200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5162
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: NOVEMBER 1, 2022
FROM: ECONOMIC DEVELOPMENT
SUBJECT: PURCHASE AND SALE AGREEMENT FOR THE PROPERTY AT 1314 S. SANDERSON AVENUE AND 1370 S. SANDERSON
AVENUE
ATTACHMENT (Y/N): YES ITEM # 15
RECOMMENDATION:
That the City Council, following a public hearing, by Resolution, approve a Purchase and Sale Agreement with Powerline Properties, LLC, in the amount of $4,975,219, and authorize the Director of Economic Development to finalize, execute, and implement such purchase and sale agreement, for the City owned property located at 1314 and 1370 S. Sanderson Avenue.
BACKGROUND:
On August 15, 2017, the City Council approved a Lease Agreement with Option to Purchase between the City of Anaheim (City) and Powerline Properties, LLC for approximately 6.5 acres of City owned property located at 1314 and 1370 S. Sanderson Avenue (Subject Property). A site map depicting the property is attached (Attachment 3). The property was previously improved and operated as an equestrian center named Rancho Del Rio Stables. Powerline Properties, LLC purchased the equestrian business from the prior owner, Robert Jones, and obtained approval to lease the property from the City. Equestrian activity at the center had been reduced over the years, and in 2022 the property ceased to operate as an equestrian center and feed store.
The lease agreement includes an option to purchase the site at fair market value.
Powerline Properties, LLC would like to exercise their purchase option under the lease agreement. The City commissioned an appraisal of the subject property by an independent Member of the Appraisal Institute (MAI) Appraiser. A Purchase Price of $4,975,219 (fair market value) has been established. The fair market value includes a deduction of $319,192 for an irrevocable easement that will be reserved by the City, for approximately 14,500 square feet that will be used for a 15’ bike path along the southern end of the entire property. The bicycle path is part of a regional Bicycle Master Plan.
Powerline Properties, LLC is an affiliate of Anaheim Arena Management, LLC.
Anaheim Arena Management, LLC has recently obtained City approval for the OC Vibe Project, a large scale mixed used development focused on retail, hospitality, and entertainment. The subject property will be improved as a parking lot and utilized as 1312-1370 Sanderson
November 1, 2022
employee parking for OC Vibe employees. The change in use will require review and approval by the City under the normal entitlement process, which will include review under the California Environmental Quality Act (CEQA).
A Summary Report pursuant to Sections 52200-52201 of the California Government Code, pertaining to the Purchase and Sale Agreement for the Subject Property, has been prepared by the City’s Economic Advisor, Keyser Marston and Associates. The report is attached (Attachment 4) and was made available, along with the Purchase and Sale Agreement (Attachment 2) for public review in accordance with state law.
IMPACT ON BUDGET:
The sales proceeds of $4,975,219, less the City’s share of closing costs, will be deposited in the City’s General Fund.
Respectfully submitted,
Sergio M. Ramirez
Economic Development Director
Attachments:
1. Resolution
2. Purchase and Sale Agreement
3. Site Map
4. Summary Report (Gov. Code 52201)