DATE: April 6, 2026
TO: Council Economic Development Committee
FROM: City Manager
SUBJECT: Overview of Real Estate Objectives and Strategy
RECOMMENDATION
That the Council Economic Development Committee reviews and provides feedback to staff on the proposed Real Estate Objectives and Strategy (Attachment II).
SUMMARY
This report provides an overview of the City’s Real Estate Objectives and Strategy for evaluating selected City-owned properties, including the City Center, C Street and Main Street, and Cinema Place sites. The strategy is intended to ensure responsible stewardship of public assets while aligning property decisions with the City’s broader economic development, fiscal sustainability, and community objectives. The City’s Real Estate Objectives and Strategy, including the proposed evaluation framework and potential disposition process, is provided in Attachment II.
BACKGROUND/DISCUSSION
The Real Estate Objectives and Strategy emphasize data-driven decision-making, transparency, risk management, and maximizing long-term public value, while ensuring that any future transactions comply with all statutory requirements and Council direction.
Staff has identified the City Center, C Street and Main Street, and Cinema Place properties for priority evaluation due to their location, redevelopment potential, and strategic importance to the downtown area. Staff proposes obtaining independent real estate appraisals to determine both ground lease and fee simple land values under current market conditions. The appraisal analysis will assist the City in understanding the potential financial implications of various disposition scenarios, including long-term ground leasing or the potential sale of property in fee. Staff recommends declaring the properties surplus and initiating the Surplus Land Act process in compliance with State law. Any sale proceeds will be used to replenish the City’s General Fund reserves.
NEXT STEPS
Following this meeting, staff will take into consideration any comments and feedback from the CEDC concerning the components of the proposed Real Estate Objectives and Strategy. If the proposed objectives and strategy are supported by the CEDC, staff will commence as proposed in Attachment II.
Prepared by: Tracy Irvin, Real Property Manager
Recommended by: Mary Thomas, Assistant City Manager
Approved by:
Jennifer Ott, City Manager