City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: October 20, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Resolution No. 2025-73 Declaring Certain City-Owned Properties as Surplus Land and Authorizing the City Manager to Proceed with the Surplus Lands Act Process for Site Disposition
RECOMMENDATION
It is recommended that the City Council Adopt Resolution No. 2025-73, A Resolution of the City Council of the City of Gonzales Declaring Certain City-Owned Properties as Surplus Land and Authorizing the City Manager to Proceed with the Surplus Lands Act Process for Site Disposition.
BACKGROUND
The City owns a handful of properties including City Hall, Police Station, Fire Station, Council Chambers and parcels associated with the City water and sewer systems. Earlier this year, the Council directed staff to conduct market rate appraisals for City-owned facilities for potential sale and right-sizing leases. Staff engaged Piini Realty to prepare Market Value Appraisals.
At the October 6, 2025 Council meeting, staff presented the Market Value Appraisals and requested Council direction whether to offer certain City properties for sale. Staff recommended that the Council consider offering the following properties for sale:
1. Canyon Creek Park Phase 2 parcel
2. Venice Way Park (Cipriani Subdivision)
3. 498 South Alta Street
The City Council concurred with staff’s recommendation and directed staff to include the city-owned property that abuts the Gonzales Slough behind the homes along South Belden, just east of B Street.
AGENDA
ITEM
12 However, the City is still in the process of determining the surplus status of this property and as such it has not been included in this evening’s proposed action.
Sales of City properties are subject to the Surplus Lands Act (“SLA”), found at California Government Code Section 54220 et seq. The SLA requires that a City must declare property to be “surplus land” before the City can take any action (sale or lease) to dispose of the property. Surplus land is land deemed not necessary for a local agency’s use in accordance with agency plans and that is not otherwise exempt under the SLA. The SLA was adopted to address the current housing crisis by promoting the construction of affordable housing on surplus land. The SLA connects affordable housing developers to local surplus land through a notification process and requires reporting and oversite of a City’s surplus land inventory to the California Department of Housing and Community Development (“HCD”).
REVIEW & ANALYSIS
As noted above, selling City-owned property entails complying with the SLA. The SLA requires that prior to offering unused property to developers on the open market, the property must first be formally declared as “surplus.” Thereafter, the City must proceed through a process that includes providing affordable housing developers (and certain other interested parties) with notice of availability of the property and engaging in good-faith negotiations with interested prospective purchasers. Oversite of this entire somewhat complex process rests with HCD, subject to a set of guidelines promulgated in 2024.
Based on the direction received at the October 6, 2025 Council meeting, staff recommends the City Council adopt the attached Resolution declaring the following City properties as surplus land and authorizing the City Manager to proceed with the SLA process for site disposition:
1. Canyon Creek Park Phase 2 parcel
2. Venice Way Park (Cipriani Subdivision)
3. 498 South Alta Street
If appropriate, Staff will return with a separate resolution for the vacant property abutting the Gonzales Slough behind the homes along South Blenden, just east of B Street How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.
Explain: Managing the portfolio of City-owned properties maximizes the benefit to the community. However, selling one of some of these properties may be of benefit to the City.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: See Vision explanation above
City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____ No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing X Yes No N/A
• Recreation Yes X No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision above.
ALTERNATIVES
Direct staff to adjust the list of properties to be offered for sale.
BUDGET IMPACT
Although the City will see no direct financial impact associated with the recommended action, sales of the involved properties should result in proceeds equal to at least the fair market value of said properties.
CEQA
Pursuant to Section 15060(c )(3) of the California Environmental Quality Act (“CEQA”) Guidelines, approval of this Resolution is exempt from CEQA because the actions described herein will not result in direct or reasonably foreseeable indirect physical change in the environment and the actions described herein are not a “project” as defined within Section 15378 of the CEQA Guidelines.
CONCLUSION
It is recommended that the City Council Adopt Resolution No. 2025-73, A Resolution of the City Council of the City of Gonzales Declaring Certain City-Owned Properties as Surplus Land and Authorizing the City Manager to Proceed with the Surplus Lands Act Process for Site Disposition.
Attachments:
1. Location Maps of the Properties
2. Resolution No. 2025-73