Surplus City Property
When the Banning City Council wishes to sell or otherwise dispose of almost all* City-owned property, they are now bound by the requirements of the Surplus Lands Act (more information on this statute is provided below). Briefly, this means that each property must be declared by the City Council as "surplus land," defined by the Act as any land "not needed for the agency's use" GC§ 54221(b).
Following the declaration of surplus, the City distributes a Notice of Availability (NOA) to eligible entities (defined in greater detail below), including the California Department of Housing and Community Development (HCD), any local public entity within the jurisdiction where the surplus local land is located, and developers who have notified HCD of their interest in developing affordable housing on surplus local land.
Any eligible entity desiring to purchase or lease the surplus land for any of the purposes described above must notify the City in writing of its intent to purchase or lease the land within 60 days after receipt of the City’s NOA.
If the City receives notice of interest from any eligible entities, the SLA mandates a 90-day negotiation period with any designated entities that submit timely offers. If no notice of interest is received or negotiations do not result in a disposition, the City may proceed with the sale or lease of the property.
The SLA does not require the City to dispose of surplus land at less than fair market value. However, the SLA requires a Deed Restriction be placed on the property at the time of transfer that requires, at a minimum, any subsequent development of 10 or more residential units on the site must designate at least 15 percent of units as affordable.
*Please see a comprehensive guide on properties that are exempt under the HCD Surplus Lands Act Exemptions Guide, also included under Resources.
Surplus Lands Act (AB 1486)
The Surplus Land Act (Government Code Section 54220 et seq.) amended the State of California's Surplus Land Act (SLA) by prohibiting local agencies from commencing negotiations over the sale or lease of surplus property prior to sending notices about available, surplus local public land to designated entities ("eligible entities"), including:
- California Department of Housing and Development (HCD);
- Any local public entity within the jurisdiction where the surplus local land is located; and,
- Developers who have notified HCD of their interest in developing affordable housing on surplus local land.
State Surplus Land Act Notification Requirements
Effective January 1, 2020, the SLA requires a local agency to declare property as “surplus land” before taking any actions to dispose of such property. The process for a local agency to declare a property as surplus is outlined below:
|1||Legislative Body approves Notice of Availability; Adopts resolution declaring City-owned property as "not needed for the agency's use" GC§ 54221(b).||City Council Action (through adoption of a resolution declaring the property to be surplus)||Can be initiated at any time|
|2||Issuance of Notice of Availablity (NOA) for Surplus Property||Documented issuance of NOA both electronically and in hardcopy to HCD list of Interested Parties||Must be issued and open for no less than 60 days.|
|3-A||If Responses Received||All responses to NOAs must be documented as well as any ongoing discussions and/or negotiations with an eligible entity. A responsive proposal must be received before the end of the NOA period to require the extended negotiating period under the SLA.||Responsive proposals submitted initiate a 90-day good faith negotiating period between the agency and interested party(ies).|
|3-B||No Responses Received||Provide proof of SLA process to HCD; Obtain HCD approval that the City has successfully completed the required process to then dispose of the surplus land|
|4||Surplus Land Disposal||Once completion of the SLA process has been approved by HCD, the City may dispose of the surplus land.|
- Sign Up to Receive Notices of Availability
- Exemptions to the Surplus Lands Act
- Statewide Mapping Database of All Surplus Lands
Current City-Owned Surplus Properties
|Situs Address||Assessor's Parcel Number (APN)||Property Description||Authorizing City Council Resolution|
|Notice of Availability (NOA)||HCD SLA Compliance Approval|
|CLOSED||200 S. Hathaway Street||532-140-003, 532-150-004||Banning Municipal Airport Parcels||CC Resolution 2022-74|
|CLOSED||2200 Block of W. Westward Avenue||532-180-036, 532-180-037||Westward Parcels (1 & 2)||CC Resolution 2022-75|
|CLOSED||33 S. San Gorgonio Avenue||540-204-009||Lithopass/Brew Rebellion Location||CC Resolution 2022-90|
|CLOSED||1581 E. Charles Street||543-090-008||Formerly Portion of Ivy Substation Property||CC Resolution 2022-121|
|CLOSED||1973 W. Westward Avenue||532-130-013||Formerly Portion of Airport Substation Property||CC Resolution 2022-102|
|CLOSED||2200 Block of W. Westward Avenue||532-180-034, 532-180-035||Westward Parcels (3 & 4)||CC Resolution 2022-107|
|CLOSED||200 S. Hathaway Street|
532-130-011, 532-130-012, 532-130-018, 532-150-002, 532-150-003,
|Banning Municipal Airport||CC Resolution 2021-41|
CC Resolution 2021-99
|CLOSED||150 E. Ramsey Street|
220 E. Ramsey Street
280 E. Ramsey Street
245 E. Livingston Street
|Former San Gorgonio Inn Site||CC Resolution 2020-42|
Northeast Corner of Highland Springs Avenue at Sun Lakes Boulevard
|419-140-041||NEC Highland Springs/Sun Lakes||CC Resolution 2020-41|
|CLOSED||447 E. Ramsey Street||541-150-025 541-150-026 541-150-027 541-150-028 541-150-004||CC Resolution 2021-18|
*See 2022 process incorporating these 2 parcels into the 200 S. Hathaway Street surplus act compliance approval.