Folsom has quietly snapped up two undeveloped parcels next to its longtime corporation yard, banking nearly two acres for future affordable housing as the city prepares to move the yard. The purchases give the city control of land close to services and the riverfront corridor that planners have been eyeing for redevelopment. Officials are pitching the move as strategic land banking at a time when buildable, well-located sites are getting harder to find.
As first reported by the Sacramento Business Journal, the City Council signed off on the deal in late June. State filings show the action, Resolution No. 11659, covers two Historic District parcels (APNs 070-0046-026 and 070-0042-002) acquired for $1.55 million and totaling about 1.92 acres. The CEQA notice lists the parcels and the Notice of Exemption for the acquisition.
Where the parcels sit and what the city plans
The two lots sit beside the existing corporation yard on Leidesdorff Street, the city’s operations base since the 1960s, and are contiguous with other properties the city has already flagged for potential redevelopment. The City Council has launched site planning for a new corporation yard south of Highway 50, approving a consultant contract and an environmental assessment to study both relocation and reuse options. City meeting materials state that the environmental document is expected to be circulated next summer as planners work through design and funding.
Why the city moved now
Folsom’s housing toolbox gives the city room to maneuver on land buys. Staff documents show the Folsom Housing Fund (Fund 238) has roughly $22 million available and has already been tapped for discounted land sales and loans to move affordable projects forward. City staff have been clear about using public land and housing funds to meet the city’s Regional Housing Need Allocation, and previous surplus land deals, including the 300 Persifer sale to Habitat for Humanity, set a precedent for discounted or strategic land dispositions. City staff reports spell out the funding sources and the Surplus Land Act requirements that shape those transactions.
Next steps and timeline
The city says these parcels will sit in reserve for future affordable housing opportunities while the corporation yard planning moves ahead. Any project on the newly acquired lots would still have to go through the Surplus Land Act process and CEQA review before a developer is chosen. The purchase itself was structured as a straightforward acquisition with an appropriation from Fund 238, and officials are expected to seek development proposals or partner with housing sponsors once environmental review and design work for the relocated yard are complete. The CEQA filing and council materials provide the official record of the purchase and the project schedule.
For nearby residents and housing advocates, the big dates to watch will be the release of the corporation yard environmental document next summer, any Surplus Land Act notices or solicitations to developers, and future Council votes to lock these parcels into a specific affordable housing project or land disposition plan. City staff plan to report back to the Council as each milestone comes up.
