page 711 of 764 Item 6c The portion of Church Street to be abandoned currently includes a public sidewalk. The subdividers of Parcel Map SLO 07 0094 will eventually be relocating the sidewalk so it is entirely within the remaining public right-of-way. Until such time as the sidewalk is relocated, a temporary public pedestrian easement will be required. Prior to Council approval, on February 25, 2009, the Planning Commission approved Resolution No. 5518-09 (Attachment D) finding that the proposed abandonment of a portion of Church Street was consistent with the General Plan. The findings of the Planning Commission regarding the proposed abandonment remain valid and accurate, including that the proposed area for abandonment is not needed for present or future public purposes. After the April 21, 2009, City Council action to adopt Resolution No. 10074 (2009 Series) stating the City’s intent to abandon the portion of Church Street right -of-way, a public hearing was scheduled for June 2, 2009, to finalize the abandonment of the portion of right-of-way. That public hearing was postponed so that the City and applicant could finalize the abandonment of the portion of right -of-way concurrently with an associated real property transfer on Railroad Avenue, which was also associated with the development. A public hearing was then scheduled for January 20, 2015 , to finalize the abandonment of the portion of right-of-way and approve the real property exchange agreement. Ultimately, the property exchange agreement was approved at that meeting via City Council’s adoption of Resolution No. 10592 (2015 Series), but the public hearing for the abandonment of the portion of right-of-way was postponed. In anticipation of the public hearing on January 20, 2015, required notifications were sent to the affected utility companies regarding the proposed abandonment. All of the utility companies responded that they had no facilities within the area to be abandoned. In addition, required public notices and postings were completed pursuant to the requirements of the California Streets and Highways Code Sections 8320 to 8325 for General Vacation procedures. Page 712 of 764 Item 6c In order to finalize the Real Property Exchange Agreement (Attachment E), the City required that the developer also execute an Environmental Indemnity Agreement (Attachment F) that protects the City from any liability due to the condition of the property being transferred. In order to finalize the Real Property Exchange Agreement (Attachment E), the City required that the Developer also execute an Environmental Indemnity Agreement (Attachment F) that protects the City from any liability due to the condition of the property being transferred. The Developer’s original lender was not willing to sign the Environmental Indemnity Agreement so the document was never executed and the property transfer did not occur in 2015. The Developer now has a new lender that is willing to sign the Environmental Indemnity Agreement. Additionally, the Developer recently completed patio improvements in the area that will be transferred via the Real Property Exchange Agreement that serve a new business in the first story of one of the buildings. In order to support the patio for the business, and complete the execution of the Real Property Exchange Agreement, the Developer requested an administrative update to the Real Property Exchange Agreement and associated Environmental Indemnity Agreement for execution. While updating the Real Property Exchange Agreement and Environmental Indemnity Agreement, staff discovered that the abandonment of the 6 -foot-wide portion of Church Street was never finalized via adoption by the City Council of a Resolution of Abandonment, and recordation of that Resolution. This abandonment by the City is required to facilitate the Real Property Exchange Agreement. Staff confirmed that the prior actions by the Planning Commission and City Council in 2009 to begin this right-of-way abandonment (including adoption of the Resolution of intention to abandon) remain valid, and the abandonment may continue at this time per the requirements for right-of-way abandonments of the California Streets and Highways Code. Required notifications were sent to the affected utility companies regarding the proposed abandonment again in August 2025, and all affected utility companies confirmed that they did not have any facilities that would be affected by the proposed abandonment. Required notifications were sent to the affected utility companies regarding the proposed abandonment again in August2025, and all affected utility companies confirmed that they did not have any facilities that would be affected by the proposed abandonment. In addition, required public notices and postings were once again completed pursuant to the requirements of the California Streets and Highways Code Sections 8320-8325 for