California’s surplus land law won’t stand in the way of Redding Rodeo’s long-term lease of riverfront property – Shasta Scout

The Redding Rodeo Association moved one step closer to a long-term lease with the city of Redding last week. The Rodeo is seeking a minimum 25-year lease to provide the necessary stability and continue to invest in much-needed infrastructure improvements to the site. On Nov. 19, the Redding Council unanimously approved a letter of intent (LOI) expressing strong interest in an extended contract with the rodeo.

The letter is non-binding, but contains a number of important details that demonstrate the significant progress made between city officials and rodeo leadership in recent months. Progress accelerated after Redding City Council appointee Joshua Johnson chaired an ad hoc committee to discuss the details of the lease. That committee included Johnson and Redding Mayor Tenessa Audette, as well as Redding City Manager Barry Tippin and two Redding Rodeo representatives.

It was widely believed that Johnson rejected a long-term lease between the city and the rodeo when the trial began. He told Shasta Scout After last week’s meeting, he explained that his initial position was that a long-term lease would not happen without addressing the concerns of other council members, including Audette, Julie Winter and Jack Munns.

“I just saw the writing on the wall,” Johnson said, “that even if I was in favor of it, it wouldn’t pass.” That’s why I suggested raising the idea of ​​an ad hoc committee.”

The process was new to rodeo president Ted Bambino, who opposed the idea when the committee first approved it in September. By October he had changed his mind and said he was hopeful the ad hoc committee process would result in a mutually satisfactory lease.

The rodeo has leased riverfront property from the city for over 75 years. But the future of this lease has been in doubt in recent years in part due to updates to California’s Surplus Land Act (SLA). Changes to the law are intended to increase the supply of affordable housing by requiring cities that want to sell or lease public land on a long-term basis to initially make it available for low-income housing.

It was previously uncertain whether the SLA would apply to the rodeo’s long-term lease of the land. One of the first steps the Ad Hoc Committee took was to contact the California Department of Housing and Community Development (HCD) to determine whether the SLA would apply. An HCD representative emailed City Manager Tippin on Oct. 3 to say that this was not the case and provided reasons for it.

“Generally, leases over 15 years will trigger the SLA and require an injunction,” the representative wrote. “However, the new SLA guidelines indicate that the renovation of buildings used for the ‘same purpose and purpose’ does not constitute ‘development or demolition’ and that leases with a term of more than 15 years, the DO NOT involve ‘development or demolition’, this shall not be considered (as) ‘disposition of surplus land’.”

In other words, since the SLA applies only when development or demolition occurs on the public land being leased, and since “development” under the SLA guidelines only applies to structures intended for new use or demolition To be built for a new purpose, the Rodeo plans to construct Improved Structures for a similar use and purpose to those already existing on the site will not trigger the SLA provisions.

This decision by HCD makes a long-term lease for the rodeo more likely, but nothing is final yet. The non-binding LOI, approved by the City Council last week, also addresses other concerns, including whether the nonprofit rodeo can raise the money to make necessary long-term improvements to the site.

The potential lease is currently expected to have a term of 25 years, with two possible extensions of ten years each. It contains performance metrics, including the commitment to complete the promised development within specific timelines.

Under current non-binding terms, the rodeo must find a way to pay for new announcer’s booths and private boxes within the next 10 years and grandstands within the next 15 years. As Audette pointed out, this is no small deal for the nonprofit rodeo to enter into. The cost of those improvements today is estimated at $11 million to $12 million, Tippin said. In 2022, the rodeo’s financial records showed a net worth of $731,000 and annual revenue of just under $400,000.

The lease also requires the rodeo to hold quarterly meetings with the city and other community partners, identify opportunities for greater community use of the rodeo facilities and participate in a robust parking plan.

“The intent,” Tippin said, is that the lease will result in a “modern rodeo facility that we can all be proud of.”

Rodeo President Bambino used his public comments during the meeting to encourage other community groups to try the ad hoc committee process, saying it helped him build relationships he never thought he would have.

“Josh (Johnson) came in guns blazing and walked out with a little squirt gun,” Bambino said as the audience laughed. “During this ad hoc process, we became friends. Josh and I will have many good things together in the future, regardless of his position in the city.”

Johnson agreed, saying the extensive discussions that took place during the ad hoc process allowed everyone to look at the situation from a new perspective.

“On both sides,” Johnson said Shasta Scout“We probably believed some of the misconceptions that other people had told us. I think we were both enlightened by it. . . We come to the table, sit across from each other and actually work on the deal together. There was more alignment between the city and the Redding Rodeo Association than we originally thought.”

Councilman Mark Mezzano, who originally opposed the ad hoc committee process, also spoke at the meeting and said he wanted to go on the record saying he was wrong.

“I was the one who said it was a waste of time,” Mezzano told Bambino. “I was wrong. It happens. I can’t wait to see you make the improvements you’re going to make.”

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