The Fullerton City Council voted 4-1 on August 18 to direct city staff to investigate the potential leasing or selling of three city-owned parking lots in downtown for new housing developments. This initiative aims to advance the city's state-mandated housing goals and explore new revenue streams following recent budget adjustments.
Staff will prioritize a vacant section of the SOCO parking structure, located across from Heroes Bar & Grill, for potential development. Additionally, opportunities at the Fullerton Transit Center parking structure and a surface lot off Chapman Avenue, across from Bank of America, will be explored. Councilwoman Shana Charles noted this is "only a preliminary conversation on bringing housing to these locations," adding that it "might end up being something that also helps our financial situation."
These sites were identified through a consultant's study, funded by a $300,000 grant from the Southern California Association of Governments (SCAG) and the OC Council of Governments (OCCOG). Preliminary estimates by consultants suggest the SOCO site could accommodate approximately 60 housing units and 4,500 square feet of retail space. The Fullerton Transit Center site may yield around 100 housing units, while the Chapman Avenue lot could host about 105 units.
Consultants estimate that if all three sites are developed, the city could collect over $418,000 in building permit fees and nearly $3.2 million in park fees. Each development would also include a component of affordable housing. Steve Gunnells, Chief Economist for PlaceWorks, explained that 10% of units for very low-income residents "would work with developers’ financing" under state legislation used to increase density. For context, the Orange County median income for a four-person household is $136,600, with very low-income households making $84,600 annually.
The city is under pressure to meet state housing requirements, which mandate zoning for over 13,000 new homes by 2029, with nearly 5,200 designated for very low and low-income families. Since 2021, Fullerton has permitted approximately 1,300 homes toward this cycle.
Councilman Nick Dunlap cast the lone dissenting vote, raising concerns about the lack of prior community input on site selection and suggesting some locations might be more suitable for retail. He stated, "Sometimes we just kind of put the cart before the horse." Councilman Ahmad Zahra commented on the SOCO site's potential, suggesting it "could drive people to encourage them to walk along" and support other businesses.
The decision to explore these developments follows the city's recent adoption of a late budget, which involved slashing millions in spending across various departments and programs after failing to secure a sales tax measure. Staff will now proceed with exploring the leasing or selling options under state law and begin soliciting developers for these potential projects.
