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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JUNE 17, 2025
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: PURCHASE OF 514-522 EAST VERMONT AVENUE FROM
ANAHEIM EAST VERMONT, LLC FOR OPERATIONS
ATTACHMENT (Y/N): YES ITEM # 16
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Agreement for Sale of Property and Joint Escrow Instructions (“Agreement”) between Anaheim East Vermont, LLC, a California Limited liability company (“Seller”) and the City of Anaheim (“City”) for the acquisition of real property located at 514-522 E. Vermont Avenue, in the amount of $22,000,000;
2. Authorize and direct the Public Works Director to execute the Agreement and all other related documents and to sign the Certificate of Acceptance of Interest in Real Property attached to the Grant Deed and authorize the City Clerk, in accordance with the aforementioned Agreement, to cause said Certificate of Acceptance of Interest in Real Property to be released to the authorized escrow agent for the recording of the Grant Deed in the Office of the County Recorder of Orange County and to take such actions as are necessary to implement and administer the Agreement;
3. Find that the above actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to Sections 15004(b)(2)(A) and 15061(b)(3) of the CEQA Guidelines; and
4. Increase the Public Works Department’s FY 2024/25 expenditure budget by $9,400,000 for the Sanitation Fund and $9,400,000 for the Wastewater Fund and Anaheim Public Utilities’ Electric Fund budget by $3,200,000.
DISCUSSION:
The City of Anaheim continues actively pursuing opportunities to acquire properties that offer strategic value in supporting the City’s growth and operations. On August 26, 2024, staff was notified that the property, commonly known as 514-522 E. Vermont Avenue, Anaheim, CA (the “Property”), located directly adjacent to the Anaheim Public Works Yard, would be listed for sale. The City expressed its interest in the Property through a Purchase of 514-522 East Vermont Avenue for Strategic Expansion of City Operations June 17, 2025
letter sent to Anaheim East Vermont, LLC (the “Seller”), care of Jones Lang LaSalle Americas (the “Seller’s agent”), dated October 22, 2024. On December 10, 2024, the City Council approved an Exclusive Negotiation Agreement (ENA) to establish a period during which the City and the Seller shall negotiate the terms of a purchase and sale agreement. Although the Seller ultimately declined to enter into an ENA, they executed a right-of-entry agreement with the City, and discussions continued between the City, the Seller, and the Seller’s agent.
On February 27, 2025, following preliminary site inspections and facility assessments by City- hired consultants, together with an appraisal conducted by Sharon A. Hennessey, MAI, a duly authorized appraiser, the City presented an offer to purchase the Property for fair market value of $22,000,000, which the Seller accepted.
The Property spans approximately 264,932 square feet (6.08 acres), includes four buildings totaling 87,531 square feet, and is currently used for industrial warehousing and storage. It has direct access from Vermont Avenue via Melrose Street to the west and has a private shared access road to the east. Acquiring this Property presents a unique opportunity to expand the City’s contiguous land holdings to 644,922 square feet (14.8 acres) when combined with the 379,990 square feet (8.72 acres) of the Anaheim Public Works Yard. This expansion would enable the consolidation of City services—Public Works, Utilities, Police, and Fire—into one centralized campus, providing much-needed space for fleet and equipment and allowing for more efficient and effective operations and service delivery.
The terms and conditions of the Agreement ensure that the City will be held harmless from any tenant relocation claims and stipulate that all leasehold interests will be terminated before or upon closing. Additionally, the Agreement grants the City the ability to conduct further inspections and assessments of the Property as needed.
Staff recommends that the Council find and determine that the subject actions are exempt from CEQA pursuant to Sections 15004(b)(2)(A) and 15061(b)(3) of the CEQA Guidelines. Section 15004(b)(2)(A) states that agencies “may enter into land acquisition agreements when the agency has conditioned the agency’s future use of the site on CEQA compliance.” If the Council approves the requested actions, future development of the property would be subject to future discretionary actions, which may include, but are not limited to, amendments to the General Plan and Zoning Map and project design and construction. These actions would be subject to CEQA.
In addition, since the mere acquisition of the property will not result in a physical change in the environment, it would also be exempt under Section 15061(b)(3), the “common sense exemption” that states that “CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.”
IMPACT ON BUDGET:
This action will increase the FY 2024/25 Public Works Department’s Sanitation Fund budget by $9,400,000, Wastewater Fund budget by $9,400,000, and Anaheim Public Utilities’ Electric Fund budget by $3,200,000.
Purchase of 514-522 East Vermont Avenue for Strategic Expansion of City Operations June 17, 2025
Respectfully submitted, Concurred by,
Rudy Emami Dukku Lee
Director of Public Works Public Utilities General Manager Attachments:
1. Agreement for Sale of Property
2. Aerial Photo Map