For City Council Meeting [August 14, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
FROM: Robb R. Steel, Assistant CA/Development Services Director
Title
Request City Council Approve the Recording of the Substitution of Trustee and Full Reconveyance to release the Deed of Trust. Waive the City's Right of First Refusal to Purchase the Property situated at 130 S. Willow Avenue (known as APN 0130-211-36).
(ACTION)
Body
BACKGROUND
On July 21, 1987, the City and Geread McNearney entered into a Contract for Sale and Note ("Contract"), wherein the City sold a parcel of 7,500 square feet (known as APN 0130-211-36) situated at 130 S. Willow Avenue developed with the former McNearney Family Mortuary adjacent to the Public Works Department facility ("Parcel"). Article 5 of the Contract provided the City with a Right of First Refusal in case of a future sale (RFR) and the City provided a loan of $22,500 secured by a Deed of Trust ("Loan").
The former mortuary utilized the Parcel for parking in combination with a larger parcel of 0.57 acres including the vacant mortuary building (collectively known as the "Property"). The Contract (Exhibit A) and site map (Exhibit B) are both attached.
ANALYSIS/DISCUSSION:
SCI California Funeral Services ("SCI"), the Property owner, may have a buyer to acquire the Property. SCI submitted a letter (Exhibit C) asking the City whether it intends to exercise its option to purchase the Parcel pursuant the RFR. If the City passes on the option, SCI requests the City surrender the RFR to the specific purchaser.
SCI further requests the City release the Deed of Trust related to the City's Loan. The loan required sixty (60) monthly payments of $400.00 (including 10% interest per annum) commencing on September 1, 1987 and ending on August 1, 1992. The Finance Division and the Treasurer's Office cannot find evidence of an unpaid loan balance in the City's financial statements, sugg...
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