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Apr 02, 2025
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Law Update on citys right to lease parking lots

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To city council members: Subsection 2: any lease requires an ordinance, subject to a referendum. ( see below ) It appears that the law (subsection 4 below) requires bidding on the parkig lot lease. A $1.00 per year lease to a housing developer is "NOT A BID". Normally, a 5 acre parking lot, valued at $20,000,000+ should lease for $50,000+ per month. The council needs to resolve these issues before going forward. Thank you Michael DeMoss Attorney Tax paying resident


GOVERNMENT CODE - GOV
TITLE 4. GOVERNMENT OF CITIES [34000 - 45345] ( Title 4 added by Stats. 1949, Ch. 79. )
DIVISION 3. OFFICERS [36501 - 41805] ( Division 3 added by Stats. 1949, Ch. 79. )
PART 2. LEGISLATIVE BODY [36801 - 40592] ( Part 2 added by Stats. 1949, Ch. 79. )
CHAPTER 5. City Property [37350 - 37685] ( Chapter 5 added by Stats. 1949, Ch. 79. )

ARTICLE 2. Leases [37380 - 37396] ( Article 2 added by Stats. 1949, Ch. 79. )

37380

(2) Any lease entered into pursuant to this section shall be authorized by an ordinance adopted by the legislative body. The ordinance shall be subject to referendum in the manner prescribed by law for ordinances of cities.

(3) Prior to adopting an ordinance authorizing a lease, the governing body shall hold a public hearing. Notice of the time and place of the hearing shall be published pursuant to Section 6066 in one or more newspapers of general circulation within the city,
and shall be mailed to any person requesting special notice, to any present tenant of the public property, and to all owners of land adjoining the property.

(4) Any lease shall be awarded to the bidder which, in the determination of the legislative body, offers the greatest economic return to the city, after competitive bidding conducted in the manner determined by the legislative body. Notice inviting bids shall
be published pursuant to Section 6066 in one or more newspapers of general circulation within the city.

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