Subcommittee told HCD granted surplus-land exemption for waterfront parcel; public engagement constrained until NOA/negotiations conclude

City economic-development staff updated the subcommittee that the Housing and Community Development (HCD) department granted an exemption for a downtown waterfront parcel from the Surplus Land Act because an existing deed restriction designates recreational use and excludes housing. Staff said they will bring a resolution on April 28 to declare the parcel exempt surplus land and release concurrent Notices of Availability (NOA) for eligible agencies (parks, state resources, county).

Staff explained the statutory steps they must follow: after NOA release there is a 60-day window for responses and then a 90-day good-faith negotiation period before the city may enter an exclusive negotiation agreement and hold a public meeting. "After once that is released ... it has the 60 days for people to respond. And then after that, it's a 90 days of good faith negotiations," staff said.

Several council members raised procedural and transparency concerns, saying the state-regulated sequence limits early public engagement. One member said the timetable "puts us on the firing line" because public discussion cannot precede the NOA/negotiation process; staff responded they will make the January 7 HCD letter public and will follow all notice steps to maximize transparency within statutory limits.

Staff also noted coastal-commission requirements affecting parking and height limits for the parcel and said the site's deed restriction and coastal rules constrain feasible proposals. Staff committed to returning with the HCD letter, the NOA language, and a public timeline so the council and community can track the process.