PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: August 19, 2025
TITLE:
Declaration of City-Owned Property as Surplus Land and Implementation of Procedures Under the State of California Surplus Land Act and the Coastal Act; Making a Finding of Exemption under the California Environmental Quality Act RECOMMENDATION:
Adopt a Resolution declaring that real properties owned by the City located at APNs 010- 302-030 and 010-302-031 are exempt surplus land and not necessary for the City’s use pursuant to Government Code Section 54221, authorizing the City Manager to comply with the procedures under the surplus land act, and finding that such declaration and authorization is exempt from environmental review under the California Environmental Quality Act.
DISCUSSION:
Assembly Bill 1486 (AB 1486, 2019) provides that land shall be declared either “surplus land” or “exempt surplus land” before a local agency may take any action to sell or lease land that the agency owns. AB 1486 further added provision prohibiting local agencies from negotiating any disposition of the property prior to compliance with the procedural requirements of the California Surplus Land Act.
The City currently owns property known as the Chapman Estate at 1243 Ocean Boulevard, Pismo Beach, which is approximately 1.55 acres and is made up of two parcels, APN 010-302-030 and APN 010-302-031. In August 2024, the City Council received an assessment of the Chapman Estate’s physical condition, operational and maintenance activities, and financial summaries. The City Council determined that operating and maintaining the Chapman Estate was not financially prudent nor was it reasonable to continue to operate and maintain. As such, the City Council directed staff to take the necessary steps needed to dispose of the property. To sell or lease the Chapman Estate, the City must now comply with the Surplus Land Act as amended by AB 1486.
Procedure
As noted above, the amended Surplus Land Act, Government Code sections 54220 et seq., requires the City to first declare this property to be exempt surplus land and offer such exempt surplus land to various entities for parks or open space before it can privately negotiate any disposition and dispose of the land. This action is consistent with the Costal Act requirements which restrict the use of the property to recreational and public use per the terms and conditions of the Distribution Agreement dated December 30, 2013 (Attachment 2), which transferred the property to the City. Therefore, pursuant to the amended Surplus Land Act and Coastal Act, City staff must send a written Notice of Availability of the City-owned properties by email or certified mail to the California Department of Housing and Community Development (HCD) and any regional park authority and State Resources agency for open-space purposes.
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If one of the entities/agencies receiving the Notice of Availability desires to purchase or lease the property, it must notify the City of its interest to do so in writing within 60 days of receiving the City’s notice, and the City must negotiate in good faith with the entity/agency so responding for a period of 90 days. If no one replies within 60 days of issuance of the Notice of Availability, the City may dispose of the property without regard to the Surplus Land Act.
If the City receives a reply, it must enter negotiations with an entity interested in parks or open space. If multiple notices of interest are received, the Surplus Land Act establishes priorities. In the event no agreement is reached between the City and any interested entity/agency after the 90-day good faith negotiation period, the land may then be disposed of without further regard to the Surplus Land Act.
Environmental
Staff has determined that the designation of this property as exempt surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under the California Environmental Quality Act pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by CEQA Guidelines Section 15378.
Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) declaring that real properties owned by the City located at APNs 010-302-030 and 010-302-031 are surplus land and not necessary for the City’s use pursuant to Government Code Section 54221, authorizing the City Manager to comply with the procedures under the Surplus Land Act, and finding that such declaration and authorization is exempt from environmental review under the California Environmental Quality Act.
FISCAL IMPACT:
There is no direct financial impact associated with declaring the Chapman Estate surplus property. However, depending on the number of responses to the Notice of Availability, City staff may need to spend multiple hours negotiating with multiple entities. Subsequent actions, should the City find an interested party, will have a financial impact and will be evaluated as part of those actions.
ATTACHMENTS:
1. Resolution
2. Chapman Estate Distribution Agreement
Submitted by: Scot Graham, Community Development Director City Manager Approval:
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RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA DECLARING THAT REAL PROPERTIES OWNED BY THE CITY LOCATED AT APNs 010-302-030 AND 010-302-031 ARE EXEMPT SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE PURSUANT TO GOVERNMENT CODE SECTION 54221, AUTHORIZING THE CITY MANAGER TO COMPLY WITH
THE PROCEDURES UNDER THE SURPLUS LAND ACT, AND FINDING THAT
SUCH DECLARATION AND AUTHORIZATION IS EXEMPT FROM ENVIRONMENT
REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Pismo Beach ("City") is owner in fee simple of certain restricted real property located at APNs 010-302-030 and 010-302-031, commonly known as the Chapman Estate and depicted in Exhibit A ("Property"); and WHEREAS, when the City owns surplus land in fee simple and such land is no longer necessary for the City use, then under the Surplus Properties Land Act, Government Code Sections 54220–54233 ("Act") the City must either declare the land surplus land or exempt surplus land; and
WHEREAS, the City Council desires to declare the property exempt surplus land and not necessary for City use; and
WHEREAS, the City received title to this Property with a restriction that the owner shall use the land for recreational and general public use purposes only; and WHEREAS, the Property legally qualifies as exempt surplus land because the Property is “Land Subject to Valid Legal Restrictions” [Gov. Code §54221(f)(1)(J); HCD Guidelines § 103(c)(8)] due to the restrictions in the disposition agreement that require the City to use the property for public recreational uses, except for the residential lease which is personal and non-transferable, and therefore meets the following criteria: i) the restriction was not imposed by the local agency, ii) the restriction makes housing a prohibited use, and iii) there is no feasible method to mitigate or avoid the prohibition of housing on the site; and
WHEREAS, the Act requires that, before City Council disposes of exempt surplus land or engages in negotiations to dispose of exempt surplus land, the City must support such a determination with written findings and shall provide a copy of the written determination to the California Department of Housing and Community Development (HCD) at least 30 days prior to disposition.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
1. The previous recitals are true and correct and a substantive part of this resolution.
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Attachment 1
2. The City Council hereby finds and declares the property described in the attached Exhibit A as exempt surplus land because the land is in the Coastal Zone and is restricted to recreational and public use per the terms and conditions of a Distribution Agreement dated December 30, 2013, which transferred the Property to the City. The subject property is commonly known as the Chapman Estate, located at 1243 Ocean Boulevard, Pismo Beach, California, and consists of Assessor’s Parcel Numbers 010-302-030 and 010-302-031.
3. The City Council directs the City Clerk or designee to send this resolution by electronic mail to the California Department of Housing and Community Development (“HCD”) in compliance with HCD's Surplus Land Act Guideline Section 400 and to send a Notice of Availability (NOA) for open space purposes to HCD and designated parks entities per Gov. Code §54221(f)(2) and HCD Guidelines §103(d)(3).
4. The City has reviewed this resolution with respect to applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA"). City staff has determined that the designation of this property as exempt surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by the CEQA Guidelines Section 15378. Adoption of this resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
5. The City Council authorizes the City Manager and other City officers and staff, jointly and severally, to do all things which they deem necessary or proper to effectuate the purposes of this resolution and ratifies and confirms any such actions previously taken. Such actions include negotiating in good faith in accordance with the requirements of the Act with any of the Designated Entities that submit a written notice of interest to purchase or lease the Properties in compliance with the Act.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 19th day of August 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
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Attachment 1
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
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