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