Agenda Item: 2
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:
DATE: January 27, 2026
SUBJECT: EXCLUSIVE NEGOTIATING AGREEMENT FOR THE CITY-
OWNED MAIN STREET PROPERTY
DEPARTMENT: Community Development
PRESENTER: Amber Rodriguez
RECOMMENDED ACTION
City Council:
1. Authorize the City Manager or designee to enter into an Exclusive Negotiation Agreement with Serrano Development Group for the City-owned Main Street property, subject to approval by the City Attorney.
2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita (City) acquired three adjacent properties located along Main Street near the intersection of Main Street and Railroad Avenue. The Moore’s Subs property (APN 2831- 019-901) was acquired in 2005, the Roger Dunn property (APN 2831-018-900) was acquired in 2018, and the Coffey Parking Lot property (APNs 2831-018-901 through -906) was acquired in 2021. Collectively, these parcels (the Property) total approximately 0.86 acres and include approximately 85 public surface parking spaces and one existing, approximately 4,743 square foot, two-story commercial building, formerly occupied by Roger Dunn. The site is located within the Arts and Entertainment Zone of the Old Town Newhall Specific Plan (OTNSP).
The OTNSP calls for the development of two public parking structures, one on the north and one on the south of Main Street. On the north side, property assembled through the former Redevelopment Agency allowed the City to construct public parking and negotiate Purchase and Sale Agreements for the Newhall Crossings and Laemmle projects, which provided a theater and a mixed-use development with ground floor commercial space and apartments above. A similar opportunity exists on the south side of Main Street where the Property could be redeveloped to
increase public parking while facilitating a mixed-use project with commercial uses on the ground floor and residential units above.
Surplus Land Act Process
In 2020, Assembly Bill 1486 strengthened the Surplus Land Act (SLA), which governs the disposition of publicly owned property. The SLA requires cities to offer surplus property to eligible affordable housing developers before pursuing other development options and requires that any future residential development include a minimum of 15 percent affordable housing. As a result, the City was required to complete the SLA process for the Property.
On June 11, 2024, the City Council declared the Property surplus and issued a Notice of Availability on June 13, 2024, to the entities identified in Government Code Section 54222. The 60-day interest period closed on August 12, 2024, during which the City received two Notices of Interest from Robin Realty Inc. and Alliant Communities. City staff and Kosmont Companies, the consultant retained by the City to assist with the SLA and Request for Proposal process, reviewed the proposals, and, as required by the SLA, the City entered into a 90-day good faith negotiation period beginning August 13, 2024, to determine whether an agreement could be reached on price and terms consistent with City goals for the site, including retaining existing public parking, compliance with the OTNSP, and receiving fair market value. Neither developer was able to meet these objectives or provide a full fair market value offer without requesting subsidies or other financial contingencies. Kosmont documented the required negotiations and submitted the package to the Department of Housing and Community Development (HCD) on January 22, 2025. On February 26, 2025, the City received confirmation from HCD that the SLA process was complete and that the City met all requirements to proceed with disposition of the Property.
Request for Proposal Process
Following HCD’s confirmation, the City conducted a Request for Proposal (RFP) to market the Property and solicit proposals from qualified developers. The RFP was published and circulated via the City’s e-procurement system BidNet on July 17, 2025. The City transmitted the solicitation to 1,054 vendors on BidNet, of which 75 vendors downloaded the RFP. Only one company provided a proposal for consideration.
The proposal was reviewed and evaluated based on the ability to meet the specific needs of the City. An evaluation panel comprised of staff from the Department of Community Development scored the responses using the following categories of weighted criteria:
• Project Concept (30 Points)
• Development Team Relevant Experience (25 Points)
• Financial Capacity (25 Points)
• Community Engagement and Design Approach (10 Points)
• Project Schedule (5 Points)
• Proposal Quality (5 Points)
The evaluation team scored the responses based on a 100-point system, with the results outlined
below:
Rank Company Location Score
1 Serrano Development Group Pasadena, CA 89
In reviewing proposals, the evaluation team awarded a score of 89 to Serrano Development Group (Serrano). Serrano is a multifaceted real estate investment and development company based out of Pasadena, California. They have experience in multi-family, industrial, and retail projects throughout the southwestern United States. Serrano is the developer the City previously worked with on the Newhall Crossings project and the Laemmle Theatre project for the Redevelopment Block on the north side of Main Street. The evaluation team determined that Serrano’s proposal offered an overall value to meet the City’s desire to partner with a development company to acquire and develop the Property consistent with the OTNSP.
City staff and Kosmont met with Serrano to discuss and refine the proposal to best meet the goals of the City. Kosmont has extensive experience with helping cities navigate real estate transactions, the SLA process, and with evaluating real estate proposals from developers. The development profile that is currently being proposed for the Property contemplates a public parking structure with an estimated 300 public parking spaces, a mixed-use project consisting of approximately 2,748 square feet of ground-floor commercial space, and approximately 65 residential units.
Next Steps
Staff is requesting City Council authorization to enter into an Exclusive Negotiating Agreement (ENA) with Serrano Development Group for the City-owned Main Street property. Entering into an ENA allows the City to negotiate with the developer to further refine project details, evaluate financial components, and outline the terms that would guide the potential sale and development of the site. This follows the same process the City used for the Redevelopment Block on the north side of Main Street, where the City issued an RFP, evaluated responses, and then entered into an ENA to refine project details and purchase and sale terms, before ultimately returning to the City Council with terms of a Purchase and Sale Agreement and project concept for consideration.
The ENA would provide an initial six-month negotiation period, with the option for an extension subject to mutual agreement, to refine the proposed purchase price, property details, development phasing, project timelines, and details of the ultimate development project proposed, and financial information. Importantly, entering into an ENA does not constitute approval of the project, the sale of the property, or any project entitlements. Upon successful negotiation of the ENA, staff would return to City Council for consideration of an item to enter into a Purchase and Sale Agreement with Serrano along with project details.
ALTERNATIVE ACTION
Other actions as determined by City Council.
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
City-Owned Main Street Property (Aerial View)
DRAFT - Exclusive Negotiating Agreement