General Vacation procedures. Approving the Abandonment of a Portion of the Church Street Right-of-Way The draft resolution approving the final abandonment (Attachments A & B) defines the area of Church Street to be abandoned. The Streets and Highways Code requires that the resolution be recorded once all conditions of the abandonment have been met, thereby acknowledging that the vacation is complete. The draft resolution includes a condition that a temporary pedestrian easement for the sidewalk be recorded concurrently with the vacation. The draft resolution also authorizes the Mayor to accept this dedication. Page 713 of 764 Item 6c Abandonment Benefit to Owner and City In some circumstances where street right-of-way is proposed for abandonment, the additional property has value to the adjacent landowner. In this case, the abandonment is part of a beneficial transaction to both the property owner and the City with the subdividers of Parcel Map SLO 07-0094 to provide infill development and to complete parking reconfiguration, accessible path of travel upgrades, sidewalk improvements, landscaping and irrigation, signing and striping, and drainage improvements outlined in the Real Property Exchange Agreement, which was previously approved by City Council on January 20, 2015. The City is not required to demand payment in exchange for the abandonment and is not doing so in this case. Previous Council or Advisory Body Action On April 21, 2009, the City Council adopted Resolution No. 10074 (2009 Series) stating the City’s intent to abandon the portion of Church Street right-of-way. On January 20, 2015, the City Council adopted Resolution No. 10592 (2015 Series) approving the Real Property Exchange Agreement and Environmental Indemnity Agreement. Public Engagement California Streets and Highways Code Section 8322 requires a legal ad be published in the newspaper for at least two successive weeks prior to the public hearing. In addition, Section 8323 requires that three notices be placed at the site at least two weeks prior to the public hearing giving notice of the proposed abandonment. The notices must not be more than 300-feet apart. The legal ad and notices at the site were all completed ahead of this public hearing. In addition, Section 8324 requires that the City Council must allow for public comment by interested parties at the public hearing. CONCURRENCE The Public Works Department concurs with the recommended action. The City Attorney’s office has reviewed and approved as to the form the Real Property Exchange Agreement and the Environmental Indemnity Agreement. ENVIRONMENTAL REVIEW The proposed vacation of the 6-foot-wide portion of Church Street right-of-way is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Class 1 (Existing Facilities) exemption (§15301), as it involves a minor right - of-way abandonment with no significant impact on land use or the environment. The abandonment will not affect public access, or circulation. The abandonment is consistent with the General Plan. Page 714 of 764 Item 6c FISCAL IMPACT Budgeted: No Budget Year: N/A Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $N/A $ $ $ State Federal Fees Other: Total N/A $ $ $ There is no cost to the City associated with this proposed abandonment. Once the sidewalk is relocated, City street maintenance responsibilities for the abandoned portion will be eliminated, which will lower maintenance costs on Church Street. In addition, while the City does not pay property taxes for the land as a public agency, the additional square footage that would be added to each of the adjacent properties would be assessed by the County Assessor’s Office once the abandonment is complete and could result in higher property taxes for each property owner. ALTERNATIVES Deny the proposed abandonment. If City Council denies the approval of the proposed abandonment, the project as proposed by the subdividers of Parcel map 07 -0094 could not be built in its approved configuration. This would be in conflict with the discretionary approvals already granted to the subdividers by the City. The City would retain ongoing maintenance responsibilities for the area that does not serve a public purpose. Continue the item to a future meeting. The City Council could continue this item to a future meeting and request more information of staff prior to approving the abandonment. ATTACHMENTS A - Draft Resolution abandoning a 6-foot-wide portion of Church Street public right-of-way adjacent to 1804 Osos Street B - Exhibits A and B to the Draft Resolution C - Vicinity Map D - Planning Commission Resolution No. 5518-09 E - Real Property Exchange Agreement F - Environmental Indemnity Agreement Page 715 of 764 Page 716 of 764 R 11561 RESOLUTION NO. _______ (2025 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ABANDONING A 6-FOOT-WIDE PORTION OF CHURCH STREET PUBLIC RIGHT-OF-WAY ADJACENT TO 1804 