200 S. Anaheim Blvd.
Suite #433
Anaheim, CA 92805
Tel: (714) 765-5160
Fax: (714) 765-4454
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
COMMUNITY SERVICES DEPARTMENT
DATE: OCTOBER 8, 2024
FROM: COMMUNITY SERVICES DEPARTMENT
SUBJECT: APPROVAL OF A PURCHASE AND SALE AGREEMENT TO
ACQUIRE THE CROWN MOTEL PROPERTY LOCATED AT
1136 N. LA PALMA PARK WAY
ATTACHMENT (Y/N): YES ITEM # 16
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Resolution, approve the acquisition of the Crown Motel located at 1136 N. La Palma Park Way, in the amount of $3,288,000, approving an Agreement for Sale of Property and Joint Escrow Instructions by and between the City of Anaheim and Bhagu C. Patel and Damyanti B. Patel, husband and wife, substantially in the form submitted herewith, for the purchase of the Crown Motel and $200,000 for associated relocation costs; authorize the Director of Community Services, or her designee, to execute and administer the Agreement on behalf of the City of Anaheim; and increase the FY 2024/25 Community Services Department’s budget by $3,488,000, which includes estimated relocation costs paid to the seller.
DISCUSSION:
The City of Anaheim (City) continues to pursue opportunities to strategically acquire properties across the City. On June 10, 2024, the City extended an offer to purchase the Crown Motel property (Site) from its owners, Bhagu and Damyanti Patel, husband and wife, (Owner), via a Letter of Intent (LOI) based on an approved appraisal prepared by a professional Member Appraisal Institute (MAI) appraiser. The Site, located in Council District 3, is an existing 20-room motel situated immediately across the street from La Palma Park (attachment 2).
On June 27, 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 a total purchase price for the Site.
In addition to payment of the agreed purchase price of $3,000,000, the Agreement stipulates that the City is responsible to provide a Business Interruption Reimbursement (BIR) to the Owner totaling $288,000. The BIR reimburses for increased operating expenses and lost revenues resulting from interruptions over the course of an extended escrow period, which would be six (6) months for this Site. Furthermore, in accordance Approval of a Purchase and Sale Agreement to acquire the Crown Motel property located at 1136 N. La Palma Park Way October 8, 2024
with the State Relocation Law (Government Code Section 7260), the City may be required to provide relocation benefits, as applicable, estimated at $200,000.
The Site acquisition costs, totaling $3,488,000, includes anticipated BIR and relocation costs, and will be funded by Community Development Block Grant (CDBG) funds in the amount of $1,000,000 and Community Improvement Project funds for the balance.
Future development of the Site would convert it for future recreational purposes and provide better access and connection between the adjacent parking lot to the north and existing La Palma Park to the south.
Staff recommends approval to enter into the Agreement for this acquisition opportunity.
IMPACT ON BUDGET:
The Community Services Department’s FY 2024/25 budget will be increased by $3,488,000 to support the acquisition of the Site.
Respectfully submitted, Concurred by,
Sjany Larson-Cash Grace Ruiz-Stepter
Director of Community Services Director of Housing & Community Development
Attachments:
1. Resolution (includes Agreement for Sale of Property and Joint Escrow Instructions)
2. Location Map