Logo courtesy of the City of Gridley

OROVILLE, CA (MPG) - The Board of Supervisors on June 23 approved a series of compensation agreements with the City of Gridley, clearing the way for the city to retain several former redevelopment agency parcels for future municipal development.

County officials said the agreements are required under California’s redevelopment dissolution law and ensure the county and other taxing entities receive a pro‑rata share of any future sale proceeds if the city sells the properties instead of developing them for government use.

The City of Gridley serves as the Successor Agency to the former Gridley Redevelopment Agency. The California Department of Finance previously approved the city’s Long‑Range Property Management Plan, which calls for transferring certain redevelopment parcels to the city for municipal facilities. Approval of the plan required creation of a new parcel map and compensation agreements with affected taxing entities, including the county, CSA 34 and CSA 37. California’s redevelopment agencies were dissolved in 2012 under legislation signed by Gov. Jerry Brown, shifting former agency assets to local oversight boards and requiring successor agencies to dispose of property under state rules.

The county approved agreements covering Parcels 6, 7 and 9 in the Gridley Industrial Park, which the city intends to develop as a recreational sports complex and a corporate yard. A deed restriction recorded in 2024 limits Parcel 6 to sports‑complex use under state parks grant requirements. The agreements state that if the city sells any of the parcels for more than $0, the county and other taxing entities will receive their proportional share of net proceeds.

Supervisors also approved compensation agreements tied to the city’s 2024 sale of Parcel 8, a former redevelopment property in the Industrial Park that sold for $307,620. The Auditor‑Controller calculated the pro‑rata shares: $55,863 for the county, $3,503 for CSA 34 and $4,645 for CSA 37. As the Gridley Herald previously reported, Gridley Unified School District has expressed interest in Parcel 9 or another available parcel within the park for a storage facility.

The fiscal impact to the county is $55,863 to the general fund. County officials said there are no personnel impacts.

The Board approved six compensation agreements on its consent agenda.