For City Council Meeting [August 13, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Robb R. Steel, Assistant CA/Development Services Director
Title
Request City Council to Approve an Exclusive Right to Negotiate an Agreement with Orbis Real Estate Partners for the Purchase of Approximately 2.84 Acres of Rialto Successor Agency Property and 0.29 acres of City owned Property at the intersection of Renaissance Parkway and Laurel Avenue.
Body
BACKGROUND:
On May 23, 2006, the former Redevelopment Agency acquired a 2.84-acre parcel (APN 0240-211-21) from the GPN Partnership for the purchase price of $1,051,535 (the "RSA Parcel"). The City designated the vacant site as "City Disposition" in the Long Range Property Management Plan, allowing the City the option to acquire the parcel for development purposes subject to the negotiation of a compensation agreement with affected taxing entities.
On January 25, 2016, the City acquired the 0.29-acre vacant parcel via a tax sale for $2,000 (the "City Parcel"). The parcel appears to be the 1/2 width of vacated Laurel Avenue north of Renaissance Parkway.
The parcel map showing the RSA Parcel and the City Parcel is attached hereto as Exhibit A.
The City received an unsolicited offer dated May 24, 2019 from Orbis Real Estate Partners to purchase the GPN Parcel from the Successor Agency (Exhibit B). The proposer offered $2,000,000 for the 2.84-acre parcel, or $16.17 per square foot. Orbis has also entered into a purchase agreement with the adjoining owner (Gary Dou) for 3.30 acres. The total assembled site would approximate 6.40 acres, and the developer proposes to construct a 152,000 square foot industrial building.
ANALYSIS/DISCUSSION:
Orbis Real Estate Partners ("Developer") is a fully integrated real estate investment and development firm that pursues investments on the west coast (see Developer's Statement of Qualifications attached as Exhibit C). Orbis recently acquired...
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