200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
Tel: (714) 765-5176
Fax: (714) 765-5161
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: DECEMBER 10, 2024
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE CITY
OF ANAHEIM AND ANAHEIM EAST VERMONT, LLC
ATTACHMENT (Y/N): YES ITEM # 03
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve an Exclusive Negotiation Agreement (ENA), in substantial form, between the City of Anaheim and Anaheim East Vermont, LLC (Owner), a California limited liability company, which establishes a period during which the City and the Owner will negotiate the terms of a purchase and sale agreement of the property located at 514-522 E. Vermont Avenue; and authorize the Director of Public Works to execute the ENA on behalf of the City and to take the necessary or advisable actions to implement and administer the ENA, including any extensions and authorize de minimis changes that do not substantially change the terms and conditions of the ENA, as determined by the City Attorney’s Office.
DISCUSSION:
Anaheim East Vermont, LLC recently listed its property located at 514-522 E. Vermont Avenue, Anaheim, CA, 92805, directly east of the Anaheim Public Works Yard ("Property") for sale, and the Public Works Department is interested in acquiring it. The lot size of the Property is approximately 264,932 square feet (6.082 acres) and contains four (4) buildings currently used as an industrial warehouse and storage, totaling 87,531 square feet. The Property has direct access to Vermont Avenue from Melrose Street on the west and a private shared access road to the east.
The Public Works Department requests authorization from the City Council to approve the ENA, which establishes a period during which the City and the Owner shall negotiate the terms of a purchase and sale agreement. The City will commission an appraisal of the Property by a City-hired MAI appraiser to establish the market value and determine a purchase price of the Property. The ENA allows for necessary due diligence, including but not limited to a Phase I Environmental Assessment and, if required, a Phase II report.
Additional property inspections and surveys may also be conducted, including facility assessments of the four existing buildings, soil reports, and feasibility studies. The due diligence process will also involve reviewing the seller's disclosures, including existing leases and title reports.
At a future council meeting, the City Council shall approve the final terms and conditions of the property acquisitions through a Purchase and Sale Agreement.
Exclusive Negotiation Agreement between the City of Anaheim and Anaheim East Vermont, LLC December 10, 2024
IMPACT ON BUDGET:
Sufficient funds are available in the Public Works Department’s FY 2024/25 budget to conduct the necessary due diligence.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachments:
1. Exclusive Negotiation Agreement
2. Aerial Photo Map