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State Surplus Land Act could force extra steps for long leases; council hears options for Carnegie and Old City Hall
Summary
A legal briefing explained that California's Surplus Land Act now applies to leases of 15 years or more, requiring notices to HCD, a 60‑ to 90‑day negotiation window and possible affordability covenants; council members discussed implications for existing nonprofit leases at the Carnegie and old City Hall.
A presenter identified in the meeting as Gary briefed the council on the Surplus Land Act and recent 2024 changes that extend the law’s requirements to leases of 15 years or longer, including initial declarations, notice to the Department of Housing and Community Development, a notice‑of‑availability period and at least 90 days of good‑faith negotiations if housing sponsors respond.
Gary explained exemptions (small parcels under 0.5 acre not contiguous to public land, land legally restricted against housing, airport property) and noted penalties for noncompliance (30% of disposition for a first violation, 50% thereafter) and the requirement for affordability covenants if the city disposes of land for housing. Council members raised concerns about how the law affects long‑term nonprofit leases (the Carnegie Library, old City Hall) and concluded the process can allow long leases but is time‑consuming (staff estimated at least six months) and administratively involved. Several council members asked staff to explore options, including whether non‑exclusive use agreements or master leases could meet community needs without triggering the full surplus‑land process.
