|
DATE: |
November 18, 2025 |
07 |
SUBJECT
Title
ADOPTION OF RESOLUTIONS AUTHORIZING THE SALE AND TRANSFER OF REAL PROPERTY #2017-0128-A LOCATED IN BOULEVARD AND #2021-0200-B LOCATED IN VALLE DE ORO; AUTHORIZATION TO SIGN THE GRANT DEEDS; AUTHORIZATION TO EXECUTE DOCUMENTS AND PERFORM ANY AND ALL ACTIONS NECESSARY TO COMPLETE THE SALE OF THE PROPERTIES; AUTHORIZATION TO DEPOSIT PROCEEDS AND CEQA EXEMPTION (DISTRICTS: 2 & 4)
Body
OVERVIEW
On September 26, 2017 (06) and February 28, 2024 (2), the San Diego County Board of Supervisors (Board) declared the Former Boulevard Bin Transfer Station also identified as Real Property Number 2017-0128-A (Boulevard Property) and Former Avocado Park-and-Ride also identified as Real Property Number 2021-0200-B (“Avocado Property”) as surplus and authorized the Department of General Services (DGS) to dispose of the properties. On August 26, 2025 (14), the Board approved and adopted two Resolutions of Intention to Sell and Notice Inviting Bids (one for each property) authorizing the sale of the Boulevard and Avocado Properties through a public auction and sealed-bid process in accordance with Government Code Section 25520 et seq. (County Auction). Pursuant to the adopted Resolutions, the Board set the following minimum bids for the properties: $100,000 for the Boulevard Property and $905,000 for the Avocado Property.
On September 17, 2025, a County Auction was held in accordance with Government Code Section 25539, where the Director, Department of General Services, or designee (Director) conducted the written bid openings, opened the floor for oral bids, and selected the highest responsible bidder. No written bids were received for the Boulevard Bid property; however, one oral bid in the amount of $100,000 was received from San-Ed Properties, LLC (Boulevard Buyer) for the Boulevard Property; no other oral bids were received. In total, three written bids were received for the Avocado Property. All three bidders took the opportunity to offer oral bids above their written bid amount, and the oral bidding proceeded thereafter until a final bid was received from Ahd Haddan in the amount of $2,575,000. Following the County Auction, Ahd Haddan rescinded his offer. Staff engaged with the next highest bidder, who did not respond by the given deadline. Staff then reached out to Highland Avenue Property Investments, LLC (Avocado Buyer) as third highest bidder, who confirmed his interest in purchasing the Avocado Property for $1,600,000.
As required by California Government Code Section 54233, at the time of sale, the County will record a restrictive covenant against Boulevard Property and Avocado Property that will state if 10 or more residential units are developed on the property then at least 15% of the total units shall be affordable housing. The State Department of Housing and Community Development will be provided with a recorded copy of the respective covenants pursuant to Surplus Land Act (SLA) Guidelines, Section 400(b)(1).
Today’s request is for Board to find that the sale of these two properties is categorically exempt from CEQA; adopt resolutions authorizing the transfer and sale of Avocado Property and Boulevard Property; authorize execution of the Grant Deeds transferring ownership of Avocado Property and Boulevard Property to the Avocado Buyer and Boulevard Buyer (respectively) upon the close of escrow; authorize all actions necessary to complete the sale of the Boulevard Property and Avocado Property; and authorize the Auditor & Controller to deposit sale proceeds in each respective fund.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Find, in accordance with Section 15312 of the California Environmental Quality Act (CEQA) Guidelines, that the sale of Real Property Number 2017-0128-A and 2021-0200-B are categorically exempt from CEQA as it is a sale of surplus government property (Attachments C and D, Notice of Exemptions).
2. Approve and adopt the Resolution entitled RESOLUTION TO ACCEPT THE HIGHEST BID AND EXECUTE AND RECORD THE DEED CONVEYING REAL PROPERTY NUMBER 2017-0128-A TO SAN-ED PROPERTIES, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND DEPOSIT FUNDS (Attachment E, Boulevard Resolution).
3. Approve and adopt the Resolution entitled RESOLUTION TO ACCEPT THE HIGHEST BID AND EXECUTE AND RECORD THE DEED CONVEYING REAL PROPERTY NUMBER 2021-0200-B TO HIGHLAND AVENUE PROPERTY INVESTMENTS, LLC, AND DEPOSIT FUNDS (Attachment F, Avocado Resolution).
4. Authorize the Chair of the Board to execute the Grant Deed transferring ownership of Real Property number 2017-0128-A (Boulevard Property) to San-Ed Properties, LLC, which shall be recorded upon the close of escrow.
5. Authorize the Chair of the Board to execute the Grant Deed transferring ownership of Real Property number 2021-0200-B (Avocado Property) to Highland Avenue Property Investments, LLC, which shall be recorded upon the close of escrow.
