Council declares waterfront parcel exempt surplus land after state OK, opening government-only notice and negotiations

The Ventura City Council voted May 5 to declare the waterfront parcel bounded by the pier and the adjacent downtown parking structure exempt surplus land, clearing a statutory step required before the city can consider long‑term leases for the site.

Staff said the California Department of Housing and Community Development (HCD) reviewed the city’s documentation and issued an exemption in January 2026 because a recorded deed restriction limits that portion of the property to recreational use; HCD concluded the parcel could not be used for housing and therefore qualifies as exempt from the Surplus Land Act’s affordable‑housing priority provisions.

Because the site lies in the coastal zone, the city must issue a notice of availability for open‑space and recreational purposes to a limited group of public agencies (city and county parks departments, certain state agencies) and allow 60 days for responses. Staff explained three potential pathways after the notice: (A) no responses — staff proceed to compliance reporting; (B) responses with no deal — staff report outcomes and may lead public engagement later; (C) responses and a negotiated deal — council would consider any proposal and, if accepted, staff would complete surplus‑land reporting and then move to project entitlements and public engagement.

Staff stressed the Surplus Land Act’s narrow timeline and procedural rules, warning that city‑led public workshops on project preferences before the notice process could be viewed as prejudicing good‑faith negotiations and risk restarting the surplus‑land process. Several public speakers nonetheless urged early, robust community engagement and asked that the notice documents clearly state what “recreational” uses are permitted on the deed‑restricted parcel.

What happens next: Staff will send draft Notices of Availability for the exempt parcel and the non‑exempt surplus parcels to HCD for final review, then release them and start the 60‑day response period; if agencies respond, a 90‑day good‑faith negotiation window follows. Council directed staff to return with outcomes as required under the Act.