201 S. Anaheim Blvd.
Suite #1003
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4630
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JULY 23, 2024
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVAL OF A PURCHASE AND SALE AGREEMENT TO
ACQUIRE THE KETTLE MOTOR HOTEL LOCATED AT 1760 W.
LINCOLN AVENUE
ATTACHMENT (Y/N): YES ITEM # 08
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council by Resolution, approve the acquisition of the Kettle Motor Hotel located at 1760 W. Lincoln Avenue, in the amount of $3,915,000, approving an Agreement for Sale of Property and Joint Escrow Instructions by and between the City of Anaheim and Kali Investment, Inc., a California Corporation, substantially in the form submitted herewith, for the purchase of the Kettle Motor Hotel, in the amount of $3,915,000; authorize the Director of Housing and Community Development, or her designee, to execute and administer the Agreement on behalf of the City of Anaheim; and increase the FY 2024/25 Housing and Community Development Department’s budget by $3,915,000.
DISCUSSION:
The City of Anaheim (City) continues to pursue opportunities to strategically acquire properties across the City. On February 21, 2024, the City extended an offer to purchase the Kettle Motor Hotel property (Site) from its owner, Kali Investments, Inc. (Owner), via a Letter of Intent (LOI) based on an approved appraisal prepared by a professional MAI appraiser. The Site, located in Council District 2, is an existing 27-key motel strategically situated near various community amenities, such as restaurants, shopping centers, schools, parks, and efficient public transportation services.
On June 6, 2024, the Owner accepted the price and terms outlined in the LOI. The City subsequently initiated the preparation of an Agreement for Sale of Property and Joint Escrow Instructions (Agreement) between the City and the Owner. The Owner has reviewed the Agreement and has agreed to the terms and the total purchase price of $3,915,000 for the Site.
The acquisition of the Site totaling $3,915,000 will be funded by General Fund capital reserve funds. In addition to payment of the purchase price, the Agreement stipulates that the City is responsible for covering certain closing costs. Furthermore, in accordance with the State Relocation Law (Government Code 7260), the City may be required to provide relocation benefits, as applicable.
Approval of a Purchase and Sale Agreement to Acquire the Kettle Motor Hotel Located at 1760 W. Lincoln Avenue July 23, 2024
IMPACT ON BUDGET:
The Housing and Community Development Department’s FY 2024/25 budget will be increased by $3,915,000 to support the acquisition of the Site.
Respectfully submitted,
Grace Ruiz-Stepter
Housing & Community Development Director
Attachments:
1. Resolution (includes Agreement for Sale of Property and Joint Escrow Instructions)