Case Study: Driving Operational Continuity in Transportation

Introduction

Whether breaking ground on the development of new public infrastructure projects, or scaling existing properties to meet shifting demands, maintaining compliance with regulatory changes and optimizing land use is crucial. A large Southern California transportation agency faced significant challenges in navigating the Surplus Land Act (SLA) process. DEODATE stepped in to provide strategic advisement and program management, ensuring smooth operations and continued compliance.

The transportation agency is a sole-purpose entity and has been working with DEODATE since 2013. As the agency’s Real Estate Program Manager, DEODATE has been instrumental in maintaining compliance, and managing the agency’s real estate portfolio amidst evolving regulations.

Challenge

The primary challenge was navigating the relatively new and procedurally complex Surplus Land Act process, which allows agencies to sell excess public land. Our client required expertise in managing this process to avoid potential financial loss and operational disruptions.

Solution

DEODATE provided strategic advisement and SLA program management, leading all negotiations and communications with developers as directed by the California Housing and Community Development (HCD) department. Our approach included:

• Strategic program management: Ensuring all procedural steps were meticulously followed to comply with the SLA requirements.

• Effective communication: Facilitating transparent and effective communication between our client, developers, and the HCD department, ensuring all stakeholders were well-informed and aligned.

• Detailed tracking and documentation: Implementing a robust tracking system to document all communications and ensure compliance. This included maintaining comprehensive records of all interactions, which were crucial for accountability and future reference.

• Proactive negotiation: Actively negotiating with developers to secure favorable terms that aligned with our client’s goals and regulatory requirements.

• Risk management: Identifying potential risks and developing strategies to mitigate them, ensuring that our client could navigate the SLA process smoothly.

Outcome

DEODATE successfully led a transparent, well-documented, and streamlined process, thoroughly communicating land availability to appropriate housing developers. This proactive approach resulted in:

• Approval for disposition: Our client achieved documented approval for land disposition on its first attempt within six months, a significant achievement given the complexity of the SLA process.

• Operational continuity: Ensured that our client could continue its operations without disruption, maintaining its strategic presence in key locations.

• Enhanced compliance: By implementing detailed tracking and documentation processes, our client improved its overall compliance posture, reducing the risk of future regulatory issues.

Next Steps

Following the successful navigation of the Surplus Land Act process, this Southern California transportation agency is now focused on marketing the property to a wider investor and owner-occupied commercial real estate community. DEODATE continues to act as the internal program manager for the agency, providing ongoing strategic advisement and support. 

Our current efforts include:

• Market expansion: Identifying and engaging with potential investors and commercial real estate owners to maximize the value of the property.

• Continued compliance management: Ensuring that the agency remains in compliance with all relevant regulations as it moves forward with its development plans.

• Strategic planning: Assisting the agency in developing long-term strategies for property use and development, aligning with broader transportation and infrastructure goals.

Conclusion

As land use policies continue to evolve, it is critical for public agencies to navigate regulatory landscapes proactively. DEODATE’s expertise in strategic advisement and program management ensures that clients can maintain operational continuity and compliance. 

We invite you to leverage our deep knowledge and long track record in managing complex real estate challenges. Contact us today to discuss how we can assist with your real estate needs.