OSOS STREET. WHEREAS, Church Street is a 60-foot-wide public Right-of-Way between Osos Street and its northerly terminus; and WHEREAS, at a regular meeting of the Planning Commission of the City of San Luis Obispo conducted on February 25, 2009, the Planning Commission adopted Resolution 5518-09 recommending abandonment of a 6-foot-wide portion of the Church Street right-of-way and finding that the proposed abandonment is consistent with the General Plan; and WHEREAS, at a regular meeting of the City Council of the City of San Luis Obispo conducted on April 21, 2009, the City Council adopted Resolution 10074 (2009 Series) indicating the City’s intent to abandon a 6-foot-wide portion of the Church Street right-of- way; and WHEREAS, the public hearing for the City Council to finalize the abandonment of the 6-foot-wide portion of the Church Street right-of-way was agendized for June 2, 2009; and WHEREAS, the June 2, 2009 public hearing for the City Council to finalize the abandonment of the 6-foot-wide portion of the Church Street right-of-way was postponed; and WHEREAS, a public hearing was scheduled for the City Council to finalize the abandonment of the 6-foot-wide portion of Church Street right-of-way was agendized for January 20, 2015; and WHEREAS, the January 20, 2015 public hearing for the City Council to finalize the abandonment of the 6-foot-wide portion of the Church Street right-of-way was postponed; and WHEREAS, the proposed abandonment of the 6-foot-wide portion of the Church Street right-of-way must be finalized in order to complete the conditions of approval for the approved development project at 1804 and 1814 Osos Street and finalize a real property exchange agreement between the City and the developer of 1000 Railroad Avenue; and WHEREAS, City staff have confirmed that prior action by the Planning Commission and City Council associated with the abandonment of this 6-foot-wide portion of the Church Street right-of-way remain valid, and the abandonment process may be Page 717 of 764 Resolution No. ______ (2025 Series) Page 2 R _______ continued at this time per the requirements of the California Streets and Highways Code; and WHEREAS, City staff have confirmed that no City utility facilities currently exist within the 6-foot-wide portion of the Church Street right-of-way; and WHEREAS, City staff notified all public utility companies of the proposed abandonment and no utility company has facilities that would be affected by the proposed abandonment; and WHEREAS, an existing public sidewalk will temporarily remain within the area of the proposed abandonment until such time as it is relocated by the developer of Parcel Map SLO 07-0094 at 1804 Osos Street; and WHEREAS, all public notices have been provided as required by applicable law, including California Streets & Highways Code §8320 et seq. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION 1. Findings. Based upon all evidence, the City Council makes the following findings: 1. The recitals stated above are found to be true and incorporated herein as findings of the City Council. 2. The proposed right-of-way abandonment is in conformity with the City's General Plan and any applicable Specific Plans or Zoning Regulations. The proposed abandonment does not conflict with long-term land use, circulation, or infrastructure plans, and the street is not identified as a key access route or planned improvement area. 3. The proposed right-of-way abandonment is not presently or prospectively required for public use or vehicular or pedestrian access. Based on a review of the City's traffic circulation plans, public infrastructure needs, and adjacent property access, it has been determined that the right -of-way serves no essential function in the City’s transportation network. 4. The proposed right-of-way abandonment will not negatively impact public interest or safety, including emergency vehicle access, utilities, or other critical public services. 5. Utility companies with easement rights in the area have been provided notice of the proposed abandonment and have confirmed that the abandonment will not impact any existing utility infrastructure. Page 718 of 764 Resolution No. ______ (2025 Series) Page 3 R _______ 6. The abandonment of the 6-foot-wide portion of the Church Street right-of-way is made pursuant to Sections 8320 et seq. of the California Streets and Highways Code. SECTION 2. Environmental Determination. The proposed vacation of the 6-foot- wide portion of the Church Street right-of-way is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Class 1 (Existing Facilities) exemption (§15301), as it involves a minor right -of-way abandonment with no significant impact on land use or the environment. The abandonment will not affect public access, or circulation. The abandonment is consistent with the General Plan. SECTION 3. Action. The City Council adopts a Resolution of Abandonment of a 6-foot-wide portion of the Church Street public right of way adjacent to 1804 Osos Street, as more accurately described in Exhibit A and depicted in Exhibit B, attached hereto, pursuant to Chapter 4, Part 3 of Division 9 of the California Streets and Highways Code subject to the following conditions: 1. A temporary public pedestrian easement for the existing public sidewalk within the area of Church Street to be abandoned shall be dedicated by the adjacent property owners. Said offer of dedication shall record concurrently with this resolution. The Mayor is authorized to accept this offer of dedication. 