ADMINISTRATIVE REPORT
MEETING DATE: March 25, 2026 AGENDA CATEGORY: Miscellaneous TO: Honorable Mayor and City Council
FROM: Christian Clegg, City Manager
DATE: March 19, 2026
SUBJECT: Appropriation for Deposit for Acquisition of 1430 and 1440 Truxtun Avenue
1 Appropriate and transfer $425,000 from the Capital Facility Reserve Fund to the Capital Outlay Fund for the payment for earnest deposit to begin the acquisition of the property. (Ward 2)
RECOMMENDATION:
Staff recommends Council approve the appropriation
BACKGROUND:
On March 11, 2026, City Council approved the lease and option to purchase the Real Property located at 1430 and 1440 Truxtun Avenue. The property consists of a 10 -story office building with approximately 127,504 square feet with a parking garage located on 2.3 acres of land on a prime corner in downtown Bakersfield in near proximity to City Hall.
Council approved the due diligence period for the purchase of the building to begin and the appropriation of funds to contract vendors to perform inspections. However, prior to the start of due diligence the City needs to formally exercise the option to purchase, open escrow, and submit an earnest money deposit of 3% of the sales price ($425,000) to the escrow company. In the event our inspections reveal items that cause the purchase to be cancelled, during the due diligence period, the deposit will be refunded to the City. In the event we purchase the building the deposit will be applied to the sales price.
City Council approved appropriation adjustments in the Capital Facility Reserve fund which have available unallocated fund balances. The City will use the same source of funds to pay for costs to properly examine the building during due diligence and provide for the deposit which will ultimately be use d to purchase the building.
Staff is seeking City Council approval to appropriate the additional $425,000 necessary for the earnest money deposit to enable staff to open escrow and enter the due diligence period for the acquisition of the building.
FISCAL IMPACT:
The earnest money deposit of $425,000 will be applied to the sales price at close of escrow for the acquisition of the building. In the event our inspections reveal items that cause the purchase to be cancelled, during the due diligence period, the deposit will be refunded to the City.
COUNCIL GOAL:
Safety and Resilience
Innovative and Efficient City Government
ATTACHMENTS:
None