Surplus City Property

Surplus Property

When the Banning City Council wishes to sell or otherwise dispose of almost all* City-owned property, they are now bound by the requirements of the Surplus Lands Act (more information on this statute is provided below).  Briefly, this means that each property must be declared by the City Council as "surplus land," defined by the Act as any land "not needed for the agency's use" GC§ 54221(b)

Following the declaration of surplus, the City distributes a Notice of Availability (NOA) to eligible entities (defined in greater detail below), including the California Department of Housing and Community Development (HCD), any local public entity within the jurisdiction where the surplus local land is located, and developers who have notified HCD of their interest in developing affordable housing on surplus local land.

Any eligible entity desiring to purchase or lease the surplus land for any of the purposes described above must notify the City in writing of its intent to purchase or lease the land within 60 days after receipt of the City’s NOA. 

If the City receives notice of interest from any eligible entities, the SLA mandates a 90-day negotiation period with any designated entities that submit timely offers. If no notice of interest is received or negotiations do not result in a disposition, the City may proceed with the sale or lease of the property.

The SLA does not require the City to dispose of surplus land at less than fair market value. However, the SLA requires a Deed Restriction be placed on the property at the time of transfer that requires, at a minimum, any subsequent development of 10 or more residential units on the site must designate at least 15 percent of units as affordable.

*Please see a comprehensive guide on properties that are exempt under the HCD Surplus Lands Act Exemptions Guide, also included under Resources.


Surplus Lands Act (AB 1486)

The Surplus Land Act (Government Code Section 54220 et seq.) amended the State of California's Surplus Land Act (SLA) by prohibiting local agencies from commencing negotiations over the sale or lease of surplus property prior to sending notices about available, surplus local public land to designated entities ("eligible entities"), including:

  • California Department of Housing and Development (HCD);
  • Any local public entity within the jurisdiction where the surplus local land is located; and,
  • Developers who have notified HCD of their interest in developing affordable housing on surplus local land.

 

State Surplus Land Act Notification Requirements

Effective January 1, 2020, the SLA requires a local agency to declare property as “surplus land” before taking any actions to dispose of such property. The process for a local agency to declare a property as surplus is outlined below:

StepMilestoneActionTimeline
1Legislative Body approves Notice of Availability; Adopts resolution declaring City-owned property as "not needed for the agency's use" GC§ 54221(b).City Council Action (through adoption of a resolution declaring the property to be surplus)Can be initiated at any time
2Issuance of Notice of Availablity (NOA) for Surplus PropertyDocumented issuance of NOA both electronically and in hardcopy to HCD list of Interested PartiesMust be issued and open for no less than 60 days.
3-AIf Responses ReceivedAll responses to NOAs must be documented as well as any ongoing discussions and/or negotiations with an eligible entity. A responsive proposal must be received before the end of the NOA period to require the extended negotiating period under the SLA.Responsive proposals submitted initiate a 90-day good faith negotiating period between the agency and interested party(ies).
3-BNo Responses ReceivedProvide proof of SLA process to HCD; Obtain HCD approval that the City has successfully completed the required process to then dispose of the surplus land
4Surplus Land DisposalOnce completion of the SLA process has been approved by HCD, the City may dispose of the surplus land.


Resources


Current City-Owned Surplus Properties

Availability Period

STATUS
Situs AddressAssessor's Parcel Number (APN)Property DescriptionAuthorizing City Council Resolution
(Declaring Surplus)
Notice of Availability (NOA)HCD SLA Compliance  Approval
CLOSED200 S. Hathaway Street532-140-003, 532-150-004Banning Municipal Airport ParcelsCC Resolution 2022-74
6/14/2022
Distribution 7/15/2022
Closed
9/13/2022
Original 10/28/2022
Revised 2/2/2023
CLOSED2200 Block of W. Westward Avenue532-180-036, 532-180-037Westward Parcels (1 & 2)CC Resolution 2022-75
6/14/2022
Distribution 7/15/2022
Closed
9/13/2022
Original 10/28/2022
Revised 2/2/2023
CLOSED33 S. San Gorgonio Avenue540-204-009Lithopass/Brew Rebellion LocationCC Resolution 2022-90
6/28/2022
Distribution  7/15/2022
Closed
9/13/2022
Original 10/28/2022
Revised 2/2/2023
CLOSED1581 E. Charles Street543-090-008Formerly Portion of Ivy Substation PropertyCC Resolution 2022-121
9/13/2022
Distribution 9/28/2022
Closed
11/28/2022
Issued 2/3/2023
CLOSED1973 W. Westward Avenue532-130-013Formerly Portion of Airport Substation PropertyCC Resolution 2022-102
8/23/2022
Distribution 9/28/2022
Closed
11/28/2022
Issued 2/3/2023
CLOSED2200 Block of W. Westward Avenue532-180-034, 532-180-035Westward Parcels (3 & 4)CC Resolution 2022-107
8/23/2022
Distribution 9/28/2022
Closed
11/28/2022
CLOSED
200 S. Hathaway Street

532-130-011, 532-130-012, 532-130-018, 532-150-002, 532-150-003, 
541-240-009, 541-250-009, 532-180-034

Banning Municipal AirportCC Resolution 2021-41
5/25/2021

REVISED 
CC Resolution 2021-99
10/12/2021 
Distribution
6/1/2021
Closed
8/2/2021
Issued
9/8/2021

Addendum
10/14/2021
*

CLOSED
150 E. Ramsey Street
220 E. Ramsey Street
280 E. Ramsey Street
245 E. Livingston Street
541-181-032
541-181-033
541-181-034
541-181-035
Former San Gorgonio Inn SiteCC Resolution 2020-42
4/14/2020
Distribution
1/25/2021
Closed
3/29/2021
Issued 9/8/2021

CLOSED
No Situs
Northeast Corner of Highland Springs Avenue at Sun Lakes Boulevard
419-140-041NEC Highland Springs/Sun LakesCC Resolution 2020-41
4/14/2020
Distribution
11/3/2020
Closed
1/4/2021
Issued 9/8/2021
CLOSED
447 E. Ramsey Street541-150-025 541-150-026 541-150-027 541-150-028 541-150-004

CC Resolution 2021-18
3/23/2021
Distribution

Closed
 


 

*See 2022 process incorporating these 2 parcels into the 200 S. Hathaway Street surplus act compliance approval.