AGENDA TITLE:
title
Consider Adopting a Resolution Ratifying Execution of Purchase and Sale Agreement with Farmers and Merchants Bank of Central California for City-Owned Real Property Located at 219 S. School Street in Conformance with Council Approved Terms and Authorizing Interim City Manager to Execute all Related Sale Documents (CM)end
MEETING DATE:
March 20, 2024
PREPARED BY:
Luis Aguilar, Economic Development Director
recommendation
RECOMMENDED ACTION:
Consider adopting a resolution ratifying execution of purchase and sale agreement with Farmers and Merchants Bank of Central California for city-owned real property located at 219 S. School Street in conformance with council approved terms and authorizing Interim City Manager to execute all related sale documents.end
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BACKGROUND INFORMATION:
Prior to disposing of surplus property, the Surplus Land Act (“SLA”), set forth in Government Code sections §54220-54234, requires public agencies to offer to sell or lease that property for specified uses including affordable housing. It also requires these agencies to declare the property as surplus land or exempt surplus land.
On November 17, 2021, the City Council adopted Resolution 2021-313, declaring City-owned real property located at 219 S. School Street (“City Property”) as surplus land and not necessary for City use. Furthermore, on June 21, 2023, the City Council adopted Resolution 2023-139, declaring the City Property as exempt surplus land supported by written findings and authorized the City Manager to dispose of the City Property to a contiguous owner.
On August 30, 2023, a letter of intent to sell the City Property was sent by the City to the contiguous property owners which included a minimum sale price of twenty-five thousand and no cents ($25,000.00), based on a 2021 appraisal of the City Property. This effort resulted in the receipt of two offers for the City Property.
City Council discussed the prospective sale of the City Property during the November 15, 2023 and December 6, 2023 closed sessions, and authorized the Interim City Manager to negotiate a purchase and sale agreement with Farmers and Merchants Bank of Central California based on the highest offer provided. As a result, the negotiated price for the property is fifty thousand and one U.S. dollars ($50,001.00), as shown in the attached Purchase and Sale Agreement.
STRATEGIC VISION:
1A. Downtown: Community and Economic Development.
FISCAL IMPACT:
The sale of the City Property will result in proceeds of fifty thousand and one U.S. dollars ($50,001.00) and will be deposited in the Water Fund as the City Property is an abandoned well site.
FUNDING AVAILABLE:
Not applicable.
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Luis Aguilar
Economic Development Director
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Andrew C. Keys
Interim City Manager