Ojai council approves 120‑day extension for due diligence on Ojai Bungalows conveyance amid neighborhood concern

The Ojai City Council on Jan. 27 voted to approve a staff‑negotiated extension of time to complete due diligence for a surplus‑land conveyance tied to the Ojai Bungalows settlement.

City Attorney (name on the record as S16) told council the extension provides the city an additional 120 days from approval — and that the developer had agreed to a second 120‑day extension if needed — to finish the real‑property due diligence, complete a survey and prepare the package for preliminary review by the California Department of Housing and Community Development (HCD).

Why it matters: The conveyance, described in the December 2023 settlement with Ojai Bungalows LP, would allow the developer to use a section of city‑owned paper street (Mallory Way) to meet unit counts in a multi‑building affordable housing project. Residents and neighborhood attorneys argued the strip functions as an important wildlife/watershed corridor and a long‑used walking path; they urged council to preserve the pathway, explore alternative building configurations and ensure parking and safety protections.

What staff said: The city attorney and staff said title and exhaustive title searches revealed gaps that delayed earlier steps, that the deed had only recently been located, and that additional survey and robust title work remained necessary before any conveyance could be submitted to HCD or returned to council for consideration.

Public reaction: Dozens of residents and speakers urged preservation of the Mallory Way path and questioned a perceived ‘gift’ of city land to a developer. Attorney Jeffrey Harlan, representing nearby residents, asked the city to adhere to the planning commission’s recommendations and use the extension period for collaborative work with the neighborhood on specific project alternatives. Speakers suggested design changes — including adding permitted second‑story units elsewhere on the site to avoid taking the pathway — and raised concerns about increased traffic, parking and loss of open space and groundwater recharge.

Council action and next steps: Council members emphasized that the vote concerned only procedural time, not approval of any conveyance. Several members asked staff to use the extension period to pursue community engagement and negotiation with the developer about preserving at least a portion of the path. The resolution passed on roll call; staff will continue due diligence, survey the property, complete title work and, after any HCD preliminary review, return the matter to council with options.

Details and clarifications - The extension approved by the council provides 120 days from the date of council approval and includes an option for an additional 120 days if needed because of HCD timelines. - The work to be completed in the extension window includes a property survey, additional title work to identify encumbrances, and submission of documents to HCD for preliminary review. - The item stems from a December 2023 litigation settlement with Ojai Bungalows LP that contemplates the surplus‑land process and potential conveyance of the Mallory Way paper street.

What remains unresolved: Residents and council members asked staff to pursue options for retaining a continuous public path and buffer; whether the developer will accept substantial reconfiguration (for example, moving units into the bungalow parcel or adding permitted second‑story units elsewhere) remains an open negotiation. The council did not authorize any conveyance tonight; it only approved the timeline extension.