GUSTINE — The Gustine City Council will discuss options Nov. 4 for a city-owned parcel that has drawn interest from a local business, but no final decision will be made at the meeting.

Depot Garage, located at the corner of Highway 33 and Fourth Avenue, has expressed interest in acquiring or leasing a portion of parcel 020-044-017, which also includes the Gustine Museum. The garage currently uses the western portion of the property adjacent to the alley as an extension of its workspace, accessing it through a rear door.

City staff say the parcel would need to be split before any sale could proceed, with the area of interest estimated to meet the minimum 2,500-square-foot lot size required for subdivision. Depot Garage owners have indicated a preference to purchase the land but are open to a 10-year lease.

The council has not formally considered a sale of the property in more than two decades, although Depot Garage has approached city managers about the possibility in recent years. The upcoming meeting will serve as a discussion item only, with staff seeking direction from the council.

Economic and Community Development Director Jami Westervelt noted that the city’s recent sale of a property at Highway 33 and Jensen Road offers insight into the process, though key differences exist. The Jensen parcel was larger, had highway frontage, and did not require a broker fee, unlike the current parcel.

Staff estimate that splitting the parcel and initiating required permits would cost at least $14,500, with minimum fees of $6,467. Given the smaller size and limited visibility of the property, the city anticipates lower development potential and sales revenue compared to the Jensen property.

If retained, the parcel carries minimal maintenance costs and could serve future city needs, such as museum expansion or storage. Leasing the space would generate consistent income with few expenses, while allowing the city to preserve long-term flexibility.

Any sale would require compliance with the Surplus Lands Act and a full public process. No community outreach has been conducted to date.

The item aligns with Goal 4 of the city’s strategic plan, which emphasizes financial and budget stability. Staff recommend the council consider a lease arrangement and provide direction on next steps.