Public Works Agency
www.santa-ana.org/pw
Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 21, 2025
TOPIC: Resolution Declaring City-Owned Properties as Surplus Land and Exempt Surplus Land Pursuant to the California Surplus Land Act
AGENDA TITLE
Resolution Declaring City-Owned Properties as Surplus Land and Exempt Surplus Land Pursuant to the California Surplus Land Act and Directing the City Manager or their Designee to Comply with the Requirements of Government Code §54220 et seq. for the Sale and Activation of Surplus Land
RECOMMENDED ACTION
1. Adopt a resolution declaring City-owned property as surplus land and exempt surplus land and direct the City Manager or designee to comply with the requirements of Government Code §54220 et seq. for the sale and transfer of ownership accordingly.
RESOLUTION NO. 2025-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA DECLARING VARIOUS PROPERTIES AS
SURPLUS LAND AND EXEMPT SURPLUS LAND AND DIRECTING THE CITY
MANAGER TO FOLLOW THE PROCEDURES SET FORTH IN THE SURPLUS LAND ACT, CALIFORNIA GOVERNMENT CODE SECTION 54220, ET SEQ.,
AS AMENDED, FOR THEIR DISPOSITION
2.Determine that, pursuant to the California Environmental Quality Act, the recommended actions are exempt from further review pursuant to Section 15312 (Surplus Government Property Sales).
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
Background
The Public Works Agency Engineering Services Division (PWA) is responsible for the administration and oversight of all capital improvement projects in the City. The City owns real property assets that were acquired for various roadway improvement projects and are remnant parcels following the completion of the projects.
Resolution Declaring City-Owned Properties as Surplus Land and Exempt Surplus Land and Exempt Surplus Pursuant to the California Surplus Land Act October 21, 2025
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The activation of these vacant lots will promote neighborhood improvements, while reducing City liability and the growing expenses of maintaining these lots for fencing and weed abatement on a routine basis. Staff recommends that these remnant parcels be sold off and developed to promote economic activity in the City and augment tax bases to further support City services and operations.
Disposition and Activation
The disposition process of all remnant parcels must abide by the Surplus Land Act (SLA) regulations prior to being sold on the open market. The SLA requires all local agencies to prioritize affordable housing, parks, and open space when disposing of surplus land and only after exhausting those options can the parcels be sold for other uses. If the SLA process concludes and no viable affordable housing or park development materializes, staff intends to market the parcels to promote the highest and best use developments.
The adopted General Plan and Bristol Corridor Specific Plan (SP-1) guide the future development potential of the remnant parcels. These plans establish the land use and zoning for the remnant parcels, most of which are zoned for commercial use and some for residential and open space use. Some remnant parcels are too small to be developed independently and will be either consolidated or sought to be sold to adjacent properties. Parcels designated for residential use are likely to develop as single-family residences due to their size and adjacent uses. The parcels designated for commercial uses have a variety of potential development options. Staff has identified that the highest sales tax producing commercial uses for the remnant lots on Bristol Street and Warner Avenue would be high-volume drive-through food service establishments, for example, In-n-Out, Dutch Bros Coffee, and Chick-fil-A. For the commercial parcels, staff will seek to sell to a developer who intends to develop the parcels and demonstrates an ability to attract high sales tax producing businesses. To facilitate this, staff intends to consolidate remnant commercial parcels to form larger parcels adequate for those types of developments. Some parcels are designated as open space along Bristol and Warner, but will be reevaluated as part of the ongoing zoning code update for potential designation as commercial. However, as noted, potential commercial development will come after completing the SLA process.
Surplus Land Designation and Process
The legislation requires that the land must be declared as either surplus land or exempt surplus land, supported by written findings before a local agency take any action to dispose of land. Staff has identified 25 City-owned properties as surplus land and 22 City-owned properties as exempt surplus land. Generally, all properties are surplus land unless they meet exemption requirements, such as being under 21,780 square feet in area. Adoption of the Resolution would declare eligible City-owned vacant properties as surplus land and others as exempt surplus land to fulfil SLA requirements, based on qualifying categories (Exhibit 1-2).
