For City Council Meeting [December 14, 2021]
TO: Honorable Mayor and City Council
FROM: Marcus Fuller, City Manager
Title
Request City Council to: (1) Adopt Resolution No. 7816 Amending the 2021-2022 Fiscal Year Budget Associated with the Purchase and Sale of City Properties; and (2) Authorize the City Manager to Execute All Documents.
(ACTION)
Body
BACKGROUND:
In the past year, the City Council approved the purchase and sale of City properties for future development.
Specifically, on November 11, 2020, the City Council by action in closed session and reported out on the same date approved the sale of 13.2 acres of vacant land owned by the City located along Casmalia Street west of Alder Avenue to The Distributor's Inc. at the purchase price of $3,600,000.
Also, on April 27, 2021, the City Council provided direction in closed session on the purchase of commercial property located directly north of the Metrolink station at 241 S. Palm Ave. and 239-249 S. Orange Ave. at the purchase price of $2,000,000. The agreement was later executed and the action reported out on October 26, 2021.
ANALYSIS/DISCUSSION:
The adopted Fiscal Year 2021/2022 Budget did not budget estimated revenues from the sale of real property by the City, nor the estimated expenditures due to the purchase of real property.by the City. Revenue and expenditures from the purchase and sale of real property are realized at the time escrow closes.
The transactions related to these two real property items are scheduled to close, and the Fiscal Year 2021/2022 Budget will be amended to reflect the revenue and expenditures related thereto.
ENVIRONMENTAL IMPACT:
The request is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to...
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