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Yucaipa council initiates surplus-land notices under state law for parcels tied to CIP projects
Summary
Council approved initiating the Surplus Land Act notification process under Assembly Bill 1486 for several parcels acquired for capital-improvement projects. Staff said the 60‑day HCD notice will allow qualified entities to express interest; proceeds from any eventual sale would return to the originating CIP fund.
The Yucaipa City Council voted to initiate the surplus-land notification process under the state Surplus Land Act (Assembly Bill 1486) for a set of city‑owned parcels that were acquired to support three capital improvement projects: the Avenue E intersection improvements, County Line Road project and the Pendleton low-water crossing.
City staff and Ryan Miller, housing and economic development analyst, briefed the council on the state-required process. AB 1486 (effective Jan. 1, 2020) requires public agencies to notify the California Department of Housing and Community Development (HCD) when public land is declared surplus and to provide a 60‑day notice to a statutorily defined list of qualified entities (including housing developers and certain nonprofits) so those entities can submit letters of interest for affordable housing development. Properties that meet statutory exemptions (for example, transfers to other public agencies) are processed differently.
Staff said the parcels in tonight’s item were originally purchased with capital-improvement project funds; portions needed for right-of-way have been retained for the projects and remaining portions are being offered to enter the surplus-notice process. If HCD‑notified parties submit letters of interest, staff will bring those notices to council (in closed session when appropriate) to discuss potential responses. If no viable offers are received through the 60‑day notice-and-negotiation period, the city may later return to open session to consider disposal and sale; proceeds would return to the CIP fund that originally acquired the property.
Council members asked about public transparency and listing the properties online. Staff said they can post surplus lists on the economic development website and use MLS/broker channels for sale of single-family residences or commercial parcels. Staff also warned that selling city property below fair‑market value can carry project and prevailing‑wage consequences for future development, and noted the city uses on‑call consultants (Bender Rosenthal/BRI cited) for appraisals and broker services.
The council approved starting the surplus-notice process and directed staff to proceed with HCD notification and to return with any letters of interest.