6. Approve and authorize the Director to perform all necessary actions to complete the sale of Boulevard Property 2017-0128-A to San-Ed Properties, LLC for a sales price of $100,000, including the execution of the Purchase and Sale Agreement, escrow instructions, Restrictive Covenant required by California Surplus Land Act, and any other related documents.
7. Approve and authorize the Director to perform all necessary actions to complete the sale of Avocado Property 2021-0200-B to Highland Avenue Property Investments, LLC for a sale price of $1,600,000, including the execution of the Purchase and Sale Agreement, escrow instructions, Restrictive Covenant required by California Surplus Land Act, and any other related documents.
8. Authorize the Auditor and Controller to deposit all proceeds resulting from the sale of the Boulevard Property and Avocado Property into the Department of Public Works Inactive Waste Site Management Fund 12650 and Department of Public Works Road Fund 11100, respectively.
EQUITY IMPACT STATEMENT
The revenue from the sales of the Boulevard Property and the Avocado Property can be used for the development, improvement, operation, and/or maintenance of Department of Public Works Roads and Closed Landfill projects in the County, which will benefit the community. The sale process was publicly advertised and will promote economic growth opportunities for the community and region.
SUSTAINABILITY IMPACT STATEMENT
Implementing effective sustainability objectives is crucial to advance and ensure safe and healthy communities while contributing to the overall success of the region. The approval of the sales supports the County’s Strategic Initiative of Sustainability to align its available resources with services to maintain fiscal stability and ensure long-term regional solvency.
FISCAL IMPACT
Funds for this request are included in the Fiscal Year (FY) 2025-26 Operational Plan in the Department of General Services (DGS). If approved, this request will result in DGS staff costs and revenue of approximately $60,000 in FY 2025-26. The funding sources are State Highway User Tax Account ($30,000) and Environmental Trust Fund ($30,000).
A total of $1,005,000 in projected funds from the property sales are included in the FY 2025-26 Operational Plan in the Department of Public Works (DPW). If both property sales are completed, this request is now expected to generate a minimum of $1,700,000 in revenue for FY 2025-26. This reflects an increase of $695,000 over the previously projected funds. Net proceeds of $100,000 from the Boulevard Property sale will be deposited to the Department of Public Works Inactive Waste Site Management Fund 12650, while $1,600,000 from the Avocado Property sale will be deposited to the Department of Public Works Road Fund 11100.
There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
If the requested actions are approved, it is expected that the buyers will develop the properties consistent with zoning and Restrictive Covenant terms. Their development decisions and activities will create construction jobs, generate demand for additional services and materials during construction, and contribute to the local economy.
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
County-Owned Property in Boulevard
The County of San Diego (County) owns Assessor’s Parcel Number 612-091-17-00 also identified as Real Property Number 2017-0128-A (Boulevard Property) containing approximately 4.4 acres of vacant land at Old Highway 80 in the unincorporated community of Boulevard, California. The location of the Boulevard Property is shown in Attachment A and is zoned S-92 (General Rural). The property was formerly operated by the County Department of Public Works as the Boulevard Bin Transfer Station and consists of a fee booth, a storage shed, a fire suppression storage tank, and a water supply storage tank. The facility was leased to Allied Waste through April 2009 after the County ceased all daily transfer station operations in 1997. The facility has remained unused since 2009. For these reasons, the Boulevard Property became excess and considered no longer necessary for County purposes.
On May 30, 2017, County departments and elected officials were notified of the Boulevard Property’s availability, but no interest was expressed. Subsequently, on September 26, 2017 (06), Resolution Number 25-87 declared the Boulevard Property surplus and Notices of Availability were sent on October 12, 2017 and December 20, 2024 as required by State of California Surplus Land Act (SLA) Government Code Section 54220 et seq. During the 60-day notice period, no responses were received. On May 22, 2025, the State Department of Housing and Community Development (HCD) issued a Findings Letter notifying the County that it could proceed with selling the Boulevard Property at a public auction.
County-Owned Property in Valle de Oro
The County owns Assessor’s Parcel Number 502-150-44-00 also identified as Real Property Number 2021-0200-B (Avocado Property) consisting of 0.67 acres of vacant land near Avocado Boulevard and State Route 94 in the unincorporated community of Valle de Oro, California. The location of Avocado Property is shown in Attachment B and is zoned S-94 (Transportation and Utility Corridor). This parcel is a former site of a Caltrans Park-and-Ride facility. The right-of-way was originally acquired by the County through a fee relinquishment in the document entitled Relinquishment of Highway Right of Way in the County of San Diego, Road 11-SD-94-10.8-13.6, Request No. 19022, recorded in the Office of the County Recorder of San Diego County, on August 28, 1970, as File/Page No. 156376, of Official Records. The right-of-way was leased back to the State of California Department of Transportation for construction and use as a Park-and-Ride facility until August 12, 2021. On February 28, 2024 (2), the Board vacated the right-of-way and declared the property surplus to County needs.
