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Council reviews options for 3‑acre affordable housing parcel; developer drops out, city considers Surplus Land Act process
Summary
Staff updated the council on affordable housing work, including a 3‑acre parcel west of City Hall with $1 million in city contributions. The previously selected developer withdrew; staff discussed the Surplus Land Act and using a public RFP to attract affordable housing developers for a project estimated at $30–$40 million.
City staff briefed the Twentynine Palms City Council on Nov. 11 about ongoing affordable housing efforts and a 3‑acre parcel west of City Hall that the city has made available for development. Staff said the city can contribute roughly $1 million of Project Phoenix bond money plus land, but that a previously selected developer (Milestone) withdrew after failing to secure financing. Staff estimated a total project cost in the $30–$40 million range for a typical affordable housing development of the proposed scale.
Council and city attorney discussed the legal steps required under California’s Surplus Land Act before engaging in specific negotiations, including publishing a Notice of Intent and a 60‑day window for responses from registered affordable housing developers. If qualified developers respond, the city would be obliged to proceed with the Surplus Land Act’s competitive and selection procedures. Councilmembers expressed continued interest in pursuing an affordable housing project at the site and asked staff to prepare for an RFP and to track funding options.
Next steps: Staff will work with the city attorney to comply with Surplus Land Act requirements, prepare the required notices and consider issuing an RFP in the first quarter of next year, while seeking funding opportunities and competitive proposals.
