Page 9 - Lozano Smith Property Checklist

If the District does not agree to price and terms of sale during the 90-day period described
above, the District may proceed to dispose of property in any manner authorized by law.
However, if negotiations are unsuccessful and the District ultimately disposes of the land to
an entity that uses the property for development of 10 or more residential units, additional
requirements related to provision of affordable housing units will apply. (Gov. Code,
§ 54233.)

The property must also be offered at fair market value to the following additional entities
(Ed. Code § 17464(c)):

In writing to the Director of General Services, Regents of the University of California, the
Trustees of the California State University, the county and city in which the property is
situated, and any public housing authority in the county in which the property is situated,
and to any entity referenced in the paragraph immediately below (regarding Ed. Code
§ 17464(c)(2)) that has submitted a written request to the District to be directly notified
of the offer for sale or lease with an option to purchase the real property by the District.
(Ed. Code § 17464(c)(1).) This notice must be mailed no later than the date of the second
publication described in the paragraph immediately below.

By public notice, published once per week for three successive weeks (with at least five
days between each publication, not counting the actual publication dates) in a
newspaper of general circulation within the district, specifying that the property is being
made available to any public district, public authority, public agency, and other political
subdivision or public corporation in the state or of the federal government, and to other
nonprofit charitable or nonprofit public benefit corporations. (Ed. Code § 17464(c)(2).)

If any of the above entities is interested in purchasing the property, it must so notify
the District within 60 days of the third publication of the District’s notice of intent to
sell or lease. If the parties do not agree upon a mutually satisfactory price within this
60 day period, the property may be sold or leased by competitive bidding.

Until July 1, 2024, a school district expressly may make all written solicitations set forth in
the Education and Government Codes simultaneously. (Ed. Code § 17463.7 (e)(2).)

C. Offers to Lease with No Option to Purchase
The District may choose to notify all of the same government agencies and other entities
identified above, although doing so does not appear to be required expressly by the
Education Code. If the District elects not to do so, it can proceed to Step VI, below, “Board
Action Declaring Intention to Sell or Lease the Property”.

Note: There is no express statutory guidance or case law clarifying whether additional
notices are required. A more conservative approach would be to follow the same process as
applicable to sales or leases with options to purchase, although that does not appear to be
mandatory.

LozanoSmith.com Checklist for Sale or Lease of School District Surplus Property 8