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Task force advances revised surplus‑lands, TOD recommendations and directs staff to refine implementation

5709062 · September 2, 2025

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Summary

Task force modified and approved recommendations to clarify the Surplus Lands Act and to encourage state support and streamlined tools for transit‑oriented development and value capture; two draft implementation recommendations were advanced with recorded votes.

The SB125 Transit Task Force considered draft recommendations intended to help the state and regions increase housing and commercial development around transit and to capture land value to support transit investments.

Staff proposed actions including clarified application of the Surplus Lands Act (SLA) to prioritize affordable housing and commercial development on public land near major transit hubs; a potential dedicated entity or technical assistance to help jurisdictions implement value capture and financing tools; and streamlining recommendations for the SLA and related processes.

Task force members and public commenters described practical obstacles they encounter under the current SLA rules when multiple public agencies own adjacent parcels or when the statute’s procedures delay coordinated transit‑oriented development. Several speakers said the SLA’s notice and offer processes can produce administrative burden and outcomes that slow projects where incremental financing could be used.

Actions: The task force approved a modified recommendation to “Clarify the Surplus Lands Act to prioritize affordable housing and commercial development on land owned by public agencies near major transit hubs” (motion carried; amendment accepted to reflect opt‑in approaches and practical safeguards). The motion to move modified U1 and modified U5 into the draft report passed on a roll call (motion by Carrie Watkins; second recorded; 15 yeses). The task force also approved U4 and U6 (motion seconded; roll call recorded) directing staff to prepare implementation guidance and an appendix of existing laws and programs that affect TOD and value capture.

Members asked staff to return with specific statutory language options, proposed safeguards to preserve local design and land‑use priorities where appropriate, and examples of value capture structures and financing models that have worked in California and peer jurisdictions.

Ending: Staff will expand the report appendix that summarizes existing statutes and programs affecting surplus lands and TOD and will circulate draft statutory language options and model implementation agreements for task force review before the final meeting.