Council approves transfer of two small Bonita Pacifica parcels with development-agreement condition

The Guadalupe City Council voted Jan. 14 to transfer two small, city-owned parcels in the Bonita Pacifica area to adjacent property owners subject to conditions intended to limit off-street parking impacts.

City attorney and staff presented background: the city acquired the tiny parcels in 1975 and the parcels have remained largely unused. Staff said the narrow strips are difficult to maintain and are of limited municipal value. In 2022 the council considered a transfer but requested appraisals and that purchasers pay market value; follow-up contact showed at least one adjacent owner declined to pay a purchase price and instead asked for staff to revisit options.

At the Jan. 14 meeting staff proposed several alternatives. The council—s chosen motion combined two elements: (1) require the adjacent property owners to reimburse the city for the cost of the property survey and preparation of legal descriptions and (2) enter into a simple development agreement obligating owners to provide on-site parking for any accessory dwelling units (ADUs) built on the parcels. The development-agreement requirement is intended to reduce added on-street parking pressure on Pioneer Street.

Council action and vote: The motion to transfer the parcels under those conditions passed on a 4-1 vote. Staff said the city would negotiate the development agreement and the reimbursement amount and would return to the owners with next steps. The council asked staff to limit the amount city seeks to the direct costs of survey and deed preparation (and discussion included whether legal and city-engineering fees should be included); staff described those amounts as expected to be modest and agreed to confirm a final figure.

Why it matters: Council members cited the nuisance and maintenance cost of the narrow parcels and said facilitating infill ADUs could increase housing supply. At the same time, council members were concerned about preserving parking and avoiding legacy fragments of city-owned parcels that impede private development. Under the approved deal, owners get title to the small parcel, but the development agreement creates a contractual obligation to mitigate parking impacts from new units.

Next steps: Staff will negotiate formal deeds and a development agreement, confirm the city—s reimbursement amount and return to the council with final documents for execution. Two adjacent property owners who spoke at the meeting said they prefer not to pay a large purchase price and asked for a practical, low-cost transfer to allow them to complete ADU development.