Willows Council Authorizes Sale of Three City-Owned Residential Parcels to Shore Up Cash Flow

The Willows City Council authorized the city manager to pursue sale of three city-owned residential parcels, aiming to generate near-term revenue for the general fund while staff resolves outstanding title and occupancy questions.

City staff told the council the properties under consideration are two residential houses immediately south of the city mall and a narrow vacant lot. Staff said the properties could be relatively quick to market and would return the parcels to the property tax rolls, helping the city’s short-term cash flow while the new sales tax revenues build.

The staff presentation noted the city’s June 2024 financial forecast assumed a conservative $1,900,000 increase in annual sales tax revenue (with an estimated range of $1.8 million to $2.3 million in consultant projections). The forecast shows the city running lean through the remainder of the fiscal year and rebuilding reserves in the next year, which staff said motivated the recommendation to sell the residential parcels rather than pursue longer-term commercial development strategies.

Council members and staff discussed several constraints and protections before any sale. Staff said one vacant lot may have a long-standing informal understanding with adjacent residents and that title or heirship questions could require resolution before disposition. Council members emphasized they do not want to sell properties below market value without returning to the council for approval and noted redevelopment rules that require additional approvals for below-market conveyances.

Council members urged staff to offer the current long-term tenants the first opportunity to purchase at market terms where appropriate and to document the property histories; staff responded that the staff report already includes guidance on offering tenants first right to purchase and that further title work would be needed before final sale steps (appraisals and title reports had not been done before authorization).

Several council members also stressed the value of holding some city-owned land for strategic uses (noting a city-owned parcel adjacent to City Hall intended for possible future public facility expansion) and said the three parcels under consideration were lower-priority holdings compared with larger commercial or industrial sites.

The council voted unanimously to authorize the city manager to proceed with the disposition process per the staff report, with staff instructed to investigate title or claim issues and to return to the council if a proposed conveyance would be below appraised value or otherwise require additional approvals.

The council did not adopt a final sales contract during the meeting; staff said appraisals and title work would be performed next and any below-market sales would be presented to the council for formal approval.

At the end of the sale discussion, council members reiterated that proceeds would be used to shore up near-term general fund needs pending receipt of Measure I sales tax revenues.