SF to sell city-possessed land utilized by the oil industry in Southern California

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The City is relied upon to bring on the sale to a close of 40 acres of land it possesses in Southern California that were utilized for oil drilling activities.

The Board of Supervisors Budget and Finance Committee voted a ballot Wednesday to support the details of the clearance of the 40-section of land bundle only west of Coalinga in Fresno County for $170,000.

The sale is just a little part of the estimated 1,500 sections of land of Southern California land talented to The City in 1941 from the Fuhrman Estate. Outside of the 40 sections of land, the rest of in Kern County.

San Francisco’s responsibility for land was to a great extent obscure until 2016, when then Supervisor John Avalos pointed out the property where the City is renting many Kern County sections of land to Chevron for oil drilling.

In 2016, Avalos passed a law called “Keep It in the Ground.” The law requires The City to never again permit extraction of oil, gas and minerals from the rented property and to make sense of another option.

That option is to sell off the land. All properties sold will have a deed limitation to avoid any investigation or extraction of minerals, oil or gas items.

The sale endorsed Wednesday by the board committee is the primary batch of land to push ahead. Both the Library Commission and the Recreation and Parks Commission recently affirmed of the deal. They should decide on the arrangement since under the particulars of the estate’s gift, every city office must get 50 percent of the incomes from the land. Both were accepting an offer in the oil incomes created by Chevron, which starting at July were assessed at $24,000 every month.

Under the restrictions of the deed, the library must utilize all returns from the land to purchase certain books or other media on explicit points and Rec and Park must utilize the financing on Golden Gate Park.

From the primary land sale, every division will get about $75,000 each.

The 40 sections of land have been rented since 1978 by Oil Well Service Co, which utilized the property for material stockpiling purposes. That rent was ended on Jan. 31.

The lease with Chevron on 800 acres of land terminates in Spring of 2020. Starting at July, city authorities said there were 82 working wells.

John Updike, senior project director with The City’s Real Estate Division, told the San Francisco Examiner Wednesday that exchanges are continuous with Chevron for a “exit strategy,” which incorporates tending to natural issues on the 800 acres.

For the staying 700-sections of land in Kern County not under rent, Updike said that they are “spread around the county” and “available for sale (individually or as a package) by Cushman-Wakefield’s central valley brokerage affiliate, Pacific Commercial Realty.”

Updike said The City has not gotten any “hard offers” yet, however has an objective of presenting deals for city endorsement before the finish of 2020.

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