DATE: November 17, 2026
TO: Board of Supervisors
SUBMITTED BY: Daniel Lynch, Interim Director, General Services Department
SUBJECT: Surplus and Sale of County Property - 90.05 Acres Near Selma, CA
RECOMMENDED ACTION(S):
TITLE
Adopt Resolution (4/5 vote) to declare as surplus approximately 90.05 acres of County-owned property located in the vicinity of Huntsman Avenue at South DeWolf Avenue, Selma, California 93662 (APNs 348-130-69ST and 348-130-71ST) as not necessary for County use and declare your Board’s intention as to such property:
a. The property shall be sold on an "as is" and “where is” basis at the minimum net cash amount of at least $1,981,000, subject to the successful “Qualified Entity” buyer's payment of all escrow and closing costs;
b. The County shall first attempt to sell the property under the statutorily-required “surplus land act” procedures and if the County does not sell the property under those procedures, the Department will return to the Board within six months to recommend that the Board authorize the County to undertake public bidding for the sale of the property, under the same terms and conditions, above (Government Code section 25526 et. seq.);
c. Approve the forms of documents required to initiate and complete the sale of the surplus land to a successful “Qualified Entity” buyer, including a form of the Notice of Availability of County Surplus Land, a form of Sale and Purchase Agreement & Escrow Instructions for a public entity buyer, which includes a form of User Tax Certificate and a form of Grant Deed, and a form of Sale and Purchase Agreement & Escrow Instructions and form of Grant Deed for a private entity buyer;
d. Authorize and direct the Director of General Services, the County Administrative Officer, the Clerk of the Board, and their respective designees, to take all necessary actions to carry out the foregoing resolution; and
e. The sale of the property shall be subject to approval by County Counsel, as to legal form, and by the Auditor-Controller/Treasurer-Tax Collector as to accounting form.
REPORT
Approval of the recommended action will declare the County-owned property located in the vicinity of Huntsman Avenue at South DeWolf Avenue, Selma, California 93662, APNs 348-130-69ST and 348-130-71ST, totaling approximately 90.05 acres (“Property”) as surplus and initiate the sale process under the Surplus Land Act (California Government Code sections 54220, et seq.).
Sale of Property to State or Local Public Agency
Because the County used a portion of proceeds of 2006 Tobacco Securitization Bonds to purchase the Property, any sale to a State or local public agency must comply with relevant 2006 Tobacco Securitization Bond documents and federal income tax laws, including applicable federal Treasury Regulations (collectively, “Federal Tax Requirements”), in addition to complying with the general legal requirements for selling County surplus property.
Specifically, such State or local public agency buyer would be required to:
a. Execute a User Tax Certificate assuring the County that the State or local public agency will use the Property only for its governmental purposes for the life of the Bonds;
b. Agree that no private persons or entities will own or lease any portion of the Property;
c. At its own cost, obtain the County’s bond counsel’s prior approval of any third-party use of the Property; and
d. Provide a surety bond.
Should the Property be sold to a private (non-public entity), the buyer would not be required to comply with these Federal Tax Requirements.
This item pertains to a location in District 4.
ALTERNATIVE ACTION(S):
Your Board may set a higher sale price for the Property than the recommended purchase price, direct the General Services Department (GSD) to continue to pursue other real property sale opportunities, or elect to keep the Property.
FISCAL IMPACT:
The precise fiscal impact will be determined by the ultimate final sale price. County costs associated with the sale of the Property include the cost of a Preliminary Title Report and the cost to advertise the sale of the Property, together are estimated at $5,000 and will be fully recovered through chargebacks to Interest and Miscellaneous Expenditures Org 2540. Sufficient appropriations and estimated revenues are included in the GSD-Facility Services Org 8935 FY 2026-27 Adopted Budget.
DISCUSSION:
Property Background
On August 14, 2007, the Board executed a Real Estate Purchase Agreement to buy approximately 90.05 acres of open land (the Property) to develop an Agriculture and Food Safety Center (see Site Map, Attachment A). A portion of proceeds of 2006 Tobacco Securitization Bonds were utilized for the purchase.
The Agriculture and Food Safety Center was ultimately not developed due to budgetary constraints and limited participation by the private agriculture sector. Since its purchase of the Property, the County made use of the Property only in the Spring of 2017 to assist the Consolidated Irrigation District with flood control activities. Since then, the County has not made any use of the Property.
On April 7, 2015, the Board declared the Property as surplus land and directed staff to take the necessary actions to sell the Property; however, there were no interested parties to that sale. As such, the recommended actions in this item ask your Board to declare the Property as surplus land again and initiate the sale process described in the Surplus Land Act for a new minimum price and certain minimum terms and conditions summarized below.