Resolution Declaring City-Owned Properties as Surplus Land and Exempt Surplus Land and Exempt Surplus Pursuant to the California Surplus Land Act October 21, 2025
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The procedures set forth in California Government Code Section 54220 et seq. must be followed any time City-owned land is disposed of. The procedure requires the City to offer the sale or lease of surplus land to certain public entities for a period of 60 days, as follows:
1. For the purpose of developing low- and moderate-income housing, a written notice of availability of the surplus land shall be sent to any “local public entity” as defined in Health and Safety Code Section 50079 within whose jurisdiction the surplus land is located and to “Housing Sponsors” that have notified the California Department of Housing and Community Development (“HCD”) of their interest in surplus land. Local public entities to be notified include the City of Santa Ana Housing Authority.
2. For open-space purposes, a written notice of availability of the surplus land shall be sent to the City of Santa Ana Parks and Recreation Agency, the County of Orange OC Parks, and the State Resources Agency or any agency that may succeed to its powers.
3. For the purpose of use by a school district for school facilities construction or open-space purposes, a written notice of availability of the surplus land shall be sent to the Santa Ana Unified School District.
If the City receives a letter of interest from any of the above entities, the City would enter into good faith negotiations concerning the price and terms of the sale with that entity for a period of 90 days. If the price or terms cannot be agreed upon after 90 days, or if no entity gives notice of interest, the City may sell the surplus land without further regard to the surplus land procedures, except that any residential development on the surplus land that contains 10 or more units must restrict 15% of the units for affordable housing. Nothing in the surplus land procedures requires the City to sell surplus land at less than fair market value.
If the end of the 90-day negotiation period does not result in successful negotiations, staff will proceed with disposition via the Request for Proposal (RFP) process, consistent with previous methodology approved and utilized for disposition of properties with restricted sale of proceeds, such as using grant funds for the acquisition of land.
Purchase and Sale Agreements (PSA) for the sale of these properties would be brought to the City Council for consideration at a future date, following all necessary evaluation periods.
In addition to designating land surplus, Staff categorized exempt surplus land for all eligible substandard parcels not fit for independent development per existing use.
Resolution Declaring City-Owned Properties as Surplus Land and Exempt Surplus Land and Exempt Surplus Pursuant to the California Surplus Land Act October 21, 2025
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Adoption of the Recommended Action will designate both surplus and exempt surplus land, which is the first action necessary to move forward in fulfilling the SLA process.
Notice of Exemption Determination
The land proposed to be declared as exempt is supported by Section 103(c)(3)(a) small surplus land parcels category, in which the land is less than the 21,780 square feet in area; and is not contiguous to land owned by a local agency that is used for open-space or low and moderate income housing purposes. Additionally, many of the parcels also qualify under Section 103(c)(6) surplus street land, which is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
In alignment with Government Code 54221 subd. (f)(1)(b), Notice of Exemption determination shall be provided to the State’s Department of Housing and Community Development at least 30 days prior to disposition. Once SLA requirements are met, Staff will present a new item for consideration of disposition in compliance with the Santa Ana Municipal Code Section 2-706 Sale to Owners of Adjoining Property, and Section 2-709 Exceptions to transfer ownership of substandard vacant land.
ENVIRONMENTAL IMPACT
Pursuant to the California Environmental Quality Act (CEQA), the recommended actions are exempt from further review pursuant to Section 15312 (Surplus Government Property Sales). If development is proposed on the Properties by a subsequent buyer, that development would be reviewed under CEQA.
FISCAL IMPACT
There is no fiscal impact for this action at this time. Costs for maintaining vacant lots have escalated over recent years, with charges for installation, rental fees, damaged material replacement fees, and emergency fencing requests as needed. Selling remnant land will help generate funding that will support street improvements and right- of-way maintenance as well as contribute to the City’s property tax and sales tax base.
Staff will return to Council in the future to consider and approve any land transactions as a result.
EXHIBIT(S)
1. Resolution Designating Various Properties
2. Location Maps
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager