Surplus Land Declaration for
Chapman Estate
Item 12.C
By Scot Graham
Community Development Director
Meeting Date: February 03, 2026
Background
•Assembly Bill 1486 (2019) requires a local agency declare land either “Surplus Land” or “Exempt Surplus” land prior to any sale or lease of the land.
•August of 2024 - Council received an assessment of the Chapman Estate related to the financial cost to repair and maintain the property.
•Due to high cost of operations and maintenance Council directed staff to start the process to dispose of the property •August 19, 2025 – Council adopts Resolution R-2025-061 declaring the property “Exempt Surplus Land” due to property restrictions for recreational and general public use stemming from the Distribution agreement.
Background
2013 Distribution Agreement
-Agreement is with City and Trust
-If City sells the property, Distribution agreement requires:
-City shall negotiate a sales agreement under which some portion of the property is preserved for park/recreational use, any sale proceeds shall proportionally augment the Chapman trust for the SLO Symphony, SLO Foundation for the Public Arts Center, Pacific Opera, GALA, and Marianne Tally Foundation, under no circumstances shall any proceeds of the property benefit City or any private entity, however, City shall be reimbursed for any capital improvement expenditures.
Background
-August 27, 2025 – 60 Day Notice of Availability is sent out Parks and Recreation entities. -October 2025 – HCD contacts staff with notice they are rejecting City’s finding that the property qualifies as “Exempt Surplus” land -December 2025 – HCD meets with staff and suggests using regular SLA process following Govt. Code section 54227(b) allowing City to identify preference to sell property to entity that will use property for park/public use.
Standard SLA Process
Declare the land
“surplus”
Issue notice of availability to required parties (60 days) Negotiate in good faith (90 days)and prioritize 1. OS and Rec use
2. affordability
Send proposed disposition to HCD for review
Address HCD’s findings Dispose of the land
Recommendation
Adopt a resolution declaring the Chapman Estate properties Surplus Land and not necessary for the City’s use and authorizing the City Manager to comply with the procedures under the SLA and finding this declaration exempt from CEQA.
Questions