Should your Board approve the recommended action, the County’s Chief Negotiator (CAO and GSD Director), will return to the Board within six months to present the proposal that best meets the requirements under the Surplus Land Act and the recommended resolution. Should the County be unable to find or otherwise successfully negotiate for the sale of the Property with any Qualified Entity under the Surplus Land Act, staff will return to the Board within the same six-month period to request the Board to initiate sale of the Property for the same minimum price through a public bidding process (Government Code section 25526, et seq.). Such public bidding may be conducted upon an affirmative vote of the Board.
Williamson Act
In October 2026, the Department of Public Works and Planning and the Assessor’s office reviewed the history and status of the subject parcels as related to the Williamson Act contract and determined that the parcel identified as 348-130-69ST is subject to an Agricultural Land Conservation Act (ALCC) 6772 which remains in full effect.
Property Appraisal
On June 12, 2026, Joshua J. Palmer and Gregg J. Palmer, of James G. Palmer Appraisals, Inc., an independent appraisal firm engaged by the County, appraised the Property and determined the fair market value for the Property, as agricultural land:
• Property Valuation of $1,981,000 (or approximately $22,000 per acre);
• Property is in the unincorporated area of the County; and
• Highest and best use of the Property as if vacant is for investment for development to public or private use.
The appraisal states: [T]he property is within the Selma sphere of influence under the 2035 General Plan. The property is designated for planned medical development. The site is approximately 1/2 mile from the city limits. It is unlikely that the property will develop within 5 or 10 years. Growth within the area has been historically slow and there are no expected major changes to historical trends in the foreseeable future.
2006 Tobacco Securitization Funds
If your Board wishes to sell the Property, the sale process must comply with relevant 2006 Tobacco Securitization Bond documents and Federal income tax laws, in addition to State law requirements for selling County surplus property. These Federal requirements differ dependent upon the nature of the buyer (private party, State or local government entity, etc.). These Federal requirements are summarized in Attachment B - Process and Limitations for Sale of Land Purchased with 2006 Tobacco Securitization Bond Funds.
Again, the Federal Tax Requirements only become relevant if the sale is to a State or local public entity. In the event that the sale goes to a private buyer, the County is relieved of its continuing obligations as to the Property under the Federal Tax Requirements and is only limited in how it may use proceeds from the sale (a new, qualified capital expenditure, which must be owned by the County and subject to its control).
Authority for Surplus Land Sale; Affordable Housing Requirements
Government Code section 54220, et seq. outlines the statutorily mandated procedure under the Surplus Land Act that must be followed before the County may otherwise sell the Property. Briefly, the County must give its notice of availability of the Property for sale to certain Qualified Entities including:
• The parks and recreation department of any city or county, within which the surplus land is located, any regional park authority having jurisdiction within the area where the surplus land is located, and the State Resources Agency for park and recreation or open space purposes;
• Any school districts within those jurisdictions the surplus land is located, for the purpose of school facilities construction or open space; and
• Certain housing agencies within whose jurisdiction the surplus land is located for the purpose of developing low and moderate-income housing.
If a Qualified Entity purchases the Property under Surplus Land Act procedures, the Grant Deed will contain an additional limitation on how the Property may be lawfully used. If the County does not sell under the Surplus Land Act, the property may be sold through the public bidding process. Government Code section 54233 in the Surplus Land Act provides specific requirements that will apply to the Property with respect to future owner who develops the Property for housing.
CEQA
The recommended action does not include a “project” as defined by the California Environmental Quality Act (CEQA), meaning such approval would not commit the County to a definite course of action and would be exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines 15061(b)(3)). For the same reasons, if the County does not sell the Property to a Qualified Entity under the Surplus Land Act, recording a restrictive covenant for any future housing project prior to a public sale, as required by Government Code section 54233, will not constitute a “project” under CEQA based on currently available information.
REFERENCE MATERIAL:
BAI #14, April 7, 2015
BAI #23, April 7, 2015
BAI #77, August 14, 2007
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A - Site Map and Real Property Legal Description
Attachment B - Process and Limitations for Transfer or Sale of Land Purchased with 2006 Tobacco Securitization Bond Funds
On file with Clerk - Resolution to Declare Surplus Land and Board’s Intention to Sell
On file with Clerk - Form of Real Property Sale Agreement & Escrow Instructions, Grant Deed, and User Tax Certificate (Public Entity Buyer)
On file with Clerk - Form of Real Property Sale Agreement & Escrow Instructions and Grant Deed (Private Entity Buyer)
On file with Clerk - Form of Notice of Availability of County Surplus Land
CAO ANALYST:
Amy Ryals