Assistant City Manager Justin Tucker told the City Council on Jan. 7 that staff seeks direction to amend a professional services agreement with SVA Architects and to pursue an exemption under California’s Surplus Land Act for the North Mall redevelopment. "So, that is the ask tonight, for council to provide direction to pursue the surplus land act exemption and approve that first amendment services with SVA architects, or initiate the surplus land act process," Tucker said.

Tucker reviewed options under the Surplus Land Act (SLA), including: standard SLA processing (high risk of losing local control), an exemption for mixed-use projects with at least 300 units (which staff said would allow entitlement while preserving retail and design goals), and a 100%‑affordable exemption. He said staff’s recommended approach was to begin entitlement work with SVA and simultaneously pursue the 300‑unit SLA exemption so the city could control the look and sale terms while engaging builders to test market viability.

Residents and business owners filled the public‑comment period. Jeremy Devine urged the council to treat the choice to pursue the exemption as a major policy and financial commitment and to ensure statutory prerequisites and outreach had been completed; Rory Connell and other speakers questioned use of public funds and urged public‑benefit uses rather than housing. Tucker and other staff responded that prior agreements with a private developer (Lab Holdings and affiliates) had been unwound and that the city currently owns the North Mall parcels.

Council members debated risk versus control. Supporters said an entitlement approach would let the city set design standards and help secure a development that supports retail and entertainment goals. Skeptical speakers and some council members warned about the state SLA’s strict monitoring and financial penalties for noncompliance.

Vice Mayor Speak moved to approve the recommendation to pursue the SLA exemption and to amend the SVA contract; Councilmember Richins seconded. The motion passed 5–0.

The council’s action authorizes staff to continue design and entitlement work with SVA Architects while pursuing a determination from the California Department of Housing and Community Development (HCD) on the applicability of the 300‑unit exemption. Staff told council that entitlement work will include traffic and parking analyses and that the city will pursue outreach to businesses and community groups as part of refining project scope. The council did not adopt a final development agreement or determine a developer; those steps remain for future action and negotiation with potential partners.