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Until July 1, 2024, the Education Code provided an exemption from the 7-11 Committee
requirement for surplus property that has not previously operated, or was not constructed to
be operated, as an early childhood education facility or a school for elementary and
secondary instruction. (Ed. Code, §§ 17391(c), 17463.7(e)(1).) That exemption is no longer
in effect.
III. Consider Physical, Political, and Historical Aspects of Site
Optional: Clarify Site’s Physical Development Constraints, both for the district’s purposes
and for the information of prospective buyers and developers.
o Ensure title is free and clear of tax lien liabilities, restrictive covenants, conditions and
restrictions, restrictive easements, Certificates of Interest issued by the state of
California, and any additional constraints.
o Review acquisition and improvement financing history: If the property was either
acquired or improved with debt obligations such as tax-exempt bonds or Certificates of
Participation, give consideration to possible impacts on covenants made in connection
with that financing or a potential loss of tax-favored treatment of outstanding debt.
o Obtain a boundary/survey map to verify acreage and land area and a legal description.
o Determine current zoning and general plan restrictions on the property as well as the
likelihood and timeline for changes to a more favorable designation. This review should
also reveal other restrictions and costs such as Coastal Commission approval, Army Corps
of Engineers approval, availability of water and sewer connections, off-site costs such as
traffic mitigation, park dedication fees, fees for special districts, etc.
o Obtain a soils or geological study, if potential problems are identified (e.g., liquefaction
risks, slope problems, etc.).
o Consider having the site inspected to determine whether it contains any toxic or
hazardous materials.
o Obtain an asbestos study and removal cost estimate for existing buildings.
Optional: Clarify Political and Policy Issues.
o Although an appraisal is not required, it is often wise to obtain at least one appraisal to
obtain minimum and target values, whether the district elects to share the appraisal or
keep it confidential.
o Meet with key political players in City or County having jurisdiction to ensure that highest
and best use recommendations have potential for obtaining development approvals.
LozanoSmith.com Checklist for Sale or Lease of School District Surplus Property 5
