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Council declares Lost Park parcel surplus to start affordable-housing process under Surplus Lands Act
Summary
Council voted unanimously (7-0) to declare roughly 1.61 acres of Municipal Parking Lot No. 5 surplus so the city can follow the California Surplus Lands Act notice-of-availability process and invite proposals that may include at least 25% affordable housing units.
The Chico City Council unanimously approved a resolution declaring a 1.61-acre portion of Municipal Parking Lot No. 5 surplus so the city can comply with the California Surplus Lands Act and pursue redevelopment opportunities, including potential affordable housing in partnership with Chico State Enterprises.
Deputy City Manager Jennifer McCarthy presented the Lost Park project plan and explained the Surplus Lands Act process: after a surplus declaration the city must notify the California Department of Housing and Community Development (HCD) and allow a 60-day response period; if HCD or affordable-housing developers express interest, the city must enter into good-faith negotiations (up to 90 days) on price and terms and ensure at least 25 percent of residential units developed would be affordable. McCarthy described earlier project work including a 2022 RFQ, a memorandum of understanding with Chico State Enterprises, a market analysis, a Phase I environmental review and a title-guarantee condition.
Council members expressed support for the site's mixed-use potential and connectivity to Chico State and Bidwell Park, and raised standard environmental and remediation questions about adjacent properties. McCarthy noted the adjacent private property with a deed restriction was already under state monitoring (DTSC). The council voted 7-0 to declare the property surplus and proceed with the notice-of-availability step described by staff.
