CC 2013-01-22_11.c. Process for Sale of City PropertiesMEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER jtJr
SUBJECT: CONSIDERATION OF PROCESS FOR SALE OF CITY PROPERTIES
ON OLD RANCH ROAD
DATE: JANUARY 22, 2013
RECOMMENDATION:
It is recommended the City Council: 1) approve the proposed process for sale of City
properties on Old Ranch Road; and 2) approve formation of an ad hoc selection
committee and appoint one representative of the City Council to participate on the
committee to make a recommendation on selection of a realtor to list the properties for
sale.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
It is estimated that the sale of the properties will generate $640,000, which is based
upon an appraisal and discussions with a number of local realtors. There will be
measurable staff time required by the City Manager and Director of Community
Development in order to execute sale of the properties. However, selection of one
agent will help to reduce that workload and the revenue is necessary to address the
Police Department's facility needs, which is a priority in the Critical Needs Action
Plan.
BACKGROUND:
When the Recreation Center project was proposed at the City property on West
Branch Street and Old Ranch Road, it was determined that the east portion of the
property was not needed and could be better used to sell for residential use to
generate revenue for the project. The property narrows as it extends up Old Ranch
Road, and providing property for future residential development can create a buffer
between the existing residences and whatever project is constructed on the main
portion of the City parcel.
Sale of the property for private development required removal of a deed restriction by
the County, which previously required the property to be used for a public purpose.
This was accomplished in conjunction with rezoning of nearby County owned
property. The excess portion of the City property was subdivided into four residential
lots, each in the range of 1 0,000 square feet.
Item 11.c. - Page 1
CITY COUNCIL
CONSIDERATION OF PROCESS FOR SALE OF CITY PROPERTIES ON OLD
RANCH ROAD
JANUARY 22, 2013
PAGE2
Three of the four lots are now proposed instead to be sold to generate revenue for
the Police building project. This revenue was assumed in the funding plan for both
project alternatives approved by the City Council at the November 27, 2012 meeting.
At that meeting, the City Council also directed staff to prepare a recommended
process for sale of the three residential lots on Old Ranch Road.
ANALYSIS OF ISSUES:
Staff recommends proceeding with sale of the lots since the process may take
several months and the City is scheduled to proceed with one of the Police building
options in March. A report will first need to be approved by the Planning Commission
finding that the proposed sale is in conformance with the General Plan. The City can
then proceed to list the properties for sale.
A similar action was taken to generate revenue for development of Rancho Grande
Park. Those lots were sold through a public auction. Given the status of the real
estate market, staff believes listing the property with an agent would be more
successful in generating the highest offer.
Staff considered multiple realtor listings in order to allow all realtors in the community
to participate. However, after reviewing this alternative with potential realtors, it was
determined that an exclusive listing would likely be more successful in generating the
marketing effort necessary to obtain a maximum offer.
In order to provide a fair opportunity for all realtors to obtain the listing, it is
recommended that the selection be made through the following process:
• Solicit applications/proposals with information on experience, recommended
approach and commission;
• Interviews;
• Recommendation by a selection committee; and
• Approval by the City Council.
It is recommended that the selection committee include the following representation:
• One Council Member
• One Planning Commissioner
• Community Development Director
Additional properties owned by the Redevelopment Agency (RDA) will likely be sold
by the City as the Successor Agency to the Dissolved RDA as part of the process of
dissolving the RDA. If successful, staff will recommend the same process to the City
Council and Oversight Board and the results of the selection process can be used to
either select the same realtor or another from the process.
Item 11.c. - Page 2
CITY COUNCIL
CONSIDERATION OF PROCESS FOR SALE OF CITY PROPERTIES ON OLD
RANCH ROAD
JANUARY 22, 2013
PAGE3
ALTERNATIVES:
The following alternatives are presented for consideration:
• Approve staffs recommendations;
• Direct staff to instead sell the properties through listings with multiple realtors;
• Direct staff to instead sell the properties through a public auction;
• Request reconsideration of sale of the lots;
• Provide staff other direction.
ADVANTAGES:
Selection of a single realtor to list the residential lots has been determined to have
the best chance to obtain the highest offer. The proposed process will provide the
fairest opportunity for local realtors to obtain the listing, will result in more competitive
services and proposed commissions, and may help facilitate future sale of RDA
properties.
DISADVANTAGES:
The proposed process will be more labor intensive, lengthy and complicated in
determining the sale price than a public auction would provide. Multiple realtor
listings would better avoid concerns from local realtors that are not selected to
represent the City on the listing.
ENVIRONMENTAL REVIEW:
Environmental review was accomplished through the subdivision process.
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted in front of City Hall on Thursday, January 17, 2013 and on
the City's website on Friday, January 18, 2013.
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