The warehouse at 390 Virginia Street, located near Cedar Street, has been the site of a long-neglected homeless encampment and a suspicious death in April. MPG file photo

GRIDLEY, CA (MPG) - The City of Gridley filed a court petition last week seeking oversight of the warehouse at 390 Virginia Street, one of two industrial properties owned by the same party that have long drawn complaints for blight, safety hazards and unauthorized encampments.

On Oct. 17, City Administrator Elisa Arteaga confirmed the filing, stating that code enforcement posted notices on the property that day. The action followed the owner’s failure to meet the terms of a compliance agreement that expired Sept. 30 and to resolve violations listed in the city’s notice to abate. No documentation of substantial compliance was received by the Oct. 10 deadline, Arteaga said.

“The city takes these health and safety violations seriously,” Arteaga said. “The city council has expressed concern and does not want to prolong the abatement. Therefore, they have moved to continue with the receivership.”

The warehouse at 390 Virginia Street, located near Cedar Street, has been the site of a long-neglected homeless encampment and a suspicious death in April, which remains under investigation. The property has been fenced, and demolition permits are active through March 2026, but city officials said those steps did not satisfy the full scope of violations.

“These properties have been a concern for a long time,” Mayor Mike Farr said at the Oct. 6 council meeting. “We appreciate the steps taken so far, but we need to see results.”

At that same meeting, City Attorney Tony Galyean said receivership would allow the court to appoint a neutral third party to take control of the property, correct violations and prepare it for sale. The city is working with Jones & Mayer, the city’s contracted municipal law firm. Galyean said the industrial real estate market has shown signs of recovery and could attract interest once the property is stabilized.

Galyean also updated officials on the city’s first receivership case involving 110 Virginia Street, a fire-damaged industrial site owned by the same party. He said the receiver has fenced and partially cleaned the property but has not received any purchase offers. A broker price opinion suggested that demolition costs may exceed the site’s market value. As of the latest update, the receiver may revisit pricing to help generate buyer interest.

Farr has directed staff to maintain pressure on the property owner and receiver as both cases move forward.