TO:Andrew P. Powers, City Manager
FROM:Akbar Alikhan, Deputy City Manager
DATE:January 13, 2026
SUBJECT: Sale of City-Owned Property at 401/403 West Hillcrest Drive and Related Development Agreement
RECOMMENDATION:
1. Approve Purchase and Sale Agreement (PSA) related to the sale of 401/403 W.
Hillcrest Drive properties to Conejo Recreation and Park District.
2. Authorize the City Manager, or designee, to execute all documents necessary to effectuate the sale of 401/403 W. Hillcrest Drive properties [Assessor Parcel Numbers (APNs) 525-0-060-125, 525-0-053-115, 525-0-053-175, 525-0-060-135, 525-0-053-195, 525-0-060-085, 525-0-060-095, 525-0-060-115] to the Conejo Recreation and Park District (CRPD) pursuant to the terms and conditions set forth in the Development Agreement (DAGR) and PSA.
3. Read ordinance in title only, waive further reading, and if no objection, introduce ordinance to approve DAGR-2025-70004.
4. Authorize budget appropriation and expenditure in the amount of $175,000 in FY 2025-26 from A/C #001-0000-311-0000 (General Fund, Fund Balance) to A/C #001-3570-612-5699 (General Fund, Contracted Services Other) for consultant services related to American Land Title Association (ALTA) survey and title insurance services for 401/403 W. Hillcrest Drive.
5. Authorize budget appropriation in the amount of $30,400,000 in FY 2026-27 from A/C #001-0000-512-0000 (General Fund, Sale of Property) to A/C #001- 0000-311-0000 (General Fund, Fund Balance) for revenue from the sale of property.
6. Find that the following actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3): Common Sense Exemption;
Sale of City-Owned Property at 401/403 W. Hillcrest Drive and Related DAGR January 13, 2026
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Section 15312: Surplus Government Property Sales; and Section 15325:
Transfers of Ownership of Interests of Land.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
Increase in the amount of $175,000 to Adopted FY 2025-26 General Fund Budget and $30,400,000 to Adopted FY 2026-27 General Fund Budget.
Increase in the amount of $60,000 to Adopted FY 2025-26 General Fund Budget and $30,400,000 to Adopted FY 2026-27 General Fund Budget. Approval of the $175,000 in FY 2025-26 will be used for consultant services related to ALTA survey and title insurance for 401/403 W. Hillcrest Drive. Approval of the DAGR and PSA will result in one-time revenue from the sale of City-owned property at 401/403 W. Hillcrest Drive in the amount of $30,400,000. Funds are intended to be used towards costs associated with the Downtown Project (CI 5540).
BACKGROUND:
Since the adoption of the Downtown Core Master Plan (DCMP) in 2018, the creation of an activated, pedestrian-friendly, public space has remained a key community and City Council priority. In June of 2025, City Council endorsed the revised conceptual plan for the “Downtown Project” and authorized staff to pursue entitlement for the Project.
One of the cornerstones of the Downtown’s funding strategy is the disposition of the former City Hall site at 401/403 W. Hillcrest Drive, currently tenanted by CRPD.
At the March 20, 2025, CRPD Board Meeting, the CRPD Board expressed an interest in remaining at 401/403 W. Hillcrest Drive as the permanent home for its headquarters and Hillcrest Center for the Arts (HCFA). On May 20, 2025, City Council authorized the City Manager to explore disposition terms with CRPD leadership for the 401/403 W. Hillcrest Drive property.
On October 3, 2025, City and CRPD staff commenced negotiations of the terms of sale after conducting independent appraisals of the property. The agreed-upon sale price reflects the appraised value of the properties and allowable uses under the existing Specific Plan 17 (SP 17). As a term of sale, CRPD requested that the existing zoning regulations and Land Use Designations be preserved in their current state through a Development Agreement.
Sale of City-Owned Property at 401/403 W. Hillcrest Drive and Related DAGR January 13, 2026
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On December 2, 2025, City Council adopted a resolution declaring that the subject properties are exempt surplus land in accordance with the Surplus Land Act (SLA), allowing for the sale of the property by a future City Council action.
DISCUSSION/ANALYSIS:
Approval of Development Agreement DAGR-2025-70004 (Attachment #1) is recommended to create a binding contract that the City will maintain the existing General Plan Land Use designations ("Commercial Town", "Mixed-Use", and "Parks, Golf Courses and Open Space"), and zoning designations (“Mixed-Use Overlay Zone” and “Specific Plan No. 17”) as currently adopted for 30 years unless the property owner(s) applies for changes to the designations. Should any changes to the land use or zoning designations be proposed, the City would consider the proposed project in accordance with the procedures required by state law and the Thousand Oaks Municipal Code. No physical development or change of use is proposed as part of the subject request.
The subject properties are zoned SP 17, with a portion of APN 525-0-060-115 also zoned with the Mixed-Use Overlay Zone. Generally, SP 17 allows for both residential and nonresidential uses in certain areas and natural open space with passive recreational uses in other areas.
The subject parcels are designated by the General Plan 2045 Land Use Map as shown in the table below:
APN Street Address Acre
s
Land Use
525-0-060-125 26.99 Parks, Golf Courses, Open Space
525-0-053-115 8.86 Commercial Town
525-0-053-175 3.50 Parks, Golf Courses, Open Space
525-0-060-135 5.00 Parks, Golf Courses, Open Space
525-0-053-195 2.11 Commercial Town
525-0-060-095 403 W. Hillcrest Dr. 5.52 Commercial Town 525-0-060-115 6.40 M-U/Parks, Golf Courses, Open Space
525-0-060-085 401 W. Hillcrest Dr. 3.29 Commercial Town Total 61.67
The proposed Development Agreement and recommendation to find that the sale of the subject properties is consistent with the General Plan will be presented to the Planning Commission on January 12, 2026.
The proposed PSA, contained in Attachment #2, establishes a six-month escrow through July 13, 2026. Approval of DAGR-2025-70004 and written confirmation of Sale of City-Owned Property at 401/403 W. Hillcrest Drive and Related DAGR January 13, 2026
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the SLA determination from the California Department of Housing and Community Development are required before close of escrow. Additionally, the PSA requires the City to commission and furnish an ALTA Survey of the property prior to close of escrow. Recommendation #4 authorizes budget to retain a survey consultant to prepare the ALTA survey and funding for title insurance Top Ten Council Priorities FY 2025-26
The recommended action meets City Council’s Top Ten Priorities #2, to contemplate funding strategies for the Downtown Project.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
G. Continue City's commitment to community and cultural programs and services (such as Performing Arts/Theatres, Libraries, TOTV, Visual Arts, Youth and Senior Programs).
J. Implement high quality revitalization projects within Thousand Oaks Boulevard and Newbury Road Areas; develop a pedestrian oriented, viable, and self- sustaining “Downtown;” and continue to support production of long-term affordable housing.
PREPARED BY: Akbar Alikhan, Deputy City Manager
Attachments:
Attachment #1 – Ordinance for DAGR 2025-70004
Attachment #2 – Purchase and Sale Agreement
CMO: 670-80\aa\City Council\Council Items\2026\011326\Declaration of Exempt Surplus Lands at 401 403 W Hillcrest Drive Staff Report