Agda Pkt 2026.05.11 Joint SA PFA

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Page 2 of 8 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org BACKGROUND On April 15, 2024, the City Council adopted the Two-Year Economic and Workforce Development Plan (the “Plan”). One of the Plan’s goals is to “evaluate City-controlled real estate for potential economic development use.” Since the Plan’s adoption, the City has extended agreements with multiple car dealerships to support their parking needs, made progress toward installing a digital billboard (not on City property, though several City-owned sites were considered), and initiated a study to evaluate potential uses for the library parking lot, commonly referred to as “Lot B.” The Downtown Library campus, located at 1044 Middlefield Road, includes several City-owned surface parking lots that present an opportunity to advance key City Council priorities. The City has been pursuing the Downtown Library Park Project on Lot A to expand publicly accessible open space in the downtown core. After adoption of the Plan, staff conducted preliminary analysis on what type of development may be achievable on Lot B. Surplus Lands Act (SLA) The SLA is a state law originally enacted in 1968 and later strengthened—most significantly by Assembly Bill 1486 in 2019—to promote the use of publicly owned land for housing, particularly affordable housing. The Act requires cities to declare land as “surplus” when it is no longer needed for governmental purposes before selling or leasing it. Once declared surplus, agencies must prioritize affordable housing by issuing a Notice of Availability to affordable housing developers and other public entities, and engaging in good- faith negotiations with those interested in developing the site for low- and moderate-income housing. In practice, this means cities cannot simply dispose of surplus property on the open market; instead, they must first pursue opportunities for affordable housing and demonstrate compliance with state requirements, which are reviewed by the California Department of Housing and Community Development. ANALYSIS Lot B is a City-owned, approximately 31,000 square foot paved surface parking lot containing 98 stalls. Comprised of two San Mateo County Assessor Parcels (APN 053-134-010 and 053-134-060), Lot B is located in the Planned Community District (P District) of the Downtown Precise Plan. Under the Precise Plan, heights are generally limited to eight stories, with a maximum height of 92 feet, and no vehicular parking requirement. 9.B. - Page 2 of 8 505