2. All required pictorial exhibits and/or legal descriptions necessary to complete the abandonment process shall be provided by the project applicant to the satisfaction of the Public Works Director. All exhibits and/or legal descriptions shall be prepared by a Licensed Land Surveyor or Civil Engineer who is authorized to practice Land Surveying, in accordance with the California Business and Professions Code Section 8700 et seq. 3. The abandonment results in additional property to be deeded back to adjacent contiguous properties but does not constitute creation of a new parcel or lot. SECTION 4. Recordation. The city clerk shall cause a certified copy of this Resolution to be recorded with the Office of the County Clerk-Recorder upon completion of the above-stated conditions to the satisfaction of the Public Works Director. Upon motion of ______, seconded by Council Member _____, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this __th day of MONTH 2025. Page 719 of 764 Resolution No. ______ (2025 Series) Page 4 R _______ ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 720 of 764 Page 721 of 764 Page 722 of 764 ATTACHMENT B - VICINITY MAP Area of proposed abandonment Parcel Map 07-0094 Site Page 723 of 764 Page 724 of 764 Attachment 3 Page 725 of 764 Attachment 3 Page 726 of 764 Attachment 3 Page 727 of 764 Attachment 3 Page 728 of 764 Attachment 3 Page 729 of 764 Attachment 3 Page 730 of 764 Attachment 3 Page 731 of 764 Attachment 3 Page 732 of 764 Attachment 3 Page 733 of 764 Attachment 3 Page 734 of 764 Page 735 of 764 Page 736 of 764 Page 737 of 764 Page 738 of 764 Page 739 of 764 Page 740 of 764 Page 741 of 764 Page 742 of 764 Page 743 of 764 Page 744 of 764 Page 745 of 764 Page 746 of 764 Page 747 of 764 Page 748 of 764 Page 749 of 764 Page 750 of 764 Page 751 of 764 Page 752 of 764 Page 753 of 764 Page 754 of 764 Page 755 of 764 Page 756 of 764 Page 757 of 764 Page 758 of 764 Page 759 of 764 Page 760 of 764 Page 761 of 764 Page 762 of 764 Page 763 of 764 Page 764 of 764 Abandonment of 6-foot-wide Portion of Church Street Right-of-Way December 2, 2026 Gabriel Munoz-Morris, Supervising Civil Engineer Recommendation Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, abandoning a 6-foot-wide portion of Church Street public right-of-way adjacent to 1804 Osos Street” and authorize recordation once conditions of abandonment have been met. Background – Project Area Osos Street Church Street Railroad Avenue Background – Project Area Background - Parcel Map 1.Vesting Tentative Map – Parcel Map SLO 07-0094 a)Approved April 21, 2009 2.Approval for surplus property disposal 3.Right-of-Way abandonment shown on parcel map Right-of-Way Abandonment – Prior Actions California Streets and Highways Code Process 1.January 2009 – Planning Commission a)General Plan consistency 2.April 2009 – City Council a)Resolution of Intent to Abandon Right-of-Way 3.June 2009 – City Council a)Resolution of Abandonment of Right-of-Way i.Postponed 4.January 2015 – City Council a)Resolution of Abandonment of Right-of-Way i.Postponed Background – Property Exchange Agreement 1.Approved January 2015 by City Council a)Environmental Indemnity Agreement 2.Lender signature 3.Spring 2025 - New Lender Property Exchange Agreement Vs. Right- of-Way Abandonment 1.Environmental Indemnity Agreement a)Requires prior abandonment of Right- of-Way on Church Street b)Process not completed 2.Staff confirmed prior actions remain valid 3.Re-notification of utility companies Next Steps 1.Complete Right-of-Way abandonment and record 2.Surplus property is transferred to applicant 3.Sign and record Environmental Indemnity Agreement and Real Property Exchange Agreement Use of Abandoned Right-of-Way 1.Project approvals contemplated abandoned Right-of-Way 2.Allows for expansion of building footprint and expanded sidewalk dining area 3.Prior approvals a)Excess Right-of-way b)De-emphasize use of dead-end street 4.Applicant submittal of next phase of development in 6 months Recommendation Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, abandoning a 6-foot-wide portion of Church Street public right-of-way adjacent to 1804 Osos Street” and authorize recordation once conditions of abandonment have been met. 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