Santa Rosa plans to redevelop or sell two city-owned properties as it seeks to streamline its sprawling property portfolio.

City officials hope the redevelopment of the old Westamerica Bank building on First Street near City Hall will spur economic development downtown.

They will also try to turn a vacant lot on Franz Kafka Avenue in the city’s southeast into housing.

The city owns about 1,400 properties that have been cataloged to determine which ones could be better used or redeveloped, said Jill Scott, the city’s property manager.

Staff are analyzing whether there is an operational use for the property, when and how it was acquired, whether it was deeded for a specific use such as a park and whether it is suitable for housing, she said.

Scott said the properties on First Street and Franz Kafka Avenue are no longer needed for city use and are eligible to be declared surplus.

The municipal council approved the appointment on Tuesday.

Santa Rosa bought the downtown Westamerica Bank property across from City Hall in 2009 for $4.1 million as it sought to redevelop its 6-acre campus.

The city intended to convert the three-story, 15,400-square-foot building into offices and move in staff who work from leased space scattered throughout the city, The Press Democrat reported then.

Plans called for the building and an adjacent building to eventually be demolished to make way for a new community campus. Those plans have disappeared amid skyrocketing costs and efforts by the city to instead use its downtown properties for housing.

The building was built in 1972 and has been mostly empty for 15 years. It needs extensive repairs and is no longer suitable for city offices because of the necessary upgrades, Scott said.

Scott said because of the lot size, a little less than half an acre, the property is exempt from state law requiring it to first be made available for affordable housing.

The exemption will allow the city to explore opportunities to pursue economic development, although other uses have not been determined.

“While we typically prioritize housing on surplus properties, the smaller size of this lot provides a unique opportunity to consider a broader range of uses,” Scott said by email Wednesday. “We intend to carefully analyze these opportunities and remain open to exploring ideas or proposals that may arise.”

The parcels that make up the property at 2610 Franz Kafka Ave., just south of Kawana Springs Road, were donated to the city in the 1990s.

The site was earmarked for a new fire station to serve the growing neighborhoods east of Petaluma Hill Road along the foothills of Taylor Mountain.

Scott said fire department studies determined the location is no longer suitable due to longer call response times.

Staff recommended selling the 0.6-acre property and using the proceeds from the sale to acquire land for or develop a station elsewhere.

Scott said the city will evaluate the property and issue a notice of availability to about 200 affordable housing sponsors registered with the state housing department. Interested developers have 60 days to respond.

The proposals will be reviewed to comply with the Surplus Land Act and staff will have 90 days to negotiate. A quarter of all proposed units must be affordable according to state requirements.

If no one answers or the city cannot agree with a developer, the city can sell or lease the property.

The two properties are the latest in the city’s portfolio to be unloaded as the city tries to cut back on maintenance and meet housing and economic development needs.

The full council approved in December 2022 to appoint parking garage on Third Street just east of Old Courthouse Square and the former White House Department Store at Third and E streets as surplus land and called developers who could turn the lots into housing.

Negotiations with the selected developers are continuing, and Scott said she expects to take an agreement to the council for approval next year.

The city recently proposed selling 30 properties, mostly smaller rights-of-way and land acquired for the widening and reconstruction of Stony Point Road. These properties are on the market.

You can reach staff writer Paulina Pineda at 707-521-5268 or [email protected]. On X (Twitter) @paulinapineda22.