Giving its side on the prospective sale of the Pacific Beach Reservoir property, which some residents near Kate Sessions Park are concerned about, the City of San Diego said the property has been determined to be expendable.
“The Pacific Beach Reservoir property was removed from service nearly 30 years ago,” said Arian Collins, the city’s supervising public information officer. “The property has been determined to be excess to the city Public Utilities Department’s needs and no other city department has a use for the property.”
Located on Los Altos Road, the Pacific Beach Reservoir was constructed in 1908, and served as part of the City of San Diego’s water system for approximately 80 years. The reservoir was taken out of service due to system upgrades and new technology.
In 2017, the site was designated as surplus land by the city. The 4.76-acre site is zoned RS-1-4 for residential development.
Collins said the commercial real estate firm Jones Lang LaSalle was selected to market the property on behalf of the City of San Diego. 
“The property is being advertised on the open market,” said Collins. “It is being marketed using methods commonly employed by commercial real estate brokers.”
Regarding the reservoir property’s terms of sale, Collins said, “Terms will be negotiated in a purchase and sale agreement. The city is not marketing the property for a particular use.”
Replying to some neighbors contention that the city is reneging on a previous pledge to not sell this reservoir property, Collins replied,”The city’s Real Estate Assets Department is not aware of any pledge not to sell the property.”
Regarding another neighbor allegation that the reservoir property sale is going through without proper transparency, and that neighbors haven’t been properly noticed, Collins said, “The city is not legally required to provide notice to neighbors prior to advertising the property on the open market for sale.
“There is a ‘for sale’ sign on the property. Any sale of the property must be authorized by a resolution approved by the San Diego City Council, meetings of which are noticed and open to the public.”
The site in North PB is one of the beach community’s last remaining developable open spaces offering views to the west. The property is expected to bring a bid between “$5 million and $10 million” and could be developed into as many as a dozen houses. The city is expected to remove the cement reservoir tank, fill it in, and level the area.
Once a buyer is selected, the buyer and the city will enter into a purchase and sale agreement, contingent on City Council authorization, and buyers will be given an opportunity to perform due diligence. After the buyer completes their due diligence, the proposed sale will be presented at a City Council’s Smart Growth and Land Use Committee meeting and then to the full City Council for authorization. City properties are not sold unless approved by the City Council. The action that will be brought to the City Council will be to authorize the sale of the property.
Factors considered when determining sale candidates for city properties are:
• Relief of potential liabilities and/or cost of property maintenance;
• Site activation for the benefit of the community; 
• Property tax increment created by returning the property to the tax rolls;
• Stimulation of the economy by providing opportunities for private sector investment; and
• Generation of revenue.
Prior to disposition of city-owned property, local public agencies, housing sponsors (upon written request), city, county and regional park and recreation departments, regional park authority, the State Resources Agency, and school districts are notified of potential sales of surplus land, in accordance with California law.
All interested buyers should submit their offers by Sept. 12, to Jones Lang LaSalle. Depending on the offers received, and to clarify any ambiguities in the offers, it is anticipated that best and final offers will be due by Sept. 19.