Page 8 - Lozano Smith Property Checklist

The State Board of Education must provide 30 days written notice of the hearing on the
waiver to each public agency to which an offer of sale or lease must be made under the
Naylor Act. (Ed. Code § 33051.5.)

If the Naylor Act applies, the price of the land shall not exceed the school district’s cost of the
original acquisition, with adjustments made for any percentage increase or decrease in the
CPI from the original date of purchase to the year in which the offer of sale is made, plus the
cost of any improvement to the land made by the school district since the original
acquisition. However, the final sale price shall not be less than 25 percent of the fair market
value of the land or less than the amount necessary to retire the share of local bonded
indebtedness plus the amount of the original cost of the approved state aid applications on
the property. (Ed. Code § 17491(a).).

If public entities decline a school district’s offer to sell or lease school property under the
Naylor Act, the property may be sold, leased and/or developed to the same extent as is
permitted on adjacent property. The process of zoning necessary for such development is to
be expedited by the local city or county. (Gov. Code § 65852.9.)

B. Offers to Sell or Lease with Option to Purchase

A school district must also make written solicitations to other specified agencies, as set forth
below.

The District must make written solicitations to the following government agencies: any park
or recreation department of any city or county within which the land is situated, any regional
park authority having jurisdiction within the area in which the land is situated, and the State
Resources Agency. Such agencies must use the property for park and recreational purposes
if they purchase or lease the property under Government Code section 54222. (Ed. Code §
17464(b); Gov. Code § 54222(b).)

Government Code section 54222 also requires written solicitations to additional
government agencies, however, by declaring the property as “exempt surplus land,”
discussed above, the District appears to be exempt from these requirements. This is an
issue that the District may wish to discuss with legal counsel for confirmation, as this is a
new legal requirement.

If any of the above entities is interested in obtaining the property, it must so notify the
District of its interest in purchasing or leasing the land within 60 days of the District’s written
solicitation. (Gov. Code § 54222(e).)

In the event of such notification, the District and the purchasing or leasing entity must enter
into good faith negotiations to determine a mutually satisfactory price. If the price cannot be
agreed upon after a good faith negotiation period of at least 90 days, the District’s
obligations under Government Code section 54222 are discharged. (Gov. Code § 54223(a).)

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