For City Council Meeting September 23, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Christina Taylor, Director of Community Development
Title
Request City Council to: (1) Adopt Resolution No. 8411 Declaring Certain City-owned Properties in Various Areas Within the City of Rialto as Surplus Land Pursuant to the Surplus Land Act; and (2) Authorize the City Manager or Their Designee to Release a Notice of Availability for the Sale of the Properties.
(ACTION)
body
RECOMMENDATION
Staff recommends that City Council:
1) Adopt the Resolution declaring certain City-owned properties as surplus land pursuant to the Surplus Land Act (Government Code Sections 54220-54234); and
2) Authorize the City Manager or their designee to release a Notice of Availability for the sale of the subject properties and to carry out such other steps as may be required to complete the Surplus Land Act process.
BACKGROUND
The City of Rialto (City) owns certain real properties in various areas within the City as described in Exhibit “A” attached Resolution (Properties). Pursuant to the Surplus Land Act, Government Code Sections 54220-54234 (SLA), public agencies must formally declare City-owned property as surplus land or exempt surplus land before initiating any disposition. This declaration must occur at a regular public meeting. The proposed resolution (Attachment A) declares that the subject twenty-six (26) parcels listed below are surplus land and are characterized as either vacant, parking lot, garden, single-family structure, or vacant commercial building and are not otherwise being used by the City.
ANALYSIS/DISCUSSION
Upon adoption of the attached Resolution, City staff will initiate the SLA mandated notification process by emailing a Notice of Availability (NOA) to certain local agencies and housing sponsors (Designated Entities) listed by the California Department of Housing and Community Development (HCD).
Key steps include:
• Sixty (60) Day Notification Period: Designated Entities have sixty (60) days from the NOA date to notify the City of their interest in the Properties. If the City does not receive any notice of interest within the sixty (60) day period, the City may dispose of the Properties without further regard to the requirements of the SLA.
• Good Faith Negotiations: If the City receives a notice of interest from any Designated Entities within the sixty (60) day period, the City must negotiate in good faith for no less than ninety (90) days.
• HCD Review: The City must report the outcome of the NOA and negotiations to HCD, which then has thirty (30) days to review the SLA compliance. At the end of the thirty (30) day period, the City may sell the Properties. If the City does not agree to price and terms with any of the Designated Entities, or if no Designated Entities responded to the NOA, the City may dispose of the Properties outside of the SLA.
• Post-SLA Disposition: If no qualifying interest is received, or negotiations are unsuccessful, the City may proceed with the sale of the Properties outside SLA requirements, subject to City Council approval.
The SLA process does not authorize the disposition of the Properties. Staff will return to the City Council with any transaction for approval.
ENVIRONMENTAL IMPACT
The proposed action has been reviewed with respect to the California Environmental Quality Act (CEQA) and City staff has determined the designation to be exempt pursuant to CEQA Guidelines Section 15060(c)(3) and Section 15378. The surplus land designation does not constitute a “project” under CEQA, as it does not result in a direct or a reasonably foreseeable indirect physical change in the environment. Future development will be subject to a separate CEQA review as applicable.
GENERAL PLAN CONSISTENCY
This action is consistent with the City of Rialto's General Plan Guiding Principle 3, Rialto's Economic Environment is Healthy and Diverse. “Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.”
Approval of this action also complies with the City of Rialto General Plan Goals and Policies:
Goal 2-2: Develop the Riverside Avenue Corridor to become an economically viable local service area.
Policy 2-2.1: Prevent strip commercial development and other inappropriate land uses such as industrial or logistics on Riverside Avenue. Uses such as commercial, multi-unit residential, and office would be deemed appropriate.
Goal 2-5: Develop Downtown Rialto as a lively, pedestrian friendly district typical of a small-town downtown, with a vibrant mix of residential, commercial, civic uses, and transit-oriented development.
Policy 2-5.1: Provide a dynamic mix of uses to create a lively balance of activity and small-town charm that brings people together to create an exciting environment.
Policy 2-5.2: Support a complementary mix of land uses, including residential densities to support a multi-modal transit node at the rail station.
LEGAL REVIEW
The City Attorney's Office has reviewed and approved the Resolution as to form.
FINANCIAL IMPACTS
The sale of the Properties is expected to generate fair market value revenue with the proceeds deposited into the City’s General Fund. The sale transaction process will require professional real estate services, such as title report/review, appraisal, and escrow.
ATTACHMENTS
1. Resolution
2. Surplus Land Map
3. Draft Notice of Availability Letter