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CC 2014-11-25 _08.h. Resolution to Close Escrow - Old Ranch Rd lots MEMORANDUM TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICE SUBJECT: CONSIDERATION OF RESOLUTION TO CLOSE ESCROW ON SALE OF PARCELS 007-011-053 AND 007-011-054 ON OLD RANCH ROAD DATE: NOVEMBER 25, 2014 RECOMMENDATION: It is recommended the City Council adopt a Resolution authorizing the sale of Old Ranch Road Parcel 007-011-053 (Lot #2) for $278,000 and Parcel 007-011-054 (Lot #3) for $272,000 and authorizing the Acting City Manager to execute final sale documents. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The sale of the lots is intended to generate revenue for construction of the Police Station improvements. The net revenue anticipated from the sale is projected to be approximately $535,000, which will exceed the revenue estimates for the Police Station upgrade project when combined with the revenue from the sale of Lot #1. BACKGROUND: At the July 8, 2014 meeting, the City Council approved the Vacant Land Purchase Agreement and Joint Escrow Instructions for sale of Parcel 007-011-053 for $278,000 and Parcel 007-001-054 for $272,000, which are in escrow. ANALYSIS OF ISSUES: The title company has notified the City that they need a Resolution approving the sale and authorizing the City Manager to execute the sale documents. ALTERNATIVES: The following alternatives are presented for consideration:  Adopt the Resolution;  Direct staff to request a delay in closing escrow; or  Provide staff other direction. Item 8.h. - Page 1 CITY COUNCIL CONSIDERATION OF RESOLUTION TO CLOSE ESCROW ON SALE OF PARCELS 00=7•011-053 AND 0'07-011-054 ON OLD RANCH ROAD NOVEMBER 25, 2014 PAGE 2of2 ADVANTAGES: Approval of the sale will generate important revenue for the Police Station upgrade project. Custom homes are proposed on the lots, which will provide increased property taxes, meet housing needs,. and be a valuable addition to the community and neighborhood. DISADVANTAGES: No disadvantages have been identified. 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, November 20, 2014 and on the City's website on Friday, November 21, 2014. No comments were received. Item 8.h. - Page 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE SALE OF PARCELS 007-011-053 AND 007-011-054 ON OLD RANCH ROAD WHEREAS, a portion of property owned by the City on West Branch Street and designated for a proposed Recreation Center project was deemed unnecessary for the Recreation Center project; and WHEREAS, the portion of property, located on Old Ranch Road, was subdivided into four lots; and WHEREAS; the City Council has deemed it in the best interest of the City to sell three of the four lots to generate revenue for the Police Station upgrade project; and WHEREAS, at the July 8, 2014 meeting, the City Council approved the Vacant Land Purchase Agreement and Joint Escrow Instructions for sale of Parcel 007-011-053 for $278,000 (also referred to as "Lot 2") and Parcel 007-011-054 (also referred to as "Lot 3") for $272,000, which are both currently in escrow; and WHEREAS, a formal resolution approving the sale and designating the individual responsible for executing documents is necessary to complete the transaction. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande approves the sale of Parcel 007-011-053 for $278,000 to Clarence Cabreros and the sale of Parcel 007-011-054 for $272,000 to CCT Ventures, Inc. and authorizes the City Manager to execute final sale documents. On motion of Council Member , seconded by Council Member and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this __ day of _____ , 2014. Item 8.h. - Page 3 RESOLUTION NO. PAGE 2 ___________________________________ TONY FERRARA, MAYOR ATTEST: ___ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: ___________________________________ ACTING CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Item 8.h. - Page 4