Authored Articles & Publications Aug 21, 2015

Despite Delays, California Cities Moving Forward on Selling Redevelopment Properties

By Seth Merewitz

In the three years since California cities were forced to halt redevelopment projects, there is still much confusion as to how the process will proceed and how cities will deal with the sale of parcels, which range from convention centers to partial sidewalk space.

But, despite fears that the Department of Finance would rush cities to sell properties to generate cash, that is not the case under AB1484. Now, successor agencies and the DOF are figuring out the best way to dispose of redevelopment properties.

Cities and brokerage companies struggled to find the proper procedures, and potential developers were not sure how to begin the conversation with cities. While the DOF website does list many, there is no central database to find all the properties available.

The California Planning & Development Report said that, as of mid-June, approximately 230 Long Range Property Management Plans were approved, representing 60 percent of all successor agencies that still have property. A further 86 were submitted to the DOF, but the state’s review was not completed. As it stands, however, it is still not known how many properties are out there and how to find them.

Still, some cities, including Long Beach, Los Angeles and Sacramento, are already placing properties on the market, and others are expected to follow.

For example, in the City of Los Angeles, Cushman & Wakefield will be facilitating the sale of a 50-asset portfolio from CRA/LA. CRA/LA is a Designated Local Authority and successor to The Community Redevelopment Agency of the City of Los Angeles. State law requires that CRA/LA dispose of these assets, which include land, leased fees, easements and air rights. The properties are to be sold at fair market value. The assets for sale are dispersed across Los Angeles. Bids are due by Sept.15. For more info, see www.cralaassetsale.com.

Note: This article originally appeared on the now-defunct BBKnowledge blog, where Best Best & Krieger authors shared their knowledge on emerging issues in public agency law.

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