On July 19, 2023, the County issued a Notice of Availability to County departments and elected officials, and no interest was received. On August 29, 2024, the County issued a Notice of Availability to all local public agencies and affordable housing sponsors as required by SLA. Three responses were received during the notice period. However, 90-day good-faith negotiations were terminated after receiving no response following County’s request for additional information. On July 30, 2025, the State HCD issued a Findings Letter notifying the County that it could proceed with selling the Avocado Property at a public auction
Sale Execution for Both Properties
On August 26, 2025 (14), the Board approved and adopted a Resolution of Intention to Sell Real Property Number 2017-0128-A and Resolution of Intention to Sell Real Property Number 2021-0200-B by directing the Director of Department of General Services, or designee (Director) to dispose of the Boulevard Property through public auction and competitive sealed-bid process. Pursuant to the adopted Resolutions, the Board set the following minimum bids for the properties: $100,000 for the Boulevard Property and $905,000 for the Avocado Property. The Director was authorized to conduct a bid opening on September 17, 2025, and select the highest bidder in accordance with Government Code Section 25520 et seq. (County Auction). On November 3, 2025 the Avocado highest bidder rescinded their bid. On November 5, 2025 the second highest bidder did not timely respond to the County as to whether they would like to proceed with purchasing the Avocado Property and was informed that County is moving on to the next highest bidder. On November 5, 2025, the final bidder responded to the County and confirmed that they would like to proceed with the purchase of the Avocado Property. The initial oral bids and highest written bids received at the County Auction were as follows:
|
Boulevard Bidder(s) Name |
Written Bid |
Highest Oral Bid |
|
1. |
San-Ed Properties, LLC (Steve South) |
N/A |
$100,000 |
|
Avocado Bidder(s) Name |
Written Bid |
Highest Oral Bid |
|
1. |
Ahd Haddad |
$907,000 |
$2,575,000 |
|
2. |
Highland Avenue Property Investments, LLC (Joseph Brikho) |
$950,000 |
$1,600,000 |
|
3. |
Talal Sheena |
$1,250,000 |
$2,550,000 |
The Boulevard Property sale revenue will be deposited in the Department Inactive Waste Site Management Fund 12650 and the sale revenue for Avocado Property will be deposited in the Department of Public Works Road Fund 11100.
If the Board takes the recommended actions, each successful bidder must execute a Purchase and Sale Agreement within five business days of Board approval. At the opening of escrow, the County shall deposit into escrow the Boulevard Buyer’s deposit of $3,000 and the Avocado Buyer’s deposit of $10,000. Each deposit will be applied toward the purchase price of the respective property at the closing of escrow. If the sale is cancelled due to a buyer’s default, the deposit will be retained by the County as liquidated damages. In addition to the $10,000 deposited by the County for the Avocado Property escrow, Highland Avenue Property Investments, LLC will deposit an additional amount, so the total escrow deposit is 3% of the final sale price.
The closing date will occur no later than 180 days after escrows are opened, unless escrow is extended at the discretion of the Director. Additionally, the buyers may exercise up to three 30-day extension options. However, the deposit and purchase price shall be increased by an amount equal to one percent of the purchase price immediately preceding each applicable election to extend the closing date.
As required by Section 54233 of the California Government Code, at the time of sale, the County will record a Restrictive Covenant against the Boulevard Property and Avocado Property. The Restrictive Covenant will state that if ten or more residential units are developed on the property then at least 15% of the total units shall be rented or sold at affordable housing cost or affordable rent to lower income households as such terms are defined in Section 54233.
ENVIRONMENTAL STATEMENT
The proposed sale of Real Property Number 2017-0128-A and 2021-0200-B are categorically exempt from environmental review pursuant to Section 15312 of the California Environmental Quality Act (CEQA) Guidelines, as it involves the sale of surplus government property that is not located in an area of statewide, regional, or areawide concern identified in Section 15206(b)(4) of the CEQA Guidelines, does not have significant values for wildlife habitat or other environmental purposes and would qualify for a categorical exemption pursuant to Section 15332, Infill Development Projects. Further, no exceptions listed in CEQA Guidelines Section 15300.2 apply. See Attachments C and D for the Notices of Exemption.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
The proposed actions support the Sustainability Strategic Initiative in the County of San Diego’s (County’s) 2025-2030 Strategic Plan by aligning services to available resources to maintain fiscal stability by promoting development and economic vitality while helping the County generate revenue, including increased tax revenue, through the sales of the County’s Former Boulevard Bin Transfer Station and the Former Avocado Park-and-Ride, that are not needed for County purposes.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
Attachment A - Boulevard Map
Attachment B - Avocado Map
Attachment C - Boulevard Notice of Exemption
Attachment D - Avocado Notice of Exemption
Attachment E - Boulevard Resolution
Attachment F - Avocado Resolution