Page 3 - Lozano Smith Property Checklist

Summary

The following is an executive summary of the process and statutory time requirements
throughout the process; a more detailed discussion follows.

> First identify the surplus real property and convene a committee to develop a District wide
policy on the use of surplus real property. (Ed. Code §§ 17387, et seq.)

> Declare intent to sell or lease the property to general public: To place the property on the
market, the Board must consider the committee’s recommendation that the property be
declared surplus and declare its intent to dispose of the property in a resolution. (Ed. Code
§ 17466.)

> Offers required by the Naylor Act (Ed. Code § 17485, et seq.): The Naylor Act only applies to
real property that has been used entirely or partially for school playgrounds, playing fields, or
other outdoor recreational uses and open-space land particularly suited for recreational
purposes. If the Naylor Act does apply, the District must offer to negotiate to sell or lease
the property to certain entities, usually for a below-market rate. The District may seek a
waiver of the Naylor Act. (Ed. Code § 33050.) The District must allow Naylor Act entities
sixty days to respond to the offer. (Ed. Code § 17489(c).)

> Selling or leasing with option to purchase (Ed. Code § 17464 and Gov. Code § 54220):

> The property must be offered to a first group of designated entities for park and
recreational purposes pursuant to Government Code sections 54220, et seq. (Ed. Code §
17464(b).) These entities must be allowed sixty days after receiving notice to respond
and are also entitled to a negotiation period of ninety days after giving notice to the
District of their interest in the property. This requirement cannot be waived.

> The property must be offered to a second group of designated public entities. This group
must also be notified that it has sixty days to make offers, but is not entitled to an
additional negotiation period.

> Lease (with no option to purchase): No additional notices, beyond the requisite offers to
Naylor Act entities, are expressly required. The District may proceed to lease the property to
the highest responsible bidder pursuant to Education Code sections 17466, et seq. (Note:
More conservatively, and in recognition of limited legal precedent, additional notices may
still be sent.)

> Leasing vacant classrooms (Ed. Code § 17465): The District must offer the classrooms to
other school districts in the District’s SELPA or the County Office of Education (“COE”) for use
for special education programs. The school districts or the County Office of Education are
entitled to a negotiation period of sixty days from receipt of the offer.

LozanoSmith.com Checklist for Sale or Lease of School District Surplus Property 1