Logo courtesy of the City of Gridley

GRIDLEY, CA (MPG) – After struggling to find buyers for two deteriorating properties on Virginia Street, the City of Gridley may consider purchasing them as a way to resolve longstanding code enforcement problems.

The possibility emerged during the Oct. 19 City Council meeting, when City Attorney Landon Little provided an update on the former grain dryer at 110 Virginia St. and a brick warehouse at 390 Virginia St. Both properties are under court-appointed receivership.

Councilmember Catalina Sanchez suggested the city explore acquiring the properties, provided the council first examines the legal, financial and environmental implications and invites public input.

“Perhaps the city should reconsider again, possible options in purchasing that property,” Sanchez said.

Little said purchasing either property is legally possible, although he initially had reservations about a city acquiring property after initiating receivership proceedings.

He explained that such an arrangement could create the appearance of using receivership as a backdoor form of eminent domain, but the city's extensive efforts to find private buyers provide a record supporting consideration of other options.

The former grain dryer has been under receivership since late 2024. Initially listed for $450,000 in February 2025, the property underwent several price reductions before attracting an offer of $205,000 in February 2026.

Little said the receiver is now moving to cancel that agreement because the prospective buyer has been unable to complete the purchase. An auction is among the alternatives being considered.

The brick warehouse entered receivership in 2026 and was listed for sale in May. One prospective buyer offered $120,000 but stopped responding after receiving an agreement outlining the improvements necessary to bring the property into compliance with city regulations.

Little said the school district also expressed interest in the warehouse, although no formal offer has been submitted.

Councilmembers questioned whether the requirements imposed on prospective buyers could be discouraging sales. Little explained that any purchaser would be responsible for correcting the conditions that led to receivership.

He acknowledged that the former dryer presents substantially greater challenges, particularly concerning the cost of rehabilitation.

Sanchez suggested exploring state grants through the Department of Toxic Substances Control that could help address potential contamination. The councilmember also raised the possibility of eventually using the properties for parks, recreation or commercial development.

However, city officials cautioned that purchasing either site could leave taxpayers responsible for substantial cleanup expenses. Any grant funding would need to address acquisition costs as well as rehabilitation.

Sanchez emphasized that residents have repeatedly expressed concerns about the properties' appearance and public safety.

The council took no formal action on purchasing either site. Further consideration would require examination of potential funding, environmental liabilities and community priorities, officials said.