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Council pauses transfer of fire station parcel amid questions over SDI loan link
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Summary
Council voted 4–0 to table a resolution that would declare the fire station parcel surplus and authorize its transfer to Kern County after councilors and residents raised concerns the parcel is tied to an unresolved SDI loan and urged further review by the SDI committee.
The City Council voted unanimously April 14 to table a staff recommendation to declare the downtown fire station parcel surplus ahead of a proposed transfer to Kern County.
Staff described the resolution as a required step under the California Surplus Lands Act to permit transfer or sale of the parcel. Several council members and residents, however, said the land appears to be part of a 317‑acre purchase originally financed with SDI loan proceeds and that the city has not resolved whether the loan obligation remains attached to the parcel.
“Back then the city used $2.5 million of water and sewer fees to pay bills,” a resident and fiscal presenter said, warning the council about past fund breaches and the need for a 12‑month rolling cash forecast. Council member Smith pressed staff for a clear accounting: he said the parcel “is tied to the SDI loan” and asked when loan repayment would begin if the property is transferred. Resident Robbie Cortez told the council he had filed public records requests and found no appraisal for the parcel and urged the council to complete its due diligence before moving forward.
Citing those concerns, a council member moved to table the item and direct staff to consult the SDI committee before returning with more information. The motion was seconded and passed by roll call vote, 4–0.
Council members said they want the successor agency, the SDI committee and staff to reconcile accounting and title questions so any transfer will not be perceived as bypassing repayment obligations. The council declined to approve the surplus declaration at this meeting and asked staff to return with the SDI committee’s input.
What’s next: Staff will confer with the SDI committee and report back to council; the tabling preserves the council’s ability to consider the parcel later after additional review.
