For City Council Meeting [June 12, 2018]
TO: Honorable Mayor and City Council Members
APPROVAL: Robb R. Steel, Interim City Administrator
Title
Request the City Council 1) Approve extending the escrow period for six months to December 29, 2018 by depositing $115,000 non-refundable with the County of San Bernardino as Seller; 2) Adopt Resolution No. 7353 Appropriating $4,485,000 from General Fund Reserves to acquire the 13 acre Property at the southwest corner of Casmalia Avenue and Alder Avenue; and, 3) Authorize the City Administrator to execute appropriate documentation, in a form approved by the City Attorney, authorizing the extension.
(ACTION)
Body
BACKGROUND:
On June 13, 2017, the City Council approved an Amended and Restated Purchase and Sale Agreement ("Agreement") between the City and the County of San Bernardino for the purchase of County property (portions of APN 1119-241-01 and 02) consisting of approximately 13.22 acres situated south of Casmalia Avenue and west of Alder Avenue ("Property"). Attached is a map showing the subdivision of the site into two parcels (Exhibit A) and a copy of the Agreement (Exhibit B).
The Property consists of two parcels: a 6.00 acre parcel beginning at Alder Avenue and going westerly ("Six Acre Parcel") and a second parcel of 7.22 acres situated west of the Six Acre Parcel ("Seven Acre Parcel"). The City acquired an option to purchase the entire site or each parcel individually. The purchase price for each parcel is $2,300,000 or $4,600,000 total.
The City initially intended to convey the Six Acre Parcel to Arrow United for a heavy metal recycling facility and seek a buyer for the Seven Acre Parcel. On August 25, 2017, Arrow United terminated its option to purchase the Six Acre Parcel.
On September 11, 2017, the City Council directed staff to proceed with acquisition and replace Arrow United's escrow deposit of $115,000. On September 25, 2017, the due diligence period ended and escrow released the City's...
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